**Commission      File Number: 000-52028**

**MISTRAL      VENTURES INC.**

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**TABLE      OF CONTENTS**

**PART      I: FINANCIAL INFORMATION**

**PART      II: OTHER INFORMATION**

**Note      Regarding Forward-Looking Statements**

**PART      I - FINANCIAL INFORMATION**

***Item      1. Financial Information***

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June 2006**

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

|                                                                      |   | **As                at 30 June 2006** |   | **As                at 31 December 2005 (Audited)** |
|---------------------------------------------------------------------------|--------|---------------------------------------|--------|-----------------------------------------------------|
|                                                                      |   | **$**                                 |   | **$**                                               |
|                                                                      |   |                                  |   |                                                |
| **Assets**                                                                |   |                                  |   |                                                |
|                                                                      |   |                                  |   |                                                |
| **Current**                                                               |   |                                  |   |                                                |
| Cash                and cash equivalents                                  |   | 2,370                                 |   | 8,677                                               |
| Prepaid                expenses                                           |   | -                                     |   | 250                                                 |
|                                                                      |   |                                  |   |                                                |
|                                                                      |   | 2,370                                 |   | 8,927                                               |
|                                                                      |   |                                  |   |                                                |
| **Liabilities**                                                           |   |                                  |   |                                                |
|                                                                      |   |                                  |   |                                                |
| **Current**                                                               |   |                                  |   |                                                |
| Accounts                payable and accrued liabilities (Note 4)          |   | 2,640                                 |   | 5,200                                               |
| Due                to related party (Note 5)                              |   | 7,500                                 |   | 500                                                 |
|                                                                      |   |                                  |   |                                                |
|                                                                      |   | 10,140                                |   | 5,700                                               |
|                                                                      |   |                                  |   |                                                |
| **Stockholder’s                deficiency**                         |   |                                  |   |                                                |
| **Capital                stock**                (Note 7)                  |   |                                  |   |                                                |
| Authorized                                                                |   |                                  |   |                                                |
| 75,000,000                common shares, par value $0.001                 |   |                                  |   |                                                |
| Issued                and outstanding                                     |   |                                  |   |                                                |
| 30                June 2006 - 1,800,000 common shares, par value $0.001   |   |                                  |   |                                                |
| 31                December 2005 - 900,000 common shares, par value $0.001 |   | 1,800                                 |   | 900                                                 |
| **Additional                paid-in capital**                             |   | 20,200                                |   | 8,100                                               |
| **Deficit,                accumulated during the development stage**      |   | (29,770)                              |   | (5,773)                                             |
|                                                                      |   |                                  |   |                                                |
|                                                                      |   | (7,770)                               |   | 3,227                                               |
|                                                                      |   |                                  |   |                                                |
|                                                                      |   | 2,370                                 |   | 8,927                                               |

**Nature      and Continuance of Operations **

**On      behalf of the Board:**

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

|                                                                                                      |   | **For                the period from the date of inception on 13 May 2005 to 30 June                2006** | **For                the three month period ended 30 June 2006** | **For                the six month period ended 30 June 2006** | **For                the period from the date of inception on 13 May 2005 to 30 June                2005** |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                                                                                                      |   |                                                                                                       |                                                             | **$**                                                          |                                                                                                       | **$** |   | **$** |   | **$** |
|                                                                                                      |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Expenses**                                                                                              |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| Acquisition                of a mineral property (Notes 3,                6                and 9)         |   | 9,000                                                                                                      |                                                             | -                                                              |                                                                                                       | 9,000 |   | - |
| Legal                and accounting                                                                       |   |                                                                                                       |                                                             | 14,805                                                         |                                                                                                       | 1,428 |   | 9,605 |   | - |
| Management                fees (Note 6)                                                                   |   |                                                                                                       |                                                             | 3,400                                                          |                                                                                                       | 1,700 |   | 3,400 |   | - |
| Office                and miscellaneous                                                                   |   |                                                                                                       |                                                             | 1,017                                                          |                                                                                                       | 144 |   | 999 |   | 18 |
| Rent                (Note 6)                                                                              |   |                                                                                                       |                                                             | 600                                                            |                                                                                                       | 300 |   | 600 |   | - |
| Transfer                agent fees                                                                        |   |                                                                                                       |                                                             | 948                                                            |                                                                                                       | 189 |   | 393 |   | - |
|                                                                                                      |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Net                loss for the period**                                                                |   |                                                                                                       |                                                             | (29,770)                                                       |                                                                                                       | (3,761) |   | (23,997) |   | (18) |
|                                                                                                      |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Basic                and diluted loss per common share**                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       | (0.002) |   | (0.01) |   | (0.001) |
|                                                                                                      |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Weighted                average number of common shares used in per share                calculations** |   |                                                                                                       |                                                             | 1,800,000                                                      |                                                                                                       | 1,606,077 |   | 900,000 |

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

|                                                                                                |   | **For                the period from the date of inception on 13 May 2005 to 30 June                2006** | **For                the three month period ended 30 June 2006** | **For                the six month period ended 30 June 2006** | **For                the period from the date of inception on 13 May 2005 to 30 June                2005** |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                                                                                                |   |                                                                                                       |                                                             | **$**                                                          |                                                                                                       | **$** |   | **$** |   | **$** |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Cash                flows from operating activities**                                             |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| Net                loss for the period                                                              |   |                                                                                                       |                                                             | (29,770)                                                       |                                                                                                       | (3,761) |   | (23,997) |   | (18) |
| Adjustments                to reconcile loss to net cash used by operating activities               |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| Acquisition                of a mineral property (Notes 3,                7                and 9)   |   |                                                                                                       | 9,000                                                            |                                                           | -                                                                                                          |   | 9,000 |   | - |
| Contributions                to capital - expenses (Notes 6,                7                and 9) |   |                                                                                                       |                                                             | 4,000                                                          |                                                                                                       | 2,000 |   | 4,000 |   | - |
| Changes                in operating assets and liabilities                                          |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| Decrease                in prepaid expenses                                                         |   |                                                                                                       |                                                             | -                                                              |                                                                                                       | 100 |   | 250 |   | - |
| Increase                (decrease) in accounts payable and accrued liabilities                      |   |                                                                                                       |                                                             | 2,640                                                          |                                                                                                       | (8,738) |   | (2,560) |   | - |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
|                                                                                                |   |                                                                                                       |                                                             | (14,130)                                                       |                                                                                                       | (10,399) |   | (13,307) |   | (18) |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Cash                flows from financing activities**                                             |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| Common                shares issued for cash                                                        |   |                                                                                                       |                                                             | 9,000                                                          |                                                                                                       | - |   | - |   | - |
| Advances                from related party (Notes 5                and 6)                           |   |                                                                                                       |                                                             | 7,500                                                          |                                                                                                       | 7,000 |   | 7,000 |   | 500 |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
|                                                                                                |   |                                                                                                       |                                                             | 16,500                                                         |                                                                                                       | 7,000 |   | 7,000 |   | 500 |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Increase                (decrease) in cash and cash equivalents**                                 |   |                                                                                                       |                                                             | 2,370                                                          |                                                                                                       | (3,399) |   | (6,307) |   | 482 |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Cash                and cash equivalents, beginning of period**                                   |   |                                                                                                       |                                                             | -                                                              |                                                                                                       | 5,769 |   | 8,677 |   | - |
|                                                                                                |   |                                                                                                       |                                                             |                                                           |                                                                                                       |   |   |   |   |   |
| **Cash                and cash equivalents, end of period**                                         |   |                                                                                                       |                                                             | 2,370                                                          |                                                                                                       | 2,370 |   | 2,370 |   | 482 |

**Supplemental      Disclosures with Respect to Cash Flows (Note **
**9**
**)**

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

|                                                                                                                                          | **Number                of common shares issued** | **Capital                stock** | **Additional                paid-in capital** | **Deficit,                accumulated during the development stage** | **Stockholder’s                deficiency** |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|----------------------------------|-----------------------------------------------|----------------------------------------------------------------------|---------------------------------------------------|
|                                                                                                                                          |                                              |                             |                                          | **$**                                                                |                                              | **$** |   | **$** |   | **$** |
|                                                                                                                                          |                                              |                             |                                          |                                                                 |                                              |   |   |   |   |   |
| **Balance                at 13 May 2005 (inception)**                                                                                         |                                              |                             |                                          |                                                                 |                                              |   |   |   |   |   |
| Common                shares issued for cash ($0.001 per share)                                                                               |                                              | 900,000                          |                                          | 900                                                                  |                                              | 8,100 |   | - |   | 9,000 |
| Net                loss for the period                                                                                                        |                                              | -                                |                                          | -                                                                    |                                              | - |   | (5,773) |   | (5,773) |
|                                                                                                                                          |                                              |                             |                                          |                                                                 |                                              |   |   |   |   |   |
| **Balance                at 31 December 2005**                                                                                                |                                              | 900,000                          |                                          | 900                                                                  |                                              | 8,100 |   | (5,773) |   | 3,227 |
| Common                shares issued for a mineral property ($0.001 per share) (Notes                3,                6                and 9) |                                              | 900,000                          |                                          | 900                                                                  |                                              | 8,100 |   | - |   | 9,000 |
| Contributions                to capital by related party - expenses (Notes 6,                7                and 9)                          |                                              | -                                |                                          | -                                                                    |                                              | 4,000 |   | - |   | 4,000 |
| Net                loss for the period                                                                                                        |                                              | -                                |                                          | -                                                                    |                                              | - |   | (23,997) |   | (23,997) |
|                                                                                                                                          |                                              |                             |                                          |                                                                 |                                              |   |   |   |   |   |
| **Balance                at 30 June 2006**                                                                                                    |                                              | 1,800,000                        |                                          | 1,800                                                                |                                              | 20,200 |   | (29,770) |   | (7,770) |

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                **

**1.**
**      Nature and Continuance of Operations**

*Accounting      and Reporting by Development Stage Enterprises*

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                             **

**2.      Significant Accounting Policies**

**Basis      of presentation**

**Cash      and cash equivalents**

**Mineral      property costs**

**Reclamation      costs**

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                         **

**Financial      instruments**

**Derivative      financial instruments**

**Environmental      expenditures**

**Income      taxes**

*Accounting      for Income Taxes*

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

**Basic      and diluted net loss per share**

*Earnings      per Share*

**Comprehensive      loss**

*Reporting      Comprehensive Income*

**Segments      of an enterprise and related information**

*Disclosures      about Segments of an Enterprise and Related Information*
*Financial      Reporting for Segments of a Business Enterprise*

**Start-up      expenses**

*Reporting      the Costs of Start-up Activities*

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                            **

**Foreign      currency translation**

*Foreign      Currency Translation*

**Use      of estimates**

**Recent      accounting pronouncements**

*Accounting      for Servicing of Financial Assets*
*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*

*Accounting      for Certain Hybrid Financial Instruments*
*Accounting      for Derivative Instruments and Hedging Activities*

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                         **

*Accounting      Changes and Error Corrections - A Replacement of APB Opinion No. 20 and SFAS      No.      3*

*Share      Based Payment*

*Exchanges      of Nonmonetary Assets - An Amendment of APB Opinion No. 29*
*Accounting      for Nonmonetary Transactions*

*Accounting      for Stock-Based Compensation*
*Accounting      for Stock Issued to Employees*

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

| **4.  ** | **Accounts              Payable and Accrued Liabilities**  |
|--------------------|-----------------------------------------------------------------|

| **5.  ** | **Due              to Related Party** |
|--------------------|---------------------------------------|

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

| **6.  ** | **Related              Party Transactions** |
|--------------------|---------------------------------------------|

| **7.  ** | **Capital              Stock** |
|--------------------|--------------------------------|

**Authorized      **

**Issued      and outstanding**

| i.   | On              9 February 2006, the Company issued 900,000 common shares valued at              $0.01              per share for the acquisition of a mineral property (Notes 3,              6              and 9). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During              the six month period ended 30 June 2006, an officer, director and              shareholder of the Company made contributions to capital by the payment              of              the Company’s expenses (Notes 6              and 9). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                          **

| **8.  ** | **Income              Taxes**** ** |
|--------------------|-----------------------------------------|

|                                                                |   | **For                the six month period ended 30 June 2006** |   | **For                the period from the date of inception on 13 May 2005 to 30 June 2005** |
|---------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|
|                                                                |   | **$**                                                          |   | **$**                                                                                       |
|                                                                |   |                                                           |   |                                                                                        |
| Deferred                tax asset attributable to:                  |   |                                                           |   |                                                                                        |
| Current                operations                                   |   | 8,159                                                          |   | 6                                                                                           |
| Contributions                to capital by related party - expenses |   | (1,360)                                                        |   |                                                                                        |
| Less:                Change in valuation allowance                  |   | (6,799)                                                        |   | (6)                                                                                         |
|                                                                |   |                                                           |   |                                                                                        |
| Net                refundable amount                                |   | -                                                              |   | -                                                                                           |

|                                                       |   |   |   | **As                at 30 June 2006** |   | **As                at 31 December 2005 (Audited)** |
|------------------------------------------------------------|--------|--------|--------|---------------------------------------|--------|-----------------------------------------------------|
|                                                       |   |   |   | **$**                                 |   | **$**                                               |
|                                                       |   |   |   |                                  |   |                                                |
| Net                income tax operating loss carry forward |   |   |   | (25,770)                              |   | (5,773)                                             |
|                                                       |   |   |   |                                  |   |                                                |
| Statutory                federal income tax rate           |   |   |   | 34%                                   |   | 34%                                                 |
| Effective                income tax rate                   |   |   |   | 0%                                    |   | 0%                                                  |
|                                                       |   |   |   |                                  |   |                                                |
| Deferred                tax assets                         |   |   |   | 8,762                                 |   | 1,963                                               |
| Less:                Valuation allowance                   |   |   |   | (8,762)                               |   | (1,963)                                             |
|                                                       |   |   |   |                                  |   |                                                |
| Net                deferred tax asset                      |   |   |   | -                                     |   | -                                                   |

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**Mistral      Ventures, Inc.**

**(A      Development Stage Company)**

**30      June      2006                                                                                                                                                                                                                                                                                                        **

| **9.  ** | **Supplemental              Disclosures with Respect to Cash              Flows** |
|--------------------|-----------------------------------------------------------------------------------|

|                                                      |   | **For                the period from the date of inception on 13 May 2005 to 30 June                2006** |   | **For                the three month period ended 31 March 2006** |   | **For                the six month period ended 30 June 2006** |   | **For                the period from the date of inception on 13 May 2005 to 30 June                2005** |
|-----------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|
|                                                      |   | **$**                                                                                                      |   | **$**                                                             |   | **$**                                                          |   | **$**                                                                                                      |
|                                                      |   |                                                                                                       |   |                                                              |   |                                                           |   |                                                                                                       |
| Cash                paid during the year for interest     |   | -                                                                                                          |   | -                                                                 |   | -                                                              |   | -                                                                                                          |
| Cash                paid during the year for income taxes |   | -                                                                                                          |   | -                                                                 |   | -                                                              |   | -                                                                                                          |

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**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION.**

***General      Overview***

***Plan      of Operation/Milestones for next 12 months***

**PHASE      I:**

**PHASE      II:**

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***Liquidity      and Capital Resources***

***Results      of Operations***

**0001329944.**

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***Off      Balance Sheet Arrangements***

**ITEM      3. CONTROLS AND PROCEDURES**

***Critical      Accounting Policies***

**PART      II - OTHER INFORMATION**

**ITEM      1A. RISK FACTORS**

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**ITEM      6. EXHIBITS AND REPORTS ON FORM 8-K**

**Exhibit      No.**
** **
**Description**

**SIGNATURES**

**Mistral      Ventures, Inc.,**