**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





**Form
        10-QSB/A**





(Mark
      One)





**[X]
      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT**


**OF
      1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2006**





**[_]
      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT**





**FOR
      THE TRANSITION PERIOD FROM __________ TO __________**


*COMMISSION
      FILE NUMBER ________________________________*






**NEW
                WORLD ENTERTAINMENT
                CORP.**(Name
                of small business issuer in its charter)








NEVADA
            98-0448154(State
                or other jurisdiction
                of  incorporation or
                organization)
            (I.R.S.
                Employer Identification
                No.)




7251
      West
      Lake Mead Boulevard, Suite 300


Las
      Vegas, Nevada 89128


(Address
      of principal executive offices)





Issuer's
      telephone Number: (888) 628-1949










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





**APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**


**PROCEEDINGS
      DURING THE PRECEDING FIVE YEARS**





Check
      whether the registrant filed all documents and reports required to be filed
      by
      Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
      under a plan confirmed by a court:  Yes [ ]
      No [ ]





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





**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practicable date: As of May 12, 2006, the issuer had 71,400,000
      outstanding shares of Common Stock.





Transitional
      Small Business Disclosure Format (check one): Yes [_] No [X]

















**PART
      I - FINANCIAL INFORMATION**





**Item
      1. Financial Statements.**





**NEW
      WORLD ENTERTAINMENT CORP.**


(FORMERLY
      MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD CORP.)





**FINANCIAL
      STATEMENTS**





**FOR
      THE SIX MONTHS ENDED JUNE 30, 2006 and 2005**





**(UNAUDITED)**


























2








**NEW
      WORLD ENTERTAINMENT CORP.** (FORMERLY
        MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD
        CORP.)


**BALANCE
      SHEET**


(Stated
      in US Dollars)








**June
                    30**
                
                **December
                    31****2006**
                
                **2005**(Un-audited)**ASSETS****CURRENT
                    ASSETS**Cash
                
                $
                94
                
                $
                48,381Interest
                    receivable and prepaid expenses
                
                
                225
                
                
                331Investments
                
                
                3,250,000
                
                
                03,250,319
                
                
                48,712**FIXED
                    ASSETS**
                
                
                0
                
                
                0**TOTAL
                    ASSETS**
                
                $
                3,250,319
                
                $
                48,712**LIABILITIES****CURRENT
                    LIABILITIES**Accounts
                    payable and accrued liabilities
                
                $
                2,091
                
                $
                22,318**LONG-TERM
                    LIABILITIES**Promissory
                    notes
                
                
                0
                
                
                0Loans
                
                
                3,250,000
                
                
                0**TOTAL
                    LIABILITIES**
                
                
                3,252,091
                
                
                22,318**STOCKHOLDERS'
                    EQUITY (DEFICIENCY)**Common
                    Stock: $0.001 par value500,000,000
                    shares authorized: 82,233,333shares
                    issued and outstanding ( 71,400,000 in 2005)
                
                
                82,233
                
                
                71,400Additional
                    paid-in capital
                
                
                5,100
                
                
                5,100(Deficit)
                
                
                (89,105
                )
                
                (50,106
                )(1,772
                )
                
                26,394**TOTAL
                    STOCKHOLDERS' EQUITY & LIABILITIES**
                
                $
                3,250,319
                
                $
                48,712










The
        accompanying notes are an integral part
        of
        these financial statements


3


**NEW
      WORLD ENTERTAINMENT CORP.**


(FORMERLY
      MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD CORP.)


**STATEMENT
      OF OPERATIONS**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005**


(Stated
      in US Dollars)




**For
                the Six Months Ended June 30**
              
              **For
                the
                Three Months Ended June 30**
              
              **From
                  Inception**
                **(January
                  26, 2005) to****2006**
              
              **2005**
              
              **2006**
              
              **2005**
              
              **June
                  30, 2006**(Un-audited)
              
              (Un-audited)
              
              (Un-audited)
              
              (Un-audited)**REVENUE**
              
              $
              131
              
              $
              -
              
              $
              131
              
              $
              -
              
              $
              131**EXPENSES**Filing
                  fees
              
              
              1,600
              
              
              1,891
              
              
              0
              
              
              0
              
              
              2,306Shares
                  issued in lieu of payment
                for
                  interests on promissory notes
              
              
              10,833
              
              
              
              
              
              10,833
              
              
              
              
              
              10,833Meals
                  and entertainment
              
              
              5,236
              
              
              0
              
              
              0
              
              
              0
              
              
              5,236Mineral
                  property option payments
              
              
              0
              
              
              0
              
              
              0
              
              
              0
              
              
              5,000Mineral
                  property expenditures
              
              
              9,240
              
              
              0
              
              
              0
              
              
              0
              
              
              29,365Office
                  and sundry, net of interest income
              
              
              1,448
              
              
              222
              
              
              0
              
              
              0
              
              
              1,549Professional
                  fees
              
              
              10,025
              
              
              20,500
              
              
              0
              
              
              15,000
              
              
              33,025Transfer
                  agent
              
              
              748
              
              
              1,000
              
              
              86
              
              
              0
              
              
              1,922Total
                  expenses
              
              
              39,130
              
              
              23,613
              
              
              10,919
              
              
              15,000
              
              
              89,236Net
                  Loss for the period
              
              $
              (38,999
              )
              $
              (23,613
              )
              $
              (10,788
              )
              $
              (15,000
              )
              $
              (89,105
              )Basic
                  and diluted (loss) per common share
              
              $
              (0.000
              )
              $
              (0.000
              )
              $
              (0.000
              )
              $
              (0.000
              )Weighted
                  average number
                of
                  common shares outstanding
              
              
              80,427,777
              
              
              64,766,666
              
              
              71,400,000
              
              
              64,466,666














See
      notes
      to the financial statements.


4


**NEW
      WORLD ENTERTAINMENT CORP.**


(FORMERLY
      MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD CORP.)


**STATEMENT
      OF STOCKHOLDERS' EQUITY**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005**


(Stated
      in US Dollars)






Common
                  Stock
              
              Additional
              
              Accumulated
              
              TotalShares
              
              Amount
              
              Paid-in
              
              Deficit
              
              EquityCapital
              
              
              
              (Deficit)$
              
              
              $
              
              
              $Opening
                  balance, January 26, 2005
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -Common
                  shares issued for cash at $0.00005 per share, February 9,
                  2005
              
              
              30,000,000
              
              
              30,000
              
              
              (28,500
              )
              
              -
              
              $
              1,500Common
                  shares issued for cash at $0.0005 per share, Februay 17,
                  2005
              
              
              30,000,000
              
              
              30,000
              
              
              (15,000
              )
              
              -
              
              
              15,000Common
                  shares issued for cash at $0.005 per share, March 7, 2005
              
              
              11,000,000
              
              
              11,000
              
              
              44,000
              
              
              -
              
              
              55,000Common
                  shares issued for cash at $0.0125 per share, April 8, 2005
              
              
              400,000
              
              
              400
              
              
              4,600
              
              
              -
              
              
              5,000Net
                  (Loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (50,106
              )
              
              (50,106
              )Balance,
                  December 31, 2005
              
              
              71,400,000
              
              
              71,400
              
              
              5,100
              
              
              (50,106
              )
              
              26,394Net
                  (Loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (10,788
              )
              
              (10,788
              )Balance,
                  March 31, 2006
              
              
              71,400,000
              
              $
              71,400
              
              $
              5,100
              
              $
              (60,894
              )
              $
              15,606Shares
                  issued in lieu of payment for interests on promissory notes, May
                  2006
              
              
              10,833,333
              
              $
              10,833
              
              
              -
              
              
              -
              
              $
              10,833Net
                  (Loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (10,919
              )
              
              (10,919
              )Balance,
                  June 30 , 2006
              
              
              82,233,333
              
              $
              82,233
              
              $
              5,100
              
              $
              (71,813
              )
              $
              15,520














See
      notes
      to the financial statements.






5


**NEW
      WORLD ENTERTAINMENT CORP.**


(FORMERLY
      MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD CORP.)


**STATEMENT
      OF CASH FLOWS**


**FOR
      THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005**


(Stated
      in US Dollars)






**For
                  the Six Months Ended June 30**
              
              
              **From
                  Inception**
                **(January
                  26, 2005) to****2006**
              
              
              **2005**
              
              
              **June
                  30, 2006**(Un-audited)
              
              
              (Un-audited)**CASH
                  (USED IN) OPERATING ACTIVITIES**Net
                  loss for the period
              
              $
              (38,999
              )
              $
              (23,613
              )
              $
              (89,105
              )Changes
                  in non-cash operating working capital items:Shares
                  issued in lieu of payment for interests on promissory notes
              
              $
              10,833
              
              $
              -
              
              $
              10,833Interest
                  receivable and prepaid expenses
              
              
              106
              
              
              0
              
              
              (225
              )Account
                  payable and accrued liabilities
              
              
              (20,227
              )
              
              0
              
              
              2,091**Net
                  cash (used in) operating activities**
              
              
              (48,287
              )
              
              (23,613
              )
              
              (76,406
              )**CASH
                  PROVIDED BY FINANCING ACTIVITIES**promissory
                  notes
              
              $
              3,250,000
              
              $
              -
              
              $
              3,250,000Loans
              
              $
              (3,250,000
              )
              
              
              
              $
              (3,250,000
              )Shares
                  issued
              
              
              0
              
              
              71,400
              
              
              71,400Paid-in
                  capital
              
              
              0
              
              
              5,100
              
              
              5,100**Net
                  cash provided by financing activities**
              
              
              0
              
              
              76,500
              
              
              76,500**CASH
                  AT BEGINNING OF PERIOD**
              
              
              48,381
              
              
              0
              
              
              0**CASH
                  AT END OF PERIOD**
              
              **$**
              **94**
              
              **$**
              **52,887**
              
              **$**
              **94**Non-Cash
                  ActivitiesShares
                  issued in lieu of payment for interests on promissory notes
              
              $
              10,833
              
              $
              -Stock
                  issued for accounts payable
              
              $
              -
              
              $
              -Stock
                  issued for notes payable and interest
              
              $
              -
              
              $
              -Stock
                  issued for convertible debentures and interest
              
              $
              -
              
              $
              -Convertible
                  debentures issued for services
              
              $
              -
              
              $
              -Warrants
                  issued
              
              $
              -
              
              $
              -Stock
                  issued for penalty on default of convertible debentures
              
              $
              -
              
              $
              -Note
                  payable issued
              
              $
              3,250,000
              
              $
              -Forgiveness
                  of note payable and accrued interest
              
              $
              -
              
              $
              -

















See
      notes
      to the financial statements.





6


**NEW
      WORLD ENTERTAINMENT CORP.**


(FORMERLY
      MORNINGSTAR INDUSTRIAL HOLDINGS CORP; FORMERLY KATIE GOLD CORP.)


**NOTES
      TO THE FINANCIAL STATEMENTS**


**(Stated
      in US Dollars)**


**JUNE
      30, 2006**








1.
      NATURE
      OF OPERATIONS





a)
            Organization





The
      Company was incorporated under the laws of the State of Nevada on January 26,
      2005 as Katie Gold Corp. and it was primarily engaged in the acquisition and
      exploration of mining properties until April 2006. The Company’s fiscal year end
      is December 31.





On
      March
      21, 2006, a Certificate of Amendment was filed with the Secretary of State
      in
      Nevada to change the name of the Company from Katie Gold Corp. to Morningstar
      Industrial Holdings Corp. At this time, the Company was still engaged in the
      acquisition and exploration of mining properties.





On
      April
      26, 2006, the Company filed Articles of Merger with the Secretary of State
      in
      Nevada to merge with New World Entertainment Corp., a private company
      incorporated in Nevada. As a result of the merger, the Company changed its
      business and its name from Morningstar Industrial Holdings Corp. to New World
      Entertainment Corp.





b)
      Change
      of Business





On
      April
      26, 2006, the Company filed Articles of Merger with the Secretary of State
      in
      Nevada to change its name from Morningstar Industrial Holdings Corp. to New
      World Entertainment Corp. and underwent a change in management and direction
      and
      is currently involved in the acquisition and licensing of online gaming
      technologies.





On
      May
      12, 2006 the Company entered into a share exchange agreement with Liverpoole
      Inc., a privately-owned corporation organized under the laws of Antigua, for
      the
      acquisition of all of the issued and outstanding shares of Liverpoole in
      exchange for 25,000,000 shares of the Company, upon completion of the agreement.
      In connection therewith, in order to secure the right to enter into such
      agreement with Liverpoole, the Company entered into an agreement with World
      Mobile Network Corp., a publicly-held corporation, pursuant to which, upon
      the
      completion of the agreement, World Mobile Network Corp. agreed to assign its
      exclusive right to acquire Liverpoole to the Company in exchange for 20,000,000
      shares of the Company. As of June 30, 2006, these agreements have not been
      finalized.





c)
            Going
                Concern





The
      accompanying financial statements have been prepared assuming the Company will
      continue as a going concern. The Company’s financial statements are prepared
      using generally accepted accounting principles applicable to a going concern
      which contemplates the realization of assets and liquidation of liabilities
      in
      the normal course of business.





As
      shown
      in the accompanying financial statements, the Company has incurred a net loss
      of
      $89,105 for the period from January 26, 2005 (inception) to June 30, 2006 and
      has revenues for $131. The future of the Company is dependent upon its ability
      to obtain financing and upon future profitable operations from the development
      of acquisitions. Management has plans to seek additional capital through a
      private placement and public offering of its common stock. The financial
      statements do not include any adjustments relating to the recoverability and
      classification of recorded assets, or the amounts of and classification of
      liabilities that might be necessary in the event the Company cannot continue
      in
      existence. The accompanying financial statements do not include any adjustments
      that might be necessary if the Company is unable to continue as a going
      concern.






7





d)
            Mineral
                Property Interests





The
      Company entered into an option agreement on February 22, 2005 to acquire a
      100%
      interest in six mineral claims covering 150 hectares located in the Nicola
      Mining District in British Columbia, Canada. The option agreement allowed for
      additional staking of claim property within a 2 kilometer radius of the initial
      six claims. In June 2005, the Company undertook additional staking and upon
      registration of the initial claims and the new claims were converted into two
      claim blocks totaling 459 hectares.





In
      order
      to earn its interests, the Company made cash payments totaling $5,000 on signing
      and must incur exploration expenditures totaling $200,000.





As
      the
      business of the Company has changed, current management of the Company has
      elected to not incur the additional exploration expenditures due under the
      option agreement. Unless these payments are made, the Company will lose its
      interests under the option agreement when the final payment comes due on
      February 22, 2007. The Company does not intend to complete this payment at
      the
      present time.





e)
      Share
      Exchange Agreement with Liverpoole Inc.





On
      May
      12, 2006 the Company entered into a share exchange agreement with Liverpoole
      Inc., a privately-owned corporation organized under the laws of Antigua, for
      the
      acquisition of all of the issued and outstanding shares of Liverpoole in
      exchange for 25,000,000 shares of the Company, upon completion of the agreement.
      In connection therewith, in order to secure the right to enter into such
      agreement with Liverpoole, the Company entered into an agreement with World
      Mobile Network Corp., a publicly-held corporation, pursuant to which, upon
      the
      completion of the agreement, World Mobile Network Corp. agreed to assign its
      exclusive right to acquire Liverpoole to the Company


in
      exchange for 20,000,000 shares of the Company. As of June 30, 2006, these
      agreements have not been finalized.





2.
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





a.
      Accounting Method





The
      Company’s financial statements are prepared using the accrual method of
      accounting. The Company has elected a December 31 year-end.





b.
            Revenue
                Recognition





The
      Company recognizes revenue when persuasive evidence of an arrangement exists,
      goods delivered, the contract price is fixed or determinable, and collectibility
      is reasonably assured.





c.
      Income
      Taxes





The
      Company prepares its tax returns on the accrual basis. The Company has elected
      to file its taxes as a Limited Liability Company, whereby its profits and losses
      are passed through to its members. Accordingly, the Company does not pay or
      accrue income taxes. Also, the Company does not record an asset for the value
      of
      its net operating loss carry forwards.





d.
      Use of
      Estimates





The
      preparation of the financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities and disclosure of
      contingent assets and liabilities at the date of the financial statements and
      the reported amounts


of
      revenues and expenses during the reporting period. Actual results could differ
      from those estimates.





e.
            Interest
                Receivable and Prepaid Expenses






8





Interest
      receivable and prepaid expenses consists of advances for future services and
      include the amount of $225 as of June 30, 2006.





f.
            Basic
                and Diluted (Loss) Per Share





In
      accordance with SFAS No. 128-“Earnings Per Share”, the basic loss per common
      share is computed by dividing net loss available to common stockholders by
      the
      weighted average number of common shares outstanding. Diluted loss per common
      share is computed similar to basic loss per common share except that the
      denominator is increased to include the number of additional common shares
      that
      would have been outstanding if the potential common shares had been issued
      and
      if the additional common shares were dilutive. At June 30, 2006, the Company
      has
      no stock equivalents that were anti-dilutive and excluded in the earnings per
      share computation.





g.
      Cash





For
      purposes of the statement of cash flows, the company considers all funds held
      in
      its bank accounts and funds held in trust by third parties as Cash.





h.
      Liabilities





The
      Company’s current liabilities account is composed of accounts payable and
      accrued liabilities and total $15,672 as at June 30, 2006.





Loan
      Agreement





On
      May 3,
      2006, the Company entered into a $3,250,000 secured Loan Agreement (the “Loan
      Agreement”) with 555 Holdings LLC, a Nevada limited liability company, and
      Global Developments Inc., a Nevada company (collectively the “Lenders”),
      pursuant to which Loan Agreement the Company issued $3,250,000 in aggregate
      principal amount of promissory notes (collectively the “Notes”) to the Lenders.
      In lieu of the interest on the Notes, the Company agreed to simultaneously
      with
      the issuance of the Notes to issue three and one third shares of common stock,
      $0.001 par value per share (the “Common Stock”), of restricted stock of the
      Company for every dollar loaned by the Lenders, amounting to 10,833,333 shares
      of Common Stock (the “Shares”). The issuance of the Note was exempt from
      registration requirements of the Securities Act of 1933 (the “Securities Act”)
      pursuant to Section 4(2) of such Securities Act and/or Regulation D promulgated
      thereunder based upon the representations of the Investor that it is an
      "accredited investor" (as defined under Rule 501 of Regulation D) and that
      it
      was purchasing such securities without a present view toward a distribution
      of
      the securities. In addition, there was no general advertisement conducted in
      connection with the sale of the securities.





On
      May
      30, 2006 the Company entered into an un-secured Loan Agreement with Liverpoole
      Inc., a privately-owned corporation organized under the laws of Antigua for
      $3,250,000 Such Loan Agreement is for a 1 (one) year term commencing on May
      30,
      2006 with an annual interest of 7 (seven) percent.





i.
      Un-audited Financial Statements





The
      accompanying financial statements have been prepared by the Company without
      audit. In the opinion of management, all adjustments (which include only normal
      recurring adjustments) necessary to present fairly the financial position,
      results of operations and cash flows at June 30, 2006 and for all periods
      presented have been made.





Certain
      information and footnote disclosures normally included in financial statements
      prepared in accordance with accounting principles generally accepted in the
      United States of America have been condensed or omitted. It is suggested that
      these condensed financial statements be read in conjunction with the financial
      statements and notes thereto included in the Company's December 31, 2005 audited
      financial statements. The results of operations for the periods ended June
      30,
      2006 and 2005 are not necessarily indicative of the operating results for the
      full years.






9








3.
      SHARE
      CAPITAL




a)
      Authorized:





500,000,000
      common shares with a par value of $0.001





b)
      Issued:





As
      of
      June 30, 2006 the number of issued outstanding common shares was
      82,233,333.





The
      Company has no stock option plan, warrants or other dilutive
      securities.





On
      March
      10, 2006 shareholders of the company adopted a resolution that the Company’s
      common shares be forward split on a 20 shares to 1 share basis. Share disclosure
      has been retroactively restated accordingly.








**Item
      2. Management's Discussion and Analysis or Plan of Operation**





**Forward-Looking
      Statements**





You
      should read the following discussion and analysis in conjunction with the
      Financial Statements and related Notes contained elsewhere in this Form 10-QSB
      ("Report"). The information in this Report is not a complete description of
      our
      business or the risks associated with an investment in our common stock. We
      urge
      you to carefully review and consider the various disclosures made by us in
      this
      Report and in our other reports filed with the SEC, including our Annual Report
      on Form 10-KSB for the year ended December 31, 2005.





The
      section entitled "Risk Factors" set forth in our Annual Report on Form 10-K
      for
      the year ended December 31, 2005 and similar types of discussions in other
      SEC
      filings discuss some of the important risks that may affect our business,
      results of operations and financial condition. Some of those risks are as
      follows:





*Our
      business depends on our ability to obtain additional financing, or our business
      will fail.





*Our
      stock price can be extremely volatile.





You
      should carefully consider those risks, in addition to the other information
      in
      this Report and in our other filings with the SEC, before deciding to invest
      in
      our Company or to maintain or decrease your investment.





This
      Report may contain forward-looking statements within the meaning of Section
      17A
      of the Securities Exchange Act of 1933, as amended, and Section 21E of the
      Securities Exchange Act, as amended. Examples of forward-looking statements
      include, but are not limited to: (a) projections of our revenues, capital
      expenditures, growth, prospects, dividends, capital structure and other
      financial matters; (b) statements of our plans and objectives; (c) statements
      of
      our future economic performance; (d) statements of assumptions underlying other
      statements and statements about us and our business relating to the future;
      and
      (e) any statements using the words "believes," "budget," "target," "goal,"
      anticipate," expect," "plan," "outlook," "objective," may," project," intend,"
      "estimate," or similar expressions. These statements are only predictions.
      These
      statements are not guarantees of future performance and are subject to certain
      risks, uncertainties and assumptions that are difficult to predict.





We
      believe it is important to communicate our expectations. However, there may
      be
      events in the future that we are not able to accurately predict or over which
      we
      have no control. Our actual results and the timing of certain events could
      differ materially from those anticipated in these forward-looking statements
      as
      a result of certain factors.









10


**Background**





We
      have
      commenced operations as an exploration stage company. We are engaged in the
      acquisition, and exploration of mineral properties with a view to exploiting
      any
      mineral deposits we discover that demonstrate economic feasibility.  As of
      December 31, 2005, we have entered into a mineral property option agreement
      whereby we may acquire a 100% interest in a total of six mineral claims,
      covering 150 hectares near Missezula Lake and located in the Nicola Mining
      District, Province of British Columbia, Canada, know as the Conglin Property.
      Subsequent to entering into the option we staked additional property surrounding
      the original claims and they were registered, with the original claims, as
      two
      claims totaling 459 hectares. There is no assurance that a commercially viable
      mineral deposit exists on the property.  Further exploration will be
      required before a final evaluation as to the economic and legal feasibility
      is
      determined.  We do not have any current plans to acquire interests in
      additional mineral properties, though we may consider such acquisitions in
      the
      future.





**Use
      of Estimates**





Management's
      Discussion and Analysis of Financial Condition and Results of Operations are
      based upon our financial statements, which have been prepared in accordance
      with
      generally accepted accounting principles in the United States. When preparing
      our financial statements, we make estimates and judgments that affect the
      reported amounts on our balance sheets and income statements, and our related
      disclosure about contingent assets and liabilities. We continually evaluate
      our
      estimates, including those related to revenue, allowance for doubtful accounts,
      reserves for income taxes, and litigation. We base our estimates on historical
      experience and on various other assumptions, which we believe to be reasonable
      in order to form the basis for making judgments about the carrying values of
      assets and liabilities that are not readily ascertained from other sources.
      Actual results may deviate from these estimates if alternative assumptions
      or
      conditions are used.





**SIX
      MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED June 30,
      2005**





We
      have
      not earned any significant revenues from the date of our incorporation on
      January 26, 2005 to June 30, 2006.  We do not anticipate earning revenues
      unless we enter into commercial production on the Conglin Property, which is
      doubtful, or undergo reorganization by the process of acquisition of a new
      business line.  We have not commenced the exploration stage of our business
      and can provide no assurance that we will discover economic mineralization
      on
      the property, or if such minerals are discovered, that we will enter into
      commercial production.





Revenues
      for the six months ended June 30, 2006 were $131 compared to $0 for the six
      months ended June 30, 2005, a nominal increase of $131 or 100%. We have not
      earned any significant revenues from our incorporation on January 26, 2005
      to
      June 30, 2006.





Our
      principal expenses during the six months ended June 30, 2006 and 2005 were
      mineral property expenditures and professional fees. Our professional fees
      included legal, accounting and public relations. The increased level of expenses
      being incurred by the Company arises out of its efforts to commercially exploit
      its mineral properties. Some of the specifics include increased effort by the
      Company in its attempts of exploiting any mineral deposits that it discovers
      that demonstrate economic feasibility.





As
      we did
      not earn any material revenues for six months ended June 30, 2006, our cost
      of
      revenues for six months ended June 30, 2006 was $0.





We
      did
      not incur any research and development expenses for the six months ended June
      30, 2006.





Mineral
      property expenditures for the six months ended June 30, 2006 were $9,240
      compared to $0 for the six months ended June 30, 2005, an increase of $9,240
      or
      100%. The net increase was due primarily to increases in our efforts to
      commercially exploit our mineral property options.





Selling,
      general and administrative expenses for the six months ended June 30, 2006
      were
      $29,890 compared to $23,613 for the six months ended June 30, 2005, an increase
      of $6,277 or 230.05%. The net increase was due primarily to increases in our
      filing, transfer agent, meal and entertainment, legal and accounting, consulting
      costs and overhead.





11


Total
      expenses for the six months ended June 30, 2006 was $39,130as compared to
      $23,613 for the six months ended June 30, 2005, representing an increase in
      total expenses of $33,390 or 66%. The increase was primarily due to the increase
      in mineral property expenditures undertaken by us, shares issued in lieu of
      payment for interest on promissory notes and office expenses.





Our
      net
      loss for the six months ended June 30, 2006 was $38,999 compared to a net loss
      of $23,613 for six months ended June 30, 2005, an increase of $15,386, or 65.2%.
      The net loss increase was primarily due to the increase in mineral property
      expenditures undertaken by us and to increases in selling, general and
      administrative expenses.





**Liquidity
      and Capital Resources**





Our
      total
      current assets as of June 30, 2006 were $319 including $94 in cash as compared
      with $48,712 in total current assets as of December 31, 2005, which included
      cash of $48,381. Additionally, we had a shareholders deficiency in the amount
      of
      $1,772 as of June 30, 2006 as compared to shareholders’ equity of $26,394 as of
      December 31, 2005. The shareholders’ deficit is a result of the Company's lack
      of sales of common stock and financing activities. We have historically incurred
      losses and have financed our operations through loans, principally from
      affiliated parties such as our directors, and from the proceeds of the
      corporation selling shares of our common stock privately.





The
      number of common shares outstanding increased from 71,400,000 shares as of
      December 31, 2005 to 82,233,333 as of June 30, 2005, an increase of 15%. This
      increase was primarily a result of 10,833,333 shares of stock issued to satisfy
      a loan agreement..





We
      had
      $48,287 of negative cashflow (cash outflow) from operating activities for the
      six months ended on June 30, 2006, compared to a negative cashflow of $23,613
      for the six months ended June 30, 2005, an increase in cash outflow of
      approximately 48%.





We
      had no
      cashflow from financing activities during the first quarter of 2006, as compared
      to a cashflow of $3,250,000 for the six months ended June 30, 2005.





We
      had no
      cashflow from investing activities for the six months ended on June 30, 2006,
      and we did not have any cashflow from investing activities during the first
      quarter of 2005.





We
      have
      not attained profitable operations and will require additional financing to
      sustain our business operations if we are not successful in earning revenues
      once exploration is complete.  We do not currently have any arrangements
      for financing and may not be able to find such financing if required. There
      can
      be no assurance that we will be able to secure any arrangement for financing
      in
      the current fiscal year. For these reasons our auditors believe that there
      is
      substantial doubt that we will be able to continue as a going concern.





**Off-Balance
      Sheet Arrangements**





We
      do not
      have any off balance sheet arrangements that are reasonably likely to have
      a
      current or future effect on our financial condition, revenues, results of
      operations, liquidity or capital expenditures.





**Going
      Concern**





We
      are
      assuming that we will continue as a going concern, which contemplates the
      realization of assets and the satisfaction of liabilities in the normal course
      of business. We have incurred net operating losses of approximately $38,999
      for
      the six months ended June 30, 2006, compared to $23,613 of net operating losses
      for the six months ended June 30, 2005. At June 30, 2006, the Company's working
      capital deficiency was $1,772 and approximately 29% of our assets consist of
      cash. Additionally, for the six months ended June 30, 2006, we had negative
      cash
      flows from operating activities of approximately $48,287. Since our inception,
      we have incurred losses, had an accumulated deficit, and have experienced
      negative cash flows from operations. The development of our business may require
      additional capital. This condition raises substantial doubt about our ability
      to
      continue as a going concern. The accompanying consolidated financial statements
      do not include any adjustments that might be necessary should we be unable
      to
      continue as a going concern. If we fail to generate positive cash flows or
      obtain additional financing when required, we may have to modify, delay or
      abandon some or all of our business and expansion plans.





12


**Critical
      Accounting Policies**





Statement
      of Financial Accounting Standards No. 109





Income
      taxes are recognized in accordance with Statement of Financial Accounting
      Standards No. 109 (“SFAS 109”), “Accounting for Income Taxes”, whereby deferred
      income tax liabilities or assets at the end of each period are determined using
      the tax rate expected to be in effect when the taxes are actually paid or
      recovered. A valuation allowance is recognized on deferred tax assets when
      it is
      more likely than not that some or all of these deferred tax assets will not
      be
      realized.




Statement
      of Financial Accounting Standards No. 130





The
      Company has adopted Statement of Financial Accounting Standards No. 130 (“SFAS
      130”), “Reporting Comprehensive Income”, which establishes standards for
      reporting and display of comprehensive income, its components and accumulated
      balances. When applicable, the Company would disclose this information on its
      Statement of Stockholders’ Equity. Comprehensive income comprises equity except
      those resulting from investment by owners and distributions to owners. The
      Company has not had any significant transactions that are required to be
      reported in other comprehensive income.





Statement
      of Financial Accounting Standards No. 142





The
      Company has adopted Statement of Financial Accounting Standards No. 142 (“SFAS
      142”), “Goodwill and Other Intangible Assets”, which requires that goodwill not
      be amortized, but that goodwill and other intangible assets be tested annually
      for impairment. The Company’s operational policy for the assessment and
      measurement of any impairment in the value of goodwill and intangible assets,
      which primarily relates to contract-based intangibles such as license agreements
      and extensions, is to evaluate annually, the recoverability and remaining life
      of its intangible assets to determine the fair value of these assets. The
      methodologies to be used to estimate fair value include the use of estimates
      and
      assumptions, including projected revenues, earnings and cash flows. If the
      fair
      value of any of these assets is determined to be less than its carrying value,
      the Company will reflect the impairment of any such asset over its appraised
      value.





Statement
      of Financial Accounting Standards No. 144





In
      accordance with Statement of Financial Accounting Standards No. 144 (“SFAS
      144”), “Accounting for the Impairment or Disposal of Long-Lived Assets”, the
      Company records impairment losses on long-lived assets used in operations when
      indicators of impairment are present and the undiscounted cash flows estimated
      to be generated by those assets are less than the assets’ carrying amount. In
      such cases, the amount of the impairment is determined based on the relative
      fair values of the impaired assets.





Foreign
      Currency Translation





The
      Company’s functional currency is the U.S. dollar. Transactions in foreign
      currency are translated into U.S. dollars as follows:


monetary
      items at the exchange rate prevailing at the balance sheet date; non-monetary
      items at the historical exchange rate; revenue and expense items at the average
      exchange rate in effect during the applicable accounting period. Translation
      adjustments resulting from this process are recorded in Stockholders’ Equity as
      a component of Accumulated Other Comprehensive Income (Loss). Translation gains
      or losses that arise from exchange rate fluctuations in transactions denominated
      in a currency other than the local functional currency are recorded in the
      Statement of Operations.





13


**Revenue
      Recognition**





The
      Company recognizes revenue in accordance with the criteria outline in Securities
      Exchange Commission Staff Accounting Bulletin No. 104 (“SAP 104”), “Revenue
      Recognition”. Revenues will be recognized once they are earned; specifically
      when: (a) services are provided or products are delivered to customers, (b)
      clear proof that an arrangement exists, (c) amounts are fixed or can be
      determined, and (d) the Company’s ability to collect is reasonably assured.





Stock-based
      Compensation





The
      Company accounts for employee stock-based compensation using the intrinsic
      value
      method prescribed in Accounting Principles Board Opinion (“APB”) No. 25 (“APB”),
“Accounting for Stock Issued to Employees”, and related interpretations.
      Accordingly, compensation cost for stock options is measured as the excess,
      if
      any, of the fair value of the Company’s common stock at the date of the grant
      over the amount an employee must pay to acquire the common stock. Non-employee
      stock-based compensation is accounted for using the fair value method in
      accordance with Statement of Financial Accounting Standard No. 123 (“SFAS 123”),
“Accounting for Stock-based Compensation”.





**Recent
      Accounting Pronouncements**





In
      December 2004, Financial Accounting Standard Board (“FASB”) issued Statement of
      Financial Accounting Standards No. 153 (“SFAS 153”), “Exchange of Non-monetary
      Assets - an amendment of APB Opinion No. 29”. This Statement amended APB Opinion
      29 to eliminate the exception of non-monetary exchanges of similar productive
      assets and replaces it with a general exception for exchanges on non-monetary
      assets that do not have commercial substance. A non-monetary exchange has
      commercial substance if the future cash flows of the entity are expected to
      change significantly as a result of the exchange. The Company has determined
      that the adoption of SFAS 153 does not have an impact on its results of
      operations or financial position.





In
      December 2004, FASB issued Statement of Financial Accounting Standards No.
      123
      (revised 2004) (“SFAS 123 (revised 2004)”), “Share-Based Payment”. This
      Statement requires that the cost resulting from all share-based transactions
      be
      recorded in the financial statements. The Statement establishes fair value
      as
      the measurement objective in accounting for share-based payment arrangements
      and
      requires all entities to apply fair-value-based measurement in accounting for
      share-based payment transactions with employees. The Statement also establishes
      fair value as the measurement objective for transactions in which an entity
      acquires goods or services from non-employees in share-based payment
      transactions. The Statement replaces FASB Statement No. 123 “Accounting for
      Stock-Based Compensation” and supercedes APB Opinion no. 25 “Accounting for
      Stock Issued to Employees”. The provisions of this Statement will be effective
      for the Company beginning with its fiscal year ending 2007. The Company has
      determined that the adoption of SFAS 123 (revised 2004) does not have an impact
      on its results of operations or financial position.





In
      March
      2005, the Emerging Issue Task Force issued EITF Issue 04-6 (“EITF Issue 04-6”),
“Accounting for Stripping Costs in the Mining Industry, stating that
      post-production stripping costs are a component of mineral inventory costs
      subject to the provisions of the American Institute of Certified Public
      Accountants Accounting Research Bulletin No.43, “Restatement and Revision of
      Accounting Research Bulletins, Chapter 4 (“ARB No.43”), “Inventory Pricing”.
      Based upon this Statement, post production stripping costs are considered as
      costs of the extracted minerals under a full absorption costing system and
      are
      recognized as a component of inventory to be recognized in costs of sales in
      the
      same period as the revenue from the sale of the inventory. In addition,
      capitalization of such costs would be appropriate only to the extent inventory
      exists at the end of a reporting period. The provisions will be effective for
      financial statements issued for the first reporting period in fiscal years
      beginning after December 15, 2005, with early adoption permitted. The Company
      has determined that the adoption of EITF Issue 04-6 does not have an impact
      on
      its results of operations or financial position since the Company is still
      in
      the exploration stage and has not yet realized any revenues from its
      operations.





14


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





In
      November 2005, the FASB issued Staff Position No. FAS 115-1 (“FSP 115-1”), “The
      Meaning of Other-Than-Temporary Impairment and Its Application to Certain
      Investments”. FSP 115-1 provides accounting guidance for identifying and
      recognizing other-than-temporary impairments of debt and equity securities,
      as
      well as cost method investments and disclosure requirements. FSP 115-1 is
      effective for reporting periods beginning after December 15, 2005, and earlier
      application is permitted. The Company has determined that the adoption of FSP
      115-1 does not have an impact on its result of operations or financial
      position.





**Item
      3. Controls and Procedures.**





As
      of the
      end of the period covered by this report, we conducted an evaluation, under
      the
      supervision and with the participation of our chief executive officer and chief
      financial officer of our disclosure controls and procedures (as defined in
      Rule
      13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation,
      our chief executive officer and chief financial officer concluded that our
      disclosure controls and procedures are effective to ensure that information
      required to be disclosed by us in the reports that we file or submit under
      the
      Exchange Act is recorded, processed, summarized and reported, within the time
      periods specified in the Commission's rules and forms. There was no change
      in
      our internal controls or in other factors that could affect these controls
      during our last fiscal quarter that has materially affected, or is reasonably
      likely to materially affect, our internal control over financial reporting.





**PART
      II**





**Item
      1. Legal Proceedings.**





The
      Company is not currently a party to, nor is any of its property currently the
      subject of, any pending legal proceeding. None of the Company's directors,
      officers or affiliates is involved in a proceeding adverse to the Company's
      business or has a material interest adverse to the Company's business.








**Item
      2. Unregistered Sales of Equity Securities and Use of Proceeds.**





On
      May 3,
      2006, the Company entered into a $3,250,000 secured Loan Agreement (the “Loan
      Agreement”) with 555 Holdings LLC, a Nevada limited liability company, and
      Global Developments Inc. (collectively the “Lenders”), pursuant to which Loan
      Agreement the Company issued $3,250,000 in aggregate principal amount of
      promissory notes (collectively the “Notes”) to the Lenders. In lieu of the
      interest on the Notes, the Company agreed to simultaneously with the issuance
      of
      the Notes to issue six and one third shares of common stock, $0.001 par value
      per share (the “Common Stock”), of restricted stock of the Company for every
      dollar loaned by the Lenders, amounting to 10,833,333 shares of Common Stock
      (the “Shares”). The issuance of the Note was exempt from registration
      requirements of the Securities Act of 1933 (the “Securities Act”) pursuant to
      Section 4(2) of such Securities Act and/or Regulation D promulgated thereunder
      based upon the representations of the Investor that it is an "accredited
      investor" (as defined under Rule 501 of Regulation D) and that it was purchasing
      such securities without a present view toward a distribution of the securities.
      In addition, there was no general advertisement conducted in connection with
      the
      sale of the securities.





**Item
      3. Defaults Upon Senior Securities.**





Not
      applicable.





15


**Item
      4. Submission of Matters to a Vote of Security Holders.**





On
      March
      10, 2006, the majority of the shareholders of the Company approved a resolution
      to conduct a forward split of the common stock, $0.001 par value per share,
      of
      the Company on a 20 for 1 basis, payable as a dividend (the “Forward Split”).
 The record date for the dividend was Friday, March 17, 2006, and the
      Forward Split was affective as of Monday, March 20, 2006.  As a result of
      the dividend, the issued and outstanding common stock of the Company increased
      from 3,570,000 shares issued and outstanding to 71,400,000 shares issued and
      outstanding.





**Item
      5. Other Information.**





On
      May 3,
      2006, New World Entertainment Corp. (the “Company”) entered into a $3,250,000
      secured Loan Agreement (the “Loan Agreement”) with 555 Holdings LLC, a Nevada
      limited liability company, and Global Developments Inc. (collectively the
“Lenders”), pursuant to which Loan Agreement the Company issued $3,250,000 in
      aggregate principal amount of promissory notes (collectively the “Notes”) to the
      Lenders. In lieu of the interest on the Notes, the Company agreed to
      simultaneously with the issuance of the Notes to issue three and one third
      shares of common stock, $0.001 par value per share (the “Common Stock”), of
      restricted stock of the Company for every dollar loaned by the Lenders,
      amounting to 10,833,333 shares of Common Stock (the “Shares”). The Company
      intends to utilize the proceeds of the Notes to finance the acquisition of
      75%
      of the assets of two privately owned entities formed under the laws of Antigua,
      as was previously disclosed in the Company’s Current Report filed on Form 8-K
      with the Securities and Exchange Commission on April 11, 2006. The issuance
      of
      the Note was exempt from registration requirements of the Securities Act of
      1933
      (the “Securities Act”) pursuant to Section 4(2) of such Securities Act and/or
      Regulation D promulgated thereunder based upon the representations of the
      Investor that it is an "accredited investor" (as defined under Rule 501 of
      Regulation D) and that it was purchasing such securities without a present
      view
      toward a distribution of the securities. In addition, there was no general
      advertisement conducted in connection with the sale of the securities.





In
      addition, to secure the Company’s repayment of principal due to the Lenders
      under the Notes, the Company entered into (i) Loan Agreement and (ii)
      Registration Rights Agreement with the Lenders, and the Company will enter
      into
      (i) a Security Agreement and (ii) a Collateral Agent Agreement, pursuant to
      which certain shareholders (the “Shareholders”) will agree to grant to the
      Lenders a first priority security interest in aggregate amount of 10,000,000
      shares of the Company’s Common Stock owned by the Shareholders (the Pledged
      Shares”). The Notes and the aforementioned security agreement shall terminate
      upon the Company’s repayment to the Lenders of principal due under the Notes on
      or prior to May 3, 2007.





The
      Company has agreed to file a registration statement on Form SB-2 registering
      the
      Shares as soon as practicable after the date of issuing the Notes, but in any
      event no later than June 19, 2006, and further agreed to use its best efforts
      to
      cause the Registration Statement to become effective under the Act no later
      than
      120 days from May 3, 2006.





The
      Company further agreed to use its best efforts to obtain requisite Shareholder
      Approval, as defined in the Loan Agreement, to increase its authorized capital
      stock in order to accommodate the amount of the shares to be issued in
      connection with the Loan Agreement and other transaction documents.





At
      the
      Lenders’ election, upon prior written notice following an event of default by
      the Company under the terms of the proposed Loan Agreement and after the
      applicable cure period, the Lenders shall have the right to direct the
      disposition of, and utilize, the Pledge Securities in order to satisfy the
      Company’s outstanding obligations pursuant to the Loan Agreement and transaction
      documents entered into in connection with the Loan Agreement.








16








**Item
      6. Exhibits.**






Exhibit
              Number
            
            Description31.1
            
            Certification
              by Chief Executive Officer and Chief Financial Officer pursuant to
              Sarbanes-Oxley Section 302 (filed herewith).32.1
            
            Certification
              by Chief Executive Officer and Chief Financial Officer pursuant to
              18
              U.S.C. Section 1350 (filed herewith).






















**SIGNATURES**





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




**NEW
                  WORLD ENTERTAINMENT CORP.***Dated:
                October
                3, 2006*
              By:
              /s/ *Michelle
                Dobson**Michelle
                Dobson**President
                and
                Director*





17