---

**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549

FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended **AUGUST 31,
2006**

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

For the transition period from ______________ to
______________

Commission file number: **333-127016**

THE CAVALIER GROUP(Exact
name of small business issuer in its charter)

|Wyoming                                                              | 98-0463119                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|5728  125A Street                                                   |                                     
|Surrey, British Columbia                                             | V3X 3G8                             
|(Address of principal executive offices)                             | (Zip Code)                          

Issuers telephone number: **(604)
597-0028**

Securities Registered Under Section 12(b) of the Exchange Act:
**None**

Securities Registered Under Section 12(g) of the Exchange Act:
**Common Stock, $0.001 par value**(Title of class)

Indicate by check mark whether the issuer (1) has 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 [   ]

Indicate by check mark whether the registrant is an accelerated
filer (as defined by Rule 12b-2 of the Exchange Act) Yes [   ] No
[X]

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

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date:
**7,490,000 shares of Common Stock as of October 13, 2006.**

Transitional Small Business Format. Yes [   ] No [X]

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1

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

---

THE CAVALIER GROUP 
  (An Exploration Stage Company) 
  Condensed Balance Sheet 
  (Unaudited) 
  August 31, 2006

|Assets                                                              |  
|------------------------------------------------------------------- | -
|Current assets:                                                     |  
|Cash                                                                | $
|                                                                    | $
|                                                                    |  
|Liabilities and Shareholders Equity                                |  
|Current liabilities:                                                |  
|Accounts payable and accrued liabilities                            | $
|Total current liabilities                                           |  
|                                                                    |  
|Shareholders equity (Notes 2 and 5):                               |  
|Common stock, $.001 par value; 200,000,000
      shares authorized, |  
|7,490,000
      shares issued and outstanding                       |  
|Additional paid-in capital                                          |  
|Accumulated deficit                                                 |  
|Cumulative translation adjustment                                   |  
|Total shareholders equity                                          |  
|                                                                    | $

See accompanying notes to condensed financial statements

F-1

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THE CAVALIER GROUP 
  (An Exploration Stage Company) 
  Condensed Statements of Operations 
  (Unaudited)

|                                                  |   |                    |   |   |            |   |   | February 11, 2005 |  
|------------------------------------------------- | - | ------------------ | - | - | ---------- | - | - | ----------------- | -
|                                                  |   |                    |   |   |            |   |   | (Inception)       |  
|                                                  |   | Three Months ended |   |   | Through    |  
|                                                  |   | August 31,         |   |   | August 31, |  
|Expenses:                                         |   | 2006               |   |   | 2005       |   |   | 2006              |  
|Contributed rent (Note
      2)                   | $ |                   |   | $ | 300        |   | $ | 1,400             |  
|Contributed administrative support (Note
      2) |   | 50                 |   |   | 50         |   |   | 400               |  
|Professional fees                                 |   | 3,930              |   |   | 1,000      |   |   | 12,830            |  
|Travel and meals                                  |   | 469                |   |   | 356        |   |   | 3,913             |  
|Office                                            |   | 1,958              |   |   | 1,106      |   |   | 7,732             |  
|Rent                                              |   | 600                |   |   |           |   |   | 600               |  
|Organization costs                                |   |                   |   |   |           |   |   | 250               |  
|Bank Charges                                      |   | 52                 |   |   | 127        |   |   | 372               |  
|Licenses, permits, filing
      fees              |   |                   |   |   | 1,303      |   |   | 4,295             |  
|Public relations                                  |   | 1,597              |   |   | 522        |   |   | 3,509             |  
|Total expenses                                    |   | 8,656              |   |   | 4,764      |   |   | 35,301            |  
|                                                  |   |                    |   |   |            |   |   |                   |  
|Loss before income taxes                          |   | (8,656             | ) |   | (4,764     | ) |   | (35,301           | )
|                                                  |   |                    |   |   |            |   |   |                   |  
|Income tax provision (Note 4)                     |   |                   |   |   |           |   |   |                  |  
|                                                  |   |                    |   |   |            |   |   |                   |  
|Net loss                                          | $ | (8,656             | ) | $ | (4,764     | ) | $ | (35,301           | )
|                                                  |   |                    |   |   |            |   |   |                   |  
|Basic and diluted loss per share                  | $ | (0.00              | ) | $ | (0.00      | ) |   |                   |  
|                                                  |   |                    |   |   |            |   |   |                   |  
|Basic and diluted weighted average                |   |                    |   |   |            |   |   |                   |  
|common shares outstanding                         |   | 6,945,000          |   |   | 6,400,000  |   |   |                   |  

See accompanying notes to condensed financial statements

F-2

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THE CAVALIER GROUP 
  (An Exploration Stage Company)Condensed Statement of Changes in Shareholders' Equity 
  (Unaudited)

CumulativeTranslationAdjustmentAdditional
      
      
      
      
      
      OtherCommon
        Stock
      
      
      Paid-In
      
      
      Accumulated
      
      
      ComprehensiveShares
      
      
      Par Value
      
      
      Capital
      
      
      Deficit
      
      
      Income
      
      
      TotalBalance at May 31, 2006
      
      6,400,000
      
      $
      6,400
      
      $
      23,350
      
      $
      (26,645
      )
      $
      152
      
      $
      3,257July 2006, common stopck sold in publicoffering, less $5,000 of offering costs($.05/share) (Note 5)
      
      1,090,000
      
      
      1,090
      
      
      48,410
      
      
      
      
      
      
      
      
      49,500Administrative support contributed byan officer (Note 2)
      
      
      
      
      
      
      
      50
      
      
      
      
      
      
      
      
      50Comprehensive loss:Net loss, period endedAugust 31, 2006
      
      
      
      
      
      
      
      
      
      
      (8,656
      )
      
      
      
      
      (8,656
      )Cumulative translation adjustment
      
      
      
      
      
      
      
      
      
      
      
      
      
      (25
      )
      
      (25
      )Comprehensive loss
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      (8,681
      )Balance at August 31, 2006
      
      7,490,000
      
      $
      7,490
      
      $
      71,810
      
      $
      (35,301
      )
      $
      127
      
      $
      44,126


See accompanying notes to condensed financial statements

F-3

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THE CAVALIER GROUP 
  (An Exploration Stage Company) 
  Condensed Statements of Cash Flows 
  (Unaudited)

|                                                    |   |                    |   |   |            |   |  | February 11, 2005 |  
|--------------------------------------------------- | - | ------------------ | - | - | ---------- | - |  | ----------------- | -
|                                                    |   |                    |   |   |            |   |  | (Inception)       |  
|                                                    |   | Three Months Ended |   |   | Through    |  
|                                                    |   | August 31,         |   |   | August 31, |  
|                                                    |   | 2006               |   |   | 2005       |   |  | 2006              |  
|Cash flows from operating activities:               |   |                    |   |   |            |   |  |                   |  
|Net loss                                            | $ | (8,656             | ) | $ | (4,764     | ) |  | (35,301           | )
|Adjustments to reconcile net
      loss to net cash |   |                    |   |   |            |   |  |                   |  
|used in operating activities:                       |   |                    |   |   |            |   |  |                   |  
|Office space and administrative support             |   |                    |   |   |            |   |  |                   |  
|contributed by an officer (Note 2)                  |   | 50                 |   |   | 350        |   |  | 1,800             |  
|Changes in operating assets and liabilities:        |   |                    |   |   |            |   |  |                   |  
|Deferred offering costs                             |   | 5,000              |   |   | (5,000     | ) |  |                  |  
|Accrued liabilities                                 |   | (2,004             | ) |   | (2,000     | ) |  | 4,578             |  
|Net cash used in                                    |   |                    |   |   |            |   |  |                   |  
|operating activities                                |   | (5,610             | ) |   | (11,414    | ) |  | (28,923           | )
|                                                    |   |                    |   |   |            |   |  |                   |  
|Cash flows from financing activities:               |   |                    |   |   |            |   |  |                   |  
|Proceeds from the sale of common stock              |   | 54,500             |   |   |           |   |  | 82,500            |  
|Offering costs                                      |   | (5,000             | ) |   |           |   |  | (5,000            | )
|Net
      cash provided by                          |   |                    |   |   |            |   |  |                   |  
|financing activities                                |   | 49,500             |   |   |           |   |  | 77,500            |  
|                                                    |   |                    |   |   |            |   |  |                   |  
|Net
      change in cash                            |   | 43,890             |   |   | (11,414    | ) |  | 48,577            |  
|                                                    |   |                    |   |   |            |   |  |                   |  
|Effect of exchange rate changes on cash             |   | (25                | ) |   | 147        |   |  | 127               |  
|                                                    |   |                    |   |   |            |   |  |                   |  
|Cash, beginning of period                           |   | 4,839              |   |   | 26,344     |   |  |                  |  
|                                                    |   |                    |   |   |            |   |  |                   |  
|Cash, end of period                                 | $ | 48,704             |   | $ | 15,077     |   |  | 48,704            |  
|                                                    |   |                    |   |   |            |   |  |                   |  
|Supplemental disclosure of cash flow information:   |   |                    |   |   |            |   |  |                   |  
|Cash paid during the period for:                    |   |                    |   |   |            |   |  |                   |  
|Income taxes                                        | $ |                   |   | $ |           |   |  |                  |  
|Interest                                            | $ |                   |   | $ |           |   |  |                  |  

See accompanying notes to condensed financial statements

F-4

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THE CAVALIER GROUP 
  (An Exploration Stage Company) 
  Notes to Condensed Financial Statements 
  (Unaudited)

NOTE 1: BASIS OF PRESENTATION

The condensed financial statements presented herein have been
  prepared by the Company in accordance with the accounting policies in its audited
  financial statements for the period ended May 31, 2006 as filed in its Form
  10-KSB and should be read in conjunction with the notes thereto. The Company
  is in the exploration stage in accordance with Industry Guide 7. On April 25,
  2005, the Company entered into an option agreement to acquire 100 percent of
  the right, title and interest in a mineral claim located in northeast Ontario,
  Canada. (see Note 3).

In the opinion of management, all adjustments (consisting only
  of normal recurring adjustments) which are necessary to provide a fair presentation
  of operating results for the interim period presented have been made. The results
  of operations for the periods presented are not necessarily indicative of the
  results to be expected for the year.

Interim financial data presented herein are unaudited.

The Companys functional currency is the Canadian dollar;
  however, the accompanying financial statements and footnotes refer to United
  States (U.S.) dollars unless Canadian dollars are specifically designated
  with CDN.

NOTE 2: RELATED PARTY TRANSACTIONS

The Companys president contributed office space to the
  Company through May 31, 2006. The office space was valued at $100 per month
  based on the market rate in the local area and is included in the accompanying
  financial statements as contributed rent expense with a corresponding credit
  to additional paid-in capital.

The president contributed administrative services to the Company
  for the periods presented. The time and effort was recorded in the accompanying
  financial statements based on the prevailing rates for such services, which
  equaled $50 per hour based on the level of services performed. The services
  are reported as contributed administrative services with a corresponding credit
  to additional paid-in capital.

In February 2005, the Company sold 4,000,000 shares of its restricted
  common stock to its president for $4,000 ($.001/share).

NOTE 3: OPTION ON UNPROVEN MINERAL INTERESTS

Casa Claims Option Agreement (formerly referred to as the
  Mineta Resources Ltd. Option Agreement)On April 25, 2005, the Company entered into an option agreement to acquire
  100 percent of the right, title and interest in a mineral claim located in northeast
  Ontario, Canada. Under the terms of the Option Agreement, the Company is required
  to:

F-5

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| | A. | Make option exploration expenditures as follows:
| | -- | ------------------------------------------------

**Exploration****Expenditures**
      
      
      Due DateCDN
      $
      50,000.00
      
      
      October 31, 2006CDN
      
      100,000.00
      
      
      October 31, 2007$
      150,000.00


| | B. | Make annual payments of CDN$50,000, commencing January
        1, 2009, as long as the Company held any interest in the claim.
| | -- | ------------------------------------------------------------------------------------------------------------------------------

In addition to the above terms, the optionor is to retain a three
  percent net smelter royalty.

NOTE 4: INCOME TAXES

The Company records its income taxes in accordance with SFAS
  No. 109, Accounting for Income Taxes. The Company incurred net operating
  losses during the periods shown on the condensed financial statements resulting
  in a deferred tax asset, which was fully allowed for; therefore, the net benefit
  and expense result in $-0- income taxes.

NOTE 5: SHAREHOLDERS EQUITY

The Company filed a Form SB-2 registration statement with the
  SEC on July 29, 2005 to offer up to 2,000,000 shares of the Companys common
  stock at a price of $0.05 per share. The registration statement became effective
  on January 31, 2006. During July 2006, the Company sold 1,090,000 common shares
  pursuant to the registration statement for net proceeds of $49,500, after deducting
  $5,000 of offering costs.

Between April 2005 and May 2005, the Company offered for sale
  3,000,000 shares at of its common stock at a price of $0.01 per share. The Company
  closed the offering after selling 2,400,000 shares for gross proceeds of $24,000.
  The offering was made in reliance on an exemption from registration of a trade
  in the United States under Rule 903 of Regulation S of the United States Securities
  Act of 1933, as amended.

F-6

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THE CAVALIER GROUP 
  (An Exploration Stage Company) 
  Balance Sheet 
  May 31, 2006

|Assets                                                              |  
|------------------------------------------------------------------- | -
|Current assets:                                                     |  
|Cash                                                                | $
|Deferred offering costs                                             |  
|                                                                    | $
|                                                                    |  
|Liabilities and Shareholders
      Equity                          |  
|Current liabilities:                                                |  
|Accounts payable                                                    | $
|Accrued liabilities                                                 |  
|Total current liabilities                                           |  
|                                                                    |  
|Shareholders equity (Note 2):                                      |  
|Common stock, $.001 par value; 200,000,000
      shares authorized, |  
|6,400,000
      shares issued and outstanding                       |  
|Additional paid-in capital                                          |  
|Accumulated deficit                                                 |  
|Cumulative translation adjustment                                   |  
|Total shareholders equity                                          |  
|                                                                    | $

See accompanying notes to financial statements 
  F-7

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2

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

Cautionary Statement Regarding Forward-Looking
Statements

This quarterly report contains forward-looking statements as
that term is defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future financial performance.
Some discussions in this report may contain forward-looking statements that
involve risk and uncertainty. A number of important factors could cause our
actual results to differ materially from those expressed in any forward-looking
statements made by us in this report. Forward-looking statements are often
identified by words like: believe, expect, estimate, anticipate,
intend, project and similar expressions or words which, by their nature,
refer to future events.

In some cases, you can also identify forward-looking statements
by terminology such as may, will, should, plans, predicts, potential
or continue or the negative of these terms or other comparable terminology.
These statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including the risks in the section entitled
"Risk Factors", that may cause our or our industry's actual results, levels of
activity, performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by
these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity or achievements. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.

Our financial statements are stated in United States Dollars
(US$) and are prepared in accordance with United States Generally Accepted
Accounting Principles. All references to "common shares" refer to the common
shares in our capital stock.

As used in this annual report, the terms "we", "us", "our", and
"Cavalier" mean The Cavalier Group, unless otherwise indicated.

Cavalier is an exploration stage company. There is no assurance
that commercially viable mineral deposits exist on the claim that we have under
option. Further exploration will be required before a final evaluation as to the
economic and legal feasibility of the claim is determined.

Glossary of Exploration Terms

The following terms, when used in this report, have the
respective meanings specified below:

| | Development   | Preparation of a mineral deposit for commercial
      production, including installation of plant and machinery and the
      construction of all related facilities. The development of a mineral
      deposit can onlybe made after a commercially viable mineral
      deposit, a reserve, has been appropriately evaluated as economically and
      legally feasible.
| | ------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |               |                                                                                                                                                                                                                                                                                                                                                                            
| | Diamond drill | A type of rotary drill in which the cutting is done by
      abrasion rather than percussion. The cutting bit is set with diamonds and
      is attached to the end of long hollow rods through which water is pumped
      to the cutting face. The drill cuts a core of rock, which is recovered in
      long cylindrical sections an inch or more in diameter.         

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3

| | Exploration     | The prospecting, trenching, mapping, sampling,
      geochemistry, geophysics, diamond drilling and other work involved in
      searching for mineral bodies.                                                                                                                                                                     
| | --------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Geochemistry    | Broadly defined as all parts of geology that involve
      chemical changes or narrowly defined as the distribution of the elements
      in the earths crust; the distribution and migration of the individual
      elements in the various parts of the earth.                                                                 
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Geology         | The science that deals with the history of the earth and
      its life especially as recorded in the rocks; a chronological account of
      the events in the earths history.                                                                                                                                                   
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Geophysics      | The science of the earth with respect to its structure,
      components and development.                                                                                                                                                                                                                                          
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Mineral         | A naturally occurring inorganic element or compound
      having an orderly internal structure and characteristic chemical
      composition, crystal form and physical properties.                                                                                                                                                
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Mineral Reserve | A mineral reserve is that part of a mineral deposit which
      could be economically and legally extracted or produced at the time of the
      reserve determination.                                                                                                                                                            
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Mineralization  | Rock containing an undetermined amount of minerals or
      metals.                                                                                                                                                                                                                                                                
| |                 |                                                                                                                                                                                                                                                                                                                                    
| | Oxide           | Mineralized rock in which some of the original minerals,
      usually sulphide, have been oxidized. Oxidation tends to make the mineral
      more porous and permits a more complete permeation of cyanide solutions so
      that minute particles of gold in the interior of the minerals will be more
      readily dissolved.

Foreign Currency and Exchange Rates

Dollar costs of Cavaliers property acquisition and planned
  exploration costs are in Canadian Dollars. For purposes of consistency and to
  express United States Dollars throughout this report, Canadian Dollars have
  been converted into United States currency at the rate of US $1.00 being approximately
  equal to CA $1.12 or CA $1.00 being approximately equal to US $0.88 which is
  the approximate average exchange rate during recent months and which is consistent
  with the incorporated financial statements.

---

THE FOLLOWING ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL
  CONDITION OF THE CORPORATION FOR THE PERIOD ENDING AUGUST 31, 2006 SHOULD BE
  READ IN CONJUNCTION WITH THE CORPORATIONS CONSOLIDATED FINANCIAL STATEMENTS,
  INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THIS FORM 10-QSB.

Overview

We were incorporated in the State of Wyoming on February 11,
2005 as The Cavalier Group and established a fiscal year end of May 31. Our
statutory registered agent's office is located at 1620 Central Avenue, Suite
202, Cheyenne, Wyoming 82001 and our business office is located at 5728 - 125A
Street, Surrey, British Columbia V3X 3G8. Our telephone number is (604)
597-0028. There have been no material reclassifications, mergers, consolidations
or purchases or sales of any significant amount of assets not in the ordinary
course of business since the date of incorporation. We are a start-up,
exploration stage company engaged in the search for gold and related minerals.
There is no assurance that a commercially viable mineral deposit, a reserve,
exists in our claim or can be shown to exist until sufficient and appropriate
exploration is done and a comprehensive evaluation of such work concludes
economic and legal feasibility.

---

4

On April 25, 2005, we optioned a mineral property containing a
four block mining claim in Ontario, Canada by entering into an Option To
Purchase And Royalty Agreement with Larry Noel Gervais, the beneficial owner of
the claims, an arms-length Ontario resident, to acquire the claims by making
certain expenditures and carrying out certain exploration work on the claims. We
can acquire a 100% interest in the claim subject to the expenditure of a total
of $120,000 through a two-phase exploration program. In addition, the vendors
retain a 3% net smelter royalty. After January 1, 2009 payments of $40,000 per
year are to be made as advance royalty to Gervais so long as Cavalier retains an
interest in the claim.



| | 1. | Cavalier must incur exploration expenditures on the
      claims of a minimum of $40,000, by October 31, 2006;                                                                      
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Cavalier must incur exploration expenditures on the
      claims of a further $80,000, for an aggregate minimum exploration expense
      of $120,000, by October 31, 2007; and     
| | 3. | Upon exercise of the option, Cavalier is required to pay
      to Gervais, commencing January 1, 2009, the sum of $40,000 per annum, as
      prepayment of the net smelter royalty.

The claims are located approximately 18 miles north of the
Eades railway station north of Lake Abitibi which is 100 miles east of Cochrane,
Ontario. Access is via muskeg tractor road and a gravel road (Road #643) that
extends north to the west boundary of the property.

To date we have not performed any work on the claims nor have
we spent any money on research and development activities. Information about the
claims was presented to Mr. Williams for review without any contractual
obligations. A work crew is currently on the property and have commenced work on
the first phase of the exploration program

The claims are unencumbered and there are no competitive
conditions which affect the claims. Further, there is no insurance covering the
claims. We believe that no insurance is necessary since the claims are
unimproved and contain no buildings or improvements.

The names, tenure numbers, date of recording and expiration
date of the claims are as follows:

Claim
    Tenure
    Recording Date
    Expiry Date
    SizeName
    Number
    
    
    (acres)Casa 1
    P 3012728
    February 02, 2004
    February 02, 2007
    40Casa 2
    P 3012010
    May 26, 2004
    May 26, 2007
    40Casa 3
    P 3019152
    December 07, 2004
    December 07, 2007
    640Casa 4
    P 3019153
    December 07, 2004
    December 07, 2007
    600


To keep the claims in good standing, such that they do not
expire on the date indicated in the preceding, we must begin exploration on or
before April 24, 2007 or pay $13,200 to prevent the claims from reverting to the
Crown.

Mr. R. S. Middleton, P. Eng., authored the Report On The Casa
Claims Group Property, dated May 19, 2005, in which he recommended a two-phase
exploration program to properly evaluate the potential of the claims; he is
currently on site with a crew and has commenced the first phase of the
exploration program. Mr. Middleton is a registered Professional Engineer in good
standing in the Association of Professional Engineers of Ontario and the
Geological Association of

---

5

Canada. He is a graduate of the Michigan Technological
University, (B.S., 1968 and M.S., 1969). He has practiced his profession as an
exploration geologist for more than 35 years.

There are no parks or developments that would interfere with
exploration for or exploitation of any mineral deposits that might be located on
the claim. There are no disputes as to title or liens registered on the claim.

Mr. Gervais holds the mining rights to the claims which thereby
gives him or his designated agent, the rights to mine and recover all of the
minerals contained within the surface boundaries of the lease continued
vertically downward. In the event Gervais were to grant another deed which is
subsequently registered prior to our deed, the third party would obtain good
title and we would have nothing.

Gervais has granted an option to Cavalier to allow us to
explore, mine and recover any minerals on the claims. As with the preceding, if
Gervais were to grant an option to another party, that party would be able to
enter the claims, carry out certain work commitments and earn right and title to
the claims; we would have little recourse as we would be harmed, would not own
any claims and would have to cease operations. However, in either event, Mr.
Gervais would be liable to us for monetary damages for breach of the agreement.
The extent of that liability would be for our out of pocket costs for
expenditures on the claims, if any, in addition to any lost opportunity costs if
the claims proved to be of value in the future. The agreement does not
specifically reference these risks or the recourse. Although we would have
recourse against Gervais in the situations described, there is a question as to
whether that recourse would have specific value.

Under Ontario law, if the ownership of the claims were to be
passed to us and the deed of ownership were to be recorded in our name, we would
have to pay a minimum of $4,000 and file other documents since we are a foreign
company in Canada. We would also be required to form an Ontario company which
would necessitate a board of directors, a majority of which would have to be
Ontario residents, and obtain audited financial statements for that company. We
have decided that if gold is discovered on the claims and it appears that it
might be economical to remove the gold , we will record the deed of ownership,
pay the additional tax and file as a foreign company or establish a corporate
subsidiary in Ontario. The decision to record or not record is ours solely.

Geology

The area is part of the Casa Berardi Berntbush portion of the
Abitibi Greenstone Belt. The rocks in the claim area are ancient in nature,
generally associated with the oldest Precambrian era and are mainly comprised of
iron rock forming silicas. The claim block is situated in a regional iron
formation and, therefore, a favourable base metal and precious metal host rock
series may exist on the property. These factors merely indicate the possibility
of gold being found on the Casa claim group. However, until exploration work is
completed it should be assumed that there is no gold on the property.

The principle exploration effort in the past 25 years has been
base metal exploration using electromagnetic methods for outlining conductors.
Gold analysis was not routinely done during these base metal programs, and, as a
result, the gold potential for the area was not assessed. The claims present
additional challenges for exploration as the area is covered by significant
deposits of overburden and there are no significant outcroppings. Therefore, the
property has not been subject to previous gold exploration activities.

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6

History

No previous work has been performed on the property.

Our Proposed Exploration Program  Plan of Operation

Our business plan is to proceed with the initial exploration of
the Casa claims to determine if there are commercially exploitable deposits of
gold and silver. Mr. R. S. Middleton, P. Eng., authored the Report On The Casa
Claims Group Property, dated May 19, 2005, in which he recommended a two-phase
exploration program to properly evaluate the potential of the claims. We must
conduct exploration to determine if gold exists on our properties and if any
gold which is found can be economically extracted and profitably processed. The
first phase work program has commenced and Mr. Middleton is currently on site
with a work crew to phase I; we do not expect results or to receive a report on
the work for approximately five months.

Mr. Middleton is a registered Professional Engineer in good
standing in the Association of Professional Engineers of Ontario and the
Geological Association of Canada. He is a graduate of the Michigan Technological
University, (B.S., 1968 and M.S., 1969). He has practiced his profession as an
exploration geologist for more than 35 years.

We do not claim to have any ores or reserves whatsoever at this
time on our optioned claims.

We anticipate that phase I of the recommended geological
exploration program will cost $40,000 based on the report and is a reflection of
local costs for the specified type of work. We had $48,704 in cash reserves as
of August 31, 2006.

Our business plan is to proceed with initial exploration of the
claims to determine if there are commercially exploitable deposits of gold. We
plan a two-phase exploration program to properly evaluate the potential of the
claims. We must conduct exploration to determine if gold exists on our claims
and if any which is found can be economically extracted and profitably
processed. Initially, we will run a grid over the entire property and review
maps of the results of past geological and geochemical programs correlating all
past information to our grid; then we will complete a diamond drilling program
to evaluate certain specific targets previously identified.

The laying out of a grid and line cutting involves the physical
cutting of the underbrush and overlay to establish an actual grid on the ground
whereby items can be related one to another more easily and with greater
accuracy. When we map, we essentially generate a drawing of the physical
features of the land we are interested in as well as a depiction of what may
have been found in relation to the boundaries of the property. So we will
actually draw a scale map of the area and make notes on it as to the location
where anything was found that was of interest or not.

Geophysical surveying involves the measurement of various
physical properties of the rocks at the site as well as interpreting that
information in terms of the structure and nature of the rock. The geologist will
take different surface and airborne measurements of the various physical
properties of the rocks and interpret the results in terms of what we are
seeking. These methods include magnetic, electrical and seismic measurements.
Our engineers will then interpret all the data obtained, plot it on the map we
have generated and provide their best estimate of the chances of finding gold
and what additional efforts we must undertake in a follow-up phase.

Previously run magnetometer and VLF-EM, very low frequency
electromagnetic surveys, will be used as an aid to mapping and structural
interpretation and may assist in locating gold and serve

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7

to assist in the delineation of the various physical properties
of the rock which can be used as pointers towards whether gold may be present or
not. Anomalies will be evaluated closely and diamond drilled to help in
determining their economic potential.

We plan for approximately 1,000 feet of diamond drilling in
phase I which is a component of exploration and aids in the delineation and
definition of any deposits. The geophysical work gives a general understanding
of the location and extent of at depths that are unreachable by surface
excavations and provides a target for more extensive trenching and core
drilling.

Phase 1 will begin by establishing a base line grid with
25-meter stations and cross lines run every 50 meters for 100 meters each side
of the baseline. We will then relate previous ground and airborne
electromagnetic surveys over the grid followed by approximately 1,000 feet of
diamond drilling over selected target areas based on the results of previous
exploration which will be coordinated with the results of the EM surveys.
Diamond drilled samples will be tested for traces of gold, silver, lead, copper,
zinc, iron and other metals; however, our primary focus is the search for gold
and silver. We will then compare the relative concentrations of gold, silver,
lead and other indicator metals in samples so the results from different samples
can be compared in a more precise manner and plotted on a map to evaluate their
significance. We expect the costs of the geophysical work and diamond drilling
to total approximately $40,000.

These surveys and drilling may require up to three weeks for
the base work and an additional four months for analysis, evaluation of the
results of the work and the preparation of a report on the work accomplished and
will bear an estimated total cost of $40,000. This cost is made up of wages and
fees, grid materials (pickets, paint, flagging etc.), diamond drilling,
geological and geochemical supplies, assaying, camp equipment and operation
costs. It is our intention to carry the work out in 2006, predicated on
completion of the offering described in this document.

Phase II will not be carried out until 2007 and will be
contingent upon favourable results from phase I and any specific recommendations
of Mr. Middleton. It will be directed towards an expansion of the diamond
drilling. The second phase may require up to three weeks work and will cost
approximately $80,000 comprised of wages, fees, camp, diamond drilling, assays
and related. The cost estimate is also based on the report and is a reflection
of local costs for the specified type of work. A further three months may be
required for analysis and the preparation of a report and evaluation on the work
accomplished.

There is no power available on the property or within a
reasonable distance from the property. All contract work will involve bringing
to the site portable power generation units.

Although it may appear that phase II merely continues phase I,
  such is not entirely the case. The work is phased in such a manner as to allow
  decision points to ensure that future work has a value and will provide better
  or additional information as to the viability of the claims. By utilizing a
  multi-phase work program, at the end of each phase a decision can be made as
  to whether the phase has provided the necessary information to increase the
  viability of the project. If the information obtained as a result of any phase
  indicates that there is no increased probability of finding an economically
  viable deposit at the end of the project, a determination would be made that
  the work should cease at that point. This is a standard procedure in the industry
  prior to the commitment of additional funding to move a project forward to the
  next phase of exploration and/or development.

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8

Employees

Initially, we intend to use the services of subcontractors for
  manual labour exploration work on our claims and an engineer or geologist to
  manage the exploration program. Our only employees will be Gerald W. Williams
  and Roy D. West our senior officer and directors.

At present, we have no employees, other than Mr. Williams, our
senior officer and director. Neither Mr. Williams nor Mr. West has an employment
agreement with us. We presently do not have pension, health, annuity, insurance,
stock options, profit sharing or similar benefit plans; however, we may adopt
such plans in the future. There are presently no personal benefits available to
employees.

We intend to hire geologists, engineers and excavation
subcontractors on an as needed basis. We have not entered into negotiations or
contracts with any of them although it is our intention to retain Mr. Middleton
as senior geological consultant. We do not intend to initiate negotiations or
hire anyone until we receive proceeds from our offering.

Offices

Our offices are located at 5728 - 125A Street, Surrey, B.C.
Canada V3X 3G8. Currently, these facilities are provided to us by Gerald W.
Williams, a director and our President, without charge, but such arrangement may
be cancelled at anytime without notice. As our business activities continue, we
anticipate that we will be required to pay a pro rata share of the rent incurred
for the facilities that we occupy. Specific direct expenses incurred such as
telephone and secretarial services are charged back to Cavalier at cost on a
quarterly basis.

Risks

At present we do not know whether or not the claims contain
commercially exploitable reserves of gold or any other valuable mineral.
Additionally, the proposed expenditures to be made by us in the exploration of
the claim may not result in the discovery of commercial quantities of ore.
Problems such as unusual or unexpected formations and other unanticipated
conditions are involved in mineral exploration and often result in unsuccessful
exploration efforts. In such a case, we would be unable to complete our business
plan.

We have sufficient financial resources to complete the first
phase of our proposed exploration plan. However, in order to complete future
phases of our proposed exploration program we will need to raise additional
funding. Even if the first phase of our exploration program is deemed to be
successful there is no guarantee that we will be able to raise any additional
capital in order to finance the second or third phases. Should we be unable to
raise additional funding to complete the second and third phases of our
exploration plan, we would have to cease operations.

Finally, even if our exploration program is successful we may
not be able to obtain commercial production. If our exploration is successful
and commercial quantities of ore are discovered we will require a significant
amount of additional funds to place the claim into commercial production. Should
we be unable to raise the additional funds required, we would be unable to see
the claim evolve into an operating mine and would have to cease operations.

Results of Operations

Cavalier was incorporated on February 11, 2005; comparative
periods for the nine months ended August 31, 2006, and February 11, 2005
(inception) through August 31, 2006 are presented in the following discussion.

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9

Since inception, we have used our common stock to raise money
for our optioned acquisition and for corporate expenses. Net cash provided by
financing activities (less offering costs) from inception on February 11, 2005
to August 31, 2006 was $77,500 as a result of proceeds received from sales of
our common stock.

The Corporation did not generate any revenues from operations
for the quarter ended August 31, 2006. To date, we have not generated any
revenues from our mineral exploration business.

REVENUES

REVENUE  Gross revenue for the quarter ended August 31, 2006
was $0 ($0 for the quarter ended August 31, 2005 and $0 for the period from
inception to August 31, 2006). For the nine month periods ended August 31, 2006
and the part month period ended August 31, 2005, the comparative numbers were $0
and $0.

COMMON STOCK  Since inception, we have used our common stock
to raise money for our optioned acquisition and for corporate expenses. Net cash
provided by financing activities during the quarter ended August 31, 2006 was
$49,500 compared to $0 for the quarter ended August 31, 2005 and $77,500
received for the period from inception on February 11, 2005 through to and
including August 31, 2006. 1,090,000 common shares were issued at a price of
$0.05 per share during the past quarter pursuant to our SB-2 registration
statement whereby a minimum of 1,000,000 shares were being offered for sale. The
offering closed on July 31, 2006. No options or warrants were issued to issue
shares at a later date in the most recent quarter.

EXPENSES

SUMMARY  Total expenses were $8,656 in the quarter ended
August 31, 2006 compared to $4,764 in the previous quarter ended August 31, 2005
as the result of the commencement of Cavaliers business plan which was largely
conceptual at this period last year. A total of $35,501 in expenses has been
incurred since inception on February 11, 2005 through August 31, 2006. The costs
can be subdivided into the following categories.

CONTRIBUTED EXPENSES: $50 in contributed expenses (for
contributed administrative costs) were incurred for the quarter ended August 31,
2006 as compared to $50 for the period ended August 31, 2005 while a total of
$1,800 was incurred in the period from inception on February 11, 2005 to August
31, 2006. The previous period and inception to date figures include contributed
rent ($300 and $1,400 respectively) which was provided by an officer until May
31, 2006. Effective June 01, 2006, we are paying our share of the rent of our
premises. Contributed support costs are expected to run reasonably consistent
from period to period in the future. All contributed expenses are reported as
contributed costs with a corresponding credit to additional paid-in capital.

PROFESSIONAL FEES: Cavalier incurred $3,930 in professional
fees for the quarter ended on August 31, 2006 as compared to $1,000 for the
quarter ended August 31, 2005. From inception to February 11, 2005, we have
incurred a total of $12,830 in professional fees mainly spent on legal and
accounting matters. This cost category will have frequent swings in spending
depending on the legal and accounting activities of the Corporation.

COMPENSATION: No compensation costs were incurred for the
quarter ended August 31, 2006 and no direct compensation costs have been
incurred since inception.

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10

OFFICE EXPENSES: $1,958 in office costs were incurred in the
most recent quarter which ended on August 31, 2006. By comparison, $1,106 was
incurred for the quarter ended August 31, 2005. Costs were higher for the
current year as we entered the first stage of our exploration program whereas in
the previous year Cavalier had not commenced operations. For the period February
11, 2005 (inception) through August 31, 2006 a total of $7,732 has been spent on
office related expenses.

TRAVEL AND MEAL EXPENSES: $469 in travel and meal costs were
incurred in the most recent quarter which ended on August 31, 2006. By
comparison, $356 was incurred for the quarter ended August 31, 2005. For the
period February 11, 2005 (inception) through August 31, 2006 a total of $3,913
has been spent on travel and meal expenses.

BUSINESS PROMOTION & PUBLIC RELATIONS EXPENSES: $1,597 in
business promotion and public relations costs were incurred in the most recent
quarter which ended on August 31, 2006. By comparison, $522 was incurred for the
quarter ended August 31, 2005. For the period February 11, 2005 (inception)
through August 31, 2006 a total of $3,509 has been spent on business, promotion
and related expenses.

INCORPORATION OR ORGANIZATION EXPENSES: $0 in incorporation
costs were incurred in the most recent quarter and nine-month period which ended
on August 31, 2006. By comparison, $0 was incurred for the similar period in the
previous fiscal year. For the period February 11, 2005 (inception) through
August 31, 2006 a total of $250 has been spent on incorporation costs related to
establishing our business.

OTHER GENERAL AND ADMINISTRATIVE COSTS: $52 in other costs were
incurred in the current quarter under review while $127 was incurred for the
quarter ended August 31, 2005. For the period February 11, 2005 (inception)
through August 31, 2006, Cavalier has spent a total of $372 on other or
miscellaneous expenses.

LICENCES, PERMITS AND FILING FEES: $0 in licences, permits and
filing costs were incurred in the current quarter under review while $1,303 was
incurred for the quarter ended August 31, 2005. For the period February 11, 2005
(inception) through August 31, 2006, Cavalier has spent a total of $4,295 on
licences, permits and filing fees.

MINERAL EXPLORATION AND FILING FEES: $0 in mineral exploration
and related filing costs were incurred in the current quarter under review while
$0 was incurred for the month ended August 31, 2005. For the three month periods
ended August 31, 2006 and August 31, 2005, the comparative numbers were $0 and
$0 respectively. For the period February 11, 2005 (inception) through August 31,
2006, Cavalier has spent a total of $0 on mineral exploration and filing fees in
exploring its optioned mineral property.

RENT: $600 in rental expenses were incurred in the current
quarter under review while $0 was incurred for the quarter ended August 31,
2005. For the period February 11, 2005 (inception) through August 31, 2006,
Cavalier has spent a total of $600 on rental expenses. Until May 31, 2006, rent
was provided by an officer and director on the basis of contributed rent which
was at no direct cost to Cavalier but which was previously included as part of
the contributed expenses category. As of June 01, 2006, we are paying our share
of the office rental at a rate of $200 per month which will remain constant for
the foreseeable future.

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11

NET CASH USED IN OPERATING ACTIVITIES: For the three month
period ended on August 31, 2006, $5,610 in net cash was used as compared to
$11,414 having been used in the quarter ended August 31, 2005. The increase in
the current period under discussion is largely due to the higher costs
associated with the filing of the Corporations Form SB-2 registration statement
last year and the relatively high legal, accounting and professional costs and
exploration expenses incurred in the current filing period. A total of $28,923
in net cash has been used for the period from Inception on February 11, 2005 to
August 31, 2006.

INCOME TAX PROVISION: As a result of operating losses, there
has been no provision for the payment of income taxes to date in 2006 or from
the date of inception.

During the current quarter under review, Cavalier sold
1,090,000 shares of its common stock at a price of $0.05 pursuant to our SB-2
registration statement offering. As of the date of this report Cavalier has
7,490,000 common shares issued and outstanding.

Cavalier continues to carefully control its expenses and
overall costs as it moves forward with the development of its business plan.
Cavalier does not have any employees and engages personnel through outside
consulting contracts or agreements or other such arrangements, including for
legal, accounting and technical consultants.

Plan of Operation

Cavalier believes we can satisfy our cash requirements for the
current fiscal year end of May 31, 2007 with available cash on hand. As of
August 31, 2006, we had $48,704 in unallocated working capital.

For the balance of the current fiscal year to May 31, 2007 we
will concentrate our efforts on the phase I work program on our optioned mineral
property and the evaluation of that work. Following industry trends and demands,
we are also considering the acquisition of other properties of merit. In either
situation, a new public offering might be needed and completed during a
subsequent period.

We have commenced phase I of our exploration program at an
estimated cost of $40,000, based on the recommendations of Mr. Middletons
report, which costs are a reflection of local costs for the type of work program
planned. We will proceed to phase II only if we are also successful in being
able to secure the capital funding required to complete phase II and if phase I
has proven to be successful. Similarly, if phase II is not successful, we will
terminate the option on the claim and cease operations of the business.

If it turns out that we have not raised enough money to
complete our secondary exploration program, we will try to raise the funds from
a second public offering, a private placement, loans or the establishment of a
joint venture whereby a third party would pay the costs associated with phase II
and we would retain a carried interest. At the present time, we have not made
any plans to raise additional funds and there is no assurance that we would be
able to raise money in the future. If we need additional money and can't raise
it, we will have to suspend operations.

We do not expect any changes or more hiring of employees since
contracts are given on an as needed basis to consultants and sub-contractor
specialists in specific fields of expertise for the exploration works.

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12

Presently, our revenues are not sufficient to meet operating
and capital expenses. We have incurred operating losses since inception, and
this is likely to continue through fiscal 2006  2007. Management projects that
we may require a total of $100,000 to $200,000 to fund our ongoing operating
expenses and working capital requirements for the next twelve months, broken
down as follows:

Operating expenses
    $35,000Phase I exploration program
    40,000Phase II exploration program
    80,000Working Capital
    45,000Total
    $200,000


As at August 31, 2006, we had a working capital surplus of
$44,126. We do not anticipate that we will be able to satisfy any of these
funding requirements internally until we significantly increase our revenues.

Due to the uncertainty of our ability to meet our current
operating and capital expenses, in their report on the annual financial
statements for the year ended May 31, 2006, our independent auditors included an
explanatory paragraph regarding concerns about our ability to continue as a
going concern. Our financial statements contain additional note disclosures
describing the circumstances that lead to this disclosure by our independent
auditors.

There is substantial doubt about our ability to continue as a
going concern as the continuation of our business is dependent upon obtaining
further financing. The issuance of additional equity securities by us could
result in a significant dilution in the equity interests of our current
stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further
funds required for our continued operations. We are pursuing various financing
alternatives to meet our immediate and long-term financial requirements. There
can be no assurance that additional financing will be available to us when
needed or, if available, that it can be obtained on commercially reasonable
terms. If we are not able to obtain the additional financing on a timely basis,
we will not be able to meet our other obligations as they become due.

Liquidity and Capital Resources

As of end of the last quarter on August 31, 2006, we have yet
to generate any revenues from our business operations.

Since inception, we have used our common stock to raise money
for our optioned acquisition and for corporate expenses. Net cash provided by
financing activities from inception on February 11, 2005 to August 31, 2006 was
$77,500 as a result of gross proceeds received from sales of our common stock
(less offering costs). We issued 4,000,000 shares of common stock through a
Section 4(2) offering in February, 2005 for cash consideration of $4,000. We
issued 2,400,000 shares of common stock through a Regulation S offering in
April, 2005 for cash consideration of $24,000 to a total of 10 placees. Finally,
we issued 1,090,000 shares of common stock through a Regulation SB offering in
June and July, 2006 for cash consideration of $54,500 to a total of 42
placees.

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13

As of August 31, 2006, our total assets which consist entirely
of cash and prepaid expenses amounted to $48,704 and our total liabilities were
$4,578. Working capital stood at $44,126.

For the quarter ended August 31, 2006, the net loss was $8,656
($0.0012 per share). The loss per share was based on a weighted average of
6,945,000 common shares outstanding. For the same period ended August 31, 2005,
the corresponding number was a loss of $4,764 ($0.0007 based on 6,400,000 shares
outstanding. The net loss from Inception to August 31, 2006 is $35,301

Inflation / Currency Fluctuations

Inflation has not been a factor during the recent quarter ended
August 31, 2006. Inflation is moderately higher than it was during 2005 but the
actual rate of inflation is not material and is not considered a factor in our
contemplated capital expenditure program.

Item 3. Controls and Procedures

The registrant's certifying officers are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and the Corporations
Chief Executive Officer and Chief Financial Officer have:

| | a) | designed such disclosure controls and procedures to
      ensure that material information relating to the registrant, including its
      consolidated subsidiaries, is made known to us by others within those
      entities, particularly during the period in which this quarterly report is
      being prepared;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b) | evaluated the effectiveness of our disclosure controls
      and procedures as of the filing date of this quarterly report (the
      "Evaluation Date"); and                                                                                                                                                          
| | c) | presented in this quarterly report our conclusions about
      the effectiveness of the disclosure controls and procedures based on our
      evaluation as of the Evaluation Date;                                                                                                                                    

There have been no changes in the our internal controls or in
  other factors that could affect these controls including any corrective actions
  with regard to deficiencies and material weaknesses.

---

PART II  OTHER INFORMATION

Item 1. Legal Proceedings

The Corporation is and has not been party to any legal
proceedings in the preceeding quarter.

Item 2. Changes in Securities

Cavalier had 7,490,000 shares of common stock issued and
outstanding as of October 13, 2006. Of these shares, approximately 4,000,000
shares are held by an affiliate of the Corporation; some of those shares can be
resold in compliance with the limitations of Rule 144 as adopted by the
Securities Act of 1933, as amended (the Securities Act).

In general, under Rule 144, a person who has beneficially owned
shares privately acquired directly or indirectly from us or from one of our
affiliates, for at least one year, or who is an affiliate, is entitled to sell,
within any three-month period, a number of shares that do not exceed the greater
of 1% of the then outstanding shares or the average weekly trading volume in our
shares during the four calendar weeks immediately preceding such sale. Sales
under Rule 144 are

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14

also subject to certain manner of sale provisions, notice
requirements and the availability of current public information about us. A
person who is not deemed to have been an affiliate at any time during the 90
days preceding the sale, and who has beneficially owned restricted shares for at
least two years, is entitled to sell all such shares under Rule 144 without
regard to the volume limitations, current public information requirements,
manner of sale provisions or notice requirements.

The issuances discussed under this section are exempted from
registration under Rule 903 of Regulation S of the Securities Act (Reg. S) or
Section 4(2) of the Securities Act (Section 4(2)), as provided. All purchasers
of our securities acquired the shares for investment purposes only and all stock
certificates reflect the appropriate legends as appropriate. No underwriters
were involved in connection with the sale of securities referred to in this
report.

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

No matter has been submitted to a vote of security holders
during the preceeding quarter.

Item 5. Other Information

Use of Proceeds

Net cash provided by financing activities from inception on
February 11, 2005 to August 31, 2006 was $77,500 as a result of proceeds
received from sales of our common stock. During that same period, the following
table indicates how the proceeds have been spent to date:

Professional Fees
    12,830Office Expenses
    7,732Licenses, Permits and Filing Fees
    4,295Organizational Costs
    250Business Promotion & Public Relations
    3,509Travel and Meals
    3,913Rent
    600Other Costs
    372Total Use of
      Proceeds to August 31, 2006
    $33,501


Common Stock

During the three month period ended August 31, 2006, 1,090,000
shares of common stock were issued at a price of $0.05 per share pursuant to our
SB-2 registration statement which became effective on January 31, 2006. As of
August 31, 2006, there were 7,490,000 shares issued and outstanding and as of
October 13, 2006 there were 7,490,000 shares outstanding.

Options

No options were granted during the three-month period ending
August 31, 2006.

Item 6. Exhibits and Reports on Form 8-K

Reports on Form 8-K filed during the quarter ended August 31,
2006: NONE

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15

Exhibits

|31.1 | Certification of Chief Executive
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                   
|31.2 | Certification of Chief Financial
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   
|32.1 | Certification of Chief Executive
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   
|32.2 | Certification of Chief Financial
        Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.
|     |                                                                                                                                                                   
|     |                                                                                                                                                                   

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

The Cavalier Group (Registrant)

Date: October 13, 2006

BY:            
/s/ Gerald W. Williams

Gerald W. Williams, President, Chief
Executive Officer, Principal
Executive                          Officer,
Secretary, Treasurer, Chief Financial
Officer,                          Principal
Financial Officer and a Member of the Board
of                          Directors



BY:            
/s/ Roy D. West

Roy D. West, Member of the Board of
Directors

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