MCNAB CREEK GOLD CORP.

(formerly Parthenon Development Corporation)

(A pre-exploration stage Company)



Financial Statements

(Stated in U.S. Dollars)



December 31, 2005





(Unaudited)





Index



Balance Sheets

Statements of Operations

Statements of Stockholders Equity

Statements of Cash Flows

Notes to the Financial Statements



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|                                                             |             |           |           |       
|------------------------------------------------------------ | ----------- | --------- | --------- | ------
|MCNAB CREEK GOLD CORP.                                      
|(formerly Parthenon Development Corporation)                
|(An exploration stage company)                              
|                                                             |             |           |           |       
|BALANCE SHEETS                                              
|(Unaudited)                                                 
|(Expressed in U.S. Dollars)                                 
|                                                             |             |           |           |       
|December
    31,                                             |             | March 31,
|2005                                                         |             | 2005     
|See Note 1 - Basis of Presentation and Going Concern Matters | (Unaudited) |           | (Audited)
|                                                             |             |           |           |       
|                                                             |             |           |           |       
|ASSETS                                                      
|                                                             |             |           |           |       
|Current Assets                                              
|Cash                                                         | $           | 24,294    | $         | 21,403
|                                                             |             |           |           |       
|Equipment                                                    | 199         |           | 257      
|                                                             |             |           |           |       
|Mineral Properties - Note 2                                  | -           |           | -        
|                                                             |             |           |           |       
|Total Assets                                                 | $           | 24,493    | $         | 21,660
|                                                             |             |           |           |       
|                                                             |             |           |           |       
|LIABILITIES AND STOCKHOLDERS' EQUITY                        
|                                                             |             |           |           |       
|Current Liabilities                                         
|Accounts payables and accrued expenses                       | $           | 10,102    | $         | 13,324
|Due to a director - Note 3                                   | -           |           | 4,544    
|Promissory notes payable to related parties - Note 3         | 30,000     
|Liabilities to issue shares                                  | 13,030      |           |          
|Total current liabilities                                    | 23,132      |           | 47,868   
|                                                             |             |           |           |       
|                                                             |             |           |           |       
|Stockholders' Deficiency                                    
|Common Stock : $0.0001 Par Value                            
|Authorized : 100,000,000                                    
|Issued and Outstanding : 1,787,960 (2004: 964,200)           | 179         |           | 96       
|Additional Paid In Capital                                   | 180,868     |           | 98,574   
|Deficit accumulated during the exploration stage             | (179,685)   |           | (124,878)
|Total Stockholders' Deficiency                               | 1,361       |           | (26,208) 
|                                                             |             |           |           |       
|Total Liabilities and Stockholders' Deficiency               | $           | 24,493    | $         | 21,660
|                                                             |             |           |           |       
|(See accompanying notes to the financial statements)        





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|                                                             |           |              |          |                  |           |                   |           |      |            | 
|------------------------------------------------------------ | --------- | ------------ | -------- | ---------------- | --------- | ----------------- | --------- | ---- | ---------- | 
|MCNAB CREEK GOLD CORP.                                      
|(formerly Parthenon Development Corporation)                
|(An exploration stage company)                              
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|STATEMENTS OF OPERATIONS                                    
|(Expressed in U.S. Dollars)                                 
|(Unaudited)                                                 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|February 15,                                                
|                                                             |           | Three months |          | Nine
    months  |           | 2001 (date of    
|                                                             |           | ended        |          | ended            |           | incorporation) to
|                                                             |           | December 31, |          | December
    31, |           | December 31,     
|                                                             |           | 2005         |          | 2004             |           | 2005              |           | 2004 | 2005      
|See Note 1 - Basis of Presentation and Going Concern Matters |           |              |          |                  |          
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|Expenses                                                    
|Compensation expenses                                        | -         |              | -        |                  | -         |                   | -         |      | 48,960    
|Exploration costs (Note 2)                                   | 617       |              | -        |                  | $14,774   |                   | -         |      | 14,774    
|General and administrative                                   | $11,006   |              | $8,801   |                  | 40,033    |                   | $29,323   |      | $92,933   
|Mineral claims - acquisition costs (Note 2)                  | -         |              |          |                  | -         |                   | 3,500     |      | 7,000     
|Property investigation costs                                 | -         |              | -        |                  | -         |                   | 250       |      | 16,018    
|Net loss for the period                                      | $(11,624) |              | $(8,801) |                  | $(54,807) |                   | $(33,073) |      | $(179,685)
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|Loss per share attributable to common                       
|stockholders:                                               
|Basic and diluted                                            | $(0.01)   |              | $(0.01)  |                  | $(0.03)   |                   | $(0.03)   |      | $(0.11)   
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|Weighted average number of                                  
|common shares outstanding:                                  
|Basic and diluted                                            | 1,787,960 |              | 964,200  |                  | 1,787,960 |                   | 964,200   |      | 1,588,094 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|                                                             |           |              |          |                  |           |                   |           |      |            | 
|(See accompanying notes to the financial statements)        



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|                                                                                   |             |           |            |                            |              
|---------------------------------------------------------------------------------- | ----------- | --------- | ---------- | -------------------------- | -------------
|MCNAB CREEK GOLD CORP.                                                            
|(formerly Parthenon Development Corporation)                                      
|(An exploration stage company)                                                    
|                                                                                   |             |           |            |                            |              
|STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)                         
|for the period from February 15, 2001 (Date of Incorporation) to December 31, 2005
|(Expressed in U.S. Dollars)                                                       
|(Unaudited)                                                                       
|                                                                                   |             |           |            | Deficit                    |              
|                                                                                   |             |           |            | Accumulated                |              
|                                                                                   |             | Stock     | Additional | During the                 | Stockholders'
|                                                                                   | Common      | Amount At | Paid In    | pre-exploration            | Equity       
|Stated in U.S. dollars                                                             | Shares      | Par Value | Capital    | stage                      | (Deficiency) 
|See Note 1 - Basis of Presentation and Going Concern Matters                      
|                                                                                   |             |           |            |                            |              
|Issuance of common stock for services rendered                                     | 2,250,000   | $225      | $2,025     | $                   
    - | $2,250       
|at $0.0001 per share, February 16, 2001                                           
|                                                                                   |             |           |            |                            |              
|Comprehensive income (loss)                                                       
|Loss for the period                                                                | (2,935)     | (2,935)  
|                                                                                   |             |           |            |                            |              
|Balance, March 31, 2003 and 2002                                                   | 2,250,000   | 225       | 2,025      | (2,935)                    | (685)        
|                                                                                   |             |           |            |                            |              
|Cancellation of common stock                                                       | (2,250,000) | (225)     | 225        | -                          | -            
|                                                                                   |             |           |            |                            |              
|Capital stock issued for cash                                                     
|- at $0.10                                                                         | 420,200     | 42        | 41,978     |                            | 42,020       
|- at $0.01                                                                         | 544,000     | 54        | 54,346     |                            | 54,400       
|                                                                                   |             |           |            |                            |              
|Comprehensive income (loss)                                                       
|Loss for the year                                                                  |             |           |            | (78,562)                   | (78,562)     
|                                                                                   |             |           |            |                            |              
|Balance, March 31, 2004                                                            | 964,200     | 97        | 98,574     | (81,497)                   | 17,174       
|                                                                                   |             |           |            |                            |              
|Comprehensive income (loss)                                                       
|Loss for the period                                                                | (43,381)    | (43,381) 
|                                                                                   |             |           |            |                            |              
|Balance, March 31, 2005                                                            | 964,200     | 97        | 98,574     | (124,878)                  | (26,207)     
|                                                                                   |             |           |            |                            |              
|Issurance of common stock for debt settlement                                      | 383,760     | 38        | 38,338     |                            | 38,376       
|- at $0.10                                                                        
|                                                                                   |             |           |            |                            |              
|Capital stock issued for cash                                                     
|- at $0.10                                                                         | 440,000     | 44        | 43,956     |                            | 44,000       
|                                                                                   |             |           |            |                            |              
|Comprehensive income (loss)                                                       
|Loss for the period                                                                | -           | -         | -          | (54,807)                   | (54,807)     
|                                                                                   |             |           |            |                            |              
|Balance, December 31, 2005                                                         | 1,787,960   | $179      | $180,868   | $(179,685)                 | $1,361       
|                                                                                   |             |           |            |                            |              
|                                                                                   |             |           |            |                            |              
|(See accompanying notes to the financial statements)                              





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|                                                                   |           |                  |           |                   |            | 
|------------------------------------------------------------------ | --------- | ---------------- | --------- | ----------------- | ---------- | 
|MCNAB CREEK GOLD CORP.                                            
|(formerly Parthenon Development Corporation)                      
|(A pre-exploration stage company)                                 
|                                                                   |           |                  |           |                   |            | 
|STATEMENTS OF CASH FLOWS                                          
|(Stated in U.S. Dollars)                                          
|(Unaudited)                                                       
|                                                                   |           |                  |           |                   |            | 
|Nine                                                               |           | Nine             |           | February 15,     
|months                                                             |           | months           |           | 2001 (date of    
|ended                                                              |           | ended            |           | incorporation) to
|December
    31,                                                   |           | December
    31, |           | December 31,     
|2005                                                               |           | 2004             |           | 2005             
|See Note 1 - Basis of Presentation and Going Concern Matters      
|                                                                   |           |                  |           |                   |            | 
|Cash flows from operating activities                              
|Net loss for the period                                            | $(54,807) |                  | $(33,073) |                   | $(179,685)
|Amount not involving cash:                                        
|- Shares issued for services                                       | -         |                  | -         |                   | 2,250     
|- Compensation expenses paid with common stocks                    | -         |                  | -         |                   | 48,960    
|- Depreciation                                                     | 58        |                  | 82        |                   | 233       
|Changes in non-cash working capital items:                        
|- Accounts payable and accrued liabilities                         | (588)     |                  | 3,780     |                   | 12,736    
|- Due to Director                                                  | 1,633     |                  | 4,544    
|Net cash used in operating activities                              | (55,338)  |                  | (27,578)  |                   | (110,963) 
|                                                                   |           |                  |           |                   |            | 
|Cash flows from investing activities                              
|Additions to equipment                                             | -         |                  | -         |                   | (432)     
|Net cash flows used in investing activities                        | -         |                  | -         |                   | (432)     
|                                                                   |           |                  |           |                   |            | 
|Cash flows from financing activities                              
|Proceeds from the issuance of common stock                         | 82,376    |                  | -         |                   | 129,836   
|Proceeds from the issuance of promissory notes                     | -         |                  | -         |                   | 30,000    
|Proceeds from liabilities to issue common shares                   | 13,029    |                  |           |                   | 13,029    
|Shares issued for amounts due to director                          | (4,544)   |                  |           |                   | (4,544)   
|Settlement of accrued interest on note by issuance of common stock | (2,633)   |                  |           |                   | (2,633)   
|Settlement of promissory notes by issuance of common stock         | (30,000)  |                  | -         |                   | (30,000)  
|Net cash flows provided by financing activities                    | 58,228    |                  | -         |                   | 135,688   
|                                                                   |           |                  |           |                   |            | 
|Increase (Decrease) in cash                                        | 2,890     |                  | (27,578)  |                   | 24,293    
|                                                                   |           |                  |           |                   |            | 
|Cash - beginning of period                                         | 21,403    |                  | 55,014    |                   | -         
|                                                                   |           |                  |           |                   |            | 
|Cash - end of period                                               | $24,294   |                  | $27,436   |                   | $24,294   
|                                                                   |           |                  |           |                   |            | 
|                                                                   |           |                  |           |                   |            | 
|Supplementary cash flow information                               
|Interest paid in cash                                              | $-        |                  | $-        |                   | $-        
|Income taxes paid in cash                                          | $-        |                  | $-        |                   | $-        
|                                                                   |           |                  |           |                   |            | 
|                                                                   |           |                  |           |                   |            | 
|                                                                   |           |                  |           |                   |            | 
|(See accompanying notes to the financial statements)              



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MCNAB CREEK GOLD CORP

(formerly Parthenon Development Corporation)

(A pre-exploration stage Company)

Notes to Financial Statements

December 31, 2005

(Stated in US Dollars)

(Unaudited)



1. Basis of Presentation and Going Concern Matters



In view of certain conditions, the ability of the Company to continue as a going concern is in substantial doubt and dependent upon achieving of profitable level of operations and on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern. Management plans to continue to seek other sources of debt and equity financing on favorable terms and expects to keep its operating costs to a minimum until cash is available through financing or operating activities. There are no assurances that the Company will be successful in achieving these goals. The Company has incurred a loss of $54,807 for the nine months ended December 31, 2005 and at December 31, 2005 had an accumulated deficit of $179,685 and a working capital surplus of $1,162. These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than normal course of business and at amounts different from those reflected in the accompanying financial statements. The accompanying unaudited interim balance sheets, statements of operations and cash flows reflected all adjustments, consisting of normal recurring adjustments and other adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of the Company, at December 31, 2005, and the results of operations and cash flows for the nine months ended December 31, 2005, and for the period February 15, 2001 (Date of Incorporation) to December 31, 2005. The accompanying unaudited financial statements have been prepared in accordance with the instruction from Form 10-QSB pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and notes normally provided in the audited financial statements and should be read in conjunction with the Companys audited financial statements for fiscal period ended March 31, 2005 included in the annual report previously filed on Form 10-KSB. The result of operations for the interim periods presented is not necessarily indicative of the results to be expected for the full year.

2. Mineral Properties

During the year ended March 31, 2004, the Company acquired SMH 31 to SMH50 mineral claim units (BLM No. NMC856514 to NMC856533) located in Eureka County, Nevada for $3,500.  This amount was expensed in 2004.  The mineral claims are subject to a production royalty of 2.5% of net smelter returns.

During the year ended March 31, 2005, the Company acquired Roxy1 to Roxy8 mineral claim units (BLM No. NMC860160 to NMC860167) located in Pershing County, Nevada for $3,500.  This amount was expensed in 2005. The mineral claims are subject to a production royalty of 2.5% of net smelter returns.







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MCNAB CREEK GOLD CORP

(formerly Parthenon Development Corporation)

(A pre-exploration stage Company)

Notes to Financial Statements

December 31, 2005

(Stated in US Dollars)

(Unaudited)



2. Mineral Properties  continued

The exploration costs incurred can be summarized as follows:-



|               |      |                    |       |                       |         |                   |        |        
|-------------- | ---- | ------------------ | ----- | --------------------- | ------- | ----------------- | ------ | -------
|February 15,  
|2001 (date of 
|               |      | Three months ended |       | Nine months
    ended |         | incorporation) to
|               |      | December 31,       |       | December
    31,      |         | September 30,    
|               |      | 2005               | 2004  |                       | 2005    | 2004              |        | 2005   
|               |      |                    |       |                       |         |                   |        |        
|Assays         | $617 | $-                 |       | $1,817                | $-      |                   | $1,817
|Consulting fee | -    |                    | 9,300 | -                     |         | 9,300            
|Supplies       | -    |                    | 430   | -                     |         | 430              
|Travel         | -    |                    | 3,227 | -                     |         | 3,227            
|               |      | $617               | $-    |                       | $14,774 | $-                |        | $14,774





3. Related Party Transactions



|                                          |         |           |  |        
|----------------------------------------- | ------- | --------- |  | -------
|December
    31,                          |         | March 31,
|                                          |         | 2005      |  | 2005   
|Promissory note payable to a director    
|of the Company, unsecured, interest at 8%
|per annum, due January 9, 2006            | $10,000
|                                          |         |           |  |        
|Promissory note payable to a director    
|of the Company, unsecured, interest at 8%
|per annum, due March 19, 2006             | 20,000 
|                                          |         | $-        |  | $30,000









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MCNAB CREEK GOLD CORP

(formerly Parthenon Development Corporation)

(A pre-exploration stage Company)

Notes to Financial Statements

December 31, 2005

(Stated in US Dollars)

(Unaudited)





3. Related Party Transactions - continued





At December 31, 2005, the following related party indebtedness was settled by the issuance of 383,760 common shares of the Company at $0.10 cents per share:







Promissory note payable to the Director of the Company:
      $   30,000Accrued interest on note payable to Director of the Company:
      3,832Amounts due to Director
      4,544$   38,376