================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

[X]   Quarterly  Report  pursuant  to  Section  13  or  15(d)  of the Securities
      Exchange Act of 1934

      For the quarterly period ended        June 30, 2006
                                      -----------------------

[ ]   Transition Report pursuant to 13 or 15(d) of the Securities Exchange
      Act of 1934

      For the transition period                    to
                                ------------------   --------------------

      Commission File Number      001-31669
                               -----------------

                                    TARI INC.
    ------------------------------------------------------------------------
        (Exact name of small Business Issuer as specified in its charter)

            Nevada                                     98-03048905
---------------------------------              -----------------------------
(State or other jurisdiction of                      (IRS Employer
incorporation or organization)                     Identification No.)

                        700 West Pender Street, Suite 802
                   Vancouver, British Columbia, Canada V6C 1G8
                    (Address of principal executive offices)

                                 (604) 685-3317
               Registrant's telephone number, including area code


                                      None
     -----------------------------------------------------------------------
 (Former name, former address and former fiscal year, if changed since last
                                    report)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12
months (or for such  shorter  period  that the issuer was  required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days [X] Yes [ ] No

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest  practicable date:  3,890,000 shares of $0.001 par value
common stock outstanding as of November 1, 2006.

<page>













                                    TARI INC.

                        (A Pre-exploration Stage Company)

                          INTERIM FINANCIAL STATEMENTS

                                  June 30, 2006

                             (Stated in US Dollars)

                                   (Unaudited)














<page>


                                    TARI INC.
                        (A Pre-exploration Stage Company)
                             INTERIM BALANCE SHEETS
                        June 30, 2006 and March 31, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                      June 30,         March 31,
                                                     ASSETS                             2006              2006
                                                     ------                             ----              ----

                                                                               <c>               <c>
Current
    Cash                                                                          $         3,958   $           573
                                                                                  ===============   ===============

                                                  LIABILITIES
                                                  -----------
Current
    Accounts payable and accrued liabilities - Note 3                             $        38,269   $        32,892
    Due to related party - Note 3                                                          25,813            21,011
                                                                                  ---------------   ---------------

                                                                                           64,082            53,903
                                                                                  ---------------   ---------------

                                            STOCKHOLDERS' DEFICIENCY
                                            ------------------------
Preferred stock, $0.001 par value
           10,000,000  shares authorized, none outstanding
Common stock, $0.001 par value
          100,000,000  shares authorized
            3,890,000  shares issued                                                        3,890             3,890
Additional paid-in capital                                                                 90,610            90,610
Deficit accumulated during the pre-exploration stage                                     (154,624)         (147,830)
                                                                                  ---------------   ---------------

                                                                                          (60,124)          (53,330)
                                                                                  ---------------   ---------------

                                                                                  $         3,958   $           573
                                                                                  ===============   ===============
</table>

<page>

                                    TARI INC.
                        (A Pre-exploration Stage Company)
                        INTERIM STATEMENTS OF OPERATIONS
                       for the three months ended June 30,
                    2006 and 2005, and for the period May 2,
                    2001 (Date of Inception) to June 30, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                    May 2, 2001
                                                                                                      (Date of
                                                                       Three months ended          Inception) to
                                                                            June 30,                  June 30,
                                                                     2006             2005              2006
                                                                     ----             ----              ----

                                                            <c>              <c>              <c>
Expenses
    Audit and accounting fees                                  $         2,250  $         3,895   $        44,577
    Bank charges                                                            32               76             1,064
    Consulting fees                                                          -                -            15,500
    Incorporation costs                                                      -                -               900
    Legal fees                                                               -                -            30,768
    Management fees - Note 3                                             1,500            1,500            12,000
    Office expenses                                                      1,200            1,200             9,986
    Mineral lease costs - Note 4                                         1,172           10,217            28,637
    Transfer agent and filing fees                                         640              729            11,192
                                                               ---------------  ---------------   ---------------

Net loss for the period                                        $        (6,794) $       (17,617)  $      (154,624)
                                                               ===============  ===============   ===============

Basic loss per share                                           $         (0.00) $         (0.00)
                                                               ===============  ===============

Weighted average number of shares outstanding                        3,890,000        3,890,000
                                                               ===============  ===============
</table>

<page>

                                    TARI INC.
                        (A Pre-exploration Stage Company)
             INTERIM STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
         for the period May 2, 2001 (Date of Inception) to June 30, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                     Deficit
                                                                                                   Accumulated
                                                                                Additional         During the
                                                    Common Shares                 Paid-in        Pre-exploration
                                         ------------------------------------
                                              Number           Par Value          Capital             Stage              Total
                                              ------           ---------          -------             -----              -----

                                     <c>               <c>               <c>               <c>                 <c>
Capital stock issued for cash
                        - at $0.01             2,500,000   $        2,500    $        22,500   $              -    $      25,000
Net loss for the period ended
 March 31, 2002                                        -                -                  -            (39,696)         (39,696)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, March 31, 2002                        2,500,000            2,500             22,500            (39,696)         (14,696)
Capital stock subscribed pursuant to
an offering memorandum for cash
                        - at $0.05             1,390,000            1,390             68,110                  -           69,500
Net loss for the year ended
 March 31, 2003                                        -                -                  -            (27,653)         (27,653)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, March 31, 2003                        3,890,000            3,890             90,610            (67,349)          27,151
Net loss for the year ended
 March 31, 2004                                        -                -                  -            (17,858)         (17,858)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, March 31, 2004                        3,890,000            3,890             90,610            (85,207)           9,293
Net loss for the year ended
 March 31, 2005                                        -                -                  -            (24,235)         (24,235)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, March 31, 2005                        3,890,000            3,890             90,610           (109,442)         (14,942)
Net loss for the year ended
 March 31, 2006                                        -                -                  -            (38,388)         (38,388)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, March 31, 2006                        3,890,000            3,890             90,610           (147,830)         (53,330)
Net loss for the three months
ended June 30, 2006                                    -                -                  -             (6,794)          (6,794)
                                         ---------------   --------------    ---------------   ----------------    --------------

Balance, June 30, 2006                         3,890,000   $        3,890    $        90,610   $       (154,624)   $     (60,124)
                                         ===============   ==============    ===============   ================    ==============
</table>


<page>

                                    TARI INC.
                        (A Pre-exploration Stage Company)
                        INTERIM STATEMENTS OF CASH FLOWS
                       for the three months ended June 30,
                  2006 and 2005, and for the period May 2, 2001
                      (Date of Inception) to June 30, 2006
                             (Stated in US Dollars)
                                   (Unaudited)
<table>
<caption>
                                                                                                                May 2, 2001
                                                                                                                  (Date of
                                                                                  Three months ended           Inception) to
                                                                                       June 30,                   June 30,
                                                                                2006              2005              2006
                                                                                ----              ----              ----

                                                                       <c>              <c>               <c>
Cash Flows used in Operating Activities
    Net loss for the period                                               $        (6,794)  $       (17,617)  $      (154,624)
    Change in non-cash working capital item related to operations:
      Accounts payable and accrued liabilities                                      5,377             6,620            38,269
                                                                          ---------------   ---------------   ---------------

                                                                                   (1,417)          (10,997)         (116,355)
                                                                          ----------------  ---------------   ---------------

Cash Flows provided by Financing Activities
    Proceeds from shares issued                                                         -                 -            94,500
    Increase in due to related party                                                4,802            10,000            25,813
                                                                          ---------------   ---------------   ---------------

                                                                                    4,802            10,000           120,313
                                                                          ---------------   ---------------   ---------------

Increase (decrease) in cash during the period                                       3,385              (997)            3,958

Cash, beginning of the period                                                         573             2,458                 -
                                                                          ---------------   ---------------   ---------------

Cash, end of the period                                                   $         3,958   $         1,461   $         3,958
                                                                          ===============   ===============   ===============
</table>


<page>

                                    TARI INC.
                        (A Pre-exploration Stage Company)
                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  June 30, 2006
                             (Stated in US Dollars)
                                   (Unaudited)

Note 1        Interim Reporting
              -----------------
              While information  presented in the accompanying interim financial
              statements is unaudited,  it includes all adjustments,  which are,
              in the  opinion of  management,  necessary  to present  fairly the
              financial  position,  results of operations and cash flows for the
              interim  period  presented.   All  adjustments  are  of  a  normal
              recurring  nature.  It is suggested  that these interim  financial
              statements be read in  conjunction  with the  Company's  March 31,
              2006 financial statements. Operating results from the period ended
              June 30, 2006 are not  necessarily  indicative of the results that
              can be expected for the year ending March 31, 2007.

Note 2        Continuance of Operations
              -------------------------
              These  financial  statements have been prepared in accordance with
              generally  accepted  accounting  principles  applicable to a going
              concern,  which  assumes that the Company will be able to meet its
              obligations  and  continue  its  operations  for its  next  twelve
              months.  Realization  values may be  substantially  different from
              carrying  values as shown and these  financial  statements  do not
              give effect to adjustments that would be necessary to the carrying
              values and  classification  of assets and  liabilities  should the
              Company  be unable to  continue  as a going  concern.  At June 30,
              2006, the Company had not yet achieved profitable operations,  has
              accumulated losses of $154,624 since its inception,  has a working
              capital  deficiency of $60,124 and expects to incur further losses
              in the development of its business, all of which casts substantial
              doubt about the Company's  ability to continue as a going concern.
              The Company's  ability to continue as a going concern is dependent
              upon its ability to generate future  profitable  operations and/or
              to obtain the  necessary  financing  to meet its  obligations  and
              repay its liabilities arising from normal business operations when
              they come due.  Management  has no formal plan in place to address
              this concern but considers that the Company will be able to obtain
              additional   funds  by  equity   financing  and/or  related  party
              advances,  however  there is no  assurance of  additional  funding
              being available.

Note 3        Related Party Transactions
              --------------------------
              The  Company  was charged  the  following  by the  director of the
              Company:
<table>
<caption>
                                                                                                   May 2, 2001
                                                                                                     (Date of
                                                                     Three months ended           Inception) to
                                                                          June 30,                   June 30,
                                                                    2006             2005              2006
                                                                    ----             ----              ----
              
                                             <c>               <c>             <c>
              Management fees                                 $       1,500     $        1,500   $        12,000
                                                              =============     ==============   ===============
</table>

<page>

Note 3        Related Party Transactions - (cont'd)
              --------------------------

              Included  in accounts  payable at June 30, 2006 is $12,000  (March
              31, 2006:  $10,500) of unpaid  management fees due to the director
              of the Company.

              The amount due to related  party,  the  director  of the  Company,
              consists of unpaid advances of $25,813 (March 31, 2006:  $21,011).
              The  amount  due is  unsecured,  non-interest  bearing  and has no
              specific terms for repayment.

Note 4        Commitments
              -----------
              Mining Lease

              By a lease  agreement  effective  May 15, 2001 and  amended  April
              2002,  November 2002, April 2003,  January 9, 2004, April 11, 2005
              and July 24, 2006, the Company was granted the exclusive  right to
              explore and mine the SF resource property located in Storey County
              of the State of  Nevada.  The term of this  lease is for 20 years,
              renewable for an additional 20 years so long as the  conditions of
              the lease are met.  Minimum  payments and performance  commitments
              are as follows:

              The owner shall be paid a royalty of 4% of the net smelter returns
              from all  production.  In respect to this royalty,  the company is
              required to pay minimum advance royalty payments as follows:

              -   $5,000 upon execution (paid);
              -   $1,250 on or before May 15, 2002 (paid);
              -   $1,500 on or before November 30, 2002 (paid);
              -   $1,500 on or before April 15, 2003 (paid);
              -   $2,000 on January 9, 2004 (paid);
              -   $5,000 on or before July 9,  2004 (paid);
              -   $5,000 on April 12, 2005 (paid); and
              -   $50,000  each January 9 thereafter  until  termination  of the
                  lease,  adjusted  based on inflation  rates  designated by the
                  Consumer Price Index.

              In  addition,   the  Company  was  required  to  fund  exploration
              expenditures of $5,000 by April 12, 2005 (paid).

              Pursuant to the July 24, 2006 amending agreement, the Company paid
              $20,000  (paid  subsequent to June 30, 2006) to amend the original
              lease agreement.

<page>

Note 4        Commitments - (cont'd)
              -----------

              Mining Lease - (cont'd)

              The Company can reduce the net smelter  return  royalty to 0.5% by
              payment of a buy-out price of $5,000,000. Advance royalty payments
              made to the date of the  buy-out  will be  applied  to reduce  the
              buy-out price.

              Performance Commitment:

              In the event that the Company  terminates  the lease after June 1,
              of any year it is required  to pay all  federal  and state  mining
              claim  maintenance  fees for the next assessment year. The Company
              is  required  to  perform  reclamation  work  in the  property  as
              required by federal state and local law for disturbances resulting
              from the Company's activities on the property.


Note 5        Subsequent Events - Note 4
              -----------------

              Subsequent to June 30, 2006, the director of the Company  advanced
              $25,000 to the  Company.  The advance is  unsecured,  non-interest
              bearing and has no specific terms for repayment.

<page>

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


Forward Looking Statements

This quarterly report contains forward-looking statements that involve risks and
uncertainties.  We use words such as anticipate,  believe, plan, expect, future,
intend and similar expressions to identify such forward-looking  statements. You
should not place too much  reliance  on these  forward-looking  statements.  Our
actual results are likely to differ  materially from those  anticipated in these
forward-looking  statements  for many  reasons,  including the risks faced by us
described in this Risk Factors section and elsewhere in this quarterly report.


Plan of Operation

Our plan of operation for the twelve months following the date of this report is
to complete the recommended  phase one exploration  program on the SF project in
which we hold a leasehold interest. We anticipate that this program will cost us
$89,000.

On April 11,  2005,  the SF  Property  lease  agreement  dated May 15,  2001 was
further  amended  with  respect to the  Schedule of Minimum  Payments.  With the
amendment,  the  Company,  instead of paying the  advance  royalty of $10,000 by
January  9,  2005,  shall pay  $5,000 by April 12,  2005,  and fund  exploration
expenditures  on the SF Property of $5,000 by April 12, 2005. Both payments were
made on April 12, 2005. In order to keep the lease in good standing, we must pay
the lessor $50,000 by January 9 every year thereafter.

On July 24,  2006,  the lease  agreement  was  further  amended  respect  to the
Schedule of Minimum Payments. With the amendment,  the Company shall pay $20,000
by July 24, 2006 and pay the lessor  $50,000 by January 9 every year  thereafter
in order to keep the lease in good  standing.  The  Company has paid the $20,000
pursuant to the amendment.

In addition,  we anticipate spending $15,000 on professional fees and $14,000 on
administrative expenses.

Excluding any mineral property  payments,  total  expenditures  over the next 12
months are therefore  expected to be $29,000.  Our cash on hand at June 30, 2006
was  $3,958.  Accordingly,  we will need to raise  additional  funds in order to
complete  the  recommended  exploration  program on the SF project  and meet our
other expected  expenses.  We do not currently have any arrangements for raising
additional funding.

Results of Operations for the first quarter ended June 30, 2006

We incurred a net loss of $6,794 for the three month period ended June 30, 2006,
as compared to a loss of $17,617 in the same period in 2005.  The  difference in
net loss was  primarily due to a decrease in audit and  accounting  and resource
property  costs.  As per management  agreement dated July 1, 2004, the president
started to charge the Company  $500 per month for  management  fees.  After this
management agreement expired on June 30, 2005, the president charges the Company
$500 per  month on a month by month  basis  ($1,500  for the  period of April to
June).  The  Company  also  started  to incur  $400 per month for  office  rent,
telephone expenses,  and general  miscellaneous  office expenses ($1,200 per the
period April -June)  related to use of the Vancouver  office.  At the end of the
first  quarter,  we had cash on hand of  $3,958.  Our  liabilities  for the same
period totalled $64,082 and consisted of accounts payable of $38,269 and $25,813
due to our president.

<page>

Item 3.  Controls and Procedures


As required by Rule 13a-15 under the Exchange  Act,  within the 90 days prior to
the filing date of this report,  the Company  carried out an  evaluation  of the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures.  This evaluation was carried out under the supervision and with
the  participation  of  the  Company's   management,   including  the  Company's
President, the Chief Executive Officer, and the Chief Financial Officer.

Based upon that evaluation,  the Company concluded that the disclosure  controls
and  procedures are  effective.  There have been no  significant  changes in the
Company's  internal  controls or in other  factors,  which  could  significantly
affect  internal  controls  subsequent  to the date the Company  carried out its
evaluation.

PART II  OTHER INFORMATION

Item 1.  Legal Proceedings

The Company is not a party to any pending  legal  proceeding.  Management is not
aware of any threatened litigation, claims or assessments.

Item 2.  Changes in Securities

None.

Item 3.  Defaults upon Senior Securities

None.

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

None.

Item 5.  Other Information

None.

Item 6.  Exhibits and Report on Form 8-K

 31.1    Certification pursuant to 18 U.S.C. Section 1350, as  adopted  pursuant
         to Section 302 of the Sarbanes-Oxley Act of 2002
 31.2    Certification pursuant to 18 U.S.C. Section 1350, as  adopted  pursuant
         to Section 302 of the Sarbanes-Oxley Act of 2002
 32.1    Certification pursuant to 18 U.S.C. Section 1350, as  adopted  pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002
 32.2    Certification pursuant to 18 U.S.C. Section 1350, as  adopted  pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002

<page>

There were no reports  filed on Form 8-K during the three  months  period  ended
June 30, 2006.

SIGNATURES

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

                                         Tari Inc.

                                         /s/ Theodore Tsagkaris
                                         ---------------------------
                                         Theodore Tsagkaris
                                         President, Secretary, Treasurer
                                         Chief Executive Officer and Director
                                         (Principal Executive Officer,
                                         Principal Financial Officer and
                                         Principal Accounting Officer)
                                         Dated: November 1, 2006