UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC 20549


                               FORM 10-QSB
   QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934 ACT
                         REPORTING REQUIREMENTS


[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from ________________to ___________________

                    Commission File Number: 000-29983






                    GLOBAL INDUSTRIAL SERVICES, INC.
         ------------------------------------------------------
         (Exact name of registrant as specified in its charter)




   Nevada                                                   98-0203485
-------------                                          -------------------
 (State of                                               (I.R.S. Employer
organization)                                          Identification No.)



14th Floor, 609 Granville Street, Vancouver, B.C. Canada V6Y 1G5
----------------------------------------------------------------
(Address of principal executive offices)



Registrant's telephone number, including area code: (604) 683-8358


Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months and (2)
has been subject to such filing requirements for the past 90 days.  Yes [X]

There are 18,839,431 shares of common stock issued and outstanding as of
November 12, 2001.



                                  INDEX

                                                                        Page
PART I - FINANCIAL INFORMATION                                          ----


Item 1.  Financial Statements

     Consolidated Balance Sheets.......................................   3

     Statement of Stockholders' Equity.................................   4

     Consolidated Statement of Operations (Unaudited)..................   5

     Consolidated Statements of Cash Flow (Unaudited)..................   6

     Notes to Financial Statements..................................... 7-13

Item 2.  Management's Discussion and Analysis and Plan of Operation....  14


PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.............................................  19

Item 2.  Changes in Securities.........................................  19

Item 6.  Exhibits and Reports on Form 8-K..............................  19


Signatures.............................................................  20





                                   -2-



                     PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

Management has compiled the unaudited interim financial information of
Global Industrial Services Inc. consisting of the interim balance sheet
as at September 30, 2001 and the interim statement of operations and the
interim statement of cash flows for the nine months ended September 30,
2001.  This financial information has not been audited or reviewed by an
accounting firm.  Readers are cautioned that these statements may not be
appropriate for their purposes

                     GLOBAL INDUSTRIAL SERVICES INC.
                       CONSOLIDATED BALANCE SHEETS
<Table>

                                   <c>                <c>
                                         September 30,      December 31,
ASSETS                                       2001               2000
                                         -------------     --------------
CURRENT ASSETS                            (Unaudited)

  Cash and cash equivalents                $  339,627       $   119,376
  Accounts receivable                         513,515           872,661
  Prepaid expenses                             22,484           111,206
  Inventory                                   214,970           185,801
  Due From Related Party                       80,949                 -
                                         -------------     -------------
    Total Current Assets                    1,171,545         1,289,044

PROPERTY AND EQUIPMENT                      3,145,530         3,089,461

OTHER ASSETS                                  146,396           106,667

GOODWILL                                      733,588           880,041
                                         -------------     -------------
TOTAL ASSETS                             $  5,197,059      $  5,365,213
                                         =============     =============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Cash overdraft                         $      5,547         $  26,565
  Accounts payable and accrued
    liabilities                               759,702           736,335
  Payable on investments                    1,174,300         1,314,300
  Payable on convertible note                  63,713                 -
  Current portion of long term debt           633,433           511,581
  Deferred revenue                            142,018            36,079
  Advances payable - related party            250,650         1,050,323
                                         -------------     -------------
    Total current liabilities               3,029,363         3,675,183

Debenture payable                             100,000                 -

Long term debt, less current portion          758,360           923,467
                                         -------------     -------------
    Total liabilities                       3,887,723         4,598,650
                                         -------------     -------------
STOCKHOLDERS' EQUITY
  Common stock, $.001 par value;
   50,000,000 shares authorized;
   20,806,097 and 9,414,346 shares
   issued and outstanding                      20,807             9,415
  Additional paid-in capital                5,520,973         1,608,490
  Foreign currency translation
    adjustment                                (21,079)           (4,867)
  Accumulated deficit                      (4,211,365)         (846,475)
                                         -------------     -------------
    Total Stockholders' Equity              1,309,336           766,563
                                         -------------     -------------
  TOTAL LIABILITIES AND
STOCKHOLDERS'
   EQUITY                                 $ 5,197,059       $ 5,365,213
                                         =============     =============
</Table>

                              - 3 -



                         GLOBAL INDUSTRIAL SERVICES INC.
                        STATEMENT OF STOCKHOLDERS' EQUITY

<Table>

                           <c>           <c>          <c>           <c>            <c>            <c>            <c>
                                    Common Stock         Additional                    Currency
                                ----------------------     Paid-in     Common Stock    Translation   Accumulated
                                 Shares        Amount      Capital     Subscriptions   Adjustment      Deficit        Total
                                --------      --------   -----------   -------------   ----------    -----------   ----------

Balance at December 31, 2000     9,414,346        9,415   1,608,490              -      (4,867)      (846,475)       766,563

  Sale of common stock             206,667          207      74,793              -            -              -        75,000

  Issuance of shares as part
   of option agreement              25,000           25      16,225              -            -              -        16,250

  Issuance of shares
   for services                  2,357,000        2,357   1,048,643              -            -              -     1,051,000

  Issuance of shares
   for compensation              2,500,000        2,500     974,000              -            -              -       976,500

  Issuance of shares in
   settlement of payables        4,849,751        4,850   1,475,075              -            -              -     1,479,925

  Foreign currency
   translation adjustment                -            -           -              -     (22,540)              -      (22,540)

  Net loss                               -            -           -              -            -    (2,006,445)   (2,006,445)
                              ------------    --------- -----------    -----------  -----------   ------------   -----------
Balance at March 31, 2001       19,352,764       19,354   5,197,226              -     (27,407)    (2,852,920)     2,336,253

  Issuance of shares
   for services                    833,333          833     224,167              -            -              -       225,000

  Foreign currency
   translation adjustment                -            -           -              -       16,446              -        16,446

  Net loss                               -            -           -              -            -      (696,490)     (696,490)

  Convertible debenture
   beneficial conversion
   feature                               -            -      25,000              -            -              -        25,000
                              ------------    --------- -----------    -----------  -----------   ------------   -----------
Balance at June 30, 2001        20,186,097       20,187   5,446,393              -     (10,961)    (3,549,410)     1,906,209

  Sale of common stock             500,000          500      49,500              -            -              -        50,000

  Issuance of shares for
   services                        120,000          120      25,080              -            -              -        25,200

  Foreign currency
   translation adjustment                                                              (10,118)                     (10,118)

  Net loss                               -            -           -              -            -      (661,955)     (661,955)
                              ------------    --------- -----------    -----------  -----------   ------------   -----------

Balance at September 30, 2001   20,806,097       20,807   5,520,973              -     (21,079)    (4,211,365)     1,309,336
                              ============    ========= ===========    ===========  ===========   ============   ===========
</Table>
                                      - 4 -



                         GLOBAL INDUSTRIAL SERVICES INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<Table>

                                    <c>                 <c>              <c>               <c>
                                          For the Three     For the Three    For the Nine       For the Nine
                                          Months Ended      Months Ended     Months Ended       Months Ended
                                          September 30,     September 30,    September 30,      September 30,
                                              2001              2000             2001               2000
                                          ------------      ------------     ------------- -    -------------
Revenue
  Drilling Services                          $ 441,420        $  732,705      $  1,999,734      $  1,580,558
  Engineering Services                         511,928           864,830         1,839,303         1,655,254
                                         -------------     -------------   ---------------    --------------
                                               953,348         1,597,535         3,839,037         3,235,812

Operating Costs
  Drilling Services                            451,393           646,005         1,597,385         1,084,713
  Engineering Services                         306,289           425,753         1,032,010         1,044,737
                                         -------------     -------------   ---------------    --------------
                                               757,682         1,071,758         2,629,395         2,129,450

Operating Profit                               195,666           525,777         1,209,642         1,106,362

General and administrative expense             716,908           481,176         4,311,423         1,100,539
Amortization of goodwill                        52,275            49,283           149,521            82,138
Impairment adjustment                                -                 -                 -           225,000
Interest expense                                96,301            28,367           148,722            53,452
Interest Income                                (7,863)           (1,121)          (35,134)           (6,907)
                                         -------------     -------------   ---------------    --------------

(Loss) income from operations
 before income taxes                         (661,955)            40,018       (3,364,890)         (347,860)

Provision for income taxes                           -                 -                 -                 -
                                         -------------     -------------   ---------------    --------------
Net loss                                   $ (661,955)         $  40,018      $(3,364,890)       $( 347,860)
                                         =============     =============   ===============    ==============
Net loss per common share - basic          $    (0.03)         $    0.01      $     (0.19)       $    (0.05)
  and diluted                            =============     =============   ===============    ==============
Weighted average number of common shares
  outstanding - basic and diluted           20,473,764         7,576,464        17,669,413         7,576,464
                                         =============     =============   ===============    ==============
</Table>

                                      - 5 -




                         GLOBAL INDUSTRIAL SERVICES INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (UNAUDITED)

<Table>

                                              <c>                  <c>
                                                     For the nine       For the nine
                                                     months ended       months ended
                                                     September 30,      September 30,
                                                         2001               2000
                                                     -------------      ------------
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                          $ (3,364,890)        $ (347,860)
  Adjustments to reconcile net loss to
   net cash (used in) operating activities:
    Depreciation and amortization                         302,714           186,403
    Bad debt                                               75,531                 -
    Debenture discount amortization                        25,000                 -
    Non-cash interest expense                                 313                 -
    Write off of property and equipment                     8,000                 -
    Shares issued for option agreement                     16,250                 -
    Shares issued for services and compensation         2,277,700           125,000
    Impairment of investment                                    -           225,000
    Changes in assets and liabilities
     Accounts receivable                                  283,615            98,605
     Inventory                                           (29,169)            53,510
     Prepaid Expenses                                     113,882         (130,566)
     Other assets                                        (39,729)               249
     Deferred revenue                                     105,939         (184,544)
     Accounts payable and accrued liabilities             343,439         (158,785)
                                                   --------------      ------------
NET CASH PROVIDED BY (USED IN)
  OPERATING ACTIVITIES                                    118,595         (132,988)
                                                   --------------      ------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Property and equipment                                  (5,381)            54,168
  Net cash in acquisitions                                      -        (  43,051)
                                                   --------------      ------------
NET CASH USED IN INVESTING ACTIVITIES                     (5,381)            11,117
                                                   --------------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Cash overdraft                                         (21,018)                 -
  Sale of common stock                                    125,000           122,500
  Convertible debenture proceeds                          100,000                 -
  Convertible note proceeds                                63,400                 -
  Note payable repayments                               (258,204)         (101,648)
  Payable on investments                                (140,000)                 -
  Investments in subsidiaries                                   -         (650,000)
  Advances from related party                             254,071           882,887
                                                   --------------      ------------
NET CASH PROVIDED (USED) BY FINANCING                     123,249           253,739
ACTIVITIES
                                                   --------------      ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH                  (16,212)           (8,659)
                                                   --------------      ------------
NET (DECREASE) INCREASE IN CASH                           220,251           123,209

Cash  - beginning                                         119,376               215
                                                   --------------      ------------
Cash - ending                                          $  339,627        $  123,424
                                                   ==============      ============
</Table>
The accompanying notes are an integral part of the financial statements.

                             - 6 -




                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001


NOTE 1 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          Interim Financial Information
          The accompanying unaudited interim financial statements
          have been prepared by the Company, in accordance with
          generally accepted accounting principles pursuant to
          Regulation S-B of the Securities and Exchanges
          Commission.  Certain information and footnote
          disclosures normally included in audited financial
          statements prepared in accordance with generally
          accepted accounting principles have been condensed or
          omitted.  Accordingly, these interim financial
          statements should be read in conjunction with the
          Company's financial statements and related notes as
          contained in Form 10-KSB for the year ended December
          31, 2000.  In the opinion of management, the interim
          financial statements reflect all adjustments, including
          normal recurring adjustments, necessary for fair
          presentation of the interim periods presented.  The
          results of operations for the nine months ended
          September 30, 2001 are not necessarily indicative of
          results of operations to be expected for the full year.

          Basis of Presentation
          The accompanying consolidated financial statements
          include the accounts of Global Industrial Services Inc.
          and its wholly-owned subsidiaries

          All significant intercompany accounts and transactions
          have been eliminated in consolidation.

          As reflected in the accompanying financial statements,
          the Company has had recurring losses from operations, a
          negative cash flow from operations and a negative
          working capital.  These matters raise substantial doubt
          about the Company's ability to continue as a going
          concern.

          In view of the matters described in the preceding
          paragraph, recoverability of a major portion of the
          recorded asset amounts shown in the accompanying
          consolidated balance sheet is dependent upon continued
          operations of the Company, which, in turn, is dependent
          upon the Company's ability to continue to raise capital
          and generate positive cash flows from operations.  The
          consolidated financial statements do not include any
          adjustments relating to the recoverability and
          classification of recorded asset amounts or amounts and
          classifications of liabilities that might be necessary
          should the Company be unable to continue its existence.

          Management plans to take the following steps that it
          believes will be sufficient to provide the Company with
          the ability to continue in existence:

          a)  Raise additional capital through the sale of capital stock
          b)  Acquire additional operating companies through the issuance
              of capital stock and cash

                               -7-


                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001


NOTE 1 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Lines of Business
          The Company, through its subsidiary Stothert, provides
          engineering, construction and project management
          services for the pulp and paper industry with
          particular focus on recausticizing plants and lime
          kilns.  Stothert provides a full range of services
          including feasibility studies, detailed engineering,
          due diligence, mill audits, project management
          services, turnkey supply and construction, operations
          and training services, and project financing.
          Stothert's business is conducted in Vancouver, Canada.
          The Company's subsidiary AK Drilling operates primarily
          in the mineral exploration and water drilling industry.
          Its offices are located in Montana.  AK Drilling also
          conducts operations in Peru, through its subsidiary AK
          International, S.A..

NOTE 2 -  ADVANCES TO RELATED PARTY

          Advances to a related party are non-interest bearing,
          unsecured and due on demand. The related party is a
          company that is controlled by one of the stockholders
          of the Company.

NOTE 3 -  ADVANCES PAYABLE - RELATED PARTY

          Advances from a related party of $250,650 are non-
          interest bearing, unsecured and due on demand. The
          related party is an officer of the Company's AK
          Drilling subsidiary. Advances Payable - Related Party
          was $1,111,319 at December 31, 2000, and was owed to
          companies controlled by stockholders of the Company.
          $1,013,039 of this payable was settled in February
          2001, by the issuance of common shares in the Company.

NOTE 4 -  ACQUISITIONS

          During the second quarter of 2000, Global completed the
          acquisition of AK Drilling, Inc. and Stothert Group,
          Inc.  Both acquisitions are recorded using the purchase
          method of accounting under the provisions of APB
          Opinion No. 16.

                               -8-



                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001

NOTE 4 -  ACQUISITIONS (Continued)

          On April 6, 2000, the Company completed its acquisition
          of AK Drilling, Inc., a company engaged in the contract
          drilling for minerals and water.  According to the
          terms of this acquisition, the Company acquired all of
          the capital stock of AK Drilling, Inc. for a total
          consideration of $1,150,000 in cash plus 1,000,000
          shares of common stock of the Company valued at $0.64
          per share (fair value at the acquisition date).  At
          September 30, 2001, $628,000 of the cash portion of the
          purchase price remained unpaid.

          On April 26, 2000, the Company completed its
          acquisition of Stothert Group, Inc., an engineering
          firm.  According to the terms of this acquisition, the
          Company acquired all of the capital stock of Stothert
          Group, Inc. for a total consideration of $814,300 in
          cash plus 227,000 shares of common stock of the Company
          valued at $0.88 per share (fair value at the
          acquisition date).  At September 30, 2001, $546,300 of
          the cash portion of the purchase price remained unpaid.


          The estimated fair value of assets acquired and
          liabilities assumed is summarized as follows:

                                          AK         Stothert
                                       Drilling       Group
                                      ---------     ----------

               Cash                    $(80,367)        $36,729
               Accounts receivable       436,710        997,265
               Inventory                 101,432              -
               Fixed assets            2,667,132        109,660
               Other receivables           5,511              -
               Other assets               43,093        117,414
               Accounts payable        (122,351)      (856,816)
               Taxes payable            (63,125)              -
               Notes payable         (1,230,909)        (3,322)
               Deferred revenue                -      (373,533)
               Goodwill                   30,374        985,642
                                     -----------     ----------
                                               -
                                      $1,787,500     $1,013,039
                                     ===========     ==========


         Goodwill recorded through acquisitions is $1,016,016
         and is being amortized over five years. Amortization
         expense recorded in the statement of operations for the
         nine months ended September 30, 2001 totals $149,521
         and  $52,275 for the quarter (nine months ended
         September 30, 2000 - $82,138 and the quarter ended
         September 30, 2000 - $49,282).

                               -9-



                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001


NOTE 4 -  ACQUISITIONS (Continued)

          The operations of the acquired entities have been
          included in the statement of operations from the dates
          of acquisition.

          Additionally, the Company issued 95,808 shares of
          stock, valued at $143,712, to former shareholders of
          Stothert to settle accounts payable and accrued
          expenses.

NOTE 5 -  PROPERTY AND EQUIPMENT

          Depreciation expense recorded in the statement of
          operations for the nine months ended September 30, 2001
          was $153,193 and $51,914 for the quarter (nine months
          ended September 30, 2000 - $102,498 and the quarter
          ended September 30, 2000 - $55,996).

NOTE 6 -  PAYABLE ON CONVERTIBLE NOTE

          On September 25, 2001, the Company received an advance
          payment of $63,400 (Canadian $100,000) as part of the
          Canadian $400,000 convertible note signed on November
          15, 2001.  Interest payable on this note shall accrue
          at the annual rate of thirty percent (30%) and be
          payable monthly commencing 30 days following the
          advance of funds under the note and on the Maturity
          Date (November 15, 2002) when the principal and
          remaining accrued but unpaid interest shall be due and
          payable. The holder has the right to convert up to
          fifty percent (50%) of any outstanding unpaid principal
          and interest at any time the Company's common stock is
          trading at a price of $1.00 or greater for a period of
          ten (10) consecutive trading days.  The conversion
          price per share shall be eighty percent (80%) of the
          average closing bid prices for the common stock for the
          five (5) trading days prior to but not including the
          Conversion Date.  On the Maturity Date, the Holder
          shall have the right to convert any unpaid principal
          portion of this note of $50,000 or greater amount, or
          any lesser amount representing the full remaining
          outstanding and unpaid principal portion, and the
          monthly interest for the Company's common stock at the
          conversion price.

          For no additional consideration, the Holder will
          receive one warrant to purchase one share of common
          stock for each dollar of principal or interest
          converted under this note.  The warrant shall be
          exercisable for a period of one year from the date of
          issue at the exercise price of eighty percent (80%) of
          the average closing bid prices for the common stock for
          the five (5) trading days prior to but not including
          the exercise date.

                               -10-


                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001


NOTE 7 -  DEBENTURE PAYABLE

          On June 22, 2001, the Company issued a $100,000
          convertible debenture together with a premium of
          $25,000. The premium was paid on August 23, 2001 as per
          the original terms of the convertible debenture
          agreement. At any time the holder may opt to convert
          the debenture to common stock at a conversion price
          which is the lesser of (a) 110% of the closing bid
          price for Company's common stock on the trading day
          immediately preceding the Issuance Date, or (b) 80% of
          the lowest closing bid price for Company's common stock
          during the five (5) trading days prior to and including
          the conversion date.  The beneficial conversion feature
          valued at $25,000 has been fully amortized as of
          September 30, 2001.

NOTE 8 -       SUPPLEMENTAL CASH FLOW DISCLOSURE




                                            For the nine       For the nine
                                            months ended       months ended
                                            September 30,      September 30,
                                                2001               2000
                                            ------------       ------------

          Income taxes paid                 $        -         $       -
          Interest received                     35,134             4,891
          Interest paid                         62,553            27,047

          NON-CASH INVESTING DISCLOSURE
          Property and equipment addition     (214,949)                -

          NON-CASH FINANCING DISCLOSURE
          Capital lease                        214,949                 -


                               -11-


                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001

NOTE 9 -  COMMITMENTS AND CONTINGENCIES

         Stothert  has issued standby letters of credit  totaling
         $259,400  relating to contracts that were  completed  as
         of  September 30, 2001.  These standby letters of credit
         will  reduce to $235,600 on November 30, 2001  and  will
         expire on December 31, 2002.

         Stothert is currently involved in a dispute with a
         customer regarding the provision of services. The
         dispute is being handled by Stothert's professional
         liability insurers.  Negotiations are in progress to
         settle the claim within the insurance policy limits.

         Collaterals for loans
         The Company has loans related specifically to AK
         Drilling.  These loans are generally for and secured by
         equipment purchases for items such as drill rigs and
         haul trucks.

         The Company has an operating line with First Citizens
         Bank established in 2000.  The operating line is
         secured by all unsecured inventory, accounts receivable
         and equipment.

NOTE 10 -  GEOGRAPHIC AREAS AND INDUSTRY SEGMENTS

         The Company currently operates in two principal
         segments, engineering services and contract drilling.

         The Company's foreign operations are conducted by
         Global and Stothert.






                                       Nine months          Nine months
                                          ended                ended
                                      September 30,        September 30,
                                          2001                 2000
                                      ------------         ------------

  Revenues from external customers
    Drilling                          $  1,999,734         $  1,580,558
    Engineering                          1,839,303            1,655,254
                                      ------------         ------------
                                      $  3,839,037         $  3,235,812
                                      ============         ============

  Depreciation and amortization:
    Drilling                          $    129,789         $     91,994
    Engineering                             23,404               10,504
                                      ------------         ------------
                                      $    153,193         $    102,498
                                      ============         ============
  Segment profit (loss) before
   taxes:
    Drilling                          $  (281,537)         $    184,359
    Engineering                          (258,174)              169,468
    Corporate                          (2,825,179)            (701,687)
                                      ------------         ------------
                                      $(3,364,890)         $  (347,860)
                                      ============         ============

                              -12-


                 GLOBAL INDUSTRIAL SERVICES INC.
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001


NOTE 10 -  GEOGRAPHIC AREAS AND INDUSTRY SEGMENTS (CONTINUED)

         The following geographic area data for trade revenues
         is based on product or service delivery location and
         property, plant, and equipment is based on physical
         location.

                                Nine months ended      Nine months ended
                                  September 30,          September 30,
                                       2001                   2000
                                -----------------      -----------------
  Revenues from external
  customers:
    United States                   $  1,698,943           $  1,580,558
    Canada                             1,839,303              1,655,254
    Peru                                 300,791                      -
                                    ------------          -------------
                                    $  3,839,037            $ 3,235,812
                                    ============          =============

                                        As at                  As at
                                    September 30,          December 31,
                                        2001                   2000
                                -----------------      -----------------
  Segment assets:
    United States                   $  3,108,753           $  3,127,800
    Canada                             1,589,447              1,653,960
    Peru                                 498,859                583,453
                                    ------------           ------------
                                    $  5,197,059           $  5,365,213
                                    ============           ============

NOTE 11 - COMPARATIVE FIGURES

         Certain of the comparative figures have been
         reclassified to conform to the presentation adopted in
         the current period.


                              -13-

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF
          OPERATIONS

NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
These statements plan for or anticipate the future. Forward-
looking statements include statements about our future business
plans and strategies, statements about our need for working
capital, future revenues, results of operations and most other
statements that are not historical in nature. In this Report,
forward-looking statements are generally identified by the words
"intend", "plan", "believe", "expect", "estimate", "could",
"may", "will", and the like. Investors are cautioned not to put
undue reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulations, the
Company disclaims any intent or obligation to update publicly
these forward-looking statements, whether as a result of new
information, future events or otherwise. Because forward-looking
statements involve future risks and uncertainties, these are
factors that could cause actual results to differ materially from
those expressed or implied.

MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS

The following discussion should be read in conjunction with the
third quarter consolidated financial statements of the Company
and related notes included elsewhere in this Report for the
period ended September 30, 2001. All statements contained herein
(other than historical facts) including, but not limited to,
statements regarding the Company's future development plans, the
Company's ability to generate cash from its operations, and any
losses related thereto, are based upon current expectations.
These statements are forward looking in nature and involve a
number of risks and uncertainties. Actual results may differ
materially from the anticipated results, or other expectations,
expressed in the Company's forward looking statements. Generally,
the words "anticipate,"  "believe,"  "estimate,"  "expects," and
similar expressions as they relate to the Company and/or its
management, are intended to identify forward-looking statements.
Among the factors that could cause actual results to differ
materially could be the inability of the Company to obtain
additional financing to meet its capital requirements, needs and
general business and economic conditions as well as technological
developments.

The accompanying consolidated financial statements include the
accounts of Global Industrial Services Inc. and its wholly-owned
subsidiaries. Those subsidiaries are Stothert Group, Inc.
("Stothert"), Stothert's subsidiaries, AK Drilling, Inc. ("AK
Drilling"), and AK Drilling's subsidiary.

OVERVIEW

The Company has a limited history of operations and no history of
profitability. It was incorporated as Charger Ventures Inc. on
July 24, 1998 and changed its name to Global Industrial Services
Inc. on March 30, 2000. The Company was organized to engage in
any lawful corporate business, including but not limited to the
business of combining and integrating specialized product/service
providers of the industrial services industry sector. Prior to
December 31, 1999, the Company had no operating history other
than organizational matters. In the second quarter of 2000, the
Company acquired two operating entities and is no longer in the
development stage.

                              -14-

On April 6, 2000 the Company acquired AK Drilling Inc. from its
sole shareholder who remains as the operator of AK Drilling. The
acquisition price was $1,150,000 in cash and 1 million common
shares of the Company. AK Drilling operates primarily in the
mineral exploration and water drilling industry. At September 30,
2001, the Company owed the shareholder of AK $628,000 (December
31, 2000 - $768,000) of the cash portion of the purchase price.
AK Drilling's offices are located in Ramsay, Montana and it has
projects throughout the United States and in Peru.  Peru's
operations are being conducted by AK Drilling's subsidiary, AK
International, S.A..  Payments of $140,000 were made during the
first nine months to the former shareholder of AK Drilling.

On April 26, 2000 the Company acquired Stothert from its
shareholders in consideration for $814,300 in cash and 227,000
common shares of the Company. At September 30, 2001, the Company
owed the Stothert shareholders $546,300 (December 31, 2000 -
$546,300) of the cash portion of the purchase price. Stothert is
a Vancouver based company providing engineering, construction and
project management services for the power, pulp and paper,
industrial minerals, forestry and environmental industries.  It
was established in 1966 and employs professional engineers,
managers and operations specialists.  Stothert provides a full
range of services including feasibility studies, detailed
engineering, project management services, turnkey supply and
construction, operations and training services, technical audits
and due diligence.  It has carried out industrial projects in
over 60 countries.

On August 16, 2000 the sole stockholder of Passant Acquisition
Corp. ("Passant"), a Nevada corporation, sold his interest to the
Company for $50,000 in cash consideration and Gregory M. Wilson
resigned as President, Secretary, Treasurer and Sole Director and
Terry Kirby became a Director, President, Secretary, Treasurer.
Pursuant to the Agreement and Plan of Reorganization dated as of
August 16, 2000 between the Company and Passant, all of the
outstanding shares of common stock of Passant were exchanged for
the sum of $50,000.

During the first nine months of fiscal 2001, the Company was
financed through advances from related parties of approximately
$254,000. In addition, the Company settled debts of $1,479,925 by
the issuance of stock in the first quarter. 206,667 common shares
were sold to raise $75,000 in cash in the first quarter and
another 500,000 common shares were sold to raise $50,000 in cash
in the third quarter. Shares were also issued for payments to
contractors and employees, in addition to payments for debts
owed, for $1,295,200 during the first nine months. 210,000 common
shares were sold during 2000 to raise $160,000.

On January 12, 2001, the Company entered into an option to
purchase Trisil Minerals Inc. (Trisil) subject to the Company's
evaluation of Trisil's properties and markets for Trisil's
products.  The option was open for 180 days and it was
subsequently expired.  The Company is in the process of
renegotiating with Trisil regarding a future potential purchase.

                              -15-

RESULTS OF OPERATIONS

The Company was not operating prior to December 31, 1999 and had
only incurred minimal start-up expenses as of that date. The
acquisitions of Stothert and AK Drilling were completed during
the second quarter in 2000. The two acquired companies results
are reflected in the consolidated financial statements from the
dates of acquisition.

Total revenues during the quarter ending September 30, 2001 were
$953,348 made up of $441,420 from drilling services and $511,928
from engineering services.  Total revenues during the quarter
ending September 30, 2000 were $1.6 million, comprising drilling
services revenue of $732,705 and engineering services revenue of
$864,830.  Both service lines' revenues were down due to the
downturn of the North American market.  In addition, the drilling
revenues were further decreased by a cancellation of a major
contract in July.

During the quarter, operating costs of $757,682 were made up of
$451,393 expenses in the drilling operations and $306,289 in the
engineering services.  Compared to the last year's quarter of
$1,071,758 (drilling expenses of $646,005 and engineering
expenses of $425,753), there had been a 29% decrease in its
operating costs.  Gross profits for the drilling and engineering
operations were -2% and 40% respectively during the current
quarter (12% and 51% respectively during last year's quarter).
Both divisions' gross profit percentages were decreased due to
the bad economic times in the North American market.  The
drilling division's gross profit percentage was further
negatively impacted by the additional costs incurred bringing the
Peru's equipment to the United States and the cancellation of a
major contract in the quarter.

The quarter reported general and administrative costs of $716,908
compared to last year's $481,176, a 49% increase.  Of the
$716,908 in the general and administrative costs this quarter,
$309,469 was related to salaries and benefits and $226,734 to
consulting and management fees.  Comparatives for the general and
administrative costs are not available as the Company did not
have separate accounts tracking the different categories of
expenses last year.  The Company incurred interest expense of
$96,301 and received interest income of $7,863 in the quarter
($28,367 and $1,121 respectively in the same quarter last year).

The Company recorded a loss of $661,955 during the quarter (a net
income of $40,018 in the same period last year). Drilling
operations resulted in a $157,237 loss in the third quarter
($74,204 profit in the same quarter last year) and the
engineering services operation resulted in a $148,256 loss
($41,107 profit in the same quarter last year). The parent
company recorded a loss of $356,462 during the quarter ($75,293
loss in the same quarter last year).  A combination of the
downturn in the North American market, the cancellation of a
major contract, the additional costs of bringing the equipment
from Peru to the United States and the commitment to incur the
fixed expenses all contributed to the overall loss during the
quarter.

                              -16-

Since last quarter end, Peru's operations had slowed down
substantially as the major contract had been inactive.  AK
Drilling's operations in Peru generated sales of only $8,872
during the quarter ended September 30, 2001 ($nil for the quarter
ended September 30, 2000) or 0.01% of total revenues.  AK Peru's
equipment was also removed from Peru.  As a result, there is
minimal risk associated with operating in Peru going forward.

The results of the engineering and drilling operations are
expected to improve during the fourth quarter as the Company has
been negotiating additional drilling and engineering projects and
contracts in the fourth quarter. The corporate entity will
continue to be a cost center as it undertakes to improve the debt
and equity structure of the Company and review additional
acquisition opportunities.


LIQUIDITY AND CAPITAL RESOURCES

The working capital position of the Company at September 30, 2001
was a deficit of $1,857,818.  This amount includes the loan
payable on investments of $1,174,300 which is in the process of
being re-structured. It is expected that the loans on investments
will be repaid from operating cash flows or from equity
financings.

During the quarter, the Board of Directors approved the issuance
of a total of 500,000 common shares to investors at $0.10 and the
issuance of 120,000 common shares to pay for services provided by
an outside contractor.

On September 25, 2001, the Company received an advance payment of
$63,400 (Canadian $100,000) as part of the Canadian $400,000
convertible note signed on November 15, 2001.  Interest payable
on this note shall accrue at the annual rate of thirty percent
(30%) and be payable monthly commencing 30 days following the
advance of funds under the note and on the Maturity Date
(November 15, 2002) when the principal and remaining accrued but
unpaid interest shall be due and payable. The holder has the
right to convert up to fifty percent (50%) of any outstanding
unpaid principal and interest at any time the Company's common
stock is trading at a price of $1.00 or greater for a period of
ten (10) consecutive trading days.  The conversion price per
share shall be eighty percent (80%) of the average closing bid
prices for the common stock for the five (5) trading days prior
to but not including the Conversion Date.  On the Maturity Date,
the Holder shall have the right to convert any unpaid principal
portion of this note of $50,000 or greater amount, or any lesser
amount representing the full remaining outstanding and unpaid
principal portion, and the monthly interest for the Company's
common stock at the conversion price.

For no additional consideration, the Holder will receive one
warrant to purchase one share of common stock for each dollar of
principal or interest converted under this note.  The warrant
shall be exercisable for a period of one year from the date of
issue at the exercise price of eighty percent (80%) of the
average closing bid prices for the common stock for the five (5)
trading days prior to but not including the exercise date.

                              -17-

On June 22, 2001, the Company issued a $100,000 convertible
debenture together with a premium of $25,000. At any time after
the sixty first day and before the second anniversary date of the
issuance date, the holder may opt to convert the debenture to
common stock at a conversion price which is the lesser of (a)
110% of the closing bid price for Company's common stock on the
trading day immediately preceding the Issuance Date, or (b) 80%
of the lowest closing bid price for Company's common stock during
the five (5) trading days prior to and including the conversion
date.

At December 31, 2000 the Company had working capital of $751,848,
before the current portion $511,581 of the long-term debt of
$1,435,048, the loan from a related party of $1,111,319, and the
debt owing to the shareholders of AK Drilling and Stothert which
totaled $1,314,300. Including these items in working capital,
there was a working capital deficiency of $2,185,353 at the end
of the year.

As at September 30, 2001, $1,366,793 of the $1,391,793 long-term
debt, which includes $608,433 of the current portion thereof,
relates specifically to AK Drilling. These loans are generally
for and secured by equipment purchases for items such as drill
rigs and haul trucks and carry interest rates which range from
7.5% to 10%. The related party loan is from a company related to
the president of the Company and it is non-interest bearing,
unsecured and payable on demand. The debt owing to the
shareholders of AK Drilling and Stothert is due and the Company
is in discussions with the shareholders to arrange a form of
repayment for these amounts which it expects to complete in the
last quarter of 2001.  The debt owing to the shareholders of AK
Drilling and Stothert are non-secured.

As the long term debt interest is borne by AK Drilling, the
related party debt carries no interest, and the debt owing on the
acquisitions are being reorganized, the Company can meet its
current obligations to continue operations. Financing will have
to be raised from other sources to repay the debt to the related
party and the debt owing on the acquisitions. The sources that
the Company is currently working on are Company cash flows and
equity offerings. Although there are no assurances that either of
these will be adequate to eliminate the Company's working capital
deficiency, the Company believes that such financings can be
achieved.

The most significant assets of the Company are the drilling
equipment operated by AK Drilling with a net book value of
$3,078,347 (December 31, 2000 - $2,995,083), and the accounts
receivable of $513,515 (December 31, 2000 - $872,661) of which
Stothert accounts for $323,646 (December 31, 2000 - $471,278) and
AK Drilling accounts for $185,118 (December 31, 2000 - $389,969),
and other amounts account for $4,751 (December 31, 2000 -
$11,414). Goodwill of $1,016,016 was recorded on the two
acquisitions completed during 2000 and goodwill amortization of
$52,275 was recorded in the quarter (quarter ending September 30,
2000 - $49,283). The goodwill is being amortized over a five-year
period.

During 2000, the only equity financing which was completed was to
raise $160,000 from the sale of common shares at an average price
of $0.76 per share. The share price of the Company has declined
in the first quarter of 2001, as have most stock exchange
indexes, such that raising additional capital from the equity
markets is more difficult.

                              -18-

OUTLOOK

The Company believes its cash on hand and cash from operations
will be sufficient to maintain its present level of development
efforts over the next three months. However, the Company's
projections of future cash needs and cash flows may differ from
actual results. The Company plans to complete a private placement
of equity securities to fund possible future acquisitions and
working capital. The sale of additional equity securities or
convertible debt could result in additional dilution to the
stockholders. The Company can give no assurance that it will be
able to generate adequate funds from operations, that funds will
be available to the Company from debt or equity financings, or
that if available, the Company will be able to obtain such funds
on favorable terms and conditions. The Company currently has no
definitive arrangements with respect to additional financing.

Upon successful refinancing of the Company, the growth strategy
will continue with acquisitions in the industrial services
industry. The Company has identified acquisition targets and will
begin the process of completing such acquisitions later in 2001
and in 2002. The target acquisition companies will most likely be
similar to those acquired in 2000 in terms of size, industry
focus, and profitability.


                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by
or against the Company has been threatened.

ITEM 2.   CHANGES IN SECURITIES

On August 21, 2001, the Company issued 200,000 shares of its
common stock to an individual pursuant to Rule 506 of Regulation
D of the Act valued at $0.10 per share.

On August 23, 2001, the Company issued 50,000 shares of its
common stock to a non-U.S. individual pursuant to an exemption
from registration contained in Regulation S and Rule 144 of the
Securities Act of 1933, as amended (the "Act") valued at $0.10
per share.

On August 24, 2001, the Company issued 100,000 shares of its
common stock to a non-U.S. individual pursuant to an exemption
from registration contained in Regulation S and Rule 144 of the
Securities Act of 1933, as amended (the "Act") valued at $0.10
per share.

On September 5, 2001, the Company issued 100,000 shares of its
common stock to an individual pursuant to Rule 506 of Regulation
D of the Act valued at $0.10 per share.

On September 7, 2001, the Company issued 50,000 shares of its
common stock to an individual pursuant to Rule 506 of Regulation
D of the Act valued at $0.10 per share.

On July 9, 2001, the Company issued 120,000 shares of its common
stock at $0.21 per share to pay for services provided by various
outside contractors.

                              -19-


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

(a) Exhibits

  Exhibit No.  Description
  ----------   -----------

     2.1       Agreement and Plan of Reorganization between the
               Registrant and Passant Acquisition Corp. dated
               August 16, 2001 (incorporated by reference to
               Exhibit 10.1 to the Registrant's Current Report
               on 8-K filed with the Securities and Exchange
               Commission on August 21, 2000).

     3.1       Articles of Incorporation (incorporated by
               reference to Exhibit 3.1 to the Registrant's Form
               10-KSB filed with the Securities and Exchange
               Commission on April 17, 2001).

     3.2       Articles of Amendment to Articles of
               Incorporation (incorporated by reference to
               Exhibit 3.2 to the Registrant's Form 10-KSB filed
               with the Securities and Exchange Commission on
               April 17, 2001).

     3.3       By-laws of the Registrant (incorporated by
               reference to Exhibit 3.3 to the Registrant's Form
               10-KSB filed with the Securities and Exchange
               Commission on April 17, 2001).

(b) Reports on Form 8-K

     None

                           SIGNATURES

Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the Registrant has duly caused this
registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.



                           Global Industrial Services, Inc.



                           By: /s/ Terry Kirby
                              Terry Kirby,
                              President/Secretary/Treasurer


                           Date: November 14, 2001



                              -20-