**UNITED STATES						SECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 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, 2007****[  ]** Transition Report Under Section 13 Or 15(D) Of The Securities Exchange Act Of 1934				For the transition period from _____ to _____**COMMISSION FILE NUMBER    333-141690****KABE EXPLORATION INC.**(Name of small business issuer in its charter)**                NEVADA      ****                                                                                   39-2052145**(State or other jurisdiction of incorporation or organization)                             (I.R.S. Employer Identification No.)**3030 East 6th Ave, Vancouver, BC                                                V5M 1S3**(Address of principal executive offices)                                               (Zip Code)**604-266-1675**Issuer’s telephone number

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  **Yes [   ]  No  [x]**Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   **Yes [x]  No  [   ]**State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.**3,387,500 shares of common stock as of August 10, 2007**Transitional Small Business Disclosure Format (check one): **Yes [  ]  No [x]**

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**PART I**

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**ITEM 1.       Financial Statements**The following consolidated interim unaudited financial statements of Kabe Exploration Inc. (the “Company”) for the three month period ended June 30, 2007 are included with this Quarterly Report on Form 10-QSB:

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|            | (a)        | Consolidated Balance Sheets as of June 30, 2007 and December 31, 2006;                                                                                                                          |
|--------------------------------------------------------------|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |                                               |                                                                                                                                                                                                 |
|                                                              | (b)                                           | Consolidated Statements of Operations for three months ended June 30, 2007, the six months ended June 30, 2007 and for the period of Inception from January 1, 2006, through June 30, 2007;     |
|                                                    |                                               |                                                                                                                                                                                                 |
|                                                              | (c)                                           | Consolidated Statements of Cash Flows for the three months ended June 30, 2007, the six months ended June 30, 2007 and for the period of Inception from January 1, 2006, through June 30, 2007; |
|                                                    |                                               |                                                                                                                                                                                                 |
|                                                              | (d)                                           | Condensed Notes to Financial Statements.                                                                                                                                                        |

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| KABE EXPLORATION, INC.                |
|---------------------------------------|
| (A Development Stage Company)         |
| Balance Sheet                         |
|                             |  |  |
|                                       |  |  |  |  |  June 30,  |  | December 31, |
|                                       |  |  |  |  | 2007 |  | 2006 |
|                                       |  |  |  |  |  |  |  |
|                                       |  |  |  |  | Unaudited |  |  |
|                        |  |  |  |  |  |  |  |
| ASSETS                                |  |  |  |  |  |
|                                       | Current Assets |  |  |  |
|                                       |  | Cash |  | $            14,788 |  | $            45,024 |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       |  |  | Total Current Assets | 14,788 |  | 45,024 |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       | Non Current Assets |  |  |  |
|                                       |  | Mining Leases |                   5,000 |  |              5,000 |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |   |  |   |
|                                       |  |  | Total Non Current Assets |                   5,000 |  |              5,000 |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       |  |  |  | Total Assets | $            19,788 |  | $            50,024 |
|                                       |  |  |  |  | ============ |  | ============ |
|                             |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
| LIABILITIES AND SHAREHOLDERS' DEFICIT |  |  |  |
|                                       | Current Liabilities |  $                      - |  |  $                      - |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       |  |  |  | Total Liabilities |  $                      - |  |  $                      - |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       | Shareholders' Equity (Deficit) |  |  |  |
|                                       |  | Common Stock, $0.001 par value; authorized 75,000,000 |  |  |  |
|                                       |  |  | shares issued and outstanding 3,387,500 shares | $               3,388 |  | $               3,388 |
|                                       |  | Additional Paid-In Capital |                 46,862 |  |           46,862 |
|                                       |  | Deficit accumulated during the development stage |       (30,462) |  |          (226) |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       |  |  | Total Shareholders' Equity |  $             19,788 |  | $             50,024 |
|                                       |  |  |  |  |  |  |  |
|                             |  |  |  |  |  |  |  |
|                                       |  |  | Total Liabilities and Shareholders' Equity |  $             19,788 |  | $             50,024 |
|                                       |  |  |  |  | ============ |  | ============ |

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| KABE EXPLORATION, INC.               |
|--------------------------------------|
| (A Development Stage Company)        |
| Statement of Operations              |
| Unaudited                            |
|                            |  |  |  |  |  |  |  |  |
|                                      |  |  |  |  |  |  |  | For the Period |
|                                      |  |  |  |  |  |  |  | of Inception |
|                                      |  |  |  | For the  |  | For the     | from January 1, |
|                                      |  |  |  | Three Months Ended |  | Six Months Ended |  | 2006, through |
|                                      |  |  |  | June 30, 2007 |  | June 30, 2007 |  | June 30, 2007 |
|                                      |  |  |  |  |  |  |  |  |
|                            |  |  |  |  |  |  |  |  |
|                            |  |  |  |  |  |  |  |  |
| Revenue                              |  | $                            - |  | $                         - |  | $                      - |
|                            |  |  |  |  |  |  |  |  |
| Cost of Sales                        |                             - |  |                           - |  |                        - |
|                                      |  |  |  |  |  |  |  |  |
|                            |  |  |  |  |  |  |  |  |
| Operating Income                     |  |  |  |  |  |
|                            |  |  |  |  |  |  |  |  |
| General and Administrative Expenses: |  |  |  |  |
|                                      | Mineral Leases |  |  |                     6,713 |  |                6,713 |
|                                      | Professional Fees |                    16,828 |  |                   23,328 |  |                23,328 |
|                                      | Other Administrative Expenses |                           22 |  |                       195 |  |                    421 |
|                                      |  |  |  |  |  |  |  |  |
|                                      |  | Total General and Administrative |  |  |  |  |
|                                      |  |   Expenses |                    16,850 |  |                  30,236 |  |             30,462 |
|                                      |  |  |  |  |  |  |  |  |
|                            |  |  |  |  |  |  |  |  |
| Net Loss                             |  |  $                (16,850) |  |  $             (30,236) |  |  $          (30,462) |
|                                      |  |  |  | ================ |  | ================ |  | =============== |
|                                      |  |  |  |  |  |  |  |  |
| Loss Per Common Share:               |  |  |  |  |  |
|                                      | Basic and Diluted | $                  (0.005) |  | $               (0.009) |  |  |
|                                      |  |  |  | ================ |  | ================ |  |  |
|                                      |  |  |  |  |  |  |  |  |
|                                      |  |  |  |  |  |  |  |  |
| Weighted Average Shares Outstanding, |  |  |  |  |  |
|                                      | Basic and Diluted: |              3,387,500 |  | $           3,387,500 |  |  |
|                                      |  |  |  | ================ |  | ================ |  |  |

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| KABE EXPLORATION, INC.                            |
|---------------------------------------------------|
| (A Development Stage Company)                     |
| Statement of Cash Flows                           |
| Unaudited                                         |
|                                         |  |  |  |  |  |  |  |  |
|                                                   |  |  |  |  |  |  |  | For the Period |
|                                                   |  |  |  |  |  |  |  | of Inception |
|                                              |  |  |  | For the  | For the     | from January 1, |
|                                                   |  |  |  | Three Months Ended | Six Months Ended    | 2006, through |
|                                                   |  |  |  | June 30, 2007 |  | June 30, 2007 |  | June 30, 2007 |
|                                                   |  |  |  |  |  |  |  |  |
|                                         |  |  |  |  |  |  |  |  |
|  Cash flows from operating activities:  |  |  |  |  |  |
|                                                   |  Net loss  | $                (16,850) |  |  $             (30,236) |  |  $          (30,462) |
|                                                   |  |  |  |  |  |  |  |  |
|                                                   |  Adjustments to reconcile net loss to  |  |  |  |  |  |
|                                                   |  net cash used by operating activities:  |  |  |  |  |  |
|                                                   |  Change in operating assets and liabilities:  |  |  |  |  |  |
|                                                   |  |  Increase in accounts payable and   |  |  |  |  |  |
|                                                   |  |  accrued liabilities  |  |  |  |  |  |
|                                                   |  |  |  |  |  |  |  |  |
|                                                   |  |  Net cash (used by) operating   |  |  |  |  |  |
|                                                   |  |  | activities |                 (16,850) |  |                (30,236) |  |             (30,462) |
|                                                   |  |  |  |  |  |  |  |  |
|                                         |  |  |  |  |  |  |  |  |
|  Cash flows from investing activities   |  |  |  |  |  |
|                                                   |  Purchase of mining leases  |   |  |   |  |               (5,000) |
|                                                   |  |  |  |  |  |  |  |  |
|                                                   |  |  Net cash (used by) investing  |  |  |  |  |  |
|                                                   |  |  | activities |   |  |   |  |               (5,000) |
|                                                   |  |  |  |  |  |  |  |  |
|  Cash flows from financing activities:  |  |  |  |  |  |
|                                                   |  Common stock issued for cash  |  |  |  |  |               50,250 |
|                                                   |  Due to related parties  |   |  |   |  |   |
|                                                   |  |  |  |  |  |  |  |  |
|                                                   |  |  Net cash (used) provided by   |  |  |  |  |  |
|                                                   |  |  |  financiang activities  |                            - |  |   |  |        50,250 |
|                                                   |  |  |  |  |  |  |  |  |
|                                         |  |  |  |  |  |  |  |  |
|  Net increase (decrease) in cash        |                 (16,850) |  |                (30,236) |  |              14,788 |
|                                         |  |  |  |  |  |  |  |  |
|  Cash, beginning of the period          |                        31,638 |  |                      45,024 |  |    -  |
|                                                   |  |  |  |  |  |  |  |  |
|                                         |  |  |  |  |  |  |  |  |
|  Cash, end of the period                |  $                  14,788 |  |  $               14,788 |  |  $            14,788 |
|                                                   |  |  |  | =============== |  | =============== |  | =============== |
|                                         |  |  |  |  |  |  |  |  |
|                                         |  |  |  |  |  |  |  |  |
|  Supplemental cash flow disclosure:     |  |  |  |  |  |
|                                                   |  Interest paid  |  $                            - |  |  |  |  $                     - |
|                                                   |  |  |  | =============== |  |  |  | =============== |
|                                                   |  Taxes paid  |  $                            - |  |  |  |  $                     - |
|                                                   |  |  |  | =============== |  |  |  | =============== |

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**1.       Organization**

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Kabe Exploration, Inc. (the “Company”) was incorporated under the laws of the State of Nevada December 16, 2005.  The company was formed for mineral exploration in the United States.  The Company entered into a Mineral Lease Agreement March 1, 2006 for a mining claim in Storey County, Nevada.

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**2.       Summary of Significant Accounting Policies**

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Basis of PresentationThe financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period.  Actual results could differ materially from those estimates. Significant estimates made by management are, among others, realizability of long-lived assets, deferred taxes and stock option valuation.				The financial statements have, in management’s opinion, been properly prepared within the reasonable limits of materiality and within the framework of the significant accounting.Income TaxesThe Company utilizes SFAS No. 109, “Accounting for Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Under this method, deferred tax assets and liabilities are determined based 

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on the difference between the tax basis of assets and liabilities and their financial reporting amounts based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company generated a deferred tax credit through net operating loss carryforward.  However, a valuation allowance of 100% has been established, as the realization of the deferred tax credits is not reasonably certain, based on going concern considerations outlined as follows.Going ConcernThe Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.   The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease development of operations.				The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish its plans to exploit or lease its mining claim described in the initial paragraph, or engage a working interest partner, in order to   eventually secure other sources of financing and attain profitable operations.  The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classifications or liabilities or other adjustments that might be necessary should the Company be unable to continue as a going concern.Development-Stage CompanyThe Company is considered a development-stage company, with limited operating revenues during the periods presented, as defined by Statement of Financial Accounting Standards (“SFAS”) No. 7.  SFAS.  No. 7 requires companies to report their operations, shareholders deficit and cash flows since inception through the date that revenues are generated from management’s intended operations, among other things.  Management has defined inception as January 1, 2006. Since inception, the Company has incurred an operating loss of $30,236. The Company’s working capital has been generated through the sales of common stock.  Management has provided financial data since January 1, 2006, “Inception” in the financial statements, as a means to provide readers of the Company’s financial information to make informed investment decisions.

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Basic and Diluted Net Loss Per ShareNet loss per share is calculated in accordance with SFAS 128, Earnings Per Share for the period presented.  Basic net loss per share is based upon the weighted average number of common shares outstanding.  Diluted net loss per share is based on the assumption that all dilative convertible shares and stock options were converted or exercised.  Dilution is computed by applying the treasury stock method.  Under this method, options and warrants are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby we used to purchase common stock at the average market price during the period.				The Company has no potentially dilutive securities outstanding as of June 30, 2007.				The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the three months ended June 30, 2007:				     Numerator:				     Basic and diluted net loss per share:				     Net Loss                                                          $ (30,236)				     Denominator     Basic and diluted weighted average				       number of shares outstanding                          3,387,500				     Basic and Diluted Net Loss Per Share              $    (0.009)

**3.       Capital Structure**

> 
During the period from inception through June 30, 2007, the Company entered into the following equity transactions:
     January 16, 2006:       Sold 1,500,000 shares of common stock at $.01 per share for $15,000.  August 23, 2006:Sold 250,000 shares of common stock at $.01 per share for $5,000.  September 1, 2006:Sold 575,000 shares of common stock at $0.02 per share, realizing $11,500  October 31, 2006:Sold 800,000 shares of common stock at $0.02 per share, realizing 16,000

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>      November 30, 2006:       Sold 262,500 shares of common stock at $0.02 per share, realizing $5,250			As of June 30, 2007, the Company has authorized 75,000,000 of $0.001 par common stock, of which 3,875,500 shares were issued and outstanding.

**4.       Commitments**

> 
On March 1, 2006 the Company entered into a lease agreement with the owner of a mining claim situated in Storey County, Nevada in terrain noted for gold and silver mining.  The agreement requires a royalty of 3 1⁄2 % of net smelter returns, as defined in the agreement, paid quarterly, and lease payments according to the following schedule:

On or before the anniversary of the execution of the lease:						                                 Due1st year             March 1, 2007                         $   5,000						2nd year            March 1, 2008                         $ 25,000						3rd year             March 1, 2008                         $ 25,000						4th year             March 1, 2008                         $ 25,000						5th                    March 1, 2008                         $ 75,000						Thereafter         March 1, annually                     $100,000  (inflation adjusted)

The agreement is for a period of twenty years (”initial term”) and renews for an additional twenty-year term.  The royalty is 3 1⁄2 %.  A $5 million buydown of the royalty to 2 1⁄2 % is available in the 60 day period after the completion of a bankable feasibility study or ore production.  The buydown would leave a perpetual 1% royalty. The agreement requires the Company to pay Federal, State and County maintenance payments, tax payments and filing fees, and to provide various quarterly and annual reports.

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**5.       Litigation**

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There are no significant legal proceedings against the Company with respect to matters arising in the ordinary course of business.

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**FORWARD LOOKING STATEMENTS**

Certain matters discussed or referenced in this report, including expectation of increased revenues and continuing losses, our financing requirements, our capital expenditures and our prospects for the development of our grocery distribution business, are forward-looking statements. Other forward-looking statements may be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “anticipate”, “intend”, “continue”, or similar terms, variations of such terms or the negative of such terms. All forward-looking statements speak only as of the date of this report, and we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this report to reflect any change in our expectations with regard to such statements or any change in events, conditions or circumstances on which any such statement is based. Although such 

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| (a)      | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the registrant; |
|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)      | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the registrant are being made only in accordance with authorizations of management and directors of the registrant; and |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |
| (c)      | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the registrant's assets that could have a material effect on the financial statements.                                                                                                                                   |

**PART II**

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**Item 1.       Legal Proceedings**We are not party to any legal proceedings.**Item 2.       Unregistered Sales of Equity Securities**We did not issue any securities without registration pursuant to the Securities Act of 1933 during the three months ended June 30, 2007.**Item 3.       Defaults Upon Senior Securities**None**Item 4.       Submission of Matters to a Vote of Securities Holders**No matters were submitted to our security holders for a vote during the second quarter of our fiscal year ending June 30, 2007.**Item 5.       Other Information**There were no material changes to the procedures by which security holders may recommend nominees to the registrant's board of directors.**Item 6.       Exhibits and Reports on Form 8K****EXHIBITS AND REPORTS ON FORM 8-K.****(a)  ****Exhibits and Index of Exhibits**

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| **Exhibit							Number** | **Description of Exhibit**                                                                                                                                                    |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                     | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1                     | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.				Signatures                                        Title                                                 Date				                                                        President, Chief Executive				                                                       Officer, Chief Financial				                                                       Officer, Chief Accounting				                                                       Officer and Chairman of/s/ Antony Claydon                          the Board of Directors                      August 10, 2007				Antony Claydon/s/ Rory Moss                                   Director                                           August 10, 2007				Rory Moss

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