----

----

| x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

| Delaware                                                                |   | 333-143215            |   |                                   |
|-------------------------------------------------------------------------|--------|----------------------------|--------|----------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (Commission      File No.) |   | (IRS      Employee Identification No.) |

----

| Item      1. | Financial      Statements                                              |
|--------------|------------------------------------------------------------------------|
| Item      2. | Management’s      Discussion and Analysis of Financial Condition |
| Item      3  | Quantitative      and Qualitative Disclosures About Market Risk        |
| Item      4. | Control      and Procedures                                            |

|  Item      1  | Legal      Proceedings                                           |
|--------------------|------------------------------------------------------------------|
|  Item      2. | Unregistered      Sales of Equity Securities and Use of Proceeds |
|  Item      3. | Defaults      Upon Senior Securities                             |
|  Item      4. | Submission      of Matters to a Vote of Security Holders         |
|  Item      5. | Other      Information                                           |
|  Item      6. | Exhibits      and Reports on Form 8-K                            |

----

----

| BALANCE      SHEET                                                                                                                      | F-2    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| STATEMENT      OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | F-3    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| STATEMENT      OF STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | F-4    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| STATEMENT      OF CASH FLOWS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | F-5    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| FINANCIAL      STATEMENT FOOTNOTES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | F-6    |

----

| SUSTUT      EXPLORATION, INC.                                                                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (an      exploration stage company)                                                                                                      |   |
| BALANCE      SHEET                                                                                                                       |   |
| As      of March 31, 2008                                                                                                                |   |
|                                                                                                                                     |   |   |   |   |   |   |
| ASSETS                                                                                                                                   |   |
|                                                                                                                                     |   |   |   |   |   |   |
| CURRENT      ASSETS                                                                                                                      |   | 3/31/2008 |   |   | 3/31/2007 |   |
|                                                                                                                                     |   |   |   |   |   |   |
|  Cash                                                                                                                               |   | $ | 9,404 |   |   | $ | 22,570 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            Total      Current Assets                                              |   |   | 9,404 |   |   |   | 22,570 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            TOTAL      ASSETS                                                      |   | $ | 9,404 |   |   | $ | 22,570 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                                |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|  Accrued      Expenses                                                                                                              |   | $ | 5,250 |   |   | $ | 3,000 |   |
|  Payable agreement for claim      rights                                                                                            |   |   | 20,000 |   |   |   | 0 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            Total      Current Liabilities                                         |   |   | 25,250 |   |   |   | 3,000 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| LONG-TERM      LIABILITIES                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|  Payable agreement for claim      rights                                                                                            |   |   | - |   |   |   | 20,000 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            TOTAL      LIABILITIES                                                 |   |   | 25,250 |   |   |   | 23,000 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|  Common Stock, $.001 par      value                                                                                                 |   |   |   |   |   |   |   |   |
|               Authorized:      200,000,000                         |   |   |   |   |   |   |   |   |
|               Issued:      16,059,000 and 16,000,000, respectively |   |   | 16,059 |   |   |   | 16,000 |   |
|  Additional paid in      capital                                                                                                    |   |   | 71,641 |   |   |   | 54,000 |   |
|  Accumulated deficit during      development stage                                                                                  |   |   | (103,546 | ) |   |   | (87,607 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            Total      Stockholders' Equity                                        |   |   | (15,846 | ) |   |   | (17,607 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|            TOTAL      LIABILITIES AND EQUITY                                      |   | $ | 9,404 |   |   | $ | 4,893 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |

----

| SUSTUT      EXPLORATION, INC.                                |   |
|--------------------------------------------------------------|--------|
| (an      exploration stage company)                          |   |
| STATEMENT      OF OPERATIONS                                 |   |
| For      the three months ended March 31, 2008 and 2007, and |   |
| From      inception (April 11, 2006) through March 31, 2008  |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   | FROM |   |
|                                                         |   | 03/31/08 |   |   | 03/31/07 |   |   | INCEPTION |   |
|                                                         |   |   |   |   |   |   |   |   |   |
| REVENUE                                                      |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| COST      OF SERVICES                                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT OR (LOSS)                                  |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| GENERAL      AND ADMINISTRATIVE EXPENSES                     |   |   | 753 |   |   |   | 535 |   |   |   | 28,546 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| GENERAL      EXPLORATION                                     |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      INCOME                                        |   |   | (753 | ) |   |   | (535 | ) |   |   | (103,546 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| ACCUMULATED      DEFICIT, BEGINNING                          |   |   | (102,793 | ) |   |   | (87,607 | ) |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| ACCUMULATED      DEFICIT, ENDING                             |   | $ | (103,546 | ) |   | $ | (88,142 | ) |   | $ | (103,546 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      (loss) per share, basic                        |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares                |   |   | 16,059,000 |   |   |   | 16,025,133 |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SUSTUT      EXPLORATION, INC.                       |   |
|-----------------------------------------------------|--------|
| (an      exploration stage company)                 |   |
| STATEMENT      OF STOCKHOLDERS' EQUITY              |   |
| As      of March 31, 2008                           |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   | ADDITIONAL |   |   |   |   |   |   |   |
|                                                |   | COMMON |   |   | PAR |   |   | PAID      IN |   |   | ACCUM. |   |   | TOTAL |   |
|                                                |   | STOCK |   |   | VALUE |   |   | CAPITAL |   |   | DEFICIT |   |   | EQUITY |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued for compensation           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   April      11, 2006 at $0.001 per share |   |   | 10,000,000 |   |   | $ | 10,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 10,000 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued for cash                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   April      16, 2006 at $0.01            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   per      share on private placement     |   |   | 6,000,000 |   |   |   | 6,000 |   |   |   | 54,000 |   |   |   | - |   |   |   | 60,000 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (87,607 | ) |   |   | (87,607 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2006                     |   |   | 16,000,000 |   |   | $ | 16,000 |   |   | $ | 54,000 |   |   | $ | (87,607 | ) |   | $ | (17,607 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued for cash                   |   |   | 59,000 |   |   |   | 59 |   |   |   | 17,641 |   |   |   |   |   |   |   | 17,700 |   |
|   February      21, 2007 at $0.30         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   per      share on private placement     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation      of common stock                   |   |   | (1,000 | ) |   |   | (1 | ) |   |   | (299 | ) |   |   |   |   |   |   | (300 | ) |
|   issued      for cash March 21, 2007     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   at      $.30 per share                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Stock issued for cash                   |   |   | 1,000 |   |   |   | 1 |   |   |   | 299 |   |   |   |   |   |   |   | 300 |   |
|   July      4, 2007 at $0.30 per          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   share      on private placement         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (15,186 | ) |   |   | (15,186 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance,      December 31, 2007               |   |   | 16,059,000 |   |   | $ | 16,059 |   |   | $ | 71,641 |   |   | $ | (102,793 | ) |   | $ | (15,093 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (753 | ) |   |   | (753 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance,      March 31, 2008                  |   |   | 16,059,000 |   |   | $ | 16,059 |   |   | $ | 71,641 |   |   | $ | (103,546 | ) |   | $ | (15,846 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| SUSTUT      EXPLORATION, INC.                                                                   |   |
|-------------------------------------------------------------------------------------------------|--------|
| (an      exploration stage company)                                                             |   |
| STATEMENTS      OF CASH FLOWS                                                                   |   |
| For      the three months ended March 31, 2008 and 2007, and                               |   |
| From      inception (April 11, 2006) through March 31, 2008                                     |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   | FROM |   |
| CASH FLOWS FROM      OPERATING ACTIVITIES                                                       |   | 03/31/08 |   |   | 03/31/07 |   |   | INCEPTION |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |
|     Net      income (loss)                                                  |   | $ | (753 | ) |   | $ | (535 | ) |   | $ | (103,546 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Adjustments to      reconcile net income to net cash                    |   |   |   |   |   |   |   |   |   |   |   |   |
|       provided      by  (used in) operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Stock      issued in the form of compensation                           |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|     Increase      (Decrease) in Accrued Expenses                            |   |   | - |   |   |   | 500 |   |   |   | 5,250 |   |
|     ncrease      (Decrease) in claims payable                               |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|         Total      adjustments to net income            |   |   | - |   |   |   | 500 |   |   |   | 35,250 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      cash provided by (used in) operating activities                |   |   | (753 | ) |   |   | (35 | ) |   |   | (68,296 | ) |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM      INVESTING ACTIVITIES                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     None                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      cash flows provided by (used in) investing activities          |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM      FINANCING ACTIVITIES                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Proceeds from      stock issuance                                       |   |   | - |   |   |   | 17,400 |   |   |   | 77,700 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      cash provided by (used in) financing activities                |   |   | - |   |   |   | 17,400 |   |   |   | 77,700 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      RECONCILIATION                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      increase (decrease) in cash                                    |   |   | (753 | ) |   |   | 17,365 |   |   |   | 9,404 |   |
|     Cash -      beginning balance                                           |   |   | 10,157 |   |   |   | 4,893 |   |   |   | - |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH BALANCE END OF      PERIOD                                                                 |   | $ | 9,404 |   |   | $ | 22,258 |   |   | $ | 9,404 |   |
|                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

| Deferred      tax assets:       |   |   |    |
|---------------------------------|--------|--------|---------|
| Federal      net operating loss |   | $      | 15,532  |   |
| State      net operating loss   |   |   | 5,177   |   |
|                            |   |   |    |   |
| Total      deferred tax assets  |   |   | 20,709  |   |
| Less      valuation allowance   |   |   | (20,709 | ) |
|                            |   |   |    |   |
|                            |   | $      | --      |   |

----

|                                   |   | 2007   | 2006   |
|----------------------------------------|--------|--------|--------|
|                                   |   |   |   |   |   |
| Federal      income tax rate           |   |   | (15.0  | %) | (15.0 | %) |
| State      tax, net of federal benefit |   |   | (5.0   | %) | (5.0 | %) |
| Increase      in valuation allowance   |   |   | 20.0   | % | 20.0 | % |
|                                   |   |   |   |   |   |   |
| Effective      income tax rate         |   |   | 0.0    | % | 0.0 | % |

----

----

| Item      Description                                  |   | Cost      Estimate     |   |
|--------------------------------------------------------|--------|------------------------|--------|
| Helicopter      support (6 hrs x $1,000/hr)            |   | $                      | 6,000  |   |
| Labor      (2 tech. x 7 days @ $350/day)               |   | $                      | 4,900  |   |
| Sample      Analyses (100 soil + 50 rock @ $30/sample) |   | $                      | 4,500  |   |
| Room      and board                                    |   | $                      | 2,000  |   |
| Mob./Demob.      + truck + fuel                        |   | $                      | 3,000  |   |
| Report      and drafting                               |   | $                      | 5,000  |   |
| 10%      contingency                                   |   | $                      | 2,500  |   |
| Total                                                  |   | $                      | 27,900 |   |
|                                                   |   | ROUNDED      = $30,000 |   |

----

----

----

----

|                           | SUSTUT      EXPLORATION, INC. |
|--------------------------------|-------------------------------|
|                           |                          |
| Date:      April 7, 2008  | By:                 | /s/      Terry Hughes |
|                           |                          | Terry      Hughes |
|                           |                          | President,      Chief Executive Officer and Chief Financial  Officer  |