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| Large accelerated filer o | Accelerated filer o         |
|---------------------------|-----------------------------|
| Non-accelerated filer o   | Smaller reporting company x |

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|                    |                                                                                                      | Page   |
|-------------------------|-----------------------------------------------------------------------------------------------------------|--------|
| PART I                  | FINANCIAL INFORMATION                                                       | 3      |
| ITEM 1.                 | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                     | 3      |
|                    | CONSOLIDATED BALANCE SHEETS                                       | 3      |
|                    | CONSOLIDATED STATEMENTS OF OPERATIONS                             | 4      |
|                    | CONSOLIDATED STATEMENTS OF CASH FLOWS                                  | 5      |
|                    | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                              | 6      |
| ITEM 2.                 | MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION         | 8      |
| ITEM 3.                 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                  | 10     |
| ITEM 4.                 | CONTROLS AND PROCEDURES                                                                         | 10     |
|                    |                                                                                                      |   |
| PART II                 | OTHER INFORMATION                                                           | 11     |
| ITEM 1.                 | LEGAL PROCEEDINGS                                                      | 11     |
| ITEM 1A.                | RISK FACTORS                                                           | 11     |
| ITEM 2.                 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                 | 11     |
| ITEM 3.                 | DEFAULTS UPON SENIOR SECURITIES                                        | 11     |
| ITEM 4.                 | (REMOVED AND RESERVED)                                                                | 11     |
| ITEM 5.                 | OTHER INFORMATION                                                           | 11     |
| ITEM 6.                 | EXHIBITS                                                                                                  | 12     |
|                    |                                                                                                      |   |
| SIGNATURES    | 13                                                                                                        |

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|                                                                                                                                                                                                             |   | June 30,2011 |    |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                                                           |   |         |    |   |                   |   |
| Current assets:                                                                                                                                                                                                  |   |         |    |   |                   |   |
| Cash                                                                                                                                                                                                             |   | $            | 15      |   |                   | $      | – |   |
| Total current assets                                                                                                                                                                                             |   |         | 15      |   |                   |   | – |   |
| Property and equipment, net                                                                                                                                                                                      |   |         | 46      |   |                   |   | 59 |   |
| Mineral properties                                                                                                                                                                                               |   |         | – |   |                   |   | – |   |
| Other assets                                                                                                                                                                                                     |   |         | 1       |   |                   |   | 1 |   |
| Total assets                                                                                                                                                                                                     |   | $            | 62      |   |                   | $      | 60 |   |
|                                                                                                                                                                                                        |   |         |    |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                      |   |         |    |   |                   |   |   |   |
| Current liabilities:                                                                                                                                                                                             |   |         |    |   |                   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                            |   | $            | 35      |   |                   | $      | 34 |   |
| Loans from shareholder                                                                                                                                                                                           |   |         | 59      |   |                   |   | 130 |   |
| Total liabilities                                                                                                                                                                                                |   |         | 94      |   |                   |   | 164 |   |
|                                                                                                                                                                                                        |   |         |    |   |                   |   |   |   |
| Commitments                                                                                                                                                                                                      |   |         |    |   |                   |   |   |   |
|                                                                                                                                                                                                             |   |         |    |   |                   |   |   |   |
| Stockholders’ Deficit:                                                                                                                                                                                     |   |         |    |   |                   |   |   |   |
| Common stock, $0.001 par value, 1,500,000,000 shares authorized, 817,302,228 shares issued and 224,847,500 shares outstanding at June 30, 2011 and 56,847,500 shares issued and outstanding at December 31, 2010 |   |         | 225     |   |                   |   | 57 |   |
| Additional paid-in capital                                                                                                                                                                                       |   |         | 3,052   |   |                   |   | 1,206 |   |
| Deficit accumulated during the exploration stage                                                                                                                                                                 |   |         | (3,309  | )      |                   |   | (1,367 | ) |
| Total stockholders’ deficit                                                                                                                                                                                |   |         | (32     | )      |                   |   | (104 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                |   | $            | 62      |   |                   | $      | 60 |   |

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|                                                             |   | Three Months Ended June 30, |        |   | Six Months Ended June 30, |   |       | Inception through June 30, |   |
|------------------------------------------------------------------|--------|-----------------------------|-------------|--------|---------------------------|--------|------------|---------------------------------|--------|
|                                                             |   | 2011                        |        |   | 2010                      |   |       | 2011                            |   |   | 2010 |   |   | 2011 |   |
| Expenses:                                                        |   |                        |        |   |                      |   |       |                            |   |   |   |   |   |   |   |
| General and administrative                                       |   | $                           | 726         |   |                      | $      | 21         |                            |   | $ | 751 |   |   | $ | 36 |   |   | $ | 1,155 |   |
| Compensation expense to related party for extinguishment of debt |   |                        | 161         |   |                      |   | –    |                            |   |   | 1,177 |   |   |   | – |   |   |   | 1,177 |   |
| Depreciation                                                     |   |                        | 7           |   |                      |   | 7          |                            |   |   | 14 |   |   |   | 14 |   |   |   | 119 |   |
| Exploration                                                      |   |                        | –     |   |                      |   | 2          |                            |   |   | – |   |   |   | 8 |   |   |   | 858 |   |
| Total operating expenses                                         |   |                        | 894         |   |                      |   | 30         |                            |   |   | 1,942 |   |   |   | 58 |   |   |   | 3,309 |   |
|                                                        |   |                        |        |   |                      |   |       |                            |   |   |   |   |   |   |   |   |   |   | – |   |
| Net loss                                                         |   | $                           | (894        | )      |                      | $      | (30        | )                               |   | $ | (1,942 | ) |   | $ | (58 | ) |   | $ | (3,309 | ) |
|                                                        |   |                        |        |   |                      |   |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   |                        |        |   |                      |   |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share - basic and diluted                           |   | $                           | (0.00       | )      |                      | $      | (0.00      | )                               |   | $ | (0.01 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                             |   |                        |        |   |                      |   |       |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - basic and diluted          |   |                        | 215,413,739 |   |                      |   | 56,847,500 |                            |   |   | 192,897,260 |   |   |   | 56,847,500 |   |   |   |   |   |

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|                                                          |   | Six months ended June 30, 2011 |    |   | Six months ended June 30, 2010 |   |    | Inception through June 30, 2011 |   |
|-------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|---------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                    |   |                                |    |   |                                |   |    |                            |   |
| Net loss                                                                |   | $                                   | (1,942  | )      |                                | $      | (58     | )                               |   | $ | (3,309 | ) |
| Adjustments to reconcile net loss to cash used by operating activities: |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Impairment of mineral properties                                        |   |                                |    |   |                                |   |    |                            |   |   | 209 |   |
| Stock issued for services                                               |   |                                | 720     |   |                                |   | – |                            |   |   | 794 |   |
| Compensation expense to related party for extinguishment of debt        |   |                                | 1,177   |   |                                |   | – |                            |   |   | 1,177 |   |
| Depreciation                                                            |   |                                | 13      |   |                                |   | 14      |                            |   |   | 118 |   |
| Changes in operating assets and liabilities:                            |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Prepaid expenses                                                        |   |                                | – |   |                                |   | – |                            |   |   | – |   |
| Accounts payable and accrued expenses                                   |   |                                | 1       |   |                                |   | 23      |                            |   |   | 35 |   |
| CASH FLOWS USED IN OPERATING ACTIVITIES                                 |   |                                | (31     | )      |                                |   | (21     | )                               |   |   | (976 | ) |
|                                                          |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                    |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Purchase of mineral properties                                          |   |                                | – |   |                                |   | – |                            |   |   | (209 | ) |
| Purchase of property and equipment                                      |   |                                | – |   |                                |   | – |                            |   |   | (165 | ) |
| Change in other assets                                                  |   |                                | – |   |                                |   | – |                            |   |   | 1 |   |
| Cash acquired from share exchange transaction                           |   |                                | – |   |                                |   | – |                            |   |   | 2 |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES                                 |   |                                | – |   |                                |   | – |                            |   |   | (371 | ) |
|                                                          |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                    |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Proceeds from sale of common stock                                      |   |                                | – |   |                                |   | – |                            |   |   | 5 |   |
| Loans from shareholders                                                 |   |                                | 46      |   |                                |   | 13      |                            |   |   | 151 |   |
| Contributed capital                                                     |   |                                | – |   |                                |   | 8       |                            |   |   | 1,206 |   |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES              |   |                                | 46      |   |                                |   | 21      |                            |   |   | 1,352 |   |
|                                                          |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| NET INCREASE IN CASH                                                    |   |                                | 15      |   |                                |   | – |                            |   |   | 15 |   |
| Cash, beginning of period                                               |   |                                | – |   |                                |   | – |                            |   |   | – |   |
| Cash, end of period                                                     |   | $                                   | 15      |   |                                | $      | – |                            |   | $ | 15 |   |
|                                                          |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                      |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Interest paid                                                           |   | $                                   | – |   |                                | $      | – |                            |   | $ | – |   |
| Income taxes paid                                                       |   |                                | – |   |                                |   | – |                            |   |   | – |   |
| Non-cash investing and financing activities                             |   |                                |    |   |                                |   |    |                            |   |   |   |   |
| Common stock issued for subsequently cash received                      |   |                                | 10,000  |   |                                |   | – |                            |   |   | 10,000 |   |

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|   | ● | data compilation and assessment              |
|--------|---------|----------------------------------------------|
|   | ● | surface and underground geological mapping   |
|   | ● | surface and underground geochemical sampling |
|   | ● | geophysics                                   |
|   | ● | definition of drill targets                  |
|   | ● | Sinking of an exploration shaft              |

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|   | ● | exploration drilling (selective)    |
|--------|---------|-------------------------------------|
|   | ● | preliminary metallurgical test work |
|   | ● | scoping studies (comprehensive)     |

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| Number | Exhibit Description                                                                                                                                                                 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                |
| 3.1    | Articles of Incorporation of Elray Resources, Inc.*                                                                                                                                 |
|   |                                                                                                                                                                                |
| 3.2    | Bylaws of Elray Resources, Inc.*                                                                                                                                                    |
|   |                                                                                                                                                                                |
| 31.1   | Certificate of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                 |
|   |                                                                                                                                                                                |
| 31.2   | Certificate of principal 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   | Certificate of principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

| 101.INS | XBRL Instance Document**              |
|---------|---------------------------------------|
| 101.SCH | XBRL Schema Document**                |
| 101.CAL | XBRL Calculation Linkbase Document**  |
| 101.DEF | XBRL Definition Linkbase Document**   |
| 101.LAB | XBRL Label Linkbase Document**        |
| 101.PRE | XBRL Presentation Linkbase Document** |

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