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|                              |                                       |
|-----------------------------------|--------------------------------------------|
|                              |                                       |
| Large accelerated filer [  ] | Accelerated filer [  ]                |
| Non-accelerated filer [  ]   | Smaller reporting company [ √ ] |

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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                  | 9        |
| ITEM 4.                 | CONTROLS AND PROCEDURES                                                                         | 10  |
|                    |                                                                                                      |     |
| PART II                 | OTHER INFORMATION                                                           | 10       |
| ITEM 1.                 | LEGAL PROCEEDINGS                                                      | 10       |
| ITEM 1A.                | RISK FACTORS                                                           | 10       |
| ITEM 2.                 | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                 | 10       |
| ITEM 3.                 | DEFAULTS UPON SENIOR SECURITIES                                        | 10       |
| ITEM 4.                 | (REMOVED AND RESERVED)                                                                | 10       |
| ITEM 5.                 | OTHER INFORMATION                                                           | 10       |
| ITEM 6.                 | EXHIBITS                                                                                                  | 10       |
|                    |                                                                                                      | 10       |
| SIGNATURES    | 11                                                                                                        |

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| ASSETS                                                                                                                                                                                                            |   | March 31, 2011 |   |   | December 31, 2010 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                         |   |           |   |   |              |   |
| Current assets:                                                                                                                                                                                                   |   |           |   |   |              |   |
| Cash                                                                                                                                                                                                              |   | $              | -      |   |              | $      | - |   |
| Total current assets                                                                                                                                                                                              |   |           | -      |   |              |   | - |   |
| Property and equipment, net                                                                                                                                                                                       |   |           | 52     |   |              |   | 59 |   |
| Mineral properties                                                                                                                                                                                                |   |           | -      |   |              |   | - |   |
| Other assets                                                                                                                                                                                                      |   |           | 1      |   |              |   | 1 |   |
| Total assets                                                                                                                                                                                                      |   | $              | 53     |   |              | $      | 60 |   |
|                                                                                                                                                                                                         |   |           |   |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                                              |   |           |   |   |              |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                             |   | $              | 48     |   |              | $      | 34 |   |
| Loans from shareholder                                                                                                                                                                                            |   |           | 40     |   |              |   | 130 |   |
| Total liabilities                                                                                                                                                                                                 |   |           | 88     |   |              |   | 164 |   |
|                                                                                                                                                                                                         |   |           |   |   |              |   |   |   |
| Commitments                                                                                                                                                                                                       |   |           |   |   |              |   |   |   |
| Stockholders’ Deficit:                                                                                                                                                                                      |   |           |   |   |              |   |   |   |
|                                                                                                                                                                                                              |   |           |   |   |              |   |   |   |
| Common stock, $0.001 par value, 1,500,000,000 shares authorized, 742,302,228 shares issued and 149,847,500 shares outstanding at March 31, 2011 and 56,847,500 shares issued and outstanding at December 31, 2010 |   |           | 150    |   |              |   | 57 |   |
| Additional paid-in capital                                                                                                                                                                                        |   |           | 2,229  |   |              |   | 1,206 |   |
| Deficit accumulated during the exploration stage                                                                                                                                                                  |   |           | (2,414 | )      |              |   | (1,367 | ) |
| Total stockholders’ deficit                                                                                                                                                                                 |   |           | (35    | )      |              |   | (104 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                 |   | $              | 53     |   |              | $      | 60 |   |

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|                                                             |   |                              |        |   |                              |   |       |                            |   |
|------------------------------------------------------------------|--------|-----------------------------------|-------------|--------|-----------------------------------|--------|------------|---------------------------------|--------|
|                                                             |   |                              |        |   |                              |   |       |                            |   |
|                                                        |   | Three months ended March 31, 2011 |        |   | Three months ended March 31, 2010 |   |       | Inception throughMarch 31, 2011 |   |
| Expenses:                                                        |   |                              |        |   |                              |   |       |                            |   |
| General and administrative                                       |   | $                                 | 20          |   |                              | $      | 15         |                            |   | $ | 424 |   |
| Compensation expense to related party for extinguishment of debt |   |                              | 1,016       |   |                              |   | –    |                            |   |   | 1,016 |   |
| Depreciation                                                     |   |                              | 7           |   |                              |   | 7          |                            |   |   | 112 |   |
| Exploration                                                      |   |                              | 4           |   |                              |   | 6          |                            |   |   | 862 |   |
| Total operating expenses                                         |   |                              | 1,047       |   |                              |   | 28         |                            |   |   | 2,414 |   |
|                                                        |   |                              |        |   |                              |   |       |                            |   |   |   |   |
| Net loss                                                         |   | $                                 | (1,047      | )      |                              | $      | (28        | )                               |   | $ | (2,414 | ) |
|                                                        |   |                              |        |   |                              |   |       |                            |   |   |   |   |
| Net loss per share:                                              |   |                              |        |   |                              |   |       |                            |   |   |   |   |
| Basic and diluted                                                |   | $                                 | (0.00       | )      |                              | $      | (0.00      | )                               |   |   |   |   |
| Weighted average shares outstanding:                             |   |                              |        |   |                              |   |       |                            |   |   |   |   |
| Basic and diluted                                                |   |                              | 108,514,167 |   |                              |   | 56,847,500 |                            |   |   |   |   |

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|                                                                    |   | Three months ended March 31, 2011 |   |   | Three monthsended March 31,2010 |   |   | Inception throughMarch 31,2011 |   |
|-------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                    |   |                                   |   |   |                                 |   |   |                           |   |
| Net loss                                                                |   | $                                      | (1,047 | )      |                                 | $      | (28    | )                              |   | $ | (2,414 | ) |
| Adjustments to reconcile net loss to cash used by operating activities: |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| Impairment of mineral properties                                        |   |                                   | -      |   |                                 |   | -      |                           |   |   | 209 |   |
| Depreciation                                                            |   |                                   | 7      |   |                                 |   | 7      |                           |   |   | 112 |   |
| Stock-based compensation                                                |   |                                   | -      |   |                                 |   | -      |                           |   |   | 74 |   |
| Compensation expense to related party for extinguishment of debt        |   |                                   | 1,016  |   |                                 |   | -      |                           |   |   | 1,016 |   |
| Change in operating assets and liabilities:                             |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| Accounts payable and accrued expenses                                   |   |                                   | 14     |   |                                 |   | 5      |                           |   |   | 48 |   |
| NET CASH USED BY OPERATING ACTIVITIES                                   |   |                                   | (10    | )      |                                 |   | (16    | )                              |   |   | (955 | ) |
|                                                               |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| 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 BY INVESTING ACTIVITIES                                 |   |                                   | -      |   |                                 |   | -      |                           |   |   | (371 | ) |
|                                                               |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                    |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| Proceeds from sale of common stock                                      |   |                                   | -      |   |                                 |   | -      |                           |   |   | 5 |   |
| Loans from shareholder                                                  |   |                                   | 10     |   |                                 |   | 8      |                           |   |   | 215 |   |
| Contributed capital                                                     |   |                                   | -      |   |                                 |   | 8      |                           |   |   | 1,206 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                               |   |                                   | 10     |   |                                 |   | 16     |                           |   |   | 1,426 |   |
|                                                               |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                         |   |                                   | -      |   |                                 |   | -      |                           |   |   | - |   |
| Cash, beginning of period                                               |   |                                   | -      |   |                                 |   | -      |                           |   |   | - |   |
| Cash, end of period                                                     |   | $                                      | -      |   |                                 | $      | -      |                           |   | $ | - |   |
|                                                               |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                      |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| Interest paid                                                           |   | $                                      | -      |   |                                 | $      | -      |                           |   | $ | - |   |
| Income taxes paid                                                       |   | $                                      | -      |   |                                 | $      | -      |                           |   | $ | - |   |
|                                                                    |   |                                   |   |   |                                 |   |   |                           |   |   |   |   |
| Common stock issued for conversion of debt                              |   | $                                      | 100    |   |                                 | $      | -      |                           |   | $ | 100 |   |

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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 |

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