UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.  20549

FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2005

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

For the transition period from________________ to ________________

Commission File No. 000-50664



|DRAVCO MINING, INC.                           
|----------------------------------------------
|(Name of small business issuer in its charter)



|Nevada                                                         |  | 88-0474904                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



|580 Hornby Street, Suite 210, Vancouver British Columbia, Canada V6C 3B6
|------------------------------------------------------------------------
|(Address of principal executive offices)                                

|Issuer's telephone number (604) 687-6991
|----------------------------------------

Securities registered under Section 12(b) of the Act:        None

Securities registered under Section 12(g) of the Act:       Common Stock

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  [ X ]     NO  [   ]

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.         [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       YES  [   ]     NO  [ X ]

State issuer's revenues for its most recent fiscal year.        $0

State the aggregate market value of the voting stock held by non-affiliates computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of a specified date within the past 60 days.



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As at March 15, 2006 there were 4,000,000 shares of voting common stock of the Company held by non-affiliates.  The aggregate market value of the voting common stock held by the non-affiliates on March 15, 2006, computed at the price at which the stock was sold, was $200,000 assuming solely for the purposes of this calculation that the directors and executive officers of the issuer are "affiliates".  This determination of affiliate status is not necessarily a conclusive determination for other purposes.

(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Not Applicable

APPLICABLE ONLY TO CORPORATE REGISTRANTS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  March 15, 2006  - 9,000,000 Common Shares

DOCUMENTS INCORPORATED BY REFERENCE

A description of "Documents Incorporated by Reference" is contained in Item 13 of this Report.

Transitional Small Business Registrant Format:     Yes [   ]  No [ X ]

























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PART I

Item 1.     Description of Business.

General

We were incorporated in the State of Nevada on September 20, 2000 as Dundee Mining Inc.  On October 2, 2002, we changed our name to Dravco Mining Inc.  We changed our name because we were advised by a Canadian corporation with a similar name that we might be infringing on the other corporation's trademark in Canada. While we believed we were not infringing on the other corporation's trademark, we also believed that it would not be economically worthwhile to engage in protracted litigation in Canada regarding the infringement issue.

We are engaged in the acquisition and exploration of mining properties.  We maintain our statutory registered agent's office at 101 Convention Center Drive, Suite 700, Las Vegas, Nevada, 89109 and our business office is 580 Hornby Street, Suite 210, Vancouver, British Columbia Canada V6C 3B6. Our telephone number is (604) 687-6991.

Background

In July 2000, Rodney L. Lozinski, our sole officer and director, entered into an oral agreement with Locke Goldsmith, an unrelated third party, to stake one property containing ten unpatented mining claims in the Nickel Plate Mountain area of Hedley, Osoyoos Mining Division, British Columbia, Canada, in exchange for $878. This is the total cost of the property.  Mr. Goldsmith was paid an additional $829 to maintain our claims.  These are the only services we have paid to Mr. Goldsmith to date.  We retained the services of Mr. Goldsmith because we believed he was knowledgeable about mining claims in British Columbia and we are not.  Mr. Goldsmith has been engaged in mining exploration for the past 42 years.  He is a registered professional engineer in the provinces of Ontario and British Columbia, a registered professional geologist in the province of British Columbia and the states of Oregon, Minnesota and Wisconsin.  Mr. Goldsmith holds a Bachelor of Science degree with honors in geology from Michigan Technological University, a Master of Science degree from the University of British Columbia, and has done postgraduate study in geology at Michigan Technological Institute and the University of Nevada.  He is a graduate of Haileybury School of Mines, and a Certified Mining Technician.  He is a member of the Society of Economic Geologists, the AIME, and Fellow of the Geological Association of Canada.

The claims were conveyed by Mr. Goldsmith to Mr. Lozinski and are recorded in Mr. Lozinski's name to avoid paying additional fees. The property is held in trust pursuant to a written declaration executed by Mr. Lozinski.  Under British Columbia law, title to mining claims must be held by a British Columbia corporation or held by an individual who is a Canadian citizen.  In order to comply with the law we would have to incorporate a British Columbia wholly owned subsidiary corporation and complete audited consolidated financial statements.  We believe those costs are unwarranted at this time.  In the event that we find mineralized material and the mineralized material can be economically extracted, we will form a wholly owned British Columbia subsidiary corporation and Mr. Lozinski will convey title to the properties to the wholly owned subsidiary corporation.   Should Mr. Lozinski transfer title to another person and that deed is recorded before we record our documents, that other person will have superior title, however, Mr. Lozinski would be liable to us for monetary damages for breaching the terms of his agreement with us.

All Canadian lands and minerals which have not been granted to private persons are owned by either the federal or provincial governments in the name of Her Majesty.  Ungranted minerals are commonly known as Crown minerals.  Ownership rights to Crown minerals are vested by the Canadian Constitution in the province where the minerals are located.  In the case of the Company's property, that is the province of British Columbia.   In the 19th century the practice of reserving the minerals from fee simple Crown grants was established.   Legislation now ensures that minerals are reserved from Crown land dispositions.  The result is that the Crown is the largest mineral owner in Canada, both as the fee simple owner of Crown lands and through mineral reservations in Crown grants.  Most privately held mineral titles are acquired directly from the Crown.  The Company's property is one such acquisition.   Accordingly, fee simple title to the Company's property resides with the Crown. The Company's claims are mining leases issued pursuant to the British Columbia Mineral Act.





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The lessee has exclusive rights to mine and recover all of the minerals contained within the surface boundaries of the lease continued vertically downward.  There are no native land claims that affect our title.

The property is unencumbered and there are no competitive conditions, which affect the property. Further, there is no insurance covering the property and we believe that no insurance is necessary since the property is unimproved and contains no buildings or improvements.

To date we have performed one day of prospecting work on the property. We are presently in the exploration stage and we cannot guarantee that a commercially viable mineral deposit, a reserve, exists in the property until further exploration is done and a comprehensive evaluation concludes economic and legal feasibility.

Item 2.     Description of Property.

In July 2000, Rodney L. Lozinski, our sole officer and director, entered into an oral agreement with Locke Goldsmith, an unrelated third party, to stake one property containing ten unpatented mining claims in the Nickel Plate Mountain area of Hedley, Osoyoos Mining Division, British Columbia, Canada.

Claims

The property is comprised of ten claims. They are:

1.   Cahill #3 - Tenure No. 380915 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

2.   Cahill #4 - Tenure No. 380916 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

3.   Cahill #5 - Tenure No. 380917 was recorded on October 2, 2000 and expires on September 22, 2006 and contains approximately 62 acres.

4.   Cahill #6 - Tenure No. 380918 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

5.   Cahill #7 - Tenure No. 380919 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

6.   Cahill #8 - Tenure No. 380920 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

7.   Cahill #9 - Tenure No. 380921 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

8.   Cahill #10 - Tenure No. 380922 was recorded on October 2, 2000 and expires on September 23, 2006 and contains approximately 62 acres.

9.   Cahill #11 - Tenure No. 380923 was recorded on October 2, 2000 and expires on September 22, 2006 and contains approximately 62 acres.

10.   Cahill #12 - Tenure No. 380924 was recorded on October 2, 2000 and expires on September 22, 2006 and contains approximately 62 acres.





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Location and access

The property is located on the upper eastern slopes of Nickel Plate Mountain near the headwaters of Cahill Creek on the Thompson Plateau. The property is situated approximately three miles northeast of Highway 3 and approximately 3.2 miles east of the village of Hedley.

Two accessible roads lead to the north end of the property.  The Nickel Plate Mine road departs northeasterly from Highway 3 at a point approximately two miles southeast of Hedley.  The Apex Mountain road departs westerly from Highway 97 at Penticton.  The two roads join at the headwaters of Cahill Creek where a dirt road branches southwesterly and passes through the entire property. Various spur roads within the property provide additional access.

History of previous work

The area around the property has been explored extensively since the 1890s.  The property has no history of previous exploration.  There is no evidence of mining on the property and there is no plant or equipment located on the property.  There are no material engineering or geological reports concerning the property, other than governmental regional geological reports, which are known or available to us. There is no power source on the property.

Current state of exploration

In order to maintain the claims in good standing with the government we completed one day of prospecting in September 2001.  Three rock samples and three soil samples were collected and tested.  We found no gold in five of the samples and an insignificant amount of gold in one of our samples.   Otherwise no work has been completed on the property.

Physiography

The property lies between 1,700 and 1,900 feet above sea level.  Vegetation is moderate at all levels.  There is ample water and timber within the property to support exploration.  The property is free of snow from April through December, allowing eight to nine months of exploration each year.  The property is within easy commuting distance from Penticton, which is the nearest center with facilities.

Property geology

The main rock types occurring in the area are volcanic and sedimentary rocks.  The foregoing was observed by Mr. Goldsmith when he visited the property.  We have been advised by Mr. Goldsmith that gold may be found in some volcanic and sedimentary rock, however, not all volcanic and sedimentary rock contains gold.  We do not know if there are potentially significant occurrences of economic mineralization on the property.

We currently maintain limited office space located at 580 Hornby Street, Suite 210, Vancouver British Columbia, Canada V6C.  Commencing January 1, 2006 we pay a nominal fee of $100 per month on a month-to-month basis.  We do not believe that we will need to obtain additional office space at any time in the foreseeable future until we commence our exploration program.

Item 3.     Legal Proceedings.

We are not party to any pending litigation and to the best of our knowledge none is contemplated or threatened.

Item 4.     Submission of Matters to a Vote of Security Holders.

There were no matters submitted to a vote of security holders during the fourth quarter of 2005.





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PART II

Item 5.     Market for Common Equity and Related Stockholders Matters.

Market Information

On June 7, 2005, our common stock received approval for quotation on the National Association of Securities Dealers Inc.'s Over-the-Counter Bulletin Board under the name "Dravco Mining Inc." and under the symbol "DVCO".  To date our stock has not yet traded.

Our common shares are issued in registered form.  Signature Stock Transfer, Inc., 2301 Ohio Drive, Suite 100, Plano, Texas 75093, (Telephone: (972) 612-4120; Facsimile: (972) 612-4122) is the registrar and transfer agent for our common shares.

On March 15, 2006 the shareholders' list of our common shares showed 50 registered shareholders and 9,000,000 shares outstanding.

There are no plans, proposals, arrangements or understandings with any person with regards to the development of a trading market in any of our securities.

Holders

As at March 15, 2006 the shareholders' list of our common stock showed 50 registered shareholders and 9,000,000 shares outstanding.

Dividends

The Company has never declared any cash dividends with respect to its common stock and does not intend to declare dividends in the foreseeable future.  There are no material restrictions limiting, or that are likely to limit the Company's ability to pay dividends in its common stock.

Recent Sales of Unregistered Securities

There were no sales of unregistered securities during the year ended December 31, 2005.

Section 15(g) of the Exchange Act

The Company's shares are covered by Section 15(g) of the Securities Exchange Act of 1934, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses).  For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser's written agreement to the transaction prior to the sale.  Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.  Section 15(g) of the Exchange Act also imposes additional sales practice requirements on broker/dealers who sell penny securities.  These rules require a one-page summary of certain essential items.  The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important in the understanding of the function of the penny stock market, such as "bid" and "offer" quotes, a dealers "spread" and broker/deal compensation; the broker/dealer compensation, the broker/dealers duties to its customers, including the disclosures required by any other penny stock disclosure rules, the customers rights and remedies in causes of fraud in penny stock transactions; and, the NASD's toll free telephone number and the central number of the North American Administrators Association for information on the disciplinary history of broker/dealers and their associates persons.



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Securities Authorized for Issuance Under Equity Compensation Plans

There are no outstanding options or warrants to purchase, or securities convertible into, our common stock.

Use of Proceeds from Registered Securities

Our SB2 Registration Statement was declared effective on February 10, 2003 (Commission file no. 333-54044).   We offered up to a total of 4,000,000 shares of common stock on a self-underwritten basis, 2,000,000 minimum, 4,000,000 shares maximum at the offering price of $0.05 per share.  On March 10, 2004, we completed our public offering by raising $200,000.  We sold 4,000,000 shares of our common stock at an offering price of $0.05 per share.  No direct or indirect payments were made to directors, officers, general partners of the issuer or their associates in connection with the offer.

Use of Proceeds - From February 10, 2003 (Effective Date of Registration Statement) to December 31, 2005

We completed our public offering on March 10, 2004, from the $200,000 raised, we have incurred $5,145 in mineral property costs, $22,771 in audit fees, $37,549 in legal fees; and $24,123 in general working capital, for a total of $89,588.  This amount includes the $43,127 that was advanced by our President, Rodney Lozinski for expenses relating to organizational and start-up costs.

Item 6.     Management's Discussion and Analysis or Plan of Operation.

This section of this report contains forward-looking statements that are based on the current beliefs and expectations of management, as well as assumptions made by, and information currently available to, the Company's management.  Because such statements involve risks and uncertainties, actual actions and strategies and the timing and expected results thereof may differ materially from those expressed or implied by such forward-looking statements.  Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the audited financial statements and accompanying notes and other financial information appearing elsewhere in this annual report on Form 10-KSB.

Plan of Operation

Our proposed exploration program

We are prospecting for gold.  Our target is mineralized material. Our success depends upon finding mineralized material.  Mineralized material is a mineralized body that has been delineated by appropriate spaced drilling or underground sampling to support sufficient tonnage and average grade of metals to justify removal.   If we do not find mineralized material or we cannot remove mineralized material, either because we do not have the money to do it or because it is not economically feasible to do it, we may suspend or cease operations.

In addition, we may not have enough money to complete our exploration of our property.  If it turns out that we have not raised enough money to complete our exploration program, we will try to raise additional funds from a second public offering, a private placement or loans.  At the present time, we have not made any plans to raise additional money and there is no assurance that we would be able to raise additional money in the future.  If we need additional money and cannot raise it, we may suspend or cease operations.

We must conduct exploration to determine what amount of minerals, if any, exist on our properties and if any minerals that are found can be economically extracted and profitably processed.



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Our property is undeveloped raw land.  We intend to start exploration operations.  To our knowledge, the property has never been mined.  The only event that has occurred is the staking of the property by Locke Goldsmith and a physical examination of the property.  The cost of staking the claims was included in the $878 we paid to Mr. Goldsmith.  In addition, to December 31, 2005, we have paid Mr. Goldsmith a total of $4,267 to maintain the claims in good standing.  During the year, we renewed our claims with the Ministry of Energy and Mines in British Columbia at a cost of $1,779.

We are proceeding with our exploration program in the following three phases:

Phase 1 begun with research of the available geological literature, personal interviews with geologists, mining engineers and others familiar with the prospect sites.  To date, this phase of the exploration process is ongoing by researching available literature over the Internet and through other sources such as books and magazines.

Our initial work will be augmented with geologic mapping, geophysical testing and geochemical testing of our claims. When available, existing workings, like trenches, prospect pits, shafts or tunnels will be examined. If an apparent mineralized zone is identified and narrowed down to a specific area by the studies, we will begin trenching the area.

Trenches are generally approximately 150 ft. in length and 10-20 ft. wide. These dimensions allow for a thorough examination of the surface of the vein structure types generally encountered in the area. They also allow easier restoration of the land to its pre-exploration condition when we conclude our operations. Once excavation of a trench is completed, samples are taken and then analyzed for economically potential minerals that are known to have occurred in the area. Careful interpretation of this available data collected from the various tests aid in determining whether or not the prospect has current economic potential and whether further exploration is warranted.

Phase 1 will take about 3 months once undertaken and cost up to $20,000.

Phase 2 involves an initial examination of the underground characteristics of the vein structure that was identified by Phase 1 of exploration. Phase 2 is aimed at identifying any mineral deposits of potential economic importance. The methods employed are

*    more extensive trenching 
*    more advanced geophysical work 
*    drift driving

Drift driving is the process of constructing a tunnel to take samples of minerals for testing. Later, the tunnel can be used for mining minerals. The geophysical work gives a general understanding of the location and extent of mineralization at depths that are unreachable by surface excavations and provides a target for more extensive trenching and core drilling. Trenching identifies the continuity and extent of mineralization, if any, below the surface. After a thorough analysis of the data collected in Phase 2, we will decide if the property warrants a Phase 3 study.

Phase 2 will take about 3 months and cost up to $40,000.

Phase 3 is aimed at precisely defining the depth, the width, the length, the tonnage and the value per ton of any mineral body. This is accomplished through extensive drift driving. Phase 3 will take about 6 months and cost up to $80,000.

The breakdown of estimated times and dollars for each phase was made by the board of directors.

We do not intend to interest other companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.

If we are unable to complete a phase of exploration because we do not have enough money, we will cease operations until we raise more money. If we cannot or do not raise additional money, we will cease operations.



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We cannot provide you with a more detailed discussion of how our exploration program will work and what we expect will be our likelihood of success. That is because we have a piece of raw land and we intend to look for gold. We may or may not find any mineralized material. It is impossible to predict the likelihood of such an event.

We will not move onto a subsequent phase until the phase we are working on is completed.

We do not have any plan to take the Company from Phase 3 exploration to revenue generation until we have determined its economic feasibility.

We do not intend to hire additional employees at this time. All of the work on the property will be conducted by unaffiliated independent contractors that we will hire. The independent contractors will be responsible for surveying, geology, engineering, exploration, and excavation. The geologists will evaluate the information derived from the exploration and excavation and the engineers will advise us on the economic feasibility of removing the mineralized material.

We will be conducting research in the form of exploration of our property.  We are not going to buy or sell any plant or significant equipment during the next twelve months.  We will not buy any equipment until we have located a body of ore and we have determined it is economical to extract the ore from the land.

We had expected to begin core drilling and exploration within 90 days of completing our offering, weather permitting, but have been delayed due to various circumstances.  Due to our numerous delays and uncertainty as to when we might be able to commence work, our geologist, Mr. Locke Goldsmith has taken on multiple other projects requiring him to be out of North America for extended periods of time.  We will be unable to advance further with Phase 1 until Mr. Goldsmith has the time for us.  Alternatively, we may need to seek another geologist although we have made no plans to do so at this time.

Risk Factors

Our company is in the early development stage.  The fact that we have not generated any revenues since our incorporation raises substantial doubt about our ability to continue as a going concern, as indicated in our independent auditors' opinion given in connection with our audited financial statements for the year ended December 31, 2005 and in the notes to the financial statements included with this annual report on Form 10-KSB.

Our company is in the early development stage.  We have not generated any revenues since we incorporated on September 20, 2000.  We have incurred a loss of $25,910 for the year ended December 31, 2005 and we have an accumulated deficit of $90,788 from the date of our incorporation on September 20, 2000 through the period ending December 31, 2005.  We anticipate we will operate in a deficit position for the foreseeable future.  We will require additional financing in order to fund the implementation of our business plan and to maintain our listing requirements.  To date, our primary source of funds has been the sale of our common stock but there can be no assurance that we will be able to raise additional working capital through the sale of our common stock or through other means.  If we cannot raise the working capital required for the development of our business, our business will fail.  These circumstances raise substantial doubt about our ability to continue as a going concern as expressed in an explanatory note that forms part of our independent auditor's report on our financial statements for the year ended December 31, 2005 and is included in the notes to the financial statements included with this annual report on Form 10-KSB.

We have no known ore reserves and we cannot guarantee we will find any gold or if we find gold that production will be profitable.

We have no known ore reserves.  We have not identified any gold on the property and we cannot guarantee we will ever find any gold.  Even if we find that there is gold on our property, we cannot guarantee that we will be able to recover the gold.  Even if we recover gold, we cannot guarantee that we can do so at a profit.

Our sole director and officer is engaged in other full-time activities and he may not devote sufficient time to our business, which could have an adverse effect on our ability to conduct operations and generate revenues.



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Our sole director and officer is involved in other business activities.  Rodney Lozinski, our President, Chief Executive Officer and sole director is self-employed and maintains other businesses.  As a result, our director and officer may not be able to devote sufficient time to our business affairs, which may negatively affect our ability to market our proposed business and conduct both our current and proposed operations.

Because our officer and director is located in non-U.S. jurisdictions, you may have no effective recourse against the management for misconduct and may not be able to enforce judgment and civil liabilities against our officer and director.

Our President is a resident of Canada and all or a substantial portion of our assets and those of our President are located outside the United States.  As a result, it may be difficult for investors to enforce within the United States any judgment obtained against our company, our officer and director, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof.

Because our officer and director controls a majority of our common stock, investors will have little or no control over our management or other matters requiring shareholder approval.

Our sole officer and director beneficially own 55.55% of the issued and outstanding shares of our common stock.  As a result, he has the ability to control matters affecting minority shareholders, including the election of our directors, the acquisition or disposition of our assets, and the future issuance of our shares.  Because our officer and director control the company, investors will not be able to replace our management if they disagree with the way our business is being run.  Because control by our sole officer and director could result in management making decisions that are in the best interest of our officer and director and not in the best interest of the investors, you may lose some or all of the value of your investment in our common stock.

Because we can issue additional common stock and there is a substantial likelihood that we will do so in order to finance our business plan and our monthly operations requirements, purchasers of our common stock may suffer immediate dilution of their interest in our company.

The most likely source of future funds presently available to us is through the sale of equity.  Any sale of our shares will result in dilution to existing shareholders.  Furthermore, there is no assurance that we will not incur debt in the future, that we will have sufficient funds to repay our future indebtedness or that we will not default on our future debts, jeopardizing our business viability.  Finally, we may not be able to borrow or raise additional capital in the future to meet our need or to otherwise provide the capital necessary to conduct business and develop our business plan, which might result in the loss of some or all of your investment in our common stock.

There is currently no public market for shares of our common stock, which will make it difficult for you to sell your shares.  If you cannot sell your shares, you may lose all of your investment.

There is no public market for our common stock and we can give no assurance that one will develop or be sustained.  Although our common stock received approval for quotation on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on June 7, 2005, it has not yet traded.  We cannot provide any assurance that our common stock will be traded on the OTC Bulletin Board or, if traded, that a public market for our common stock will develop.

If a public market for our common stock does not develop, then you may not be able to resell your shares of our common stock and you may lose all of your investment.

Even if a significant market for our common stock should develop, the market price for our common stock may be significantly affected by the current stage of our business plan and our lack of revenues and our financial and operations result from time-to-time.  Further, equity markets in general and the OTC Bulletin Board in particular can experience extreme volatility that can affect the market price of equity securities in ways that are often unrelated or disproportionate to the operating performance of the issuer companies.  You should not invest in our company unless you are prepared to hold onto your securities for a significant period of time.



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Trading of our common stock may be restricted by the Securities and Exchange Commission's penny stock regulations, which may limit the development of a liquid public market for our common stock and may limit a shareholder's ability to buy and sell our common stock.

Shares of our common stock are subject to rules adopted by the Securities and Exchange Commission that regulate broker-dealer practices in connection with transactions in "penny stocks".  "Penny stock" is defined to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  If we establish a trading market in our common stock, our common stock will most likely be covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors".  The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC that provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.

Limited Operating History; Need for Additional Capital

There is limited historical financial information about Dravco Mining Inc. upon which to base an evaluation of our performance.   We are an exploration stage corporation and have not generated any revenues from operations.   We cannot guarantee we will be successful in our business operations.  Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.

To become profitable and competitive, we will have to conduct research and exploration of our properties before we start production of any minerals we may find.  The funds raised from our equity financing from our public offering will provide for the capital required to implement our research and exploration phases.   We have no assurance that future financing will be available to us on acceptable terms.   If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations.  Equity financing could result in additional dilution to existing shareholders.



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Results of Operations

Twelve Months ended December 31, 2005 and 2004

We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business operations.

Our auditors have issued a going concern opinion.  This means that our auditors believe there is doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills.  This is because we have not generated any revenues and no revenues are anticipated until we begin removing and selling minerals.  Accordingly, we must raise cash from sources other than the sale of minerals found on the property.  That cash must be raised from other sources.  Our only other source for cash at this time is investments by others in Dravco Mining Inc.  We must raise cash to implement our project and stay in business.  On March 10, 2004, we completed our public offering and raised the maximum amount of money in our offering, $200,000.  We do not know how long the money will last, however, we do believe it will last twelve months.  It depends upon the amount of exploration we conduct and the cost thereof.   We will not know that information until we begin exploring our property.  Now that we have completed our offering, we will begin exploration of our property.

The money that we have raised will be applied to exploration as set forth in our prospectus.  If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans to finance the removal of the mineralized material.    If we need additional cash and cannot raise it we will either have to suspend operations until we do raise the cash, or cease operations entirely.   Other than as described in this paragraph, we have no other financing plans.

We had expected to begin core drilling and exploration within 90 days of completing our offering, weather permitting, but have been delayed due to various circumstances.  Due to our numerous delays and uncertainty as to when we might be able to commence work, our geologist, Mr. Locke Goldsmith has taken on multiple other projects requiring him to be out of North America for extended periods of time.  We will be unable to advance further with Phase 1 until Mr. Goldsmith has the time for us.  Alternatively, we may need to seek another geologist although we have made no plans to do so at this time.

Due to our inability to commence exploration on our mining property we have considered other business opportunities although we have no agreements related to any such opportunities.

On September 23, 2005, Mr. Luis Goyzueta joined our Board of Directors and agreed to act as Chief Financial Officer.  Mr. Goyzueta was to have provided assistance to us to either advance our mining project in British Columbia or to help us seek alternative opportunities.

Mr. Goyzueta resigned on December 2, 2005 to pursue other interests.

From Inception on September 20, 2000 to December 31, 2005

We acquired our first property.  We have staked the property. We completed our public offering on March 10, 2004.  We have begun research of available geological information.  We have renewed our claims with the Ministry of Energy and Mines in British Columbia. We had expected to begin core drilling and exploration within 90 days of completing our offering, weather permitting, but have been delayed due to various circumstances.  Due to our numerous delays and uncertainty as to when we might be able to commence work, our geologist, Mr. Locke Goldsmith has taken on multiple other projects requiring him to be out of North America for extended periods of time.  We will be unable to advance further with Phase 1 until Mr. Goldsmith has the time for us.  Alternatively, we may need to seek another geologist although we have made no plans to do so at this time.

Due to our inability to commence exploration on our mining property we have considered other business opportunities although we have no agreements related to any such opportunities.

Since inception, we have used our common stock to raise money for the property acquisition, for corporate expenses and to repay outstanding indebtedness.  Net cash provided by the sale of shares from inception on September 20, 2000 to December 31, 2005 was $200,050.  In addition, a related party advanced a total of $43,127 to us, which must be repaid.



- 12 -

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Liquidity and Capital Resources

As of the date of this report, we have yet to generate any revenues from our business operations.  We issued 5,000,000 shares of common stock through a Section 4(2) offering in September 2000 to Rodney L. Lozinski, our sole officer and director.   This was accounted for as a cash shares purchase of $50.

On March 10, 2004 we issued an additional 4,000,000 shares of common stock against proceeds of $200,000 pursuant to our public offering.

Since our inception, Mr. Lozinski, has advanced the total sum of $43,127.  $30,000 was used for legal fees relating to organizational and start-up costs, $1,707 was used to pay Locke Goldsmith for the initial claims and subsequent maintenance work, $7,210 was for audit fees, $2,397 was used to pay filing fees and $1,813 was used for general administrative and operating capital.  The loan does not bear interest and has not been repaid as of the date hereof.  There are no documents reflecting the loan and they are not due on a specific date.  Mr. Lozinski will accept repayment from us when money is available.

As of December 31, 2005 we had cash resources of $166,653.  We had total liabilities of $56,191. This was comprised of the $43,127 loan from Mr. Lozinski, $13,064 for general administrative, legal and audit costs.

Critical Accounting Policies

The Company's discussions and analysis of its financial condition and results of operations, including the discussion on liquidity and capital resources, are based upon the Company's financial statements, which have been prepared in accordance with US GAAP. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

The financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its obligations in the normal course of business.  If the Company were not to continue as a going concern, it would likely not be able to realize its assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the financial statements.  The Company will require additional capital to fund any future plan of operations.  There can be no assurance that the Company will be able to raise additional capital, and if the Company is unable to raise additional capital, it will unlikely be able to continue as a going concern.

Item 7.     Financial Statements.

















- 13 -

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Dravco Mining Inc.
(An Exploration Stage Company)
Financial Statements
(Expressed in U.S. Dollars)





Index

Report of Independent Registered Public Accounting Firm
                                                                         F-1

Balance Sheets                                                                                                                                         F-2

Statements of Operations                                                                                                                          F-3

Statements of Cash Flows                                                                                                                         F-4

Statement of Stockholders' Equity                                                                                                             F-5

Notes to the Financial Statements                                                                                                              F-6

















- 14 -

---





Report of Independent Registered Public Accounting Firm



To the Directors and Stockholders
Dravco Mining Inc. 
(An Exploration Stage Company)

We have audited the accompanying balance sheet of Dravco Mining Inc. (An Exploration Stage Company) as of December 31, 2005, and the related statement of operations, cash flows and stockholders' equity for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The accompanying balance sheet of Dravco Mining Inc. as of December 31, 2004 and the related statement of operations, cash flows and stockholders' equity for the year then ended and accumulated for the period from September 20, 2000 to December 31, 2004, was audited by other auditors in their report dated March 15, 2005. Those auditors expressed an unqualified opinion on those financial statements and included an explanatory paragraph describing the substantial doubt about the Company's ability to continue as a going concern.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Dravco Mining Inc. as of December 31, 2005, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has not generated any revenues and has incurred significant operating losses during the exploration stage. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

MANNING ELLIOTT LLP
CHARTERED ACCOUNTANTS
Vancouver, Canada
February 20, 2006





F-1

- 15 -

---

Dravco Mining Inc.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S. Dollars)



|                                                          | December 31, |  | December 31, | 
|--------------------------------------------------------- | ------------ |  | ------------ | 
|                                                          | 2005         |  | 2004         | 
|                                                          | $            |  | $            | 
|Assets                                                    |              |  |              | 
|                                                          |              |  |              | 
|Current Assets                                            |              |  |              | 
|Cash                                                      | 166,653      |  | 185,560      | 
|Total Assets                                              | 166,653      |  | 185,560      | 
|                                                          |              |  |              | 
|Liabilities and Stockholders' Equity                      |              |  |              | 
|                                                          |              |  |              | 
|Current Liabilities                                       |              |  |              | 
|Accounts payable                                          | 5,347        |  | 3,800        | 
|Accrued liabilities                                       | 7,717        |  | 3,461        | 
|Due to related party (Note 4(a))                          | 43,127       |  | 43,127       | 
|                                                          |              |  |              | 
|Total Liabilities                                         | 56,191       |  | 50,388       | 
|                                                          |              |  |              | 
|Commitments and Contingencies (Note 1)                    |              |  |              | 
|                                                          |              |  |              | 
|Stockholders' Equity                                      |              |  |              | 
|                                                          |              |  |              | 
|Common Stock (Note 5)                                     |              |  |              | 
|100,000,000 shares authorized, with a $0.00001 par value, |              |  |              | 
|9,000,000 shares issued and outstanding                   | 90           |  | 90           | 
|Donated Capital (Note 4(b))                               | 1,200        |  | -            | 
|Additional Paid-in Capital                                | 199,960      |  | 199,960      | 
|Deficit Accumulated During the Exploration Stage          | (90,788)     |  | (64,878)     | 
|                                                          |              |  |              | 
|Total Stockholders' Equity                                | 110,462      |  | 135,172      | 
|                                                          |              |  |              | 
|Total Liabilities and Stockholders' Equity                | 166,653      |  | 185,560      | 
|                                                          |              |  |              | 





The accompanying notes are an integral part of these financial statements
F-2

- 16 -

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Dravco Mining Inc.
(An Exploration Stage Company)
Statements of Operations
(Expressed in U.S. Dollars)



|                                              | Year
Ended
December 31,
2005
$ |  | Year
Ended
December 31,
2004
$ |  | Accumulated
From
September 20, 2000 (Inception)
to December 31,
2005
$ | 
|--------------------------------------------- | ------------------------------ |  | ------------------------------ |  | ---------------------------------------------------------------------- | 
|                                              |                                |  |                                |  |                                                                        | 
|Revenue                                       | -                              |  | -                              |  | -                                                                      | 
|                                              |                                |  |                                |  |                                                                        | 
|Expenses                                      |                                |  |                                |  |                                                                        | 
|                                              |                                |  |                                |  |                                                                        | 
|Consulting fees                               | -                              |  | 2,500                          |  | 2,500                                                                  | 
|Mineral property costs                        | 1,800                          |  | 1,638                          |  | 5,145                                                                  | 
|Office and administration (Note 4(b))         | 4,818                          |  | 958                            |  | 9,852                                                                  | 
|Professional fees                             | 12,311                         |  | 8,873                          |  | 60,320                                                                 | 
|Transfer agent and filing fees                | 4,162                          |  | 2,593                          |  | 10,152                                                                 | 
|Travel                                        | 2,819                          |  | -                              |  | 2,819                                                                  | 
|Total Expenses                                | 25,910                         |  | 16,562                         |  | 90,788                                                                 | 
|                                              |                                |  |                                |  |                                                                        | 
|Net Loss                                      | (25,910)                       |  | (16,562)                       |  | (90,788)                                                               | 
|                                              |                                |  |                                |  |                                                                        | 
|Net Loss Per Share - Basic and Diluted        | -                              |  | -                              |  |                                                                        | 
|                                              |                                |  |                                |  |                                                                        | 
|Weighted Average Number of Shares Outstanding | 9,000,000                      |  | 8,233,000                      |  |                                                                        | 
|                                              |                                |  |                                |  |                                                                        | 













The accompanying notes are an integral part of these financial statements
F-3

- 17 -

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Dravco Mining Inc.
(An Exploration Stage Company)
Statements of Cash Flows
(Expressed in U.S. Dollars)



|                                                                           | Year 
Ended
December 31, |   | Year
Ended
December 31, |  | Accumulated
From
September 20, 2000 (Inception)
to December 31, | 
|-------------------------------------------------------------------------- | ------------------------ | - | ----------------------- |  | --------------------------------------------------------------- | 
|                                                                           | 2005                     |   | 2004                    |  | 2005                                                            | 
|                                                                           | $                        |   | $                       |  | $                                                               | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Operating Activities                                                       |                          |   |                         |  |                                                                 | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Net loss                                                                   | (25,910)                 |   | (16,562)                |  | (90,788)                                                        | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Adjustment to reconcile net loss to net cash used in operating activities: |                          |   |                         |  |                                                                 | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Donated rent                                                               | 1,200                    |   | -                       |  | 1,200                                                           | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Changes in operating assets and liabilities                                |                          |   |                         |  |                                                                 | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Accounts payable and accrued liabilities                                   | 5,803                    |   | 1,335                   |  | 13,064                                                          | 
|Due to related party                                                       | -                        |   | -                       |  | 43,127                                                          | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Net Cash Used in Operating Activities                                      | (18,907)                 |   | (15,227)                |  | (33,397)                                                        | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Net Cash Used in Investing Activities                                      | -                        |   | -                       |  | -                                                               | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Financing Activities                                                       |                          |   |                         |  |                                                                 | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Proceeds from issuance of common stock                                     | -                        |   | 200,000                 |  | 200,050                                                         | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Net Cash from Financing Activities                                         | -                        |   | 200,000                 |  | 200,050                                                         | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Increase (Decrease) in Cash                                                | (18,907                  | ) | 184,773                 |  | 166,653                                                         | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Cash, Beginning of Period                                                  | 185,560                  |   | 787                     |  | -                                                               | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Cash, End of Period                                                        | 166,653                  |   | 185,560                 |  | 166,653                                                         | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Non-cash Investing and Financing Activities                                | -                        |   | -                       |  | -                                                               | 
|                                                                           |                          |   |                         |  |                                                                 | 
|Supplemental Disclosures                                                   |                          |   |                         |  |                                                                 | 
|Interest paid                                                              | -                        |   | -                       |  | -                                                               | 
|Income taxes paid                                                          | -                        |   | -                       |  | -                                                               | 
|                                                                           |                          |   |                         |  |                                                                 | 









The accompanying notes are an integral part of these financial statements
F-4

- 18 -

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Dravco Mining Inc.
(An Exploration Stage Company)
Statements of Stockholders' Equity
For the period from September 20, 2000 (Date of Inception) to December 31, 2005
(Expressed in U.S. Dollars)



|                                                                |  | Common Shares |  | Additional
Paid-in |  | Donated | Deficit Accumulated During the
Exploration |         |         
|--------------------------------------------------------------- |  | ------------- |  | ------------------ |  | ------- | ------------------------------------------ | ------- | --------
|                                                                |  | Number        |  | Par Value          |  | Capital |                                            | Capital | Stage   
|                                                                |  |               |  | $                  |  | $       |                                            | $       | $       
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance September 20, 2000 (Date of Inception)                  |  | -             |  | -                  |  | -       |                                            | -       | -       
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Shares issued for cash September 20, 2000 at $0.00001 per share |  | 5,000,000     |  | 50                 |  | -       |                                            | -       | -       
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for period                                             |  | -             |  | -                  |  | -       |                                            | -       | (19,386)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2000                                      |  | 5,000,000     |  | 50                 |  | -       |                                            | -       | (19,386)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for year                                               |  | -             |  | -                  |  | -       |                                            | -       | (2,097) 
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2001                                      |  | 5,000,000     |  | 50                 |  | -       |                                            | -       | (21,483)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for the year                                           |  | -             |  | -                  |  | -       |                                            | -       | (5,129) 
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2002                                      |  | 5,000,000     |  | 50                 |  | -       |                                            | -       | (26,702)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for the year                                           |  | -             |  | -                  |  | -       |                                            | -       | (21,614)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2003                                      |  | 5,000,000     |  | 50                 |  | -       |                                            | -       | (48,316)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Shares issued for cash March 10, 2004 at $0.05 per share        |  | 4,000,000     |  | 40                 |  | 199,960 |                                            | -       | -       
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for the year                                           |  | -             |  | -                  |  | -       |                                            | -       | (16,562)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2004                                      |  | 9,000,000     |  | 90                 |  | 199,960 |                                            | -       | (64,878)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Donated rent                                                    |  | -             |  | -                  |  | -       |                                            | 1,200   | -       
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Net loss for the year                                           |  | -             |  | -                  |  | -       |                                            | -       | (25,910)
|                                                                |  |               |  |                    |  |         |                                            |         |         
|Balance, December 31, 2005                                      |  | 9,000,000     |  | 90                 |  | 199,960 |                                            | 1,200   | (90,788)
|                                                                |  |               |  |                    |  |         |                                            |         |         













The accompanying notes are an integral part of these financial statements
F-5

- 19 -

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Dravco Mining Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
December 31, 2005 and 2004
(Expressed in U.S. Dollars)

1.         Nature and Continuance of Operations

The Company was incorporated in the State of Nevada on September 20, 2000 as Dundee Mining Inc. On October 2, 2002, the Company changed its name to Dravco Mining Inc. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard ("SFAS") No. 7 "Accounting and Reporting by Development Stage Enterprises". The Company's business plan is to acquire, explore and develop mineral properties and ultimately seek out earnings by exploiting mineral claims. The Company has not determined whether the mining claims contain ore reserves that are economically recoverable.

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to determine the existence of economically recoverable reserves in its resource properties, confirmation of the Company's interests in the underlying properties, obtain necessary financing and then profitable operations. As at December 31, 2005, the Company has never generated any revenues and has accumulated losses of $90,788 since inception. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company's ability to continue as a going concern.

2.         Summary of Significant Accounting Policies

a)         Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in U.S. Dollars. The Company's fiscal year-end is December 31.

b)         Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

c)         Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

d)         Exploration and Development Costs

The Company has been in the exploration stage since its formation on September 20, 2000 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition and exploration costs are charged to operations as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve.



- 20 -

---

Dravco Mining Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
December 31, 2005 and 2004
(Expressed in U.S. Dollars)

2.         Summary of Significant Accounting Policies (continued)

e)         Financial Instruments

The carrying value of cash, accounts payable, accrued liabilities and due to related party approximates their fair value because of the short-term maturity of these instruments.

f)         Concentration of Credit Risk

Financial instruments that potentially subject the Company to credit risk consist principally of cash. Cash was deposited with a high quality credit institution.

g)         Foreign Currency Translation

The Company's functional and reporting currency is the United States dollar. Occasional transitions may occur in Canadian dollars and management has adopted SFAS No. 52 "Foreign Currency Translation". Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

h)         Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

i)         Stock-based Compensation

The Company records stock-based compensation in accordance with SFAS No. 123, "Accounting for Stock-Based Compensation". All transactions in which goods or services are provided to the Company in exchange for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. The Company does not currently have a stock option plan.

j)         Comprehensive Loss

SFAS No. 130, "Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2005 and 2004, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.



- 21 -

---

Dravco Mining Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
December 31, 2005 and 2004
(Expressed in U.S. Dollars)

2.         Summary of Significant Accounting Policies (continued)

k)         Basic and Diluted Net Income (Loss) Per Share

The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

l)         Recent Accounting Pronouncements

In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154, "Accounting Changes and Error Corrections - A Replacement of APB Opinion No. 20 and SFAS No. 3". SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company's results of operations or financial position.

In December 2004, the FASB issued SFAS No. 123 (Revised 2004) ("SFAS No. 123R"), "Share-Based Payment." SFAS No. 123R requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued. SFAS No. 123R represents the culmination of a two-year effort to respond to requests from investors and many others that the FASB improve the accounting for share-based payment arrangements with employees. The scope of SFAS No.123R includes a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. SFAS No. 123R replaces SFAS No. 123, "Accounting for Stock-Based Compensation", and supersedes APB Opinion No. 25, "Accounting for Stock Issued to Employees".SFAS No.123, as originally issued in 1995, established as preferable a fair-value-based method of accounting for share-based payment transactions with employees. However, that statement permitted entities the option of continuing to apply the guidance in APB Opinion No. 25, as long as the footnotes to the financial statements disclosed what net income would have been had the preferable fair-value-based method been used. Although those disclosures helped to mitigate the problems associated with accounting under APB Opinion No. 25, many investors and other users of financial statements believed that the failure to include employee compensation costs in the income statement impaired the transparency, comparability, and credibility of financial statements. Public entities that file as small business issuers will be required to apply Statement 123R in the first interim or annual reporting period that begins after December 15, 2005. The adoption of this standard is not expected to have a material impact on the Company's results of operations or financial position.



- 22 -

---

Dravco Mining Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
December 31, 2005 and 2004
(Expressed in U.S. Dollars)

2.         Summary of Significant Accounting Policies (continued)

l)         Recent Accounting Pronouncements (continued)

In December 2004, the FASB issued SFAS No. 153,"Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29". SFAS No. 153 is the result of a broader effort by the FASB to improve financial reporting by eliminating differences between GAAP in the United States and GAAP developed by the International Accounting Standards Board (IASB). As part of this effort, the FASB and the IASB identified opportunities to improve financial reporting by eliminating certain narrow differences between their existing accounting standards. SFAS No. 153 amends APB Opinion No. 29, "Accounting for Nonmonetary Transactions",that was issued in 1973. The amendments made by SFAS No. 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have "commercial substance." Previously, APB Opinion No. 29 required that the accounting for an exchange of a productive asset for a similar productive asset or an equivalent interest in the same or similar productive asset should be based on the recorded amount of the asset relinquished. The provisions in SFAS No.153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The effect of adoption of this standard is not expected to have a material impact on the Company's results of operations and financial position.

m)         Reclassifications

Certain reclassifications have been made to the prior period's financial statements to conform to the current period's presentation.

3.         Mineral Properties

In July 2000, the Company, through its President and director, acquired 100% of the rights, title and interest in ten mining claims located in the Osoyoos Mining Division of the Province of British Columbia, Canada. The claims are registered in the name of the President of the Company, who is holding the claims in trust on behalf of the Company.

4.         Related Party Transactions/Balances

a)         The amount of $43,127 (2004 - $43,127) owing to the President of the Company is unsecured, non-interest bearing and due on demand.

b)         The President of the Company provides office premises to the Company at no charge. Office premises are valued at $100 per month. During the year ended December 31,              2005, donated rent of $1,200 was recorded.

5.         Common Stock

In March 2004, the Company issued 4,000,000 shares of common stock at $0.05 per share for cash proceeds of $200,000 pursuant to an SB-2 Registration Statement.



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Dravco Mining Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
December 31, 2005 and 2004
(Expressed in U.S. Dollars)

6.         Income Taxes

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has incurred net operating losses of $89,588, which commence expiring in 2020. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

The components of the net deferred tax asset at December 31, 2005 and 2004 and the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are indicated below:



|                                     |  | 2005
$   |  | 2004
$  
|------------------------------------ |  | -------- |  | --------
|                                     |  |          |  |         
|Net Operating Losses Carried Forward |  | 89,588   |  | 64,878  
|                                     |  |          |  |         
|Statutory Tax Rate                   |  | 35%      |  | 35%     
|                                     |  |          |  |         
|Effective Tax Rate                   |  | -        |  | -       
|                                     |  |          |  |         
|Deferred Tax Asset                   |  | 31,356   |  | 22,707  
|                                     |  |          |  |         
|Valuation Allowance                  |  | (31,356) |  | (22,707)
|                                     |  |          |  |         
|Net Deferred Tax Asset               |  | -        |  | -       

















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8.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

There have been no disagreements on accounting and financial disclosures from the inception of the Company through the date of this Form 10-KSB.  Our financial statements for the fiscal year ended December 31, 2004 were audited by Vellmer Chang (formerly Hoogendoorn Vellmer), Chartered Accountants, 815 Hornby Street, Suite 505, Vancouver, British Columbia Canada V6Z 2E6.   On April 14, 2005, Vellmer Chang notified us that they were resigning as our auditors due to the partner rotational requirements of the Securities Act and the Independence Board.   Our financial statements for the fiscal year ended December 31, 2005 included in this report have been audited by Manning Elliott LLP, Chartered Accountants, 11th Floor, 1050 Wet Pender Street, Vancouver, British Columbia Canada V6E 3S7 as set forth in their report included herein.

Item 8A.     Controls and Procedures.

(a)     Evaluation of Disclosure Controls and Procedures:  Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based upon and as of the date of that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

(b)     Changes in Internal Control over Financial Reporting:  There were no changes in the Company's internal control over financial reporting identified in connection with the Company evaluation of these controls as of the end of the period covered by this report that could have significantly affected those controls subsequent to the date of the evaluation referred to in the previous paragraph, including any correction action with regard to significant deficiencies and material weakness.

There were no significant changes in the Company's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.

Item 8B.     Other Information.

None







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PART III

Item 9.     Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act.

Identification of Directors and Executive Officers

|Name            | Age | Title                                                                           
|--------------- | --- | --------------------------------------------------------------------------------
|Rodney Lozinski | 51  | Chief Executive Officer, Chief Financial Officer, President, Secretary, Director

Background of Officers and Directors

Mr. Rodney Lozinski, age 51 - Rodney L. Lozinski has been our president, secretary, treasurer, principal accounting officer and sole member of our board of directors since inception.  For the last nineteen years, Mr. Lozinski, with his wife, has owned and operated businesses specializing in custom designing trees, plants and floral for homes and businesses.  Florals by Doctor Plant (established 1979) is located in Saskatoon, Saskatchewan, Canada.  Creative Plant Interiors (established 1992) is a division of Florals by Doctor Plant and operates out of Saskatoon, Saskatchewan, Canada.  Mr. Lozinski was involved in the creation and maintenance of two worldwide websites that involves the manufacturing and shipping globally of plants and home decorating products (www.silkplantscanada.com).

Involvement in Certain Legal Proceedings

To the best of the registrant's knowledge, during the past five years, no director, executive officer, promoter or control person of the Company:

(1)     has any bankruptcy petition filed by or against any business of which the director, executive officer, promoter or control person was a general partner or executive officer either at the time of bankruptcy or within two years prior to that time;

(2)     was convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

(3)     was the subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities;

(4)     was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described above under this Item, or to be associated with persons engaged in any such activity;



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(5)     was found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

Compliance with Section 16(a) of the Exchange Act

The director, officer and person who beneficially owned more than ten percent of the Company's common stock filed timely reports in compliance with Section 16(a).

Audit Committee

We do not have an audit committee or an audit committee charter.

Audit Committee Financial Expert

We do not have an audit committee financial expert.  We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive.  Further, because of our limited operations, we believe the services of a financial expert are not warranted at this time.

Code of Ethics

The Company has adopted a code of business conduct and ethics for directors, officers and employees.

Family Relationships

There are no family relationships amongst or between the directors and executive officers.

Item 10.	Executive Compensation.

The following table sets forth information with respect to compensation paid by the Company to our sole officer and director for the three fiscal years ended December 31, 2005, 2004 and 2003.  This information includes the dollar value of base salaries, bonus awards and number of stock options granted, and certain other compensation, if any.







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SUMMARY COMPENSATION TABLE



|                                                          | Annual Compensation        | Long Term Compensation |          
|--------------------------------------------------------- | -------------------------- | ---------------------- | ---------
|Awards                                                    | Payouts                   
|(a)                                                       | (b)                        | (c)                    | (d)      
|Name and Principal Position                               | Year                       | Salary
 ($)            | Bonus
($)
|Rodney 
Lozininski, CEO
CFO, President
Secretary
Director | 12/31/05
12/31/04
12/31/03 | 0
0
0                  | 0
0
0    

There are no employment agreements with our sole officer and director and none are being contemplated.

The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our named director and executive officer.

There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our director and officer.

Options/SAR Grants

No individual grants of stock options, whether or not in tandem with stock appreciation rights ("SARs") and freestanding SARs have been made to any executive officers, or any directors or employees during the current fiscal year.

Long-Term Incentive Plan Awards

The Company does not have any long-term incentive plans that provide compensation intended to serve as incentive for performance to occur over a period longer than one fiscal year, whether such performance is measured by reference to the Company's financial performance, stock price or any other measure.

Compensation of Directors

There are no other standard arrangements pursuant to which the Company's directors are compensated for services provided as directors.  The director has not been paid any compensation for services provided as a director.  No additional amounts are payable to the Company's directors for committee participation or special assignments.

Employment Contracts and Termination of Employment and Change-in-Control Arrangements

None



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Report on Repricing of Options/SAR

The Company did not reprice any options or SARs during the year ended December 31, 2005.

Item 11.     Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth the beneficial shareholdings of those persons or entities who beneficially hold five percent or more of the Company's common stock, and our directors and executive officers as a group, as of January 12, 2006, with the computation being based upon 9,000,000 shares of common stock being outstanding.  Each person has sole voting and investment power with respect to the shares of common stock shown and all ownership is of record and beneficial.

|Name and Address                                                                                             | Number of Shares Beneficially Owned | Percentage of Class
|------------------------------------------------------------------------------------------------------------ | ----------------------------------- | -------------------
|Rodney Lozinski
451 Penryn Court
Saskatoon, Saskatchewan S7H 5G8
CEO, CFO, President, Secretary and Director | 5,000,000                           | 55.55%             

All directors and executive officers as a group (1 person) hold 5,000,000 common shares.

Changes in Control

To the knowledge of management, there are no other present arrangements or pledges of the Company's securities, which may result in a change of control of the Company.

Securities Authorized for Issuance Under Compensatory Plans

None

Item 12.     Certain Relationships and Related Transactions.

Certain Business Relationships

There were no material transactions, series of similar transactions, to which the Company or any of its subsidiaries was or is to be a party, in which the amount involved exceeded $60,000 and in which any director or executive officer, or any security holder who is known to the Company to own of record or beneficially more than five percent of the Company's common stock, or any member of the immediate family of any of the foregoing persons, had a material interest.



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Item 13.     Exhibits.

The following exhibits are filed with this report:

Exhibit No.         Description

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

Exhibits Incorporated by Reference

The following documents are incorporated herein by reference from the Company's Form 10-KSB and amendments thereto from the year ended December 31, 2003.

Exhibit No.     Description

14.1     Code of Ethics

The following documents are incorporated herein by reference from the Company's SB2 Registration Statement - Amendment 4 filed with the Securities and Exchange Commission, SEC file #333-54044 on October 10, 2002.  Such exhibits are incorporated herein by reference pursuant to Rule 12b-32.

Exhibit No.     Description

3.1     Certificate of Amendment of Articles of Incorporation - Name Change to Dravco Mining Inc.
3.2     Amended Bylaws
99.2   Escrow Agreement with Signature Stock Transfer Inc.

The following documents are incorporated herein by reference from the Company's SB2 Registration Statement filed with the Securities and Exchange Commission, SEC file #333-54044 on January 19, 2001.  Such exhibits are incorporated herein by reference pursuant to Rule 12b-32.

Exhibit No.     Description

3.3     Articles of Incorporation of Dundee Mining Inc.
3.4     Bylaws of Dundee Mining Inc.
4.1     Specimen Stock Certificate
10.1   Trust Agreement
10.2   Bill of Sale Absolute
99.1   Sample Subscription Agreement

Reports on Form 8-K

Resignation of Director and Officer (incorporated by reference from Form 8-K filed on December 2, 2005)



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Item 14.     Principal Accounting Fees and Services.

The following table sets forth fees for services Manning Elliott LLP, Chartered Accountants provided during fiscal year 2005 and Vellmer & Chang (formerly Hoogendoorn Vellmer), Chartered Accountants provided during fiscal year 2004:



|                       | 2005    | 2004   
|---------------------- | ------- | -------
|Audit Fees (1)         | $ 7,000 | $ 4,901
|Audit-related fees (2) |         |        
|Tax fees (3)           | $ 750   | $ 449  
|All other fees (4)     |         |        
|                       |         |        
|Total                  | $ 7,750 | $ 5,350

(1)     Represents fees for professional services provided in connection with the audit of the Company's annual financial statements and review of the           Company's quarterly financial statements, advice on accounting matters that arose during the audit and audit services.

(2)     During fiscal 2005 and 2004, the Company did not incur fees for assurance and related services that are reasonably related to the performance of the            audit or review of financial statements and are not reported elsewhere.

(3)     Represents fees for services and advice provided in connection with the preparation of the Company's federal and state tax returns.

(4)     During fiscal 2005 and 2004, the Company did not incur any other fees related to the Company's financial statements and other services provided.





















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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

In accordance with the Exchange Act, this report has been signed below by the following person on behalf of the registrant and in the capacities and on the dated indicated.

|RODNEY LOZINSKI             Date: March 23, 2006                                           
|-------------------------------------------------------------------------------------------
|Rodney Lozinski                                                                            
|President, Principal Executive Officer, Treasurer, Principal Financial                     
|Officer, Principal Accounting Officer, Secretary and sole member of the Board of Directors.

































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