---

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

FORM 10-QSB

(Mark One)

[X]Quarterly Report under Section 13 or 15(d) of the Securities
  Exchange Act of 1934 
  For the quarterly period ended June 30, 2007

[ ]Transition Report under Section 13 or 15(d) of the
  Exchange Act 
  For the transition period from _______ to _______

Commission File Number000-50033

IRELAND INC.(Exact name of small
business issuer as specified in its charter)

|NEVADA                          | 91-2147049                       
|------------------------------- | ---------------------------------
|(State or other jurisdiction of | (IRS Employer Identification No.)
|incorporation or organization)  |                                  

2441 West Horizon Ridge Parkway, Suite 100Henderson, NV 89052(Address of principal executive offices)

(702) 932-0353(Issuers telephone number)

810 Peace Portal Drive, Suite 201
  Blaine, Washington 98230Tel: (360) 318-3020(Former name, former address and former fiscal year end, if changed since
  last report)

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 issuer was required to file such reports),
  and (2) has been subject to such filing requirements for the past 90 days. Yes
  [X] No [ ]

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 the number of shares outstanding of each of the issuers
  classes of common equity, as of the latest practicable date: As of August
  14, 2007, the Registrant had 77,928,500 shares of common stock issued and outstanding.

Transitional Small Business Disclosure Format (check one): Yes
  [ ]    No [X]

1

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PART I  FINANCIAL INFORMATION

|ITEM 1. | FINANCIAL STATEMENTS.
|------- | ---------------------

2

---

IRELAND INC.(An Exploration Stage Company)

FINANCIAL STATEMENTS

JUNE 30, 2007(Unaudited)



F-1

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|BALANCE SHEETS                
|(Unaudited)                   

|                                                           |   | JUNE
      30 |   |   | DECEMBER 31 |  
|---------------------------------------------------------- | - | ------------- | - | - | ----------- | -
|                                                           |   | 2007          |   |   | 2006        |  
|                                                           |   |               |   |   |             |  
|ASSETS                                                     |   |               |   |   |             |  
|                                                           |   |               |   |   |             |  
|Current Assets                                             |   |               |   |   |             |  
|Cash                                                       | $ | 3,944,215     |   | $ | 11,633      |  
|Prepaid expenses                                           |   | 950           |   |   | -           |  
|                                                           |   | 3,945,165     |   |   | 11,633      |  
|Reclamation Deposit(Note 4)                                |   | 807,000       |   |   | -           |  
|                                                           |   |               |   |   |             |  
|Total Assets                                               | $ | 4,752,165     |   | $ | 11,633      |  
|                                                           |   |               |   |   |             |  
|LIABILITIES AND STOCKHOLDERS
      EQUITY (DEFICIT)       |   |               |   |  
|                                                           |   |               |   |   |             |  
|Current Liabilities                                        |   |               |   |   |             |  
|Accounts payable and accrued liabilities                   | $ | 21,547        |   | $ | 49,271      |  
|Due to related parties                                     |   | 23,290        |   |   | 21,790      |  
|                                                           |   |               |   |   |             |  
|Total Liabilities                                          |   | 44,837        |   |   | 71,061      |  
|                                                           |   |               |   |   |             |  
|STOCKHOLDERS EQUITY (DEFICIT)                             |   |               |   |   |             |  
|                                                           |   |               |   |   |             |  
|Capital Stock                                              |   |               |   |   |             |  
|Authorized:                                                |   |               |   |   |             |  
|400,000,000 common voting stock with a par value of        |   |               |   |   |             |  
|$0.001 per share                                           |   |               |   |   |             |  
|                                                           |   |               |   |   |             |  
|Issued:                                                    |   |               |   |   |             |  
|40,816,000 common shares (December 31, 2006                |   |               |   |   |             |  
|36,550,000 common shares)                                  |   | 40,816        |   |   | 36,550      |  
|                                                           |   |               |   |   |             |  
|Additional Paid-in Capital                                 |   | 3,879,271     |   |   | 202,200     |  
|Subscriptions Received                                     |   | 2,100,079     |   |   | -           |  
|Deficit Accumulated During The Exploration Stage           |   | (1,312,838    | ) |   | (298,178    | )
|                                                           |   |               |   |   |             |  
|Total Stockholders Equity (Deficit)                       |   | 4,707,328     |   |   | (59,428     | )
|                                                           |   |               |   |   |             |  
|Total Liabilities
      and Stockholders Equity (Deficit) | $ | 4,752,165     |   | $ | 11,633      |  

The accompanying notes are an integral part of these financial
  statements.

F-2

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|STATEMENTS OF OPERATIONS      
|(Unaudited)                   

|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   | CUMULATIVE  |  
|---------------------------------- | - | ------------ | - | - | ---------------- | - | - | ---------- | - | - | ----------- | - | - | ----------- | -
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   | PERIOD FROM |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   | INCEPTION   |  
|                                   |   | THREE        |   |   |                  |   |   |            |   |   | FEBRUARY 20 |  
|                                   |   | MONTHS ENDED |   |   | SIX MONTHS ENDED |   |   | 2001 TO    |  
|                                   |   | JUNE 30      |   |   | JUNE 30          |   |   | JUNE 30    |  
|                                   |   | 2007         |   |   | 2006             |   |   | 2007       |   |   | 2006        |   |   | 2007        |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Revenue                            | $ | -            |   | $ | -                |   | $ | -          |   | $ | -           |   | $ | -           |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Expenses                           |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Administrative fees                |   | 464          |   |   | -                |   |   | 5,476      |   |   | -           |   |   | 24,944      |  
|Consulting fees                    |   | -            |   |   | 10,000           |   |   | 1,832      |   |   | 10,000      |   |   | 41,832      |  
|Discount on issue of shares (Notes |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|5(b)
      and 5(c))               |   | 901,620      |   |   | -                |   |   | 901,620    |   |   | -           |   |   | 901,620     |  
|Geological consulting              |   | 46,000       |   |   | -                |   |   | 46,000     |   |   | -           |   |   | 56,856      |  
|Office and sundry                  |   | 222          |   |   | 690              |   |   | 222        |   |   | 793         |   |   | 4,685       |  
|Professional fees                  |   | 40,986       |   |   | 14,414           |   |   | 51,257     |   |   | 28,017      |   |   | 225,676     |  
|Regulatory fees                    |   | 6,881        |   |   | 954              |   |   | 7,653      |   |   | 2,720       |   |   | 22,271      |  
|Rent                               |   | 300          |   |   | 300              |   |   | 600        |   |   | 600         |   |   | 14,700      |  
|Travel                             |   | -            |   |   | -                |   |   | -          |   |   | -           |   |   | 6,254       |  
|Write off of mineral rights        |   | -            |   |   | -                |   |   | -          |   |   | -           |   |   | 14,000      |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Net Loss For The
      Period      | $ | (996,473     | ) | $ | (26,358          | ) | $ | (1,014,660 | ) | $ | (42,130     | ) | $ | (1,312,838  | )
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Basic And Diluted Loss Per Share   | $ | (0.03        | ) | $ | 0.00             |   | $ | (0.03      | ) | $ | 0.00        |   |   |             |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|                                   |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Weighted Average Number Of Shares  |   |              |   |   |                  |   |   |            |   |   |             |   |   |             |  
|Outstanding                        |   | 37,018,792   |   |   | 36,550,000       |   |   | 36,785,690 |   |   | 36,550,000  |   |   |             |  

The accompanying notes are an integral part of these financial
  statements.

F-3

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|STATEMENTS OF CASH FLOWS      
|(Unaudited)                   

|                                              |   |                  |   |   |         |   |   | CUMULATIVE  |  
|--------------------------------------------- | - | ---------------- | - | - | ------- | - | - | ----------- | -
|                                              |   |                  |   |   |         |   |   | PERIOD FROM |  
|                                              |   |                  |   |   |         |   |   | INCEPTION   |  
|                                              |   |                  |   |   |         |   |   | FEBRUARY 20 |  
|                                              |   | SIX MONTHS ENDED |   |   | 2001 TO |  
|                                              |   | JUNE 30          |   |   | JUNE 30 |  
|                                              |   | 2007             |   |   | 2006    |   |   | 2007        |  
|                                              |   |                  |   |   |         |   |   |             |  
|Cash Provided By (Used In):                   |   |                  |   |   |         |   |   |             |  
|                                              |   |                  |   |   |         |   |   |             |  
|Operating Activities                          |   |                  |   |   |         |   |   |             |  
|Net loss                                      | $ | (1,014,660       | ) | $ | (42,130 | ) | $ | (1,312,838  | )
|Add: Items to reconcile
      net loss to net |   |                  |   |   |         |   |   |             |  
|cash
      used in operating activities:      |   |                  |   |   |         |   |   |             |  
|Discount on issue of shares                   |   | 901,620          |   |   | -       |   |   | 901,620     |  
|Write off of mineral rights                   |   | -                |   |   | -       |   |   | 14,000      |  
|Consulting accrual                            |   | -                |   |   | -       |   |   | 15,000      |  
|Stock based compensation                      |   | 6,817            |   |   | -       |   |   | 6,817       |  
|Changes in operating
      assets and         |   |                  |   |   |         |   |   |             |  
|liabilities:                                  |   |                  |   |   |         |   |   |             |  
|Accounts payable and accrued                  |   |                  |   |   |         |   |   |             |  
|liabilities                                   |   | (27,724          | ) |   | 13,490  |   |   | 21,547      |  
|Prepaid expenses                              |   | (950             | ) |   | -       |   |   | (950        | )
|                                              |   | (134,897         | ) |   | (28,640 | ) |   | (354,804    | )
|                                              |   |                  |   |   |         |   |   |             |  
|Financing Activities                          |   |                  |   |   |         |   |   |             |  
|Issuance of common
      stock                |   | 2,772,900        |   |   | -       |   |   | 3,011,650   |  
|Subscriptions received                        |   | 2,100,079        |   |   | -       |   |   | 2,100,079   |  
|Advances from related
      parties           |   | 1,500            |   |   | -       |   |   | 8,290       |  
|                                              |   | 4,874,479        |   |   | -       |   |   | 5,120,019   |  
|                                              |   |                  |   |   |         |   |   |             |  
|Investing Activity                            |   |                  |   |   |         |   |   |             |  
|Reclamation deposit                           |   | (807,000         | ) |   | -       |   |   | (821,000    | )
|                                              |   |                  |   |   |         |   |   |             |  
|Increase (Decrease) In Cash                   |   | 3,932,582        |   |   | (28,640 | ) |   | 3,944,215   |  
|                                              |   |                  |   |   |         |   |   |             |  
|Cash, Beginning Of Period                     |   | 11,633           |   |   | 63,242  |   |   | -           |  
|                                              |   |                  |   |   |         |   |   |             |  
|Cash, End Of Period                           | $ | 3,944,215        |   | $ | 34,602  |   | $ | 3,944,215   |  
|                                              |   |                  |   |   |         |   |   |             |  
|Supplemental Disclosure Of Cash Flow          |   |                  |   |   |         |   |   |             |  
|Information                                   |   |                  |   |   |         |   |   |             |  
|Cash paid during
      the period for:        |   |                  |   |   |         |   |   |             |  
|Interest paid                                 | $ | -                |   | $ | -       |   | $ | -           |  
|Income taxes paid                             | $ | -                |   | $ | -       |   | $ | -           |  

The accompanying notes are an integral part of these financial
  statements.

F-4

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|1. | BASIS OF PRESENTATION                     
|-- | ------------------------------------------
|   |                                           
|   | a)                                        
|   |                                           
|   | b)                                        
|   |                                           
|   |                                           
|   |                                           
|   |                                           
|   |                                           
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|   |                                           
|   | a)                                        
|   |                                           
|   |                                           

F-5

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------
|   |                                                      
|   | b)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | c)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | d)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | e)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | f)                                                   
|   |                                                      
|   |                                                      

F-6

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------
|   |                                                      
|   | g)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | h)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | i)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | j)                                                   
|   |                                                      
|   |                                                      

F-7

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------
|   |                                                      
|   | j)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   | k)                                                   
|   |                                                      
|   |                                                      
|   |                                                      
|   |                                                      
|   |                                                      
|   |                                                      

| |                         |  | 2007    |  |  | 2006 | 
| | ----------------------- |  | ------- |  |  | ---- | 
| |                         |  |         |  |  |      | 
| | Dividend yield          |  | -       |  |  | -    | 
| | Expected volatility     |  | 120.24% |  |  | -    | 
| | Risk-free interest rate |  | 4.05%   |  |  | -    | 
| | Expected life (years)   |  | 2       |  |  | -    | 

The weighted average fair value per
  share of options granted in the period was $0.0018 (2006  Nil).

F-8

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | l)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3. | RECENT ACCOUNTING PRONOUNCEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | In February 2007, the Financial Accounting
        Standards Board (FASB) issued SFAS No. 159, The Fair
        Value Option For Financial Assets And Financial Liabilities - - Including
        An Amendment Of FASB Statement No. 115. This pronouncement permits
        entities to use the fair value method to measure certain financial assets
        and liabilities by electing an irrevocable option to use the fair value
        method at specified election dates. After election of the option, subsequent
        changes in fair value would result in the recognition of unrealized gains
        or losses as period costs during the period the change occurred. SFAS
        No. 159 becomes effective as of the beginning of the first fiscal year
        that begins after November 15, 2007, with early adoption permitted. However,
        entities may not retroactively apply the provisions of SFAS No. 159 to
        fiscal years preceding the date of adoption. The Company is currently
        evaluating the impact that SFAS No. 159 may have on the financial position,
        results of operations and cash flows of the Company.

F-9

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|4. | MINERAL EXPLORATION PROPERTY
|-- | ----------------------------
|   |                             
|   | a)                          
|   |                             
|   |                             
|   |                             
|   | b)                          
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             

F-10

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|4. | MINERAL EXPLORATION PROPERTY(Continued)
|-- | ---------------------------------------
|   |                                        
|   |                                        
|   |                                        
|   |                                        

|5. | SHARE CAPITAL
|-- | -------------
|   |              
|   | a)           
|   |              
|   | b)           

F-11

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|5. | SHARE CAPITAL(Continued)
|-- | ------------------------
|   |                         
|   | c)                      
|   |                         
|   | d)                      
|   |                         
|   |                         
|   |                         
|   |                         

| |                         |  |           |  |   | WEIGHTED |  |  |             |  |   |           | 
| | ----------------------- |  | --------- |  | - | -------- |  |  | ----------- |  | - | --------- | 
| |                         |  |           |  |   | AVERAGE  |  |  | REMAINING   |  |   |           | 
| |                         |  | NUMBER OF |  |   | EXERCISE |  |  | CONTRACTUAL |  |   | INTRINSIC | 
| |                         |  | OPTIONS   |  |   | PRICE    |  |  | LIFE        |  |   | VALUE     | 
| |                         |  |           |  |   |          |  |  |             |  |   |           | 
| | Outstanding, January 1, |  |           |  |   |          |  |  |             |  |   |           | 
| | 2007                    |  | -         |  | $ | -        |  |  |             |  |   |           | 
| |                         |  |           |  |   |          |  |  |             |  |   |           | 
| | Granted                 |  | 3,720,000 |  |   | 0.05     |  |  |             |  |   |           | 
| |                         |  |           |  |   |          |  |  |             |  |   |           | 
| | Outstanding, June 30,   |  |           |  |   |          |  |  |             |  |   |           | 
| | 2007                    |  | 3,720,000 |  | $ | 0.05     |  |  | 1.75        |  | $ | 6,138,000 | 
| |                         |  |           |  |   |          |  |  |             |  |   |           | 
| | Exercisable, June 30,   |  |           |  |   |          |  |  |             |  |   |           | 
| | 2007                    |  | 3,720,000 |  | $ | 0.05     |  |  | 1.75        |  | $ | 6,138,000 | 

F-12

---

|IRELAND INC.                  
|------------------------------
|(An Exploration Stage Company)
|                              
|NOTES TO FINANCIAL STATEMENTS 
|                              
|JUNE 30, 2007                 
|(Unaudited)                   

|5. | SHARE CAPITAL(Continued)
|-- | ------------------------
|   |                         
|   | e)                      

| | NUMBER    |          |              
| | --------- | -------- | -------------
| | OF SHARES |          |              
| | UNDER     | EXERCISE | EXPIRY       
| | WARRANTS  | PRICE    | DATE         
| |           |          |              
| | 4,266,000 | $ 1.00   | June 20, 2008

The aggregate fair value of the warrants
  issued in connection with the unit offerings approved April 24, 2007 amounted
  to $277,290 and was calculated using the Black-Scholes option pricing model
  with the following assumptions:

| | Dividend yield          | 0%    
| | ----------------------- | ------
| | Expected volatility     | 120%  
| | Risk-free interest rate | 4.2%  
| | Expected life           | 1 year

|6. | SUBSEQUENT EVENTS
|-- | -----------------
|   |                  
|   | a)               
|   |                  
|   | b)               
|   |                  
|   | c)               
|   |                  
|   | d)               

F-13

---

|ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
      OF OPERATION.
|------- | ----------------------------------------------------------------

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS

Certain statements contained in this Form 10-QSB constitute
"forward-looking statements. These statements, identified by words such as
plan, "anticipate, "believe, "estimate, "should, "expect" and similar
expressions include our expectations and objectives regarding our future
financial position, operating results and business strategy. These statements
reflect the current views of management with respect to future events and are
subject to risks, uncertainties and other factors that may cause our actual
results, performance or achievements, or industry results, to be materially
different from those described in the forward-looking statements. Such risks and
uncertainties include those set forth under this Item 2 "Management's Discussion
and Analysis or Plan of Operation" and elsewhere in this Form 10-QSB. We do not
intend to update the forward-looking information to reflect actual results or
changes in the factors affecting such forward-looking information. We advise you
to carefully review the reports and documents we file from time to time with the
Securities and Exchange Commission (the SEC), particularly our annual reports
on Form 10-KSB, our quarterly reports on Form 10-QSB and our current reports on
Form 8-K.

As used in this Quarterly Report, the terms "we, "us, "our,
Company and Ireland mean Ireland Inc. unless otherwise indicated. All dollar
amounts in this Quarterly Report are in U.S. dollars unless otherwise stated.

INTRODUCTION

We were incorporated on February 20, 2001 under the laws of the
State of Nevada. On April 25, 2007, we effected a 4-for-1 stock split of our
common stock. As a result, our authorized capital was increased from 100,000,000
shares of common stock, par value $0.001 per share, of which 9,137,500 shares
were issued and outstanding, to 400,000,000 shares of common stock, par value
$0.001 per share, of which 36,550,000 shares were issued and outstanding. In
connection with the stock split, our trading symbol on the OTC Bulletin Board
was changed to IRLD. All share amounts referred to in this Quarterly Report on
Form 10-QSB have been adjusted to reflect the split.

We are an exploration stage company engaged in the acquisition,
exploration and development of mineral properties. We currently own a 100%
interest in a mineral claim located in the Yellow Pine Mining District in Clark
County, Nevada that we refer to as the Ireland Claim. As of August 14, 2007, we
acquired interests in two additional mineral projects that we refer to as the
Columbus Project and the Red Mountain Project. See The Columbus and Red
Mountain Project, below.

Recent Corporate Developments

The following significant corporate developments have occurred
since March 31, 2007, the end of our last fiscal quarter:

|1. | On April 24, 2007, our Board of Directors approved a private
        placement offering (the Foreign Offering) of up to 10,000,000
        units (Units) at a price of $0.65 US per Unit to be made to
        persons other than U.S. persons as defined in Regulation S
        promulgated under the Securities Act of 1933 (the Securities Act).
        Each Unit offered consists of one post- split share of our common stock
        and one-half of one share purchase warrant. Each whole warrant entitles
        the holder to purchase one additional post-split share of common stock
        exercisable for a period of 12 months at a price of $1.00 US per share.
        We will have the
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|   | option to accelerate the exercise term of the warrants in
      circumstances where our common stock trades at a weighted average price
      above $2.50 for twenty consecutive trading days. On June 20, 2007, we
      issued 2,016,000 Units under the Foreign Offering to non-U.S. Persons as
      contemplated under Regulation S of the Securities Act. On July 20, 2007,
      we completed a second tranche under the Foreign Offering and issued
      3,150,500 Units to non-US persons as contemplated under Regulation S of
      the Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | Also on April 24, 2007, our Board of Directors approved a
      second private placement offering (the U.S. Offering) of up to
      10,000,000 Units at a price of $0.65 per Unit to be made to persons who
      qualify as accredited investors as defined in Regulation D of the
      Securities Act. The Units being offered are identical to those offered
      under the Foreign Offering described above. On June 20, 2007, we issued
      2,250,000 Units under the U.S. Offering to accredited investors as
      defined in Rule 506 of Regulation D of the Securities Act. These share
      issuances did not include any Units sold under the Agency Agreement
      described below. On July 20, 2007, we completed a second tranche under the
      U.S. Offering and issued a further 3,962,000 Units to accredited
      investors. We paid a commission of $161,752.20 to S&P Investors Inc.
      in connection with the sale of 3,550,000 Units under the second tranche of
      the U.S. Offering. (See below.)
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3. | On June 19, 2007, we entered into an agency agreement
      (the Agency Agreement) with S&P Investors, Inc. (the Agent) to act
      as our agent to introduce investors to the U.S. Offering. Under the terms
      of the Agency Agreement, we agreed to pay a commission to the Agent of 7%
      of the proceeds of the Units placed by the Agent and to issue to the Agent
      a warrant entitling the Agent to purchase (at an exercise price of $1.00
      per share) for a period of two years from closing of the U.S. Offering
      such number of shares of common stock as shall be equal to 3% of the total
      number of Units placed by the Agent.                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|4. | On June 29, 2007, Lorrie Ann Archibald resigned as our
      Chief Executive Officer and President and as our sole director. Replacing
      Ms. Archibald was Douglas D.G. Birnie who, since March 30, 2007, has been
      acting as our Secretary. The resignation of Ms. Archibald, and the
      appointment of Mr. Birnie, as Chief Executive Officer, President and sole
      director was completed in anticipation of our completing the acquisition
      of certain rights and interests in the Columbus and Red Mountain Projects,
      the details of which are set out below.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|5. | On August 14, 2007, we completed the acquisition of
      rights to certain mineral properties located in Esmeralda County, Nevada
      (the Columbus Project) and San Bernardino, California (the Red Mountain
      Project) from Nanominerals Corp. (Nano). We acquired these rights
      pursuant to the terms of our assignment agreement with Nano and Ms.
      Archibald, dated as of March 29, 2007 and as amended on August 8, 2007. A
      description of the Columbus and Red Mountain Projects and the
      consideration we paid for our rights to these projects is described
      below.                                                                                                                                                                                                                                                                                                                                                                                                                              

The Columbus and Red Mountain Projects

On March 30, 2007, we entered into an assignment agreement (the
Nano Agreement) dated for reference as of March 29, 2007, with Nano Minerals
Corp. (Nano), pursuant to which Nano agreed to assign to us its rights to the
Columbus Project and the Red Mountain Project. The terms of the Nano Agreement
were amended pursuant to an Amendment Agreement entered into on August 8, 2007.
The assignments were completed on August 14, 2007. In consideration for the
assignment of Nanos rights to the Columbus and Red Mountain Projects, we:

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| | (a) | issued an aggregate of 30,000,000 shares of our common
      stock to Nano and to certain business associates of Nano (including
      1,200,000 shares to Robert D. McDougal, currently our Chief Financial
      Officer);                                                                                                                                         
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                      
| | (b) | granted a royalty to Nano of 5% of net smelter returns,
      if any, from the Columbus and Red Mountain Projects and from any future
      mineral projects that may be assigned or transferred to us by
  Nano;                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                      
| | (c) | assumed all of the obligations of Nano under the terms of
      the Columbus and Red Mountain Option Agreements, the details of which are
      set out below; and                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                      
| | (d) | In addition to the above, we have agreed to reimburse
      Nano for any of its properly documented expenditures on the Columbus and
      Red Mountain Projects, not just those from January 1, 2007 and March 29,
      2007, as previously agreed to. We estimate that we will be required to
      reimburse Nano a total of $1,000,000 for these
  expenditures.

In addition, at Nanos request we have forwarded to Columbus
S.M. LLC (CSM) a total of $1,355,000 in respect of the Columbus Option
Agreement.

In connection with the assignments, Lorrie Ann Archibald also
sold 18,200,000 shares of our common stock to Nano at a price of $0.0025 per
share. These shares represent all of the shares of our common stock owned by Ms.
Archibald.

As a result of the assignments, we now hold the following
option rights:

| | (a) | an option to acquire up to a 15% interest in the Columbus
      Project;                                                                                    
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                             
| | (b) | an option to acquire 100% of the Columbus Project by way
      of merger with the owners of the Columbus Project, CSM and Columbus Brine
      Inc. (CBI);
| |     |                                                                                                                                                             
| | (c) | an option to acquire up to a 60% interest in the Red
      Mountain Project; and                                                                            
| |     |                                                                                                                                                             
| | (d) | an option to acquire 100% of the Red Mountain Project for
        approximately $4,000,000 in cash and stock.                                               

Approximately $2,200,000 has been spent as of the date of
filing of this Quarterly Report by us and Nano collectively, with the result
that we have now earned an 11% undivided interest in the Columbus Project.

The Columbus Project

The Columbus Project is a potential gold, silver and calcium
carbonate project consisting of 133 mineral claims covering approximately 19,300
acres located in Esmeralda County, Nevada. Title to the mineral claims making up
the Columbus Project are held by CSM. As of August 14, 2007, we have assumed all
of Nanos obligations under their option agreement (the Columbus Option
Agreement) with CSM and CBI. Under the terms of this agreement, in order to
maintain and exercise our option, we are required to do the following:

| | (a) | pay $10,000 per month to CSM until December 31, 2007, in
      order to maintain our option rights;
| | --- | ---------------------------------------------------------------------------------------------------

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| | (b) | spend a total of $500,000 on examining, testing,
      exploring or developing the Columbus Project by December 31, 2006 (the CP
      Phase 1 Expenditures) (which Nano has already spent);         
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                        
| | (c) | spend a total of $2,500,000 on examining, testing,
      exploring or developing the Columbus Project by December 31, 2007 (the CP
      Phase 2 Expenditures); and                                  
| |     |                                                                                                                                                                                                        
| | (d) | pay a total of $14,000 per month in consulting fees to
        two individuals associated with CSM and CBI for services relating to maintaining,
        exploring and developing the Columbus Project.

For every $1,000,000 spent by us on the CP Phase 1 and CP Phase
2 Expenditures, we will earn a 5% undivided interest in the Columbus Project (or
a proportionate fractional interest for expenditures in denominations of less
than $1,000,000). We will earn a maximum 15% undivided interest in the Columbus
Project if we spend the full $3,000,000 of the CP Phase 1 and CP Phase 2
Expenditures by the deadlines set out above. In addition, if we spend the full
amount of the CP Phase 1 and CP Phase 2 Expenditures, we will have the right to
acquire CSM and CBI and thus a 100% undivided interest in the Columbus Project
by way of a statutory merger (the CP Merger Rights). In order to exercise the
CP Merger Rights, we will be required to issue the following consideration:

| | (a) | a minimum of 10,000,000 shares and a maximum of
      80,000,000 shares of common stock, with the specific number of shares to
      be issued depending upon the closing market price of our common stock over
      the sixty days prior to the merger (the CP Merger Shares); and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                       
| | (b) | warrants to acquire one additional share for every four
      shares issued under (a), at an exercise price per share equal to 125% of
      the share price used to determine the number of shares to be issued under
      (a), for a period of two years.                          

The number of shares to be issued will be determined based upon
the average closing price of our shares over the 60 days prior to closing, with
a minimum per share price of $0.25 per share and a maximum per share price of
$2.00 per share. In addition, upon completion of the merger, John T. Arkoosh,
the principal of CSM and CBI, will have the right to nominate one person to our
Board of Directors. We will be required to file a registration statement with
the SEC in respect of the resale of the CP Merger Shares, within 60 days after
the completion of the merger. The option to acquire CSM and CBI expires on
January 31, 2008.

As of the date of this Quarterly Report, we and Nano have
collectively spent approximately $2,200,000 on the Columbus Project, with the
result that we have now earned an 11% undivided ownership in the Columbus
Project.

Description of the Columbus Project

Location, Access and Infrastructure

The Columbus Project property is located in the Columbus Salt
Marsh, in Esmeralda County, Nevada, approximately 41 miles west of Tonopah,
halfway between Las Vegas and Reno. The Columbus Salt Marsh is an enclosed basin
and is a dry lake bed for the majority of the year. All surface drainage from
the surrounding 300 square mile area flows into the Columbus Salt Marsh.

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The Columbus Project contains an existing mill site with power
generator sets and an onsite fresh water well. The existing mill site currently
consists of shell mill facilities that will require substantial upgrades
before production can commence. Water used for processing is available from
existing wells located on the surrounding basin (the Columbus Basin), one of
which is an artesian well. An artesian well is a confined aquifer containing
groundwater that flows upwards without the need for pumping. There is also a
high voltage grid located at the Candelaria Mines, approximately three miles
from the Columbus Project.

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Permits have already been obtained for the production of
calcium carbonate and the extraction of precious metals from 320 acres located
on the project site, 50 acres of which has been reserved for roads. An
additional 60 acres of mill sites host the existing project facilities where we
intend to locate our pilot processing installation.

History

The Columbus Project is located in an area that has
historically been known as a well mineralized region. A gold and silver mining
operation known as the Candelaria Mine is located approximately three miles
northwest of the Columbus Project. The Clayton Valley Brine Project, a lithium
extraction project, is located approximately 25 miles southeast of the Columbus
Project.

The history of the area dates back to the 1860s upon the
discovery of significant deposits of silver. During this period, the Candelaria
Mine was established. To date, the Candelaria Mine has produced approximately 68
million ounces of silver.

The Clayton Valley Brine Project was established in the 1960s
and uses a brine aquifer to extract minerals. Clayton Valley has historically
been one of the largest sources of lithium in the United States.

Geology

The Columbus Basin is an enclosed basin that appears to be a
sediment filled collapsed caldera of a volcano. A caldera is a volcanic feature
formed by the collapse of land following a volcanic eruption. Surveys conducted
on the area indicate that there appears to be a two mile wide fault structure in
the northwest section of the Columbus Basin. The subsurface of the Columbus
Basin contains an ash layer approximately 150 feet thick, located at a depth of
approximately 400 feet. This ash layer hosts a large brine aquifer.

Sampling Results on the Columbus Project

In August, 2006, Nano commissioned Arrakis, Inc., an independent
  mining and metallurgical consulting engineering firm, to conduct surface sampling
  studies on the Columbus Project. 59 surface samples were taken by Arrakis and
  were processed at Arrakis’ laboratory in Eaglewood, Colorado. The results
  from these samples indicated an average in-situ area wide grade of 0.078 ounces
  per tonne (o.p.t.) of gold. Readers are cautioned that these results are from
  surface samples only and are not necessarily indicative of the mineralization
  found at depth.

In December, 2006, Arrakis returned to the Columbus Project and
took five additional surface samples, four borings and a two thousand pound bulk
sample. One boring went down to a depth of 10 feet, two borings went down to a
depth of 15 feet and the final boring when down to a depth of 20 feet. The
results of these additional samples fit the trend shown by the original surface
samples, with no significant variations at depth.

The bulk sample taken by Arrakis was used to conduct gravity
concentration tests. Most of the gold contained in the samples appear to be less
than 50 microns. Arrakis noted that the gravity concentration tests indicated
that more than 90% of the ore was made up of a clay matrix that would need to be
carefully de-agglomerated and diluted prior to effective gravity concentration.
A high grade calcium carbonate product is expected to be producible from these
clay tailings.

Based on the test results on the samples taken from the
Columbus Project, Arrakis has recommended proceeding with (1) a pilot processing
installation at the existing mill site located on

8

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the property; and (2) exploration drilling of an anomalous zone
indicated by the samples in an effort to determine the economic viability of the
project.

Current Exploration and Development Program for the Columbus
Project

Based on Nanos own assessment of the Columbus Project and
Arrakis recommendations, our exploration program for the Columbus Project
currently consists of the following:

|1. | Upgrade Project Facility: We plan to upgrade the
      existing mill facilities located on the Columbus Project site. The current
      facilities located on the site are not sufficient to implement our pilot
      production operation. As a result, we will need to upgrade these
      facilities by bringing in the necessary equipment and other infrastructure
      required to implement our pilot operations. We hope to complete the first
      stage of upgrading the existing project facilities by the end of
    2007.                                             
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | Pilot Production Module: We plan to implement a
      pilot production module on the Columbus Project in order to evaluate the
      economic feasibility of the project. The production model for the Columbus
      Project is anticipated to be a low grade, low cost, high volume mining
      operation.                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | We have obtained a production permit from the Bureau of
      Land Management (BLM) which requires us to begin production by the end
      of October, 2007. The production permit allows us to commence calcium
      carbonate production and precious mineral extraction on the 270 acre mine
      site and 60 acre mill sites located at the Columbus Project. In addition,
      the Production Permit allows us to use 50 acres of the Columbus Project
      for road access.                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | We plan to use an open pit mining method to extract
      minerals from the Columbus Project. The material will be mined and
      transported by truck to the project facility. Water will then be added to
      the extracted material to make a slurry. Once the material has been
      slurried, we will use a gravity and spiral concentration process to filter
      the minerals from the material. The final extraction method will involve
      acid leaching to recover the minerals from the materials.                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Once we commence production, we anticipate that we will
      continue our production with the pilot production module as long as the
      Columbus Project produces commercial minerals.                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3. | Drilling Exploration Program: We plan to commence
      a drilling program on the Columbus Project in order to determine whether
      there are sufficient reserves on the Columbus Project for economic
      viability. We anticipate filing the required permit applications by the
      end of the third quarter. If we receive the necessary approvals from the
      BLM, of which there are no assurances, we expect to commence drilling by
      the end of the first quarter of 2008. We anticipate that our drilling
      program will take up to two years to complete.

We anticipate spending approximately $4,446,750 on the above
exploration and development program for the Columbus Project during the next
twelve months. We anticipate spending more than $2,500,000 by the end of
December 31, 2007, meaning that we expect to be able to fully exercise our
option for a 15% undivided interest in the Columbus Project. If the results of
our pilot production operation and drilling exploration program is successful,
we will likely exercise our right to acquire a 100% undivided interest in the
Columbus Project by exercising the CP Merger Rights under the Columbus Option
Agreement.

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The Red Mountain Project

The Red Mountain Project consists of 60 mineral claims covering
approximately 7,500 acres, all located in San Bernardino County, California.
Title to these mineral claims is currently recorded in the names of a number of
individuals who, together, make up mining syndicate known as Red Mountain Mining
(RMM). We have been notified that some of the claims making up the Red
Mountain Project may conflict with other existing mineral claims and other
property rights covering the location of the project. We intend to work with RMM
to in order to resolve these issues for their mineral claims of interest.

As of August 14, 2007, we assumed all of Nanos obligations
under their option agreement (the Red Mountain Option Agreement) RMM. Under
the terms of the Red Mountain Option Agreement, in order to maintain and
exercise our option, we are required to do the following:

| | (a) | pay $5,000 per month to RMM, until December 31, 2011, in
      order to maintain our option rights;                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                         
| | (b) | spend a total of $200,000 by December 31, 2008 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 1 Expenditures); and
| |     |                                                                                                                                                                         
| | (c) | spend a total of $1,000,000 by December 31, 2011 on
      examining, testing, exploring or developing the Red Mountain Project (the
      RMP Phase 2 Expenditures).  

For each $100,000 spent by us on the RMP Phase 1 or RMP Phase 2
Expenditures, we will earn a 5% undivided interest in the Red Mountain Project
(or a proportionate fractional interest for expenditures in denominations of
less than $100,000). We will earn a maximum 60% undivided interest in the Red
Mountain Project if we spend the full $1,200,000 of the RMP Phase 1 and RMP
Phase 2 Expenditures by the deadlines set out above. In addition, at any time,
we have the right to acquire a 100% interest in the Red Mountain Project (the
RM Acquisition Rights) by:

| | (a) | paying and issuing to RMM the following
    consideration:                                                                               
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                          
| |     | (i)                                                                                                                                      
| |     |                                                                                                                                          
| |     | (ii)                                                                                                                                     
| |     |                                                                                                                                          
| |     | (iii)                                                                                                                                    
| |     |                                                                                                                                          
| | (b) | if the Red Mountain Project achieves commercial
      production, paying and issuing to RMM the following additional
      consideration:
| |     |                                                                                                                                          
| |     | (i)                                                                                                                                      
| |     |                                                                                                                                          
| |     | (ii)                                                                                                                                     
| |     |                                                                                                                                          
| |     | (iii)                                                                                                                                    

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The number of shares to be issued will be determined based upon
the average closing price of our shares over the 60 days prior to closing, with
a minimum per share price of $0.25 per share and a maximum per share price of
$5.00 per share.

As of the date of this Quarterly Report, we have spent $20,000
on the Red Mountain Project, meaning, we now have a 1% undivided ownership
interest in the project.

Description of the Red Mountain Project

Location and Access

The Red Mountain Project is located at the base of Red
Mountain, which is 27 miles south of Ridgecrest in San Bernardino County,
California, approximately 75 miles northeast of Los Angeles. The Red Mountain
Project can be accessed by using a gravel road that bisects the project from
northwest to southeast.

The Red Mountain Project does not contain any useable
infrastructure other than a water well.



History

The Red Mountain Project is east of and adjacent to the Rand
Mining District, initially discovered in 1894. The Rand Mining District was
mined off and on until just recently for gold, silver and tungsten. The majority
of the mines in the area consisted of small independent operations. There is
currently no commercial mining occurring on the Red Mountain Project site.

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Geology

The area surrounding the Red Mountain Project is highly
mineralized with recorded production of gold, silver and tungsten.

Nano had Arrakis review the Red Mountain Project, including the
existing reports on work previously done by RMM. RMM has excavated over 100 test
pits at the project site and has gravity concentrated the bulk samples taken
from these pits. The results of RMMs tests show values ranging from less than
0.01 troy ounces of gold per ton to over 1.00 troy ounces of gold per ton. Those
test results reportedly show an average of 0.06 o.p.t. Arrakis reported that the
grades were similar to other grades that have been reported in the area on
similar mine sites.

Based on their review of the existing reports and a field visit
to the Red Mountain Project site, Arrakis has recommended that we proceed with
an exploration program to verify the reported gold grades in RMMs studies and
to test the recoverability in order to assess the economic viability of the Red
Mountain Project.

Current Exploration Program for the Red Mountain Project

Based on Nanos own assessment of the Columbus Project and
Arrakis recommendations, our exploration program for the Red Mountain Project
currently consists of the following:

|1. | Phase I: Phase I of our exploration program for
      the Red Mountain Project is expected to involve having a comprehensive
      report prepared on the project and the initiation of a drilling program on
      anomalous zones located on the project site. We hope to be able to have
      Phase I completed by December 31, 2007.                                                                                                                                                                                                                                                                                             
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | Phase II: Depending upon the results and
      recommendations contained in the report on Phase I, Phase II will involve
      conducting a drilling and sampling program designed to confirm the
      metallurgy identified in Phase I and to establish whether economically
      viable mineral reserves exist on the Red Mountain Project. Depending upon
      the results of Phase I, we may also apply for production permits for the
      project. Depending upon the status of Phase I of our exploration program,
      we expect to begin Phase II in January, 2008, with completion scheduled
      for the end of 2008.

We anticipate that we will spend approximately $1,570,000 on
our exploration program for the Red Mountain Project during the next twelve
months.

PLAN OF OPERATION

Our plan of operation for the next twelve months will involve
proceeding with our exploration and development programs for the Ireland Claim,
the Columbus Project and the Red Mountain Project. Although we still intend to
proceed with our exploration program for the Ireland Claim, our principal focus
in the upcoming months will be on the Columbus Project and the Red Mountain
Project. As a result, our exploration program for the Ireland Claim may be
delayed.

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Ireland Claim

Our exploration program for the Ireland Claim consists of the
following:

|1. | Phase I: Phase I of the exploration program
      involves conducting a VLF electromagnetic survey that traces geological
      fracture and breccia zones. VLF electromagnetic surveying employs
      electromagnetic waves that are generated at the surface and directed into
      the earth. When these waves encounter electrically conductive mineral
      formations or ore bodies located underground, they induce currents in the
      conducting minerals which generate new electromagnetic waves that are then
      detected by instruments located at the surface. Using this method, we can
      detect the presence of underground mineral formations and ore
    bodies.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | Phase II: Phase II of the exploration program,
      which has been completed, involved conducting a trench sampling survey of
      the Ireland Claim. Trench sampling involves dragging a shovel along the
      surface in a single direction to create a channel. Material for the sample
      is then taken at regular intervals along the channel. This procedure is
      repeated with several other channels in different directions until a
      suitable sample size has been procured. The cost of completing Phase II
      was $8,500.                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|3. | Phase III: Phase III of our exploration program
      will involve conducting a detailed geological mapping program of the
      Ireland Claim. The purpose of this phase of the exploration program would
      be to identify the geological environment underlying the mineral claims
      and to produce a detailed mineralization map.                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|4. | Phase IV: Phase IV of the exploration program will
      involve diamond drilling the Ireland Claim in order to obtain core samples
      of the underground mineralization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

Phase II of our exploration program was completed before Phase
I due to the unavailability of the equipment necessary to conduct a VLF
electromagnetic survey. Based upon the results of Phase II, our consulting
geologist has recommended that we proceed with the VLF electromagnetic survey
that was originally recommended for Phase I. We were not able to complete Phase
I of our exploration program on the Ireland Claim during 2006 due to the
unavailability of the necessary equipment and consultants. Phase I of our
exploration program for the Ireland Claim is expected to cost approximately
$5,500. The remainder of our exploration program is expected to cost
approximately $101,200 to complete.

Once Phase I is completed, our Board of Directors will make a
determination whether to proceed with Phase III of the exploration program. Upon
the completion of each phase of our exploration program, our Board of Directors
will make an assessment to determine whether the results of that phase are
sufficiently favorable to justify proceeding.

The Columbus Project

Our exploration and development program for the Columbus
Project currently consists of the following:

|1. | Upgrade Project Facility: We plan to upgrade the
      existing mill facilities located on the Columbus Project site. The current
      facilities located on the site are not sufficient to implement our pilot
      production operation. As a result, we will need to upgrade these
      facilities by bringing in the necessary equipment and other infrastructure
      required to
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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|   | implement our pilot operations. We hope to complete the
      first stage of upgrading the existing project facilities by the end of
      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|2. | Pilot Production Module: We plan to implement a
      pilot production module on the Columbus Project in order to evaluate the
      economic feasibility of the project. The production model for the Columbus
      Project is anticipated to be a low grade, low cost, high volume mining
      operation.                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | We have obtained a production permit from the Bureau of
      Land Management (BLM) which requires us to begin production in the
      fourth quarter of 2007. The production permit allows us to commence
      calcium carbonate production and precious mineral extraction on the 270
      acre mine site and 60 acre mill sites located at the Columbus Project. In
      addition, the Production Permit allows us to use 50 acres of the Columbus
      Project for road access.                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | We plan to use an open pit mining method to extract
      minerals from the Columbus Project. The material will be mined and
      transported by truck to the project facility. Water will then be added to
      the extracted material to make a slurry. Once the material has been
      slurried, we will use a gravity and spiral concentration process to filter
      the minerals from the material. The final extraction method will involve
      acid leaching to recover the minerals from the materials.                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Once we commence production, we anticipate that we will
      continue our production with the pilot production module as long as the
      Columbus Project produces commercial minerals.                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3. | Drilling Exploration Program: We plan to commence
      a drilling program on the Columbus Project in order to determine whether
      there are sufficient reserves on the Columbus Project for economic
      viability. We anticipate filing the required permit applications by the
      end of the third quarter. If we receive the necessary approvals from the
      BLM, of which there are no assurances, we expect to commence drilling by
      the end of the third quarter of 2007. We anticipate that our drilling
      program will take up to two years to complete.

We anticipate spending approximately $4,478,750 on the above
exploration and development program for the Columbus Project during the next
twelve months. We anticipate spending more than $2,500,000 during the 2007
calendar year, thus earning a 15% undivided interest in the Columbus Project. If
the results of our pilot production operation and drilling exploration program
is successful, we will likely exercise our right to acquire a 100% undivided
interest in the Columbus Project by exercising the CP Merger Rights under the
Columbus Option Agreement.

The Red Mountain Project

Our exploration program for the Red Mountain Project currently
consists of the following:

|1. | Phase I: Phase I of our exploration program for
      the Red Mountain Project is expected to involve having a comprehensive
      report prepared on the project and the initiation of a drilling program on
      anomalous zones located on the project site. We hope to be able to have
      Phase I completed by December 31, 2007.                                                                                                                                                
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|2. | Phase II: Depending upon the results and
      recommendations contained in the report on Phase I, Phase II will involve
      conducting a drilling and sampling program designed to confirm the
      metallurgy identified in Phase I and to establish whether economically
      viable mineral reserves exist on the Red Mountain Project. Depending upon
      the results of Phase I, we may also apply for production permits for the
      project. Depending upon the status of

14

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Phase I of our exploration program, we
expect to begin Phase II in January, 2008, with completion scheduled for the end
of 2008.

We anticipate that we will spend approximately $1,570,000 on
our exploration program for the Red Mountain Project during the next twelve
months.

Cash Requirements

Our estimated expenses for the next twelve months are as
follows:

| | Columbus Project               |  |                                                          |  |  
| | ------------------------------ |  | -------------------------------------------------------- |  | -
| | •                              |  | Property Acquisition and
      Maintenance Costs and     |  | $
| |                                |  | Permits                                                  |  |  
| | •                              |  | Drilling Exploration Program
      and Obtaining Reserve |  | $
| |                                |  | Estimates                                                |  |  
| | •                              |  | Plant Facility Upgrades                                  |  | $
| | •                              |  | Plant Operation                                          |  | $
| | •                              |  | Administration & Overhead                                |  | $
| |                                |  |                                                          |  | $
| | •                              |  | Contingency (@ 15%)                                      |  |  
| |                                |  |                                                          |  | $
| | Red Mountain Project  Phase I |  |                                                          |  |  
| | •                              |  | Property Acquisition and Maintenance Costs               |  | $
| | •                              |  | Permitting Costs                                         |  | $
| | •                              |  | Drilling Exploration Program                             |  | $
| | •                              |  | Project Report                                           |  | $
| | •                              |  | Administration & Overhead                                |  | $
| |                                |  |                                                          |  | $
| | •                              |  | Contingency (@ 15%)                                      |  |  
| |                                |  |                                                          |  | $
| | Ireland
      Claim            |  |                                                          |  |  
| | •                              |  | VLF Electromagnetic Survey for
      Phase II            |  | $
| |                                |  |                                                          |  | $
| | TOTAL                          |  |                                                          |  | $

As of our six months ended June 30, 2007, we had cash in the
amount of approximately $3,944,215 and a working capital surplus of $3,900,328.
As of the date of filing of this Quarterly Report, we have issued 11,378,000
shares of our common stock for total proceeds of $7,395,700. Although this
amount is sufficient to meet our anticipated costs for our exploration and
development programs during the next twelve months, the actual costs of
completing those programs may be greater than anticipated. If the actual costs
are significantly greater than anticipated or if we proceed with our exploration
and development programs beyond what we currently have planned for the next
twelve months, we will need to obtain additional financing.

15

---

There are no assurances that we will be able to obtain
additional financing in an amount sufficient to meet our needs or on terms that
are acceptable to us.

RESULTS OF OPERATIONS

Second Quarter and Six Months Summary

|         |   | Second Quarter Ended June 30 |   |   | Six Months Ended June 30 |  
|-------- | - | ---------------------------- | - | - | ------------------------ | -
|         |   |                              |   |   |                          |  
|         |   |                              |   |   |                          |  
|         |   | 2007                         |   |   | 2006                     |  
|Revenue  | $ | Nil                          |   | $ | Nil                      |  
|Expenses |   | (996,473                     | ) |   | (26,358                  | )
|         |   |                              |   |   |                          |  
|Net Loss | $ | (996,473                     | ) | $ | (26,358                  | )

Revenue

We have not earned any revenues since our inception and we do
not anticipate earning revenues until such time as we have entered into
commercial production of our mineral properties. We are currently in the
exploration stage of our business and we can provide no assurances that we will
discover commercially exploitable levels of mineral resources on our properties,
or if such resources are discovered, that we will be able to enter into
commercial production of our mineral properties.

Expenses

The major components of our expenses are outlined in the table
below:

|                    |   | Second Quarter Ended June 30 |  |   | Six Months Ended June 30 | 
|------------------- | - | ---------------------------- |  | - | ------------------------ | 
|                    |   |                              |  |   |                          | 
|                    |   | 2007                         |  |   | 2006                     | 
|                    |   |                              |  |   |                          | 
|Administrative fees | $ | 464                          |  | $ | -                        | 
|Consulting fees     |   | -                            |  |   | 10,000                   | 
|Discount on issue   |   | 901,620                      |  |   | -                        | 
|of shares           |   |                              |  |   |                          | 
|Geological          |   | 46,000                       |  |   | -                        | 
|Consulting          |   |                              |  |   |                          | 
|Office and sundry   |   | 222                          |  |   | 690                      | 
|Professional fees   |   | 40,986                       |  |   | 14,414                   | 
|Regulatory fees     |   | 6,881                        |  |   | 954                      | 
|Rent                |   | 300                          |  |   | 300                      | 
|Total Expenses      | $ | 996,473                      |  | $ | 26,358                   | 

16

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The increase in our total expenses for the six months ended
June 30, 2007 was primarily due to (i) amounts recorded in respect of the
discount on the offering price under the first tranche of the Foreign and U.S.
Offerings from the market price of the shares offered; (ii) increases in the
amounts spent on geological consulting; and (iii) increases in the professional
fees incurred by us. The increased amounts spent on geological consulting
represent amounts spent by us for the work completed by Arrakis on both the
Columbus and Red Mountain Projects.The additional professional fees
incurred by us relate primarily to legal fees associated with our acquisition of
Nanos rights to the Columbus and Red Mountain Projects.

We anticipate that our operating expenses will increase
significantly as we pursue our exploration and development programs for the
Ireland Claim, the Columbus Project and the Red Mountain Project.

LIQUIDITY AND CAPITAL RESOURCES

|Working Capital           |   |                  |   |   |                      |   |  |                      
|------------------------- | - | ---------------- | - | - | -------------------- | - |  | ---------------------
|                          |   |                  |   |   |                      |   |  | Percentage           
|                          |   | At June 30, 2007 |   |   | At December 31, 2006 |   |  | Increase / (Decrease)
|Current Assets            | $ | 3,945,165        |   | $ | 11,633               |   |  | 33,814.0%            
|Current Liabilities       |   | (44,837          | ) |   | (71,061              | ) |  | (36.9
      )%       
|Working Capital (Deficit) | $ | 3,900,328        |   | $ | (59,428              | ) |  | 6,663.1%             

|Cash Flows                                    |   |                          |   |   |         |  
|--------------------------------------------- | - | ------------------------ | - | - | ------- | -
|                                              |   | Six Months Ended June 30 |  
|                                              |   | 2007                     |   |   | 2006    |  
|Net Cash Used In Operating Activities         | $ | (134,897                 | ) | $ | (28,640 | )
|Net Cash From Financing Activities            |   | 4,874,479                |   |   | -       |  
|Net Cash From Investing Activities            |   | (807,000                 | ) |   | -       |  
|Net Increase (Decrease) In Cash During Period | $ | 3,932,582                |   | $ | (28,640 | )

As at June 30, 2007 we had a working capital surplus of
$3,900,328 as compared to a working capital deficit of $59,428 as at our year
ended December 31, 2006. This is primarily a result of the fact that we
completed the first tranche of our Foreign and U.S. Offerings during the second
quarter.

On April 24, 2007, our Board of Directors approved the Foreign
Offering and the U.S. Offering. As of the date of filing of this Quarterly
Report, we had completed the sale of a collective total of 11,378,000 units
under the Foreign and US Offerings, for total proceeds, less commissions, of
$7,234,424.80.

Although this amount is sufficient to meet our anticipated
costs for our exploration and development programs during the next twelve
months, the actual costs of completing those programs may be greater than
anticipated. If the actual costs are significantly greater than anticipated or
if we proceed with our exploration and development programs beyond what we
currently have planned for the next twelve months, we will need to obtain
additional financing.

17

---

There are no assurances that we will be able to obtain
additional financing in an amount sufficient to meet our needs or on terms that
are acceptable to us. We currently have an additional 4,834,000 units available
for sale under the Foreign Offering and an additional 3,788,000 units available
for sale under the US Offering, for total potential proceeds, not including
commissions, of $5,604,300. There are no assurances that we will be able to
complete the sale of the remaining units offered or that we will able to obtain
financing from alternative sources on terms acceptable to us. If we are not able
to obtain additional financing when needed, we will be unable to complete our
current plan of operation.

OFF-BALANCE SHEET ARRANGEMENTS

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a material current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with
generally accepted accounting principles requires our management to make
estimates and assumptions that affect the reported amount 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.
Our management routinely makes judgments and estimates about the effects of
matters that are inherently uncertain.

We have identified certain accounting policies, described
below, that are most important to the portrayal of our current financial
condition and results of operations.

Exploration Stage Enterprise

Our financial statements are prepared using the accrual method
of accounting and according to the provisions of Statement of Financial
Accounting Standards No. 7 (SFAS 7), Accounting and Reporting for Development
Stage Enterprises, as we devote substantially all of our efforts to acquiring
and exploring mineral properties. Until such properties are acquired and
developed, we will continue to prepare our financial statements and related
disclosures in accordance with entities in the exploration stage.

Mineral Rights

We capitalize acquisition and option costs of mineral property
rights. The amount capitalized represents fair value at the time the mineral
rights were acquired. The accumulated costs of acquisition for properties that
are developed to the stage of commercial production will be amortized using the
unit-of-production method.

Exploration Costs

Mineral exploration costs are expensed as incurred.

18

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Regulatory Matters

We and our mineral property interest are subject to a variety
of federal and state regulations governing land use, health, safety and
environmental matters. Our management believes that we have been in substantial
compliance with all such regulations, and are unaware of any pending action or
proceeding relating to regulatory matters that would affect our financial
position.

Environmental Protection and Reclamation Costs

Our operations have been, and may in the future, be affected
from time to time in varying degrees by changes in environmental regulations,
including those for future removal and site restorations costs. Both the
likelihood of new regulations and their overall effect upon us may vary from
region to region and are not predictable.

Environmental expenditures that relate to ongoing environmental
and reclamation programs are charged against statements of operations as
incurred or capitalized and amortized depending upon their future economic
benefits. We do not currently anticipate any material capital expenditures for
environmental control facilities because our property holding is at an early
stage of exploration.

RISKS AND UNCERTAINTIES

Although we intend to implement a pilot production module
for the Columbus Project, there is no assurance that this project is
commercially feasible.

We intend to begin our pilot production operations on the
Columbus Project in the fourth quarter of 2007. This pilot production module is
designed to evaluate the economic feasibility of the Columbus Project. We can
not provide any assurances that the Columbus Project will turn out to be
commercially viable.

If we do not obtain additional financing, we may not be able
to complete our exploration and development programs on the Ireland Claim and
the Columbus and Red Mountain Projects.

Although we have obtained sufficient proceeds from our Foreign
and US Offerings to meet the anticipated costs of our exploration and
development programs during the next twelve months, the actual costs of
completing those programs may be greater than anticipated. If the actual costs
are significantly greater than anticipated or if we proceed with our exploration
and development programs beyond what we currently have planned for the next
twelve months, we will need to obtain additional financing. There are no
assurances that we will be able to obtain additional financing in an amount
sufficient to meet our needs or on terms that are acceptable to us.

Obtaining additional financing would be subject to a number of
factors, the known material factors being market prices for gold and silver,
investor acceptance of our mineral claims, and investor sentiment. These factors
may make the timing, amount, terms or conditions of additional financing
unavailable to us. We currently have an additional 4,834,000 units available for
sale under the Foreign Offering and an additional 3,788,000 units available for
sale under the US Offering, for total potential proceeds, not including
commissions, of $5,604,300. However, there is no assurance that we will be able
to complete the sale of all of the securities being offered. Even if we complete
the sale of all of the securities offered under the Foreign and US Offerings,
there is no assurance that this will satisfy all of our working capital
requirements for the next twelve

19

---

months or that these funds will be sufficient to complete our
planned exploration and development programs.

If we complete additional financings through the sale of
shares of our common stock, our existing stockholders will experience dilution.

The most likely source of future financing presently available
to us is through the issuance of our common stock. The only other anticipated
alternative for the financing of further exploration would be the offering by us
of an interest in our properties to be earned by another party or parties
carrying out further exploration thereof, which is not presently contemplated.
In addition, we will be required to issue a significant number of shares of our
common stock in order to complete the acquisition of the Columbus and Red
Mountain Projects. If our management decides to exercise the right to acquire a
100% interest in those projects, we will be required to issue significantly more
shares of our common stock. Issuing shares of our common stock, for financing
purposes or otherwise, will dilute the interests of our existing
stockholders.

In order to maintain our rights to the Ireland Claim, Columbus
  Project and Red Mountain Project, we will be required to make annual filings
  with federal and state regulatory agencies and/or be required to complete assessment
  work on those properties.

In order to maintain our rights to the Ireland Claim, Columbus
  Project and Red Mountain Project, we will be required to make annual filings
  with federal and state regulatory authorities. Currently the amount of these
  fees is nominal; however, these maintenance fees are subject to adjustment.
  In addition, we may be required by federal and/or state legislation or regulations
  to complete minimum annual amounts of mineral exploration work on the Ireland
  Claim, Columbus Project and Red Mountain Project. A failure by us to meet the
  annual maintenance requirements under federal and state laws could cause our
  rights to the Ireland Claim, Columbus Project and Red Mountain Project to lapse.

Because we are an exploration stage company, we face a high
risk of business failure.

To date, our primary business activities have involved the
acquisition of mineral claims and the exploration and development on these
claims. We have not earned any revenues as of the date of this Quarterly Report.
Potential investors should be aware of the difficulties normally encountered by
exploration stage companies and the high rate of failure of such enterprises.
The likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates.

Because we anticipate our operating expenses will increase
prior to our earning revenues, we may never achieve profitability.

Prior to completion of our exploration stage, we anticipate
that we will incur increased operating expenses without realizing any revenues.
We therefore expect to incur significant losses into the foreseeable future. We
recognize that if we are unable to generate significant revenues from the
exploration of our mineral claims and the production of minerals thereon, if
any, we will not be able to earn profits or continue operations. There is no
history upon which to base any assumption as to the likelihood that we will
prove successful, and we may not be able to ever generate any operating revenues
or achieve profitable operations. If we are unsuccessful in addressing these
risks, our business will most likely fail.

20

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Because of the speculative nature of exploration of mining
properties, there is substantial risk that no commercially exploitable minerals
will be found and our business will fail.

The search for valuable minerals as a business is extremely
risky. We may not find commercially exploitable reserves of gold or silver on
our mineral claims. Exploration for minerals is a speculative venture,
necessarily involving substantial risk. The expenditures to be made by us in the
upcoming exploration of the mineral claims may not result in the discovery of
commercial quantities of ore. Problems such as unusual or unexpected formations
and other conditions are involved in mineral exploration and often result in
unsuccessful exploration efforts. In such a case, we would be unable to complete
our business plan.

Because of the inherent dangers involved in mineral
exploration, there is a risk that we may incur liability or damages if and when
we conduct mineral exploration activities.

The search for valuable minerals involves numerous hazards. As
a result, if and when we conduct exploration activities we may become subject to
liability for such hazards, including pollution, cave-ins and other hazards
against which we cannot insure or against which we may elect not to insure. The
payment of such liabilities may have a material adverse effect on our financial
position.

Even if we discover commercial reserves of precious metals
on our optioned mineral claims, we may not be able to successfully obtain
commercial production.

Our optioned mineral claims do not contain any known bodies of
ore. If our exploration programs are successful in discovering ore of commercial
tonnage and grade, we will require additional funds in order to place those
mineral claims into commercial production. At this time, there is a risk that we
will not be able to obtain such financing as and when needed.

Because we are an exploration stage company, our business
has a high risk of failure.

As noted in the financial statements that are included with
this Quarterly Report, we are an exploration stage company that has incurred net
losses since inception, we have not attained profitable operations and we are
dependent upon obtaining adequate financing to complete our exploration
activities. The success of our business operations will depend upon our ability
to obtain further financing to complete our planned exploration program and to
attain profitable operations. If we are not able to complete a successful
exploration program and attain sustainable profitable operations, then our
business will fail.

If we are unable to hire and retain key personnel, we may
not be able to implement our business plan and our business will fail.

Our success will largely depend on our ability to hire highly
qualified personnel with experience in geological exploration. These individuals
may be in high demand and we may not be able to attract the staff we need. In
addition, we may not be able to afford the high salaries and fees demanded by
qualified personnel, or may lose such employees after they are hired. Currently,
we have not hired any key personnel. Our failure to hire key personnel when
needed could have a significant negative effect on our business.

21

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Because our executive officers do not have formal training
specific to the technicalities of mineral exploration, there is a higher risk
our business will fail.

Our executive officers and directors do not have formal
training as geologists or in the technical aspects of management of a mineral
exploration company. Accordingly, we will have to rely on the technical services
of others trained in appropriate areas. If we are unable to contract for the
services of such individuals, it will make it difficult and maybe impossible to
pursue our business plan.

As we undertake exploration of our optioned mineral claims,
we will be subject to compliance with government regulation that may increase
the anticipated cost of our exploration program.

There are several government regulations that materially
restrict the exploration of minerals. We may be required to obtain work permits,
post bonds and perform remediation work for any physical disturbance to the land
in order to comply with these laws. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program.

Certain work to be performed on our mineral projects may
require us to apply for permits from federal, state or local regulatory bodies.

If our applications for permits from the relevant regulatory
bodies are denied, we may not be able to proceed with our exploration and
development programs as disclosed above, which could have a negative affect on
our business.

If we receive positive results from our exploration program
and we decide to pursue commercial production, we may be subject to an
environmental review process that may delay or prohibit commercial
production.

If the results of our geological exploration program indicate
commercially exploitable reserves, and we decide to pursue commercial production
of our mineral claims, we may be subject to an environmental review process
under environmental assessment legislation. Compliance with an environmental
review process may be costly and may delay commercial production. Furthermore,
there is the possibility that we would not be able to proceed with commercial
production upon completion of the environmental review process if government
authorities did not approve our mine or if the costs of compliance with
government regulation adversely affected the commercial viability of the
proposed mine.

|ITEM 3. | CONTROLS AND PROCEDURES.
|------- | ------------------------

Under the supervision and with the participation of our
management, including our principal executive officer and principal financial
officer, we have evaluated the effectiveness of our disclosure controls and
procedures as required by Exchange Act Rule 13a-15(b) as of the end of the
period covered by this report. Based on that evaluation, our principal executive
officer and principal financial officer have concluded that these disclosure
controls and procedures are effective.

There were no changes in our internal control over financial
reporting during the last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.

22

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PART II - OTHER INFORMATION

|ITEM 1. | LEGAL PROCEEDINGS.
|------- | ------------------

None.

|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND
      USE OF PROCEEDS.
|------- | ------------------------------------------------------------------

On June 20, 2007, we completed the first tranche of the Foreign
Offering and the U.S. Offering. On June 20, 2007 we issued 2,016,000 Units under
the Foreign Offering to non-U.S. Persons as contemplated under Regulation S of
the Securities Act. Also on June 20, 2007, we issued a further 2,250,000 Units
under the U.S. Offering to accredited investors as defined in Rule 506 of
Regulation D of the Securities Act. These share issuances do not include any
Units sold under the Agency Agreement described above.

On July 20, 2007, we completed the second tranche of the
Foreign Offering and the U.S. Offering. On July 20, 2007, we issued 3,150,000
Units under the Foreign Offering to non-US persons as contemplated under
Regulation S of the Securities Act. Also on July 20, 2007, we issued a further
3,962,000 Units under the U.S. Offering to accredited investors as defined
under Rule 506 of Regulation D of the Securities Act. We paid a commission of
$161,752.20 to S&P Investors Inc. in connection with the sale of 3,550,000
Units under the U.S. Offering.

|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES.
|------- | --------------------------------

None.

|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
      HOLDERS.
|------- | ----------------------------------------------------------

None.

|ITEM 5. | OTHER INFORMATION.
|------- | ------------------

None.

23

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|ITEM 6. | EXHIBITS.
|------- | ---------

|Exhibit |                                                                                                                                                                       
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibit                                                                                                                                                
|3.1     | Articles of Incorporation.(1)                                                                                                                                         
|3.2     | Certificate of Amendment to Articles
         Name Change from Merritt Ventures Corp. to Ireland Inc.(3)                                                             
|3.3     | Certificate of
        Change  4-for-1 Stock Split.(5)                                                                                                               
|3.4     | Bylaws.(1)                                                                                                                                                            
|10.1    | 2007 Stock Incentive
        Plan. (4)                                                                                                                                
|10.2    | Non-Qualified Stock Option Agreement
        dated effective as of March 28, 2007, between the Company and Lorrie Ann
        Archibald. (4)                          
|10.3    | Assignment Agreement
        dated for reference as of March 29, 2007, among Nano Minerals Corp., Ireland
        Inc. and Lorrie Archibald. (4)                      
|10.4    | Non-Qualified Stock Option Agreement
        dated effective as of March 30, 2007 between the Company and Douglas D.G.
        Birnie. (4)                            
|10.5    | Non-Qualified
        Stock Option Agreement dated effective as of March 30, 2007 between the
        Company and Robert D. McDougal. (4)                             
|10.6    | Agency Agreement dated effective
        as of June 19, 2007 between the Company and S & P Investors, Inc.
        (6)                                                
|10.7    | Amendment Agreement
        to Assignment Agreement among Nanominerals Corp., Ireland Inc. and Lorrie
        Archibald, dated for reference as of August 8, 2007. (7)
|31.1    | Certification
        of Principal Executive Officer pursuant to Section 302 of the Sarbanes-
        Oxley Act of 2002.                                              
|31.2    | Certification
        of Principal Financial Officer pursuant to Section 302 of the Sarbanes-
        Oxley Act of 2002.                                              
|32.1    | Certification
        of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|32.2    | Certification
        of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|99.1    | Certificate of Location for the
        Ireland Claim.(2)                                                                                                             
|99.2    | Report on the
        Ireland Property by W.G. Timmins, P.Eng, dated February 1, 2005.(2)                                                                             
|(1)     | Filed as an exhibit to our Registration
        Statement on Form SB-2 originally filed on April 18, 2002, as amended.                                                
|(2)     | Filed as an exhibit
        to our Annual Report on Form 10-KSB for the year ended December 31, 2004,
        filed on October 21, 2005.                              
|(3)     | Filed as an exhibit to our Annual
        Report on Form 10-KSB for the year ended December 31, 2005 filed on April
        12, 2006.                                 
|(4)     | Filed as an exhibit
        to our Annual Report on Form 10-KSB for the year ended December 31, 2006
        filed on April 5, 2007.                                  
|(5)     | Filed as an exhibit to our Current
        Report on Form 8-K filed on April 30, 2007.                                                                                
|(6)     | Filed as an exhibit
        to our Current Report on Form 8-K filed on June 21, 2007.                                                                                 
|(7)     | Filed as an exhibit to our Current
        Report on Form 8-K filed on August 14, 2007.                                                                               

24

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SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                       | IRELAND INC.
|---------------------- | ------------
|                       |             
|Dated: August 20, 2007 |             
|                       | By:         
|                       |             
|                       |             
|                       |             
|                       |             
|                       |             
|                       |             
|                       |             
|                       |             
|                       |             
|Dated: August 20, 2007 |             
|                       | By:         
|                       |             
|                       |             
|                       |             
|                       |             

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