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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**Washington, DC 20549

FORM 10-QSB

[X]Quarterly Report under Section 13 or 15(d) of the
Securities Exchange Act of 1934 (the Exchange Act)

For the quarterly period ended September 30, 2006

[   ] Transition Report under Section 13 or 15(d) of
the Exchange Act

For the transition period _______ 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)  |                                  

810 Peace Portal Drive, Suite 201Blaine, Washington 98230(Address of principal executive offices)

(360) 318-3020(Issuers telephone number)

NOT APPLICABLE(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 Securities Exchange Act of 1934 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 stock, as of the latest practicable date: As of
November 10, 2006, the Registrant had 9,137,500 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

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

FINANCIAL STATEMENTS

SEPTEMBER 30, 2006(Unaudited) 
  (Stated in U.S. Dollars)



F-1

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

BALANCE SHEET(Unaudited) 
  (Stated in U.S. Dollars)

|                                                          |   | SEPTEMBER 30 |   |   | DECEMBER 31 |  
|--------------------------------------------------------- | - | ------------ | - | - | ----------- | -
|                                                          |   | 2006         |   |   | 2005        |  
|                                                          |   |              |   |   |             |  
|ASSETS                                                    |   |              |   |   |             |  
|                                                          |   |              |   |   |             |  
|Current                                                   |   |              |   |   |             |  
|Cash                                                      | $ | 11,960       |   | $ | 63,242      |  
|                                                          |   |              |   |   |             |  
|LIABILITIES                                               |   |              |   |   |             |  
|                                                          |   |              |   |   |             |  
|Current                                                   |   |              |   |   |             |  
|Accounts payable
      and accrued liabilities            | $ | 41,881       |   | $ | 20,601      |  
|Due to related parties                                    |   | 6,790        |   |   | 6,790       |  
|                                                          |   | 48,671       |   |   | 27,391      |  
|                                                          |   |              |   |   |             |  
|STOCKHOLDERS EQUITY (DEFICIENCY)                         |   |              |   |   |             |  
|                                                          |   |              |   |   |             |  
|Share Capital                                             |   |              |   |   |             |  
|Authorized:                                               |   |              |   |   |             |  
|100,000,000 common voting stock with a par value
      of |   |              |   |   |             |  
|$0.001 per share                                          |   |              |   |   |             |  
|                                                          |   |              |   |   |             |  
|Issued:                                                   |   |              |   |   |             |  
|9,137,500 common shares (December 31, 2005 -              |   |              |   |   |             |  
|9,137,500 common shares)                                  |   | 9,138        |   |   | 9,138       |  
|                                                          |   |              |   |   |             |  
|Additional paid-in capital                                |   | 229,612      |   |   | 229,612     |  
|                                                          |   |              |   |   |             |  
|Deficit Accumulated During The Exploration Stage          |   | (275,461     | ) |   | (202,899    | )
|                                                          |   | (36,711      | ) |   | 35,851      |  
|                                                          |   |              |   |   |             |  
|                                                          | $ | 11,960       |   | $ | 63,242      |  

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

F-2

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

STATEMENT OF OPERATIONS(Unaudited) 
  (Stated in U.S. Dollars)

CUMULATIVEPERIOD FROMINCEPTIONFEBRUARY 20THREE MONTHS ENDED
      
      
      NINE MONTHS ENDED
      
      
      2001 TOSEPTEMBER 30
      
      
      SEPTEMBER 30
      
      
      SEPTEMBER 302006
      
      
      2005
      
      
      2006
      
      
      2005
      
      
      2006Revenue
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -ExpensesAdministrative fees
      
      -
      
      
      600
      
      
      -
      
      
      900
      
      
      19,468Consulting fees
      
      15,000
      
      
      -
      
      
      25,000
      
      
      -
      
      
      25,000Exploration expenses
      
      -
      
      
      500
      
      
      -
      
      
      500
      
      
      10,856Mineral and property
        optionpayments
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      14,000Office and sundry
      
      1,432
      
      
      144
      
      
      2,225
      
      
      196
      
      
      5,868Professional fees
      
      9,820
      
      
      9,893
      
      
      37,837
      
      
      17,850
      
      
      170,998Property expenses
      
      3,247
      
      
      -
      
      
      3,247
      
      
      -
      
      
      3,247Regulatory fees
      
      533
      
      
      25
      
      
      3,253
      
      
      2,082
      
      
      12,124Rent
      
      400
      
      
      2,050
      
      
      1,000
      
      
      2,350
      
      
      13,900Net Loss For The Period
      $
      30,432
      
      $
      13,212
      
      $
      72,562
      
      $
      23,878
      
      $
      275,461Basic And Diluted Loss PerShare
      $
      0.01
      
      $
      0.01
      
      $
      0.01
      
      $
      0.01Weighted Average Number OfShares Outstanding
      
      9,137,500
      
      
      7,447,500
      
      
      9,137,500
      
      
      7,440,883


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

F-3

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

STATEMENT OF CASH FLOWS(Unaudited) 
  (Stated in U.S. Dollars)

|                                                 |   |                   |   |   |              |   |   | CUMULATIVE  |  
|------------------------------------------------ | - | ----------------- | - | - | ------------ | - | - | ----------- | -
|                                                 |   |                   |   |   |              |   |   | PERIOD FROM |  
|                                                 |   |                   |   |   |              |   |   | INCEPTION   |  
|                                                 |   |                   |   |   |              |   |   | FEBRUARY 20 |  
|                                                 |   | NINE MONTHS ENDED |   |   | 2001 TO      |  
|                                                 |   | SEPTEMBER 30      |   |   | SEPTEMBER 30 |  
|                                                 |   | 2006              |   |   | 2005         |   |   | 2006        |  
|                                                 |   |                   |   |   |              |   |   |             |  
|Operating Activities                             |   |                   |   |   |              |   |   |             |  
|Net loss for the
      period                    | $ | (72,562           | ) | $ | (23,878      | ) | $ | (275,461    | )
|                                                 |   |                   |   |   |              |   |   |             |  
|Changes in non-cash
      working capital items: |   |                   |   |   |              |   |   |             |  
|Accounts
      payable and accrued liabilities   |   |                   |   |   |              |   |   |             |  
|                                                 |   | 21,280            |   |   | 6,817        |   |   | 41,881      |  
|                                                 |   | (51,282           | ) |   | (17,061      | ) |   | (233,580    | )
|                                                 |   |                   |   |   |              |   |   |             |  
|Financing Activities                             |   |                   |   |   |              |   |   |             |  
|Issuance of common
      stock                   |   | -                 |   |   | 90,000       |   |   | 238,750     |  
|Advances from related parties                    |   | -                 |   |   | -            |   |   | 6,790       |  
|                                                 |   | -                 |   |   | 90,000       |   |   | 245,540     |  
|                                                 |   |                   |   |   |              |   |   |             |  
|Increase (Decrease) In Cash                      |   | (51,282           | ) |   | 72,939       |   |   | 11,960      |  
|                                                 |   |                   |   |   |              |   |   |             |  
|Cash, Beginning Of Period                        |   | 63,242            |   |   | 15           |   |   | -           |  
|                                                 |   |                   |   |   |              |   |   |             |  
|Cash, End Of Period                              | $ | 11,960            |   | $ | 72,954       |   | $ | 11,960      |  
|                                                 |   |                   |   |   |              |   |   |             |  
|                                                 |   |                   |   |   |              |   |   |             |  
|Supplemental Disclosure Of Cash Flow             |   |                   |   |   |              |   |   |             |  
|Information                                      |   |                   |   |   |              |   |   |             |  
|Interest paid                                    | $ | -                 |   | $ | -            |   | $ | -           |  
|Income taxes paid                                |   | -                 |   |   | -            |   |   | -           |  

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

F-4

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2006(Unaudited) 
  (Stated in U.S. Dollars)

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

F-5

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IRELAND INC.(Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2006(Unaudited) 
  (Stated in U.S. Dollars)

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                        
|   | b)                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                        
|   | c)                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                        
|3. | MINERAL EXPLORATION PROPERTY                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                        
|   | On November 30, 2004, the Company entered
        into a mineral property purchase agreement to acquire a 100% undivided
        interest in one mineral claim located in the Yellow Pine Mining District
        in Clark County, Nevada, known as the Ireland 1 Claim, for
        a total consideration of $6,000.
|   |                                                                                                                                                                                                                                                                                                                        
|   | On February 2, 2005, the Company made a $6,000
        cash payment to the vendor and earned its interest in the Ireland 1 Claim.                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                        
|4. | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                        
|   | Amounts due to related parties for advances
        to the Company are unsecured, without interest and are due on demand.                                                                                                                                                                                              

F-6

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ITEM
2.               
MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS

Certain statements contained in this Quarterly Report on 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 Quarterly Report. 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 United States 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. We are an exploration stage company engaged in the acquisition,
exploration and development of mineral properties. In November, 2004, we
acquired 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.

The following discussion and analysis summarizes our plan of
operation for the next twelve months, our results of operations for the nine
months ended September 30, 2006 and changes in our financial condition from
December 31, 2005. This discussion should be read in conjunction with the
Managements Discussion and Analysis or Plan of Operation included in our Annual
Report on Form 10-KSB for the year ended December 31, 2005 filed with the SEC on
April 12, 2006.

PLAN OF OPERATION

Our plan of operation for the next twelve months primarily
involves conducting preliminary exploration and development work on the Ireland
Claim in order to ascertain whether it possesses commercially exploitable
mineral deposits. To date, no commercially viable mineral deposits have been
identified on the Ireland Claim and there is no assurance that any commercially
viable mineral deposits exist on the property.

Subject to our obtaining any additional funding necessary for
  the continued exploration of our Ireland Claim mineral property, our exploration
  program for the Ireland Claim consists of the following:

3

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|1. | Phase I: Phase I of our 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. The
      estimated cost of completing Phase I is $5,500.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|2. | Phase II: Phase II of our 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 claim and
      to produce a detailed mineralization map. The estimated cost of completing
      Phase III is $10,000.                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4. | Phase IV: Phase IV of our exploration program will
      involve diamond drilling the Ireland Claim in order to obtain core samples
      of the underground mineralization. The estimated cost of completing Phase
      IV is $91,200.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

During the winter and fall of 2005, due to the unavailability
of necessary equipment, we were unable to commence Phase I of our exploration
program; as a result, we conducted the trench sampling phase (Phase II) of our
exploration program. Based on the report of our consulting geologist on the
results of Phase II received at the end of January, 2006, our consulting
geologist recommended that we proceed with what was originally planned as Phase
I of the exploration program, the VLF electromagnetic surveying of the Ireland
Claim. Subject to the availability of the necessary consultants and equipment,
and weather conditions, we plan to complete this phase of our exploration
program before end of our 2006 fiscal year. Once the results of this phase of
our exploration program have been provided, our board of directors will make a
determination whether to proceed with Phase III of the exploration program. In
making this determination, our board of directors will assess the results of the
VLF electromagnetic survey and will rely upon the recommendations of our
consulting geologist.

As of our fiscal quarter ended September 30, 2006, we had cash
in the amount of $11,960, and working capital deficit of $36,711. 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 further. Currently, we have
sufficient working capital to meet the anticipated costs of completing Phase I
of our exploration program. However, we do not have sufficient working capital
to complete our exploration program and meet our ongoing current obligations. In
addition, there are no assurances that the actual costs of completing our
exploration program will not exceed our estimates. In order to proceed with our
exploration program, we will require additional financing. There are no
assurances that we will be able to obtain sufficient financing on terms
acceptable to us, or at all.

4

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RESULTS OF OPERATIONS

Third Quarter and Nine Months Summary

Third Quarter Ended September 30
    
    Nine Months Ended September 30Percentage
    
    
    
    PercentageIncrease /
    
    
    
    Increase /2006
    2005
    (Decrease)
    
    2006
    2005
    (Decrease)Revenue
    $Nil
    $Nil
    N/A
    
    $Nil
    $Nil
    N/AExpenses
    (30,432)
    (13,212)
    130.3%
    
    (72,562)
    (23,878)
    203.9%Net Loss
    $(30,432)
    $(13,212)
    130.3%
    
    $(72,562)
    $(23,878)
    203.9%


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 property. We are currently in the
exploration stage of our business and can provide no assurances that we will
discover commercially exploitable levels of mineral resources on our property,
or if such resources are discovered, that we will be able to enter into
commercial production of our mineral property.

Expenses

Our operating expenses for the interim periods ended September
30, 2006 and 2005 consisted of the following:

Third Quarter Ended September 30
    
    Nine Months Ended September 30Percentage
    
    
    
    PercentageIncrease /
    
    
    
    Increase /2006
    2005
    (Decrease)
    
    2006
    2005
    (Decrease)Administrative fees
    $ -
    $600
    (100.0%)
    
    $-
    $900
    (100.0%)Consulting fees
    15,000
    -
    100.0%
    
    25,000
    -
    100.0%Exploration expenses
    -
    500
    (100.0%)
    
    -
    500
    (100.0%)Mineral and property option payments
    -
    -
    N/A
    
    -
    -
    N/AOffice and sundry
    1,432
    144
    894.4%
    
    2,225
    196
    1,035.2%Professional fees
    9,820
    9,893
    0.7%
    
    37,837
    17,850
    (78.8%)Property expenses
    3,247
    -
    100.0%
    
    3,247
    -
    100.0%Regulatory fees
    533
    25
    2,032.0%
    
    3,253
    2,082
    56.2%Rent
    400
    2,050
    (80.5%)
    
    1,000
    2,350
    (57.4%)Total Expenses
    $30,432
    $13,212
    130.3%
    
    $72,562
    $23,878
    203.9%


5

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The increases in our expenses for the nine months ended
September 30, 2006 as compared to the nine months ended September 30, 2005 were
due to the increases in our consulting fees and to increases in our professional
fees associated with preparing and filing our Quarterly and Annual Reports under
the Securities Exchange Act of 1934. Consulting fees paid during the period were
paid to our sole executive officer in consideration for her services as our
Chief Executive Officer, President, Chief Financial Officer, Treasurer and
Secretary. The majority of our professional fees for the quarter ended September
30, 2006 consisted of accounting and legal fees incurred by us in meeting our
ongoing reporting obligations under the Securities Exchange Act of 1934.

We anticipate that our operating expenses will increase
significantly as we undertake our plan of operation and pursue our exploration
program for the Ireland Claim. Expenses will continue to increase if our board
of directors decides to proceed beyond Phase I of our exploration program.
However, there are no assurances that such a determination will be made.

Liquidity and Capital Resources

|Working Capital              |                             |                            |                      
|---------------------------- | --------------------------- | -------------------------- | ---------------------
|                             |                             |                            | Percentage           
|                             | At
      September 30, 2006 | At
      December 31, 2005 | Increase / (Decrease)
|Current Assets               | $11,960                     | $63,242                    | (81.1%)              
|Current Liabilities          | (48,671)                    | (27,391)                   | 77.7%                
|Working Capital (Deficiency) | $(36,711)                   | $35,851                    | (202.4%)             

|Cash Flows                                          |                                |          
|--------------------------------------------------- | ------------------------------ | ---------
|                                                    | Nine Months Ended September 30
|                                                    | 2006                           | 2005     
|Net Cash Used In Operating
      Activities         | $(51,282)                      | $(17,061)
|Net Cash From Financing Activities                  | -                              | 90,000   
|Net Increase (Decrease) In
      Cash During Period | $(51,282)                      | $72,939  

The decrease in our working capital at September 30, 2006 from
our year ended December 31, 2005, and the increase in our cash used during the
period ended September 30, 2006 from the comparable periods of the preceding
fiscal year are primarily a result of the increase in consulting fees and the
increase in professional fees associated with preparing and filing our Quarterly
and Annual Reports under the Securities Exchange Act of 1934, and from the fact
that we had no revenue or sources of financing during the period ended September
30, 2006.

We currently do not have sufficient working capital to meet the
anticipated costs of completing our exploration program. In addition, there is
no assurance that the actual costs of completing those phases of our exploration
program will not exceed our estimates. We will require additional financing in
order to complete our exploration program for the Ireland Claim. There is no
assurance that we will be able to acquire such additional financing on terms
that are acceptable to us, or at all.

6

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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 Property Option Payments and Exploration
Expenditures

We follow a policy of expensing exploration expenditures until
a production decision is made in respect of the project and we are reasonably
assured that we will receive regulatory approval to permit mining operations
which may include the receipt of a legally binding project approval certificate.

Our management periodically reviews the carrying value of our
investments in mineral leases and claims with internal and external mining
related professionals. A decision to abandon, reduce or expand a specific
project is based upon many factors including general and specific assessments of
mineral deposits, anticipated future mineral prices, anticipated future costs of
exploring, developing and operating a production mine, the expiration term and
ongoing expenses of maintaining mineral properties and the general likelihood
that we will continue exploration on such project. We do not set a
pre-determined holding period for properties with unproven deposits; however,
properties which have not demonstrated suitable metal concentrations at the
conclusion of each phase of an exploration program are re-evaluated to determine
if future exploration is warranted, whether there has been any impairment in
value and that their carrying values are appropriate.

If an area of interest is abandoned or it is determined that
its carrying value cannot be supported by future production or sale, the related
costs are charged against operations in the year of abandonment or determination
of value. The amounts recorded as mineral leases and claims represent costs to
date and do not necessarily reflect present or future values.

7

---

Our exploration activities and proposed mine development are
subject to various laws and regulations governing the protection of the
environment. These laws are continually changing, generally becoming more
restrictive. We have made, and expect to make in the future, expenditures to
comply with such laws and regulations.

The accumulated costs of properties that are developed on the
stage of commercial production will be amortized to operations through
unit-of-production depletion.

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

If we do not obtain additional financing, our business will
fail.

Our current operating funds are inadequate to complete Phases
I, III and IV of our planned exploration for the Ireland Claim. Our business
plan calls for significant expenses in connection with the exploration and
development of the Ireland Claim. As a result, we will require additional
financing to complete our exploration and development plans. We will also
require additional financing if the costs of exploration are greater than
anticipated and to sustain our business operations if we are not successful in
earning revenues once exploration is complete.

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 claim, and investor sentiment. These factors
may make the timing, amount, terms or conditions of additional financing
unavailable to us.

If we complete a financing through the sale of additional
shares of our common stock, shareholders will experience dilution.

The most likely source of future financing presently available
to us is through the issuance of our common stock. Any sale of share capital
will result in dilution to existing shareholders. The only other anticipated
alternative for the financing of further exploration would be the offering by us
of

8

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an interest in our property to be earned by another party or
parties carrying out further exploration thereof, which is not presently
contemplated.

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

In order to maintain our rights to the Ireland Claim, 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. A failure by us to
meet the annual maintenance requirements under federal and state laws could
cause our rights to the Ireland Claim to lapse.

Because we have not commenced business operations, we face a
high risk of business failure.

We were incorporated on February 20, 2001 and, to date, have
been involved primarily in organizational activities, 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 new mineral exploration
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 claim 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.

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 claim. 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 claim 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.

9

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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 mineral claim, we may not be able to successfully obtain commercial
production.

Our mineral claim does 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 the mineral claim
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. These conditions, as indicated in the audit report of Telford
Sadovnick, PLLC, for the fiscal year ended December 31, 2005, raise substantial
doubt as to our ability to continue as a going concern. 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.

Because our executive officers have only agreed to provide
their services on a part-time basis, they may not be able or willing to devote a
sufficient amount of time to our business operations, causing our business to
fail.

Our executive officers provide their services on a part-time
basis. Our officers may pursue other business activities, provided that these
other activities do not interfere with their obligations to us. Our officers
devote their full-time attention to other business pursuits. It is therefore
possible that, over time, our officers may not be able to devote sufficient time
to the management of our business, as and when needed.

10

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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
that our business will fail.

Our executive officers and director 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 the 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 mineral claim, 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.

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 claim, 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 Chief Executive Officer and Chief 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 Chief Executive Officer and Chief
Financial Officer has concluded that these disclosure controls and procedures
are effective.

There were no changes in our internal control over financial
reporting during the quarter ended September 30, 2006 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

11

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PART II - OTHER INFORMATION

ITEM
1.               
LEGAL PROCEEDINGS.

None.

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

None.

ITEM
3.               
DEFAULTS UPON SENIOR SECURITIES.

None.

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

None.

ITEM
5.               
OTHER INFORMATION.

None.

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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.(5)                                                                                             
|        |  |                                                                                                                                                                                                               
|3.3     |  | Bylaws.(1)                                                                                                                                                                                                    
|        |  |                                                                                                                                                                                                               
|10.1    |  | Option Agreement
        between International Arimex Resources Inc. and the Company to acquire
        a 75% undivided interest in the Claw Property, dated May 5, 2004.(2)                                  
|        |  |                                                                                                                                                                                                               
|10.2    |  | Amendment No.
        1 to Option Agreement between International Arimex Resources Inc. and
        the Company, dated August 18, 2004.(3)                                                                    
|        |  |                                                                                                                                                                                                               
|10.3    |  | Purchase Agreement
        between Multi Metal Mining Corp. and the Company, dated November 30, 2004.(4)                                                                                                      
|        |  |                                                                                                                                                                                                               
|31.1    |  | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002.                                                       
|        |  |                                                                                                                                                                                                               
|32.1    |  | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.
|        |  |                                                                                                                                                                                                               
|99.1    |  | Certificate
        of Location for the Ireland Claim.(4)                                                                                                                                                     
|        |  |                                                                                                                                                                                                               
|99.2    |  | Report on the
        Ireland Property by W.G. Timmins, P.Eng, dated February 1, 2005.(4)                                                                                                                     

|    |                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------
|(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 Current Report on Form 8-K
      filed on May 21, 2004.                                                
|(3) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2003, filed on September 28,
  2004.
|(4) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2004, filed on October 21, 2005.    
|(5) | Filed as an exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2005 filed on April 12, 2006.       
|    |                                                                                                                                   

13

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SIGNATURES

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

|                         |     | IRELAND INC.                    
|------------------------ | --- | --------------------------------
|                         |     |                                 
|                         |     |                                 
|Dated: November 14, 2006 | By: | /s/ Lorrie Ann Archibald        
|                         |     |                                 
|                         |     | LORRIE ANN ARCHIBALD            
|                         |     | President, Treasurer,           
|                         |     | Chief Executive Officer, and    
|                         |     | Chief Financial Officer         
|                         |     | (Principal Executive Officer and
|                         |     | Principal Financial Officer)    

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