UNITED STATES
                       SECURITIES 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, 2006

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

                        For the transition period from To

                         Commission file number 0-27739

                            Royal Quantum Group, Inc.
        (Exact name of small business issuer as specified in its charter)

                  NEVADA                                   77-0517966
      (State or other jurisdiction of (I.R.S. Employer Identification No.)
        Incorporation or organization)

                           Suite #1100 - 1200 W 73rd
                       Vancouver, British Columbia V6P 6G5
                    (Address of principal executive offices)

                                 (403) 288-4321
                           (Issuer's telephone number)

[X]      Check whether the issuer (1) filed all reports  required to be filed by
         Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or
         for such shorter  period that the  registrant was required to file such
         reports),  and (2) has been subject to such filing requirements for the
         past 90 days.

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


                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the number of shares  outstanding of each of the issuer's classes
of common equity, as of the latest practical date: June 30, 2006 35,858,365

         Transitional  Small Business  Disclosure Format (check one). Yes ; No X



<PAGE>



PART I

ITEM 1.  FINANCIAL STATEMENTS

                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                          (Unaudited)
                                                                           June 30,                December 31,
ASSETS                                                                       2006                      2005
                                                                       ------------------        ------------------
<S>                                                                  <C>                       <C>
Current Assets:
Cash & Cash Equivalents                                              $            52,061       $             1,800
Receivable-Sales taxes                                                             3,210                         -
Inventory                                                                         65,387
                                                                       ------------------        ------------------
     Total Current Assets                                                        120,658                     1,800
                                                                       ------------------        ------------------

Fixed Assets:
Equipment                                                                          3,724                         -
Furniture & Fixtures                                                               1,851                         -
                                                                       ------------------        ------------------
     Total Fixed Assets                                                            5,575
                                                                       ------------------        ------------------

Other Assets:
Prepaid Expenses                                                                       -                         -
Intangible Assets                                                                      1                         1
                                                                       ------------------        ------------------
     Total Other Assets                                                                1                         1
                                                                       ------------------        ------------------

     Total Assets                                                    $           126,234       $             1,801
                                                                       ==================        ==================

LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable                                                     $           102,536       $           102,703
Notes Payable                                                                    190,787                         -
Related Party Payables                                                            69,377                    30,078
Shareholder Loans                                                                 19,845                    55,345
                                                                       ------------------        ------------------
     Total Liabilities                                                           382,545                   188,126
                                                                       ------------------        ------------------

Stockholders' Equity:
 Common Stock, Par value $.001
 Authorized 500,000,000 shares
 Issued 35,858,365 and 33,108,365
 Shares at June 30, 2006 and December 31, 2005                                    35,858                    33,108
 Paid-in Capital                                                               2,751,172                 2,626,423
 Contributed Capital                                                               3,000
 Deficit Accumulated During the
  Development Stage                                                           (3,046,341)               (2,845,856)
                                                                       ------------------        ------------------
   Total Stockholders' Equity                                                   (256,311)                 (186,325)
                                                                       ------------------        ------------------

     Total Liabilities and Stockholders' Equity                      $           126,234       $             1,801
                                                                       ==================        ==================
</TABLE>

                       See Accompanying Notes



<PAGE>



                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                                       Cumulative
                                                                                                                         since
                                                                                                                       August 23,
                                                                                                                         2002
                                                     For the three months ended      For the six months ended         inception of
                                                              June 30,                     June 30,                   development
                                                        2006         2005           2006               2005              stage
                                                     -----------  -----------  ----------------  -----------------  ----------------
<S>                                                 <C>         <C>          <C>               <C>                  <C>
Revenues                                            $         - $          - $               - $                -                 -
                                                     -----------  -----------  ----------------  -----------------  ----------------
   Total Revenues                                             -            -                 -                  -                 -
                                                     -----------  -----------  ----------------  -----------------  ----------------

Expenses:
   Consulting Fees                                       31,301       15,313            46,600             30,813           669,145
   Compensation Expense                                       -            -                 -                  -           128,790
   General & Administrative                              43,576       11,819            46,606             22,583           306,865
                                                     -----------  -----------  ----------------  -----------------  ----------------

     Loss from Operations                               (74,877)     (27,132)          (93,206)           (53,396)       (1,104,800)
                                                     -----------  -----------  ----------------  -----------------  ----------------

Other Income (Expenses)
   Write down of Goodwill                                (2,500)           -            (2,500)                 -            (2,500)
   Interest, Net                                       (104,706)           -          (104,779)                 -          (105,002)
                                                     -----------  -----------  ----------------  -----------------  ----------------
     Total Other Income (Expense)                      (107,206)           -          (107,279)                 -          (107,502)
                                                     -----------  -----------  ----------------  -----------------  ----------------

     Net Loss from Continuing Operations            $  (182,083)$    (27,132)$        (200,485)$          (53,396)       (1,212,302)
                                                     -----------  -----------  ----------------  -----------------  ----------------

Discontinued Operations
   Loss from operation of discontinued component              -      (25,873)                -            (51,745)       (1,967,294)
   Gain on disposal,net of tax effect of $0                   -            -                 -                  -           133,255
                                                     -----------  -----------  ----------------  -----------------  ----------------
     Net Income (Loss) from Discontinued Operations           -      (25,873)                -            (51,745)       (1,834,039)
                                                     -----------  -----------  ----------------  -----------------  ----------------

     Net Loss                                          (182,083)     (53,005)         (200,485)          (105,141)       (3,046,341)
                                                     ===========  ===========  ================  =================  ================

Basic and Diluted Loss Per Share
   Continuing Operations                                $ (0.01)         $ -           $ (0.01)               $ -
   Discontinued Operations                                    -            -                 -                  -
                                                     -----------  -----------  ----------------  -----------------
Loss per share                                          $ (0.01)         $ -           $ (0.01)               $ -
                                                     ===========  ===========  ================  =================

Weighted Average Shares Outstanding                  33,691,698   25,138,365        33,691,698         25,138,365
                                                     ===========  ===========  ================  =================
</TABLE>
                    See Accompanying Notes



<PAGE>



                    ROYAL QUANTUM GROUP, INC.
                  (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (Unaudited)
<TABLE>
<CAPTION>
                                                                                                                    Cumulative
                                                                                                                       since
                                                                                                                     August 23,
                                                                                                                       2002
                                                                          For the Six months ended                 inception of
                                                                                             June 30,               development
                                                                           2006                  2005                  stage
                                                                     ------------------    ------------------    ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                <C>                   <C>                   <C>
Net Loss                                                           $          (200,485)  $          (105,141)  $        (3,046,341)
Net Income/(Loss)from Disconued Operations                                                                               1,578,681
Adjustments to reconcile net income (loss) to
   net cash provided (used in) operating activities:
  Stock issued for interest                                                    100,000                     -               100,000
  Stock issued for start up costs                                                    -                     -                12,600
  Stock issued for services                                                          -                     -               499,390
  Writedown of goodwill                                                          2,500                                       2,500
  (Increase) decrease in taxes receivable                                       (3,210)                 (291)               (3,210)
  (Increase) decrease in inventory                                             (65,387)                    -               (65,387)
  (Increase) decrease in deposits                                                    -                53,067                     -
  (Increase) decrease in prepaid expenses                                            -                   600                     -
  Increase (decrease) in accounts payable                                         (167)               18,475               245,716
                                                                     ------------------    ------------------    ------------------
   Net cash provided (used in) continuing activities                          (166,749)              (33,290)             (676,051)
   Net cash provided (used in) discontinuing activities                              -                46,716               386,515
                                                                     ------------------    ------------------    ------------------
   Net cash provided by (used in) operating activities                        (166,749)               13,426              (289,536)
                                                                     ------------------    ------------------    ------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of fixed assets                                                     (5,575)                    -                (5,575)
                                                                     ------------------    ------------------    ------------------
   Net cash provided by (used in) investing activities                          (5,575)                    -                (5,575)
                                                                     ------------------    ------------------    ------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from shareholders                                                          39,298                25,000               147,643
Payment of loan from shareholders                                               (7,500)              (45,000)              (60,500)
Notes payable                                                                  190,787                     -               190,787
Contributed capital                                                                  -                     -                 2,842
Stock issued in exchange for cash                                                    -                     -                66,400
                                                                     ------------------    ------------------    ------------------
   Net cash provided by (used in) financing activities                         222,585               (20,000)              347,172
                                                                     ------------------    ------------------    ------------------

Net (Decrease) increase in Cash and Cash Equivalents                            50,261                (6,574)               52,061
Cash and Cash Equivalents at Beginning of Period                                 1,800                 7,882                     -
                                                                     ------------------    ------------------    ------------------
Cash and Cash Equivalents at End of Period                         $            52,061   $             1,308   $            52,061
                                                                     ==================    ==================    ==================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
-------------------------------------------------
Cash paid during the year for:
   Interest                                                        $                 -   $                 -   $               107
   Income taxes                                                    $                 -   $                 -   $                 -
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Stock issued in plan of reorganization                             $                 -   $                 -   $               858
Stock issued in asset acquisition                                  $                 -   $                 -   $         2,243,000
Stock issued for services                                          $                 -   $                 -   $           449,390
Stock issued for cancellation of debt                              $            25,000   $                 -   $           174,700
Shareholder loans converted to paid in capital                     $             3,000   $                 -   $             3,000
</TABLE>
                      See Accompanying Notes



<PAGE>




                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         This summary of accounting  policies for Royal Quantum Group, Inc. (the
"Company")  is  presented to assist in  understanding  the  Company's  financial
statements.  The accounting  policies conform to generally  accepted  accounting
principles  and  have  been  consistently  applied  in  the  preparation  of the
financial statements.

Nature of Operations and Going Concern

         The accompanying  financial  statements have been prepared on the basis
of accounting principles applicable to a "going concern",  which assume that the
Company  will  continue in  operation  for at least one year and will be able to
realize  its assets  and  discharge  its  liabilities  in the  normal  course of
operations.

         Several conditions and events cast doubt about the Company's ability to
continue  as  a  "going  concern".  The  Company  has  incurred  net  losses  of
approximately  $3,000,000  for the period  from August 23,  2002  (inception  of
development stage) to June 30, 2006, has a liquidity problem, and as of June 30,
2006 has no source of revenue. In the interim,  shareholders of the Company have
committed to meeting any  shortfall of  operational  cash flow.  In addition the
company may require increasing equity and debt financing in order to finance its
business activities on an ongoing basis.

         These  financial  statements do not reflect  adjustments  that would be
necessary  if the Company  were unable to continue as a "going  concern".  While
management believes that the actions already taken or planned, will mitigate the
adverse conditions and events which raise doubt about the validity of the "going
concern" assumption used in preparing these financial  statements,  there can be
no assurance that these actions will be successful.

         If the  Company  were unable to  continue  as a "going  concern",  then
substantial adjustments would be necessary to the carrying values of assets, the
reported  amounts of its  liabilities,  the reported  expenses,  and the balance
sheet classifications used.

Organization and Basis of Presentation

         The Company was  incorporated  under the laws of the State of Nevada on
October  22,  1996 under the name PSM Corp.  The  Company  ceased all  operating
activities  during  the period  from  October  22,  1996 to July 9, 1999 and was
considered  dormant.  On July 9, 1999,  the Company  obtained a  Certificate  of
renewal from the State of Nevada.  On January 11, 2000, the company  changed its
name to Mentor On Call, Inc.


<PAGE>

                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Basis of Presentation (Continued)

         On  October  3,  2002,  the  Company   changed  its  name  to  Platinum
SuperYachts, Inc. in anticipation of a merger with SuperYachts Holdings, Inc. (a
Nevada  Corporation  that was  incorporated on August 13, 2002). On November 15,
2002,  the  shareholders  of the Platinum  SuperYachts,  Inc.  completed a stock
exchange  agreement with  SuperYachts  Holdings,  Inc. dated August 8, 2002. The
merger was accounted for as a reverse merger,  with  SuperYachts  Holdings being
treated as the acquiring entity for financial reporting purposes.  In connection
with this merger,  SuperYachts  Holdings  issued  858,365 shares of common stock
(100%) in exchange for the assets and  liabilities of the Platinum  SuperYachts,
Inc.

         For  financial  reporting  purposes,  Platinum  SuperYachts,  Inc.  was
considered a new reporting entity on November 15, 2002

         The merger was recorded as a recapitalization.  In connection with this
recapitalization, the number of shares outstanding prior to the merger have been
restated to their post merger  equivalents  (increased from 1,400,000  shares to
14,000,000).  All  references in the  accompanying  financial  statements to the
number of Common  shares and  per-share  amounts for 2002 have been  restated to
reflect the equivalent number of post merger shares.

         On November  23, 2005  holders of a majority  of the  Company's  common
stock  approved the Amendment to change the name of the Company to Royal Quantum
Group,  Inc.,  to increase  the number of shares of common  stock the Company is
authorized to issue to  500,000,000  and to authorize the Company to issue up to
10,000,000 shares of preferred stock.

         As of June 30, 2006, the Company is in the development  stage,  and has
concluded the acquisition of X-Treme  Oilfield  Communications  Inc. The company
issued  250,000  shares  of  restricted   common  stock  for  X-treme   Oilfield
Communications,  Inc. X-treme Oilfield  Communications  is a newly  incorporated
shell company as of February 2006. X-treme has no prior operations and no assets
or liabilities as of the date of acquisition.

Nature of Business

         Royal Quantum Group is committed to the  acquisition and development of
small to medium size businesses that demonstrate existing or near term cash flow
opportunity.

            The company  has  acquired  X-Treme  Oilfield  Communications,  Inc.
X-Treme is a provider of high-speed satellite  communications to the oil and gas
sector.  The X-Treme  product


<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Nature of Business (Continued)

line  offers  voice,  fax and real time data  transfers,  using  both  wired and
wireless  technology  withthe  capability to broadcast to multiple  users on any
specific  location.  X-Treme also  provides Hot Spot  Services and can configure
phone/fax capabilities through VoIP and FoIP installations,  The company is also
seeking to expand to other  industries,  which  require  the need for high speed
communications in remote locations.

           In addition we will  continue to focus on companies  that are lacking
in financial ability to take their product to a profitable level.  Royal Quantum
will  provide  the  opportunity  to access  the  public  markets as a source for
capital along with the management expertise to allow the business to develop and
grow to its full potential. By placing the acquired companies under the umbrella
of the parent  corporation,  Royal Quantum Group will poise itself to be a solid
cash flow positive corporation.

Cash and Cash Equivalents

         For purposes of the statement of cash flows, the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Interim Reporting

         The unaudited financial  statements as of June 30, 2006 and for the six
months then ended reflect, in the opinion of management,  all adjustments (which
include  only  normal  recurring  adjustments)  necessary  to  fairly  state the
financial  position and results of operations  for the three  months.  Operating
results for interim periods are not necessarily  indicative of the results which
can be expected for full years.

Intangible Assets

         The Company has adopted the Financial  Accounting  Standards Board SFAS
No., 142, "Goodwill and Other Intangible Assets." SFAS 142 requires, among other
things,  that companies no longer amortize  goodwill,  but instead test goodwill
for  impairment  at least  annually.  In addition,  SFAS 142  requires  that the
Company identify reporting units for the purposes of assessing  potential future
impairments of goodwill,  reassess the useful lives of other existing recognized
intangible   assets,  and  cease  amortization  of  intangible  assets  with  an
indefinite  useful life.  An  intangible  asset with an  indefinite  useful life
should be tested for impairment in accordance with the guidance in SFAS 142.



<PAGE>



                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Intangible Assets (Continued)

Intangible  Assets  consisted of the following at June 30, 2006 and December 31,
2005:

<TABLE>
<CAPTION>
                                                     June 30,            June 30,
                    Intangible Asset                   2006                2005          Amortization Period
         --------------------------------------- ------------------  -------------------------------------------
<S>                                              <C>                 <C>
         E-Learning System                       $                1  $                1        Indefinite
         Less accumulated amortization                            -                   -
                                                 --------------------------------------
         Total                                   $                1  $                1
                                                 ==================  ==================
</TABLE>

         Total  amortization  expense for the six months ended June 30, 2006 and
December 31, 2005 was $0 and $0 respectively.

Pervasiveness of Estimates

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

Foreign Currency Translation

         The Company's primary functional currency is the U.S. dollar.  Monetary
assets and liabilities  resulting from  transactions  with foreign suppliers and
customers  are  translated at year-end  exchange  rates while income and expense
accounts are  translated at average  rates in effect during the year.  Gains and
losses on translation are included in income.

Concentrations of Credit Risk

         The  Company has no  significant  off-balance-sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign hedging arrangements.


<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings (Loss) per Share

         Basic loss per share has been  computed  by  dividing  the loss for the
period  applicable to the common  stockholders by the weighted average number of
common  shares  outstanding  during the years.  There were no common  equivalent
shares outstanding at June 30, 2006 and 2005.

Stock Compensation for Non-Employees

         The  Company  accounts  for the fair  value of its  stock  compensation
grants for  non-employees  in accordance with FASB Statement 123. The fair value
of each grant is equal to the market price of the Company's stock on the date of
grant if an active  market  exists or at a value  determined  in an arms  length
negotiation between the Company and the non-employee.

Principles of Consolidation

         The accompanying consolidated Financial Statements include the accounts
of Royal Quantum Group, Inc. and its wholly owned  subsidiary,  X-Treme Oilfield
Communications.  Intercompany  transactions and balances have been eliminated in
consolidation and combination.

NOTE 2 - INCOME TAXES

         As of June 30, 2006, the Company had a net operating loss  carryforward
for income tax  reporting  purposes  of  approximately  $11,077,691  that may be
offset against  future  taxable income through 2025.  Current tax laws limit the
amount of loss  available  to be offset  against  future  taxable  income when a
substantial  change in  ownership  occurs.  Therefore,  the amount  available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements, because the Company believes there is a 50% or greater
chance the  carryforwards  will expire  unused.  Accordingly,  the potential tax
benefits of the loss  carryforwards  are offset by a valuation  allowance of the
same amount.

                                     2005                2004
                              ------------------- -------------------
Net Operating Losses                 $ 3,766,415   $    3,304,818
Accrued Consulting Fees                 (10,227)          (41,888)
Valuation Allowance                  (3,756,188)       (3,262,930)
                              ------------------- -------------------
                                        $      -   $           -
                              =================== ===================

<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 2 - INCOME TAXES (Continued)

         The  provision for income taxes differ from the amount  computed  using
the federal US statutory income tax rate as follows:

<TABLE>
<CAPTION>
                                                                         2005                2004
                                                                  ------------------- -------------------
<S>                                                                <C>                  <C>
Provision (Benefit) at US Statutory Rate                           $       (57,483)     $   (587,437)
Loss on Sale of Assets previously written down for book purposes
                                                                          (359,151)                -
Amortization                                                               (44,963)                -
Accrued Consulting Fees                                                    (31,661)           19,788
Increase (Decrease) in Valuation Allowance                                 493,258           567,649
                                                                  ------------------- -------------------
                                                                    $            -      $          -
                                                                  =================== ===================
</TABLE>

         The Company  evaluates its valuation  allowance  requirements  based on
projected future operations.  When  circumstances  change and causes a change in
management's  judgment  about the  recoverability  of deferred  tax assets,  the
impact of the change on the valuation is reflected in current income.

NOTE 3 - DEVELOPMENT STAGE COMPANY/GOING CONCERN

         The Company has not commenced its intended principal  operations and as
is common with a  development  stage  company,  the  Company  has had  recurring
losses.  Continuation  of the  Company  as a going  concern  is  dependent  upon
obtaining  the  additional  working  capital  necessary to be  successful in its
planned  activity,  and the  management of the Company has developed a strategy,
which it believes will  accomplish  this  objective  through  additional  equity
funding  and long term  financing,  which will enable the Company to operate for
the coming year.

NOTE 4 - LEASE AGREEMENT

         The company  has  terminated  its virtual  office  lease  agreement  in
Vancouver  Canada  effective May 31, 2006 and has entered into a  month-to-month
lease  agreement  for a office in Calgary,  Alberta,  Canada.  This lease can be
canceled on one  month's  written  notice.  The current  lease  requires  rental
payments  of  approximately  $1,500  ($1,850  Canadian  Dollars)  per month plus
applicable  taxes. For the six months ended June 30, 2006 the Company had $3,884
in rent expense.

<PAGE>

                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 5 - RELATED PARTY TRANSACTIONS

         Effective  July 11,  2005,  Shahhid  Vohra  resigned  his  positions as
director,  vice-president and secretary of Platinum SuperYachts, Inc. There were
no  disagreements  between Mr. Vohra and the Company  relating to the  Company's
operations, policies or practices.

         Effective July 11, 2005 the Company issued 2,000,000  restricted shares
to Roger Janssen the company's Vice  President and Secretary.  These shares have
been valued at the market price of $0.012.  Compensation  expense of $24,000 has
been booked on the accompanying Statement of Operations.

         On September  29, 2005,  The Company  sold  certain  assets  related to
designing,  building and selling  yachts (the  "Assets") to Shahhid  Vohra,  the
Company's former Vice-President and Secretary.  As consideration for the assets,
Mr. Vohra agreed to allow the Company to cancel 9,000,000 shares (the "Cancelled
Shares") of the Company's  common stock  beneficially  owned by Mr.  Vohra.  The
Cancelled Shares were originally  issued to Mr. Vohra as consideration  when the
Company  purchased  the  Assets  from Mr.  Vohra in  November  2002.  The Assets
included,  among other things, yacht models, a hull display,  yacht blue prints,
the    content    of    the     Company's     website,     the    domain    name
www.platinumsuperyachts.com  and the  rights to the name  Platinum  SuperYachts,
Inc.

         On October 4, 2005,  in  accordance  to the Board of Directors  written
consent  effective  September 13, 2005, the Company issued  14,970,000 shares of
common  stock (the  "Shares")  to Santeo  Financial  Corporation  ("Santeo")  in
exchange for the  cancellation  of $149,700  owed by the Company to Santeo.  Ron
Ruskowsky,  the Company's Director,  President and Chief Executive Officer is an
affiliate of Santeo.  The Shares were issued  without  registration  in reliance
upon the exemption  provided by Section 4(2) of the  Securities  Act of 1933, as
amended and Regulation D promulgated thereunder.

         On May 8, 2006 the company paid $7,500 to Shahhid Vohra for  settlement
of an outstanding shareholder loan owing to Mr. Vohra in the amount of $10,500.

         On June 14, 2006, the Company issued  2,500,000  shares of common stock
to Keith Campbell in total  satisfaction of a shareholder  loan in the principal
amount of $25,000.00. The securities were issued pursuant to Section 4(2) of the
Securities Act of 1933.


<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005



NOTE 5 - RELATED PARTY TRANSACTIONS (Continued)

         As of June 30, 2006 and  December  31,  2005,  the Company  owed Santeo
Financial  $69,377  and  $30,078  respectfully  for  consulting  services.   Ron
Ruskowsky, President and CEO of the Company is an affiliate of Santeo Financial.
Currently  the Company has an agreement  with Santeo  Financial  whereby  Santeo
Financial provides  consulting  services in exchange the Company agrees to pay a
consultant fee of $5,000 per month.

         As of June 30, 2006 and December 31, 2005,  shareholders  have advanced
the Company  $19,845  and  $55,345,  respectively,  payable on demand and do not
carry an interest rate. This  transaction has been recorded in the  accompanying
financial statements as Shareholder loans.

NOTE 6 - COMMON STOCK AND WARRANTS

         Effective July 11, 2005 the company issued 2,000,000  restricted shares
to Roger Janssen the company's Vice  President and Secretary.  These shares have
been valued at the market price of $0.012.  Compensation  expense of $24,000 has
been booked on the accompanying Statement of Operations.

         On October 4, 2005,  in  accordance  to the Board of Directors  written
consent  effective  September 13, 2005, the Company issued  14,970,000 shares of
common  stock (the  "Shares")  to Santeo  Financial  Corporation  ("Santeo")  in
exchange for the  cancellation  of $149,700  owed by the Company to Santeo.  Ron
Ruskowsky,  the Company's Director,  President and Chief Executive Officer is an
affiliate of Santeo.  The Shares were issued  without  registration  in reliance
upon the exemption  provided by Section 4(2) of the  Securities  Act of 1933, as
amended and Regulation D promulgated  thereunder.  These shares have been valued
at the market price on the date of the  agreement of $0.017.  In addition to the
cancellation of the $149,700 and additional  amount of  compensation  expense of
$104,790 has been booked on the accompanying Statement of Operations.

         On June 14, 2006, the Company issued  2,500,000  shares of common stock
to Keith Campbell in total  satisfaction of a shareholder  loan in the principal
amount of $25,000 and interest of $100,000.  The securities were issued pursuant
to Section 4(2) of the Securities Act of 1933.

         Pursuant to an agreement  effective  June 30, 2006,  the Company issued
250,000  restricted  common  shares  for the  acquisition  of  X-Treme  Oilfield
Communications, Inc.


<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 7 - NOTES PAYABLE

         On February  24,  2006 the Company  entered  into a note  payable  with
Integrated  Business  Concepts,  Inc.  that is due upon  demand and  carries and
interest rate of 12%. As of June 30, 2006, the amount owing on the note consists
of principal in the amount of $185,795 and interest of $4,992.

NOTE 8 - PENDING LITIGATION

         Dieterich & Associates v. Platinum SuperYachts, Inc. Dieterich obtained
a default judgment in case number 04T01643 in Los Angeles County, California for
legal services rendered in the amount of $9,807.  The Company settled the matter
and obtained a release for $5,000.  As of June 30, 2006 $5,000 has not been paid
and is included in the accounts payable balance on the balance sheet.

NOTE 9 - DISCONTINUED OPERATIONS

         On September 29, 2005, Royal Quantum Group, Inc. (The Company) disposed
of certain  assets  related to  designing,  building  and  selling  yachts.  The
decision  to sell the  component  was  based  on the fact  that we have not been
successful  in the mega yacht  industry  due to two  important  factors.  First,
purchasers of yachts in the price range of our products  were not  interested in
building  with a  manufacturer  that was  relatively  new in the  industry.  The
preference  of the mega yacht buyer is to work with a builder that has a history
in the business with product  available for the client to view.  Second, we were
unable to close a  financing  large  enough to allow the company to build a spec
yacht.  The ability to have a spec yacht  available to show our clients the high
quality  craftsmanship  of  which  we  were  capable  would  have  significantly
increased  our ability to sell the product.  As the share price of the Company's
common  stock began to decrease,  we were faced with the problem of  significant
shareholder  dilution  to secure a funding  necessary  to build a spec  product.
Management  did not  feel it was in the best  interest  of the  shareholders  to
attempt a  multi-million  dollar  financing  while  faced  with such a low share
price.  Accordingly,  we sold all of the Company's  assets  related to the yacht
business back to the former stockholders of PR Marine Inc. on September 29, 2005
in exchange for the former stockholders of PR Marine Inc. agreeing to cancel all
of their outstanding shares of the Company.



<PAGE>


                            ROYAL QUANTUM GROUP, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE SIX MONTHS ENDED JUNE, 2006 AND 2005

NOTE 9 - DISCONTINUED OPERATIONS (Continued)

         Operating  results of this  discontinued  operation  for the year's six
months ended June 30, 2006 is shown separately in the accompanying  statement of
operations.  The operating  results of the  discontinued  operations for the six
months ended June 30, 2006 consist of:

                                                     June 30,
                                                       2006
                                               ---------------------
Sales                                          $                  -
Cost of Goods Sold                                                -
                                               ---------------------
Gross Profit                                                      -

Depreciation and Amortization                              (51,745)
                                               ---------------------

Net Income (Loss)                              $           (51,745)
                                               =====================







<PAGE>



ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
OPERATIONS

This  statement  includes  projections  of future  results and "forward  looking
statements" as that term is defined in Section 27A of the Securities Act of 1933
as amended (the "Securities  Act"),  and Section 21E of the Securities  Exchange
Act of 1934 as amended (the "Exchange Act"). All statements that are included in
this Quarterly  Report,  other than  statements of historical  fact, are forward
looking statements. Although management believes that the expectations reflected
in these forward  looking  statements are  reasonable,  it can give no assurance
that such expectations will prove to have been correct.

FINANCIAL SUMMARY

Results of Operations for the Six Months Ended June 30, 2006

The net loss of $200,485 for the six months ended June 30, 2006 was comprised of
Interest Expense of $104,779 Consulting fees in the amount of $46,600 Accounting
and Legal of $5,146  General  and  Administrative  of $35,576,  Rent  Expense of
$3,884.

Results of Operations for the Six Months Ended June 30, 2005

The net loss of $105,141 for the six months ended June 30, 2005 was comprised of
consulting fees in the amount of $30,813, general and administrative of $22,583,
and loss for operations of discontinued component of $51,745.

Liquidity and Capital Resources

For the Six Months ended June 30, 2006; the Company's cash position increased by
$50,261. Cash used in operating activities totaled $166,749, while cash provided
by financing activities was $222,585.

For the Six Months ended June 30, 2005; the Company's cash position decreased by
$6,574. Cash provided in operating  activities totaled $13,426,  while cash used
by financing activities was $20,000.

MANAGEMENT PLAN OF OPERATIONS

We are  committed to the  acquisition  and  development  of small to medium size
businesses that demonstrate existing or near term cash flow opportunity.

On June 30, 2006 company acquired X-Treme Oilfield  Communications  Ltd. X-Treme
is a provider of high-speed satellite  communications to the oil and gas sector.
The X-Treme product line offers voice,  fax and real time data transfers,  using
both wired and wireless  technology with the capability to broadcast to multiple
users on any specific location.  X-Treme also provides Hot Spot Services and can
configure phone/fax capabilities through VoIP and FoIP installations.

The company is seeking to expand to other industries, which require the need for
high speed communications in remote locations.  X-Treme Oilfield  Communications
will operate as a wholly owned subsidiary of Royal Quantum Group Inc.

<PAGE>

In  addition,  we will  continue  to focus on  companies  that  are  lacking  in
financial  ability to take their product to a profitable  level. We will provide
the  opportunity to access the public markets as a source for capital along with
the  management  expertise to allow the business to develop and grow to its full
potential.  By placing the acquired  companies  under the umbrella of the parent
corporation, we hope to achieve profitability.

As of June 30, 2006, we are in the  development  stage.  As a development  stage
company, we have had recurring losses during this phase of operations.

ITEM 3. CONTROLS AND PROCEDURES
Royal Quantum Group Inc.  management,  including the Principal Executive Officer
and  Principal   Financial   Officer,   have  conducted  an  evaluation  of  the
effectiveness  of disclosure  controls and  procedures  pursuant to Exchange Act
Rule 13a-14(c) and 15d-14(c).  Based on that evaluation, the Principal Executive
Officer and Principal  Financial Officer concluded that the disclosure  controls
and procedures are effective in ensuring that all material  information required
to be filed in this  quarterly  report  has been made  known to them in a timely
fashion. There have been no significant changes in internal controls or in other
factors that could significantly affect internal controls subsequent to the date
the Principal  Executive Officer and Principal Financial Officer completed their
evaluation.


                           PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

Dieterich &  Associates  v.  Platinum  SuperYachts,  Inc.  Dieterich  obtained a
default  judgment in case number 04T01643 in Los Angeles County,  California for
legal services rendered in the amount of $9,807.  The Company settled the matter
and obtained a release for $5,000.  As of June 30, 2006 this amount has not been
paid and is included in the accounts payable balance on the balance sheet.

ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS

On June 14, 2006, the Company issued  2,500,000  shares of common stock to Keith
Campbell in total  satisfaction of a shareholder loan in the principal amount of
$25,000 and $100,000 of interest. The securities were issued pursuant to Section
4(2) of the Securities Act of 1933.

Pursuant to an agreement  effective  June 30, 2006,  the company  issued 250,000
shares for the acquisition of X-Treme Oilfield Communications Inc.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

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

None for the quarterly reporting period ending June 30, 2006.

ITEM 5. OTHER INFORMATION

The company received financial advances from a private lending group as follows:
On March 7, 2006 the sum of  $14,000.00  (Canadian)  was  received;  on April 5,
2006, the sum of $100,000.00  (Canadian) was received; and on April 18, 006, the
sum of $100,000.00 (Canadian) was received. All three notes bear interest at the
amount of 12% per annum, billable monthly and are payable on demand.

<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

Exhibits

Royal Quantum Group Inc. includes herewith the following exhibits:

Number   Description

31       Certification  Pursuant  to Section  302 of the  Sarbanes-Oxley  Act of
         2002.

32       Certification  Pursuant  to Section  906 of the  Sarbanes-Oxley  Act of
         2002.

Reports on Form 8-K

None

<PAGE>




                                   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.


                            ROYAL QUANTUM GROUP, INC.


Dated: August 24, 2006




                                     By  /S/     Ron Ruskowsky
                                     Ron Ruskowsky,
                                     President, CEO
                                     Principal Executive and Accounting Officer