UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-KSB


            [ X ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                    For the fiscal year ended July 31, 2007

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

     For the transition period from _________________ to __________________

                       Commission file number: 333-119848


                                AAA ENERGY, INC.
                 (Name of small business issuer in its charter)



Nevada                                 Applied For
(State or other jurisdiction of        (I.R.S. Employer Identification No.)
incorporation or organization)

                                3841 Amador Way
                              Reno, Nevada, 89502
                    (Address of principal executive offices)

                                 (775) 827-2324
                           Issuer's telephone number

Securities to be registered pursuant to Section 12(b) of the Act:

Title of each class                    Name of each exchange on which
to be so registered                    each class is to be registered

None                                   None

Securities to be registered pursuant to Section 12(g) of the Act:


                                  Common Stock
                                (Title of Class)

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

                 Yes      X      No _____



<PAGE>
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB.

                 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     X       No _____


State issuer's revenues for its most recent fiscal year:          Nil

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which the common
equity was sold, or the average bid and asked price of such common equity, as
of a specified date within the past 60 days.  (See definition of affiliate in
Rule 12b-2 of the Exchange Act.)

  $30,844,798 as at October 29, 2007 based on the closing trading price of our
                                  common stock

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.

            34,272,000 shares of common stock as at October 29, 2007























<PAGE>

                               TABLE OF CONTENTS

                                                                    PAGE

ITEM 1:  DESCRIPTION OF BUSINESS.......................................4

ITEM 2:  DESCRIPTION OF PROPERTY......................................12

ITEM 3:  LEGAL PROCEEDINGS............................................12

ITEM 4:  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..........12

ITEM 5:  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.....12

ITEM 6:  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION....13

ITEM 7:  FINANCIAL STATEMENTS.........................................15

ITEM 8:  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
         AND FINANCIAL DISCLOSURES....................................25

ITEM 8A: CONTROLS AND PROCEDURES......................................25

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS.26

ITEM 10:  EXECUTIVE COMPENSATION......................................28

ITEM 11:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT..................................................28

ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS..............29

ITEM 13:  EXHIBITS AND REPORTS........................................29

ITEM 14:  PRINCIPAL ACCOUNTANT FEES AND SERVICES......................30







































<PAGE>
PART I


ITEM 1:  DESCRIPTION OF BUSINESS

IN GENERAL

We commenced operations as a company involved in the acquisition and
exploration of resource properties and initially held a 100% interest in five
mineral claims comprising the BA property.  During the fiscal year ended July
31, 2006, our interest in the BA property lapsed. Subsequent to our year ended
July 31, 2007, we entered into a mineral property option agreement to acquire
Salal Creek, comprised of one mineral claim located in the Lillooet Mining
Division in the Province of British Columbia.

We are continuing to review other potential acquisitions in the resource
sector. Currently, we are in the process of completing a due diligence
investigation of various opportunities in the oil and gas sector, as well as
the base and precious metals sectors.  However, there is no guarantee that we
will be able to reach any agreement to acquire such assets.

EMPLOYEES

We have no employees as of the date of this annual report other than our two
directors.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have not incurred any other research or development expenditures since our
incorporation.

SUBSIDIARIES

We do not have any subsidiaries.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or trademarks.

RISK FACTORS

An investment in our common stock involves a high degree of risk.  You should
carefully consider the risks described below and the other information in this
annual report before investing in our common stock. If any of the following
risks occur, our business, operating results and financial condition could be
seriously harmed. The trading price of our common stock could decline due to
any of these risks, and you may lose all or part of your investment.

IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.

Our current operating funds are less than necessary to complete any acquisition
of a business interest and fund its future development.  As of July 31, 2007,
we had cash in the amount of $114,425.  We currently do not have any operations
and we have no income.  We will require additional funds to review, acquire and
develop business assets.  We do not currently have any arrangements for
financing and we can provide no assurance to investors that we will be able to
find such financing if required.









<PAGE>
BECAUSE WE DO NOT HAVE ANY BUSINESS OPERATIONS, WE FACE A HIGH RISK OF BUSINESS
FAILURE.

We were incorporated on May 26, 2004 and have been involved in the acquisition
and exploration of mineral exploration properties. We were unsuccessful in this
initial business plan and are now seeking to acquire an interest in alternative
assets.  We may not be able to identify and acquire any interest in suitable
business assets.

There is no history upon which to base any assumption as to the likelihood that
we will prove successful, and we can provide investors with no assurance that
we will generate any operating revenues or ever achieve profitable operations.
If we are unsuccessful in addressing these risks, our business will fail.

BECAUSE OUR CONTINUATION AS A GOING CONCERN IS IN DOUBT, WE WILL BE FORCED TO
CEASE BUSINESS OPERATIONS UNLESS WE CAN GENERATE PROFITABLE OPERATIONS IN THE
FUTURE.

We have incurred losses since our inception resulting in an accumulated deficit
of $5258,778 at July 31, 2007.  Further losses are anticipated in the
acquisition and development of a business.  As a result, there is substantial
doubt about our ability to continue as a going concern. Our ability to continue
as a going concern is dependent upon our ability to generate profitable
operations in the future and/or to obtain the necessary financing to meet our
obligations and repay our liabilities arising from normal business operations
when they come due.  If we cannot raise financing to meet our obligations, we
will be insolvent and will cease business operations.

BECAUSE OUR PRESIDENT AND A FORMER DIRECTOR OWN 52.5% OF OUR OUTSTANDING COMMON
STOCK, THEY COULD MAKE AND CONTROL CORPORATE DECISIONS THAT MAY BE
DISADVANTAGEOUS TO OTHER MINORITY SHAREHOLDERS.

Our President and one of our former directors own approximately 52.5% of the
outstanding shares of our common stock.  Accordingly, they will have a
significant influence in determining the outcome of all corporate transactions
or other matters, including mergers, consolidations, and the sale of all or
substantially all of our assets.  They will also have the power to prevent or
cause a change in control. The interests of our directors may differ from the
interests of the other stockholders and thus result in corporate decisions that
are disadvantageous to other shareholders.

BECAUSE OUR DIRECTORS HAVE OTHER BUSINESS INTERESTS, THEY MAY NOT BE ABLE OR
WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS OPERATIONS,
CAUSING OUR BUSINESS TO FAIL.

Our president, Dr. Abbott and our secretary and treasurer, Mr. Lorge, intend to
respectively devote 30% and 15% of their business time to our affairs.  It is
possible that the demands on Dr. Abbott and Mr. Lorge from their other
obligations could increase with the result that they would no longer be able to
devote sufficient time to the management of our business.  In addition, Dr.
Abbott and Mr. Lorge may not possess sufficient time for our business if the
demands of managing our business increased substantially beyond current levels.

OUR COMMON SHARES ARE CONSIDERED PENNY STOCK, WHICH LIMITS AN INVESTOR'S
ABILITY TO SELL THE STOCK.

Our shares of common stock constitute penny stock under the Securities and
Exchange Act.  The shares will remain penny stock for the foreseeable future.
The classification of penny stock makes it more difficult for a broker-dealer
to sell the stock into a secondary market, which makes it more difficult for a
purchaser to liquidate his or her investment.  Any broker-dealer engaged by the
purchaser for the purpose of selling his or her shares in our company will be
subject to rules 15g-1 through 15g-10 of the Securities and Exchange Act.
Rather than creating a need to



<PAGE>
comply with those rules, some broker-dealers will refuse to attempt to sell
penny stock.

FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements that involve risks and
uncertainties.  We use words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify such forward-looking statements. You
should not place too much reliance on these forward-looking statements.  Our
actual results are most likely to differ materially from those anticipated in
these forward-looking statements for many reasons, including the risks faced by
us described in the "Risk Factors" section and elsewhere in this annual report.

ITEM 2:  DESCRIPTION OF PROPERTY

We do not have any ownership or leasehold interest in any property.  Our
president, Mr. Earl Abbott, provides us with office space and related office
services free of charge.

ITEM 3:  LEGAL PROCEEDINGS

There are no legal proceedings pending or threatened against us.


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

No matters were submitted during the fourth quarter of our fiscal year to a
vote of security holders, through the solicitation of proxies or otherwise.

PART II

ITEM 5: MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

MARKET INFORMATION

Our shares of common stock were quoted on the OTC Bulletin Board on February
13, 2006.  This market is extremely limited and the prices quoted are not a
reliable indication of the value of our common stock. As of July 31, 2007, our
stock has only been thinly traded.

The  quotations on  the OTC Bulletin Board reflect inter-dealer prices, without
retail  mark-up,  mark-down   or   commission  and  may  not  represent  actual
transactions.

We had 39 shareholders of record as at the date of this annual report.

DIVIDENDS

There  are  no  restrictions  in our articles of incorporation or  bylaws  that
prevent us from declaring dividends.  The  Nevada Revised Statutes, however, do
prohibit  us  from  declaring  dividends  where, after  giving  effect  to  the
distribution of the dividend:

1.    we would not be able to pay our debts as they become due in the usual
      course of business; or

2.    our total assets would be less than the sum of our total  liabilities
      plus the amount that would be needed to satisfy the rights of
      shareholders who have preferential rights superior to those receiving the
      distribution.

We have not declared any dividends, and we do not plan to declare any dividends
in the foreseeable future.



<PAGE>

ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Our plan of operation for the twelve months following the date of this annual
report is to continue to review other potential acquisitions in the resource
sector.  Currently, we are in the process of completing due diligence
investigation of various opportunities in the base metal sector.

As well, we anticipate spending an additional $25,000 on administrative fees,
including fees we will incur in complying with reporting obligations.  Total
expenditures over the next 12 months are therefore expected to be $50,000.

While we have enough funds on hand to cover our administrative expenses for the
next 12 months, we will need additional funding for the review, acquisition and
development of business assets.  We anticipate that additional funding will be
required in the form of equity financing from the sale of our common stock.
However, we do not have any arrangements in place for any future equity
financing.

On August 4, 2007, the Company was granted an option to acquire 100% interest,
subject to a 2% net smelter royalty, in one mineral claim located in the
Lillooet Mining Division in the Province of Briths Columbia.  Under the terms
of the option agreement, the Company must make cash payment of CDN$255,000
and issue 500,000 shares of common stock in various stages as follos:  CDN
$5,000 (paid) upon signing of the agreement, CDN $30,000 and issuance of
100,000 shares of common stock by the first anniversary of this agreement
$40,000 and 100,000 shares by the second anniversary of this agreement:
$50,000 and issuance of 100,000 sharesby the third anniversary of this
agreement; $60,000 and issuance of 100,000 shares by the fourth anniversary
of this agreement; and $70,000 and issuance of 100,000 shares by the fifth
anniversary of this agreement.  The Company must also pay 2% net smelter
returns for royalty ("NSR") upon commencement of commercial production.  The
Company may purchase half of the 2% NSR for on-time payment of $1,000,000.

RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED JULY 31, 2007

We did not earn any revenues during the fiscal year ended July 31, 2007.  We
incurred operating expenses in the amount of $197,161 for the fiscal year.
These operating expenses were comprised of consulting fees of $46,383, travel
and promotion fees of $49,801, investor relations fees of $19,350, accounting
and accounting and audit fees of $9,136, filing and transfer agent fees of
$1,749, , legal fees of $10,000, office costs of $8,136 and bank charges of
$236.

Our net loss in fiscal 2007 ($197,161) was higher than in fiscal 2006 ($36,042)
primarily due to an increase in consulting fees ($46,383 in 2007 as compared to
$12,500 in 2006), an increase in investor relations fees ($19,350 in 2007 as
compared to nil in 2006) and an increase in travel and promotion fes ($49,801
in 2007 as compared to nil in 2006).

We have not attained profitable operations and are dependent upon obtaining
financing to pursue future acquisitions.  For these reasons, there is
substantial doubt that we will be able to continue as a going concern.

ITEM 7:  FINANCIAL STATEMENTS





<PAGE>





















                                AAA ENERGY INC.

                          (FORMERLY AAA MINERALS INC.)

                         (AN EXPLORATION STAGE COMPANY)

                              FINANCIAL STATEMENTS

                                 JULY 31, 2007















REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BALANCE SHEETS

STATEMENTS OF OPERATIONS

STATEMENTS OF CASH FLOWS

STATEMENT OF STOCKHOLDERS' EQUITY

NOTES TO THE FINANCIAL STATEMENTS


<PAGE>



            REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of AAA Energy Inc.:

We  have  audited  the balance  sheets of AAA Energy Inc. (an exploration stage
company)  as  at  July 31, 2007 and 2006  and  the  statements  of  operations,
stockholders'equity and cash flows for the years then ended and the period from
May 26, 2004 (Inception) to  July  31, 2007. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public Company
Accounting Oversight Board (United States). Those  standards  require  that  we
plan  and perform an audit to obtain reasonable assurance whether the financial
statements are free  of  material misstatement.  The Company is not required to
have, nor were we engaged to  perform, an  audit  of  its internal control over
financial reporting. Our audits included consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit procedures  that  are
appropriate  in  the  circumstances, but not for the purpose of  expressing  an
opinion on the effectiveness of the Company's internal  control  over financial
reporting.  Accordingly,  we express  no  such  opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts  and disclosures in
the  financial  statements.   An  audit also includes assessing the  accounting
principles  used  and significant estimates made  by  management,  as  well  as
evaluating the overall  financial  statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In  our  opinion, these financial statements present fairly,  in  all  material
respects, the financial position of the Company as at July 31,  2007  and  2006
and the results of operations and  cash  flows  and  changes  in  stockholders'
equity for the years  then  ended  and the period from May 26, 2004 (Inception)
to July 31, 2007 in conformity with accounting  principles  generally  accepted
in the United States of America.

The  accompanying  financial  statements have been prepared  assuming  that the
Company will continue as a going  concern.   As  discussed  in  Note  1  to the
financial  statements, to  date the Company has reported losses since inception
from operations and requires additional  funds to meet its obligations and fund
the costs of its operations.  These factors raise  substantial  doubt about the
Company's  ability to continue as a going concern. Management's plans  in  this
regard are described  in  Note  1.  The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.



                                                                         "DMCL"

                                          DALE MATHESON CARR-HILTON LABONTE LLP
                                                          CHARTERED ACCOUNTANTS

Vancouver, Canada
October 18, 2007














<PAGE>
AAA ENERGY INC.
(An Exploration Stage Company)
BALANCE SHEETS

<TABLE>
<CAPTION>

<S>                                              <C>               <C>
                                                     July 31,          July 31,
                                                       2007              2006

                                        ASSETS
Current
 Cash                                               $   114,425     $   60,910

Total Assets                                        $   114,425     $   60,910


                                      LIABILITIES
Current
 Accounts payable and accrued liabilities           $   46,333      $   28,027

Total Current Liabilities                               46,333          28,027
Convertible Note (Note 4)                               58,063               -

Total Liabilities                                      104,396          28,027


COMMITMENT  (Note 8)

                                 STOCKHOLDERS' EQUITY

Common Stock (Note 5)
 Authorized:
 100,000,000 common shares $0.001 par value
 Issued:
 34,272,000 common shares
 (July 31, 2006 - 34,272,000 shares)                    16,772          16,772
Additional Paid-in Capital                             252,035          77,728
Deficit accumulated during the exploration stage     (258,778)        (61,617)

Total Stockholders' Equity                              10,029          32,883

Total Liabilities and Stockholders' Equity          $   114,425      $  60,910

</TABLE>








   The accompanying notes are an integral part of these financial statements



<PAGE>
AAA ENERGY INC.
(An Exploration Stage Company)
STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                      Cumalative From
<S>                            <C>          <C>    <C>From May 26, 2004
                                  Year ended          (Inception) to July
                                    July 31,          31, 2007
                               2007         2006


Revenue                  $        -   $        -    $        -

Expenses
 Accounting and audit fees    9,136       14,999        37,011
 Bank charges                   236          111           574
 Consulting fees             46,383       12,500        59,383
 Filing and transfer agent
 fees                         1,749        3,307         7,498
 Interest expense (Note 4)   47,370            -        47,370
 Investor relation           19,350            -        19,350
 Legal fees                  10,000        5,000        17,030
 Mineral property costs       5,000            -        12,500
 Office expenses              8,136          125         8,261
 Travel and promotion        49,801            -        49,801

Net loss                 $(197,161)    $(36,042)    $(158,778)

Basic and diluted loss
per share                $   (0.01)    $  (0.00)

Weighted average number
of shares outstanding    34,272,000   33,121,219


</TABLE>















The  accompanying notes are an integral part of these financial statements



<PAGE>
AAA ENERGY INC.
(An Exploration Stage Company)
STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>


                                                   Cumulative From
                                                     May 26, 2004
                                  Year ended       (Inception) to
                                   July 31,         July 31, 2007
                            2007            2006
<S>  <C>                    <C>             <C>    <C>


Cash Flows From Operating
Activities

 Net loss             $ (197,161)    $ (258,778)  $(258,778)
 Non cash items:
   Interest expense        47,370              -      47,370
   Mineral property
   costs                        -              -         500

 Change in non-cash working capital item:
   Increase (decrease)
   in accounts
   payable and
   accrued
   iabilities              18,306         21,449      46,333

Net cash used
in operations           (131,485)       (14,593)   (165,575)

Cash Flows From Financing Activities

 Capital stock
 issued for cash                -         60,000      94,000
 Convertible Note         185,000              -     185,000

Net cash from
financing activities      185,000         60,000     279,000

Increase in cash           53,515         45,407     114,425

Cash, beginning            60,910         15,503           -

Cash, ending             $114,425        $60,910  $  114,425

Supplemental Cash Flow Disclosures:
    Cash paid for:
       Interest                 -              -           -
       Income taxes             -              -           -
    Non cash item:
       Shares issued
       for acquisition
       of mineral
       property                 -              -         500

</TABLE>





<PAGE>


AAA ENERGY INC.
(An Exploration Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
May 26, 2004 (Inception) to July 31, 2007
<TABLE>
<CAPTION>

<S>                        <C>        <C>       <C>        <C>              <C>


                                                              Deficit
                                            Additional    Accumulated
		         Common Shares         Paid-in    Exploration
                      Number 	Par Value      capital          Stage	  Total
Balance May 26, 2004
(Inception)                -  $         -   $        -    $         -     $   -
Capital stock issued
for cash
 - June, 2004 at
   $0.001         18,000,000        3,000            -              -     3,000
 - June, 2004 at
   $0.01          10,800,000       10,800        7,200              -    18,000
 - July, 2004 at
   $0.05           1,200,000        1,200        8,800              -    10,000
Capital stock
issued for
mineral property   3,000,000          500            -              -       500
Net loss                   -            -            -        (4,064)   (4,064)
Balance, July
31, 2004          33,000,000       15,500       16,000        (4,064)    27,436

Capital stock issued for cash
 - August, 2004 at
   $0.25              72,000           72        2,928              -     3,000
Net loss                   -            -            -       (21,511)  (21,511)
Balance, July
31, 2005          33,072,000       15,572       18,928       (25,575)     8,925
Capital stock issued for cash
 - July, 2006 at
   $0.30           1,200,000        1,200       58,800              -    60,000
Net loss                   -            -            -       (36,042)  (36,042)
Balance, July
31, 2006          34,272,000       16,772       77,728       (61,617)    32,883
Beneficial
conversion
feature on
convertible
debt                       -            -      174,307              -   174,307
Net loss                   -            -            -      (197,161) (197,161)
Balance, July
31, 2007          34,272,000   $   16,772   $  252,035    $ (258,778)  $ 10,029

</TABLE>




   The accompanying notes are an integral part of these financial statements






<PAGE>
Note 1 Basis of presentation


AAA  Energy  Inc.  (the  "Company") wasincorporated under  the  law of the
State of Nevada on  May 26, 2004.  The Company  is  an  Exploration  Stage
Company as defined by Statement of Financial  Accounting Standard ("SFAS")
No. 7.  Subsequent to the year end, the  Company  has  acquired a  mineral
property located in the Province of British Columbia, Canada,  and has not
yet  determined  whether  this  property   contains  reserves   that   are
economically recoverable.  The recoverability of amounts from the property
will be dependent upon the discovery of economically recoverable reserves,
confirmation of the Company's  interest  in  the  underlying property, the
ability  of  the  Company  to obtain necessary financing  to  satisfy  the
expenditure requirements under  the property agreement and to complete the
development of the property, and  upon  future  profitable  production  or
proceeds for the sale thereof.

These  financial  statements  have  been prepared on a going concern basis
which assumes the Company will be able to realize its assets and discharge
its  liabilities in the normal course  of  business  for  the  foreseeable
future.   The  Company has incurred losses since inception resulting in an
accumulated deficit of $258,778 as at July 31, 2007 and further losses are
anticipated in the  development  of its business raising substantial doubt
about the Company's ability to continue  as  a going concern.  The ability
to continue as a going concern is dependent upon  the  Company  generating
profitable  operations  in  the  future  and/or  to  obtain  the necessary
financing  to meet its obligations and repay its liabilities arising  from
normal business  operations  when  they  come  due.  Management intends to
finance operating costs over the next twelve months with  existing cash on
hand and loans from directors and or private placement of common stock.

Note 2 Summary of Significant Accounting Policies


Basis of Presentation

The financial statements of the Company have been prepared  in  accordance
with  generally  accepted  accounting  principles in the United States  of
America and are expressed in US dollars.  The Company's fiscal year end is
July 31.


Mineral Property Costs

Mineral  property  exploration  and  development  costs  are  expensed  as
incurred until such time as economic reserves  are quantified. The Company
has  considered  the  guidance  under EITF 04-2 and  has  determined  that
capitalization of mineral property  acquisition  costs is inappropriate at
the   current   stage  of  the  Company's  mineral  property   exploration
activities.  To date,  the  Company's  mineral interests consist mainly of
exploration stage properties. Furthermore,  there is uncertainty as to the
Company's ability to fund the exploration work  necessary  to determine if
the properties have recoverable reserves or any future economic  benefits.
As  a result, acquisition costs to date are considered to be impaired  and
accordingly, have been written off as mineral property expenditures.


Use of Estimates and Assumptions

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






<PAGE>
Note 2 Summary of Significant Accounting Policies - (continued)


Foreign Currency Translation

The  financial  statements  are  presented  in  United  States dollars. In
accordance  with  SFAS  No.52,  "Foreign  Currency  Translation,"  foreign
denominated  monetary  assets  and  liabilities  are translated into their
United States  dollar  equivalents  using  foreign  exchange  rates  which
prevailed  at the balance sheet date.  Revenue and expenses are translated
at average rates  of  exchange during the year.  Gains or losses resulting
from foreign currency transaction are included in results of operations.

Financial Instruments

The  carrying  value  of  cash,  accounts  payable and accrued liabilities
approximates  their  fair value because of the  short  maturity  of  these
instruments. The Company's  operations  are in Canada and virtually all of
its  assets and liabilities are giving rise  to  significant  exposure  to
market risks from changes in foreign currency rates. The financial risk is
the risk  to  the  Company's  operations  that  arise from fluctuations in
foreign  exchange  rates  and  the degree of volatility  of  these  rates.
Currently, the Company does not  use  derivative instruments to reduce its
exposure to foreign currency risk.

Environmental Costs

Environmental expenditures that relate  to  current operations are charged
to operations or capitalized as appropriate.  Expenditures  that relate to
an  existing  condition  caused  by  past  operations,  and  which do  not
contribute  to  current  or  future  revenue  generation,  are charged  to
operations. Liabilities are recorded when environmental assessments and/or
remedial  efforts are probable, and the cost can be reasonably  estimated.
Generally,  the  timing  of  these  accruals coincides with the earlier of
completion of a feasibility study or  the  Company's commitments to a plan
of action based on the then known facts.

Income Taxes

The Company has adopted SFAS No. 109 as of its inception. Pursuant to SFAS
No.  109 the Company is required to compute tax  asset  benefits  for  net
operating  losses  carried  forward.  Potential  benefit  of net operating
losses have not been recognized in these financial statements  because the
Company  cannot be assured it is more likely than not it will utilize  the
net operating  losses  carried  forward in future years, and is reduced to
Nil by a valuation allowance.

Basic and Diluted Net Loss Per Share

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








<PAGE>

Note 2 - Summary of Significant Accounting Policies - (continued)

Comprehensive Loss

SFAS No. 130, "Reporting Comprehensive Income," establishes standards  for
the reporting and display of comprehensive loss and its components in  the
financial statements.  As at July 31, 2007  and  2006, the  Company has no
items that represent other  comprehensive  loss  and, therefore,  has  not
included a schedule of comprehensive loss in the financial statements.

Recent Accounting Pronouncements

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial  Assets  and  Financial  Liabilities."  This  statement  permits
entities  to  choose  to  measure  many  financial  assets  and  financial
liabilities at fair value.  Unrealized gains and losses on items for which
the fair value option has been elected are reported in earnings.  SFAS No.
159 is effective for fiscal years beginning after November 15, 2007.  The
Company is currently assessing the impact of SFAS No. 159 on its financial
position and results of operations

Note 3 - Mineral Properties




Pursuant to a mineral property purchase agreement dated June 23, 2004, the
Company acquired a 100% undivided right,  title  and  interest  in  the BA
claims  represented by five mineral claims, located in the Lillooet Mining
Division of British Columbia,  Canada  by  issuance  of  3,000,000  common
shares for cost of $500.  This cost has been  written off   to  operations
in  the fiscal year ended  July  31, 2004.  During the year ended July 31,
2005 the  Company incurred $7,000 in resource property  expenditures  that
are expensed in the statement of operations.  During  the  year ended July
31, 2006 the Company did  not  incur the required property expenditures
and  consequently  the claims lapsed.






<PAGE>
Note 4 - Convertible Note



On January 11, 2007, the Company entered into an agreement with third party
(the "Lender"),  whereby  the  Lender  would  advance  the  Company  up  to
$1,000,000 (the "Note"), from time to time. All such amounts advanced under
the Note will comprise the principal amount which bears interest at 10% per
annum  and    matures  on  January 11, 2009.   The  principal  amount  will
be subject to conversion terms,  whereby  at  any time from the date of the
Note until the date that the Company repays the  entire amount of principal
to the Lender, the lender at its sole option , may convert a  portion,   or
all,  of the principal  amount   outstanding  into  units  in  the  capital
stock of the Company.  Each $0.40 of principal outstanding at the  time  of
conversion may be  converted  into one  unit consisting of one common share
and one  non-transferable share purchase  warrant  exercisable for a period
of up to two years  from  the  date  of  conversion.  Each   warrant  shall
entitle  the  Lender  to purchase an additional common share of the Company
at  $0.60 during the term of the warrants.

At July 31, 2007, the  Company  owed  $192,619  (2006: nil)  on  this  Note
comprising  of  principal  of $185,000  (2006: nil) and accrued interest of
$7,619.

In  accordance  with  EITF  00-27 "Application of Issue No. 98-5 to Certain
Convertible Instruments", the  Company recognized the value of the embedded
beneficial conversion feature of  $174,307.  This  value  was  recorded  as
additional  paid-in  capital  and  is being deferred and amortized over the
term of the Note. During the  year ended July 31, 2007, $39,751 (2006: nil)
was expensed as non-cash interest pertaining to  this  Note.  The  carrying
value of the Note will be accreted  to  the face value over the term of the
note.

The Company has allocated the proceeds of issuance  between the convertible
debt and the detachable warrants, to be issued upon conversion of the Note,
based on their relative fair values. Accordingly, upon conversion  of  the
Note,  the Company will recognize the fair value of the detachable warrants
of $38,521  as  common stock purchase warrants.


Note 5 - Common Stock


During  the  year  ended  July 31, 2006 the Company's directors approved a
stock split of the Company's  authorized and issued common stock such that
every one of the Company's common  stock  be  forward  split  for six post
split  common  shares  of  the  Company  and  to  decrease  the post split
authorized  common  share  capital  of  the Company to 100,000,000  common
shares with a par value of $0.001. Prior  to the stock split the Company's
authorized common share capital was 75,000,000  shares with a par value of
$0.001.  These  financial  statements  presented  as  if the forward stock
split took place at the beginning of all periods presented.




<PAGE>
Note 5 - Common Stock - (continued)


During the year ended July 31, 2006, the Company issued 1,200,000 units at
a price of $0.30 per unit for the aggregate  purchase  price  of  $60,000.
Each  unit  consists of one share of common stock and one non-transferable
share purchase  warrant  entitling  the  holder  to purchase an additional
share of common stock for $0.60 for a period of two  years  until July 12,
2008.

At  July 31, 2007 there are 1,200,000 outstanding share purchase  warrants
and no outstanding stock options.


Note 6 - Income Taxes


The Company follows the liability method of accounting  for income  taxes.
Under  this  method,  deferred  income  tax  assets  and  liabilities  are
recognized  for the estimated tax consequences attributable to differences
between the  financial  statement  carrying  values  and  their respective
income tax basis (temporary differences).  The effect on  deferred  income
tax assets and liabilities of a  change  in  tax  rates  is  recognized in
income in the period that incudes the enactment date.


                                   July 31,
                                  ----------
                           2007               2006
                        -----------        -----------

 Deferred tax assets      $90,580            $20,950
 Valuation allowance      (90,580)           (20,950)
                        -----------        -----------
 Net deferred tax assets     $-                 $-
                        -----------        -----------


The benefit of a potential reduction in future income  taxes  has not been
recorded  as  an  asset at July 31, 2007  as  it  is  reduced  to nil by a
valuation allowance, due to  uncertanty  of  the  application  of  losses.
A reconciliation between the statutory federal  income  tax  rate  and the
effective income rate of income tax expense for the period ended July  31,
2007 and 2006 is as follows:

<CAPTION>
                                             2007           2006

Statutory federal income tax rate            35.0%          34.0%
Valuation allowance                          (35.0%)        (34.0%)
Effective income tax rate                    0.0%           0.0%



Note 7 - Related Pary Transactions

At July 31, 2007, included in accounts payable is cash advances the Company
received from a director of the Company totaling $6,632 (2006 - $Nil).  The
amount is unsecured, non-interest bearing and has  no  specified  terms  of
repayment.  During hte year ended  July 31, 2007,  $4,500 (2006 - $Nil) was
paid in consulting fees to the president of the Company.

Related part transactions are measured at the exhcange amount and  occurred
in the ordinary course of business.



<PAGE>
Note 8 - Subsequent Event




On  August  4,  2007, the Company was granted an option  to  acquire  100%
interest, subject  to  a  2%  net  smelter  royalty,  in one mineral claim
located  in  the  Lillooet  Mining  Division  in the Province  of  British
Columbia.  Under the terms of the option agreement,  the Company must make
cash payment of CDN$255,000 and issue 500,000 shares of  common  stock  in
various  stages   as   follows:   CDN$5,000  (paid) upon  signing  of  the
agreement, CDN$30,000  and issuance of 100,000 shares of common stock   by
the  first anniversary of this agreement; CDN$40,000 and 100,000 shares by
the second anniversary of  this  agreement;  CDN$50,000  and  issuance  of
100,000 shares by the third anniversary  of  this  agreement;  CDN $60,000
and  issuance  of  100,000  shares  by  the  fourth  anniversary  of  this
agreement; and CDN$70,000 and issuance  of 100,000  shares  by  the  fifth
anniversary of  this agreement. The   Company   must   also   pay  2%  Net
Smelter Returns Royalty  (NSR) upon commencement of commercial production.
The Company  may  purchase  half  of  the 2% NSR for a one-time payment of
$1,000,000.





<PAGE>
ITEM  8:  CHANGES  IN  AND DISAGREEMENTS WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
FINANCIAL DISCLOSURE

None.

ITEM 8A:  CONTROLS AND PROCEDURES


EVALUTION OF DISCLOSURE CONTROLS

We evaluated the effectiveness of our disclosure controls and procedures as of
the end of the 2007 fiscal year.  This evaluation was conducted with the
participation of our chief executive officer and our principal accounting
officer.

Disclosure controls are controls and other procedures that are designed to
ensure that information that we are required to disclose in the reports we file
pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported.

LIMITATIONS ON THE EFFECTIVE OF CONTROLS

Our management does not expect that our disclosure controls or our internal
controls over financial reporting will prevent all error and fraud.  A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
Further, any control system reflects limitations on resources, and the benefits
of a control system must be considered relative to its costs. These limitations
also include the realities that judgments in decision-making can be faulty and
that breakdowns can occur because of simple error or mistake.  Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people or by management override of a control.  A
design of a control system is also based upon certain assumptions about
potential future conditions; over time, controls may become inadequate because
of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate.  Because of the inherent limitations in a cost-
effective control system, misstatements due to error or fraud may occur and may
not be detected.

CONCLUSIONS

Based upon their evaluation of our controls, the chief executive officer and
principal accounting officer have concluded that, subject to the limitations
noted above, the disclosure controls are effective providing reasonable
assurance that material information relating to us is made known to management
on a timely basis during the period when our reports are being prepared.  There
were no changes in our internal controls that occurred during the quarter
covered by this report that have materially affected, or are reasonably likely
to materially affect our internal controls.

PART III

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS


Name             Age         Position with Registrant     Served as a Director
                                                          or Officer Since

Dr. Earl Abbott  63          President, C.E.O.,           May 26, 2004
                             promoter and director





<PAGE>
David Lorge      49          Secretary, Treasurer,        September 25, 2007
                             principal accounting
                             officer, principal
                             financial officer and
                             director

The following describes the  business experience of the Company's directors and
executive officers, including other directorships held in reporting companies:

DR. EARL ABBOTT has acted as our president, chief executive officer, promoter
and as a director since our incorporation on May 26, 2004.  Dr. Abbott received
his Ph.D. in geology from Rice University in 1972.  He is a member in good
standing of the Society of Mining Engineers of the American Institute of
Mining, Metallurgical and Petroleum Engineers and is a past president of the
Nevada chapter of the American Institute of Professional Geologists, the
Geological Society of Nevada and the Nevada Petroleum Society.  For the past
32 years, Dr. Abbott has been self-employed as a consulting geologist.  During
the past five years, he has provided his geological consulting services to
Tornado Gold International Corp., Magnus International Resources, Gateway Gold
Corporation, MagmaChem LLC, Atna Resources Ltd., Mill City International
Corporation, Mammoth Gold Ltd., Graymont Western US Inc., Big Bar Gold
Corporation, King Midas Resources (US) Inc., Nucotec Inc., L.E.H. Ventures
Ltd., Metallica Resources Inc., Lightning Dock Geothermal, Duncan Park Holdings
Ltd. and Onstream Resources Inc. He has also acted as president and a director
of Big Bar Gold Corporation, an Alberta and British Columbia reporting company
involved in mineral exploration in China and Mexico, since November 2003. Since
April 2004, he has also acted as president and a director of Tornado Gold
International Corp., a United States reporting company that is involved in
mineral property exploration.  Dr. Abbott is responsible for managing the day
to day affairs of the company, reviewing all geological data and evaluating and
acquiring property holdings.

Dr. Abbott devotes 30% of his business time to our affairs.

MR. DAVID LORGE has acted as our secretary, treasurer, principal accounting
officer and as a director since September 25, 2007.  In 1979, he graduated from
Missouri School of Mines, University of Missouri with a Bachelor of Science
degree in GeologicalEngineering. From 1979 to 1985, Mr. Lorge served as a staff
geologist in various capacities for Peter Kiewit Sons' Company.  Over the last
22 years, he has acted as an independent geological consultant and have
provided geological project management and consulting services to mineral
exploration and production companies.

Mr. LaPrairie devotes 15% of his business time to our affairs.

All directors are elected annually by our shareholders and hold office until
the next Annual General Meeting. Each officer holds office at the pleasure of
the board of directors.  No director or officer has any family relationship
with any other director or officer.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires our executive officers and
directors, and persons who beneficially own more than 10% of our equity
securities, to file reports of ownership and changes in ownership with the
Securities and Exchange Commission. Officers, directors and greater than 10%
shareholders are required by SEC regulation to furnish us with copies of all
Section 16(a) forms they file. Based on our review of the copies of such forms
we received, we believe that during the fiscal year ended Julu 31, 2007 all
such filing requirements applicable to our officers and directors were complied
with exception that reports were filed late by the following persons:





<PAGE>
                             Number     TransactionsKnown Failures
                             Of  late         Not Timely To File a
Name and principal position  Reports    Reported   Required Form
                             -----------------------------------------------
Dr. Earl Abbott              0          0          0
(President and director)
David Lorge                  0          0          0
(Secretary, treasurer
and director)
Dennis LaPrairie             0          0          0
(Former Secretary, treasurer
and director

ITEM 10:  EXECUTIVE COMPENSATION

The table below summarizes all compensation awarded to, earned by, or paid to
our executive officers by any person for all services rendered in all capacities
to us for the fiscal year ended July 31, 2006.

<TABLE>
<CAPTION>
           Annual Compensation            Long Term Compensation
<S><C>    <C>   <C>    <C>   <C>         <C>      <C>    <C>   <C>   <C>
                             Other        Restricted               All
                             Annual       Stock   Options LTIP     Other
Name       Year Salary Bonus Compensation Awarded /SARs#  Payouts$ Compensation
(1) &
Title

Bruno
Fruzcalzo, 2007 $0      0     4,500       0       0       0         0
President,
Treasurer,
Director

Earl Abbot,2007 $0      0     0           0       0       0         0
Director

Dennis
LaPrairie, 2007 $0      0     0           0       0       0         0
Former
Director




</TABLE>

ITEM 11:  SECURITY  OWNERSHIP  OF  CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth information regarding the beneficial ownership
of our shares of common stock at October 29, 2007 by (i) each person known by
us to be the beneficial owner of more than  5%  of  our  outstanding  shares of
common stock, (ii) each of our directors, (iii) our executive officers, and
(iv) by all of our directors and executive officers as a group.  Each person
named  in  the table,  has sole voting and investment power with respect to all
shares shown as beneficially  owned  by such person and can be contacted at our
executive office address.




<PAGE>

TITLE OF   NAME AND ADDRESS             BENEFICIAL       PERCENT
CLASS      OF BENEFICIAL OWNER          OWNERSHIP        OF CLASS

COMMON     Dr. Earl Abbott              9,000,000        26.26%
STOCK      President, Chief
           Executive Officer
           and Director
           3841 Amador Way
           Reno, Nevada 89502

COMMON     David Lorge                  Nil              0.00%
STOCK      Secretary, Treasurer
           Principal Accounting Officer
           and Director
           285 Sandia Drive
           Fernley, Nevada 89408

COMMON     Dennis LaPrairie             9,000,000        26.26%
STOCK      Secretary, Treasurer
           Principal Accounting Officer
           and Director
           1855 Hunter Lake Drive
           Reno, Nevada 89509

COMMON     All Officers and Directors   9,000,000        26.26%
STOCK      as a Group that consists of
           two people

The percent of class is based on 34,272,000 shares of common stock issued and
outstanding as of the date of this annual report.

ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None of our directors or officers, nor any proposed nominee for election as a
director, nor any person who beneficially owns, directly or indirectly, shares
carrying more than 10% of the voting rights attached to all of our outstanding
shares, nor any promoter, nor any relative or spouse of any of the foregoing
persons has any material interest, direct or indirect, in any transaction since
our incorporation or in any presently proposed transaction which, in either
case, has or will materially affect us.

Our management is involved in other business activities and may, in the future
become involved in other business opportunities. If a specific business
opportunity becomes available, such persons may face a conflict in selecting
between our business and their other business interests.  In the event that a
conflict of interest arises at a meeting of our directors, a director who has
such a conflict will disclose his interest in a proposed transaction and will
abstain from voting for or against the approval of such transaction.

ITEM 13:  EXHIBITS AND REPORTS




<PAGE>
Exhibits

3.1*       Articles of Incorporation
3.2*       Bylaws
5.1*       Legal opinion of Warren J. Soloski, with consent to use
31.1       Certification pursuant to Rule 13a-14(a) under the
           Securities Exchange Act of 1934
31.2       Certification pursuant to Rule 13a-14(a) under the
           Securities Exchange Act of 1934
32.1       Certification pursuant to 18 U.S.C. Section 1350, as
           adopted pursuant to Section 906 of the Sarbanes-Oxley Act
           of 2002
32.2       Certification pursuant to 18 U.S.C. Section 1350, as
           adopted pursuant to Section 906 of the Sarbanes-Oxley Act
           of 2002
99.1**     BA Property Location Map

 *    filed as an exhibit to our registration statement on Form SB-2
      dated October 20, 2004

 **   filed as an exhibit to our registration statement on Form SB-2
      dated December 10, 2004

Reports on Form 8-K

During and subsequent to the last quarter of fiscal 2007, we filed the
following current reports on Form 8-K:

   1. On May 15, 2007, we announced that Heather Ho was appointed a director
      and corporate secretary of the Company in place of Albert Au and that
      Dennis Laprairie had resigned as a director of the Company

   2. On September 17, 2007, we announced that Dr. Earl Abbott was re-appointed
      President and CEO of the company in place of Bruno Fruscalzo, who has
      resigned his positions with the Company.

   3. On September 25, 2007, we announced that David Lorge was appointed a
      director of the Company in place of Heather Ho.

ITEM 14:  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our principal accountants, Dale Matheson Carr-Hilton Labonte, Chartered
Accountants, rendered invoices to us during the fiscal periods indicated for
the following fees and services:

                      Fiscal year ended     Fiscal year ended
                      July 31, 2006         July 31, 2007

Audit fees            $5,000                $15,500
Audit-related fees    Nil                   Nil
Tax fees              Nil                   $1,200
All other fees        Nil                   Nil

Audit fees consist of fees related to professional services rendered in
connection with the audit of our annual financial statements, the review of the
financial statements included in each of our quarterly reports on Form 10-QSB.

Our policy is to pre-approve all audit and permissible non-audit services
performed by the independent accountants.  These services may include audit
services, audit-




<PAGE>
related services, tax services and other services.  Under our audit committee's
policy, pre-approval is generally provided for particular services or
categories of services, including planned services, project based services and
routine consultations.  In addition, we may also pre-approve particular
services on a case-by-case basis.  We approved all services that our
independent accountants provided to us in the past two fiscal years.

SIGNATURES

Pursuant to the requirements of Section 13 and 15 (d) of the Securities
Exchange Act of 1934, the Registrant  has  duly  caused  this  report to be
signed on its behalf by the undersigned, thereunto duly authorized.

AAA Energy, Inc.


By     /s/ Earl Abbott
       Dr. Earl Abbott
       President, CEO & Director
       Date: October 29, 2007

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



By     /s/ Earl Abbott____________
       Earl Abbott
       President, CEO & Director
       Date: October 29, 2007


By     /s/ David Lorge___________
       David Lorge
       Secretary and Director
       Date: October 29, 2007













5