----

----

| Nevada                                                      |   91-1980526                                       |
|------------------------------------------------------------------|--------------------------------------------------------------|
| (Jurisdiction                  of Incorporation)                 |                    (I.R.S. Employer Identification No.) |
|                                                                  |                                                         |
| 604-700                  West Pender Street, Vancouver, BC  |  V6C                  1G8                               |
| (Address                  of principal executive offices)   |                    (Zip Code)                           |

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----

| TURNER                VALLEY OIL & GAS, INC.                                                                                                                                    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Development Stage Company)                                                                                                                                        |   |
| Consolidated                Balance Sheets                                                                                                                                          |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                              |   |
|                                                                                                                                                                                |   | September                30, |   |   | December                31, |   |
|                                                                                                                                                                                |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                |   | (Unaudited) |   |   |   |   |
| CURRENT                ASSETS                                                                                                                                                       |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |
| Cash                                                                                                                                                                                |   | $ | 14,502 |   |   | $ | - |   |
| Accounts                receivable                                                                                                                                                  |   |   | 7,518 |   |   |   | 8,910 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total                Current Assets                                                                                                                                                 |   |   | 22,020 |   |   |   | 8,910 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| OIL                AND GAS PROPERTIES USING  FULL COST ACCOUNTING                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Properties                subject to amortization                                                                                                                                   |   |   | 20,675 |   |   |   | 28,177 |   |
| Unproved                properties                                                                                                                                                  |   |   | 525,544 |   |   |   | 925,544 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Net                Oil and Gas Properties                                                                                                                                           |   |   | 546,219 |   |   |   | 953,721 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| OTHER                ASSETS                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Investments                - Marketable Securities available for sale                                                                                                               |   |   | 149,799 |   |   |   | 604,349 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total                Other Assets                                                                                                                                                   |   |   | 149,799 |   |   |   | 604,349 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL                ASSETS                                                                                                                                                         |   | $ | 718,038 |   |   | $ | 1,566,980 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES                AND                STOCKHOLDERS' EQUITY                                                                                                                  |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Bank                Overdraft                                                                                                                                                       |   | $ | - |   |   |   | 3,397 |   |
| Accounts                payable                                                                                                                                                     |   |   | 12,387 |   |   | $ | 400,410 |   |
| Notes                payable, related party                                                                                                                                         |   |   | 23,658 |   |   |   | 23,658 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total                Current Liabilities                                                                                                                                            |   |   | 36,045 |   |   |   | 427,465 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total                Liabilities                                                                                                                                                    |   |   | 36,045 |   |   |   | 427,465 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Other                Commitments or Contingencies                                                                                                                                   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                EQUITY                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Common                stock, 100,000,000 shares authorized of $0.001 par value, 60,035,984                and                58,535,984 shares issued and outstanding, respectively |   |   | 60,037 |   |   |   | 58,537 |   |
| Capital                in excess of par value                                                                                                                                       |   |   | 4,710,673 |   |   |   | 4,697,173 |   |
| Accumulated                other comprehensive income                                                                                                                               |   |   | 87,973 |   |   |   | 495,283 |   |
| Deficit                accumulated during the development stage                                                                                                                     |   |   | (4,176,690 | ) |   |   | (4,111,478 | ) |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Total                Stockholders' Equity                                                                                                                                           |   |   | 681,993 |   |   |   | 1,139,515 |   |
|                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                           |   | $ | 718,038 |   |   | $ | 1,566,980 |   |

----

| TURNER                VALLEY OIL & GAS, INC.                                     |   |
|--------------------------------------------------------------------------------------|--------|
| (A                Development Stage Company)                                         |   |
| Consolidated                Statements of Operations and Comprehensive Income/(Loss) |   |
| (Unaudited)                                                                          |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   | For                the Three Months Ended September 30, |   |   | For                the 9 months Ended September 30, |   |   | From                Inception on April 21, 1999 Through September 30, |   |
|                                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |
| REVENUE                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Royalties                received                                                    |   | $ | 1,121 |   |   | $ | 784 |   |   | $ | 1,522 |   |   | $ | 9,612 |   |   | $ | 22,396 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of production                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,753 |   |
| Depletion                                                                            |   |   | 2,500 |   |   |   | 2,500 |   |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 28,267 |   |
| General                and administrative                                            |   |   | 57,212 |   |   |   | 230,335 |   |   |   | 157,031 |   |   |   | 565,739 |   |   |   | 4,852,211 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Expenses                                                        |   |   | 59,712 |   |   |   | 232,835 |   |   |   | 164,531 |   |   |   | 573,239 |   |   |   | 4,932,231 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                OPERATING LOSS                                                    |   |   | (58,591 | ) |   |   | (232,051 | ) |   |   | (163,009 | ) |   |   | (563,627 | ) |   |   | (4,909,835 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                INCOME (EXPENSE)                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of investments                                           |   |   | 39,669 |   |   |   | 336,702 |   |   |   | 97,799 |   |   |   | 396,863 |   |   |   | 732,683 |   |
| Rent                Received                                                         |   |   | 3,754 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,754 |   |
| Interest                expense                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,292 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Other Income (Expense)                                          |   |   | 43,423 |   |   |   | 336,702 |   |   |   | 97,799 |   |   |   | 396,863 |   |   |   | 733,145 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                PROFIT/(LOSS) BEFORE INCOME TAX                                   |   | $ | (15,168 | ) |   | $ | 104,651 |   |   | $ | (65,210 | ) |   | $ | (166,764 | ) |   | $ | (4,176,690 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax                                                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                PROFIT/(LOSS)                                                     |   | $ | (15,168 | ) |   | $ | 104,651 |   |   | $ | (65,210 | ) |   | $ | (166,764 | ) |   | $ | (4,176,690 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                LOSS PER COMMON SHARE                                           |   | $ | (0.00 | ) |   | $ | 0.00 |   |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                  |   |   | 58,535,984 |   |   |   | 55,078,292 |   |   |   | 58,535,984 |   |   |   | 55,078,292 |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME (LOSS)                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                LOSS                                                              |   | $ | (15,168 | ) |   | $ | 104,651 |   |   | $ | (65,210 | ) |   | $ | (166,764 | ) |   | $ | (4,176,690 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME (LOSS)                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                Gain on Marketable Securities                              |   |   | 21,347 |   |   |   |   |   |   |   | (407,310 | ) |   |   | - |   |   |   | 92,058 |   |
| Foreign                Currency Translation                                          |   |   | - |   |   |   | - |   |   |   | 725 |   |   |   | 725 |   |   |   | (4,085 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME (LOSS)                                           |   | $ | 6,179 |   |   | $ | 104,651 |   |   | $ | (471,795 | ) |   | $ | (166,039 | ) |   | $ | (4,088,717 | ) |

----

| Turner                Valley Oil & Gas Corporation                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| (A                Development Stage Company)                                                                            |   |
| Statement                of Stockholders' Equity and Comprehensive Income                                               |   |
| For                the Nine Months Ended                September 30, 2007Unaudited                                     |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   | Shares |   |   | Amount |   |   | Additional                Paid-in-Capital |   |   | Comprehensive                Income/(Loss) |   |   | Retained                Earnings |   |   | Subscription                Receivable |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at inception April 21, 1999                                                                      |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for services during 1999                                                                   |   |   | 41,080 |   |   |   | 41 |   |   |   | 5,094 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for cash during 1999                                                                       |   |   | 16,000 |   |   |   | 16 |   |   |   | 99,984 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended    December 31,                1999                    |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |   |   |   | (96,935 | ) |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 1999                                                                             |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (96,935 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended    December 31,                2000                    |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   | (27,242 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2000                                                                             |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (124,177 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended    December 31,                2001                    |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |                   |   |   |   | (65,380 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2001                                                                             |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (189,557 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for debt reduction during 2002                                                             |   |   | 8,000 |   |   |   | 8 |   |   |   | 99,992 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for services during 2002                                                                   |   |   | 2,190,150 |   |   |   | 2,190 |   |   |   | 1,092,885 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended    December 31,                2002                    |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   | (1,240,008 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2002                                                                             |   |   | 2,255,230 |   |   |   | 2,255 |   |   |   | 1,297,955 |   |   |   | 0 |   |   |   | (1,429,565 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for services at $.02 per share                                                             |   |   | 1,500,000 |   |   |   | 1,500 |   |   |   | 298,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rounding                of shares from reverse split                                                                    |   |   | 2,000 |   |   |   | 2 |   |   |   | (2 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for accounts payable at $.05      Per                share   |   |   | 8,000,000 |   |   |   | 8,000 |   |   |   | 392,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for services at $.015 per share                                                            |   |   | 31,729,200 |   |   |   | 31,729 |   |   |   | 444,209 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for services at $.015 per share                                                            |   |   | 9,487,504 |   |   |   | 9,488 |   |   |   | 132,825 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration     at $.05                per share |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 98,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration     at $.05                per share |   |   | 650,000 |   |   |   | 650 |   |   |   | 31,850 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation                of Common Stock                                                                             |   |   | (16,691,520 | ) |   |   | (16,692 | ) |   |   | (220,459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for cash at $.05 per share                                                                 |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | 147,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for cash at $.30 per share                                                                 |   |   | 100,000 |   |   |   | 100 |   |   |   | 29,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for cash at $.35 per share                                                                 |   |   | 528,570 |   |   |   | 529 |   |   |   | 184,471 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                Currency Translation                                                                             |   |   |   |   |   |   |   |   |   |   |   | (1,718 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended     December 31,                2003              |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |                  |   |   |   | (1,137,760 | ) |   |   |                   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2003                                                                             |   |   | 42,560,984 |   |   |   | 42,561 |   |   |   | 2,836,249 |   |   |   | (1,718 | ) |   |   | (2,567,325 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration  at $.20 per                share                   |   |   | 932,500 |   |   |   | 933 |   |   |   | 185,567 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.08 per share                                             |   |   | 1,597,500 |   |   |   | 1,598 |   |   |   | 126,202 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.08 per share                                             |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 79,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.11 per share                                             |   |   | 85,000 |   |   |   | 85 |   |   |   | 9,265 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.20 per share                                             |   |   | 1,385,000 |   |   |   | 1,385 |   |   |   | 275,615 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued for Cash at $.05 per share                                                                 |   |   | 975,000 |   |   |   | 975 |   |   |   | 47,775 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                Recievable                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (48,750 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                Currency Translation                                                                             |   |   |   |   |   |   |   |   |   |   |   | (2,367 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended     December 31,                2004              |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | (784,001 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2004                                                                             |   |   | 48,535,984 |   |   |   | 48,537 |   |   |   | 3,559,673 |   |   |   | (4,085 | ) |   |   | (3,351,325 | ) |   |   | (48,750 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration  at $.13 per                share                   |   |   | 2,850,000 |   |   |   | 2,850 |   |   |   | 367,650 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                Currency Translation                                                                             |   |   |   |   |   |   |   |   |   |   |   | (725 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription                Recievable                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,750 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss for the period ended     December 31,                2005              |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   | (472,917 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2005                                                                             |   |   | 53,385,984 |   |   |   | 53,387 |   |   |   | 4,185,323 |   |   |   | (4,810 | ) |   |   | (3,824,242 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.13 per share                                             |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.08 per share                                             |   |   | 1,600,000 |   |   |   | 1,600 |   |   |   | 126400 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued pursuant to S-8 registration at $.08 per share                                             |   |   | 1,450,000 |   |   |   | 1,450 |   |   |   | 114,550 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                issued under Rule 144 at $0.13 per share                                                          |   |   | 100,000 |   |   |   | 100 |   |   |   | 12,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income for the year ended                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December                31, 2006                                                                                        |   |   |                  |   |   |   |                  |   |   |   |                   |   |   |   | 500,093 |   |   |   | (287,238 | ) |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                as at December 31, 2006                                                                          |   |   | 58,535,984 |   |   |   | 58,537 |   |   |   | 4,697,173 |   |   |   | 495,283 |   |   |   | (4,111,480 | ) |   |   | 0 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revaluation                of investment in Win                                                                         |   |   |   |   |   |   |   |   |   |   |   | (407,310 | ) |   |   |   |   |   |   |   |   |
| Issuance                of S-8 stock for services at $0.01                                                              |   |   | 1500000 |   |   |   | 1500 |   |   |   | 13500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income/(loss) for the quarter ended                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September                30, 2007                                                                                       |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   |                  |   |   |   | -65,210 |   |   |   |                  |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                as at September 30, 2007                                                                         |   |   | 60,035,984 |   |   |   | 60,037 |   |   |   | 4,710,673 |   |   |   | 87,973 |   |   |   | (4,176,690 | ) |   |   | 0 |   |

----

| TURNER                VALLEY OIL & GAS, INC.                                                                     |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| (A                Development Stage Company)                                                                         |   |
| Consolidated                Statements of Cash Flows                                                                 |   |
| (Unaudited)                                                                                                          |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   | For                the 9 months Ended September 30, |   |   | From                Inception on April 21, 1999Through September 30, |   |
|                                                                                                                 |   | 2007 |   |   | 2006 |   |   | 2007 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net                Income/(Loss)                                                                                     |   | $ | (65,210 | ) |   | $ | (166,764 | ) |   | $ | (4,176,690 | ) |
| Adjustments                to reconcile net loss to net cash  used in operating                activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depletion                                                                                                            |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 28,267 |   |
| Loss                on abandonment of property                                                                       |   |   | - |   |   |   | - |   |   |   | 25,481 |   |
| Gain                on sale of Investment                                                                            |   |   | (97,799 | ) |   |   | (336,701 | ) |   |   | (801,314 | ) |
| Common                stock issued for services rendered                                                             |   |   | 15,000 |   |   |   | 388,000 |   |   |   | 4,256,960 |   |
| Non-cash                Effect from Foreign Currency Translation                                                     |   |   | - |   |   |   | 725 |   |   |   | (4,080 | ) |
| Non-cash                effect of revaluing Marketable Securities                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes                in operating assets and liabilities:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                (Decrease) in bank Overdraft                                                                 |   |   |   |   |   |   | - |   |   |   | - |   |
| Increase                (Decrease) in accounts receivable                                                            |   |   | 1,394 |   |   |   | 1,294 |   |   |   | 722 |   |
| Increase                (Decrease) in accounts payable - related Party                                               |   |   |   |   |   |   | - |   |   |   | 23,659 |   |
| Increase                in accounts payable and accrued expenses                                                     |   |   | 11,977 |   |   |   | 108,489 |   |   |   | 313,166 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Cash Used in Operating Activities                                                                 |   |   | (127,138 | ) |   |   | 2,543 |   |   |   | (333,829 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from sale of investments                                                                     |   |   | 141,640 |   |   |   | 382,151 |   |   |   | 972,839 |   |
| Investing                in new Oil & Gas working interests                                                      |   |   | - |   |   |   | (461,490 | ) |   |   | (425,544 | ) |
| Expenditures                for oil and gas property development                                                     |   |   |   |   |   |   | - |   |   |   | (712,714 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Cash Used in Investing Activities                                                                 |   |   | 141,640 |   |   |   | (79,339 | ) |   |   | (165,419 | ) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from issuance of common stock                                                                |   |   |   |   |   |   | - |   |   |   | 465,000 |   |
| Receipt                of subscription receivable                                                                    |   |   | - |   |   |   | - |   |   |   | 48,750 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Cash Provided by Financing Activities                                                             |   |   | - |   |   |   | - |   |   |   | 513,750 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH                                                                       |   |   | 14,502 |   |   |   | (76,796 | ) |   |   | 14,502 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                      |   |   | - |   |   |   | 78,848 |   |   |   | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT END OF PERIOD                                                            |   | $ | 14,502 |   |   | $ | 2,052 |   |   | $ | 14,502 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL                CASH FLOW INFORMATION                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                PAID FOR:                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                                             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Income                taxes                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| NON-CASH                FINANCING ACTIVITIES                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Common                stock issued for services rendered                                                             |   | $ | 15,000 |   |   | $ | 260,000 |   |   | $ | 3,724,460 |   |
| Common                stock issued for retirement of payables                                                        |   | $ | - |   |   | $ | - |   |   | $ | 532,500 |   |
| Transfer                of working Interest for payment of Debt                                                      |   | $ | 400,000 |   |   |   |   |   |   | $ | 400,000 |   |

----

----

|   | 1) | In                the spacing unit for the Earning Well, a 1.500% interest in the petroleum                and natural gas below the base of the Mannville excluding natural                gas in                the Leduc formation, and a 3.00% interest in the natural gas in the                Leduc                formation before payout subject to payment of an Overriding Royalty                which                is convertible upon payout at the Royalty Owners option to 50% of                our                interest. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | A                1.200% interest in the rights below the base line of the Shunda formation                in Section 10,Township 38, Range 9W5M |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | A                0.966% interest in the rights below the base of the Shunda formation                in                sections 15 & 16,Township 38,Range 9W5M, down to the base of the                deepest formation penetrated. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

Exhibit      31.

Exhibit      32.

----

| /s/Kulwant                Sandher                                  |  | /s/Donald                Jackson Wells      |  | /s/Joseph                Kane      |
|--------------------------------------------------------------------|--|---------------------------------------------|--|------------------------------------|
| Kulwant                Sandher President                / CFO |  | Donald                Jackson Wellsdirector |  | Joseph                Kanedirector |

----