UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549








FORM
      10-QSB




QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d)
      OF THE
      SECURITIES EXCHANGE ACT OF 1934


For
      the
      quarterly period ended December 31, 2006




TREND
      MINING COMPANY


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




Delaware
            
            81-0304651(State
                or other jurisdiction of
              incorporation
                or organization)
            
            (I.R.S.
                Employer
              Identification
                No.)




5439
                South Prince Street
              Littleton
                Colorado 80120(Address
                of principal executive offices)





Issuer’s
      telephone number: (303) 798-7363





Not
                Applicable.(Former
                name, former address and former fiscal year, if changed since last
                report)








Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes o
      No x





The
      number of shares of common stock, par value $0.01 per share, outstanding as
      of
      January 31, 2007: 55,170,953 shares





Transitional
      Small Business Disclosure Format (Check one): Yes o No x








**PART
      I - FINANCIAL INFORMATION**





ITEM
                1.
            FINANCIAL
                STATEMENTSBalance
                Sheets
            2Statements
                of Operations
            3Statement
                of Stockholders’ Equity (Deficit)
            4Statements
                of Cash Flows
            5Notes
                to the Financial Statements
            7ITEM
                2.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
            15ITEM
                3.
            CONTROLS
                AND PROCEDURES
            17**PART
                II - OTHER INFORMATION**ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
            19ITEM
                4.
            SUBMISSION
                OF MATTERS TO A VOTE OF SECURITY HOLDERS
            19ITEM
                6.
            EXHIBITS
            19





i


**PART
      I - FINANCIAL INFORMATION**




**ITEM
      1.** **FINANCIAL
      STATEMENTS.**




**TREND
                MINING COMPANY**
              **(An
                Exploration Stage Company)**
              **BALANCE
                SHEETS**




December
                31,
            
            September
                30,2006
            
            2006**ASSETS**CURRENT
                ASSETSCash
            
            $
            200,835
            
            $
            390,680Accounts
                receivable
            
            
            43,269
            
            
            35,291Prepaid
                expenses
            
            
            5,000
            
            
            -Total
                Current Assets
            
            
            249,104
            
            
            425,971MINERAL
                PROPERTIES
            
            
            -
            
            
            -PROPERTY
                AND EQUIPMENT, net of depreciation
            
            
            10,309
            
            
            10,853OTHER
                ASSETSAvailable
                for sale securities
            
            
            151,937
            
            
            78,625Reclamation
                bonds
            
            
            -
            
            
            7,720TOTAL
                ASSETS
            
            $
            411,350
            
            $
            523,169**LIABILITIES
                AND STOCKHOLDERS’ DEFICIT**CURRENT
                LIABILITIESAccounts
                payable
            
            $
            87,402
            
            $
            65,174Accounts
                payable, related parties
            
            
            15,000
            
            
            15,000Accrued
                expenses
            
            
            8,000
            
            
            2,468Interest
                payable, convertible debt
            
            
            96,499
            
            
            416,645Current
                portion of long-term convertible debt
            
            
            470,197
            
            
            215,259Total
                Current Liabilities
            
            
            677,098
            
            
            714,546LONG-TERM
                CONVERTIBLE DEBT, net of current portion
            
            
            1,319,676
            
            
            1,497,207COMMITMENTS
                AND CONTINGENCIESSTOCKHOLDERS’
                DEFICITPreferred
                stock, $0.01 par value, 20,000,000 shares authorized;no
                shares issued and outstanding
            
            
            -
            
            
            -Common
                stock, $0.01 par value, 100,000,000 shares authorized;55,082,548
                and 48,975,804 shares issued and outstanding,respectively
            
            
            550,825
            
            
            489,758Additional
                paid-in capital
            
            
            13,454,375
            
            
            12,909,764Accumulated
                other comprehensive income
            
            
            109,437
            
            
            36,125Accumulated
                deficit prior to exploration stage
            
            
            (558,504
            )
            
            (558,504
            )Accumulated
                deficit during exploration stage
            
            
            (15,141,557
            )
            
            (14,565,727
            )Total
                Stockholders’ Deficit
            
            
            (1,585,424
            )
            
            (1,688,584
            )TOTAL
                LIABILITIES AND STOCKHOLDERS’ DEFICIT
            
            $
            411,350
            
            $
            523,169





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





2


**TREND
                MINING COMPANY**
              **(An
                Exploration Stage Company)**
              **STATEMENTS
                OF OPERATIONS AND COMPREHENSIVE
                LOSS**




Period
                fromOctober
                1, 1996Three
                Months
            
            Three
                Months
            
            (Inception
                ofEnded
            
            Ended
            
            Exploration
                Stage)December
                31,
            
            December
                31,
            
            to
                December 31,2006
            
            2005
            
            2006ROYALTY
                REVENUES
            
            $
            91,268
            
            $
            -
            
            $
            260,666EXPENSESExploration
                expense
            
            
            35,516
            
            
            7,051
            
            
            3,325,228General
                and administrative
            
            
            112,968
            
            
            58,518
            
            
            3,514,816Officers
                and directors compensation
            
            
            58,053
            
            
            140,938
            
            
            2,453,599Legal
                and professional
            
            
            92,485
            
            
            168,433
            
            
            2,120,059Depreciation
            
            
            543
            
            
            689
            
            
            58,708Total
                Expenses
            
            
            299,565
            
            
            375,629
            
            
            11,472,410OPERATING
                LOSS
            
            
            (208,297
            )
            
            (375,629
            )
            
            (11,211,744
            )OTHER
                INCOME (EXPENSE)Dividend
                and interest income
            
            
            4,230
            
            
            3,367
            
            
            34,113Settlement
                expense
            
            
            -
            
            
            -
            
            
            (26,250
            )Gain
                (loss) on disposition and impairment of assets
            
            
            -
            
            
            -
            
            
            (105,861
            )Gain
                (loss) on investment sales
            
            
            -
            
            
            -
            
            
            (63,813
            )Financing
                expense
            
            
            (313,400
            )
            
            (108,477
            )
            
            (3,628,163
            )Interest
                expense
            
            
            (62,621
            )
            
            (66,165
            )
            
            (851,562
            )Other
                income (loss)
            
            
            4,258
            
            
            -
            
            
            33,762Forgiveness
                of debt
            
            
            -
            
            
            48,000
            
            
            677,961Total
                Other Income (Expense)
            
            
            (367,533
            )
            
            (123,275
            )
            
            (3,929,813
            )LOSS
                BEFORE INCOME TAXES
            
            
            (575,830
            )
            
            (498,904
            )
            
            (15,141,557
            )INCOME
                TAXES
            
            
            -
            
            
            -
            
            
            -NET
                LOSS
            
            
            (575,830
            )
            
            (498,904
            )
            
            (15,141,557
            )OTHER
                COMPREHENSIVE INCOME (LOSS)Unrealized
                gain on available for sale securities
            
            
            73,312
            
            
            -
            
            
            109,437COMPREHENSIVE
                LOSS
            
            $
            (502,518
            )
            $
            (498,904
            )
            $
            (15,032,120
            )BASIC
                AND DILUTED NET LOSS PER SHARE
            
            $
            (0.01
            )
            $
            (0.01
            )WEIGHTED
                AVERAGE NUMBER OFCOMMON
                SHARES OUTSTANDING
            
            
            53,620,503
            
            
            38,709,272





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





3


**TREND
                MINING COMPANY**
              **(An
                Exploration Stage Company)**
              **STATEMENT
                OF STOCKHOLDERS’ EQUITY (DEFICIT)**




Date
            
            Price
            
            Number
                of Shares
            
            Number
                of Options
            
            Number
                of Warrants
            
            Common
                Stock Amount
            
            Additional
                Paid-in Capital
            
            Accumulated
                Deficit
            
            Accumulated
                Other Comprehensive Income (Loss)
            
            TotalBalance,
                September 30, 2006
            
            
            
            
            
            
            
            
            48,975,804
            
            
            2,125,000
            
            
            19,513,175
            
            $
            489,758
            
            $
            12,909,764
            
            $
            (15,124,231
            )
            $
            36,125
            
            $
            (1,688,584
            )Common
                Stock issued:-for
                convertible debt and interest
            
            
            Various
            
            
            0.100
            
            
            5,345,380
            
            
            -
            
            
            -
            
            
            53,454
            
            
            478,273
            
            
            -
            
            
            -
            
            
            531,727-for
                compensation
            
            
            10/31/2006
            
            
            0.100
            
            
            40,000
            
            
            
            
            
            
            
            
            400
            
            
            3,600
            
            
            
            
            
            
            
            
            4,000-for
                convertible debt and interest
            
            
            12/1/2006
            
            
            0.084
            
            
            63,244
            
            
            
            
            
            
            
            
            632
            
            
            4,680
            
            
            
            
            
            
            
            
            5,312For
                convertible debt and interest
            
            
            12/1/2006
            
            
            .065
            
            
            250,531
            
            
            -
            
            
            -
            
            
            2,505
            
            
            12,338
            
            
            -
            
            
            -
            
            
            14,843-for
                convertible debt and interest
            
            
            12/13/2006
            
            
            0.091
            
            
            204,807
            
            
            
            
            
            
            
            
            2,048
            
            
            16,630
            
            
            
            
            
            
            
            
            18,678-for
                convertible debt and interest
            
            
            12/26/2006
            
            
            0.880
            
            
            59,925
            
            
            
            
            
            
            
            
            599
            
            
            4,674
            
            
            
            
            
            
            
            
            5,273-for
                compensation
            
            
            12/26/2006
            
            
            0.140
            
            
            142,857
            
            
            
            
            
            
            
            
            1,429
            
            
            18,571
            
            
            
            
            
            
            
            
            20,000Compensation
                costs recognized for options
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            5,845
            
            
            -
            
            
            -
            
            
            5,845Unrealized
                change in market value of available for sale securities
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            73,212
            
            
            73,312Net
                loss
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (575,830
            )
            
            -
            
            
            (575,830
            )Balance,
                December 31, 2006
            
            
            
            
            
            
            
            
            55,082,548
            
            
            2,125,000
            
            
            19,513,175
            
            $
            550,825
            
            $
            13,454,375
            
            $
            (15,700,061
            )
            $
            109,437
            
            $
            (1,585,424
            )





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





4


**TREND
                MINING COMPANY**
              **(An
                Exploration Stage Company)**
              **STATEMENTS
                OF CASH FLOWS**




Period
                fromOctober
                1, 1996Three
                Months
            
            Three
                Months
            
            (Inception
                ofEnded
            
            Ended
            
            Exploration
                Stage)December
                31,
            
            December
                31,
            
            to
                December 31,2006
            
            2005
            
            2006**CASH
                FLOWS FROM OPERATING ACTIVITIES:**Net
                loss
            
            $
            (575,830
            )
            $
            (498,904
            )
            $
            (15,141,557
            )Adjustments
                to reconcile net loss to net cash used by operating
                activities:Depreciation
            
            
            543
            
            
            689
            
            
            58,708Amortization
                of debt discount
            
            
            313,400
            
            
            108,477
            
            
            1,737,408Loss
                on investment sales
            
            
            -
            
            
            -
            
            
            68,969Loss
                (gain) on disposition and impairment of assets
            
            
            -
            
            
            -
            
            
            105,861Gain
                on forgiveness of debt
            
            
            -
            
            
            (48,000
            )
            
            (249,581
            )Interest
                expense forgiven by related parties
            
            
            -
            
            
            -
            
            
            20,848Common
                stock issued for servicesand
                financing expenses
            
            
            20,000
            
            
            1,800
            
            
            1,285,171Common
                stock issued for payables and accrued expenses
            
            
            -
            
            
            -
            
            
            219,656Common
                stock issued for investments
            
            
            -
            
            
            -
            
            
            93,168Common
                stock issued for incentive fees
            
            
            -
            
            
            -
            
            
            21,544Common
                stock issued for payment of interest
            
            
            339,840
            
            
            15,619
            
            
            491,568Common
                stock and options issued as compensation
            
            
            9,845
            
            
            90,000
            
            
            1,288,340Common
                stock and warrants issued to acquire mineralproperty
                options
            
            
            -
            
            
            -
            
            
            1,114,873Stock
                options and warrants issued for consulting fees
            
            
            -
            
            
            -
            
            
            185,289Stock
                options and warrants issued ormodified
                for financing expense
            
            
            -
            
            
            -
            
            
            1,488,778Investment
                traded for services
            
            
            -
            
            
            -
            
            
            45,939Changes
                in assets and liabilities:Prepaid
                expenses
            
            
            (5,000
            )
            
            4,209
            
            
            (1,195
            )Accounts
                receivable
            
            
            (7,978
            )
            
            1,122,975
            
            
            (85,769
            )Accounts
                payable
            
            
            22,227
            
            
            (335,019
            )
            
            292,993Accounts
                payable, related parties
            
            
            -
            
            
            
            
            
            15,000Accrued
                expenses
            
            
            5,532
            
            
            (22,141
            )
            
            (66,305
            )Reclamation
                bond
            
            
            7,720
            
            
            5,500
            
            
            -Interest
                payable
            
            
            (320,144
            )
            
            40,048
            
            
            (21,656
            )Net
                cash used by operating activities
            
            
            (189,845
            )
            
            485,253
            
            
            (7,031,950
            )**CASH
                FLOWS FROM INVESTING ACTIVITIES:**Proceeds
                from sale of equipment
            
            
            -
            
            
            -
            
            
            37,626Purchase
                of fixed assets
            
            
            -
            
            
            -
            
            
            (57,210
            )Proceeds
                from sale of mineral property
            
            
            -
            
            
            -
            
            
            1,142,975Costs
                of mining interest
            
            
            -
            
            
            -
            
            
            (1,053,170
            )Proceeds
                from investments sold
            
            
            -
            
            
            -
            
            
            183,161Net
                cash provided (used) by investing activities
            
            
            -
            
            
            -
            
            
            253,382




5
 
 **TREND
                    MINING COMPANY**
                  **(An
                    Exploration Stage Company)**
                  **STATEMENTS
                    OF CASH FLOWS**


Period
                  fromOctober
                  1, 1996Three
                  Months
              
              Three
                  Months
              
              (Inception
                  ofEnded
              
              Ended
              
              Exploration
                  Stage)December
                  31,
              
              December
                  31,
              
              to
                  December 31,2006
              
              2005
              
              2006


**CASH
                FLOWS FROM FINANCING ACTIVITIES:**Proceeds
                from notes payable and short-term borrowings
            
            
            -
            
            
            -
            
            
            1,111,300Payments
                on notes payable and short-term borrowings
            
            
            -
            
            
            (60,000
            )
            
            (692,336
            )Proceeds
                from internal securities sale
            
            
            -
            
            
            -
            
            
            210,194Proceeds
                from sale of warrants
            
            
            -
            
            
            -
            
            
            10,000Proceeds
                from convertible debt
            
            
            -
            
            
            -
            
            
            4,035,857Payments
                on convertible debt
            
            
            -
            
            
            -
            
            
            (472,629
            )Financing
                fees
            
            
            -
            
            
            150,000
            
            
            (293,341
            )Proceeds
                from sale of common stockand
                exercise of options
            
            
            -
            
            
            -
            
            
            2,843,151Issuance
                of penalty shares
            
            
            -
            
            
            -
            
            
            223,600Net
                cash provided by financing activities
            
            
            -
            
            
            90,000
            
            
            6,975,796**NET
                INCREASE (DECREASE) IN CASH**
            
            
            (189,845
            )
            
            575,253
            
            
            197,228**CASH,
                BEGINNING OF PERIOD**
            
            
            390,680
            
            
            64,391
            
            
            3,607**CASH,
                END OF PERIOD**
            
            $
            200,835
            
            $
            639,644
            
            $
            200,835**SUPPLEMENTAL
                CASH FLOW INFORMATION:**Interest
                paid
            
            $
            42,927
            
            $
            10,000
            
            $
            243,094Income
                taxes paid
            
            $
            -
            
            $
            -
            
            $
            -**NON-CASH
                FINANCING AND INVESTING ACTIVITIES:**Common
                stock and warrants issued to acquiremineral
                properties
            
            $
            -
            
            $
            -
            
            $
            1,189,873Common
                stock issued for acquisition ofmining
                equipment
            
            $
            -
            
            $
            -
            
            $
            180,000Common
                stock issued for investment
            
            $
            -
            
            $
            -
            
            $
            185,168Common
                stock issued for payment of convertible debt
            
            $
            235,993
            
            $
            70,311
            
            $
            1,020,092Common
                stock issued for financing fees
            
            $
            -
            
            $
            -
            
            $
            45,000Deferred
                acquisition costs on mining property
            
            $
            -
            
            $
            -
            
            $
            46,242Purchase
                of equipment with financing agreement
            
            $
            -
            
            $
            -
            
            $
            21,814Investments
                received for mineral property
            
            $
            -
            
            $
            -
            
            $
            5,500Investments
                received for accounts receivable
            
            $
            -
            
            $
            -
            
            $
            42,500Equipment
                for loans payable
            
            $
            -
            
            $
            -
            
            $
            4,500Warrants
                issued with convertible debt
            
            $
            -
            
            $
            -
            
            $
            1,071,069Beneficial
                conversion rights
            
            $
            -
            
            $
            -
            
            $
            1,081,260





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





6


**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





**NOTE
      1 - ORGANIZATION AND DESCRIPTION OF BUSINESS**





Trend
      Mining Company (formerly Silver Trend Mining Company) (“the Company” or “Trend”)
      was incorporated on September 7, 1968 under the laws of the State of Montana
      for
      the purpose of acquiring, exploring and developing mining properties. From
      1984
      to late 1996, the Company was dormant. In November 1998, the Company changed
      its
      focus to exploration for platinum and palladium related metals primarily in
      the
      United States. In 2004, the Company further diversified into uranium properties.
      The Company directs its operations primarily from its office in Littleton,
      Colorado. The Company has one production stage royalty interest. All of the
      Company’s other mineral properties are in the exploration stage. The Company is
      not conducting development or mining operations at this time. The Company has
      a
      September 30 fiscal year-end.





**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





The
      accompanying unaudited financial statements have been prepared in accordance
      with generally accepted accounting principles for interim financial information
      and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
      they do not include all of the information and footnotes required by generally
      accepted accounting principles for annual financial statements. Therefore,
      these
      interim unaudited financial statements should be read in conjunction with the
      Company’s audited annual financial statements and notes included in Form 10-KSB
      for the year ended September 30, 2006.





In
      the
      opinion of management, the accompanying unaudited financial statements contain
      all adjustments (which are of a normal recurring nature) necessary for a fair
      presentation of our financial position, results of operations and cash flows
      for
      the periods presented.





Operating
      results for the three months ended December 31, 2006, are not necessarily
      indicative of the results that may be expected for the fiscal year ending
      September 30, 2007.





Exploration
      Stage Activities and Exploration Costs




The
      Company has been in the exploration stage since October 1, 1996, when the
      Company emerged from a period of dormancy. The Company is primarily engaged
      in
      the acquisition and exploration of mineral properties. The Company expenses
      exploration costs as incurred. Should the Company locate a commercially viable
      reserve, the Company would expect to actively prepare the site for
      extraction.





Going
      Concern




As
      shown
      in the accompanying financial statements, at December 31, 2006, the Company
      has
      limited cash, has negative working capital, incurred a net loss of $575,830
      for
      the three months then ended, and has an exploration stage accumulated deficit
      of
      $15,141,557. These factors indicate that the Company may be unable to continue
      in existence in the absence of receiving additional funding. The financial
      statements do not include any adjustments related to the recoverability and
      classification of recorded assets, or the amounts and classification of
      liabilities that might be necessary in the event the Company cannot continue
      in
      existence.





The
      Company estimates that approximately $600,000 is required to fund operations
      of
      the Company for the next 12 months assuming minimal exploration activities,
      or
      $1,230,000 if the Company wishes to retain its interest at the Stillwater
      project. Additional cash will be required if the Company has to service its
      convertible debt with cash in lieu of stock. The Company’s management believes
      that it will be able to generate sufficient cash from public or private debt
      or
      equity financing in order for the Company to continue to operate based on
      current expense projections.





Mineral
      Properties




The
      Company capitalizes only amounts paid in cash or stock as consideration for
      the
      acquisition of real property, including patented mining claims and royalty
      interests. See Note 3. Acquired properties are recorded at fair value negotiated
      in arm’s length transactions. Costs and fees paid to locate and maintain
      unpatented mining claims, to acquire options to purchase claims or properties,
      and to maintain the mineral rights and leases, are expensed as incurred. In
      the
      accompanying financial statements, there are no amounts capitalized for mineral
      properties.





7




**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





Mineral
      properties are periodically assessed for impairment of value and any diminution
      in value is charged to operations at the time of impairment. Should a property
      be abandoned, its unamortized capitalized costs are charged to operations.
      The
      Company charges to operations the allocable portion of capitalized costs
      attributable to properties sold. Capitalized costs are allocated to properties
      abandoned or sold based on the proportion of claims abandoned or sold to the
      claims remaining within the project area.





Stock
      Issued for Other Than Cash




The
      Company values unrestricted common stock granted to employees for services,
      property, or investments at the fair value of the common stock determined as
      the
      closing price of stock on the day of issuance. If no trading occurred on a
      date
      of issuance, then the fair value used is the lower of the closing prices on
      the
      first previous day or the first following day on which the Company’s stock was
      traded. Common stock granted to non-employees is valued at the fair value of
      the
      stock or the fair value of the consideration received, whichever is more
      reliably measured. The Company may issue common stock with certain restrictions
      placed upon the trading thereof. In these circumstances the shares are valued
      at
      a reasonable discount to the closing stock price. These stock issuances are
      accounted for as expenses, if the stock was issued for services or exploration
      costs, and as assets, if the stock was issued for investments or real
      property.





Reclassification




Certain
      accounts in prior period financial statements have been reclassified for
      comparative purposes to conform with the presentation in the current period
      financial statements.





**NOTE
      3 - MINERAL PROPERTIES**





At
      December 31, 2006, the Company has an interest in one production stage mineral
      property, no development stage properties, and six exploration stage properties.
      The following describes each of these mineral properties.





Andacollo
      Mine, Chile




During
      the fourth quarter of fiscal 2005, Trend entered into negotiations to purchase
      100% of Compania Minera Dayton (“CMD”), a Chilean corporation that owns and
      operates the Andacollo gold mine in Chile. On September 20, 2005, Trend bought
      30% of the corporation’s shares (and effectively 30% of the aforementioned mine)
      while a separate group of investors purchased the remaining 70% on the same
      date.





The
      Company paid an initial $900,000 in cash for the acquisition. The Company also
      paid out additional related expenses for which it was to be repaid 70% by the
      other investors. Before the end of the year, the investor group bought Trend’s
      30% stake in exchange for cash of $1,122,975, a 1% net smelter returns royalty,
      and a 30% back-in right exercisable through April 1, 2006. As a result of this
      transaction, the Company recognized a gain of $69,804 at September 30, 2005,
      and
      it retained a 1% net smelter returns royalty. The Company received the cash
      portion of the purchase price during the quarter ended December 31, 2005. The
      Company did not exercise the 30% back-in right.





The
      final
      operating permits for the mine were obtained on December 27, 2005, and it became
      fully operational during the third quarter of fiscal 2006. Trend is
      contractually entitled to receive 1% of gold revenues from the mine in monthly
      installments, subject to a 35% Chilean withholding tax.





Diabase
      Peninsula, Cree Lake Area, Saskatchewan, Canada




On
      September 15, 2004, the Company diversified into uranium exploration with the
      staking of a mining claim comprising approximately 940 hectares (approximately
      4
      square miles) at Cree Lake in the Athabasca Basin of Saskatchewan.


8





**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





In
      October 2004, the Company signed an option to purchase an additional mining
      claim at Cree Lake which covers 1681 hectares (approximately 6.5 square miles)
      and is located immediately adjacent to, and southwest of, the first Cree Lake
      claim. This option agreement is referred to herein as the Diabase Peninsula
      Lease.





Terms
      of
      the Diabase Peninsula Lease require Trend to maintain the claim group in good
      standing by performing a minimum of approximately CDN $20,172 worth of field
      work per year. In addition, payments to the lessor of CDN $15,000, $20,000,
      and
      $30,000, respectively, were made in each of the first three years. Trend has
      an
      option to purchase the claims for CDN $11 million any time through September
      2012, at which time the property remains subject to a 3% gross royalty on any
      and all minerals produced.





Subsequent
      to the acquisition of the Diabase Peninsula Lease, Trend staked one more claim
      on the southwestern edge of the lease for an additional 1603 hectares (6.2
      square miles), such that the aggregate area of Trend’s uranium claims in the
      Athabasca Basin totals 4224 hectares (16.7 square miles).





In
      December 2004, Trend announced that it and Nuinsco Resources Limited (“Nuinsco”)
      signed a Letter of Intent to form a 50-50 joint venture to own, operate and
      explore the three Cree Lake/Diabase Peninsula claims. Pursuant to the Letter
      of
      Intent Nuinsco conducted, at its expense, an exploration program consisting
      of
      geophysical surveys and geochemical sampling followed by drilling. A definitive
      joint venture agreement was executed on September 29, 2005. Under the terms
      of
      the joint venture agreement, Nuinsco must maintain all three claims in good
      standing, including the performance of the minimum annual filed work required
      by
      the Diabase Peninsula Lease, and will earn a 50% interest in the claims upon
      spending CDN $1 million prior to December of 2007. The spending requirement
      was
      satisfied in May of 2006, and accordingly, Trend and Nuinsco became 50-50 owners
      of the claims at that time. Since then, Trend has declined to fund its 50%
      share
      of continuing exploration expenditures. As a result, the Company’s ownership had
      been diluted to approximately 30% as of September 30, 2006. In the future,
      if
      Nuinsco takes the project into the development stage, Trend will have a one
      time
      opportunity to regain its 50% interest by repaying the expenditures it otherwise
      would have made plus paying a 40% **** penalty.





Additionally,
      to offset Trend’s payments made to the lessor, and per terms of the agreement
      with Nuinsco, during the quarter ended June 30, 2006, Nuinsco granted to the
      Company 212,500 freely trading shares of Nuinsco common stock.





Stillwater
      Complex, Montana




Effective
      January 1, 2005, Trend entered into an agreement with Aurora Metals Limited
      (“Aurora”) that provides that Trend will explore for platinum group and base
      metals on portions of Aurora claims known as the “Stillwater Intrusive Complex”
in Montana. Trend will be the operator during the exploration stage and will
      earn 50% in the project by fulfilling work commitments to spend $2 million
      on
      qualified exploration expenditures over the ensuing 5 years. Additionally,
      Trend
      issued 50,000 shares of its common stock to Aurora on commencement of the
      agreement. Further, Trend issued 20,000 shares and paid $20,000 on the first
      anniversary of the agreement, issued 142,857 shares on the second anniversary,
      and must pay $20,000 in cash or stock each year thereafter until it has spent
      the agreed upon sum of $2 million, at which time a 50-50 joint venture will
      be
      formed.





The
      cumulative work commitment required by the agreement is $500,000 during the
      first two year period ending December 31, 2006. Thereafter, work commitments
      total $500,000 per year for three additional years. Through December 31, 2006,
      the Company had spent approximately $370,000 on qualified exploration
      expenditures. The Company did not complete its work commitment for 2006 due
      to
      forest fires which closed the National Forest. The Company notified Aurora
      of a
      Force Majeure situation and will need to spend, subject to final accounting,
      approximately $630,000 during 2007 to maintain the agreement in
      force.





Lake
      Owen Claims, Wyoming




In
      September 1999, the Company entered into an agreement with General Minerals
      Corporation (“GMC”) to acquire a platinum group metals and magnetite property
      located in Albany County, Wyoming. Pursuant to the agreement, the Company
      received 104 unpatented mining claims, the Lake Owen claims, in exchange for
      715,996 shares of common stock, $40,000 in cash and $750,000 in exploration
      expenditure commitments to be incurred over a three-year option period. In
      May
      2000, the Company issued an additional 129,938 shares of common stock under
      this
      agreement.


9


**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





In
      June
      2000, the Company and GMC entered into an amendment to the agreement under
      which
      (i) the Company issued 416,961 shares of common stock to GMC upon GMC’s
      exercise of preemptive rights, (ii) the Company performed an additional
      $15,000 of geophysical work prior to December 31, 2000 (subsequently
      modified), (iii) the Company issued 200,000 additional shares and warrants
      exercisable until June 2002 to purchase 200,000 shares at $0.70 per share,
      and
      (iv) GMC agreed to terminate its antidilution and preemptive rights as
      provided in the original agreement. The 200,000 warrants expired.





In
      March
      2002, the Company issued 1,100,000 shares, valued at $770,000 in full
      satisfaction of cash commitments relating to exploration activities. The
      issuance of these shares resulted in the full ownership of the Lake Owen claims
      by Trend Mining Company.





In
      1999-2000, the Company staked additional claims at Lake Owen and an adjoining
      area, Albany West, and now holds 601 unpatented mining claims at the Lake Owen
      area.





In
      August, 2005, the Company commenced exploration of this property with ground
      magnetic surveys. Effective June 1, 2006, the Company leased the 601 claims
      to
      RMP Resources Corp., a private company. The lease requires RMP to pay Trend
      advance royalties of $35,000 annually. The lease also requires RMP to incur
      exploration expenditures of $200,000 through June 1, 2007, $350,000 during
      the
      following year, and $500,000 annually thereafter. Upon the cumulative
      expenditure of $5 million, RMP will acquire the property and will owe a 3%
      net
      smelter returns royalty to Trend. RMP Resources has not yet provided any results
      to Trend from its 2006 exploration efforts, but it has indicated that it will
      continue evaluating the project in 2007.




Peter
      Lake, Saskatchewan, Canada




The
      Company holds seven mining claims in the Peter Lake Domain of northern
      Saskatchewan. The Peter Lake Domain is recognized to host known occurrences
      of
      copper-nickel and platinum-palladium mineralization.





In
      August
      2000, the Company staked five claims. In 2002, the Company allowed these claims
      to lapse and subsequently restaked them plus one additional claim. In October
      of
      2004 the Company expanded the Peter Lake Project by acquiring 3 claims near
      Ant
      Lake, Swan Lake, and Seahorse Lake. Five of the six 2002 claims lapsed, but
      in
      2005 the Company staked four new claims. In March of 2006, the Company allowed
      the remaining 2002 claim to lapse, such that now the Company holds seven claims
      for a total of 14,781 hectares (57 square miles).





In
      August
      2004, the Company began exploration of this property. During the summer of
      2005,
      the Company executed a broad reconnaissance program to search for extractable
      concentrations of minerals.





The
      Company continues to hold the property and will be required to spend
      approximately CDN$177,000 in 2007 to retain these claims. The Company is seeking
      a joint venture partner due to the high expense of operating in the high
      Canadian latitudes.





Pyramid
      Claims, Nevada




The
      Company retains a 1.5% net smelter returns royalty interest in the Pyramid
      project, which consists of five unpatented lode mining claims within the Walker
      Indian Reservation near Fallon, Nevada. There is currently no activity being
      conducted at this project.





Rae-Wallace
      Claims




The
      Company retains a 2.5% net smelter returns royalty on four patented mining
      claims located north of Anchorage, Alaska, that are owned by the Rae-Wallace
      Company, a former subsidiary. Trend does not anticipate any activity being
      conducted on these claims in the foreseeable future.


10


**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**




**NOTE
      4 - CONVERTIBLE DEBT**





The
      Company’s convertible debt at December 31 and September 30, 2006 consists of the
      following:





December
                31, 2006
            
            September
                30, 20062001/2002
                Convertible Debt:
              Notes
                payable, interest at 8% payable monthly,
              due
                August 17, 2008
            
            $
            940,638
            
            $
            940,6382005
                Convertible Debt:
              Notes
                payable at prime plus 3% (11.25% at September 30, 2006) but not less
                than 10%, due January through July, 2008, principal and interest
                payable monthly
            
            
            779,184
            
            
            885,4902006
                Convertible Debt:
              Notes
                payable, interest at 10%, due June 13, 2009, principal and interest
                payable monthly beginning October 2006
            
            
            895,313
            
            
            1,025,000Subtotal
            
            
            2,615,135
            
            
            2,851,128Unamortized
                discounts
            
            
            (825,261
            )
            
            (1,138,662
            )Total
            
            
            1,789,874
            
            
            1,712,466Less
                current maturities
            
            
            (470,197
            )
            
            (215,259
            )Convertible
                debt, net of current portion
            
            $
            1,319,676
            
            $
            1,497,207





Additional
      information regarding the Company’s convertible debt is as follows:





2001/2002
      Convertible Debt




During
      the years ended September 30, 2001 and 2002, the Company completed private
      placements of convertible promissory notes in the amount of $1,032,857. The
      Company also issued warrants with the promissory notes. Subsequently, certain
      terms of both the notes and the warrants were modified. The warrants, as
      modified, allow for the purchase of up to 7,063,174 shares of the Company’s
      common stock. See Note 5 for additional information regarding
      warrants.





The
      promissory notes, as modified, are convertible into Units at a rate of one
      Unit
      for each $0.21 of principal outstanding. Each Unit consists of one share and
      one
      warrant with the warrant being exercisable for a period of five years from
      the
      date of conversion at a price of $0.25 per share.





2005
      Convertible Debt




During
      the year ended September 30, 2005, the Company completed private placements
      of
      convertible promissory notes in the amount of $1,800,000. Required monthly
      payments of principal and interest may be made in cash or in shares of the
      Company’s common stock. On December 6, 2005, the conversion rate of the debt was
      changed by operation of a clause in the note agreements that automatically
      reduced the conversion rate upon the sale by the Company of common stock at
      a
      price lower than the existing conversion rate of the notes. Therefore, at any
      time prior to maturity, the promissory notes are convertible into shares of
      the
      Company’s common stock at a rate of one share for each $0.10 of principal and
      interest outstanding. Additionally, the Company issued two series of warrants
      (Class A and Class B) with the promissory notes. The Class A warrants allow
      for
      the purchase of up to 2,400,000 shares of the Company’s common stock and Class B
      warrants allowed for the purchase of up to 3,000,000 shares of common
      stock.


11





**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





In
      relation to the convertible debt, the Company paid finders fees in the form
      of
      approximately $214,000 in cash and the issuance of Class A and Class B warrants.
      The Class A warrants allow for the purchase of up to 825,001 shares of the
      Company’s common stock and Class B warrants allowed for the purchase of up to
      825,001 shares of common stock.





At
      issuance, the value of all the warrants and the beneficial conversions rights
      was $1,089,596 which was recorded on the balance sheet as a debt discount and
      additional paid-in capital. The warrants, beneficial conversion rights and
      finders fees are being amortized over the 3 year term of the convertible debt
      and the amortized amounts are included in financing expense in the financial
      statements.





During
      the year ended September 30, 2006, the exercise price of the Class A warrants
      was modified and all of the Class B warrants expired. See Note 5 for additional
      information regarding warrants.





2006
      Convertible Debt




During
      the year ended September 30, 2006, the Company completed private placements
      of
      convertible promissory notes in the amount of $1,025,000. Required monthly
      payments of principal and interest may be made in cash or in shares of the
      Company’s common stock. At any time prior to maturity, the promissory notes are
      convertible into shares of the Company’s common stock at a rate of one share for
      each $0.10 of principal and interest outstanding. Additionally, the Company
      issued two series of warrants (Class A and Class B) with the promissory notes.
      The Class A warrants allow for the purchase of up to 4,100,000 shares of the
      Company’s common stock and Class B warrants allow for the purchase of up to
      5,125,000 shares of common stock. See Note 5 for additional information
      regarding warrants.





In
      relation to the convertible debt, three shareholders were paid commissions
      totaling $133,500. The commissions were paid in the form of $23,750 in cash,
      issuance of 375,000 common shares valued at $37,500, and a $72,000 reduction
      of
      the balance of a promissory note.





At
      issuance, the value of all the warrants and the beneficial conversions rights
      was $891,750 which was recorded on the balance sheet as a debt discount and
      additional paid-in capital. The warrants, beneficial conversion rights and
      commissions are being amortized over the 3 year term of the convertible debt
      and
      the amortized amounts are included in financing expense in the financial
      statements.





**NOTE
      5 - WARRANTS AND OPTIONS**





The
      Company has issued warrants that enable the holder to purchase a stated number
      of shares of common stock at a certain price within a certain time period.
      Warrants have been issued in connection with a 1999 stock purchase agreement
      and
      in connection with the convertible debt discussed in Note 4.





Following
      is a summary of warrants outstanding at December 31, 2006:





Number
                of Warrants
            
            Strike
                Price
            
            Expiration
                Date2,383,333
            
            $
                0.10
            
            1/27/2010200,000
            
            $
                0.10
            
            3/22/2010641,668
            
            $
                0.10
            
            7/28/20104,100,000
            
            $
                0.17
            
            6/13/20116,464,761
            
            $
                0.25
            
            9/30/2011150,000
            
            $
                0.25
            
            1/31/2012113,413
            
            $
                0.25
            
            6/27/2012335,000
            
            $
                0.25
            
            9/30/20125,125,000
            
            $
                0.25
            
            *19,513,175





*
      expire
      120 days after the effective date of a registration statement registering the
      shares issuable upon exercise of the warrants. The Company anticipates that
      a
      registration statement will be filed during the first quarter of calendar year
      2007.


12





**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





On
      February 23, 2001, the Company’s shareholders approved the adoption of the 2000
      Equity Incentive Plan and the reservation of 5,000,000 shares of common stock
      for distribution under the plan. On April 19, 2006, the plan was amended to
      increase the number of reserved shares to 8,000,000. These shares and options
      to
      acquire those shares may be granted to the Company’s employees, directors and
      consultants. Under the plan, through December 31, 2006, 1,800,000 shares have
      been granted as directors fees. In addition, various options have been granted
      to officers, directors and consultants.





Following
      is a summary of stock option activity under the 2000 Equity Incentive Plan
      for
      the three months ended December 31, 2006:




Number
                of Shares
            
            Weighted
                Average
              Exercise
                PriceOutstanding
                at September 30, 2006
            
            
            2,125,000
            
            $
            0.33Granted
            
            
            —
            
            
            —Exercised
            
            
            —
            
            
            —Expired
            
            
            —
            
            
            —Outstanding
                at December 31, 2006
            
            
            2,125,000
            
            $
            0.33Exercisable
                at December 31, 2006
            
            
            1,975,000
            
            $
            0.33





**NOTE
      6 - RELATED PARTY TRANSACTIONS**





Notes
      Payable, Related Parties




During
      the year ended September 30, 2005, the Company borrowed $660,000 in total from
      Mr. Loucks, an officer and director, Mr. Wu, a director, and IW Exploration,
      a
      company owned by Mr. Wu. The Company also issued to Mr. Loucks and Mr. Wu 60,000
      and 6,000 shares of common stock, respectively, as a financing fee for their
      loans. The loans plus interest accrued at 8% were repaid during the year ended
      September 30, 2006.





Other
      Related Party Transactions




On
      behalf
      of the Company, in March 2005, an officer personally paid $15,000 owed to an
      outside consultant. The Company has recorded that amount in “accounts payable,
      related parties”, in the financial statements.





The
      Company owed $73,000 of accrued wages to the former chief geologist for the
      Company. In October 2005, the Company paid a settlement of $25,000 with the
      remaining $48,000 of the debt forgiven.





**NOTE
      7 - COMMITMENTS AND CONTINGENCIES**





Mineral
      Properties




Four
      of
      the Company’s mining claims at Peter Lake in Saskatchewan, Canada, are scheduled
      to lapse in August 2007, and the remaining three claims in January 2008. In
      order to retain the claims, the Company must fulfill exploration commitments
      prior to the lapse dates of CDN$119,000 and CDN$58,000 for the four claims
      and
      three claims, respectively.





To
      maintain its interest in the Stillwater property, the Company must fulfill
      exploration commitments of approximately $ 630,000 by
      December 31, 2007 and $500,000 in each of the following two
      years.


13





**TREND
      MINING COMPANY**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO THE FINANCIAL STATEMENTS**





All
      commitments to maintain the Company’s Cree Lake claims are being fulfilled by
      the Company’s joint venture partner. All commitments to maintain the Company’s
      the Lake Owen claims are being fulfilled by the lessee of the
      claims.





The
      Company’s interest in the Andacollo mine, Pyramid claims, and Rae-Wallace claims
      are all perpetual royalties requiring no future commitments.





Employment
      Agreements




On
      November 1, 2005, the Company entered into an employment agreement with Mr.
      Thomas Loucks, the president and chief executive officer, for a term of one
      year, which extends each year for a period of one year unless terminated by
      either party. Under the agreement the Company will pay Mr. Loucks $120,000
      annually. See Note 8.




The
      Company has an employment agreement with Mr. John Ryan, the chief financial
      officer, secretary and treasurer, whereby Mr. Ryan receives a salary of $4,000
      per month. The agreement may be terminated by either party with 30 days notice.
      If the Company is unable to pay the salary in cash, then Mr. Ryan has the option
      to receive $4,000 worth of the Company’s common stock at the prevailing rate at
      which shares are or were most recently sold by the Company. At December 31,
      2006, $8,000 of salary due to Mr. Ryan is included in accrued
      expenses.





Legal
      Proceedings




In
      May,
      2002, one of the Company’s vendors obtained a judgment to collect $18,574 due
      under a rental lease agreement for office space the Company chose to vacate.
      The
      judgment bears interest at 18% until paid in full. Included in the accounts
      payable balance as of December 31, 2006 is approximately $39,564 related to
      this
      judgment.





**NOTE
      8 - SUBSEQUENT EVENTS**





On
      January 26, 2007, Thomas Loucks resigned as President and Chief Executive
      Officer of the Company, effective January 31, 2007. The Board appointed Dr.
      Ishiung Wu, a member of the Board of Directors, as Interim President and Chief
      Executive Officer. The Board has not determined whether Dr. Wu will receive
      any
      compensation for his service as interim President and Chief Executive Officer
      and, if so, the amount of such compensation.





On
      February 13, 2007, the Company filed its Amended and Restated Certificate of
      Incorporation to increase its number of authorized shares of common stock to
      250,000,000 and to delete Section 4.4 of the Certificate of
      Incorporation.





14




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




*Cautionary
      Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities
      Litigation Reform Act of 1995. This section contains forward looking statements.
      Forward looking statements are only expressions of Trend’s present expectations
      and intentions. Forward looking statements are not guaranteed to occur and
      they
      may not occur. You should not place undue reliance upon forward looking
      statements. You should read these cautionary statements as being applicable
      to
      all forward looking statements wherever they appear. Trend assumes no obligation
      to update the forward looking statements or the reasons why actual results
      could
      differ from those projected in the forward looking statements to reflect events
      or circumstances after the date hereof.*





**OVERVIEW**





Trend
      is
      a diversified minerals company engaged in exploration for base and precious
      metals. Trend’s properties include its royalty interest in the producing
      Andacollo gold mine in Chile, the advanced stage Mouat nickel-copper deposit
      in
      Montana, and a portfolio of uranium, PGM, and base metal exploration projects
      in
      the United States and Canada. As an exploration company, Trend’s major
      expenditures consist of payment of governmental fees to maintain the priority
      of
      Trend’s unpatented mining claims, payment of Trend’s debt service, payment of
      accounting and legal fees, and general office expenses, the aggregate of which
      typically outweigh monies spent on exploration programs. Until the Company
      or
      one of its partners advances one of Trend’s interests to the point where it
      generates substantial revenues, Trend will continue to need to raise funds in
      the financial markets to fund its ongoing exploration efforts. To that end,
      Trend’s principal vehicles for attracting new equity capital are its advanced
      stage nickel-copper deposit at Stillwater, Montana - where Trend is the
      operator, and its stake in an unconformity-type uranium play in the Athabasca
      Basin of Saskatchewan, where recent exploration results have been fairly
      positive and Trend’s operating partner has announced a major drilling program
      for 2007.




Our
      principal mineral property interests are set forth below:




*Property*
            
            *Commodity*
            
            *Status*
            
            *TRDM
                interest**Andacollo,
                Chile*
            
            *Gold*
            
            *Producing*
            
            *1%
                NSR royalty**Stillwater,
                Montana*
            
            *Ni,
                Cu, PGMs*
            
            *Advanced
                exploration*
            
            *Option
                to own 50%**Diabase
                Peninsula, Saskatchewan*
            
            *Uranium*
            
            *Exploration*
            
            *Variable
                right to own up to 50%**Lake
                Owen, Wyoming*
            
            *PGMs,
                Fe, Ti, V*
            
            *Exploration*
            
            *100%
                but leased to RMP Resources**Peter
                Lake, Saskatchewan*
            
            *PGMs,
                Cu, Au*
            
            *Exploration*
            
            *100%*




**RESULTS
      OF OPERATIONS**





***Quarter
      Ended December 31, 2006 as compared to December 31,
      2005***





We
      recorded a net loss of $575,830, or $.01 per share, on revenues of $91,268
      in
      the three months ended December 31, 2006. This compares to a net loss of
      $498,904, or $0.01 per share in the same period of 2005 when there were no
      revenues.




Our
      1%
      Net Smelter Returns royalty interest in the Andacollo gold mine in Chile
      commenced paying revenues during the third quarter of FY 2006. The revenue
      from
      this royalty represents the first resource revenue received by Trend since
      its
      recapitalization in 1998 and amounted to approximately $91,000 during the
      quarter ended December 31, 2006.




Exploration
      expenses were $35,516 in the three months ended December 31, 2006 as compared
      to
      $7,051 in 2005. Activity in 2006 related to consultants working on the
      evaluation of Stillwater data, whereas during the same period in 2005, activity
      was lower due to a high tempo of field activity in the previous quarter ended
      September 30, 2005 and which encompassed the exploratory drilling program at
      Stillwater.




General
      and Administrative expenses were $112,968 in 2006 as compared to $58,518 in
      2005
      and were higher in 2006 due to taxes paid on the Andacollo royalty as well
      as to
      advisory fees paid to the CPM Group.




15




Officers
      and directors compensation was $58,053 for the quarter ended December 31, 2006
      as compared to $140,938 in the same period of 2005. This was primarily due
      to a
      recording of $90,000 in stock-based compensation paid in 2005.




Dividend
      and interest income of $4,230 was slightly higher due to higher money market
      interest earned in 2006 on higher cash balances as compared to
      2005.




Financing
      expense is a non-cash item for the amortization of discounts related to our
      convertible debt. The discounts relate to beneficial conversion rights,
      warrants, and other financing costs. The change in financing expense of $313,400
      in the quarter ended December 31, 2006 from $108,477 in the same period of
      2005
      is primarily due to the additional convertible debt issued in June 2006 and
      to
      accelerated amortization when several investors were repaid.




Interest
      expense charges of $62,621 in 2006 compared to $66,165 in 2005 were slightly
      lower due to a reduction in the overall corporate debt.




Other
      income was $4,258 in the period ended December 31, 2006 compared to zero in
      the
      same period of 2005. This was due to the sale of rights to participate in a
      common stock offering of Nuinsco which the Company could not participate in
      due
      to a conflict with securities laws governing the offering.




There
      was
      no recorded forgiveness of debt in 2006 as compared to $48,000 in 2005, which
      relates to renegotiation of an agreement with a former employee.




The
      loss
      of $575,830 in the quarter ended December 31, 2006 is compared to the loss
      of
      $498,904 in the same period of 2005. The increase was primarily due to the
      amortization of financing fees in 2006 that was partially offset by royalty
      revenue.




Trend
      recognized an unrealized gain on available for sale securities of $73,312.
      This
      unrealized gain represents market appreciation during the quarter on shares
      of
      Nuinsco held by Trend. Trend does not currently anticipate disposing of the
      Nuinsco shares.




**LIQUIDITY
      & CAPITAL RESOURCES**





***Liquidity:***





Our
      current source of cash receipts, approximately $20,000 per month net of tax
      is
      from the Andacollo gold mine royalty. This income is insufficient to fund our
      General and Administrative expenses which total about $50,000 per month. We
      will
      need to raise capital in the financial markets to fund our ongoing exploration
      activities and conduct ongoing operations. Our current cash balance of
      approximately $200,000 at December 30, 2006, may be greatly depleted by costs
      for our year-end audit and the filing of a registration statement relating
      to
      convertible debt financing.




We
      are
      continually evaluating business opportunities such as joint ventures, mergers,
      acquisitions, and strategic alliances with the objective of creating additional
      cash flow to sustain the corporation and provide a future source of funds for
      growth. Although we believe that we will find financing for our continuing
      activities, we cannot assure you of success in this regard. If we are not
      successful in raising additional capital, operations and liquidity will be
      adversely impacted.




During
      the Quarter ended December 31, 2006 debenture holders converted $235,993 of
      principal amounts to 2,441,678 shares as compared to $70,311 of conversion
      in
      the same period of 2005.




***Summary
      of Cash Flows for Quarter ended December 31, 2006:***





The
      Company’s cash and cash equivalents declined by an amount of $189,845 during the
      period from September 30, 2006 to December 31, 2006.




***Operating
      Activities:***





Operations
      used $189,845 of cash during the quarter ended December 31, 2006 as compared
      to
      $485,253 provided by operations in 2005. The decrease in 2006 as compared to
      2005 was primarily a result of the sale of Andacollo Gold Mine property in
      2005.




16




***Investing
      Activities:***





During
      the quarter ended December 31, 2006, and 2005 there were no cash flows from
      Investing activities.




***Financing
      Activities:***


During
      the quarter ended December 31, 2006 there were no cash flows from Financing
      Activities, as compared to the quarter ended December 31, 2006 in which 1.5
      million shares of common stock were issued in a private placement for $150,000
      and payments of $60,000 were made on notes payable.





***Outlook:***





Operations





During
      the coming year, we expect to receive royalty payments of approximately $20,000
      per month net of tax, or $180,000 over the remaining nine months of fiscal
      2007.
      We will need to spend $630,000 by the end of the fiscal year to maintain our
      rights at Stillwater, Montana, and will spend an estimated $450,000 for general
      and administrative expenses through the period ended September 30, 2007.




Investing





At
      present, we have no plans to engage in any investing activities during fiscal
      2007.




Financing





During
      the balance of the fiscal year approximately $1,112,275 of principal and
      $148,275 of interest will be due on our long-term convertible debt. We believe
      that all of the principal repayment and most of the interest obligation will
      be
      paid by the issuance of common stock.




At
      December 31, 2006, we had outstanding warrants to purchase 19,513,174 shares
      of
      common stock that, if exercised, would result in aggregate proceeds of
      approximately $4,067,000. Also, there are outstanding options to purchase
      2,125,000 shares of common stock that, if exercised, would result in aggregate
      proceeds of approximately $702,000. However, as of December 31, 2006, none
      of
      the outstanding warrants or options was in-the-money. No assurance can be made
      that any or all of the warrants or options will ever be exercised. We will
      need
      to raise additional capital in the financial markets to fund our ongoing
      exploration activities and conduct ongoing operations.




The
      balance of convertible debt owed by Trend at December 31, 2006, is as
      follows:




**Principal
                Amounts**
            
            **Maturity
                Date**
            
            **Interest
                Rate**$
            940,638
            
            
            August
                2008
            
            
            8%$
            779,184
            
            
            January
                to July 2008
            
            
            Prime
                plus 3%$
            895,313
            
            
            June
                2009
            
            
            10%Total
            
            $
            2,615,135




**ITEM
      3.**  **CONTROLS
      AND PROCEDURES** .




(a)
      Evaluation of disclosure controls and procedures.




Within
      the 90 days prior to the filing of this Quarterly Report on Form 10-QSB (the
      “Evaluation Date”), the Company carried out an evaluation, under the supervision
      and with the participation of its management, including its Interim Chief
      Executive Officer and its Chief Financial Officer, of the effectiveness of
      the
      design and operation of the Company’s disclosure controls and procedures (as
      defined in Rules 13a-14(c) and 15d-14(c) under the Exchange Act). Based upon
      that evaluation, the Company’s Chief Executive Officer and its Chief Financial
      Officer concluded that the Company’s disclosure controls and procedures are not
      effective to ensure that material information required to be disclosed by it
      in
      the reports that it files or submits under the Exchange Act is recorded,
      processed, summarized and reported within the time periods specified in the
      Securities and Exchange Commission rules and forms.




17




It
      should
      be noted, that the design of any system of controls is based in part upon
      certain assumptions about the likelihood of future events, and there can be
      no
      assurance that any design will succeed in achieving its stated goals under
      all
      potential future conditions, regardless of how remote.




(b)
      Changes in internal controls.




During
      the fiscal quarter ended December 31, 2006, t here
      have
      been no changes to the Company’s internal controls over financial reporting that
      has materially affected or is reasonably likely to materially affect the
      Company’s internal controls over financial reporting.




18




**PART
      II - OTHER INFORMATION**




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




During
      the quarter ended December 31, 2006, we issued an aggregate of 5,923,887 shares
      of common stock to accredited investors as payment of interest and principal
      on
      promissory notes outstanding. We relied on the exemption from registration
      found
      in Section 4(2) of the Securities Act in connection with this
      issuance.




In
      October 2006, we issued 40,000 shares to a Director/Officer in lieu of cash
      compensation.




In
      December 2006, we issued 142,857 shares pursuant to a joint venture agreement
      with Aurora. We relied on the exemption from registration found in Section
      4(2)
      of the Securities Act in connection with this issuance.




Each
      investor involved in the above transactions represented to us that they were
      an
      accredited investor.




All
      shares issued in connection with the above described events were issued to
      existing stockholders or individuals or entities previously known to us. At
      the
      time of each issuance, Trend was not aware of any such investor having any
      current intent to resell Trend’s stock.




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




A
      special
      meeting of stockholders was held on December 22, 2006, for the purposes of
      approving our Amended and Restated Certificate of Incorporation primarily for
      the purpose of (i) increasing our authorized common stock to 250,000,000 shares
      and (ii) deleting Section 4.4 of the Company’s Certificate of Incorporation,
      which would undesignate the rights, preferences and privileges of the Series
      A
      Preferred Stock. Proxies for the meeting were solicited pursuant to Section
      14(a) of the Securities Exchange Act of 1934, as amended, and there was no
      solicitation in opposition of management’s solicitations. Stockholders passed
      the proposal. The final vote on the proposal was recorded as
      follows:





Proposal
      1 :





To
      approve our Amended and Restated Certificate of Incorporation primarily for
      the
      purpose of (i) increasing our authorized common stock to 250,000,000 shares
      and
      (ii) deleting Section 4.4 of the Company’s Certificate of Incorporation, which
      would undesignate the rights, preferences and privileges of the Series A
      Preferred Stock.





“For”
            
            “Against”
            
            “Abstain”24,974,732
            
            1,621,146
            
            306,567




**ITEM
      6. EXHIBITS** **.**




**Exhibit**
              
              **Description**31.1
              
              Certification
                  Required Under Section 302 of Sarbanes-Oxley Act of
                  200231.2
              
              Certification
                  Required Under Section 302 of Sarbanes-Oxley Act of
                  200232.1
              
              Certification
                  Required Under Section 906 of Sarbanes-Oxley Act of
                  200232.2
              
              Certification
                  Required Under Section 906 of Sarbanes-Oxley Act of
                  2002




19




**SIGNATURES**




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




**TREND
                MINING COMPANY**Date:
                February 20, 2007
            By:
            /s/
              Ishiung WuIshiung
                WuInterim
                President and Chief Executive Officer
                (Principal
                  Executive Officer)





By:
            /s/
              John
              P. RyanJohn
                P. RyanTreasurer
                and Chief Financial Officer
                (Principal
                  Financial Officer)


20