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 March 31, 2007





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 ý No
ྑ




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





The
      number of shares of common stock, par value $0.01 per share, outstanding as
      of
      June 1, 2007: 55,969,035 **** shares





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











**PART
                I - FINANCIAL INFORMATION**ITEM
                1.
            FINANCIAL
                STATEMENTSBalance
                Sheets
            2Statements
                of Operations
            4Statement
                of Stockholders’ Equity (Deficit)
            5Statements
                of Cash Flows
            6Notes
                to the Financial Statements
            8ITEM
                2.
            MANAGEMENT’S
                DISCUSSION AND ANALYSIS ORPLAN
                OF OPERATION
            16ITEM
                3.
            CONTROLS
                AND PROCEDURES
            19**PART
                II - OTHER INFORMATION**ITEM
                1.
            LEGAL
                PROCEEDINGS
            21ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY SECURITIES ANDUSE
                OF PROCEEDS
            21ITEM
                5.
            OTHER
                INFORMATION
            21ITEM
                6.
            EXHIBITS
            21





i


**PART
      I - FINANCIAL INFORMATION**




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




**TREND
                MINING COMPANY**
              **(An
                Exploration Stage Company)**
              **BALANCE
                SHEETS**March
                31,
            
            September
                30,2007
            
            2006**ASSETS**CURRENT
                ASSETSCash
            
            $
            94,380
            
            $
            390,680Accounts
                receivable
            
            
            14,114
            
            
            35,291Prepaid
                expenses
            
            
            9,000
            
            
            -Total
                Current Assets
            
            
            117,494
            
            
            425,971MINERAL
                PROPERTIES
            
            
            -
            
            
            -PROPERTY
                AND EQUIPMENT, net of depreciation
            
            
            8,710
            
            
            10,853OTHER
                ASSETSAvailable
                for sale securities
            
            
            196,934
            
            
            78,625Reclamation
                bonds
            
            
            -
            
            
            7,720TOTAL
                ASSETS
            
            $
            323,138
            
            $
            523,169**LIABILITIES
                AND STOCKHOLDERS' DEFICIT**CURRENT
                LIABILITIESAccounts
                payable
            
            $
            79,917
            
            $
            65,174Accounts
                payable, related parties
            
            
            15,000
            
            
            15,000Accrued
                expenses
            
            
            20,000
            
            
            2,468Interest
                payable, convertible debt
            
            
            122,786
            
            
            416,645Current
                portion of long-term convertible debt
            
            
            570,116
            
            
            215,259Total
                Current Liabilities
            
            
            807,819
            
            
            714,546LONG-TERM
                CONVERTIBLE DEBT, net of current portion
            
            
            1,297,270
            
            
            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;55,710,637
                and 48,975,804 shares issued and outstanding,respectively
            
            
            557,106
            
            
            489,758Additional
                paid-in capital
            
            
            13,506,708
            
            
            12,909,764Accumulated
                other comprehensive income
            
            
            154,434
            
            
            36,125Accumulated
                deficit prior to exploration stage
            
            
            (558,504
            )
            
            (558,504
            )






2




Accumulated
                deficit during exploration stage
            
            
            (15,441,695
            )
            
            (14,565,727
            )Total
                Stockholders' Deficit
            
            
            (1,781,951
            )
            
            (1,688,584
            )TOTAL
                LIABILITIES AND STOCKHOLDERS' DEFICIT
            
            $
            323,138
            
            $
            523,169





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




3


**TREND
                    MINING COMPANY**
                  **(An
                    Exploration Stage Company)**
                  **STATEMENTS
                    OF OPERATIONS AND COMPREHENSIVE LOSS**Period
                    fromOctober
                    1, 1996(Inception
                    ofThree
                    Months Ended
                
                Six
                    Months Ended
                
                Exploration
                    Stage)March
                    31,
                
                March
                    31,
                
                March
                    31
                
                March
                    31,
                
                to
                    March 31,2007
                
                2006
                
                2007
                
                2006
                
                2007ROYALTY
                    REVENUES
                
                $
                -
                
                $
                -
                
                $
                91,268
                
                $
                -
                
                $
                260,666EXPENSESExploration
                    expense
                
                
                6,412
                
                
                30,640
                
                
                41,927
                
                
                37,692
                
                
                3,331,639General
                    and administrative
                
                
                46,077
                
                
                70,842
                
                
                159,045
                
                
                130,301
                
                
                3,560,893Officers
                    and directors compensation
                
                
                23,250
                
                
                44,500
                
                
                81,303
                
                
                185,438
                
                
                2,476,849Legal
                    and professional
                
                
                46,968
                
                
                153,235
                
                
                139,453
                
                
                320,725
                
                
                2,167,027Depreciation
                
                
                1,600
                
                
                719
                
                
                2,143
                
                
                1,409
                
                
                60,308Total
                    Expenses
                
                
                124,307
                
                
                299,936
                
                
                423,871
                
                
                675,565
                
                
                11,596,716OPERATING
                    LOSS
                
                
                (124,307
                )
                
                (299,936
                )
                
                (332,603
                )
                
                (675,565
                )
                
                (11,336,050
                )OTHER
                    INCOME (EXPENSE)Dividend
                    and interest income
                
                
                2,036
                
                
                3,554
                
                
                6,266
                
                
                6,920
                
                
                36,149Settlement
                    expense
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                (26,250
                )Gain
                    (loss) on disposition and impairment of assets
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                (105,861
                )Gain
                    (loss) on investment sales
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                (63,813
                )Financing
                    expense
                
                
                (117,356
                )
                
                (123,498
                )
                
                (430,756
                )
                
                (231,975
                )
                
                (3,745,519
                )Interest
                    expense
                
                
                (60,512
                )
                
                (79,237
                )
                
                (123,133
                )
                
                (145,401
                )
                
                (912,074
                )Other
                    income (loss)
                
                
                -
                
                
                (167
                )
                
                4,258
                
                
                (167
                )
                
                33,762Forgiveness
                    of debt
                
                
                -
                
                
                -
                
                
                -
                
                
                48,000
                
                
                677,961Total
                    Other Income (Expense)
                
                
                (175,832
                )
                
                (199,348
                )
                
                (543,365
                )
                
                (322,623
                )
                
                (4,105,645
                )LOSS
                    BEFORE INCOME TAXES
                
                
                (300,139
                )
                
                (499,284
                )
                
                (875,968
                )
                
                (998,188
                )
                
                (15,441,695
                )INCOME
                    TAXES
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                -NET
                    LOSS
                
                
                (300,139
                )
                
                (499,284
                )
                
                (875,968
                )
                
                (998,188
                )
                
                (15,441,695
                )OTHER
                    COMPREHENSIVE INCOME (LOSS)Unrealized
                    gain on available for sale securities
                
                
                44,997
                
                
                -
                
                
                118,309
                
                
                -
                
                
                154,434COMPREHENSIVE
                    LOSS
                
                $
                (255,142
                )
                $
                (499,284
                )
                $
                (757,659
                )
                $
                (988,188
                )
                $
                (15,287,261
                )BASIC
                    AND DILUTED NET LOSS PER SHARE
                
                $
                (0.00
                )
                $
                (0.01
                )
                $
                (0.01
                )
                $
                (0.03
                )WEIGHTED
                    AVERAGE NUMBEROF
                    COMMON SHARES OUTSTANDING
                
                
                55,465,095
                
                
                40,236,719
                
                
                54,542,799
                
                
                39,414,850





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




4


**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
            
            
            5,730,438
            
            
            -
            
            
            -
            
            
            57,304
            
            
            511,975
            
            
            -
            
            
            -
            
            
            569,279-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
            
            
            
            
            
            
            
            
            20,000-for
                compensation
            
            
            1/31/2007
            
            
            0.110
            
            
            59,925
            
            
            
            
            
            
            
            
            595
            
            
            4,640
            
            
            
            
            
            
            
            
            5,235-for
                compensation
            
            
            3/1/2007
            
            
            0.112
            
            
            57,983
            
            
            
            
            
            
            
            
            580
            
            
            4,640
            
            
            
            
            
            
            
            
            5,195-for
                compensation
            
            
            3/1/2007
            
            
            0.090
            
            
            61,113
            
            
            
            
            
            
            
            
            611
            
            
            4,865
            
            
            
            
            
            
            
            
            5,476-for
                compensation
            
            
            3/31/2007
            
            
            0.080
            
            
            64,453
            
            
            
            
            
            
            
            
            645
            
            
            4,511
            
            
            
            
            
            
            
            
            5,156Compensation
                costs recognized for options
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            5,845
            
            
            -
            
            
            -
            
            
            5,845Unrealized
                change in market value of available for sale securities
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            118,309
            
            
            118,309Options
                forfeited
            
            
            
            
            
            
            
            
            -
            
            
            (150,000
            )
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Net
                loss
            
            
            
            
            
            
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (875,968
            )
            
            -
            
            
            (875,968
            )Balance,
                December 31, 2006
            
            
            
            
            
            
            
            
            55,710,637
            
            
            1,975,000
            
            
            19,513,175
            
            $
            557,106
            
            $
            13,506,708
            
            $
            (16,000,199
            )
            $
            154,434
            
            $
            (1,781,951
            )





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




5


**TREND
                  MINING COMPANY**
                **(An
                  Exploration Stage Company)**
                **STATEMENTS
                  OF CASH FLOWS**Period
                  fromOctober
                  1, 1996(Inception
                  ofSix
                  Months Ended
              
              Six
                  Months Ended
              
              Exploration
                  Stage)March
                  31, 2007
              
              March
                  31, 2006
              
              to
                  March 31,(unaudited)
              
              (unaudited)
              
              2007
                  (unaudited)**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  loss
              
              $
              (875,968
              )
              $
              (998,188
              )
              $
              (15,441,695
              )Adjustments
                  to reconcile net loss to net cash used by operating
                  activities:Depreciation
              
              
              2,143
              
              
              1,409
              
              
              60,308Amortization
                  of debt discount
              
              
              430,756
              
              
              216,954
              
              
              1,854,764Gain
                  on forgiveness of debt
              
              
              -
              
              
              (48,000
              )
              
              (249,581
              )Loss
                  on investment sales
              
              
              -
              
              
              -
              
              
              68,969Loss
                  (gain) on disposition and impairment of assets
              
              
              -
              
              
              -
              
              
              105,861Interest
                  expense forgiven by related parties
              
              
              -
              
              
              -
              
              
              20,848Common
                  stock issued for servicesand
                  financing expenses
              
              
              20,000
              
              
              20,400
              
              
              1,285,171Common
                  stock issued for payables and accrued expenses
              
              
              -
              
              
              -
              
              
              219,656Common
                  stock and options issued as compensation
              
              
              9,845
              
              
              90,000
              
              
              1,288,340Stock
                  options and warrants issued ormodified
                  for financing expense
              
              
              -
              
              
              -
              
              
              1,488,778Common
                  stock issued for investments
              
              
              -
              
              
              -
              
              
              93,168Common
                  stock and warrants issued to acquire mineralproperty
                  options
              
              
              -
              
              
              -
              
              
              1,114,873Common
                  stock issued for payment of interest
              
              
              358,611
              
              
              (14,681
              )
              
              510,339Stock
                  options and warrants issued for consulting fees
              
              
              -
              
              
              -
              
              
              185,289Common
                  stock issued for incentive fees
              
              
              -
              
              
              -
              
              
              21,544Investment
                  traded for services
              
              
              -
              
              
              -
              
              
              45,939Changes
                  in assets and liabilities:Prepaid
                  expenses
              
              
              (9,000
              )
              
              4,091
              
              
              (5,195
              )Accounts
                  receivable
              
              
              21,177
              
              
              1,102,003
              
              
              (56,614
              )Accounts
                  payable
              
              
              14,743
              
              
              (256,399
              )
              
              285,509Accounts
                  payable, related party
              
              
              -
              
              
              
              
              
              15,000Accrued
                  expenses
              
              
              17,532
              
              
              (11,856
              )
              
              (54,305
              )Reclamation
                  bond
              
              
              7,720
              
              
              5,500
              
              
              -Interest
                  payable
              
              
              (293,859
              )
              
              142,248
              
              
              4,629Net
                  cash used by operating activities
              
              
              (296,300
              )
              
              253,481
              
              
              (7,138,405
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES:**Proceeds
                  from sale of equipment
              
              
              -
              
              
              -
              
              
              37,626Purchase
                  of fixed assets
              
              
              -
              
              
              (807
              )
              
              (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
              
              
              -
              
              
              (807
              )
              
              253,382**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**Payments
                  on notes payable and short-term borrowings
              
              
              -
              
              
              (360,000
              )
              
              (692,336
              )Payments
                  on convertible debt
              
              
              -
              
              
              
              
              
              (472,629
              )Proceeds
                  from internal securities sale
              
              
              -
              
              
              -
              
              
              210,194
  6
  
 **TREND
                  MINING COMPANY**
                **(An
                  Exploration Stage Company)**
                **STATEMENTS
                  OF CASH FLOWS**Period
                  fromOctober
                  1, 1996(Inception
                  ofSix
                  Months Ended
              
              Six
                  Months Ended
              
              Exploration
                  Stage)March
                  31, 2007
              
              March
                  31, 2006
              
              to
                  March 31,(unaudited)
              
              (unaudited)
              
              2007
                  (unaudited)Proceeds
                  from sale of warrants
              
              
              -
              
              
              -
              
              
              10,000Proceeds
                  from notes payable and short-term borrowings
              
              
              -
              
              
              -
              
              
              1,111,300Proceeds
                  from convertible debt
              
              
              -
              
              
              -
              
              
              4,035,857Proceeds
                  from sale of common stockand
                  exercise of options
              
              
              -
              
              
              150,000
              
              
              2,843,151Financing
                  fees
              
              
              -
              
              
              -
              
              
              (293,341
              )Issuance
                  of penalty shares
              
              
              -
              
              
              -
              
              
              223,600Net
                  cash provided by financing activities
              
              
              -
              
              
              (210,000
              )
              
              6,975,796**NET
                  INCREASE (DECREASE) IN CASH**
              
              
              (296,300
              )
              
              42,674
              
              
              90,773**CASH,
                  BEGINNING OF PERIOD**
              
              
              390,680
              
              
              64,391
              
              
              3,607**CASH,
                  END OF PERIOD**
              
              $
              94,380
              
              $
              107,065
              
              $
              94,380**SUPPLEMENTAL
                  CASH FLOW INFORMATION:**Interest
                  paid
              
              $
              58,381
              
              $
              -
              
              $
              -Income
                  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 financing fees
              
              $
              -
              
              $
              -
              
              $
              45,000Common
                  stock issued for payment of convertible debt
              
              $
              275,836
              
              $
              54,010
              
              $
              1,059,935Beneficial
                  conversion rights
              
              $
              -
              
              $
              -
              
              $
              1,081,260Deferred
                  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
              
              $
              -
              
              $
              -
              
              $
              4,500





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


7




**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 Hilton Head,
        SC.
        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 and six months ended March 31, 2007, 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 March 31, 2007, the Company
        has
        limited cash, has negative working capital, incurred a net loss of $875,968
        for
        the six months then ended, and has an exploration stage accumulated deficit
        of
        $15,441,695. 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.
  8
  **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
        March
        31, 2007, 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 the issued shares of capital stock in DMC Cayman, Inc., a Cayman
        Islands
        company (“DMC Cayman”). DMC Cayman indirectly owned 100% of the issued shares of
        capital stock of Compania Minera Dayton S.A., a Chilean corporation (“CMD”),
        that owns and operates the Andacollo gold mine in Chile. On September 20,
        2005,
        Trend received funding for the acquisition through a separate group of
        investors, based on a commitment from Trend to transfer to the investor group
        70% of the shares of DMC Cayman.
 
 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.
 
 However,
        the Company has been notified by the owners of the Andacolla Gold Mine Project
        that they were challenging the rights of the Company to continue to receive
        royalties. The owners ceased paying the royalties and informed the Company
        that
        they do not intend to pay further royalties. The Company intends to vigorously
        contest the position taken by the owners and is considering all its options
        in
        defending its contractual rights to receive royalties. The Company did not
        receive any royalties during the quarter ended March 31, 2007, and pending
        resolution of the dispute, has not accrued a receivable for any such
        royalties.
 
  9
  **TREND
        MINING COMPANY**
 **(AN
        EXPLORATION STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 ****
 
 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.
 
 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 and 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 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 $400,472 on qualified exploration
        expenditures. The Company was unable to 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.
 
  10
  **TREND
        MINING COMPANY**
 **(AN
        EXPLORATION STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 ****
 
 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.
 
 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.
 
 Peter
        Lake, Saskatchewan, Canada
 The
        Company holds 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. The claims are owned by Consolidated
        Goldfields Corporation which has offices in Reno, Nevada and is conducting
        underground and surface sampling at the project as of the date of this
        report..
 
  11
  **TREND
        MINING COMPANY**
 **(AN
        EXPLORATION STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 ****
 
 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.
 
 **NOTE
        4 - CONVERTIBLE DEBT**
 
 The
        Company’s convertible debt at March 31, 207 and September 30, 2006 consists of
        the following:
 
 March
                  31,
                2007
              
              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 28, 2008,
                principal
                  and interest payable monthly
              
              
              754,184
              
              
              885,4902006
                  Convertible Debt:
                Notes
                  payable, interest at 10%, due June 13, 2009,
                principal
                  and interest payable monthly beginning
                October
                  2006
              
              
              880,469
              
              
              1,025,000Subtotal
              
              
              2,575,291
              
              
              2,851,128Unamortized
                  discounts
              
              
              (707,905
              )
              
              (1,138,662
              )Total
              
              
              1,867,386
              
              
              1,712,466Less
                  current maturities
              
              
              (570,116
              )
              
              (215,259
              )Convertible
                  debt, net of current portion
              
              $
              1,297,270
              
              $
              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.
  12
  **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 March 31, 2007:
 
 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
 
  13
  **TREND
        MINING COMPANY**
 **(AN
        EXPLORATION STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 ****
 
 *
        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.
 
 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 March 31, 2007:
 Number
                  of Shares
              
              Weighted
                  Average
                Exercise
                  PriceOutstanding
                  at September 30, 2006
              
              
              2,125,000
              
              $
              0.33Granted
              
              
              —
              
              
              —Exercised
              
              
              —
              
              
              —Forfeited
              
              
              (150,000)
              
              
              0.30Outstanding
                  at March 31, 2007
              
              
              1,975,000
              
              $
              0.33Exercisable
                  at March 31, 2007
              
              
              1,975,000
              
              $
              0.33
 
 **NOTE
        6 - 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.
 
 **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 $624,000 by December 31, 2007 and
        $500,000 in each of the following two years.
 
 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.
  14
  **TREND
        MINING COMPANY**
 **(AN
        EXPLORATION STAGE COMPANY)**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 ****
 
 Employment
        Agreements
 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 of
        which shares are or were most recently sold by the Company.
 
 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 March 31, 2007 is approximately $41,300 related to
        this
        judgment.
    15
  **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%*
  Trend
        has
        been notified by the owners of the Andacolla Gold Mine Project located in
        Chile
        that they were challenging the rights of Trend to continue to receive royalties.
        The owners ceased paying the royalties and informed Trend that they do not
        intend to pay further royalties. Trend intends to vigorously contest the
        position taken by the owners and is considering all its options in defending
        its
        contractual rights to receive royalties. Trend did not receive any royalties
        during the quarter ended March 31, 2007, and pending resolution of the dispute,
        has not accrued a receivable for any such royalties.
 
  16
  **RESULTS
        OF OPERATIONS**
 
 **Comparison
        of three months ended March 31, 2007 to three months ended March 31,
        2006**
 
 We
        recorded a comprehensive loss of $255,142, or $.00 per share, on revenues
        of $0
        in the three months ended March 31, 2007. This compares to a net loss of
        $499,284, or $0.01 per share in the same period of 2006 when there also 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 Company
        did
        not receive any royalties during the quarter ended March 31, 2007, and cannot
        anticipate receiving any future royalties until our dispute with the mine
        owners
        is resolved.
 
 Exploration
        expenses were $6,412 in the three months ended March 31, 2007 as compared
        to
        $30,640 in 2006. Activity in 2007 related to consultants working on the
        evaluation of Stillwater data, whereas during the same period in 2006, activity
        was higher due to a high tempo of field activity in the previous quarter
        ended
        September 30, 2006 and which encompassed the exploratory drilling program
        at
        Stillwater.
 
 General
        and Administrative expenses were $46,077 in 2007 as compared to $70,842 in
        2006
        and were higher in 2007 due to taxes paid on the Andacollo royalty as well
        as to
        advisory fees paid to the CPM Group.
 
 Officers
        and directors compensation was $23,250 for the quarter ended March 31, 2007
        as
        compared to $44,500 in the same period of 2006. The lower 2007 amount was
        primarily due to the January 31, 2007 resignation of Thomas Loucks, our then
        President and CEO.
 
 Legal
        and
        professional fees were $46,968 in 2007 compared to $153,235 in 2006. This
        decrease was because of less activity regarding the filing of registration
        statements and property acquisition activity.
 
 Dividend
        and interest income of $2,036 was slightly lower due to lower money market
        interest earned in 2007 on lower cash balances as compared to 2006.
 
 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. Interest expense charges of $60,512
        in 2007
        compared to $79,237 in 2006 were slightly lower due to a reduction in the
        overall corporate debt
 
 The
        net
        loss of $300,139 in the quarter ended March 31, 2007 is compared to the net
        loss
        of $499,284 in the same period of 2006. The decrease was primarily due to
        the
        reduced expenses discussed above. Trend recognized an unrealized gain on
        available for sale securities of $44,997 in the quarter ended March 31, 2007.
        This unrealized gain represents market appreciation during the quarter on
        Trend’s investment in two Canadian entities, Nuinsco Resources Limited and
        Victory Nickel Inc.
 
 **Comparison
        of six months ended March 31, 2007 to six months ended March 31,
        2006**
 
 We
        recorded a comprehensive loss of $757,659, or $.01 per share, on revenues
        of
        $91,268 in the six months ended March 31, 2007. This compares to a net loss
        of
        $988,188, or $0.03 per share in the same period of 2006 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 Company
        did
        not receive any royalties during the quarter ended March 31, 2007, and cannot
        anticipate receiving any future royalties until our dispute with the mine
        owners
        is resolved.
 
 Exploration
        expenses were $41,927 in the six months ended March 31, 2007 as compared
        to
        $37,692 in the same period in 2006. General and Administrative expenses were
        $159,045 in the six months ended 2007 as compared to $130,301 in 2006. The
        increase in general and administrative expenses in 2007 was due to taxes
        paid on
        the Andacollo royalty as well as to advisory fees paid to the CPM Group.
 
  17
  Officers
        and directors compensation was $185,438 for the six months ended March 31,
        2006
        as compared to $81,303 in the same period of 2007. The lower 2007 amount
        was
        primarily due to the January 31, 2007 resignation of Thomas Loucks, our then
        President and CEO.
 
 Legal
        and
        professional fees were $139,453 for the six months ended March 31, 2007 compared
        to $320,725 for the six months ended March 31, 2006. This decrease was because
        of less activity in 2007 regarding the filing of registration statements
        and
        property acquisition activity.
 
 Dividend
        and interest income of $6,266 was slightly lower due to lower money market
        interest earned in 2007 on lower cash balances as compared to 2006.
 
 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. These expenses were $430,756 in 2007
        as
        compared to $231,975 in 2006, the difference related to the effects of resetting
        the strike prices on various warrant instruments as the Company conducted
        financings at lower prices. Interest expense charges of $123,133 in the six
        months period of 2007 compared to $145,401 in the same period of 2006 were
        slightly lower due to a reduction in the overall corporate debt.
 
 Trend
        recognized an unrealized gain on available for sale securities of $118,309
        during the six months ended March 31, 2007. This unrealized gain represents
        market appreciation during the quarter on Trend’s investment in two Canadian
        entities, Nuinsco Resources Limited and Victory Nickel Inc.
 
 **LIQUIDITY
        & CAPITAL RESOURCES**
 
 ***Liquidity:***
 
 We
        currently have no source of cash receipts due to the dispute regarding our
        Andacollo royalty that was discussed above. Should that dispute be resolved
        in
        our favor, we would expect cash receipts of approximately $20,000 per month
        net
        of tax 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
        are presently evaluating the potential cost of defending our contractual
        rights
        to receive the Andacollo royalties. We will need to raise capital in the
        financial markets to fund our ongoing exploration activities and conduct
        ongoing
        operations.
 
 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 six months ended March 31, 2007, debenture holders converted $275,836
        of
        principal amounts to shares as compared to $54,010 of conversion in the same
        period of 2006.
 
 ***Summary
        of Cash Flows for Six Months ended March 31, 2007:***
 The
        Company’s cash and cash equivalents declined by an amount of $296,300during the
        six months ended March 31, 2007.
 
 ***Operating
        Activities:***
 Operations
        used $296,300 of cash during the six months ended March 31, 2007 as compared
        to
        $253,481 provided by operations in 2006. Cash was provided by operations
        in 2006
        primarily as a result of the sale of Andacollo Gold Mine property with the
        retained royalty discussed above.
 
 ***Investing
        Activities:***
 During
        the six months ended March 31, 2007 and 2006, there were no significant cash
        flows from Investing activities.
 
 ***Financing
        Activities:***
 During
        the six months ended March 31, 2007 there were no cash flows from Financing
        Activities, as compared to the six months ended March 31, 2006 in which 1.5
        million shares of common stock were issued in a private placement for $150,000
        and payments of $360,000 were made on notes payable.
 
  18
  ***Outlook:***
 
 Operations
 Due
        to
        the dispute regarding our Andacollo royalty, we cannot predict the amount
        of
        royalty payments that we may receive in the future. 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 next 12 months approximately $1,091,000 of principal will be due on our
        long-term convertible debt. We believe that all of the principal repayment
        and
        most of the related interest obligation will be paid by the issuance of common
        stock.
 
 At
        March
        31, 2007, 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 1,975,000 shares
        of
        common stock that, if exercised, would result in aggregate proceeds of
        approximately $657,000. However, as of March 31, 2007, 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 March 31, 2007, is as follows:
 **Principal
                  Amounts**
              
              **Maturity
                  Date**
              
              **Interest
                  Rate**$
              940,638
              
              
              August
                  2008
              
              
              8%$
              754,184
              
              
              January
                  2008
              
              
              Prime
                  plus 3%$
              880,469
              
              
              June
                  2009
              
              
              10%Total
              
              $
              2,575,291
  **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.
   19
  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.
  There
        was
        no change in our internal controls over financial reporting during the quarter
        ended March 31, 2007 that materially
        affected, or is reasonably likely to materially affect, our internal controls
        over financial reporting. However, our chief executive officer and only
        full-time employee, Thomas Loucks, resigned during the quarter ended March
        31,
        2007.
 
  20
  **PART
        II - OTHER INFORMATION**
  **ITEM
        1.**  **LEGAL
        PROCEEDINGS.**
  As
        part
        of the consideration for the sale by Trend of equity interest in DMC Cayman,
        Inc. ("DMC Cayman") to Oro Chile, LLC, a Colorado limited liability company
        ("Oro Chile") and David H. Russell, Susan T. Russell and David H. Russell
        III
        (collectively the "Russell Interests") dated December 2, 2005, each of Oro
        Chile
        and the Russell Interests agreed to pay to Trend a net smelter returns royalty
        (the "Royalty") on the production from the Andacollo Mine located in Chile
        (the
        "Mine"). The Mine is indirectly owned by DMC Cayman. Oro Chile and the Russell
        Interests paid the Royalty to Trend from the start of production of the Mine
        through December 31, 2007; however, Oro Chile and the Russell Interests have
        ceased paying the Royalty, and informed Trend that they have no current
        intention of making any further payments under the Royalty. Trend is exploring
        what legal remedies it has against Oro Chile and the Russell Interests based
        on
        this action.
 
 **ITEM
        2.**  **UNREGISTERED
        SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**
  During
        the quarter ended March 31, 2007, we issued an aggregate of 628,089 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.
  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
        5.**  **OTHER
        INFORMATION.**
  As
        part
        of the consideration for the sale by Trend of equity interest in DMC Cayman
        to
        Oro Chile and the Russell Interests dated December 2, 2005, each of Oro Chile
        and the Russell Interests agreed to pay to Trend the Royalty on the production
        from the Mine. The Mine is indirectly owned by DMC Cayman. Oro Chile and
        the
        Russell Interests paid the Royalty to Trend from the start of production
        of the
        Mine through December 31, 2007; however, Oro Chile and the Russell Interests
        have ceased paying the Royalty, and informed Trend that they have no current
        intention of making any further payments under the Royalty. Trend is exploring
        what legal remedies it has against Oro Chile and the Russell Interests based
        on
        this action.
  **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
  21
  **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:
        June 6, 2007
 
 
 By: /s/
        Ishiung Wu
 Ishiung
        Wu
 Interim
        President and Chief Executive Officer
 (Principal
        Executive Officer)
  
 By: /s/John
        P. Ryan
 John
        P.
        Ryan
 Treasurer
        and Chief Financial Officer
 (Principal
        Financial Officer)
 
   22