---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

(Mark One)

|[X]  | Quarterly report under Section 13 or
      15(d) of the Securities Exchange Act of 1934 
|---- | ----------------------------------------------------------------------------------------
|     | For
      the quarterly period ended: December 31, 2007.                                
|[  ] | Transition report under Section 13 or
      15(d) of the Securities Exchange Act of 1934
|     | For the transition period from_______ to _______ .                                      
|     | Commission file number: 000-52417                                                       

|DYNAMIC GOLD
      CORP.                                               
|-----------------------------------------------------------------------
|(Exact name of small business issuer as specified in its
      charter)

|NEVADA                                                               | Applied For                         
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification Number)

|506  675
      West Hastings Street, Vancouver, British Columbia V6B 1N2 Canada
|--------------------------------------------------------------------------------
|(Address of principal executive offices)                                        

|(604)
      488-0860       
|---------------------------
|(Issuers telephone number)

|None                                                                                    
|----------------------------------------------------------------------------------------
|(Former name, former address and former fiscal year, if
      changed since last report)

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

Yes [X]   No [  ]

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

Yes [X]   No [  ]

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: 9,515,000 Shares
of $0.001 par value Common Stock outstanding as of February 13,2008.

Transitional Small Business Disclosure Format Yes [  ] No
[X]

---

TABLE OF CONTENTS

PART 1  FINANCIAL INFORMATION

|ITEM 1  FINANCIAL STATEMENTS                                             | 3 
|------------------------------------------------------------------------- | --
|ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS
      OR PLAN OF OPERATION  | 19
|ITEM 3  CONTROLS AND
      PROCEDURES                                    | 22
|ITEM 3A(T)  CONTROLS AND PROCEDURES                                      | 23
|PART II  OTHER
      INFORMATION                                        
|ITEM 1  LEGAL PROCEEDINGS                                                | 23
|ITEM 2  UNREGISTERED SALES
      OF EQUITY SECURITES AND USE OF PROCEEDS | 23
|ITEM 3  DEFAULTS UPON SENIOR SECURITIES                                  | 23
|ITEM 4  SUBMISSION OF
      MATTERS TO A VOTE OF SECURITY HOLDERS        | 23
|ITEM 5  OTHER INFORMATION                                                | 23
|ITEM 6  EXHIBITS                                                         | 24

2

---

FORWARD-LOOKING STATEMENTS

This Form 10-QSB includes "forward-looking statements" within
the meaning of the "safe-harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are based on management's current
expectations and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements.

All statements other than historical facts included in this
Form, including without limitation, statements under "Plan of Operation",
regarding our financial position, business strategy, and plans and objectives of
management for the future operations, are forward-looking statements.

Although we believe that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Important factors that could cause
actual results to differ materially from our expectations include, but are not
limited to, market conditions, competition and the ability to successfully
complete financing.

PART 1  FINANCIAL INFORMATION

ITEM 1  FINANCIAL STATEMENTS

As used herein, the terms Company, our,, we, and us
refer to Dynamic Gold Corp., a Nevada corporation, unless otherwise indicated.
In the opinion of management, the accompanying unaudited financial statements
included in the Form 10-QSB reflect all adjustment (consisting only of normal
recurring accruals) necessary for a fair presentation of the results of
operations for the period presented. The results of operation for the periods
presented are not necessarily indicative of the results to be expected for the
full year.

3

---







|Dynamic Gold Corp.               
|---------------------------------
|(An Exploration Stage Company)   
|                                 
|Consolidated Financial Statements
|(Expressed in U.S. Dollars)      
|(Unaudited)                      
|31 December 2007                 





4

---

|Dynamic Gold Corp.            
|------------------------------
|(An Exploration Stage Company)
|Consolidated Balance Sheets   
|(Expressed in U.S. Dollars)   
|(Unaudited)                   

|                                                        |  | As at 31 |   |  | As at 30  |  
|------------------------------------------------------- |  | -------- | - |  | --------- | -
|                                                        |  | December |   |  | June 2007 |  
|                                                        |  | 2007     |   |  | (Audited) |  
|                                                        |  | $        |   |  | $         |  
|                                                        |  |          |   |  |           |  
|Assets                                                  |  |          |   |  |           |  
|                                                        |  |          |   |  |           |  
|Current                                                 |  |          |   |  |           |  
|Cash and cash equivalents                               |  | 17,923   |   |  | 6,653     |  
|                                                        |  |          |   |  |           |  
|                                                        |  |          |   |  |           |  
|Liabilities                                             |  |          |   |  |           |  
|                                                        |  |          |   |  |           |  
|Current                                                 |  |          |   |  |           |  
|Accounts payable and accrued liabilities (Note 5)       |  | 21,223   |   |  | 22,129    |  
|Due to related party (Note 6)                           |  | 49,932   |   |  | 30,732    |  
|                                                        |  |          |   |  |           |  
|                                                        |  | 71,155   |   |  | 52,861    |  
|                                                        |  |          |   |  |           |  
|Shareholders deficiency                                |  |          |   |  |           |  
|Capital stock(Note 7)                                   |  |          |   |  |           |  
|Authorized                                              |  |          |   |  |           |  
|75,000,000 shares, $0.001 par value                     |  |          |   |  |           |  
|Issued and outstanding                                  |  |          |   |  |           |  
|31 December 2007  9,515,000 common shares              |  |          |   |  |           |  
|30 June 2007  9,515,000
      common shares            |  | 9,515    |   |  | 9,515     |  
|Additional paid-in capital                              |  | 68,385   |   |  | 36,585    |  
|Deficit, accumulated during the
      exploration stage |  | (131,132 | ) |  | (92,308   | )
|                                                        |  |          |   |  |           |  
|                                                        |  | (53,232  | ) |  | (46,208   | )
|                                                        |  |          |   |  |           |  
|                                                        |  | 17,923   |   |  | 6,653     |  

Nature and Continuance of Operations(Note 1)

On behalf of the Board:

|/ s / Tim Coupland | Director | / s /
      Ann-Marie Cederholm | Director
|------------------ | -------- | ------------------------------- | --------

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

5

---

|Dynamic Gold Corp.                               
|-------------------------------------------------
|(An Exploration Stage Company)                   
|Consolidated Statements of Operations and Deficit
|(Expressed in U.S. Dollars)                      
|(Unaudited)                                      

|                                |  | For the period  |   |  |               |   |  |               |   |  |              |   |  |              |  
|------------------------------- |  | --------------- | - |  | ------------- | - |  | ------------- | - |  | ------------ | - |  | ------------ | -
|                                |  | from the date   |   |  |               |   |  |               |   |  |              |   |  |              |  
|                                |  | of inception on |   |  | For the three |   |  | For the three |   |  | For the six  |   |  | For the six  |  
|                                |  | 21 January      |   |  | month         |   |  | month         |   |  | month        |   |  | month        |  
|                                |  | 2004 to         |   |  | period ended  |   |  | period ended  |   |  | period ended |   |  | period ended |  
|                                |  | 31 December     |   |  | 31 December   |   |  | 31 December   |   |  | 31 December  |   |  | 31 December  |  
|                                |  | 2007            |   |  | 2007          |   |  | 2006          |   |  | 2007         |   |  | 2006         |  
|                                |  | $               |   |  | $             |   |  | $             |   |  | $            |   |  | $            |  
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Expenses                        |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Mineral property costs (Note 4) |  | 10,607          |   |  | -             |   |  | -             |   |  | -            |   |  | -            |  
|Advertising and promotion       |  | 668             |   |  | -             |   |  | -             |   |  | -            |   |  | -            |  
|Bank charges and interest       |  | 730             |   |  | 42            |   |  | 42            |   |  | 99           |   |  | 101          |  
|Filing and financing fees       |  | 7,847           |   |  | 485           |   |  | 654           |   |  | 1,229        |   |  | 654          |  
|Legal and accounting            |  | 63,306          |   |  | 1,680         |   |  | 4,357         |   |  | 5,543        |   |  | 6,357        |  
|Management fees                 |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|(Notes 8 and 10)                |  | 42,000          |   |  | 15,000        |   |  | -             |   |  | 30,000       |   |  | -            |  
|Office and miscellaneous        |  | 574             |   |  | -             |   |  | -             |   |  | 153          |   |  | -            |  
|Rent (Notes 8 and 10)           |  | 5,400           |   |  | 900           |   |  | -             |   |  | 1,800        |   |  | -            |  
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Net loss for the period         |  | (131,132        | ) |  | (18,107       | ) |  | (5,053        | ) |  | (38,824      | ) |  | (7,112       | )
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Deficit, accumulated            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|during the exploration          |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|stage, beginning of period      |  | -               |   |  | (113,025      | ) |  | (60,522       | ) |  | (92,308      | ) |  | (58,463      | )
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Deficit, accumulated            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|during the exploration          |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|stage, end of period            |  | (131,132        | ) |  | (131,132      | ) |  | (65,575       | ) |  | (131,132     | ) |  | (65,575      | )
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Basic and diluted loss per      |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|common share                    |  |                 |   |  | (0.01         | ) |  | (0.01         | ) |  | (0.01        | ) |  | (0.01        | )
|                                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Weighted average number         |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|of common shares                |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|outstanding                     |  |                 |   |  | 9,515,000     |   |  | 9,515,000     |   |  | 9,515,000    |   |  | 9,515,000    |  

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

6

---

|Dynamic Gold Corp.                   
|-------------------------------------
|(An Exploration Stage Company)       
|Consolidated Statements of Cash Flows
|(Expressed in U.S. Dollars)          
|(Unaudited)                          

|                                            |  | For the period  |   |  |               |   |  |               |   |  |              |   |  |              |  
|------------------------------------------- |  | --------------- | - |  | ------------- | - |  | ------------- | - |  | ------------ | - |  | ------------ | -
|                                            |  | from the date   |   |  |               |   |  |               |   |  |              |   |  |              |  
|                                            |  | of inception on |   |  | For the three |   |  | For the three |   |  | For the six  |   |  | For the six  |  
|                                            |  | 21 January      |   |  | month         |   |  | month         |   |  | month        |   |  | month        |  
|                                            |  | 2004 to         |   |  | period ended  |   |  | period ended  |   |  | period ended |   |  | period ended |  
|                                            |  | 31 December     |   |  | 31 December   |   |  | 31 December   |   |  | 31 December  |   |  | 31 December  |  
|                                            |  | 2007            |   |  | 2007          |   |  | 2006          |   |  | 2007         |   |  | 2006         |  
|                                            |  | $               |   |  | $             |   |  | $             |   |  | $            |   |  | $            |  
|                                            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Cash flows from operating activities        |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Net loss for the period                     |  | (131,132        | ) |  | (18,107       | ) |  | (5,053        | ) |  | (38,824      | ) |  | (7,112       | )
|Adjustments to reconcile loss
      to net  |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|cash used by operating activities           |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Contributions to
      capital by related   |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|party  expenses (Notes 8 and
      10)     |  | 47,400          |   |  | 15,900        |   |  | -             |   |  | 31,800       |   |  | -            |  
|Changes in operating assets and             |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|liabilities                                 |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Increase (decrease) in
      accounts       |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|payable and accrued liabilities             |  | 21,223          |   |  | (2,828        | ) |  | (2,619        | ) |  | (906         | ) |  | (619         | )
|Increase in loan payable                    |  | 49,932          |   |  | 19,200        |   |  | 10,000        |   |  | 19,200       |   |  | 10,000       |  
|                                            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|                                            |  | (12,577         | ) |  | 14,165        |   |  | 2,328         |   |  | 11,270       |   |  | 2,269        |  
|Cash flows from financing activity          |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Issuance of common shares for cash          |  | 30,500          |   |  | -             |   |  | -             |   |  | -            |   |  | -            |  
|                                            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Increase in cash and cash
      equivalents |  | 17,923          |   |  | 14,165        |   |  | 2,328         |   |  | 11,270       |   |  | 2,269        |  
|                                            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Cash and cash equivalents,                  |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|beginning of period                         |  | -               |   |  | 3,758         |   |  | 2,131         |   |  | 6,653        |   |  | 2,190        |  
|                                            |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|Cash and cash equivalents, end of           |  |                 |   |  |               |   |  |               |   |  |              |   |  |              |  
|period                                      |  | 17,923          |   |  | 17,923        |   |  | 4,459         |   |  | 17,923       |   |  | 4,459        |  

Supplemental Disclosures with Respect to Cash Flows(Note 10)

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

7

---

|Dynamic Gold Corp.                                                  
|--------------------------------------------------------------------
|(An Exploration Stage Company)                                      
|Consolidated Statements of Changes in Shareholders
      Deficiency
|(Expressed in U.S. Dollars)                                         
|(Unaudited)                                                         

|                                          |  |           |  |  |         |  |  |            |  |  | Deficit     |   |  |               |  
|----------------------------------------- |  | --------- |  |  | ------- |  |  | ---------- |  |  | ----------- | - |  | ------------- | -
|                                          |  |           |  |  |         |  |  |            |  |  | accumulated |   |  |               |  
|                                          |  | Number of |  |  |         |  |  | Additional |  |  | during the  |   |  | Total         |  
|                                          |  | shares    |  |  | Share   |  |  | paid-in    |  |  | exploration |   |  | shareholders |  
|                                          |  | issued    |  |  | capital |  |  | capital    |  |  | stage       |   |  | deficiency    |  
|Balance at 21 January
      2004          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|(inception)                               |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Common shares
      issued for cash       |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|($0.001 per share)                        |  | 7,500,000 |  |  | 7,500   |  |  | -          |  |  | -           |   |  | 7,500         |  
|Common shares
      issued for cash       |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|($0.01 per share)                         |  | 2,000,000 |  |  | 2,000   |  |  | 18,000     |  |  | -           |   |  | 20,000        |  
|Common shares
      issued for cash       |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|($0.20 per share)                         |  | 15,000    |  |  | 15      |  |  | 2,985      |  |  | -           |   |  | 3,000         |  
|Net loss for the
      year               |  | -         |  |  | -       |  |  | -          |  |  | (10,267     | ) |  | (10,267       | )
|                                          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Balance at 30 June
      2004             |  | 9,515,000 |  |  | 9,515   |  |  | 20,985     |  |  | (10,267     | ) |  | 20,233        |  
|Net loss for the year                     |  | -         |  |  | -       |  |  | -          |  |  | (26,040     | ) |  | (26,040       | )
|                                          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Balance at 30 June 2005                   |  | 9,515,000 |  |  | 9,515   |  |  | 20,985     |  |  | (36,307     | ) |  | (5,807        | )
|Net loss for the
      year               |  | -         |  |  | -       |  |  | -          |  |  | (22,156     | ) |  | (22,156       | )
|                                          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Balance at 30 June
      2006             |  | 9,515,000 |  |  | 9,515   |  |  | 20,985     |  |  | (58,463     | ) |  | (27,963       | )
|Contributions to capital by
      related |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|party  expenses                          |  | -         |  |  | -       |  |  | 15,600     |  |  | -           |   |  | 15,600        |  
|Net loss for the year                     |  | -         |  |  | -       |  |  | -          |  |  | (33,845     | ) |  | (33,845       | )
|                                          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Balance at 30 June 2007                   |  | 9,515,000 |  |  | 9,515   |  |  | 36,585     |  |  | (92,308     | ) |  | (46,208       | )
|Contributions to
      capital by related |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|party  expenses (Notes 8 and
      10)   |  | -         |  |  | -       |  |  | 31,800     |  |  | -           |   |  | 31,800        |  
|Net loss for the
      period             |  | -         |  |  | -       |  |  | -          |  |  | (38,824     | ) |  | (38,824       | )
|                                          |  |           |  |  |         |  |  |            |  |  |             |   |  |               |  
|Balance at 31 December
      2007         |  | 9,515,000 |  |  | 9,515   |  |  | 68,385     |  |  | (131,132    | ) |  | (53,232       | )

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

8

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

|1. | Nature and Continuance of Operations
|-- | ------------------------------------

Dynamic Gold Corp. (the Company) was
incorporated under the laws of the State of Nevada on 21 January 2004 and is in
the exploration stage.

The Company is in the business of
acquiring and exploring mineral properties. The recoverability of the amounts
expended by the Company on acquiring and exploring mineral properties is
dependent upon the existence of economically recoverable reserves, the ability
of the Company to complete the acquisition and/or development of the properties
and upon future profitable production.

The Companys financial statements as
at 31 December 2007 and for the six month period then ended have been prepared
on a going concern basis, which contemplates the realization of assets and the
settlement of liabilities and commitments in the normal course of business. The
Company has a loss of $38,824 for the six month period ended 31 December 2007
(31 December 2006 - $7,112, cumulative - $131,132) and has a working capital
deficit of $53,232 at 31 December 2007 (30 June 2007 - $46,208).

Management cannot provide assurance
that the Company will ultimately achieve profitable operations or become cash
flow positive, or raise additional debt and/or equity capital. Management
believes that the Companys capital resources should be adequate to continue
operating and maintaining its business strategy during fiscal 2008. However, if
the Company is unable to raise additional capital in the near future, due to the
Companys liquidity problems, management expects that the Company will need to
curtail operations, liquidate assets, seek additional capital on less favourable
terms and/or pursue other remedial measures. These financial statements do not
include any adjustments related to the recoverability and classification of
assets or the amounts and classification of liabilities that might be necessary
should the Company be unable to continue as a going concern.

At 31 December 2007, the Company had
suffered losses from exploration activities to date. Although management is
currently attempting to implement its business plan, and is seeking additional
sources of equity or debt financing, there is no assurance these activities will
be successful. Accordingly, the Company must rely on its president to perform
essential functions without compensation until a business operation can be
commenced. These factors raise substantial doubt about the ability of the
Company to continue as a going concern. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

|2. | Change in Accounting Policy
|-- | ---------------------------

Effective 30 June 2007, the Company
adopted, on a retroactive basis, the provisions of Financial Accounting
Standards Board (FASB) EITF 04-2 Whether Mineral Rights are Tangible or
Intangible Assets. EITF 04-2 establishes mineral rights as tangible assets,
whereby the aggregate carrying amount of such mineral rights should be reported
as a separate component of property, plant, and equipment. The retroactive
impacts of adopting EITF 04-2 had no impact on net loss or earnings per share
for the periods ended 31 December 2007 and 2006 and 30 June 2007 (Notes 3 and
4).

9

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

|3. | Significant Accounting Policies
|-- | -------------------------------

The following is a summary of
significant accounting policies used in the preparation of these financial
statements.

Basis of presentation

These financial statements have peen
prepared in accordance with accounting principles generally accepted in the
United States of America (GAAP) for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by GAAP for complete financial statements. In the opinion of management,
adjustments (consisting of normal recurring accruals) considered necessary for
fair presentation have been included. Operating results for the six month period
ended 31 December 2007 are not necessarily indicative of the results that may be
expected for the year ended 30 June 2008. For further information, refer to the
audited financial statements of the Company for the year ended 30 June 2007.

Principles of consolidation

These consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiary Dynamic
Gravel Holdings Ltd. (Dynamic Gravel), a company incorporated in the province
of Alberta on 21 November 2007. All significant inter-company balances and
transactions have been eliminated upon consolidation.

Cash and cash equivalents

Cash and cash equivalents include
highly liquid investments with original maturities of three months or less.

Mineral property costs

The Company is primarily engaged in the
acquisition, exploration and development of mineral properties.

Mineral property acquisition costs are
initially capitalized as tangible assets when purchased. At the end of each
fiscal quarter end, the Company assesses the carrying costs for impairment. If
proven and probable reserves are established for a property and it has been
determined that a mineral property can be economically developed, costs will be
amortized using the units-of-production method over the estimated life of the
probable reserve.

Mineral property exploration costs are
expensed as incurred.

10

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

Estimated future removal and site
restoration costs, when determinable are provided over the life of proven
reserves on a units-of-production basis. Costs, which include production
equipment removal and environmental remediation, are estimated each period by
management based on current regulations, actual expenses incurred, and
technology and industry standards. Any charge is included in exploration expense
or the provision for depletion and depreciation during the period and the actual
restoration expenditures are charged to the accumulated provision amounts as
incurred.

As of the date of these financial
statements, the Company has not established any proven or probable reserves on
its mineral properties and incurred only acquisition and exploration costs (Note
4).

Although the Company has taken steps to
verify title to mineral properties in which it has an interest, according to the
usual industry standards for the stage of exploration of such properties, these
procedures do not guarantee the Companys title. Such properties may be subject
to prior agreements or transfers and title may be affected by undetected
defects.

Impairment of long-lived assets

Long-lived assets are reviewed for
impairment whenever events or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Recoverability of these assets is
measured by comparison of its carrying amount to future undiscounted cash flows
the assets are expected to generate.

Environmental expenditures

The operations of the Company have
been, and may in the future, be affected from time to time, in varying degrees,
by changes in environmental regulations, including those for future reclamation
and site restoration costs. Both the likelihood of new regulations and their
overall effect upon the Company vary greatly and are not predictable. The
Companys policy is to meet or, if possible, surpass standards set by relevant
legislation, by application of technically proven and economically feasible
measures.

Environmental expenditures that relate
to ongoing environmental and reclamation programs are charged against earnings
as incurred or capitalized and amortized depending on their future economic
benefits. Estimated future reclamation and site restoration costs, when the
ultimate liability is reasonably determinable, are charged against earnings over
the estimated remaining life of the related business operation, net of expected
recoveries.

Foreign currency translation

The Companys functional and reporting
currency is in U.S. dollars. The financial statements of the Company are
translated to U.S. dollars in accordance with SFAS No. 52, Foreign Currency
Translation. Monetary assets and liabilities denominated in foreign
currencies are translated using the exchange rate prevailing at the balance
sheet date. Gains and losses arising on translation or settlement of foreign
currency denominated transactions or balances are included in the determination
of income. The Company has not, to the date of these financial statements,
entered into derivative instruments to offset the impact of foreign currency
fluctuations.

11

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

Use of estimates

The preparation of financial statements
in conformity with GAAP requires management to make estimates and assumptions
that affect the amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenditures during the reporting period. Actual results
could differ from these estimates.

Concentration of credit risk

The Companys financial instruments
that are exposed to concentrations of credit risk primarily consist of its cash
and related party payables. The Company places its cash and cash equivalents
with financial institutions of high credit worthiness. At times, its cash and
cash equivalents with a particular financial institution may exceed any
applicable government insurance limits. The Companys management also routinely
assesses the financial strength and credit worthiness of any parties to which it
extends funds and as such, it believes that any associated credit risk exposures
are limited.

Risks and uncertainties

The Company operates in the resource
exploration industry that is subject to significant risks and uncertainties,
including financial, operational, technological, and other risks associated with
operating a resource exploration business, including the potential risk of
business failure.

Financial instruments

The Companys financial instruments
consist of cash, prepaid expenses, accounts payable and accrued liabilities and
loan payable. The carrying value of the financial instruments is approximate
fair value due to their short term to maturity. Unless otherwise noted, it is
managements opinion that the Company is not exposed to significant interest,
currency or credit risk arising from these financial instruments.

Income taxes

Deferred income taxes are reported for
timing difference between items of income or expense reported in the financial
statements and those reported for income tax purposes in accordance with SFAS
No. 109, Accounting for Income Taxes, which requires the use of the
asset/liability method of accounting for income taxes. Deferred income taxes and
tax benefits are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, and for tax loss and credit
carry-forwards. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The Company
provides for deferred taxes for the estimated future tax effects attributable to
temporary differences and carry-forwards when realization is more likely than
not.

12

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

Basic and diluted loss per share

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

Comprehensive loss

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

Comparative figures

Certain comparative figures have been
adjusted to conform to the current years presentation.

Recent accounting pronouncements

In December 2007, the Financial
Accounting Standards Board (the FASB) issued SFAS No. 141(R), Business
Combinations. The objective of this Statement is to improve the relevance,
representational faithfulness, and comparability of the information that a
reporting entity provides in its financial reports about a business combination
and its effects. To accomplish that, this Statement establishes principles and
requirements for how the acquirer (a) recognizes and measures in its financial
statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree; (b) recognizes and measures the
goodwill acquired in the business combination or a gain from a bargain purchase;
and (c) determines what information to disclose to enable users of the financial
statements to evaluate the nature and financial effects of the business
combination.

This Statement applies to all
transactions or other events in which an entity (the acquirer) obtains control
of one or more businesses (the acquiree), including those sometimes referred to
as "true mergers" or "mergers of equals" and combinations achieved without the
transfer of consideration, for example, by contract alone or through the lapse
of minority veto rights. This Statement applies to all business entities,
including mutual entities that previously used the pooling-of-interests method
of accounting for some business combinations. It does not apply to (a) the
formation of a joint venture, (b) the acquisition of an asset or a group of
assets that does not constitute a business, (c) a combination between entities
or businesses under common control, (d) a combination between not-for-profit
organizations or the acquisition of a for-profit business by a not-for-profit
organization.

13

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

This Statement replaces SFAS No. 141,
Business Combinations. This Statement retains the fundamental
requirements in SFAS No. 141 that the acquisition method of accounting (which
SFAS No. 141 called the purchase method) be used for all business combinations
and for an acquirer to be identified for each business combination. This
Statement defines the acquirer as the entity that obtains control of one or more
businesses in the business combination and establishes the acquisition date as
the date that the acquirer achieves control. SFAS No. 141 did not define the
acquiree, although it included guidance on identifying the acquiree, as does
this Statement. This Statement's scope is broader than that of SFAS No. 141,
which applied only to business combinations in which control was obtained by
transferring consideration. By applying the same method of accounting - the
acquisition method - to all transactions and other events in which one entity
obtains control over one or more other businesses, this Statement improves the
comparability of the information about business combinations provided in
financial reports.

This Statement applies prospectively to
business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after 15 December
2008. An entity may not apply it before that date. The Company is currently
evaluating SFAS No. 141(R), and has not yet determined its potential impact on
its future results of operations or financial position.

In December 2007, the FASB issued SFAS
No. 160, Noncontrolling Interests in Consolidated Financial Statements - an
Amendment of ARB No. 51. A noncontrolling interest, sometimes called a
minority interest, is the portion of equity in a subsidiary not attributable,
directly or indirectly, to a parent. The objective of this Statement is to
improve the relevance, comparability, and transparency of the financial
information that a reporting entity provides in its consolidated financial
statements by establishing accounting and reporting standards that require (a)
the ownership interests in subsidiaries held by parties other than the parent be
clearly identified, labeled, and presented in the consolidated statement of
financial position within equity, but separate from the parent's equity, (b) the
amount of consolidated net income attributable to the parent and to the
noncontrolling interest be clearly identified and presented on the face of the
consolidated statement of income, (c) changes in a parent's ownership interest
while the parent retains its controlling financial interest in its subsidiary be
accounted for consistently. A parent's ownership interest in a subsidiary
changes if the parent purchases additional ownership interests in its subsidiary
or if the parent sells some of its ownership interests in its subsidiary. It
also changes if the subsidiary reacquires some of its ownership interests or the
subsidiary issues additional ownership interests. All of those transactions are
economically similar, and this Statement requires that they be accounted for
similarly, as equity transactions, (d) when a subsidiary is deconsolidated, any
retained noncontrolling equity investment in the former subsidiary be initially
measured at fair value. The gain or loss on the deconsolidation of the
subsidiary is measured using the fair value of any noncontrolling equity
investment rather than the carrying amount of that retained investment, (e)
entities provide sufficient disclosures that clearly identify and distinguish
between the interests of the parent and the interests of the noncontrolling
owners.

14

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

This Statement applies to all entities
that prepare consolidated financial statements, except not-for-profit
organizations, but will affect only those entities that have an outstanding
noncontrolling interest in one or more subsidiaries or that deconsolidate a
subsidiary. Not-for-profit organizations should continue to apply the guidance
in Accounting Research Bulletin No. 51, Consolidated Financial Statements,
before the amendments made by this Statement, and any other applicable
standards, until the Board issues interpretative guidance.

This Statement amends ARB 51 to
establish accounting and reporting standards for the noncontrolling interest in
a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated
financial statements. Before this Statement was issued, limited guidance existed
for reporting noncontrolling interests. As a result, considerable diversity in
practice existed. So-called minority interests were reported in the consolidated
statement of financial position as liabilities or in the mezzanine section
between liabilities and equity. This Statement improves comparability by
eliminating that diversity.

This Statement is effective for fiscal
years, and interim periods within those fiscal years, beginning on or after 15
December 2008. Earlier adoption is prohibited. The effective date of this
Statement is the same as that of the related Statement 141(R). This Statement
shall be applied prospectively as of the beginning of the fiscal year in which
this Statement is initially applied, except for the presentation and disclosure
requirements. The presentation and disclosure requirements shall be applied
retrospectively for all periods presented. The Company is currently evaluating
SFAS No. 160, and has not yet determined its potential impact on its future
results of operations or financial position.

|4. | Mineral Property
|-- | ----------------

During the year ended 30 June 2004, the
Company acquired a 100% undivided right, title and interest in and to the 24
claim units located in the Red Lake Mining District in the province of Ontario,
Canada (the Sobeski Lake Gold Property) for $3,500 cash. These claims expired
and were restaked during the year ended 30 June 2006 at a cost of $5,732. As a
result, the Sobeski Lake Gold Property comprises three mineral claims consisting
of 17 claim units.

During the six month period ended 31
December 2007, the Company elected to abandon the Sobeski Lake Gold Property as
it did not intend to do any further work on that property (Note 11).

|5. | Accounts Payable and Accrued Liabilities
|-- | ----------------------------------------

Accounts payable and accrued
liabilities are non-interest bearing, unsecured and have settlement dates within
one year.

15

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

|6. | Due to Related Party
|-- | --------------------

The balances due to related party is
non-interest bearing, unsecured and have settlement dates within one year.

As at 31 December 2007, the amount due
to related party consisted of $49,932 (30 June 2007 - $30,732) and consisted of
cash advances from an officer who is also a director and shareholder of the
Company.

|7. | Capital Stock
|-- | -------------

Authorized

The total authorized capital is
75,000,000 common shares with a par value of $0.001.

Issued and outstanding

The total issued and outstanding
capital stock is 9,515,000 common shares with a par value of $0.001 per common
share.

|8. | Related Party Transactions
|-- | --------------------------

During the six month period ended 31
December 2007, an officer and director of the Company made contributions to
capital for management fees in the amount of $30,000 (31 December 2006 - $Nil,
cumulative - $42,000) and for rent in the amount of $1,800 (31 December 2006 -
$Nil, cumulative - $5,400) (Note 10).

|9. | Income Taxes
|-- | ------------

The Company has losses carried forward
for income tax purposes to 31 December 2007. There are no current or deferred
tax expenses for the period ended 31 December 2007 due to the Companys loss
position. The Company has fully reserved for any benefits of these losses. The
deferred tax consequences of temporary differences in reporting items for
financial statement and income tax purposes are recognized, as appropriate.
Realization of the future tax benefits related to the deferred tax assets is
dependent on many factors, including the Companys ability to generate taxable
income within the net operating loss carry-forward period. Management has
considered these factors in reaching its conclusion as to the valuation
allowance for financial reporting purposes.

16

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

The provision for refundable federal
income tax consists of the following:

| |                                                     |  | For the six   |   |  | For the six   |  
| | --------------------------------------------------- |  | ------------- | - |  | ------------- | -
| |                                                     |  | month period  |   |  | month period  |  
| |                                                     |  | ended 31      |   |  | ended 31      |  
| |                                                     |  | December 2007 |   |  | December 2006 |  
| |                                                     |  | $             |   |  | $             |  
| |                                                     |  |               |   |  |               |  
| | Refundable federal tax asset attributable
      to: |  |               |   |  |               |  
| | Current operations                                  |  | 13,200        |   |  | 2,418         |  
| | Contributions to capital by related parties         |  | (10,812       | ) |  | -             |  
| | Less: Change in valuation allowance                 |  | (2,388        | ) |  | (2,418        | )
| |                                                     |  |               |   |  |               |  
| | Net refundable amount                               |  | -             |   |  | -             |  

The composition of the Companys
deferred tax assets as at 31 December 2007 and 30 June 2007 are as follows:

| |                                   |  | As at 31 |   |  | As at 30  |  
| | --------------------------------- |  | -------- | - |  | --------- | -
| |                                   |  | December |   |  | June 2007 |  
| |                                   |  | 2007     |   |  | (Audited) |  
| |                                   |  | $        |   |  | $         |  
| |                                   |  |          |   |  |           |  
| | Net operating loss carry-forward  |  | 131,132  |   |  | 92,308    |  
| |                                   |  |          |   |  |           |  
| | Statutory federal income tax rate |  | 34%      |   |  | 34%       |  
| | Contributed rent and services     |  | -8.81%   |   |  | -5.75%    |  
| | Effective income tax rate         |  | 0%       |   |  | 0%        |  
| |                                   |  |          |   |  |           |  
| | Deferred tax asset                |  | 28,469   |   |  | 26,081    |  
| | Less: Valuation allowance         |  | (28,469  | ) |  | (26,081   | )
| |                                   |  |          |   |  |           |  
| | Net deferred tax asset            |  | -        |   |  | -         |  

The potential income tax benefit of
these losses has been offset by a full valuation allowance.

As at 31 December 2007, the Company has
an unused net operating loss carry-forward balance of approximately $83,732 that
is available to offset future taxable income. This unused net operating loss
carry-forward balance expires in 2026.

17

---

|Dynamic Gold Corp.                            
|----------------------------------------------
|(An Exploration Stage Company)                
|Notes to the Consolidated Financial Statements
|(Expressed in U.S. Dollars)                   
|(Unaudited)                                   
|31 December
      2007                        

|10. | Supplemental Disclosures with Respect to Cash Flows
|--- | ---------------------------------------------------

| |                                                |  | For the period  |  |  |             |  |  |             | 
| | ---------------------------------------------- |  | --------------- |  |  | ----------- |  |  | ----------- | 
| |                                                |  | from the date   |  |  | For the six |  |  | For the six | 
| |                                                |  | of inception on |  |  | month       |  |  | month       | 
| |                                                |  | 21              |  |  | period      |  |  | period      | 
| |                                                |  | January 2004 to |  |  | ended 31    |  |  | ended 30    | 
| |                                                |  | 31 December     |  |  | December    |  |  | December    | 
| |                                                |  | 2007            |  |  | 2007        |  |  | 2006        | 
| |                                                |  | $               |  |  | $           |  |  | $           | 
| |                                                |  |                 |  |  |             |  |  |             | 
| | Cash paid during the period
      for interest |  | -               |  |  | -           |  |  | -           | 
| | Cash paid during the period for income         |  |                 |  |  |             |  |  |             | 
| | taxes                                          |  | -               |  |  | -           |  |  | -           | 

During the six month period ended 31
December 2007, an officer and director of the Company made contributions to
capital for management fees in the amount of $30,000 (31 December 2006 - $Nil,
cumulative - $42,000) and for rent in the amount of $1,800 (31 December 2006 -
$Nil, cumulative - $5,400) (Note8).

|11. | Subsequent events
|--- | -----------------

The following events occurred
subsequent to 31 December 2007:

| | i.   | In January 2008, the Company acquired, for a cost o $25,000, a 100%
      interest in two gravel claims called the Northern Gravel Claims and Super
      Mammoth Gravel Claims (the Super Mammonth) located at Lloyd Point in the
      east arm of Toba Inlet situated 50 kilometers east of Campbell River,
      British Columbia and 28 kilometers north of Powel River on the British
      Columbia mainland.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ii.  | On 8 January 2008, the Company borrowed $75,000 from an officer,
      director and shareholder of the Company. This promissory note payable
      bears interest at 10% per annum, is secured by a general agreement over
      all of the assets of the Company and is due on demand.                                                                                                                               
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | iii. | On 20 January 2008, the Company allowed the Sobeski Lake Gold Property
      claims to expire (Note 4).                                                                                                                                                                                                                                                                                                               

18

---

ITEM 2  MANAGEMENTS DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION

General

During the six month period ended
December 31, 2007 we elected to abandon the Sobeski Lake Gold property as it did
not intend to do any further work on the property. On January 20, 2008, the
Company allowed the Sobeski Lake Gold Property claims to expire.

On January 8, 2008, we acquired,
through our wholly owned subsidiary, a 100% interest in two gravel claims called
the Northern Gravel Claims and Super Mammoth Gravel Claims (the Super Mammoth
Gravel Project) situated on tidewater for $25,000. The Super Mammoth Gravel
Project consist of two mineral claim tenures that are approximately 124.1 each
hectares (ha) in size (total 248.2 ha). A detailed report used in obtaining
aggregate samples has been filed and accepted by the British Columbias Gold
commissioners office in September 2007. The claims are currently in good
standing until their respective anniversary dates which include November 6, 2014
(Northern Gravel Claim) and January 19, 2015 (Super Mammoth Claim).

The Super Mammoth Gravel Project is
located at Lloyd Point on the east arm of Toba Inlet situated 50 kilometers east
of Campbell River, British Columbia, Canada and 28 kilometers north of Powell
River on the British Columbia mainland. The existence of the Super Mammoth
gravel deposit has been identified by Lands and Water British Columbia Inc. and
has been the subject of numerous preliminary investigations over the years, with
the potential to host a year round future sand and gravel aggregate operation
with tidewater access that could supply growing demand for a range of raw
materials to both British Columbia, Washington State, California and other
United States and Pacific Rim coastal construction markets. The Super Mammoth
Gravel Project is situated between sea level to about 300 meters in elevation
that comprises a sorted accumulation of sand and gravel.

Plan of Operations

Our plan of operations for the twelve
months following the date of this report is to finalize a National Instruments
43-101 report on the Super Mammoth Gravel Project which will outline the first
phase of work. This phase will include geological data review and prospecting
and will take approximately two months to complete. This exploration will be
completed by a two-person crew, including a qualified geologist. We anticipate
that the program will cost approximately $35,000. To date, we have not commenced
exploration on the Super Mammoth Gravel Project.

In the next 12 months, we also
anticipate spending an additional $80,000 on administrative fees, including
professional fees payable in connection with the filing of this registration
statement and complying with reporting obligations. Total expenditures over the
next 12 months are therefore expected to be approximately $115,000.

Our cash reserves are not sufficient to
meet our obligations for the next twelve-month period. As a result, we will need
to seek additional funding in the near future. We currently do not have a
specific plan of how we will obtain such funding. However, we anticipate that
additional funding will be in the form of equity financing from the sale of our
common stock. As well, our management is prepared to provide us with short-term
loans, although no such arrangement has been made.

We cannot provide investors with any
assurance that we will be able to raise sufficient funding from the sale of our
common stock or through a loan from our directors to meet our obligations over
the next twelve months. We do not have any arrangements in place for any future
equity financing.

If we do not secure additional funding
for exploration expenditures, we may consider seeking an arrangement with a
joint venture partner that would provide the required funding in exchange for
receiving a part interest in the Super Mammoth Gravel Project. We have not
undertaken any efforts to locate a joint venture partner. There is no guarantee
that we will be able to locate a joint venture partner who will assist us in
funding exploration expenditures upon acceptable terms.

If we are unable to arrange additional
financing or find a joint venture partner for the Super Mammoth Gravel Project,
our business plan will fail and operations will cease.

19

---

Results of Operations for Period
Ending December 31, 2007

We have not earned any revenues from
our incorporation on January 21, 2004 to December 31, 2007. We have not
commenced the exploration stage of our business and can provide no assurance
that we will discover economic mineralization on the property.

The Companys net loss for the three
month period ended December 31, 2007 was $(18,107) compared to a net loss of
$(5,053) for the three month period ended December 31, 2006. The Companys net
loss for the six month period ended December 31, 2007 was $(38,824) compared to
a net loss of $(7,112) for the six month period ended December 31, 2006. The
increase in net loss for the six month period ended December 31, 2007 is mainly
attributed to legal and accounting fees, management fees and rent.

Legal and accounting fees decreased to
$1,680 for the three month period ended December 31, 2007 from $4,357 for the
three month period ended December 31, 2006. For the six month period ended
December 31, 2007, legal and accounting fees decreased to $5,543 from $6,357 for
the same period in 2006. The decrease in legal and accounting fees period over
period is due mainly to professional fees incurred to prepare and file our
regulatory quarterly and annual filings with the United States Securities and
Exchange Commission.

During the three month period ended
December 31, 2007, an officer and director of the Company made contributions to
capital for management fees in the amount of $15,000 and for rent in the amount
of $900 as compared to $Nil for the three month period ended December 31, 2006.
For the six month period ended December 31, 2007, an officer and director of the
Company made contributions to capital for management fees in the amount of
$30,000 and for rent in the amount of $1,800 as compared to $Nil for same period
in the prior year.

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

Liquidity and Capital Resources

At December 31, 2007, we had cash on
hand of $17,923 and liabilities of $71,155 consisting of accounts payable and
accrued liabilities of $21,223 and cash advances from our president, Tim
Coupland, for $49,932.

Our cash reserves are not sufficient to
meet our obligations for the next twelve-month period. We will require
additional funding in order to cover all anticipated administration costs and to
proceed with and finalizing a National Instruments 43-101 report on the Super
Mammoth Gravel Project, estimated to cost a minimum of $115,000 over the next
twelve months. We do not have any arrangements in place for any future equity
financing and there is no guarantee we will be able to obtain the funding
necessary to continue as a going concern.

Capital Expenditures

The Company expended no amounts on
capital expenditures for the period from inception to December 31, 2008. At
present there are no transactions being contemplated by management or the board
that would affect the financial condition, results of operations and cash flows
of any asset of the Company.

Employees

At present, we have no employees, other
than our current officers and directors, who devote their time as required to
our business operations.

20

---

Research and Development
Expenditures

We have incurred a total of $1,000 in
connection with a geological report concerning the Sobeski Lake Gold property.
We have not incurred any other research and development expenditures since our
incorporation.

Off-balance Sheet Arrangements

The Company has no off-balance sheet
arrangements that would require disclosure.

Subsequent Events

The following events occurred
subsequent to December 31, 2007:

- In January 2008, the Company acquired, for a cost of $25,000, a 100%
  interest in two gravel claims called the Northern Gravel Claims and Super
  Mammoth Gravel Claims (the Super Mammoth) located at Lloyd Point in the east
  arm of Toba Inlet situated 50 kilometers east of Campbell River, British
  Columbia and 28 kilometers north of Powell River on the British Columbia
  mainland.
- On 8 January 2008, the Company borrowed $75,000 from an officer, director
  and shareholder of the Company. This promissory note payable bears interest at
  10% per annum, is secured by a general agreement over all of the assets of the
  Company and is due on demand.
- On 20 January 2008, the Company allowed the Sobeski Lake Gold Property
claims to expire.

Critical Accounting Policies

Our financial statements are prepared
in accordance with accounting principles generally accepted in the United States
of America. Preparing financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
which affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the balance sheet dates, and the
recognition of revenues and expenses for the reporting periods. These estimates
and assumptions are affected by management's application of accounting policies.

Mineral property costs

The Company is primarily engaged in the
acquisition, exploration and development of mineral properties.

Mineral property acquisition costs are
initially capitalized as tangible assets when purchased. At the end of each
fiscal quarter end, the Company assesses the carrying costs for impairment. If
proven and probable reserves are established for a property and it has been
determined that a mineral property can be economically developed, costs will be
amortized using the units-of-production method over the estimated life of the
probable reserve.

Mineral property exploration costs are
expensed as incurred.

Estimated future removal and site
restoration costs, when determinable are provided over the life of proven
reserves on a units-of-production basis. Costs, which include production
equipment removal and environmental remediation, are estimated each period by
management based on current regulations, actual expenses incurred, and
technology and industry standards. Any charge is included in exploration expense
or the provision for depletion and depreciation during the period and the actual
restoration expenditures are charged to the accumulated provision amounts as
incurred.

As of the date of these financial
statements, the Company has not established any proven or probable reserves on
its mineral properties and incurred only acquisition and exploration costs.

21

---

Although the Company has taken steps to
verify title to mineral properties in which it has an interest, according to the
usual industry standards for the stage of exploration of such properties, these
procedures do not guarantee the Companys title. Such properties may be subject
to prior agreements or transfers and title may be affected by undetected
defects.

Impairment of long-lived assets

Long-lived assets are reviewed for
impairment whenever events or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Recoverability of these assets is
measured by comparison of its carrying amount to future undiscounted cash flows
the assets are expected to generate.

ITEM 3  CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure
Controls and Procedures

Based on the managements evaluation
(with the participation our President and Chief Financial Officer), our
President and Chief Financial Officer have concluded that as of December 31,
2007, the Companys disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange of 1934 (the "Exchange
Act") are effective to provide reasonable assurance that the information
required to be disclosed in this quarterly report on Form 10-QSB is recorded,
processed, summarized and reported within the time period specified in
Securities and Exchange Commission rules and forms. and that such information is
accumulated and communicated to the Companys management, including the Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow for
timely decisions regarding required disclosure.

(b) Internal control over financial
reporting

Management's annual report on
internal control over financial reporting

Management is responsible for
establishing and maintaining adequate internal control over financial reporting
as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal
control over financial reporting is intended to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with U.S. GAAP. Our
internal control over financial reporting should include those policies and
procedures that:

- pertain to the maintenance of records that, in reasonable detail,
  accurately and fairly reflect the transactions and dispositions of our assets;
- provide reasonable assurance that transactions are recorded as necessary
  to permit preparation of financial statements in accordance with applicable
  GAAP, and that receipts and expenditures are being made only in accordance
  with authorizations of management and the Board of Directors; and
- provide reasonable assurance regarding prevention or timely detection of
  unauthorized acquisition, use or disposition of our assets that could have a
  material effect on the financial statements.

Under the supervision and with the
participation of our management, including Tim Coupland, our President and Chief
Executive Officer, and Ann-Marie Cederholm, our Chief Financial Officer, we have
evaluated the effectiveness of our internal control over financial reporting and
preparation of our quarterly financial statements as of December 31, 2007 and
believe they are effective.

Based upon their evaluation of our
controls, Tim Coupland, our President and Chief Executive Officer, and Ann-Marie
Cederholm, our Chief Financial Officer, has concluded that, there were no
significant changes in our internal control over financial reporting or in other
factors during our last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.

22

---

Attestation report of the
registered public accounting firm

This quarterly report does not include
an attestation report of the company's registered public accounting firm
regarding internal control over financial reporting. Management's report was not
subject to attestation by the Company's registered public accounting firm
pursuant to temporary rules of the Securities and Exchange Commission that
permit the company to provide only management's report in this annual report.

Changes in internal control over
financial reporting

There were no changes in our internal
controls that occurred during the quarter covered by this report that have
materially affected, or are reasonably likely to materially affect our internal
controls.

Changes in Internal Controls

Based on the evaluation as of December
31, 2007, Tim Coupland, our President and Chief Executive Officer, and Ann-Marie
Cederholm, our Chief Financial Officer have concluded that there were no
significant changes in our internal controls over financial reporting or in any
other areas that could significantly affect our internal controls subsequent to
the date of his most recent evaluation, including corrective actions with regard
to significant deficiencies and material weaknesses.

ITEM 3A(T)  CONTROLS AND PROCEDURES

See Item 8A  Controls and Procedures
above.

PART II  OTHER INFORMATION

ITEM 1  LEGAL PROCEEDINGS

The Company is not a party to any
pending legal proceeding. Management is not aware of any threatened litigation,
claims or assessments.

ITEM 2  UNREGISTERED SALES OF
EQUITY SECURITES AND USE OF PROCEEDS

None

ITEM 3  DEFAULTS UPON SENIOR
SECURITIES

None

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

None

ITEM 5  OTHER INFORMATION

None

23

---

ITEM 6  EXHIBITS

The following exhibits are furnished as
required by Item 601 of Regulation S-B.

| | Exhibit No. | Exhibit Title                                                                                                                                                                            
| | ----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |             |                                                                                                                                                                                          
| | 3(i)        | Articles of Incorporation*                                                                                                                                                               
| | 3(ii)       | Bylaws *                                                                                                                                                                                 
| | 10.1        | Mineral Property Bill of Sale*                                                                                                                                                           
| | 10.2        | Loan Agreement dated January 8, 2008 between
      Tim Coupland and Dynamic Gold Corp.                                                                                                   
| | 10.3        | Promissory Note dated January 8, 2008 between
      Tim Coupland and Dynamic Gold Corp.                                                                                                  
| | 10.4        | General Security Agreement dated January 8,
      2008 between Tim Coupland and Dynamic Gold Corp.                                                                                       
| | 10.5        | General Security Agreement dated January 8,
      2008 between Tim Coupland and Dynamic Gravel Holdings Ltd.                                                                             
| | 10.6        | Material Subsidiary Guarantee dated January 8,
      2008 between Tim Coupland and Dynamic Gravel Holdings Ltd.                                                                          
| | 10.7        | Purchase and Sale Agreement dated January 8,
      2008 between Dynamic Gravel Holdings and Farshad Shirvani                                                                             
| | 21          | Subsidiaries                                                                                                                                                                             
| | 31.a        | Certificate of CEO as Required by Rule
      13a-14(a)/15d-14                                                                                                                            
| | 31.b        | Certificate of CFO as Required by Rule
      13a-14(a)/15d-14                                                                                                                            
| | 32.a        | Certificate of CEO and CFO as Required by Rule
      Rule 13a-14(b) and Rule 15d- 14(b) (17 CFR 240.15d-14(b)) and Section 1350
      of Chapter 63 of Title 18 of the United States Code
| | 99.1        | Claims location map**                                                                                                                                                                    

| | *  | Included in our original SB-2 Registration Statement filed on December
      9, 2004.
| | -- | -------------------------------------------------------------------------------------
| |    |                                                                                      
| | ** | Included in our SB-2 Amended Registration Statement filed on October
      19, 2005. 

SIGNATURE

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.

| | DYNAMIC GOLD CORP.                                                                                                                                                                       
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                          
| |                                                                                                                                                                                          
| |                                                                                                                                                                                          
| | BY: / s / Tim
      Coupland       Tim
      Coupland, President and Chief Executive Officer BY: / s
      / Ann-Marie Cederholm      
      Ann-Marie Cederholm, Chief Financial Officer
|
|
|
|
|
|

24

---