---

**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549

FORM 10-KSB

(Mark One)
  [ X ] Annual Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange
  Act Of 1934

For the fiscal year ended December 31, 2005

[]
  Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of
  1934

For the transition period from __________ to __________

COMMISSION FILE NUMBER 000-50033

IRELAND INC.(Name of small
business issuer in its charter)

|NEVADA                                                               | 91-2147049                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation
      or organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|810 Peace Portal Drive, Suite 201                                    |                                     
|Blaine, Washington                                                   | 98230                               
|(Address of principal executive offices)                             | (Zip Code)                          
|                                                                     |                                     
|(360) 318-3020                                                       |                                     
|Issuer's telephone number                                            |                                     

|Securities registered under Section 12(b) of
      the Exchange Act: | NONE.                                    
|-------------------------------------------------------------------- | -----------------------------------------
|                                                                     |                                          
|Securities registered under Section 12(g) of
      the Exchange Act: | Common Stock, $0.001 Par Value Per Share.

Check whether the issuer is not required to file reports pursuant
  to Section 13 or 15(d) of the Exchange Act. []

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 []

Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B contained in this 
  form, and no disclosure will be contained, to the best of registrant's knowledge,
  in definitive proxy or information 
  statements incorporated by reference in Part III of this Form 10-KSB or any
  amendment to this Form 10-KSB. []

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

State issuers revenues for its most recent fiscal year:
NIL.

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at
which the common equity was sold, or the average bid and asked price of such
common equity, as of a specified date within the past 60 days:
$458,750 based on a price of $0.10 per share, being thelast price at which shares of common stock were sold by the
issuer.

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date. As of
December 31, 2005, the issuer had 9,137,500 shares of common stock
outstanding.

Transitional Small Business Disclosure Format (Check one): Yes
  []
  No [ X ]

---

TABLE OF CONTENTS

|           |          |                                                                                                                       | PAGE
|---------- | -------- | --------------------------------------------------------------------------------------------------------------------- | ----
|           |          |                                                                                                                       |     
|PART I     | 3       
|           |          |                                                                                                                       |     
|           | ITEM 1.  | DESCRIPTION OF BUSINESS.                                                                                              | 3   
|           |          |                                                                                                                       |     
|           | ITEM 2.  | DESCRIPTION OF PROPERTY                                                                                               | 5   
|           |          |                                                                                                                       |     
|           | ITEM 3.  | LEGAL PROCEEDINGS                                                                                                     | 7   
|           |          |                                                                                                                       |     
|           | ITEM 4.  | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                   | 7   
|           |          |                                                                                                                       |     
|PART II    | 8       
|           |          |                                                                                                                       |     
|           | ITEM 5.  | MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.                                                             | 8   
|           |          |                                                                                                                       |     
|           | ITEM 6.  | MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.                                                            | 9   
|           |          |                                                                                                                       |     
|           | ITEM 7.  | FINANCIAL STATEMENTS                                                                                                  | 16  
|           |          |                                                                                                                       |     
|           | ITEM 8.  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
      AND FINANCIAL DISCLOSURE                            | 17  
|           |          |                                                                                                                       |     
|           | ITEM 8A. | CONTROLS AND PROCEDURES.                                                                                              | 17  
|           |          |                                                                                                                       |     
|           | ITEM 8B. | OTHER INFORMATION                                                                                                     | 17  
|           |          |                                                                                                                       |     
|PART III   | 18      
|           |          |                                                                                                                       |     
|           | ITEM 9.  | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
      COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT | 18  
|           |          |                                                                                                                       |     
|           | ITEM 10. | EXECUTIVE COMPENSATION                                                                                                | 19  
|           |          |                                                                                                                       |     
|           | ITEM 11. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
      AND RELATED STOCKHOLDER MATTERS.                 | 20  
|           |          |                                                                                                                       |     
|           | ITEM 12. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                                                                        | 21  
|           |          |                                                                                                                       |     
|           | ITEM 13. | EXHIBITS                                                                                                              | 22  
|           |          |                                                                                                                       |     
|           | ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES.                                                                               | 22  
|           |          |                                                                                                                       |     
|SIGNATURES | 23      

2

---

PART I

Certain statements contained in this Annual Report on Form
10-KSB constitute "forward-looking statements". These statements, identified by
words such as plan, "anticipate", "believe", "estimate", "should," "expect"
and similar expressions include our expectations and objectives regarding our
future financial position, operating results and business strategy. These
statements reflect the current views of management with respect to future events
and are subject to risks, uncertainties and other factors that may cause our
actual results, performance or achievements, or industry results, to be
materially different from those described in the forward-looking statements.
Such risks and uncertainties include those set forth under the caption
"Management's Discussion and Analysis or Plan of Operation" and elsewhere in
this Annual Report. We advise you to carefully review the reports and documents
we file from time to time with the Securities and Exchange Commission (the
SEC), particularly our quarterly reports on Form 10-QSB and our current
reports on Form 8-K.

As used in this Annual Report, the terms "we", "us", "our",
Ireland, and the Company mean Ireland Inc., unless otherwise indicated. All
dollar amounts in this Annual Report are expressed in U.S. dollars, unless
otherwise indicated.

ITEM
1.               
DESCRIPTION OF BUSINESS.

GENERAL

We were incorporated on February 20, 2001 under the laws of the
State of Nevada. We are an exploration stage company engaged in the acquisition,
exploration and development of mineral properties.

In November of 2004, we acquired a 100% interest in a mineral
claim located in the Yellow Pine Mining District in Clark County, Nevada that we
refer to as the Ireland Claim. Our plan of operation for the next twelve months
primarily involves continuing to conduct preliminary exploration and development
work on this property in order to ascertain whether it possesses commercially
exploitable mineral deposits. To date, no commercially viable mineral deposits
have been identified on the Ireland Claim and there is no assurance that any
commercially viable mineral deposits exist on the property.

RECENT CORPORATE DEVELOPMENTS

Since the last fiscal year ended December 31, 2004, we have
experienced the following developments in our business:

|1. | On January 23, 2006, we received the report of our consulting
        geologist regarding the results of exploration work completed on the Ireland
        Claim. The work completed consisted of trench sampling and surveying of
        the claim site. Based upon assay values obtained from the samples taken,
        our consulting geologist has recommended that we proceed with a VLF electromagnetic
        survey of the Ireland Claim. Subject to the availability of the necessary
        equipment and of our consulting geologist, we intend to proceed with this
        next step of our exploration program during the 2006 fiscal year.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|2. | Effective January 10, 2006, Gordon F. Burley resigned
        as a member of the Board of Directors and as our Chief Financial Officer
        and Treasurer. There was no disagreement between Mr. Burley and the Company
        regarding any matter relating to our operations, policies or practices.
        In place of Mr.Burley, Lorrie Ann Archibald, the Companys President,
        Chief Executive Officer and a member of the Companys Board of Directors,
        was appointed as our Chief Financial Officer and Treasurer.                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3. | Effective December 19, 2005, our name has changed from
        Merritt Ventures Corp. to Ireland Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4. | Effective September 30, 2005 and October 24, 2005, we
        completed two private placements for proceed of $90,000 and $80,000 respectively.
        These private placements consisted of an aggregate of 1,700,000 shares
        of our common stock, which were sold at a price of $0.10 per share.                                                                                                                                                                                                                                                                                                                                                   

3

---

COMPETITION

We are a mineral resource exploration and development company.
We compete with other mineral resource exploration and development companies for
financing and for the acquisition of new mineral properties. Many of the mineral
resource exploration and development companies with whom we compete have greater
financial and technical resources than us. Accordingly, these competitors may be
able to spend greater amounts on acquisitions of mineral properties of merit, on
exploration of their mineral properties and on development of their mineral
properties. In addition, they may be able to afford greater geological expertise
in the targeting and exploration of mineral properties. This competition could
result in competitors having mineral properties of greater quality and interest
to prospective investors who may finance additional exploration and development.
This competition could adversely impact our ability to finance further
exploration and to achieve the financing necessary for us to develop our mineral
properties.

GOVERNMENT REGULATIONS

The mining industry in the United States is highly regulated.
We intend to secure all necessary permits for the exploration of the Ireland
Claim and, if development is warranted on the property, will file final plans of
operation prior to starting any mining operations. The consulting geologists
that we hire are experienced in conducting mineral exploration activities and
are familiar with the necessary governmental regulations and permits required to
conduct such activities. As such, we expect that our consulting geologists will
inform us of any government permits that we will be required to obtain prior to
conducting any planned activities on the Ireland Claim. We are not able to
estimate the full costs of complying with environmental laws at this time since
the full nature and extent of our proposed mining activities cannot be
determined until we complete our exploration program.

We will have to sustain the cost of reclamation and
environmental remediation for all exploration work undertaken. We do not
expected Phases I through III of our current exploration program to require any
reclamation or environmental remediation work.

If we enter into the development or production stages of any
mineral deposits found on the Ireland Claim, of which there are no assurances,
the cost of complying with environment laws, regulations and permitting
requirements will be substantially greater than in the exploration phases
because the impact on the project area is greater. Permits and regulations will
control all aspects of any mineral deposit development or production program if
the project continues to those stages because of the potential impact on the
environment. Examples of regulatory requirements include:

|- | Water discharge will have to meet water standards;                                                                                 
|- | -----------------------------------------------------------------------------------------------------------------------------------
|- | Dust generation will have to be minimal or otherwise re-
      mediated;                                                           
|- | Dumping of material on the surface will have to be re-
      contoured and re-vegetated;                                           
|- | An assessment of all material to be left on the surface
      will need to be environmentally benign;                              
|- | Ground water will have to be monitored for any potential
      contaminants;                                                       
|- | The socio-economic impact of the project will have to be
      evaluated and if deemed negative, will have to be re- mediated; and,
|
|- | There will have to be an impact report of the work on the
      local fauna and flora.                                             

Phase IV of our exploration program calls for the diamond
drilling of selected sites on the Ireland Claim. If we decide to proceed to
Phase IV of our exploration program, of which there are no assurances, we will
require the prior permission of the Bureau of Land Management (the BLM). The
permit required is a "Notice of Intent" which fully describes the intended
program including location of drill sites, proposed access roads, type of
equipment to be used, duration, reclamation plan, etc. Once a decision is made
to proceed with exploration drilling activities, a Notice of Intent will need to
be submitted for BLM approval. BLM staff will then schedule a field visit with a
company representative. The BLM may call for adjustments, for example, in access
or location of drilling sites, or may approve the plan as is. The BLM will call
upon wildlife, biology, archaeological and other experts as needed to mitigate
any expected impact. Before any physical

4

---

disturbance may occur, the BLM will determine the amount of the
disturbance and may require a reclamation bond. Only after these steps are
completed will a permit for exploration drilling be issued. It typically
requires approximately 90 days to acquire drilling permits.

EMPLOYEES

We have no employees as of the date of this Annual Report on
Form 10-KSB other than our executive officers. We conduct our business largely
through agreements with consultants and arms-length third parties.

RESEARCH AND DEVELOPMENT EXPENDITURES

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

SUBSIDIARIES

We do not have any subsidiaries.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patent or
trademark.

ITEM
2.               
DESCRIPTION OF PROPERTY.

THE IRELAND CLAIM

Location and Access to the Ireland Claim

The Ireland Claim consists of one unpatented mineral lode claim
situated in the Yellow Pine Mining District in Clark County, Nevada, Section 24
of Township 25 south, range 58 east. A copy of the Certificate of Location filed
with the Clark County recorder was filed as an exhibit to our Annual Report for
the fiscal year ended December 31, 2004.

The Ireland Claim is located approximately 30 miles southwest
of Las Vegas, Nevada, and approximately 4 miles south of Goodsprings, Nevada on
the eastern slope of the Spring Mountains. Access to the Ireland Claim may be
obtained by traveling southwest along Interstate Highway No. 15 from Las Vegas
to the town of Jean, Nevada. Goodsprings is accessible from Jean by paved road
at a distance of approximately seven miles to the northeast. The Ireland Claim
is approximately four miles south of Goodsprings and may be accessed from
Goodsprings by gravel road.

Ownership Interest

We acquired ownership of the Ireland Claim from Multi Metal
Mining Corp. effective as of November 30, 2004 in exchange for the sum of
$6,000. The full purchase price has been paid to Multi Metal Mining Corp. and,
as such, we are the sole legal and beneficial owners of the Ireland Claim. A
copy of the purchase agreement was filed as an exhibit to our Annual Report for
the fiscal year ended December 31, 2004.

Geology of the Ireland Claim

The regional geography of the Spring Mountain Range consists
primarily of Paleozoic sediments that have undergone intense folding accompanied
by faulting. The Yellow Pine Mining District is underlain by a series of
Carboniferous sediments (i.e. relating to the Carboniferous Period) consisting
of limestone, pure crystalline

5

---

limestone, and dolomite, with occasional intercalated beds of
fine-grained sandstone. These strata have a general west to southwest dip from
15 to 45 degrees occasionally disturbed by local folds. Igneous rocks (i.e.
rocks formed by solidified magma) are scarce in this region and are represented
chiefly by quartz-monzonite porphyry dikes and sills.

History and Previous Operations on the Ireland Claim

The Ireland Claim is situated in an area that has historically
been known as a well mineralized region.

The history of the area surrounding the Ireland Claim dates
back to 1856 following the investigation of lead ore by Mormon missionaries. The
first ore was smelted in 1857 and a mill was built north of Goodsprings in 1898.
The completion of the San Pedro, Los Angeles and Salt Lake railroad in 1905 and
the recognition of oxidized zinc minerals in the ore found around this location
stimulated the development of mines in this region. The region was the subject
of intermittent mining activity up to around 1964. The area has remained
primarily dormant since 1964. A report on the area from 1931 indicated that
several cars of copper-bearing lead ore had been previously mined from the area.
To our knowledge, no recent work has been recorded on the Ireland Claim.

The Yellow Pine Mining District has been mined primarily for
lead, zinc and silver. However, an estimated 91,000 ounces of gold has also been
recovered in the region.

Present Condition and Current State of Exploration on the
Ireland Claim

Our proposed program for the Ireland Claim is exploratory in
nature. No mineral reserves have been identified on the Ireland Claim and there
is no assurance that any such reserves will be identified in the future.

Upon our acquisition of the Ireland Claim, we retained the
services of a geologist to review the available data on the property, to provide
an assessment of the property based on that data and, if warranted, to recommend
an exploration program for the property. A copy of his report was attached as an
exhibit to our Annual Report for the year ended December 31, 2004. In his
report, our consulting geologist recommended the following four-phased
exploration program for the Ireland Claim:

|1. | Phase I:Phase I of the exploration program is to
      consist of a VLF electromagnetic survey that traces geological fracture
      and breccia zones of the Ireland Claim. VLF electromagnetic surveying
      employs electromagnetic waves that are generated at the surface and
      directed into the earth. When these waves encounter electrically
      conductive mineral formations or ore bodies located underground, they
      induce currents in the conducting minerals which generate new
      electromagnetic waves that are then detected by instruments located at the
      surface. Using this method, we can detect the presence of underground
      mineral formations and ore bodies. The estimated cost of completing Phase
      I is $5,500.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2. | Phase II:Phase II of the exploration program,
      which has been completed, consisted of conducting a trench sampling survey
      of the Ireland Claim. Trench sampling involves dragging a shovel along the
      surface in a single direction to create a channel. Material for the sample
      is then taken at regular intervals along the channel. This procedure is
      repeated with several other channels in different directions until a
      suitable sample size has been procured. The cost of completing Phase II
      was $8,500.                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|3. | Phase III:Phase III of the exploration program is
      expected to involve the conducting of a detailed geological mapping
      program of the Ireland Claim. The purpose of this phase of the exploration
      program would be to identify the geological environment underling the
      mineral claim and to produce a detailed mineralization map. The estimated
      cost of completing Phase III is $10,000.                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|4. | Phase IV:Phase IV of the exploration program is
      expected to consist of diamond drilling the Ireland Claim in order to
      obtain core samples of the underground mineralization. The estimated cost
      of completing Phase IV is $91,200.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

6

---

During the winter and fall of 2005, work was conducted on the
Ireland Claim based upon the initial recommendations of our consulting
geologist. Phase I of our exploration program was to initially have consisted of
a VLF electromagnetic survey of the geological fracture and breccia zones of the
Ireland Claim. However, we were unable to secure the equipment necessary to
conduct this phase of the recommended exploration program. As a result, it was
decided that we would conduct the trench sampling phase of the recommended
exploration program first. The report of our consulting geologist on the results
of the trench sampling portion of our exploration program was received at the
end of January, 2006. Our consulting geologist reported that the trench samples
returned assay values of gold varying from trace amounts to 0.28 oz/ton and
silver varying from trace amounts to 1.89 oz/ton.

Based upon these results, our consulting geologist has
recommended that we proceed with what was originally planned as Phase I of the
exploration program, the VLF electromagnetic surveying of the Ireland Claim.
Subject to the availability of the necessary consultants and equipment, we
intend to conduct this phase of our exploration program during the 2006 fiscal
year. Once the results of this phase of our exploration program has been
completed, our Board of Directors will make a determination whether to proceed
with Phase III of the exploration program. In making this determination, our
Board of Directors will assess the results of the VLF electromagnetic survey and
will rely upon the recommendations of our consulting geologist.

ITEM
3.               
LEGAL PROCEEDINGS.

We are not currently a party to any material legal proceedings
and, to our knowledge, no such proceedings are threatened or contemplated.

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

On November 14, 2005, our Board of Directors unanimously
recommended that the our stockholders approve a proposal to amend the Companys
Articles of Incorporation to change our name from Merritt Ventures Corp. to
Ireland Inc. (the Name Change). On November 14, 2005, stockholders holding
54.7% of the voting power of the Company executed a written consent authorizing
and approving the Name Change. A Certificate of Amendment to the Articles of
Incorporation was filed with the Nevada Secretary of State and the Name Change
was completed effective December 19, 2005.

As the Name Change was approved by the written consent of
stockholders holding a majority of the outstanding shares of our common stock
entitled to vote, the Name Change was not submitted for a general vote of our
stockholders.

7

---

PART II

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

Currently, there is no established public trading market for
our securities. We have submitted an application to have our common stock traded
on the Over-The-Counter Bulletin Board; however there are no assurances that our
application will be approved or that a public market for our securities will
materialize.

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities
registered on certain national securities exchanges or quoted on the NASDAQ
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or system. The penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure
document prepared by the SEC, which:

| | (a) | contains a description of the nature and level of risk in
      the market for penny stocks in both public offerings and secondary
      trading;                                                                                        
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | contains a description of the broker's or dealer's duties
      to the customer and of the rights and remedies available to the customer
      with respect to a violation of such duties or other requirements of
      securities laws;
| | (c) | contains a brief, clear, narrative description of a
      dealer market, including bid and ask prices for penny stocks and the
      significance of the spread between the bid and ask price;                                           
| | (d) | contains a toll-free telephone number for inquiries on
      disciplinary actions;                                                                                                                                                       
| | (e) | defines significant terms in the disclosure document or
      in the conduct of trading in penny stocks; and                                                                                                                             
| | (f) | contains such other information and in such form as the
      SEC shall require by rule or regulation.                                                                                                                                   

The broker-dealer also must, prior to effecting any transaction
in a penny stock, provide the customer with:

| | (a) | bid and offer quotations for the penny stock;                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | the compensation of the broker-dealer and its salesperson
      in the transaction;                                                                                           
| | (c) | the number of shares to which such bid and ask prices
      apply, or other comparable information relating to the depth and liquidity
      of the market for such stock; and
| | (d) | monthly account statements showing the market value of
      each penny stock held in the customer's account.                                                                 

In addition, the penny stock rules require that, prior to a
transaction in a penny stock that is not otherwise exempt from those rules, the
broker-dealer must:

| | (a) | make a special written determination that the penny stock
      is a suitable investment for the purchaser; and                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | receive from the purchaser his or her written
      acknowledgement of receipt of the determination and a written agreement to
      the transaction.

These disclosure requirements may have the effect of reducing
the trading activity in the secondary market for our common stock and therefore
stockholders may have difficulty selling those securities.

Holders of Common Stock

As of January 27, 2006, there were 99 stockholders of record of
our common stock.

Dividends

We have not declared any dividends on our common stock since
our inception. There are no dividend restrictions that limit our ability to pay
dividends on our common stock in our Articles of Incorporation or bylaws.
Chapter 78 of the Nevada Revised Statutes (the NRS), does provide certain
limitations on our

8

---

ability to declare dividends. Section 78.288 of Chapter 78 of
the NRS prohibits us from declaring dividends where, after giving effect to the
distribution of the dividend:

|(a) | we would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                                                                                                                                                                                                                                        
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(b) | except as may be allowed by our Articles of
      Incorporation, our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed, if we were to be
      dissolved at the time of the distribution, to satisfy the preferential
      rights upon dissolution of stockholders who may have preferential rights
      and whose preferential rights are superior to those receiving the
      distribution.

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

PLAN OF OPERATION

Our exploration program for the Ireland Claim consists of the
following:

|1. | Phase I: Phase I of the exploration program
      involves conducting a VLF electromagnetic survey that traces geological
      fracture and breccia zones. VLF electromagnetic surveying employs
      electromagnetic waves that are generated at the surface and directed into
      the earth. When these waves encounter electrically conductive mineral
      formations or ore bodies located underground, they induce currents in the
      conducting minerals which generate new electromagnetic waves that are then
      detected by instruments located at the surface. Using this method, we can
      detect the presence of underground mineral formations and ore bodies. The
      estimated cost of completing Phase I is $5,500.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|2. | Phase II: Phase II of the exploration program,
      which has been completed, involved conducting a trench sampling survey of
      the Ireland Claim. Trench sampling involves dragging a shovel along the
      surface in a single direction to create a channel. Material for the sample
      is then taken at regular intervals along the channel. This procedure is
      repeated with several other channels in different directions until a
      suitable sample size has been procured. The cost of completing Phase II
      was $8,500.                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3. | Phase III: Phase III of the exploration program
      will involve conducting a detailed geological mapping program of the
      Ireland Claim. The purpose of this phase of the exploration program would
      be to identify the geological environment underling the mineral claims and
      to produce a detailed mineralization map. The estimated cost of completing
      Phase III is $10,000.                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4. | Phase IV: Phase IV of the exploration program will
      involve diamond drilling the Ireland Claim in order to obtain core samples
      of the underground mineralization. The estimated cost of completing Phase
      IV is $91,200.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

As discussed at Part I, Item 2 of this Annual Report, Phase II
of our exploration program was completed before Phase I due to the
unavailability of the equipment necessary to conduct a VLF electromagnetic
survey. Based upon the results of Phase II, our consulting geologist has
recommended that we proceed with the VLF electromagnetic survey that was
originally recommended for Phase I. Subject to the availability of the necessary
consultants and equipment, we intend to proceed with Phase I during the 2006
fiscal year. Once Phase I is completed, our Board of Directors will make a
determination whether to proceed with Phase III of the exploration program.

As of our fiscal year ended December 31, 2005, we had cash in
the amount of approximately $63,242 and working capital of $35,851. Currently,
we have sufficient working capital to meet the anticipated costs of completing
Phases I and III of our exploration program. However, there are no assurances
that the actual costs of completing these phases will not exceed our estimates
of those costs. Further, we do not have sufficient capital resources to complete
Phase IV of our exploration program and meet our ongoing current obligations.
Upon the completion of each phase of our exploration program, our Board of
Directors will make an assessment to determine whether the results of that phase
are sufficiently favorable to justify proceeding.

9

---

If our Board of Directors decides to proceed through to Phase
IV of our exploration program, of which there are no assurances, or if the
actual costs of completing each phase exceeds our estimates of those costs, we
may be required to seek additional financing. There are no assurances that we
will be able to obtain sufficient financing on terms acceptable to us, or at
all. Currently, we do not have arrangements for additional funds.

RESULTS OF OPERATIONS

|Summary of Year End Results |           |                        |                      
|--------------------------- | --------- | ---------------------- | ---------------------
|                            |           | Year Ended December 31
|                            |           |                        | Percentage           
|                            | 2005      | 2004                   | Increase / (Decrease)
|Revenue                     | $ Nil     | $ Nil                  | n/a                  
|Expenses                    | (54,025)  | (51,000)               | 5.9%                 
|Net Loss                    | $(54,025) | $(51,000)              | 5.9%                 

Revenue

We have not earned any revenues since our inception and we do
not anticipate earning revenues until such time as we have entered into
commercial production of our mineral property. We are currently in the
exploration stage of our business and we can provide no assurances that we will
discover commercially exploitable levels of mineral resources on our properties,
or if such resources are discovered, that we will be able to enter into
commercial production of our mineral property.

Expenses

The major components of our operating expenses are outlined in
the table below:

|                                           | Year Ended December 31
|------------------------------------------ | ----------------------
|                                           |                       
|                                           | 2005                  
|Administrative fees                        | $900                  
|Exploration expenses                       | 3,000                 
|Mineral property and option
      payments | 6,000                 
|Office and sundry                          | 270                   
|Professional fees                          | 35,383                
|Regulatory fees                            | 5,722                 
|Rent                                       | 2,750                 
|Total                                      | $54,025               

The majority of our expenses for the year ended December 31,
2005 consisted of professional fees incurred by us in meeting our ongoing
reporting obligations under federal securities laws.

We anticipate that our operating expenses will increase
significantly as we undertake our plan of operation and pursue our exploration
program for the Ireland Claim. Our expenses will continue to increase if our
Board of Directors decides to proceed beyond Phase I of our exploration program
to Phase III. However, there are no assurances that such a determination will be
made.

10

---

LIQUIDITY AND CAPITAL RESOURCES

|Working Capital         |                 |                 |                      
|----------------------- | --------------- | --------------- | ---------------------
|                        | At December 31, | At December 31, | Percentage           
|                        | 2005            | 2004            | Increase / (Decrease)
|Current Assets          | $63,242         | $15             | 421,513.3%           
|Current Liabilities     | (27,391)        | (80,139)        | (65.8)%              
|Working Capital Deficit | $35,851         | $(80,124)       | 144.7%               

|Cash Flows                                  |                        |         
|------------------------------------------- | ---------------------- | --------
|                                            | Year Ended December 31
|                                            | 2005                   | 2004    
|Net Cash Used In Operating
      Activities | $(108,423)             | $(1,930)
|Net Cash from Financing Activities          | 171,650                | 1,000   
|Net Decrease In Cash During
      Period    | 63,227                 | $(930)  

During the fiscal year ended December 31, 2005, we had no
revenue. On September 30, 2005, we obtained financing in the amount of $90,000
as a result of the private placement sale of 900,000 shares of our common stock.
An additional 800,000 shares of our common stock were sold on a private
placement basis on October 24, 2005, resulting in additional proceeds to the
Company of $80,000. The funds received from these financings will be used to
fund our exploration program for the Ireland Claim and to meet our current
obligations as they become due.

We currently have sufficient working capital to meet the
anticipated costs of completing Phases I through III of our exploration program.
However, there is no assurance that the actual costs of completing those phases
of our exploration program will not exceed our estimates. Additionally, if our
Board of Directors decides to proceed through to Phase IV of our exploration
program, of which there is no assurance, we will need additional financing in
order to complete Phase IV. There is no assurance that we will be able to
acquire such additional financing on terms that are acceptable to us, or at
all.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with
generally accepted accounting principles requires our management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Our management routinely makes judgments and estimates about the effects of
matters that are inherently uncertain.

We have identified certain accounting policies, described
below, that are most important to the portrayal of our current financial
condition and results of operations. Our significant accounting policies are
disclosed in Note 2 to the audited financial statements included in this Annual
Report.

11

---

Exploration Stage Enterprise

The Companys financial statements are prepared using the
accrual method of accounting and according to the provisions of Statement of
Financial Accounting Standards No. 7 (SFAS 7), Accounting and Reporting for
Development Stage Enterprises, as it devotes substantially all of its efforts
to acquiring and exploring mineral properties. Until such properties are
acquired and developed, the Company will continue to prepare its financial
statements and related disclosures in accordance with entities in the
exploration stage.

Mineral Property Option Payments and Exploration
Expenditures

The Company follows a policy of expensing exploration
expenditures until a production decision is made in respect of the project and
the Company is reasonably assured that it will receive regulatory approval to
permit mining operations which may include the receipt of a legally binding
project approval certificate.

Management periodically reviews the carrying value of its
investments in mineral leases and claims with internal and external mining
related professionals. A decision to abandon, reduce or expand a specific
project is based upon many factors including general and specific assessments of
mineral deposits, anticipated future mineral prices, anticipated future costs of
exploring, developing and operating a production mine, the expiration term and
ongoing expenses of maintaining mineral properties and the general likelihood
that the Company will continue exploration on such project. The Company does not
set a pre-determined holding period for properties with unproven deposits,
however, properties which have not demonstrated suitable metal concentrations at
the conclusion of each phase of an exploration program are re-evaluated to
determine if future exploration is warranted, whether there has been any
impairment in value and that their carrying values are appropriate.

If an area of interest is abandoned or it is determined that
its carrying value cannot be supported by future production or sale, the related
costs are charged against operations in the year of abandonment or determination
of value. The amounts recorded as mineral leases and claims represent costs to
date and do not necessarily reflect present or future values.

The Companys exploration activities and proposed mine
development are subject to various laws and regulations governing the protection
of the environment. These laws are continually changing, generally becoming more
restrictive. The Company has made, and expects to make in the future,
expenditures to comply with such laws and regulations.

The accumulated costs of properties that are developed on the
stage of commercial production will be amortized to operations through
unit-of-production depletion.

Regulatory Matters

The Company and its mineral property interest is subject to a
variety of federal and state regulations governing land use, health, safety and
environmental matters. The Companys management believes it has been in
substantial compliance with all such regulations, and is unaware of any pending
action or proceeding relating to regulatory matters that would affect the
financial position of the Company.

Environmental Protection and Reclamation Costs

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 removal and site restorations costs.
Both the likelihood of new regulations and their overall effect upon the Company
may vary from region to region and are not predictable.

Environmental expenditures that relate to ongoing environmental
and reclamation programs are charged against statements of operations as
incurred or capitalized and amortized depending upon their future economic
benefits. The Company does not currently anticipate any material capital
expenditures for environmental control facilities because its property holding
is at an early stage of exploration.

12

---

RISKS AND UNCERTAINTIES

If we do not obtain additional financing, our business will
fail

Our current operating funds are inadequate to complete our
planned exploration of the Ireland Claim. Our business plan calls for
significant expenses in connection with the exploration and development of those
mineral claims. We will require additional financing to complete our exploration
and development plans. We will also require additional financing if the costs of
exploration are greater than anticipated and to sustain our business operations
if we are not successful in earning revenues once exploration is complete.

Obtaining additional financing would be subject to a number of
factors, the known material factors being market prices for gold and silver,
investor acceptance of our mineral claims, and investor sentiment. These factors
may make the timing, amount, terms or conditions of additional financing
unavailable to us.

If we complete a financing through the sale of additional
shares of our common stock, stockholders will experience dilution

The most likely source of future financing presently available
to us is through the issuance of our common stock. Any sale of share capital
will result in dilution to existing stockholders. The only other anticipated
alternative for the financing of further exploration would be the offering by us
of an interest in our properties to be earned by another party or parties
carrying out further exploration thereof, which is not presently
contemplated.

In order to maintain our rights to the Ireland Claim, we
will be required to make annual filings with federal and state regulatory
agencies and/or be required to complete assessment work on the Ireland
Claim

In order to maintain our rights to the Ireland Claim, we will
be required to make annual filings with federal and state regulatory
authorities. Currently the amount of these fees is nominal; however, these
maintenance fees are subject to adjustment. In addition, we may be required by
federal and/or state legislation or regulations to complete minimum annual
amounts of mineral exploration work on the Ireland Claim. A failure by us to
meet the annual maintenance requirements under federal and state laws could
cause our rights to the Ireland Claim to lapse.

Because we have not commenced business operations, we face a
high risk of business failure

We were incorporated on February 20, 2001 and, to date, have
been involved primarily in organizational activities, the acquisition of mineral
claims and the exploration and development on these claims. We have not earned
any revenues as of the date of this Annual Report. Potential investors should be
aware of the difficulties normally encountered by new mineral exploration
companies and the high rate of failure of such enterprises. The likelihood of
success must be considered in light of the problems, expenses, difficulties,
complications and delays encountered in connection with the exploration of the
mineral properties that we plan to undertake. These potential problems include,
but are not limited to, unanticipated problems relating to exploration, and
additional costs and expenses that may exceed current estimates.

Because we anticipate our operating expenses will increase
prior to our earning revenues, we may never achieve profitability

Prior to completion of our exploration stage, we anticipate
that we will incur increased operating expenses without realizing any revenues.
We therefore expect to incur significant losses into the foreseeable future. We
recognize that if we are unable to generate significant revenues from the
exploration of our mineral claims and the production of minerals thereon, if
any, we will not be able to earn profits or continue operations. There is no
history upon which to base any assumption as to the likelihood that we will
prove successful, and we may not be able to ever generate any operating revenues
or achieve profitable operations. If we are unsuccessful in addressing these
risks, our business will most likely fail.

13

---

Because of the speculative nature of exploration of mining
properties, there is substantial risk that no commercially exploitable minerals
will be found and our business will fail

The search for valuable minerals as a business is extremely
risky. We may not find commercially exploitable reserves of gold or silver on
our mineral claims. Exploration for minerals is a speculative venture,
necessarily involving substantial risk. The expenditures to be made by us in the
upcoming exploration of the mineral claims may not result in the discovery of
commercial quantities of ore. Problems such as unusual or unexpected formations
and other conditions are involved in mineral exploration and often result in
unsuccessful exploration efforts. In such a case, we would be unable to complete
our business plan.

Because of the inherent dangers involved in mineral
exploration, there is a risk that we may incur liability or damages if and when
we conduct mineral exploration activities

The search for valuable minerals involves numerous hazards. As
a result, if and when we conduct exploration activities we may become subject to
liability for such hazards, including pollution, cave-ins and other hazards
against which we cannot insure or against which we may elect not to insure. The
payment of such liabilities may have a material adverse effect on our financial
position.

Even if we discover commercial reserves of precious metals
on our optioned mineral claims, we may not be able to successfully obtain
commercial production

Our optioned mineral claims do not contain any known bodies of
ore. If our exploration programs are successful in discovering ore of commercial
tonnage and grade, we will require additional funds in order to place those
mineral claims into commercial production. At this time, there is a risk that we
will not be able to obtain such financing as and when needed.

Because we are an exploration stage company, our business
has a high risk of failure

As noted in the financial statements that are included with
this Annual Report, we are an exploration stage company that has incurred net
losses since inception, we have not attained profitable operations and we are
dependent upon obtaining adequate financing to complete our exploration
activities. These conditions, as indicated in the audit report of Telford
Sadovnick, P.L.L.C., raise substantial doubt as to our ability to continue as a
going concern. The success of our business operations will depend upon our
ability to obtain further financing to complete our planned exploration program
and to attain profitable operations. If we are not able to complete a successful
exploration program and attain sustainable profitable operations, then our
business will fail.

If we are unable to hire and retain key personnel, we may
not be able to implement our business plan and our business will fail

Our success will largely depend on our ability to hire highly
qualified personnel with experience in geological exploration. These individuals
may be in high demand and we may not be able to attract the staff we need. In
addition, we may not be able to afford the high salaries and fees demanded by
qualified personnel, or may lose such employees after they are hired. Currently,
we have not hired any key personnel. Our failure to hire key personnel when
needed could have a significant negative effect on our business.

Because our executive officers have only agreed to provide
their services on a part-time basis, they may not be able or willing to devote a
sufficient amount of time to our business operations, causing our business to
fail

Our executive officers provide their services on a part-time
basis. Our officers may pursue other business activities, provided that these
other activities do not interfere with their obligations to us. Ms. Archibald
and Mr. Rommel devote their full-time attention to other business pursuits. It
is therefore possible that, over time, Ms. Archibald and Mr. Rommel may not be
able to devote sufficient time to the management of our business, as and when
needed.

14

---

Because our executive officers do not have formal training
specific to the technicalities of mineral exploration, there is a higher risk
our business will fail

Our executive officers and directors do not have formal
training as geologists or in the technical aspects of management of a mineral
exploration company. Accordingly, we will have to rely on the technical services
of others trained in appropriate areas. If we are unable to contract for the
services of such individuals, it will make it difficult and maybe impossible to
pursue our business plan.

As we undertake exploration of our optioned mineral claims,
we will be subject to compliance with government regulation that may increase
the anticipated cost of our exploration program

There are several government regulations that materially
restrict the exploration of minerals. We may be required to obtain work permits,
post bonds and perform remediation work for any physical disturbance to the land
in order to comply with these laws. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program.

If we receive positive results from our exploration program
and we decide to pursue commercial production, we may be subject to an
environmental review process that may delay or prohibit commercial production

If the results of our geological exploration program indicate
commercially exploitable reserves, and we decide to pursue commercial production
of our mineral claims, we may be subject to an environmental review process
under environmental assessment legislation. Compliance with an environmental
review process may be costly and may delay commercial production. Furthermore,
there is the possibility that we would not be able to proceed with commercial
production upon completion of the environmental review process if government
authorities did not approve our mine or if the costs of compliance with
government regulation adversely affected the commercial viability of the
proposed mine.

15

---

ITEM
7.               
FINANCIAL STATEMENTS.

|**Index to Financial Statements:**                                     | Page                                                                                                                                                              
|---------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                       |                                                                                                                                                                   
|Audited financial statements as
      of December 31, 2005, including: |                                                                                                                                                                   
|                                                                       |                                                                                                                                                                   
|1.                                                                     | Report of Independent Registered
      Accounting Firm;                                                                                                           
|                                                                       |                                                                                                                                                                   
|2.                                                                     | Balance Sheets as of December
      31, 2005 and 2004;                                                                                                            
|                                                                       |                                                                                                                                                                   
|3.                                                                     | Statements of Operations
      for the years ended December 31, 2005, 2004 and 2003 and the period from
      inception on February 20, 2001 to December 31, 2005;
|                                                                       |                                                                                                                                                                   
|4.                                                                     | Statements of Cash Flows
      for the years ended December 31, 2005, 2004 and 2003 and the period from
      inception on February 20, 2001 to December 31, 2005;
|                                                                       |                                                                                                                                                                   
|5.                                                                     | Statements of Stockholders
      Equity (Deficiency) for the period from February 20, 2001 (date of inception)
      through December 31, 2005; and              
|                                                                       |                                                                                                                                                                   
|6.                                                                     | Notes to the Financial
      Statements.                                                                                                                          

16

---







IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

Financial Statements 
  (Stated In U.S. Dollars)

December 31, 2005 and 2004





F-1

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of 
  Ireland Inc. (Formerly Merritt Ventures Corp.) 
  (An Exploration Stage Company)

We have audited the accompanying balance sheets of Ireland
  Inc. (Formerly Merritt Ventures Corp.)(the Company) (an Exploration
  Stage Company) as at December 31, 2005 and 2004, the related statements of operations,
  stockholders equity (deficiency) and cash flows for each of the year then
  ended December 31, 2005 and 2004 and for the period from February 20, 2001 (inception)
  to December 31, 2005. These financial statements are the responsibility of the
  Companys management. Our responsibility is to express an opinion on these
  financial statements based on our audits. We did not audit the Companys
  financial statements as of and for the year ended December 31, 2003, and the
  cumulative data from February 20, 2001 (inception) to December 31, 2003 in the
  statements of operations, stockholders equity (deficiency) and cash flows,
  which were audited by other auditors whose report, dated June 16, 2004, which
  expressed an unqualified opinion, has been furnished to us. Our opinion, insofar
  as it relates to the amounts included for cumulative data from February 20,
  2001 (inception) to December 31, 2003, is based solely on the report of the
  other auditors.

We conducted our audits in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform an audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. An audit includes
  examining, on a test basis, evidence supporting the amounts and disclosures
  in the financial statements. An audit also includes assessing the accounting
  principles used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation. We believe that our audits provide
  a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
  fairly, in all material respects, the financial position of Ireland Inc.
  (Formerly Merritt Ventures Corp.)(an Exploration Stage Company) as at December
  31, 2005 and 2004 and the results of its operations and its cash flows for each
  of the year then ended, and for the period from inception from February 20,
  2001 (inception) to December 31, 2005 in conformity with accounting principles
  generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
  the Company will continue as a going concern. As discussed in Note 1 to the
  financial statements, the Company has suffered recurring losses and net cash
  outflows from operations since inception. These factors raise substantial doubt
  about the Companys ability to continue as a going concern. Managements
  plans in regard to these matters are also described in Note 1. These financial
  statements do not include any adjustments that might result from the outcome
  of this uncertainty.

/s/ TELFORD SADOVNICK, P.L.L.C.

CERTIFIED PUBLIC ACCOUNTANTS

Bellingham, Washington 
  March 28, 2006

F-2

---

IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

BALANCE SHEETS 
  (Stated in U.S. Dollars)

|                                                           |   | December 31 |  
|---------------------------------------------------------- | - | ----------- | -
|                                                           |   | 2005        |  
|                                                           |   |             |  
|ASSETS                                                     |   |             |  
|                                                           |   |             |  
|Current                                                    |   |             |  
|Cash                                                       | $ | 63,242      |  
|                                                           |   |             |  
|LIABILITIES                                                |   |             |  
|                                                           |   |             |  
|Current                                                    |   |             |  
|Accounts payable and accrued liabilities                   | $ | 20,601      |  
|Due to related parties                                     |   | 6,790       |  
|                                                           |   | 27,391      |  
|STOCKHOLDERS EQUITY (DEFICIENCY)                          |   |             |  
|                                                           |   |             |  
|Share Capital                                              |   |             |  
|Authorized:                                                |   |             |  
|100,000,000 common voting stock with a par value of $0.001 |   |             |  
|per share                                                  |   |             |  
|                                                           |   |             |  
|Issued:                                                    |   |             |  
|9,137,500 common
      stock (7,437,500 in 2004)           |   | 9,138       |  
|                                                           |   |             |  
|Additional paid-in
      capital                           |   | 229,612     |  
|                                                           |   |             |  
|Deficit Accumulated During The Exploration
      Stage     |   | (202,899    | )
|                                                           |   |             |  
|                                                           |   | 35,851      |  
|                                                           |   |             |  
|                                                           | $ | 63,242      |  

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

F-3

---

IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

STATEMENTS OF OPERATIONS 
  (Stated in U.S. Dollars)

|                                     |   |             |  |   |             |  |   |           |  |   | Cumulative  | 
|------------------------------------ | - | ----------- |  | - | ----------- |  | - | --------- |  | - | ----------- | 
|                                     |   |             |  |   |             |  |   |           |  |   | Period From | 
|                                     |   |             |  |   |             |  |   |           |  |   | February 20 | 
|                                     |   |             |  |   |             |  |   |           |  |   | 2001        | 
|                                     |   |             |  |   |             |  |   |           |  |   | (Inception) | 
|                                     |   | Year Ended  |  |   | To          | 
|                                     |   | December 31 |  |   | December 31 | 
|                                     |   | 2005        |  |   | 2004        |  |   | 2003      |  |   | 2005        | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|Revenue                              | $ | -           |  | $ | -           |  | $ | -         |  | $ | -           | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|Expenses                             |   |             |  |   |             |  |   |           |  |   |             | 
|Administrative fees                  |   | 900         |  |   | 6,000       |  |   | 6,068     |  |   | 19,468      | 
|Exploration expenses                 |   | 3,000       |  |   | -           |  |   | -         |  |   | 10,856      | 
|Mineral property and option payments |   | 6,000       |  |   | 6,000       |  |   | 1,000     |  |   | 14,000      | 
|Office and sundry                    |   | 270         |  |   | 274         |  |   | 557       |  |   | 3,643       | 
|Professional fees                    |   | 35,383      |  |   | 34,776      |  |   | 20,921    |  |   | 133,161     | 
|Regulatory fees                      |   | 5,722       |  |   | 950         |  |   | 970       |  |   | 8,871       | 
|Rent                                 |   | 2,750       |  |   | 3,000       |  |   | 3,000     |  |   | 12,900      | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|Net Loss For The Period              | $ | 54,025      |  | $ | 51,000      |  | $ | 32,516    |  | $ | 202,899     | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|Basic And Diluted Loss Per Share     | $ | 0.01        |  | $ | 0.01        |  | $ | 0.01      |  |   |             | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|                                     |   |             |  |   |             |  |   |           |  |   |             | 
|Weighted Average Number Of Shares    |   |             |  |   |             |  |   |           |  |   |             | 
|Outstanding                          |   | 7,971,966   |  |   | 7,437,500   |  |   | 7,437,500 |  |   |             | 

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

F-4

---

IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

STATEMENTS OF CASH FLOWS 
  (Stated in U.S. Dollars)

|                                                    |   |             |   |   |             |   |   |         |   |   | Cumulative  |  
|--------------------------------------------------- | - | ----------- | - | - | ----------- | - | - | ------- | - | - | ----------- | -
|                                                    |   |             |   |   |             |   |   |         |   |   | Period From |  
|                                                    |   |             |   |   |             |   |   |         |   |   | February 20 |  
|                                                    |   |             |   |   |             |   |   |         |   |   | 2001        |  
|                                                    |   |             |   |   |             |   |   |         |   |   | (Inception) |  
|                                                    |   | Year Ended  |   |   | To          |  
|                                                    |   | December 31 |   |   | December 31 |  
|                                                    |   | 2005        |   |   | 2004        |   |   | 2003    |   |   | 2005        |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Cash provided by (used in):                         |   |             |   |   |             |   |   |         |   |   |             |  
|Operating Activities                                |   |             |   |   |             |   |   |         |   |   |             |  
|Net loss for the
      period                       | $ | (54,025     | ) | $ | (51,000     | ) | $ | (32,516 | ) | $ | (202,899    | )
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Changes in non-cash
      operating working capital |   |             |   |   |             |   |   |         |   |   |             |  
|items:                                              |   |             |   |   |             |   |   |         |   |   |             |  
|Accounts payable and accrued liabilities            |   | (54,398     | ) |   | 49,070      |   |   | 25,929  |   |   | 20,601      |  
|Prepaid
      expenses                              |   | -           |   |   | -           |   |   | 750     |   |   | -           |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|                                                    |   | (108,423    | ) |   | (1,930      | ) |   | (5,837  | ) |   | (182,298    | )
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Financing Activities                                |   |             |   |   |             |   |   |         |   |   |             |  
|Issuance of common
      stock                      |   | 170,000     |   |   | -           |   |   | -       |   |   | 238,750     |  
|Advances from related parties                       |   | 1,650       |   |   | 1,000       |   |   | 4,140   |   |   | 6,790       |  
|                                                    |   | 171,650     |   |   | 1,000       |   |   | 4,140   |   |   | 245,540     |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Increase (Decrease) In Cash                         |   | 63,227      |   |   | (930        | ) |   | (1,697  | ) |   | 63,242      |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Cash, Beginning Of Period                           |   | 15          |   |   | 945         |   |   | 2,642   |   |   | -           |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Cash, End Of Period                                 | $ | 63,242      |   | $ | 15          |   | $ | 945     |   | $ | 63,242      |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|                                                    |   |             |   |   |             |   |   |         |   |   |             |  
|Supplemental Disclosure Of Cash Flow Information    |   |             |   |   |             |   |   |         |   |   |             |  
|Cash paid during the period for:                    |   |             |   |   |             |   |   |         |   |   |             |  
|Interest paid                                       | $ | -           |   | $ | -           |   | $ | -       |   | $ | -           |  
|Income taxes paid                                   |   | -           |   |   | -           |   |   | -       |   |   | -           |  

The accompanying notes are an integral part of these financial
  statements. 
  F-5

---

IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

STATEMENT OF STOCKHOLDERS EQUITY (DEFICIENCY) 
  (Stated in U.S. Dollars)

PERIOD FROM FEBRUARY 20, 2001 (INCEPTION) TO DECEMBER 31, 2005

DeficitCommon Stock
      
      
      AccumulatedAdditional
      
      
      During ThePaid-In
      
      
      ExplorationShares
      
      
      Amount
      
      
      Capital
      
      
      Stage
      
      
      TotalStock issued for cash at $0.001
      
      5,000,000
      
      $
      5,000
      
      $
      -
      
      $
      -
      
      $
      5,000Stock issued for cash at $0.01
      
      2,000,000
      
      
      2,000
      
      
      18,000
      
      
      -
      
      
      20,000Stock issued for cash at $0.10
      
      437,500
      
      
      438
      
      
      43,312
      
      
      -
      
      
      43,750Net loss
      
      -
      
      
      -
      
      
      -
      
      
      (16,045
      )
      
      (16,045
      )Balance, December 31, 2001
      
      7,437,500
      
      
      7,438
      
      
      61,312
      
      
      (16,045
      )
      
      52,705Net loss
      
      -
      
      
      -
      
      
      -
      
      
      (49,313
      )
      
      (49,313
      )Balance, December 31, 2002
      
      7,437,500
      
      
      7,438
      
      
      61,312
      
      
      (65,358
      )
      
      3,392Net loss
      
      -
      
      
      -
      
      
      -
      
      
      (32,516
      )
      
      (32,516
      )Balance, December 31, 2003
      
      7,437,500
      
      
      7,438
      
      
      61,312
      
      
      (97,874
      )
      
      (29,124
      )Net loss
      
      -
      
      
      -
      
      
      -
      
      
      (51,000
      )
      
      (51,000
      )Balance, December 31, 2004
      
      7,437,500
      
      
      7,438
      
      
      61,312
      
      
      (148,874
      )
      
      (80,124
      )Stock issued for cash at $0.10
      
      1,700,000
      
      
      1,700
      
      
      168,300
      
      
      -
      
      
      170,000Net loss
      
      -
      
      
      -
      
      
      -
      
      
      (54,025
      )
      
      (54,025
      )Balance, December 31, 2005
      
      9,137,500
      
      $
      9,138
      
      $
      229,612
      
      $
      (202,899
      )
      $
      35,851


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

F-6

---

IRELAND INC.(Formerly Merritt Ventures Corp.)(An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|1. | OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Organization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Ireland Inc. (formerly Merritt Ventures Corp.) (the
        Company) was incorporated in the State of Nevada, U.S.A.,
        on February 20, 2001. On December 19, 2005, the Company changed its name
        to Ireland Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Exploration Stage Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Company has been in the exploration stage since
        its formation and has not yet realized any revenues from its planned operations.
        It is primarily engaged in the acquisition and exploration of mining properties.
        Upon location of a commercial minable reserve, the Company expects to
        actively prepare the site for its extraction and enter a development stage.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The accompanying financial statements have been prepared
        assuming the Company will continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | As shown in the accompanying financial statements, the
        Company has incurred a net loss of $202,899 for the period from February
        20, 2001 (inception) to December 31, 2005, and has no revenue. The future
        of the Company is dependent upon its ability to obtain financing and upon
        future profitable operations from the development of its mineral properties.
        Management has plans to seek additional capital through a private placement
        and public offering of its common stock. The financial statements do not
        include any adjustments relating to the recoverability and classification
        of recorded assets, or the amounts of and classification of liabilities
        that might be necessary in the event the Company cannot continue in existence.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The financial statements of the Company have been prepared
        in accordance with generally accepted accounting principles in the United
        States. Because a precise determination of many assets and liabilities
        is dependent upon future events, the preparation of financial statements
        for a period necessarily involves the use of estimates which have been
        made using careful judgement.                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The financial statements have, in managements
        opinion, been properly prepared within reasonable limits of materiality
        and within the framework of the significant accounting policies summarized
        below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Exploration Stage Enterprise                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Companys financial statements are prepared
        using the accrual method of accounting and according to the provisions
        of Statement of Financial Accounting Standards No. 7 (SFAS 7),
        Accounting and Reporting for Development Stage Enterprises,
        as it devotes substantially all of its efforts to acquiring and exploring
        mineral properties. Until such properties are acquired and developed,
        the Company will continue to prepare its financial statements and related
        disclosures in accordance with entities in the exploration stage.                                                                                                                                                                                                                     

F-7

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Mineral Property Option Payments and Exploration
        Expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company follows a policy of expensing exploration
        expenditures until a production decision is made in respect of the project
        and the Company is reasonably assured that it will receive regulatory
        approval to permit mining operations which may include the receipt of
        a legally binding project approval certificate. Such expenditures include
        acquisition, exploration and administration expenditures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Management periodically reviews the carrying value of
        its investments in mineral leases and claims with internal and external
        mining related professionals. A decision to abandon, reduce or expand
        a specific project is based upon many factors including general and specific
        assessments of mineral deposits, anticipated future mineral prices, anticipated
        future costs of exploring, developing and operating a production mine,
        the expiration term and ongoing expenses of maintaining mineral properties
        and the general likelihood that the Company will continue exploration
        on such project. The Company does not set a pre-determined holding period
        for properties with unproven deposits, however, properties which have
        not demonstrated suitable metal concentrations at the conclusion of each
        phase of an exploration program are re-evaluated to determine if future
        exploration is warranted, whether there has been any impairment in value
        and that their carrying values are appropriate.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | If an area of interest is abandoned or it is determined
        that its carrying value cannot be supported by future production or sale,
        the related costs are charged against operations in the year of abandonment
        or determination of value. The amounts recorded as mineral leases and
        claims represent costs to date and do not necessarily reflect present
        or future values.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Companys exploration activities and proposed
        mine development are subject to various laws and regulations governing
        the protection of the environment. These laws are continually changing,
        generally becoming more restrictive. The Company has made, and expects
        to make in the future, expenditures to comply with such laws and regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The accumulated costs of properties that are developed
        on the stage of commercial production will be amortized to operations
        through unit-of-production depletion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Regulatory Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company and its mineral property interest is subject
        to a variety of federal and state regulations governing land use, health,
        safety and environmental matters. The Companys management believes
        it has been in substantial compliance with all such regulations, and is
        unaware of any pending action or proceeding relating to regulatory matters
        that would affect the financial position of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Impaired Asset Policy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company periodically reviews its long-lived assets
        when applicable to determine if any events or changes in circumstances
        have transpired which indicate that the carrying value of its assets may
        not be recoverable, pursuant to guidance established in Statement of Financial
        Accounting Standards No. 144 (SFAS 144), Accounting
        for the Impairment or Disposal of Long-lived Assets. The Company
        determines impairment by comparing the undiscounted future cash flows
        estimated to be generated by its assets to their respective carrying amounts.
        If impairment is deemed to exist, the assets will be written down to fair
        value.                                                                                                                                                                                                                                                                                                                                                                                               

F-8

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Cash consists of cash on deposit with high
        quality major financial institutions, and to date has not experienced
        losses on any of its balances. The carrying amounts approximated fair
        market value due to the liquidity of these deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The preparation of financial statements in
        conformity with generally accepted accounting principles requires management
        to make estimates and assumptions that affect the reported amounts of
        assets and liabilities, and disclosure of contingent assets and liabilities
        at the date of the financial statements, and the reported amounts of revenues
        and expenses for the reporting period. Actual results could differ from
        these estimates.                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The Companys functional currency is
        the U.S. dollar. Transactions in foreign currency are translated into
        U.S. dollars as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The Company has adopted Statement of Financial
        Accounting Standards No. 109 (SFAS 109), Accounting
        for Income Taxes. This standard requires the use of an asset and
        liability approach for financial accounting, and reporting on income taxes.
        If it is more likely than not that some portion or all of a deferred tax
        asset will not be realized, a valuation allowance is recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Basic and Diluted Loss Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | In accordance with Financial Accounting Standards
        Board (FASB) Statement of Financial Accounting Standard No.
        128 (SFAS 128), Earnings Per Share, the basic
        loss per common share is computed by dividing net loss available to common
        stockholders by the weighted average number of common shares outstanding.
        Diluted loss per common share is computed similar to basic loss per common
        share except that the denominator is increased to include the number of
        additional common shares that would have been outstanding if the potential
        common shares had been issued and if the additional common shares were
        dilutive. At December 31, 2005 and 2004, the Company has no stock equivalents
        that were anti- dilutive and excluded in the earnings per share computation.

F-9

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Revenue from the sale of minerals is recognized when
        the risks and rewards of ownership pass to the purchaser, including delivery
        of the product the selling price is fixed or determinable and collectibility
        is reasonably assured. Settlement adjustments, if any, are reflected in
        revenue when the amounts are known.                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Stock-based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company accounts for employee stock-based compensation
        using the intrinsic value method prescribed in Accounting Principles Board
        Opinion (APB) No. 25 (APB 25), Accounting
        for Stock Issued to Employees, and related interpretations. Accordingly,
        compensation cost for stock options is measured as the excess, if any,
        of the fair value of the Companys common stock at the date of the
        grant over the amount an employee must pay to acquire the common stock.
        Non-employee stock- based compensation is accounted for using the fair
        value method in accordance with Statement of Financial Accounting Standard
        No. 123 (SFAS 123), Accounting for Stock-based Compensation.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Companys financial instruments consist of
        cash on deposit and accounts payable and accrued liabilities and amounts
        due to related parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Management of the Company does not believe that the
        Company is subject to significant interest, currency or credit risks arising
        from these financial instruments. The respective carrying values of financial
        instruments approximate their fair values. Fair values were assumed to
        approximate carrying values since they are short-term in nature or they
        are receivable or payable on demand.                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company has adopted Statement of Financial Accounting
        Standards No. 130 (SFAS 130), Reporting Comprehensive
        Income, which establishes standards for reporting and display of
        comprehensive income, its components and accumulated balances. When applicable,
        the Company would disclose this information on its Statement of Stockholders
        Equity. Comprehensive income comprises equity except those resulting from
        investments by owners and distributions to owners. The Company has not
        had any significant transactions that are required to be reported in other
        comprehensive income.                                                                                                       

F-10

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Asset Retirement Obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | The Company has adopted Statement of Financial Accounting
        Standards No. 143 (SFAS 143), Accounting for Asset Retirement
        Obligations, which requires that an asset retirement obligation
        (ARO) associated with the retirement of a tangible long-lived
        asset be recognized as a liability in the period in which it is incurred
        and becomes determinable, with an offsetting increase in the carrying
        amount of the associated asset. The cost of the tangible asset, including
        the initially recognized ARO, is depleted, such that the cost of the ARO
        is recognized over the useful life of the asset. The ARO is recorded at
        fair value, and accretion expense is recognized over time as the discounted
        liability is accreted to its expected settlement value. The fair value
        of the ARO is measured using expected future cash flow, discounted at
        the Companys credit-adjusted risk-free interest rate. To date, no
        significant asset retirement obligation exists due to the early stage
        of exploration. Accordingly, no liability has been recorded.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Environmental Protection and Reclamation Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | 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 removal and site
        restorations costs. Both the likelihood of new regulations and their overall
        effect upon the Company may vary from region to region and are not predictable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Environmental expenditures that relate to ongoing environmental
        and reclamation programs are charged against statements of operations
        as incurred or capitalized and amortized depending upon their future economic
        benefits. The Company does not currently anticipate any material capital
        expenditures for environmental control facilities because its property
        holding is at an early stage of exploration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | The Company has adopted Statement of Financial Accounting
        Standards No. 142 (SFAS 142), Goodwill and Other Intangible
        Assets, which requires that goodwill and intangible assets with
        indefinite life are not amortized but rather tested at least annually
        for impairment. Intangible assets with a definite life are required to
        be amortized over their useful life. The Company does not have any goodwill
        nor intangible assets with indefinite or definite life since inception.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Advertising Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | Advertising costs are expensed as incurred. No advertising
        costs were incurred in fiscal years 2005 or 2004, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

F-11

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|3. | RECENT ACCOUNTING PRONOUNCEMENTS
|-- | --------------------------------
|   |                                 
|   | a)                              
|   |                                 
|   | b)                              
|   |                                 
|   | c)                              
|   |                                 
|   | d)                              
|   |                                 
|4. | MINERAL EXPLORATION PROPERTY    
|   |                                 
|   | a)                              

F-12

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|4. | MINERAL EXPLORATION PROPERTY(Continued)
      In order to earn its interest, the Company was required
        to:
|-- | -----------------------------------------------------------------------------------------------------------------

| |  | i)  | pay US$1,250 on regulatory approval and provide
        assurance that at least $10,000 of financing has been secured by September
        30, 2004.
| |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  |     |                                                                                                                                                     
| |  | ii) | incur expenditures aggregating US$81,250 on
        exploration, maintenance or development, as follows:                                            
| |  |     |                                                                                                                                                     
| |  |     | a)                                                                                                                                                  
| |  |     | b)                                                                                                                                                  
| |  |     | c)                                                                                                                                                  

| |    | The Company had not made the required payments and the
        Claw Option Agreement lapsed in 2004.                                                                                                                                                                                                                   
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                        
| | b) | On November 30, 2004, the Company entered into a mineral
        property purchase agreement to acquire a 100% undivided interest in one
        mineral claim located in the Yellow Pine Mining District in Clark County,
        Nevada, known as the Ireland 1 Claim, for a total consideration
        of $6,000.
| |    |                                                                                                                                                                                                                                                                                                                        
| |    | On February 2, 2005, the Company made a $6,000 cash
        payment to the vendor and earned its interest in the Ireland 1 Claim.                                                                                                                                                                                      

|5. | INCOME TAXES
|-- | ------------
|   |             
|   | a)          
|   |             
|   |             

| |                                             |   | 2005    |   |   | 2004    |  
| | ------------------------------------------- | - | ------- | - | - | ------- | -
| |                                             |   |         |   |   |         |  
| | Computed expected (benefit of) income taxes | $ | (18,369 | ) | $ | (17,340 | )
| |                                             |   |         |   |   |         |  
| | Increase in valuation allowance             |   | 18,369  |   |   | 17,340  |  
| |                                             |   |         |   |   |         |  
| |                                             | $ | -       |   | $ | -       |  

F-13

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|5. | INCOME TAXES(Continued)
|-- | -----------------------
|   |                        
|   | b)                     

| |                              |   | 2005    |   |   | 2004    |  
| | ---------------------------- | - | ------- | - | - | ------- | -
| |                              |   |         |   |   |         |  
| | Operating loss carry forward | $ | 178,043 |   | $ | 133,018 |  
| | Mineral property expenses    |   | 14,000  |   |   | 8,000   |  
| | Exploration expenses         |   | 10,856  |   |   | 7,856   |  
| |                              |   |         |   |   |         |  
| |                              |   | 202,899 |   |   | 148,874 |  
| |                              |   |         |   |   |         |  
| | Statutory tax rate           |   | 34%     |   |   | 34%     |  
| |                              |   |         |   |   |         |  
| | Deferred income tax asset    |   | 68,986  |   |   | 50,617  |  
| |                              |   |         |   |   |         |  
| | Valuation allowance          |   | (68,986 | ) |   | (50,617 | )
| |                              |   |         |   |   |         |  
| |                              | $ | -       |   | $ | -       |  

| | c) | The Company has incurred operating losses and approximately
        $178,043, which, if unutilized, will expire through to 2025. Subject to
        certain restrictions, the Company has mineral property and exploration
        expenditures of $24,856 available to reduce future taxable income. Future
        tax benefits, which may arise as a result of these losses, have not been
        recognized in these financial statements, and have been offset by a valuation
        allowance. The following table lists the fiscal year in which the loss
        was incurred and the expiration date of the operating loss carry forwards:
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                               |   | Income Tax Operating Loss Carry Forward | 
| | --------------------------------------------- | - | --------------------------------------- | 
| |                                               |   | Amount                                  | 
| |                                               |   |                                         | 
| | 2001                                          | $ | 11,935                                  | 
| | 2002                                          |   | 44,567                                  | 
| | 2003                                          |   | 31,516                                  | 
| | 2004                                          |   | 45,000                                  | 
| | 2005                                          |   | 45,025                                  | 
| |                                               |   |                                         | 
| | Total income tax operating loss carry forward | $ | 178,043                                 | 

|6. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS                                                                                                                                                                                                     
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                             
|   | The Company has no significant commitments or contractual
        obligations with any parties respecting executive compensation, consulting
        arrangements or other matters. Rental of premises is on a month-to-month
        basis.

F-14

---

IRELAND INC.(Formerly Merritt Ventures Corp.)
  (An Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS 
  (Stated in U.S. Dollars)

DECEMBER 31, 2005

|7. | RELATED PARTY TRANSACTIONS                                                                                               
|-- | -------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                          
|   | Amounts due to related parties for advances to the Company
        are unsecured, without interest and are due on demand.

F-15

---

ITEM
8.                
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.

None.

ITEM
8A.                  
CONTROLS AND PROCEDURES.

Evaluation Of Disclosure Controls And Procedures

As of the end of the period covered by this report, our
management carried out an evaluation, under the supervision and with the
participation of our principal executive officer and principal financial
officer, of the effectiveness of the design and operation of our disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Exchange Act). Based on this evaluation, our principal executive officer and
principal financial officer has concluded that our disclosure controls and
procedures are, as of the date covered by this Annual Report, effective to
ensure that the information required to be disclosed by us in the reports that
we file or submit under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the SEC rules and forms.

Changes In Internal Controls Over Financial
Reporting

In connection with the evaluation of our internal controls
during our last fiscal quarter, our principal executive officer and principal
financial officer has determined that there have been no changes to our internal
controls over financial reporting that has materially affected, or is reasonably
likely to materially affect, our internal controls over financial reporting.

ITEM
8B.                  
OTHER INFORMATION.

The following Current Reports on Form 8-K have been filed by us
since the end of our third quarter for our fiscal year ended December 31, 2005:

|Date of Form 8-K | Date of Filing with the
      SEC | Description of the Form 8-K                                                                                               
|---------------- | --------------------------------- | --------------------------------------------------------------------------------------------------------------------------
|                 |                                   |                                                                                                                           
|January 10, 2006 | January 13, 2006                  | Item 5.02  Departures of Directors or Principal
      Officers; Election of Directors; Appointment of Principal Officers.
|
|

No other information or events required to be disclosed in a
report on Form 8-K have occurred since the end of our third quarter for the
fiscal year ended December 31, 2005.

17

---

PART III

ITEM
9.               
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH
SECTION 16(A) OF THE EXCHANGE ACT.

The following table sets forth the names and positions of our
officers and directors as of the filing of this Annual Report:

|Name                   | Age | Positions                                                                                
|---------------------- | --- | -----------------------------------------------------------------------------------------
|                       |     |                                                                                          
|Lorrie Ann Archibald   | 38  | President, Treasurer, Chief
      Executive Officer, Chief Financial Officer and Director
|                       |     |                                                                                          
|Christian Adolf Rommel | 39  | Secretary                                                                                

Lorrie Ann Archibald: Ms. Archibald is our President,
Chief Executive Officer, Chief Financial Officer, and Treasurer, and is a member
of our Board of Directors. Ms. Archibald was appointed to our Board of Directors
and as our President and Chief Executive Officer on February 20, 2001. Ms.
Archibald was appointed as our Treasurer and Chief Financial Officer on January
10, 2006.

Ms. Archibald served as a stockbrokers sales assistant at
Continental Securities (which later became Yorkton Securities) from December of
1988 to September of 1992. From September of 1992 to February of 1999 Ms.
Archibald was a registered representative with Canaccord Capital Corp.
(Investment Dealers). During the period from January 1997 to October 1998 she
was also licensed with First Securities, a member of the NASD. During the period
from December 1998 to her current employment with the Company, she was a
self-employed investor. Since July of 2001 she has served as President and a
Director of Nubio Ventures Inc., a non-reporting mineral exploration company
that trades on the pink sheets. In June of 2001 she obtained a free miners
license in the Province of British Columbia, Canada and since that date has been
involved in the acquisition and disposition of mineral claims in British
Columbia.

Christian Adolf Rommel: Mr. Rommel was appointed as our
Secretary effective November 17, 2004. Since 1996, Mr. Rommel has owned and
operated Rommel Homes Ltd., a builder of custom residential housing in British
Columbia, Canada on a full-time basis.

TERMS OF OFFICE

Our directors are appointed for a one-year term to hold office
until the next annual general meeting of our stockholders or until removed from
office in accordance with our bylaws. Our officers are appointed by our Board of
Directors and hold office until removed by the Board.

SIGNIFICANT EMPLOYEES

We have no significant employees other than the officers and
directors described above.

AUDIT COMMITTEE

We are not a listed issuer and as such our Board of Directors
is not required to maintain a separately-designated standing audit committee. As
a result, our entire Board of Directors acts as our audit committee. Our Board
of Directors has determined that we do not presently have a director who meets
the definition of an audit committee financial expert. We believe that the
cost related to appointing a financial expert to our Board of Directors at this
time is prohibitive.

18

---

CODE OF ETHICS

We adopted a Code of Ethics applicable to our officers and
directors which is a "code of ethics" as defined by applicable rules of the SEC.
If we make any amendments to our Code of Ethics other than technical,
administrative, or other non-substantive amendments, or grant any waivers,
including implicit waivers, from a provision of our Code of Ethics to our Chief
Executive Officer, Chief Financial Officer, or certain other finance executives,
we will disclose the nature of the amendment or waiver, its effective date and
to whom it applies in a current report on Form 8-K filed with the SEC.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE
ACT

Section 16(a) of the Exchange Act requires our executive
officers and directors, and persons who beneficially own more than 10% of our
equity securities (collectively, the Reporting Persons), to file reports of
ownership and changes in ownership with the SEC. Reporting Persons are required
by SEC regulation to furnish us with copies of all forms they file pursuant to
Section 16(a). Based on our review of the copies of such forms received by us,
other than as described below, no other reports were required for those persons.
We believe that, during the year ended December 31, 2005, all Reporting Persons
complied with all Section 16(a) filing requirements applicable to them.

The following persons have failed to file, on a timely basis,
the identified reports required by Section 16(a) of the Securities Exchange Act
of 1934:

|                                  | Number
      of Late | Transactions Not | Known
      Failures to File
|--------------------------------- | -------------------- | ---------------- | ----------------------------
|Name
      and Principal Position | Reports              | Timely Reported  | a
      Required Form       
|                                  |                      |                  |                             
|                                  |                      |                  |                             
|Lorrie Ann Archibald,             |                      |                  |                             
|Chief Executive Officer, Chief    | One                  | One              | None                        
|Financial Officer, President,     |                      |                  |                             
|Treasurer and Director            |                      |                  |                             

ITEM
10.               
EXECUTIVE COMPENSATION.

COMPENSATION TO EXECUTIVE OFFICERS

Since our inception on February 20, 2001, no compensation has
been awarded to, earned by or paid to our executive officers by us or any other
persons.

STOCK OPTION GRANTS

Since our inception on February 20, 2001, we have not granted
any stock options or stock appreciation rights to any of our executive
officers.

LONG-TERM INCENTIVE PLANS

We do not have any long-term incentive plans, pension plans, or
similar compensatory plans for our directors or executive officers.

COMPENSATION OF DIRECTORS

We have no arrangements for the compensation of any of our
directors.

19

---

EMPLOYMENT CONTRACTS

We have no employment contracts, termination of employment or
change-in-control arrangements with any of our executive officers or
directors.

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

EQUITY COMPENSATION PLANS

We have no equity compensation plans (including individual
compensation arrangements) under which our equity securities are authorized for
issuance.

Equity Compensation Plan Information

Plan Category
    Number of Securities to
      be Issued Upon Exercise of Outstanding Options, Warrants and
      Rights (a)
    Weighted-Average
      Exercise Price of Outstanding Options, Warrants and Rights
      (b)
    Number of Securities Remaining
      Available for Future Issuance Under Equity Compensation Plans
      (Excluding Securities Reflected in column (a)) (c)Equity Compensation Plans Approved By
      Security Holders
    Not Applicable
    Not Applicable
    Not ApplicableEquity Compensation Plans Not Approved By
      Security Holders
    Not Applicable
    Not Applicable
    Not Applicable


SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The following table sets forth certain information concerning
the number of shares of our common stock owned beneficially as of January 27,
2006 by: (i) each person (including any group) known to us to own more than five
percent (5%) of any class of our voting securities, (ii) each of our officers
and directors, and (iii) officers and directors as a group. Unless otherwise
indicated, the stockholders listed possess sole voting and investment power with
respect to the shares shown.

Title of Class
    Name and
      Address of Beneficial Owner
    Number of Shares of
      Common Stock
    Percentage of Common
      StockDIRECTORS AND OFFICERSCommon Stock
    Lorrie Ann Archibald
      President, Treasurer, Chief Executive Officer, Chief Financial
      Officer and Director 1745 Larkhall Crescent North Vancouver,
      BC V7H 2Z3
    4,550,000
    49.8%Common Stock
    Christian Adolf Rommel
      Secretary 823 East Keith Road North Vancouver, BC V7L 1W8
    None
    Nil.


20

---

Title of Class
    Name and
      Address of Beneficial Owner
    Number of Shares of
      Common Stock
    Percentage of Common
      StockCommon Stock
    All Officers and
      Directors as a Group (2 persons)
    4,550,000
    49.8%5% STOCKHOLDERSCommon Stock
    Lorrie Ann Archibald
      President, Treasurer, Chief Executive Officer, Chief Financial
      Officer and Director 1745 Larkhall Crescent North Vancouver,
      BC V7H 2Z3
    4,550,000
    49.8%


|(1) | Under Rule 13d-3, a beneficial owner of a security
      includes any person who, directly or indirectly, through any contract,
      arrangement, understanding, relationship, or otherwise has or shares: (i)
      voting power, which includes the power to vote, or to direct the voting of
      shares; and (ii) investment power, which includes the power to dispose or
      direct the disposition of shares. Certain shares may be deemed to be
      beneficially owned by more than one person (if, for example, persons share
      the power to vote or the power to dispose of the shares). In addition,
      shares are deemed to be beneficially owned by a person if the person has
      the right to acquire the shares (for example, upon exercise of an option)
      within 60 days of the date as of which the information is provided. In
      computing the percentage ownership of any person, the amount of shares
      outstanding is deemed to include the amount of shares beneficially owned
      by such person (and only such person) by reason of these acquisition
      rights. As a result, the percentage of outstanding shares of any person as
      shown in this table does not necessarily reflect the persons actual
      ownership or voting power with respect to the number of shares of common
      stock actually outstanding. As of January 27, 2006, there were 9,137,500
      shares of our common stock issued and outstanding.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CHANGES IN CONTROL

We are not aware of any arrangement that might result in a
change in control in the future.

ITEM
12.               
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

None of the following persons has any direct or indirect
material interest in any transaction to which we were or are a party during the
past two years, or in any proposed transaction to which we propose to be a
party:

|(A) | any director or officer;                                                                                                                                
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                         
|(B) | any person who beneficially owns, directly or indirectly,
      shares carrying more than 5% of the voting rights attached to our common
      stock; or
|    |                                                                                                                                                         
|(C) | any immediate relative or spouse of any of the foregoing
      persons.                                                                                 

Except as disclosed below, none of the following parties has,
during the last two years, had any material interest, direct or indirect, in any
transaction with us or in any presently proposed transaction that has or will
materially affect us:

- Any of our directors or officers;
- Any person proposed as a nominee for election as a director;
- Any person who beneficially owns, directly or indirectly, shares carrying
  more than 10% of the voting rights attached to our outstanding shares of
  common stock;
- Any of our promoters; and
- Any relative or spouse of any of the foregoing persons who has the same
  house as such person.

21

---

ITEM
13.               
EXHIBITS.

|Exhibit |  |                                                                                                                                                                                                               
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  |  | Description of Exhibit                                                                                                                                                                                        
|        |  |                                                                                                                                                                                                               
|3.1     |  | Articles of Incorporation.(1)                                                                                                                                                                                 
|        |  |                                                                                                                                                                                                               
|3.2     |  | Certificate
        of Amendment to Articles of Incorporation.                                                                                                                                                
|        |  |                                                                                                                                                                                                               
|3.3     |  | Bylaws.(1)                                                                                                                                                                                                    
|        |  |                                                                                                                                                                                                               
|10.1    |  | Option Agreement between International
        Arimex Resources Inc. and the Company to acquire a 75% undivided interest
        in the Claw Property, dated May 5, 2004.(2)                                  
|        |  |                                                                                                                                                                                                               
|10.2    |  | Amendment No. 1 to Option Agreement
        between International Arimex Resources Inc. and the Company, dated August
        18, 2004.(3)                                                                    
|        |  |                                                                                                                                                                                                               
|10.3    |  | Purchase Agreement between Multi
        Metal Mining Corp. and the Company, dated November 30, 2004.(4)                                                                                                      
|        |  |                                                                                                                                                                                                               
|14.1    |  | Code of Ethics.(3)                                                                                                                                                                                            
|        |  |                                                                                                                                                                                                               
|31.1    |  | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002.                                                       
|        |  |                                                                                                                                                                                                               
|32.1    |  | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002.
|        |  |                                                                                                                                                                                                               
|99.1    |  | Certificate of Location for the
        Ireland Claim.(4)                                                                                                                                                     
|        |  |                                                                                                                                                                                                               
|99.2    |  | Report on the Ireland Property
        by W.G. Timmins, P.Eng, dated February 1, 2005.(4)                                                                                                                     

|    |                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Previously filed as an Exhibit to our Form SB-2
      registration statement originally filed on April 18, 2002, as
    amended.                            
|(2) | Previously filed as an Exhibit to our Current Report on
      Form 8-K filed on May 21, 2004.                                                               
|(3) | Filed as an Exhibit to our Annual Report on Form 10-KSB
      for the year ended December 31, 2003, filed with the SEC on September 28,
      2004.         
|(4) | Previously filed as an Exhibit to our Annual Report on
      Form 10-KSB for the year ended December 31, 2004, filed with the SEC on
      October 21, 2005.
|    |                                                                                                                                                             

ITEM
14.               
PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The aggregate fees billed for the two most recently completed
fiscal years ended December 31, 2005 and 2004 for professional services rendered
by the principal accountant for the audit of the Corporations annual financial
statements and review of the financial statements included our quarterly reports
on Form 10-QSB and services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for these fiscal
periods were as follows:

Year Ended December 31, 2005
    Year Ended December 31, 2004Audit Fees
    $16,850
    $11,950Audit Related Fees
    Nil
    NilTax Fees
    Nil
    NilAll Other Fees
    Nil
    NilTotal
    $16,850
    $11,950


22

---

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|      |                |  |     | IRELAND INC.                                                       
|----- | -------------- |  | --- | -------------------------------------------------------------------
|      |                |  |     |                                                                    
|      |                |  |     |                                                                    
|Date: | April 11, 2006 |  | By: | /s/
      Lorrie Ann Archibald                                     
|      |                |  |     | LORRIE ANN ARCHIBALD                                               
|      |                |  |     | President, Treasurer,                                              
|      |                |  |     | Chief Executive Officer and Chief Financial
      Officer          
|      |                |  |     | (Principal Executive Officer and Principal
      Financial Officer)
|      |                |  |     | Director                                                           

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

|Date: | April 11, 2006 |  | By: | /s/
      Lorrie Ann Archibald                                     
|----- | -------------- |  | --- | -------------------------------------------------------------------
|      |                |  |     | LORRIE ANN ARCHIBALD                                               
|      |                |  |     | President, Treasurer,                                              
|      |                |  |     | Chief Executive Officer and Chief Financial
      Officer          
|      |                |  |     | (Principal Executive Officer and Principal
      Financial Officer)
|      |                |  |     | Director                                                           

23

---