SECURITIES AND EXCHANGE COMMISSION
             WASHINGTON, D.C. 20549
                     FORM 10-QSB

[x]     Quarterly Report Pursuant to Section 13 or 15(d) Securities
Exchange Act of 1934 for Quarterly Period Ended December 31, 2002

-OR-

[ ]     Transition Report Pursuant to Section 13 or 15(d) of the
Securities And Exchange Act of 1934 for the transaction period from
_________ to________

Commission File Number      000-22965


              Pinnacle Resources, Inc.
---------------------------------------------------
        (Exact name of registrant as specified
                   in its charter)
<TABLE>
<CAPTION>

                                               <c>
Wyoming                                       84-1414869
--------------------------------------------------------------
(State or other jurisdiction                (I.R.S. Employer
of incorporation or organization         Identification Number)


9600 E. Arapahoe Road, Suite 260,
  Englewood, Colorado                              80112
--------------------------------------------------------------
 (Address of principal executive offices,         Zip Code)
</TABLE>
                   303-705-8600
---------------------------------------------------
            (Registrant's telephone number,
                including area code)


Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 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 [   ]

The number of outstanding shares of the registrant's common stock,
December 31, 2002:
  Common Stock  -  17,135,050









<PAGE>2

       PART I -- FINANCIAL INFORMATION

ITEM 1 -- FINANCIAL STATEMENTS

               PINNACLE RESOURCES, INC.
             (A Development Stage Company)

            Index to Condensed Consolidated
                    Financial Statements

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
<TABLE>
<CAPTION>

                                                                 <c>
Condensed consolidated balance sheet,
   December 31, 2002 (unaudited)                                     3
Condensed consolidated statements of operations
   for the six and three months ended December 31,
   2002 and 2001                                                     4
Condensed consolidated statements of cash flows for the
   six and three months ended December 31, 2002 and 2001
     (unaudited)                                                     6
Notes to condensed consolidated financial statements (unaudited)     7
</TABLE>



<PAGE>3
                       PINNACLE RESOURCES, INC.
                 Condensed Consolidated Balance Sheet
                          December 31, 2002
                             (unaudited)

                                Assets
<TABLE>
<CAPTION>
Current assets:

                                                                 <c>
 Cash                                                             $ 31,067
 Accounts receivable                                                 5,625
 Investment in trading securities, at fair value (Note 5)          200,000
 Inventory                                                          13,484
                                                                 ---------
      Total current assets                                         250,176
Property and equipment, net of accumulated
 Depreciation                                                      247,829
Other assets:
 Investment in Joint Venture (Note 5)                              302,340
 Due from related party (Note 2)                                 .  10,487
 Investment in available-for-sale securities, at fair value
       (Note 5)                                                  1,268,665
 Other                                                               7,158
                                                                 ---------
                                                                $2,086,655
                                                                ==========
Liabilities and Shareholders' Deficit

Current liabilities:
 Accounts and notes payable:
  Accounts payable                                               $ 54,704
  Note payable to bank                                             20,000
 Other current liabilities                                          9,691
 Deferred revenue (Note 5)                                        250,000
                                                               ----------
      Total current liabilities                                   334,395
Noncurrent liabilities:
 Deferred revenue (Note 5)                                      1,959,145
                                                               ----------
      Total liabilities                                         2,293,540
                                                               ----------
Shareholders' deficit:

 Preferred stock                                                        -
 Common stock                                                         174
 Additional paid-in capital                                     3,007,009
 Outstanding stock options                                         48,065
 Accumulated comprehensive income                               1,299,411
 Deficit accumulated during the development stage              (4,561,544)
                                                               ----------
      Total shareholders' deficit                                (206,885)
                                                               ----------
                                                               $2,086,655
                                                               ==========
</TABLE>
See accompanying notes to consolidated financial statements


<PAGE>4

                         PINNACLE RESOURCES, INC.
               Condensed Consolidated Statements of Operations
                                (unaudited)
<TABLE>
<CAPTION>
                                             Six Months Ended        Three Months Ended
                                               December 31,             December 31,
                                            ------------------       ------------------
                                            2002          2001       2002          2001
                                            ----          ----       ----          ----

                                          <c>          <c>         <c>        <c>
Operating expenses:
 Prospecting costs                       $  6,209     $  39,917    $  5,884   $ 10,759
 General and administrative costs         229,359       178,900     168,279    104,349
 Stock based compensation costs             3,600             -           -          -
 Consulting expenses paid to related
     parties  (Note 2)                     25,188             -      15,772          -
 Losses of subsidiary                           -       172,281           -          -
                                         --------     ---------     -------   --------
                                          264,356       391,098     189,935    115,108
                                         --------     ---------     -------   --------
Income/loss before income taxes,
     nonoperating income and interest
        expense                          (264,356)     (391,098)   (189,935)  (115,108)

 Gain on sale of subsidiary (Note 4)      752,430             -     130,782          -
 Gain on sale of stock (Note 4)           301,646             -       9,457          -
 Other nonoperating income
   (expense), net                          25,059        (2,468)     25,059     (2,313)
 Interest (expense):
  Related party (Note 2)                     (243)            -        (243)         -

      Income/loss before
       income taxes                       814,536      (393,566)    (24,880)  (117,421)

 Income tax provision (Note 6)                  -             -           -          -
                                        ---------    ----------   ---------  ----------
      Net income/loss                   $ 814,536    $ (393,566)  $ (24,880) $(117,421)
                                        =========    ==========   =========  =========
Basic and diluted loss per share        $    0.05    $    (0.03)  $   (0.00) $   (0.01)
                                        =========    ==========   =========  =========
Weighted average common shares
   Outstanding                         17,278,764    13,785,050  17,343,050 13,785,050
                                       ==========    ==========  ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements


<PAGE>5
                          PINNACLE RESOURCES, INC.
              Condensed Consolidated Statements of Cash Flows
                                 (unaudited)
<TABLE>
<CAPTION>
                                                             Six Months Ended
                                                                December 31,
                                                            -------------------
                                                            2002           2001
                                                            ----           ----

                                                         <c>            <c>
Cash flows from operating activities:
 Net income/loss                                         $ (24,880)  $ (276,145)
  Adjustments to reconcile net loss to cash flows
  from operating activities:
   Common stock issued for services (Note 8)                 48,000   1,954,695
   Depreciation and amortization                              4,336      68,564
   Write-down of notes receivable                                 -       5,105
   Loss on asset impairement (Note 8)                             -     337,535
   Cash received from the sale of trading securities        297,155           -
   Changes in current assets and current liabilities:
     Gain deferred on sale of subsidiary                   (522,543)          -
     Increase in receivables                                (82,905)     80,041
     Increase in accounts payable and
            accrued liabilities                             459,573     469,417
                                                        -----------  ----------
       Net cash (used in) operating activities           $ (312,725) $ (244,592)
                                                        -----------  ----------
Cash flows from investing activities:
 Cash received from sale of marketable securities           702,840           -
 Purchase of equipment                                     (108,882)      (1,201)
 Proceeds from the sale of joint venture partner             25,000       (1,201)
 Advances made to joint venture partners                   (300,000)           -
                                                        -----------   ----------
        Net cash provided by (used in) investing
           activities                                       318,958       (2,402)
                                                        -----------    ---------
Cash flows from financing activities:
 Advances from officer/shareholder                                -     250,000
 Proceeds from loans                                         20,000      76,440
 Principal payments on capital lease                              -        (914)
 Principal payments on line of credit                             -           -
                                                        -----------  ----------
        Net cash provided by financing activities            20,000     325,526
                                                        -----------  ----------
        Net change in cash                                   26,233      78,532
Cash:
 Beginning of period                                          4,834      78,269
                                                        -----------  ----------
 End of period                                             $ 31,067   $ 156,801
                                                        ===========  ==========
Supplemental disclosure of cash flow information:
 Cash paid during the year for:
  Interest                                                 $      -   $       -
                                                        ===========  ==========
  Income taxes                                             $      -   $       -
                                                        ===========  ==========
Non-cash financing and investing activities:
 Common stock issued as repayment for debt                 $       -  $       -
 Unrealized holding gain                                   $       -  $       -
</TABLE>
See accompanying notes to consolidated financial statements

<PAGE>6

Note 1:  Basis of presentation
The financial statements presented herein have been prepared by
the Company in accordance with the accounting policies in its
Form 10-KSB dated June 30, 2002, and should be read in
conjunction with the notes thereto.

In the opinion of management, all adjustments (consisting only
of normal recurring adjustments) which are necessary to provide
a fair presentation of operating results for the interim period
presented have been made. The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the year.

Interim financial data presented herein are unaudited.

Note 2: Related Party transactions
The Company paid consulting fees to related parties totaling
$25,188 and $-0- during the six months ended December 31, 2002
and 2001.

The Company paid legal fees on behalf of its president of
$7,623 and $-0- during the six months ended December 30, 2002
and 2001.  The payment was recorded as due from related party
in the accompanying financial statements.

Note 3:  Line of credit
The Company has four lines of credit for a total of $100,000,
of which, $80,000 was unused at December 31, 2002.  Advances
made on the lines of credit carry an interest rate of prime
plus one percent and may be extended annually with the consent
of the financial institution.  The credit lines are personally
guaranteed by the president of the Company.

Note 4:  Sale of marketable equity securities
The Company sold 1,499,500 shares of Anooraq Resources, Ltd.
common stock for gross proceeds of $702,840.  The Company
recorded a gain on the sale of Plateau Resources (Pty) Ltd.
totalling $752,430 and a gain on the sale of marketable
securities totalling $301,646 during the six months ended
December 31, 2002.  As a result, the Company has a deferred
gain on the sale of Plateau of $2,350,697 and an unrealized
holding gain on Anooraq stock of $1,244,125 at December 31,
2002.

Note 5:  Investment in joint venture partner
During the six months ended December 31, 2002, the Company
invested $300,000 in Diamonaire Exploration (PTY) Ltd.

Note 6:  Shareholders' equity
During the six months ended December 31, 2002, the Company
issued 90,000 shares of its common stock to professionals for
services rendered.

During the six months ended December 31, 2002, the Company
granted an officer an option to purchase 1,000,000 shares of
common stock at $.05 per share.  The quoted market price of the
Company's common stock was $.03 per share at the grant date.
Because the officer is considered an employee, no compensation
expense was recorded.

<PAGE>7

During the six months ended December 31, 2002, the Company
granted a consultant an option to purchase 20,000 shares of
common stock at $.07 per share.  The quoted market price of the
Company's common stock was $.03 per share at the grant date.
Because the consultant is a nonemployee, $900 ion compensation
expense was recorded.

Note 7:  Income taxes
The Company records its income taxes in accordance with
Statement of Financial Accounting Standard No. 109, "Accounting
for Income Taxes".  The Company offset operating profits during
the six months ended December 31, 2002 against a deferred tax
asset, which was fully allowed for; therefore, the net benefit
and expense resulted in $-0- income taxes.






<PAGE>8

Item 2. Management's Discussion and Analysis or Plan of Operations

In January 2002, Pinnacle created a Nevada Corporation by the name of
Titan Intellectual Ltd which was set up as a wholly owned subsidiary.
Titan Intellectual then contracted with Dr. Jan Becker of Pretoria,
South Africa to acquire and hold all of Dr. Becker's know-how,
capability, process expertise and the patentability of certain designs
and methodologies for the treatment and purification of vanadium,
titanium, and tantalum ores and concentrates.

In February 2002 Titan Intellectual then licensed the Becker technology
and technique to Titan Processors (Pty) Ltd, a South African
corporation with the expectation that Titan Processors would erect a
processing facility for concentrates of tantalite in order to refine
the tantalite ore into highly purified tantalum oxide.  The processing
facility is almost complete.   The Phase I facility that would provide
the tantalite concentrates that Titan would refine into tantalite oxide
is still under construction.  Once Phase I is on line and the company
has orders, production will begin.   The Licensing Agreement was let to
Titan based upon a royalty of Five (5%) of the gross plus a Fifteen
(15%) Percent participation in the net profits of Titan after payback
of its loan for start-up capital of the refinery.

Also in February, Pinnacle Resources agreed to issue 100,000 shares of
stock from its treasury to Dr. Becker for consulting to erect and
oversee construction of the tantalite refinery; and then another
100,000 shares upon the completion of the refinery; and additional
100,000 share blocks of common stock based upon million dollar
increments of profitability of Titan Processors (Pty) Ltd until Dr.
Becker has realized a total of One Million shares.  Pinnacle also
agreed to exclusively retain Dr. Becker at a salary of US$4,000 per
month the obligation of which will be paid by Titan Processors.
Additionally, Pinnacle holds the sole option to acquire up to 85% of
Titan Processors.  Titan Processors refinery installation is being
placed upon the milling and processing campus of Rappa Holdings, LLC
utilizing Rappa's hazardous materials license and for this concession
Rappa earned an option to acquire the remaining 15% of Titan Processors
one year after the refinery starts cash flow.

Pinnacle sought to achieve financing for Titan Processors and therefore
retained the services of a legal financial specialist, Greg Bartko, who
operates under the name of Capstone Capital.  Capstone proceeded to
arrange for Titan Intellectual to issue Convertible Debentures in
tranches of $200,000 under a Rule 504 Private Placement Subscription.
Upon completion of the initial tranche of $200,000, of which Barkto,
etals deducted $44,000 in fees, Capstone then orchestrated the merger
of Titan Intellectual into

Pinnacle Resources such that Pinnacle was then responsible to issue its
shares for the convertible debentures when a conversion notice was
presented.  The net result was that the investors tried to convert when
the stock price of Pinnacle was depressed.  Company management objected
and settlement was achieved in lieu of litigation.  The net result was
that an additional three million shares of Pinnacle common stock was
issued.  Net monies derived from this transaction have been used in
part ($56,000) for operational expense reimbursement to Pinnacle and
the balance ($100,000) has been committed toward a loan to Titan
Processors in order to fund the tantalum refinery in South Africa.
Loan terms to Titan Processors call for interest to be set at South



<PAGE>9

Africa's prime rate plus two percent (16%) with an amortization
schedule of three years commencing six months after the refinery is
operational; however, management may accelerate the payback if
feasible.

In July 2002 management reviewed its ongoing commitment to Society
Alpha Plus to complete the funding of the Kanteya River Diamond
Recovery Project in Guinea West Africa.  The company has been able to
achieve only partial project financing and management was unwilling to
contribute 100% of the cash investment required to bring the project to
first level production.   As a result the Kanteya River project has
been put on hold pending the availability of higher risk capital and
the company has instead elected to pursue, through the introduction by
Society Alpha Plus, an South African west coat ocean diamond recovery
project that has proven diamond recoveries.  The project is housed in a
new South African proprietorship, Diamonaire Pty Limited, and is
jointly owned by the company and Ocean Options.

The principal of Ocean Options is Mr. Chris Wilson and he has several
years direct experience in operations of diamond recoveries in the
hazardous shores of west coast South Africa.  Mr. Wilson has developed
new technology, called Ocean Walker, that addresses the main obstacles
encountered and endured by diamond gravel dredging from equipped boats
that work the shallows for diamoniferous gravels.  Mr. Wilson is in the
process of testing the Ocean Walker which should be in production
shortly.   Management was sufficiently impressed with the equipment
design and the shore concessions subleased to Diamonaire by Transhex
Corporation which together with a processing agreement utilizing the
existing Tranhex diamond separation plant.  The company made a
US$300,000 financial commitment to Diamonaire in the form of a two year
loan repayable at LIBOR plus 2% and a 50% equity position in
Diamonaire.  As of the end of this first quarter $300,000 of the
promised funds had been advanced to Diamonaire.   Operations are
estimated to commence after construction of the first Ocean Walker
sometime in early 2003.

Capital Resources and Source of Liquidity.

For the six months ended December 31, 2002, Pinnacle received cash from
the sale of marketable securities (Anooraq stock) of $702,840 and
purchased equipment(the Titan refinery)of $108,882.   Additionally,
Pinnacle received proceeds from the sale of joint venture partner of
$25,000, the first installment from the sale of the interest in the
Gasification Joint Venture and made advances to joint venture partners
of $300,000.   As a result, Pinnacle had net cash provided by investing
activities of $318,958 for the six months ended December 31, 2002.

For the six months ended December 31, 2001, Pinnacle purchased
equipment of $1,201 and received proceeds from the sale of joint
venture partner of $1,201 resulting in net cash used in investing
activities of $1,201.

For the six months ended December 31, 2002, Pinnacle received proceeds
from loans of $20,000 resulting in net cash used in financing
activities of $20,000.

For the six months ended December 31, 2001, Pinnacle received proceeds
from loans of $76,440, received advances from officer/shareholder of
$250,000 and made principle payments on capital lease of $914 resulting
in net cash provided by financing activities of $325,526.

<PAGE>10

Results of Operations.   Pinnacle expects to earn consulting fees,
commissions, brokerage points and equity participation for having acted
as an arranger and go-between from having effectuated a financing
package on behalf of a client and a funding source.  To date, Pinnacle
has not yet commenced operations or received any revenues.

Pinnacle had a net income for the six months ended December 31, 2002 of
$814,536.   For the six months ended December 31, 2002, Pinnacle had
gain on the sale of subsidiary of $752,430 and gain on the sale of
stock of $301,646.   Pinnacle incurred prospecting costs of $6,209,
general and administrative expenses of $229,359, stock based
compensation costs of $3,600 and consulting expenses paid to related
parties of $25,188.

Pinnacle had a net loss for the six months ended December 31, 2001 of
$(393,566).   Pinnacle incurred prospecting costs of 39,917, general
and administrative expenses of $178,900, and losses of subsidiary of
$172,281.

Plan of Operation.    Pinnacle is not delinquent on any of its
obligations even though Pinnacle has not yet begun to generate revenue.
Pinnacle will identify and subsequently qualify prospective clients.
Current operations require minimal cash infusions.   Pinnacle may
borrow funds or obtain equity financing from affiliated persons or
entities to continue operations, if necessary.

Pinnacle intends to market its services utilizing cash made available
from the recent private sale of its common shares.   Pinnacle is of the
opinion that revenues from its services along with proceeds of the
private sale of its securities will be sufficient to pay its expenses
until receipt of revenues at a level to sustain operations.

Item 3. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our
chief executive officer and chief financial officer, conducted an
evaluation of our "disclosure controls and procedures" (as defined in
Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-14(c))
within 90 days of the filing date of this quarterly report on Form
10QSB (the "Evaluation Date").  Based on their evaluation, our chief
executive officer and chief financial officer have concluded that as of
the Evaluation Date, our disclosure controls and procedures are
effective to ensure that all material information required to be filed
in this quarterly report on Form 10QSB has been made known to them in a
timely fashion.

Changes in Internal Controls

There have been no significant changes (including corrective actions
with regard to significant deficiencies or material weaknesses) in our
internal controls or in other factors that could significantly affect
these controls subsequent to the Evaluation Date set forth above.



<PAGE>11

PART II - OTHER INFORMATION

Item 1. Legal Proceedings. not applicable.
Item 2. Changes in Securities and Use of Proceeds.
          not applicable.
Item 3. Defaults Upon Senior Securities.
          not applicable.
Item 4. Submission of Matters to a Vote of Security
          Holders.
          not applicable.
Item 5. Other Information. not applicable.
Item 6. Exhibits and Reports on Form 8-K.

 (a)   Reports on Form 8-K.
(b)   Exhibits.
       Exhibit 99 - Certifications pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002



                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,the
Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.

Dated:  February 24, 2003

PINNACLE RESOURCES, INC

By: /s/ Glen R. Gamble
---------------------------
Glen R. Gamble, President and Director



<PAGE>12

               CERTIFICATIONS

I, Glen R. Gamble, certify that:

1.   I have reviewed this quarterly report on Form 10QSB of Pinnacle
Resources, Inc.

2.   Based on my knowledge, the quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;

3.   Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present, in all material respects, the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:

(a)  designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;

(b)   evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the "Evaluation Date"); and

(c)   presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function):

(a)   all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and

 (b)   any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and



<PAGE>13

(6)   The registrant's other certifying officers and I have indicated
in this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

Date:  February 24, 2003

/s/Glen R. Gamble
--------------------------
Glen R. Gamble
Chief Executive Officer




<PAGE>14

               CERTIFICATIONS

I, Robert A. Hildebrand, certify that:

1.   I have reviewed this quarterly report on Form 10QSB of Pinnacle
Resources, Inc.

2.   Based on my knowledge, the quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;

3.   Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly
present, in all material respects, the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this quarterly report;

4.   The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:

(a)  designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;

(b)   evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the "Evaluation Date"); and

(c)   presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function):

(a)   all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and



<PAGE>15

(b)   any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and

(6)   The registrant's other certifying officers and I have indicated
in this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

Date:  February 24, 2003

/s/Robert A. Hildebrand
--------------------------
Robert A. Hildebrand
Chief Financial Officer