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, 2004

-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, 2004:

  Common Stock  -  16,523,050









<PAGE>2

PART I
Item I - FINANCIAL STATEMENTS

                        PINNACLE RESOURCES, INC.
                       Consolidated Balance Sheet
                           December 31, 2004
                              (unaudited)

                                 Assets
Current assets:
  Cash                                                       $ 46,529
  Receivables                                                  51,174
      Total current assets                                     97,703
  Property and equipment                                    1,074,267
  Accumulated depreciation                                  (464,475)
  Indebtedness of related parties-not current                  18,604
  Other assets                                                 65,955
                                                           ----------
                                                           $  792,054
                                                           ==========


                     Liabilities and shareholders' Equity
Current liabilities:
  Accounts payable and accrued liabilities                   $ 48,824
  Notes payable:
    To Bank                                                    50,172
    To related party (Note 2)                                 106,000
  Other current liabilities                                   351,169
  Interest payable, related party (Note 2)                      4,496
                                                           ----------
      Total current liabilities                               560,661
                                                           ----------

Minority interest in net assets of consolidated subsidiary     35,059
                                                           ----------
                                                              595,720

Commitment                                                          -

Shareholders' equity:
  Net capital of affiliate                                         10
  Preferred stock , $.01 par value; authorized 2,000,000
   shares, issued and outstanding -0- shares                        -
  Common stock , $.00001 par value; authorized 500,000,000
   shares, issued and outstanding 16,523,050 shares               166
  Additional paid-in capital                                3,316,032
  Accumulated other comprehensive income                      439,823
  Accumulated deficit                                      (3,559,697)
                                                           ----------
      Total shareholders' equity                              196,334
                                                           ----------
                                                           $  792,054
                                                           ==========





See accompanying notes to consolidated financial statements.

<PAGE>3

                        PINNACLE RESOURCES, INC.
                  Consolidated Statements of Operations
                              (unaudited)
<TABLE>
<CAPTION>
                                              Six Months               Three Months
                                          Ended December 31,        Ended December 31,
                                          2004         2003         2004        2003
                                       ----------   ----------   ----------   ----------

                                       <c>          <c>          <c>          <c>
Operating expenses:
  Prospecting costs                    $        -   $   56,988   $        -   $   (9,008)
  General and administrative costs        372,460      420,010       25,542      277,197
  Consulting expenses paid to
   related parties (Note 2)                19,000       89,000        5,000       14,500
                                       ----------   ----------   ----------   ----------
      Total operating expenses            391,460      565,998      230,542      282,689

Loss before income taxes, nonoperating
 income, interest expense and
 minority interest                       (391,460)    (565,998)    (230,542)    (282,689)

Non-operating income:
  Gain on sale of subsidiary                    -    1,239,053            -            -
  Deficit in net loss of unconsolidated
   subsidiary                                   -      (79,137)           -     (117,124)
  Other nonoperating income
   (expense), net (Note 6)                 33,144       22,174      (17,909)      13,084
  Interest income (expense), net           (2,095)      83,557      (41,076)      48,121
                                       ----------   ----------   ----------   ----------
    Income/loss before
     income taxes and minority interest  (360,411)     699,649     (289,527)    (338,608)
  Income tax provision (Note 3)                 -            -            -            -
                                       ----------   ----------   ----------   ----------
    Income before minority interest      (360,411)     699,649     (289,527)    (338,608)

Minority interest in net loss of
 consolidated subsidiary                        -       18,939            -       21,755
                                       ----------   ----------   ----------   ----------
      Net income                       $ (360,411)  $  718,588   $ (289,527)  $ (316,853)
                                       ==========   ==========   ==========   ==========

Basic and diluted income/loss
 per share                             $    (0.02)  $     0.04   $    (0.02)  $    (0.02)
                                       ==========   ==========   ==========   ==========

Weighted average common shares
 Outstanding                           16,642,024   17,133,164   16,642,024   17,543,050
                                       ==========   ==========   ==========   ==========
</TABLE>





See accompanying notes to consolidated financial statements.




<PAGE>4

                        PINNACLE RESOURCES, INC.
          Consolidated Statements of Other Comprehensive Income
<TABLE>
<CAPTION>
                                              Six Months               Three Months
                                          Ended December 31,        Ended December 31,
                                          2004         2003         2004        2003
                                       ----------   ----------   ----------   ----------

                                        <c>          <c>          <c>          <c>
Net income/loss                        $ (360,411)  $  718,588   $ (289,527)  $ (316,853)
  Other comprehensive income/loss,
   net of tax:
    Unrealized holding gain                     -            -            -            -
    Foreign currency translation         (130,862)     156,717      435,371      191,416
                                       ----------   ----------   ----------   ----------
     Comprehensive income              $ (491,273)  $  875,305   $  145,844   $ (125,437)
                                       ==========   ==========   ==========   ==========
</TABLE>





See accompanying notes to consolidated financial statements.





<PAGE>5

                        PINNACLE RESOURCES, INC.
        Consolidated Statement of Changes in Shareholders' Equity
<TABLE>
<CAPTION>
                                                                              Additional
                                          Titan          Common Stock          Paid-in
                                       Processors     Shares        Par        capital
                                       ----------   ----------   ----------   ----------

                                    <c>          <c>          <c>          <c>
Balance, July 1, 2004                  $      (10)  16,523,050   $      165   $3,306,033
Sale of common stock at $.08 per share
                                                -      125,000            1        9,999
Net deficit of affiliate                        -            -            -            -
Net loss                                        -            -            -            -
Comprehensive loss                              -            -            -            -
                                       ----------   ----------   ----------   ----------
Balance, December 31, 2004                    (10)  16,648,050          166    3,316,032
                                       ==========   ==========   ==========   ==========



<PAGE>6

                        PINNACLE RESOURCES, INC.
        Consolidated Statement of Changes in Shareholders' Equity
                           continued
                                                    Accumulated
                                                      Other
                                                  Comprehensive  Accumulated
                                                   Income/Loss     Deficit       Total
                                                    ----------   ----------   ----------
Balance, July 1, 2004                               $  570,685   (3,391,271)  $  485,602
Sale of common stock at $.08 per share                       -            -       10,000
Net deficit of affiliate                                     -            -            -
Net loss                                                     -     (360,411)    (360,411)
Comprehensive loss                                    (130,862)           -     (130,862)
                                                    ----------    ---------   ----------
Balance, December 31, 2004                             439,823   (3,751,682)       4,329
                                                    ==========   ==========   ==========
</TABLE>





See accompanying notes to consolidated financial statements.




<PAGE>7

                        PINNACLE RESOURCES, INC.
                 Consolidated Statements of Cash Flows
                              (unaudited)

                                                     Six Months
                                                 Ended December 31,
                                                 2004         2003
                                              ----------   ----------
Cash flows from operating activities:
Net cash provided by (used in) operating
 activities                                   $  (25,517)  $  467,871
                                              ----------   ----------
Cash flows from investing activities:
 Cash invested in gasification technology              -     (125,150)
 Advances to affiliates                            2,412     (123,000)
 Purchase of equipment                          (115,227)     (51,769)
 Sale of equipment                                     -            -
 Issuance of promissory notes                          -      (50,000)
 Net, advances made to joint venture
  partner (Note 5)                                     -     (134,023)
 Other corporate investments                           - (     27,549)
                                              ----------   ----------
    Net cash used in investing activities       (112,815)    (511,491)
                                              ----------   ----------

Cash flows from financing activities:
 Advances from related parties (Note 2)          (42,947)           -
 Proceeds from sale of stock                      10,000
 Proceeds from loans                             330,715            -
 Repayments of advances                         (191,039)           -
                                              ----------   ----------
    Net cash provided by financing activities    106,729            -
                                              ----------   ----------
  Effect of cumulative translation
   adjustment on cash                             22,805            -
                                              ----------   ----------
    Net change in cash                            (8,798)     (43,620)

Cash:
 Beginning of period                          $   55,327   $  215,919
                                              ----------   ----------
 End of period                                $   46,529   $  172,299
                                              ==========   ==========

Supplemental disclosure of cash flow information:
 Cash paid during the year for:
  Interest                                    $    2,551   $    5,071
                                              ==========   ==========
  Income taxes                                $        -   $        -
                                              ==========   ==========

Non-cash financing and investing activities:
Common stock issued as repayment of debt     $        -   $  150,000
                                              ==========   ==========
 Unrealized holding gain                     $        -   $3,483,620
                                              ==========   ==========

See accompanying notes to consolidated financial statements.



<PAGE>8

                           PINNACLE RESOURCES, INC.
               Notes to Unaudited Consolidated Financial Statements

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, 2004, 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 $9,000 and
$89,000, respectively, during the six months ended December 31, 2004
and 2003. As of December 31, 2004, $-0- was due to related parties for
consulting fees.

During the six months ended December 31, 2004, a related party loaned
the Company $59,000 for working capital.   The advance is due on demand
with interest at 8 percent interest.   As of December 31, 2004,
$198,496 is due to related parties in the accompanying condensed,
consolidated financial statements.

Note 3:  Lines of credit

The Company has one line of credit for a total of $50,000, of which,
$-0- was unused at December 31, 2004.  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:  Accounts and notes receivable

Accounts and notes receivable consisted of the following at December
31, 2004:

     Expenses paid on behalf of tenants
      receivable                              $   34,500
     Interest receivable                           3,476
     Short-term note receivable                   25,500
     Short-term note receivable                   25,000
                                              ----------
                                              $   88,476
                                              ==========

Note 5:  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, 2004 against a deferred tax asset, which was fully allowed
for; therefore, the net benefit and expense resulted in $-0- income
taxes.

<PAGE>9


Note 6:  Other Non-operating Income

The president lent the Company common stock in an unrelated company and
subsequently was reimbursed for its actual value.



<PAGE>10

Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations

General Information Concerning the Company

Since inception, we have acquired interests in four South African
entities:

1.   Plateau Resources (Pty) (Ltd), (Plateau);
2.   Vanadium and Magnetite Exploration and Development (Pty) (Ltd),
        (Van Mag);
3.   Titan Processors (Pty) (Ltd), (Titan); and
4.   Diamonaire (Pty) (Ltd).

In fiscal 2003 and 2002, we sold our interest in Plateau to Anooraq
Resources (Pty) (Ltd), a South African company for 7 million shares of
Anooraq common stock.

We have acquired an interest in Orovi Ghana Ltd ("OGL"), a Republic of
Ghana company, which holds a gold exploration concession in the
Republic of Ghana. Golden Star Resources, a Canadian company, which had
an option to purchase the concession at the time we acquired OGL.  The
option expired in June 2004.  In October 2004, Golden Star Resources
paid us $200,000 to extend the sales contract until June 2005.  The
$200,000 is reflected as deferred revenue in the accompanying financial
statements until the option either expires or is exercised or extended.

During the six months ended December 31, 2004, we advanced under
existing credit agreements approximately $134,000 to Diamonaire and
approximately $87,000 to Titan Processors, both South African
subsidiaries.

During the six months ended December 31, 2004, we borrowed a total of
$205,000 from the president of the Company and two shareholders.  In
addition, we drew $50,000 on our line of credit.

In addition, during the six months ended December 31, 2004, we borrowed
and repaid a total of $15,000 from a shareholder.   We sold 125,000
shares of our common stock at $.08 to an unrelated party for $10,000.

Basis of presentation of the financial statements

Our consolidated financial statements include the financial statements
of Van Mag because we own a controlling interest in their common stock.
Our consolidated financial statements also include the financial
statements of Titan Processors even though we own no Titan voting
stock. We exercise control over Titan through a majority of the seats
on Titan's Board of Directors and through the impact of certain
commercial arrangements that give us control over their operations.  In
our view, the consolidated financial statements would be incomplete
without Titan.  We changed our method of accounting in Diamonaire
Exploration Pty. Ltd. We now consolidate Diamonaire.  In fiscal year
end June 30, 2004, we accounted for the Diamonaire investment on the
equity method.



<PAGE>11

Results of operations

We reported a net loss of $360,411 ($.02 per share) for the six months
ended December 31, 2004, as compared to a net loss of $289,527 ($.02
per share) for the year earlier period.

General and administrative expenses decreased approximately 11 percent,
from $420,010 for the six months ended December 31, 2003 to $372,460
for the six months ended December 31, 2004 primarily due to reduced
travel and related expenses.

Consulting expenses paid to related parties decreased by $70,000, from
$89,000 for the six months ended December 31, 2003 to $19,000 for the
six months ended December 31, 2004.

Prospecting costs decreased from $56,988 for six months ended December
31, 2003 to $-0- for the six months ended December 31, 2004. We have
completed our vanadium and magnetite exploration project.

Inflation has not affected our operation.

However, the impact of a weakening US dollar has impacted our
operations.  In 2001, we could purchase 13 South African Rand for
$1.00.  As of June 30, 2004, the exchange rate was 6.5 Rand to $1.00,
seriously eroding our ability to finance South African operations.
Unrealized losses from foreign currency translations are included in
income.

Liquidity

In fiscal years 2003 and 2004, our ability to generate adequate amounts
of cash to meet our needs came from the sale of Anooraq common stock.
Our subsidiaries (Van Mag and Diamonaire) and affiliate (Titan) used
liquidity in those fiscal years.  Our cash position decreased from
$55,327 at June 30, 2004 to $46,529 at December 31, 2004 as a result.
Until our subsidiaries commence operations and or we sell our Ghana
gold concession to provide consolidated cash flows, we will rely on our
own common stock sales and proceeds from borrowings to finance our
operations.

Van Mag
This subsidiary is not expected to generate cash flow until such time
as we sell it or we commence mining operations.  Mining authorization
was granted in fiscal year 2004.  Profits from a sale or from mining
operations, if any, would be shared one third with our minority
interest holder.

Titan Processors
Titan did not provide any operating revenue for the six months ended
December 31, 2004 as it was engaged in expanding its plant's capacity.

Diamonaire joint venture
We own approximately 50 percent of the joint venture that owns 80
percent of the operating company, Ocean Exploration, a South African
company.  The mining equipment has been tested and is operational.
Mining did not provide any operating revenue for the six months ended
December 2004.  A new diamond mining concession has been obtained,
however we are still testing and modifying the equipment.



<PAGE>12

Our strategy in the near future is to continue to focus on developing a
substantial share of the world tantalum market and recovering diamonds
using our new equipment.  We will continue to study the feasibility of
mining magnetite and recovering the contained vanadium and titanium. We
are searching for an industry partner to joint venture the installation
of a processing facility.  Through our association with Dr. Jan Becker,
we possess a proprietary technology to separate and recover these co-
products from the iron ore. We believe that our future success will
depend on our ability to develop our current businesses and to invest
wisely in new businesses.

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>13

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 31 - Certifications pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

       Exhibit 32 - 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 22, 2005

PINNACLE RESOURCES, INC

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