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 March 31, 2005

-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,
March 31, 2005:

  Common Stock  -  16,523,050









<PAGE>2

PART I
Item I - FINANCIAL STATEMENTS

                        PINNACLE RESOURCES, INC.
                       Consolidated Balance Sheet
                             March 31, 2005
                              (unaudited)

                                 Assets
Current assets:
  Cash                                                     $   62,765
  Receivables                                                  55,272
                                                           ----------
      Total current assets                                    118,037

Property and equipment                                      1,074,267
Accumulated depreciation                                     (506,023)
Indebtedness of related parties-not current                     8,047
Other assets                                                   65,955
                                                           ----------
                                                           $  760,283
                                                           ==========

                  Liabilities and Shareholders' Equity

Current liabilities:
  Accounts payable and accrued liabilities                 $   49,377
  Notes payable:
    To Bank                                                    55,877
    To related party (Note 2)                                 128,000
  Other current liabilities                                   256,741
  Interest payable, related party (Note 2)                      1,903
  Deferred Credits                                            200,000
                                                           ----------
      Total current liabilities                               691,898
                                                           ----------

Minority interest in net assets of consolidated subsidiary     35,059
                                                           ----------
                                                              726,957

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                                              168
  Additional paid-in capital                                3,334,826
  Accumulated other comprehensive income                      658,510
  Accumulated deficit                                      (3,960,188)
                                                           ----------
      Total shareholders' equity                               33,326
                                                           ----------
                                                           $  760,283
                                                           ==========


See accompanying note to consolidated financial statements.

<PAGE>3

                        PINNACLE RESOURCES, INC.
                  Consolidated Statements of Operations
                              (unaudited)
<TABLE>
<CAPTION>
                                             Nine Months              Three Months
                                           Ended March 31,           Ended March 31,
                                          2005         2004         2005         2004
                                       ----------   ----------   ----------   ----------

                                    <c>          <c>          <c>          <c>
Operating expenses:
  Prospecting costs                    $        -   $  108,214   $        -   $  102,005
  General and administrative costs        596,218      578,548      223,758      345,589
  Stock-based compensation costs                -            -            -        3,600
  Consulting expenses paid to related
   parties (Note 2)                        21,500      105,700        2,500       80,512
                                       ----------   ----------   ----------   ----------
      Total operating expenses            617,718      792,462      226,258      531,706
                                       ----------   ----------   ----------   ----------
Loss before income taxes, nonoperating
  income, interest expense and minority
  interest                               (617,718)    (792,462)    (226,258)    (531,706)

Non-operating income:
  Gain on sale of subsidiary                    -    1,241,183            -      488,753
  Deficit in net loss of unconsolidated
  subsidiary                                    -            -            -            -
  Other nonoperating income (expense),
    net                                   116,651      120,225       83,507       95,166
  Interest income (expense), net          (67,850)        (330)     (65,755)         (87)
  Equity in loss of unconsolidated
    subsidiary                                  -      (85,206)           -            -
                                       ----------   ----------   ----------   ----------
      Income/loss before  income taxes
        and minority interest            (568,917)     483,410     (208,506)      52,126

  Income tax provision (Note 4)                 -            -            -            -
                                       ----------   ----------   ----------   ----------
      Income before minority interest    (568,917)     483,410     (208,506)      52,126

Minority interest in net loss of
  consolidated subsidiary                       -            -            -            -
                                       ----------   ----------   ----------   ----------
      Net income                       $ (568,917)  $  483,410   $ (208,506)  $   52,126
                                       ==========   ==========   ==========   ==========
Basic and diluted income/loss
  per share                            $    (0.03)  $     0.03  $     (0.01)  $     0.00
                                       ==========   ==========   ==========   ==========
Weighted average common shares
  outstanding                          16,585,203   17,295,050   16,585,203   17,343,050
                                       ==========   ==========   ==========   ==========





See accompanying notes to consolidated financial statements.




<PAGE>4

                        PINNACLE RESOURCES, INC.
          Consolidated Statements of Other Comprehensive Income

                                             Nine Months              Three Months
                                           Ended March 31,           Ended March 31,
                                          2005         2004         2005         2004
                                       ----------   ----------   ----------   ----------
Net income/loss                        $ (568,917)  $  483,410   $ (208,506)  $   52,126
  Other comprehensive income/loss,
   net of tax:
    Unrealized holding gain                     -            -            -     (301,646)
    Foreign currency translation           87,825            -            -            -
                                       ----------   ----------   ----------   ----------
       Comprehensive income (loss)     $ (481,092)  $  483,410   $ (208,506)  $ (249,520)
                                       ==========   ==========   ==========   ==========
</TABLE>





See accompanying notes to consolidated financial statements.




<PAGE>5

                        PINNACLE RESOURCES, INC.
       Consolidated Statements 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   $        -   16,523,050   $      165   $3,306,033
Issuance of common stock in
 exchange for services                    -      192,000            2       20,794
Sale of common stock                      -       80,000            1        7,999
Net deficit of affiliate                 10            -            -            -
Net loss                                  -            -            -            -
Comprehensive loss                        -            -            -            -
                                 ----------   ----------   ----------   ----------
       Balance, March 31, 2005           10   16,795,050          168    3,334,826
                                 ==========   ==========   ==========   ==========



                                             Accumulated
                                                Other
                                           Comprehensive  Accumulated
                                             Income/Loss     Deficit       Total
                                              ----------   ----------   ----------
                      Balance, July 1, 2004   $  570,685   (3,391,271)  $  485,612
Issuance of common stock in
 exchange for services                                 -            -       20,796
Sale of common stock                                   -            -        8,000
Net deficit of affiliate                               -            -           10
Net loss                                               -     (568,917)    (568,917)
Comprehensive loss                                87,825            -       87,825
                                              ----------   ----------   ----------
                    Balance, March 31, 2005      658,510   (3,960,188)      33,326
                                              ==========   ==========   ==========
</TABLE>





See accompanying notes to consolidated financial statements.




<PAGE>6

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

                                                    Nine Months
                                                  Ended March 31,
                                                 2005         2004
                                              ----------   ----------
Cash flows from operating activities:
Net cash provided by (used in) operating
 activities                                   $ (134,168)  $  756,518
                                              ----------   ----------
Cash flows from investing activities:
 Investment and loans to unrelated third
  parties                                              -     (258,699)
 Purchase of equipment                                 -      (22,325)
 Sale of equipment                                46,978            -
 Net, advances made to joint venture partner
                                                       -     (654,763)
 Other corporate investments                    (114,371)           -
                                              ----------   ----------
    Net cash used in investing activities        (67,393)    (935,787)
                                              ----------   ----------
Cash flows from financing activities:
 Advances from related parties (Note 2)           22,000            -
 Proceeds from loans                             169,000       50,000
 Cash proceeds from sale of common stock          18,000            -
                                              ----------   ----------
    Net cash provided by financing activities    209,000       50,000
                                              ----------   ----------
    Effect of cumulative translation
     adjustment on cash                                -            -
                                              ----------   ----------
    Net change in cash                             7,439     (129,269)

Cash:
 Beginning of period                              55,326      215,919
                                              ----------   ----------
 End of period                                $   62,765   $   86,650
                                              ==========   ==========

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 payment of services
  and interest                                $   10,796   $        -
                                              ==========   ==========
 Unrealized holding gain                      $        -   $        -
                                              ==========   ==========



See accompanying notes to consolidated financial statements.



<PAGE>7

                        PINNACLE RESOURCES, INC.
           Notes to Unaudited Consolidate 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 $21,500
and $105,700, respectively, during the nine months ended March 31, 2005
and 2004. As of March 31, 2005, $-0- was due to related parties for
consulting fees.

During the nine months ended March 31, 2005, a related party loaned the
Company $128,000 for working capital.  The advance is due on demand
with interest at 6 percent.  As of March 31,2005, $129,903 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 March 31, 2005.  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:  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 three months ended
March 31, 2005 against a deferred tax asset, which was fully allowed
for; therefore, the net benefit and expense resulted in $-0- income
taxes.




<PAGE>8

Note 5:  Accounts and notes receivable

Accounts and notes receivable consisted of the following at March
31, 2005:

     Subtenant rent receivables                            $    9,775
     Interest receivable                                        7,724
     Loan receivable                                           34,500
     Other                                                      3,273
                                                           ----------
                                                           $   55,272
                                                           ==========




<PAGE>9

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

RESULTS OF OPERATIONS

Results of operations - the nine months ended March 31, 2005 compared
with the nine months ended March 31, 2004

We reported a net loss of $568,917 ($.03 per share) for the nine months
ended March 31, 2005, as compared to a net profit of $483,410 ($.03 per
share) for the year earlier period. Our net loss resulted from
operating Pinnacle, VanMag, Titan and Diamonaire without realizing
sales revenues.  The Company received an advance payment of $200,000 on
potential sale of its Ghana gold property that was reported as deferred
income in the second quarterly report.

General and administrative expenses increased by $21,044 (3.5 percent)
to $596,218 for the nine months ended March 31, 2005 for the comparable
period the previous year which was reported at $578,548.  This increase
was primarily due to the investigation of other potential projects.

Interest expense was $67,850 for the nine months ending March 31, 2005,
which is an increase of $67,520 over the corresponding period of the
previous year.  This material increase was due to the substantial
increase in loans outstanding that the company incurred to finance its
operations.

Consulting expenses paid to related parties decreased from $105,700 for
the nine months ended March 31, 2004, to $21,500 for the nine months
ended March 31, 2005.  This 78% decrease was primarily due to the
decrease in management's presence and travel to South Africa.

South African interest rates are dropping, which impacts the rate of
interest we charge our subsidiaries on advances.  Inflation has not
affected our operations.  However, the impact of a weakening US dollar
has impacted our operations.  The difference between our current assets
and our current liabilities denominated in South Africa Rand exposes us
to foreign currency fluctuations.  Unrealized losses from foreign
currency translations are included in operations.

LIQUIDITY

During the nine months ended March 31, 2005, our ability to generate
adequate amounts of cash to meet our needs came from the sale of
Pinnacle common stock and private non-affiliated third party loans as
well as loans from the Company's President.  Our subsidiaries, VanMag,
Titan, and Diamonaire used liquidity in the period.  Our cash position
decreased from $86,650 at March 31, 2004 to $62,765 at March 31, 2005,
a decrease of 28%.

VanMag- Pinnacle did not achieve project financing for VanMag during
the period.  This subsidiary is not expected to generate cash flow
until such time that we sell it or we commence mining operations.  We
were granted a mining authorization from the South African Department
of Minerals and Energy.  Additionally, VanMag's five mineral leases
were determined to be eligible under the "old mining right" as opposed
to the new mineral act that became effective during the period.  The
old mining rights provide the Company with preferred senior rights.
Pinnacle additionally advanced VanMag  $3,000 for accounting fees and
incidental expenses during the period.

<PAGE>10

Titan Processors:  Pinnacle provided Titan with approximately $128,848
in financing during the nine month period ending March 31, 2005 which
was used to cover operating overhead and purchase additional equipment
for our tantalum refinery in Johannesburg, South Africa.  Pinnacle has
provided Titan with $687,653 in financing since the inception of the
project. Currently, Titan is expanding its plant capacity to be able to
operate on a commercial scale.  The expansion effort is nearly
completed and Titan is expects to begin refining tantalum and niobium
in the current fiscal year.  Pinnacle's financing must be repaid prior
to the payment of dividends to Titan shareholders.

Diamonaire Joint venture: Pinnacle loaned Diamonaire $158,031 during
the nine months ended March 31, 2005 which paid for the construction of
diamond recovery equipment that will be used to recover diamonds along
the western coastline of  South Africa.  Pinnacle has provided
Diamonaire with $715,131 in financing since the inception of the
project.  Our operating partner has agreed that our loan would be
repaid prior to any cash distributions to any of the venture partners.
We own 50 percent of the joint venture that owns 80 percent of the
operating company, Ocean Exploration, also a South African company.

FINANCIAL CONDITION

Investments

During the nine month period ending March 31, 2005 the Company did not
make any additional financial contributions toward the BCT gasification
technology.  During the nine months ended March 31, 2004 we issued
promissory notes totaling $50,000.

Property and equipment

Net property and equipment changed from $296,096 at March 31, 2004 to
568,244 at March 31, 2005.  Provisions for depreciation in for the nine
months ended March 31, 2005 and 2004 were $25,659 and 115,560,
respectively.  Net property additions consisted principally of tantalum
refinery equipment.

Net deficit of affiliates: This refers to the net deficit in equity of
our affiliates, Titan Processors and Diamonaire.

Our strategy in the near future is to focus on developing a substantial
share of the world tantalum market and recovering diamonds from the
ocean bed off the west coast of South Africa.   We believe that our
future success will depend on our ability to develop these two
businesses and to invest wisely in new projects that we continue to
evaluate.

INCOME TAXES

In situations where a company has experienced net operating losses
which cannot be offset through a carry back, the net operating losses
may be realized as a carry forward up to 20 years in the future.  Due
to our substantial development stage losses in earlier years, we have a
cumulative net operating loss for which we have recognized a benefit in
the current year.  However, the Financial Accounting Standards Board
(FASB) has concluded that tax benefits of loss carry forwards should
not be recognized until they are actually realized, except in
circumstances when realization is assured beyond any reasonable doubt
at the time the loss carry forward arises.  For this reason, we have
recorded as valuation allowance in our accounting records for the

<PAGE>11

future tax benefits of our loss carry forwards. Management believes
that the current cumulative net operating loss may be fully realized in
the current fiscal year.


Item 3. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pinnacle's management, under the supervision and with the participation
of its chief executive officer and chief financial officer, conducted
an evaluation of its "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, Pinnacle's
chief executive officer and chief financial officer have concluded that
as of the Evaluation Date, Pinnacle's 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
Pinnacle's internal controls or in other factors that could
significantly affect these controls subsequent to the Evaluation Date
set forth above.







<PAGE>12

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:  May 19, 2005

PINNACLE RESOURCES, INC

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