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 September 30, 2001

-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)


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

 9600 E. Arapahoe Road, Suite 260,
  Englewood, Colorado                  80112
----------------------------------------------
(Address of principal executive offices, Zip Code)

          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,
September 30, 2001:  Common Stock
   -  13,785,050







<PAGE>2

ITEM 1 -- FINANCIAL STATEMENTS

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Item 1. Financial Statements

Condensed consolidated balance sheet,
    September 30, 2001 (unaudited)         3
Condensed consolidated statements
   of operations for the three and
   nine months ended March 31, 2001
   and 2000, and from January 6, 1995
  (inception) through March 31,
   2001 (unaudited)                        4
Condensed consolidated statements
   of cash flows for the nine months
   ended March 31, 2001 and 2000, and
   from January 6, 1995 (inception)
   through March 31, 2001(unaudited)       5
Notes to condensed consolidated
   financial statements                    6






<PAGE>3

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Condensed Consolidated Balance Sheet
(Unaudited)

September 30, 2001

Assets
<TABLE>
CAPTION>
Current assets:

                                                                  <c>
	Cash                                                       $     7,625
	Marketable securities, at fair value (Note B)                2,459,800
                                                                   ---------
			Total current assets                             2,467,425

Equipment, net                                                         6,905
                                                                   ---------
                                                                  $2,474,330
                                                                  ==========

Liabilities and Shareholders' Deficit
Current liabilities:
	Accounts payable, trade                                    $    10,885
	Lines of credit                                                 64,707
	Current maturities on capital lease obligation	                 1,994
	Advances payable to shareholder                                 60,281
                                                                 -----------
           Total current liabilities                                 137,867

Long-term debt:
	Capital lease obligation, less current maturities                  743
                                                                 -----------
	     Total liabilities                                         138,610
                                                                 -----------

Shareholders' deficit (Note E):
	Preferred stock                                                      -
	Common stock                                                       138
	Outstanding stock options                                       47,165
	Additional paid in capital                                   2,764,585
	Unrealized holding gains                                     2,261,508
	Deficit accumulated during development stage                (2,767,179)
	Cumulative translation adjustment                               29,503
                                                                  ----------
           Total shareholders' deficit	                         2,335,720
				                                          ----------
                                                               $   2,474,330
                                                               =============
</TABLE>
See accompanying notes to condensed
 consolidated financial statements


<PAGE>4

PINNACLE RESOURCES, INC.
(A Development Stage Company)
Condensed Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
                                                                    January 6, 1995
                                                                      (inception)
                                        Three Months Ended               through
                                        September 30, 2001            September 30,
                                        -------------------
                                       2001             2000               2001
                                      ---------------------------------------------

                                     <c>            <c>                 <c>
Operating expenses:
Prospecting costs                 $    200,606     $   10,895        $  1,958,025
Stock-based compensation                     -              -           1,956,195
General and administrative              42,489         61,905             431,351
Consulting, related party                    -         12,825             117,947
Legal and accounting fees               29,651          2,845             247,567
Travel                                   9,931            585             216,975
Depreciation and amortization           10,585         39,055             175,493
Asset impairment charge                      -              -             337,535
Foreign currency transaction loss            -              -              42,770
                                    ----------      ---------         -----------
     Total operating expenses          293,262        128,110           5,483,858
                                   -----------      ---------         -----------
               Operating loss         (293,262)      (128,110)         (5,483,858)

Non-operating income (expense):
Write-down of notes receivable               -              -             (91,398)
Other income                             9,153           5,363             68,313
Interest expense                        (2,618)         (1,918)           (77,730)
                                    -----------     -----------        -----------
    Net loss before income taxes      (286,727)       (124,665)        (5,584,673)

Income taxes (Note C)                        -               -                  -
                                    ----------      ----------         ----------
                      Net loss      $ (286,727)     $ (124,665)      $ (5,584,673)
                                   ===========     ===========       ============
Basic and diluted loss per common share
                                  $      (0.02)     $    (0.02)
                                   =============   ============
Basic and diluted weighted average
common shares outstanding           13,785,050        6,223,333
                                   =============   ============
</TABLE>
See accompanying notes to condensed
 consolidated financial statements



<PAGE>5

PINNACLE RESOURCES, INC.
(A Development Stage Company)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
                                                                    January 6, 1995
                                                                      (inception)
                                        Three Months Ended               through
                                        September 30, 2001            September 30,
                                        -------------------
                                       2001             2000               2001
                                      ---------------------------------------------

                                       <c>           <c>                <c>

Net cash used in operating activities $(130,996)     $ (49,715)       $(2,288,256)
                                      -----------    ----------       ------------
Cash flows from investing activities:
 Cash received for sale of options to purchase
   interest in subsidiary                      -             -             42,708
 Purchase of equipment                    (1,201)       (3,034)           (91,034)
 Advances made to related parties
   as notes receivable                         -             -           (145,000)
 Purchase of subsidiary,  cash received        -             -              1,151
                                       ----------    ----------       ------------
Net cash provided by (used in)
   investing activities                   (1,201)        (3,034)          (192,175)
                                       ----------    -----------      -------------
Cash flows from financing activities:
 Advances from officer/shareholder             -         114,672         1,470,553
 Proceeds from loans and line of credit   62,000          40,000           361,984
 Principle payments on line of credit          -               -           (46,687)
 Principle payments on capital lease        (447)              -            (2,645)
 Proceeds from sale of common stock            -               -           417,783
                                       -----------    -----------     -------------
Net cash provided by financing activities 61,553         154,672         2,200,988
                                       -----------    -----------     -------------
Cumulative translation adjustment              -               -           287,068
                                       -----------    -----------     -------------
                   Net change in cash    (70,644)         101,923            7,625
Cash, beginning                           78,269           44,866                -
                                       -----------    ------------     ------------
                         Cash, ending $    7,625       $  146,789      $     7,625
                                       ===========     ===========     ============
Supplemental disclosure of cash flow information:
 Cash paid for interest               $         -               -      $        -
                                      ============     ===========     ============
 Cash paid for income taxes           $         -               -      $        -
                                      ============     ===========     ============

Non-cash investing and financing transactions:
 Acquisition of subsidiary in exchange for 1,500,000
  shares of common stock              $         -     $         -      $   375,000
                                      ===============  ============     ===========



<PAGE>6

 Acquisition of subsidiary in exchange for 4,000,000
 shares of common stock               $         -     $   (60,521)     $   (60,521)
                                      ===============  ============     ===========
Equipment acquired under capital lease$         -     $         -      $     5,382
                                       =============   ============     ==========
Common stock issued as repayment
 for debt                             $   150,000     $         -      $   150,000
                                      =============    =============    ==========
Unrealized holding gains (Note B)     $ 2,261,508     $         -      $ 2,261,508
                                      =============    =============    ==========
  </TABLE>

See accompanying notes to condensed
 consolidated financial statements



<PAGE>7

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

Note A:  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, 2001, 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 B:  Marketable securities

The Company's marketable securities consist of the
common stock acquired from Anooraq Resources
Corporation ("Anooraq") in the sale of the
Company's investment in Plateau Resources,
(Proprietary) Limited ("Plateau") (see Note F).
Marketable securities are stated at market value as
determined by the most recently traded price of the
security at the balance sheet date.  The Company's
marketable securities have been classified as
available-for-sale securities in accordance with
Statement of Financial Accounting Standards No.
115, "Accounting for Certain Investments in Debt
and Equity Securities".  Available-for-sale
securities are carried at fair value, with the
unrealized gains and losses, net of tax, reported
as a separate component of shareholders' equity.



<PAGE>8

<TABLE>
<CAPTION>
                                          Comprehensive
                                           Returned in
                                          Exchange for       Unrealized     Market
                              Cost        debt forgiveness    Gain (Loss)    Value
                            -------------------------------------------------------

                            <c>           <c>              <c>           <c>
Available-for-sale securities
  Equity securities          $ 342,292    $(144,000)       $2,261,508   $2,459,800
                            ==========   ==========        ==========   ==========
</TABLE>
Note C:  Income taxes

The Company records its income taxes in accordance
with Statement of Financial Accounting Standard No.
109, "Accounting for Income Taxes".  The Company
incurred net operating losses during the three
months ended September 30, 2000 resulting in a
deferred tax asset, which was fully allowed for;
therefore, the net benefit and expense resulted in
$-0- income taxes.

Note D:  Line of credit

The Company has a line of credit for $50,000, of
which, $-0- was unused at September 30, 2001.
Advances made under the line 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 line is personally
guaranteed by the president of the Company.
<TABLE>
<CAPTION>

                                     Common Stock      Outstanding    Additional
                                   ----------------      Stock        Paid-In
                                    Shares   Amount     Options        Capital
                                   --------  ------    ---------      -----------

                                 <c>        <c>        <c>             <c>
Balance July, 2001              11,950,050   $120      $47,165        $2,764,603
July 2001, issuance of common
  stock in to escrow             1,845,000     18            -              (18)
Sale of Plateau (Note F)                 -      -            -                -
Comprehensive income (loss)
  Net loss for the three months
  Ended September 30, 2001               -      -            -                -
  Unrealized holding gains               -      -            -                -
    Total comprehensive
      Income Loss               ----------   -----     --------      ----------
Balance, September 30, 2001     13,785,050    $138      $47,165      $2,764,179
                                ==========   =====     ========      ==========
</TABLE>



<PAGE>9

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

Note E:  Changes in shareholders' equity for the
three months ended September 30, 2001
<TABLE>
<CAPTION>
                                          Comprehensive
                                            Income
                                          Unrealized        Cumulative
                               Accumulated  Holding         Transaction
                                Deficit   Gains(losses)     Adjustments     Total
                               --------  ----------------  -------------  ----------

                               <c>          <c>               <c>         <c>
Balance July, 2001            $(5,297,946)  $       -       $287,068    $(2,198,990)
July 20001, issuance of common
  Stock in to escrow                    -           -              -              -
Sale of Plateau (Note F)       (2,817,494)          -       (257,565)    (2,559,929)
Comprehensive income (loss)
  Net loss for the three month
  Ended September 30, 2001      (286,727)           -              -       (286,727)
  Unrealized holding gains             -    2,261,508              -      2,261,508
                                                                          ---------
Total comprehensive
      Income Loss                                                         1,974,781
                             -----------  -----------      ---------      ---------
Balance, September 30, 2001  $(2,767,179) $(2,261,508)      $ 29,503     $2,335,720
                             ============ ============     =========     ==========
</TABLE>
As of June 30, 2001, 1,165,000 shares of the
Company's common stock outstanding were held in
escrow with Harris County Circuit Court in Houston,
Texas, pending resolution of a dispute between the
Company and Petty International Development
Corporation.  On July 5, 2001, the Company issued
an additional 1,835,000 common shares into the
escrow.

Note F:  Sale of Plateau investment

The Company sold its Plateau investment to Anooraq
in exchange for 7 million shares of Anooraq's
common stock and debt forgiveness totaling $150,000
on August 28, 2001.  Following the sale, the
Company owned approximately 28 percent of Anooraq's
issued and outstanding common stock.  The Company's
investment in Plateau totaled $332,292 on the date
of sale.  Plateau also owed the Company an advance
of $10,000.



<PAGE>10

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

The following pro forma condensed, consolidated
statements of operations give effect to the
disposition of Plateau as if it occurred on July 1,
2001.  The pro forma condensed, consolidated
statement of operations is not necessarily
indicative of results of operations had the
disposition occurred at the beginning of the
period.

Three months ended September 30, 2001
<TABLE>
<CAPTION>
                                   Pinnacle
                                   Consolidated                      ProForma
                                   (as reported)      Adjustments    Consolidated
                                   -------------      -----------    ------------

                                    <c>               <c>              <c>
Revenues                            $       -         $       -       $       -
Operating expenses                    293,262          (189,553)1       103,709
                                    ---------         ---------        --------
Operating loss                       (293,262)          189,553        (103,709)
Non-operating income
  and expenses                          6,535              (690)2         5,845
                                     --------          --------        --------
Net income                          $(286,727)         $188,863        $ 97,864
                                    =========          ========        ========
Basic and diluted loss per
  Common share                      $   (0.02)                        $       *
                                    =========                         =========
Basic and diluted weighted
 Average common shares
 Outstanding                        13,785,050                       13,785,050
                                    ==========                       ==========
</TABLE>
*  Less than $.01 per share

Condensed, consolidated statement of operations
adjustments:
1. Elimination of Plateau's operating expenses
2. Elimination of Plateau's interest income





<PAGE>11

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

The following pro forma condensed, consolidated
statements of operations give effect to the
disposition of Plateau as if it occurred on July
1, 2000, the beginning of the previous fiscal
year.  The pro forma condensed, consolidated
statement of operations is not necessarily
indicative of results of operations had the
disposition occurred at the beginning of the
period.

Year ended June 30, 2001
<TABLE>
<CAPTION>
                                   Pinnacle
                                   Consolidated                      ProForma
                                   (as reported)      Adjustments    Consolidated
                                   -------------      -----------    ------------

                                  <c>                   <c>            <c>
Revenues                           $          -       $         -    $         -
Operating expenses                    3,388,993        (1,170,956)1    2,218,037
                                   ------------        -----------   ------------
Operating loss                     $(3,388,993)       $(1,170,956)   $ 2,218,037
Non-operating income
  and expenses                     $ (  18,893)       $    (  941)2  $  ( 19,834)
                                   -----------        -----------    -----------
Net income                         $(3,407,886)       $ 1,170,015    $(2,237,871)
                                   ===========        ===========   ============
Basic and diluted loss per
  common share                     $     (0.36)                      $     (0.23)
                                   ===========                       ===========
Basic and diluted weighted
 Average common shares
 Outstanding                         9,540,933                         9,540,933
                                   ===========                       ===========
</TABLE>
Condensed, consolidated statement of operations
adjustments:
1. Elimination of Plateau's operating expenses
2. Elimination of Plateau's interest income






<PAGE>12

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

Trends and Uncertainties.   The financial
statements have been prepared assuming that
Pinnacle will continue as a going concern.
Pinnacle is in the development stage and has no
operations as of September 30, 2001.   The
deficiency in working capital as of September 30,
2001 raises substantial doubt about its ability to
continue as a going concern. In the course of its
development activities Pinnacle has sustained
continuing losses and expects such losses to
continue for the foreseeable future.   Pinnacle's
management plans on advancing funds on an as
needed basis and in the longer term to revenues
from the operations of which there is no
assurance.   Pinnacle's ability to continue as a
going concern is dependent on these additional
management advances, and, ultimately, upon
achieving profitable operations.

Until revenues commence, Pinnacle shall raise
funds through equity financing, which may or not
be successful.   Pinnacle has tried to limit its
general and administrative expenses.    Pinnacle
has little or no control as to the demand for its
services and, as a result, inflation and changing
prices could have a material effect on the future
profitability of Pinnacle.

Pinnacle will focus its financing and capital
arrangement activities on emerging growth
companies, which plan to raise capital in the
public markets within a reasonable short period of
time, i.e., one to two years.   Although Pinnacle
will initially target small mining companies due
to its contacts in that industry, management has
not identified any particular industry within
which Pinnacle will focus its efforts.   Rather,
management intends to identify any number of
candidates, which may be brought to its attention
through present associations or by word-of-mouth.

Initially Pinnacle intends to arrange sources of
funding and finance for its prospective clients
through established sources for such funds by
acting as a finder or broker to the lender and as
an arranger or financial consultant to the
borrowing party.



<PAGE>13

In the emerging markets of South Africa and South
America, opportunities exist where small mining
companies seek funding from outside sources for
capitalization because it is not available
locally.

Management has over 70 years of combined business
experience involving a variety of situations where
financing and/or funding has been required in
order to effectuate a mining opportunity.
Individually, management personnel has directly
funded, underwritten or brokered financing for a
number of mining prospects over the years, both in
the domestic market as well as South Africa and
South America.

Management believes that Pinnacle will be able to
successfully seek out potential candidates who are
interested in obtaining loans from Pinnacle in the
immediate future.   This belief is based upon the
perceived difficulty of many development and
growth stage companies who require additional
financing, but are unable to obtain the same from
established sources, such as banking institutions
and venture capitalists.   As interest rates begin
to rise, management anticipates that those types
of entities earmarked by Pinnacle as possible
clients will continue to seek out Pinnacle as a
lending source, as management views a potential
borrower's borrowing base in a different light
than banks.   For loans made by regulated
commercial lenders, there is normally a structured
review and evaluation of a prospective borrower's
loan application by the lender, including an in-
depth review of such application by a loan
committee.   The loan committee will then approve
or reject each application as it is submitted.
The evaluation and approval of loans depends on
subjective factors and judgments, as well as
objective criteria, such as loan to value ratios
and independent appraisals, when appropriate or
available.   Pinnacle's loan committee consists of
substantially fewer persons than a commercial
lender and uses a less formal procedure than more
traditional lenders.   It is possible that any
such subjective factors and judgments may prove to
be incorrect with a resulting loss of part or all
of Pinnacle's investment in any particular loan.
However, as part of the consideration provided to
Pinnacle for issuance of its loans, Pinnacle
receives its interest and attempts to also obtain
additional consideration in the form of equity or
options or warrants in the borrower.   In the



<PAGE>14

event the borrower's business plan proves
successful, Pinnacle may receive substantial
returns as a result of this equity enhancement.

Most venture capitalists take an aggressive equity
position far in excess of that of Pinnacle and in
many instances, take an active role in the
management of their clients.   Management believes
that this makes venture capitalists unattractive
to those types of entities with whom Pinnacle does
business.

Pinnacle's ability to become a significant lender
is impaired primarily by its own lack of capital
with which to make loans.   While management would
welcome the opportunity to make more loans for
larger amounts, management finds itself in the
same predicament as that of its prospective
clients.  That is, the lack of capital with which
to fully implement Pinnacle's business plan.
Management hopes that as Pinnacle begins to make
successful loans, its track record will allow
Pinnacle to attract either private investors
seeking to invest in the business of Pinnacle on a
private basis, or that Pinnacle will be able to
attract an investment banker willing to underwrite
a secondary offering of Pinnacle's securities to
generate additional capital.  There are no
assurances that Pinnacle will be able to attract
either of the aforesaid entities to increase
Pinnacle's working capital.   If Pinnacle is
unable to obtain additional working capital, it is
unlikely that Pinnacle will generate any
substantial growth in the near future.

Capital Resources and Source of Liquidity.
Pinnacle currently has no material commitments for
capital expenditures.   Pinnacle pays $1,500 rent
per month for its current office space.    An
increase in lease payments could have negative
effect on the cash flow and liquidity of Pinnacle.

In October 1999 Pinnacle issued 1,500,000 Shares
of common stock from its treasury for the
acquisition of 4,000 shares of Plateau
Resources (Pty) Ltd. that made Plateau a 100%
wholly owned subsidiary of Pinnacle.  Then on
August 28, 2001 Pinnacle accepted 7 million shares
of Anooraq Resources Corp common stock in a tax
free exchange of the 4,000 shares of Plateau.  The
Anooraq stock has a current market value of $2.5
million.


<PAGE>15

On October 1, 1999 Pinnacle issued 140,000 shares
of common stock for cash of $137,500, or $.50 per
share, resulting in net cash flows from financing
activities of $137,500.

Pinnacle received a loan of $100,000 in March of
1998 and then converted that loan together with
accumulated interest to equity by issuing 300,000
shares of common stock from its treasury.
A loan of $75,000 was made to Plateau Resources
(Pty) Ltd in May of 1999 was repaid when Pinnacle
closed on a Loan Facility Agreement with
Anooraq Resources, Inc.   Another loan made
September of 1998 to Asset Partners, Ltd in the
amount of $40,000 was written off.  There is a
narrow probability that third party funding of
Vanadium and Magnetite Exploration and Development
(Pty) Ltd will be finalized in the short term and
it is highly unlikely that Pinnacle will find a
joint venture partner at any time in the near
future. This acquisition has caused a financial
burden of approximately US$7,500 per year for
Pinnacle and if Pinnacle is unsuccessful in
meeting those financial obligations then a partial
asset sale of VMED would become a necessity.

For the three months ended September 30, 2001,
Pinnacle purchased equipment of $1,201 resulting
in net cash used in investing activities of
$1,201.

For the three months ended September 30, 2000,
Pinnacle purchased equipment of $3,034 resulting
in net cash used in investing activities of
$3,034.

For the three months ended September 30, 2001,
Pinnacle received proceeds from loans and a line
of credit of $62,000 and made principal payments
on a capital lease of $447.  As a result, Pinnacle
had net cash provided by financing activities of
$61,553 for the three months ended September 30,
2001.

For the three months ended September 30, 2001,
Pinnacle received advances from an
officer/shareholder of $114,672 and received
proceeds from loans and a line of credit of
$40,000.   As a result, Pinnacle had net cash
provided by financing activities of $154,672 for
the three months ended September 30, 2001.



<PAGE>16

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
but has received revenues on advances made by
Anooraq as it pertains to the transactions
relating to Plateau, namely an initial option
payments totaling $175,000 and a loan advance of
$150,000 against the transfer of 500,000 shares of
Anooraq stock.   Pinnacle had a net loss for the
three months ended September 30, 2001 of $286,727.

For the three months ended September 30, 2001,
Pinnacle had prospecting costs of $200,606,
general and administrative expenses of $42,489,
legal and accounting fees of $29,651, travel of
$9,931, depreciation and amortization of $10,585
and foreign currency transaction loss of $0.

Pinnacle had a net loss for the three months ended
September 30, 2000 of $128,110.  For the three
months ended September 30, 2000, Pinnacle had
prospecting costs of $10,895, general and
administrative expenses of $61,905, legal and
accounting fees of $2,845, travel of $585,
consulting-relating party of $12,825, and
depreciation and amortization of $39,055.

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 hares.   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.





<PAGE>17

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.   none
(b)   Exhibits.    none


                  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:  November 19, 2001

PINNACLE RESOURCES, INC

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