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, 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, December 31, 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,
    December 31, 2001 (unaudited)         3
Condensed consolidated statements
   of operations for the three and
   six months ended December 31, 2001
   and 2000, and from January 6, 1995
  (inception) through December 31,
   2001 (unaudited)                        4
Condensed consolidated statements
   of cash flows for the six months
   ended December 31, 2001 and 2000, and
   from January 6, 1995 (inception)
   through December 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                                                       $   158,002
                                                                   ---------
			Total current assets                               158,002
Restricted investment, at fair
   Value (Note F)                                                    875,000
Equipment, net                                                         5,909
                                                                   ---------
                                                                  $1,038,911
                                                                  ==========

Liabilities and Shareholders' Deficit
Current liabilities:
	Accounts payable, trade and accrued liabilities            $     7,437
	Lines of credit (Note C)                                        79,737
      Capital lease                                                    2,270
      Advances payable to shareholder                                 60,281
      Notes payable, related party (Note D)                          250,000
                                                                 -----------
           Total current liabilities                                 399,725

Shareholders' deficit (Note E):
	Preferred stock                                                      -
	Common stock                                                       138
	Outstanding stock options                                       47,165
	Additional paid in capital                                   2,764,585
	Unrealized holding gains                                     3,483,620
	Cumulative translation adjustment                               35,190
	Deficit accumulated during development stage                (5,691,512)
                                                                  ----------
           Total shareholders' equity	                           639,186
				                                          ----------
                                                                $  1,038,911
                                                                ============
</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>
                                        Three Months Ended
                                        December 31, 2001
                                        -------------------
                                       2001             2000
                                      -----------------------

                                     <c>            <c>
Operating expenses:
  Prospecting costs                  $    10,759     $   50,935
  Stock-based compensation                     -      1,471,430
  General and administrative              60,533         53,508
  Consulting, related party                    -         12,825
  Legal and accounting fees               20,064          1,657
  Travel                                  22,756          4,142
  Depreciation and amortization              996         21,767
  Asset impairment charge                      -        337,535
  Operating losses of subsidiary
    Disposed during the year                   -              -
  Foreign currency transaction loss            -              -
                                    ------------    -----------
     Total operating expenses            115,108      1,953,909
                                    ------------    -----------
               Operating loss           (115,108)    (1,953,909)

Non-operating income (expense):
  Write-down of notes receivable               -              -
  Interest expense                        (2,634)        (2,973)
  Interest income                            321          1,465
  Other income                                 -              -
                                    ------------    -----------
    Net loss before income taxes        (117,421)    (1,955,417)

Income taxes (Note B)                          -              -
                                    ------------    -----------
                      Net loss      $   (117,421)    $1,955,417)
                                    ============    ===========
Basic and diluted loss per common share
                                    $      (0.00)   $         -
                                    ============    ===========
Basic and diluted weighted average
common shares outstanding             13,785,050     10,091,000
                                    ============    ===========
</TABLE>
See accompanying notes to condensed
 consolidated financial statements



<PAGE>5

PINNACLE RESOURCES, INC.
(A Development Stage Company)
Condensed Consolidated Statements of Operations
Continued
(Unaudited)
<TABLE>
<CAPTION>
                                                                    January 6, 1995
                                                                      (inception)
                                        Six Months Ended               through
                                        December 31, 2001            December 31,
                                        -------------------
                                       2001             2000               2001
                                      ---------------------------------------------

                                     <c>            <c>                 <c>
Operating expenses:
  Prospecting costs                   $   39,917     $   61,830        $  1,797,336
  Stock-based compensation                     -      1,471,540           1,956,195
  General and administrative             101,335        115,413             490,217
  Consulting, related party                    -         25,650             117,947
  Legal and accounting fees               42,866          4,502             260,782
  Travel                                  32,687          4,727             239,731
  Depreciation and amortization            1,992         60,822             166,900
  Asset impairment charge                      -        337,535             337,535
  Operating losses of subsidiary
    disposed during the year             172,281              -             172,281
  Foreign currency transaction loss            -              -              42,770
                                      ----------      ---------         -----------
     Total operating expenses            391,098      2,082,019           5,581,694
                                     -----------      ---------         -----------
               Operating loss           (391,098)    (2,082,019)         (5,581,694)

Non-operating income (expense):
  Write-down of notes receivable               -              -             (91,398)
  Other income                            (5,252)        (4,891)            (80,364)
  Interest expense                         2,446          3,860               6,306
                                     -----------    -----------         -----------
    Net loss before income taxes        (286,727)       (124,665)        (5,584,673)

Income taxes (Note B)                          -               -                  -
                                      ----------      ----------         ----------
                      Net loss        $ (393,566)   $ (2,080,082)      $ (5,691,512)
                                     ===========     ===========       ============
Basic and diluted loss per common share
                                      $    (0.00)   $          -
                                      ==========     ===========
Basic and diluted weighted average
common shares outstanding             13,785,050       8,297,875
                                      ==========     ===========
</TABLE>
See accompanying notes to condensed
 consolidated financial statements



<PAGE>6

PINNACLE RESOURCES, INC.
(A Development Stage Company)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
                                                                    January 6, 1995
                                                                      (inception)
                                        Six Months Ended               through
                                        December 31, 2001            December 31,
                                        -------------------
                                       2001             2000               2001
                                      ---------------------------------------------

                                       <c>           <c>                <c>

Net cash used in operating activities $(244,592)     $ (176,691)       $(2,401,852)
                                      -----------    ----------       ------------
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       250,000        57,432          1,720,553
 Proceeds from loans and line of credit   76,440        59,984            376,424
 Principle payments on line of credit          -             -            (46,687)
 Principle payments on capital lease        (914)            -             (2,645)
 Proceeds from sale of common stock            -             -            417,783
                                       ---------     ---------         ----------
Net cash provided by financing
   Activities                            325,526       150,416          2,464,961
                                       ---------     ---------         ----------
Cumulative translation adjustment              -             -            287,068
                                       ---------     ---------         ----------
                   Net change in cash     79,733       (29,309)           158,002
Cash, beginning                           78,269        44,866                  -
                                       ---------     ---------         ----------
                         Cash, ending $   158,002    $  15,557         $  158,002
                                      ===========    =========         ==========
Supplemental disclosure of cash flow information:
 Cash paid for interest               $         -             -        $    5,071
                                      ===========    ==========        ==========
 Cash paid for income taxes           $         -             -        $        -
                                      ===========    ==========        ==========



<PAGE>7

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

 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 F)     $ 3,483,620     $       -       $ 3,483,620
                                      ===========     =========       ===========
  </TABLE>

See accompanying notes to condensed
 consolidated financial statements



<PAGE>8

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:  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 six months
ended December 31, 2001 resulting in a deferred tax
asset, which was fully allowed for; therefore, the
net benefit and expense resulted in $-0- income
taxes.

Note C:  Line of credit

The Company has four lines of credit for a total of
$100,000, of which, $20,638 was unused at December
31, 2001.  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 D: Note payable-Related Party

On November 21, 2001, the Company signed a
promissory note in the amount of $250,000 to a
director of the Company for value received. The
promissory note matures on March 30, 2001 and

<PAGE>9

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)


Note D: Note payable-Related Party continued

carries an interest of 12% per annum. The accrued
interest is to be paid with 250,000 shares of the
Company's common stock at the time of maturity. The
promissory note is secured by 2,000,000 shares of
Anooraq stock owned by the Company.

Note E:  Shareholders' Equity

As of December 31, 2001, 3,000,000 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.

Note F:  Sale of Plateau and restricted investment

The Company sold its remaining ownership in the
common stock of Plateau Resources, Ltd., South
Africa to Anooraq Resources Corporation. of
Vancouver, Canada, in exchange for 7 million shares
of Anooraq's common stock and debt forgiveness
totaling $150,000 on August 28, 2001. Following the
sale and as of December 31, 2001, the Company owned
approximately 27 percent of Anooraq's issued and
outstanding common stock.

The Company and Anooraq signed a Cooperative
Agreement at the time of the sale of Plateau to
Anooraq, which put significant restrictions to its
ownership of the Anooraq common stock. The
Cooperative Agreement covers a period of 24 months
after closing or to the date on which Pinnacle
ceases to hold at least 20% of Anooraq's
outstanding common shares. The Cooperative
Agreement requires the Company to vote with Anooraq
management on all voting matters, except for the
change of control in Anooraq. In addition, the
Company agreed not to sell more than CAN$97,000 in
aggregate market value of Anooraq common stock in
any calendar month without the prior consent of
Anooraq. Further, the Company gave Anooraq the
right of first refusal in any sale of more than
500,000 shares of Anooraq common stock. Anooraq has

<PAGE>10

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

Note F:  Sale of Plateau and restricted investment
continued

the right to repurchase 700,000 shares from
Pinnacle in a calendar year at no less than CAN$.50
per share unless Pinnacle otherwise agrees.
Pinnacle will have two nominees on Anooraq's board
during the cooperative period and pre-emptive
rights in the event of additional share issuance by
Anooraq.

The Company records its Anooraq stock holding as
available-for-sale securities in accordance with
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.

At August 28, 2001 and December 31, 2001, the
Company owns 7 million shares of Anooraq common
stock, valued at $875,000. Management determined
the fair value of the 7 million shares of Anooraq
common stock by a $250,000 note received from a
related party secured by 2 million shares of
Anooraq common stock (Note D).

Anooraq common stock is traded on Canadian Venture
Exchange at CAN$.48 per share on December 31, 2001.
The Company decided not to value its Anooraq common
stock holding using the quoted market price because
of restrictions on the Company's ability to sell
into the public market and Anooraq's limited public
trading volume.

The Company's recorded an unrealized gain from
disposition of subsidiary in the amount of
$3,483,620 on the date of sale.  The amount of
original investment in Plateau consists of 1.5
million shares of Pinnacle's common stock issued in
exchange for Pinnacle's ownership in Plateau,
valued at $375,000 and a $10,000 advance to
Plateau, offset by $42,708 received from Anooraq
for an option to purchase Pinnacle's interest in
Plateau and a $150,000 advance forgiven by Hunter
Dickenson, Ltd. of Vancouver, Canada related to the

<PAGE>11

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)

Note F:  Sale of Plateau and restricted investment
continued

closing of the sale of Plateau to Anooraq.  In
addition, the Company recorded a retained loss in
the amount of $3,291,328 during the period Plateau
was a consolidated subsidiary. Deferred tax
liabilities related to the disposition of Plateau
in the amount of $1,219,267 is offset by prior
years' income tax assets allowance.

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.

Six months ended December 31, 2001
<TABLE>
<CAPTION>
                                   Pinnacle
                                   Consolidated                      ProForma
                                   (as reported)      Adjustments    Consolidated
                                   -------------      -----------    ------------

                                    <c>               <c>              <c>
Revenues                            $       -         $       -       $         -
Operating expenses                    391,783          (172,621)  1       219,162
                                    ---------         ---------       -----------
Operating loss                       (391,783)          172,621          (219,162)
Non-operating income
  and expenses                          4,222              (345)  2         3,877
                                     --------          --------       -----------
Net income                          $(387,561)        $ 172,276       $  (215,285)
                                    =========         =========       ===========
Basic and diluted loss per
  Common share                      $   (0.03)                        $     (0.02)
                                    =========                         ===========
Basic and diluted weighted
 Average common shares
 Outstanding                        13,785,050                        13,785,050
                                    ==========                        ==========
</TABLE>



<PAGE>12

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated
Financial Statements
(Unaudited)

Note F:  Sale of Plateau and restricted investment
continued

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

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:
Elimination of Plateau's operating
expenses;
Elimination of Plateau's interest
income.

<PAGE>13

PINNACLE RESOURCES, INC.
(A Development Stage Company)

Notes to the Condensed Consolidated Financial
Statements
(Unaudited)


Note G:  Subsequent event

The Company formed a new wholly owned subsidiary,
Titan Intellectual Property (Pty), Ltd., in South
Africa in January of 2002.



<PAGE>14

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 December 31, 2001.   The
deficiency in working capital as of December 31,
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>15

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>16

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>17

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 six months ended December 31, 2001,
Pinnacle purchased equipment of $1,201 resulting in
net cash used in investing activities of $1,201.

For the six months ended December 31, 2000,
Pinnacle purchased equipment of $3,034 resulting in
net cash used in investing activities of $3,034.

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

For the six months ended December 31, 2001,
Pinnacle received advances from an
officer/shareholder of $57,432, proceeds from the
sale of common stock of $33,000 and received
proceeds from loans and a line of credit of
$59,984.   As a result, Pinnacle had net cash
provided by financing activities of $150,416 for
the six months ended December 31, 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
six months ended December5 31, 2001 of $393,566.

For the six months ended December 31, 2001,
Pinnacle had prospecting costs of $39,917, general
and administrative expenses of $101,355, legal and
accounting fees of $42,866, travel of $32,687,
depreciation and amortization of $1,992 and
operating looses of subsidiary disposed during the
year of $172,281.

Pinnacle had a net loss for the six months ended
December 31, 2000 of $2,080,082.  For the six
months ended December 31, 2000, Pinnacle had
prospecting costs of $61,830, stock-based
compensation of $1,471,540, general and
administrative expenses of $115,413, legal and
accounting fees of $4,502, consulting, related
party of $25,650, travel of $4,727, depreciation
and amortization of $60,822 and an asset impairment
charge of $337,535.

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>19

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:  February 19, 2002

PINNACLE RESOURCES, INC

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