----

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UNITED STATES

| NEVADA                                                                                                                                   | 98-0559606                               |
|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                                                                      | (I.R.S      Employer Identification No.) |
|                                                                                                                                     |                                     |
| 120      Wall Street, Suite 2401                                                                                                         |                                     |
| New      York,      NY                    | 10005                                    |
| (Address      of principal executive offices)                                                                                            | (Zip      Code)                     |

|                     Large      accelerated filer [  ]                | Accelerated      filer [  ]      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
|                     Non-accelerated      filer   [  ] | Smaller      reporting company [ x ]  |

----

----

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PART I - FINANCIAL INFORMATION

| ITEM 1. | FINANCIAL      STATEMENTS. |
|---------|----------------------------|

----

| KUSHI RESOURCES      INC.           |
|-------------------------------------|
| (AN EXPLORATION STAGE      COMPANY) |
| BALANCE      SHEETS                 |

|                                                                                                                             |   | August    31,                   |   |   | February    28, |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|-----------------|--------|
|                                                                                                                             |   | 2009                            |   |   | 2009            |   |
|                                                                                                                             |   | (unaudited)                     |   |   |            |   |
|                                                                                                                             |   |                            |   |   |            |   |
| ASSETS                                                                                                                           |   |                            |   |   |            |   |
| Current      assets:                                                                                                             |   |                            |   |   |            |   |
|           Cash                                                                                                    | $      |  1                         |   | $      |  70        |   |
|                                                                                                                             |   |                            |   |   |            |   |
|           Total assets                                                                                            | $      |  1                         |   | $      |  70        |   |
|                                                                                                                             |   |                            |   |   |            |   |
| LIABILITIES AND STOCKHOLDERS'      DEFICIT                                                                                       |   |                            |   |   |            |   |
| Current      liabilities:                                                                                                        |   |                            |   |   |            |   |
|           Accounts payable                                                                                        | $      |  47,378                    |   | $      |  42,558    |   |
|           Accrued administrative fees                                                                             |   |     -       |   |   | 3,150           |   |
|           Advances payable                                                                                   |   |      - |   |   | 27,365          |   |
|           Due to related party                                                                                    |   |     -       |   |   | 381             |   |
|                                                                                                                             |   |                            |   |   |            |   |
|           Total liabilities                                                                                       |   | 47,378                          |   |   | 73,454          |   |
| Commitments      and contingencies                                                                                               |   |                            |   |   |            |   |
| Stockholders'      deficit:                                                                                                      |   |                            |   |   |            |   |
|           Common stock; authorized 75,000,000; $0.001 par value;      5,230,000                                   |   |                            |   |   |            |   |
|                     issued and outstanding at      August 31, 2009 and February 28, 2009 |   | 5,230                           |   |   | 5,230           |   |
|           Additional paid in capital                                                                              |   | 51,270                          |   |   | 51,270          |   |
|           Deficit accumulated during the exploration    stage                                                     |   | (103,877                        | )      |   | (129,884        | )      |
|                                                                                                                             |   |                            |   |   |            |   |
|           Total stockholders' deficit                                                                             |   | (47,377                         | )      |   | (73,384         | )      |
|                                                                                                                             |   |                            |   |   |            |   |
|           Total liabilities and stockholders' deficit                                                             | $      |  1                         |   | $      |  70        |   |

----

| KUSHI RESOURCES      INC.           |
|-------------------------------------|
| (AN EXPLORATION STAGE      COMPANY) |
| STATEMENTS OF      OPERATIONS       |
| (UNAUDITED)                         |

|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|
|                                                                                                                                                                                                                                                                    |                                                         | Three Months      Ended                                                       |   |                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                    |                                                         | August    31,                                                                 |   |                                                                                                                                                                                                                                                                                                                                                         | August    31,                                                                                                                                                                                                                                                    |           |   |
|                                                                                                                                                                                                                                                                    |                                                         | 2009                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         | 2008                                                                                                                                                                                                                                                             |           |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
| Operating      Expenses:                                                                                                                                                                                                                                                |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|           Administrative fees                                                                                                                                                                                                                            | $                                                            |      -                                               |   |   $                                                                                                                                                                                                                                                                                                                                                |                                         1,060            |           |   |
|           Bank charges and interest                                                                                                                                                                                                                      |                                                         |  -                                                                       |   |                                                                                                                                                                                                                                                                                                                                                         |                                                 (14 | )              |   |
|           Donated rent                                                                                                                                                                                                                                   |                                                         | -                                                                             |   |                                                                                                                                                                                                                                                                                                                                                         | -                                                                                                                                                                                                                                                                |           |   |
|           Donated services                                                                                                                                                                                                                               |                                                         | -                                                                             |   |                                                                                                                                                                                                                                                                                                                                                         | -                                                                                                                                                                                                                                                                |           |   |
|           Exploration and development costs                                                                                                                                                                                                              |                                                         | -                                                                             |   |                                                                                                                                                                                                                                                                                                                                                         |      -                                                                                                                                                                                                                                  |           |   |
|           Foreign exchange gains and losses                                                                                                                                                                                                         |                                                         |   42                                                                |   |                                                                                                                                                                                                                                                                                                                                                         | -                                                                                                                                                                                                                                                                |           |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|           Professional fees                                                                                                                                                                                                                         |                                                         |   698                                                               |   |                                                                                                                                                                                                                                                                                                                                                         | 5,671                                                                                                                                                                                                                                                            |           |   |
|           Office                                                                                                                                                                                                                                    |                                                         |   -                                                                 |   |                                                                                                                                                                                                                                                                                                                                                         | -                                                                                                                                                                                                                                                                |           |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|           Regulatory                                                                                                                                                                                                                                     |                                                         |  -                                                                       |   |                                                                                                                                                                                                                                                                                                                                                         |                                                538  |           |   |
| Total      operating expenses                                                                                                                                                                                                                                 |                                                         |             (740) |   |                                                                                                                                                                                                                                                                                        |             (7,255)                                                                                                                                                                                  |           |   |
|  Loss      before extraordinary item                                                          |            |  (740)                                                                   |   |                                                            |                                       (7,255)                      |      |   |
| Extraordinary      gain - debt forgiveness income                                Net      income (loss) |   $                                                | 45,320   44,580                                                |   |                           $                                                                                                                                                                                                                              |   (7,255)                                                                                                                                                                                                                                              | -    |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
| Net      income (loss) per share:                                                                                                                                                                                                                                       |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|           Basic and diluted                                                                                                                                                                                                                              |                                                         |  0.00                                                                    |   |                                                                                                                                                                                                                                                                                                                                                         | (0.00                                                                                                                                                                                                                                                            | )              |   |
|                                                                                                                                                                                                                                                                    |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
| Weighted      average number of shares outstanding:                                                                                                                                                                                                                     |                                                         |                                                                          |   |                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                             |           |   |
|           Basic and diluted                                                                                                                                                                                                                              |                                                         | 5,230,000                                                                     |   |                                                                                                                                                                                                                                                                                                                                                         | 5,230,000                                                                                                                                                                                                                                                        |           |   |

----

| KUSHI RESOURCES      INC.           |
|-------------------------------------|
| (AN EXPLORATION STAGE      COMPANY) |
| STATEMENTS OF      OPERATIONS       |
| (UNAUDITED)                         |

|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   | From                                                                                                                                                                                  |   |
|-----------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   | Six Months      Ended                                                                                                                                                                                                                                                                                                                                                      |   |          | October 3,      2005                                                                                                                                                                                                                  |   |
|                                                            |   | August    31,                                                                                                                                                                                                                                                                                                                                                              |   |          | August    31,                                                                                                                                                                                                                         |   |   | (Inception)      to                                                                                                                                                                   |   |
|                                                            |   | 2009                                                                                                                                                                                                                                                                                                                                                                       |   |          | 2008                                                                                                                                                                                                                                  |   |   | August 31,      2009                                                                                                                                                                  |   |
|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
| Operating      Expenses:                                        |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
|           Administrative fees                    | $      |      3,000                                                                                                                                                                                                                                                                                                                                        |   |   $ |                                 2,120                                 |   | $      |  18,850                                                                                                                                                                          |   |
|           Bank charges and interest              |   |  78                                                                                                                                                                                                                                                                                                                                                                   |   |          |                                            6 |   |   |      945                                                                                                                                                     |   |
|           Donated rent                           |   | -                                                                                                                                                                                                                                                                                                                                                                          |   |          | -                                                                                                                                                                                                                                     |   |   | 4,000                                                                                                                                                                                 |   |
|           Donated services                       |   | -                                                                                                                                                                                                                                                                                                                                                                          |   |          | -                                                                                                                                                                                                                                     |   |   | 8,000                                                                                                                                                                                 |   |
|           Exploration and development costs      |   | -                                                                                                                                                                                                                                                                                                                                                                          |   |          |      12,452                                                                                                                                                                                                  |   |   | 21,240                                                                                                                                                                                |   |
|           Foreign exchange gains and losses |   |   1,201                                                                                                                                                                                                                                                                                                                                                          |   |          | -                                                                                                                                                                                                                                     |   |   | 598                                                                                                                                                                                   |   |
|           Professional fees                 |   |    14,984                                                                                                                                                                                                                                                                                                                                                   |   |          | 18,519                                                                                                                                                                                                                                |   |   | 89,439                                                                                                                                                                                |   |
|           Office                            |   |   -                                                                                                                                                                                                                                                                                                                                                              |   |          | -                                                                                                                                                                                                                                     |   |   | 155                                                                                                                                                                                   |   |
|           Regulatory                             |   | 50                                                                                                                                                                                                                                                                                                                                                                         |   |          | 1,613                                                                                                                                                                                                                                 |   |   | 5,970                                                                                                                                                                                 |   |
|  Total      operating expenses                        |   |                               19,313                                                                                                                                                                                 |   |          |                                    34,710                                            |   |   |                                   149,197 |   |
|  Loss      before extraordinary item                       |   |                                                                 (19,313) |   |          |                              (34,710)                                                |   |   |                             (149,197)     |   |
|  Extraordinary      gain - debt forgiveness income         |   | 45,320                                                                                                                                                                                                                                                                                                                                                                |   |          | -                                                                                                                                                                                                                                |   |   | 45,320                                                                                                                                                                           |   |
|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
|      Net      income (loss)            | $      |  26,007                                                                                                                                                                                                                                                                                                                                                               |   |   $ | (34,710)                                                                                                                                                                                                                              |   | $      |  (103,877)                                                                                                                                                                       |   |
|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
| Net      income (loss) per share:                               |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
|           Basic and diluted                      |   |  0.00                                                                                                                                                                                                                                                                                                                                                                 |   |          | (0.01                                                                                                                                                                                                                                 | )      |   |                                                                                                                                                                                  |   |
|                                                            |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
| Weighted      average number of shares outstanding:             |   |                                                                                                                                                                                                                                                                                                                                                                       |   |          |                                                                                                                                                                                                                                  |   |   |                                                                                                                                                                                  |   |
|           Basic and diluted                      |   | 5,230,000                                                                                                                                                                                                                                                                                                                                                                  |   |          | 5,230,000                                                                                                                                                                                                                             |   |   |                                                                                                                                                                                  |   |

----

| KUSHI      RESOURCES INC.           |
|-------------------------------------|
| (AN EXPLORATION STAGE      COMPANY) |
| STATEMENTS OF CASH      FLOWS       |
| UNAUDITED                           |

|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   | From                                 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------------------------|--------|--------|--------------------------------------|--------|
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   | October 3,      2005                 |   |
|                                                                                                                                            |   | Six Months      Ended                                                                                                                                                                                                  |    |   | (Inception)               |   |
|                                                                                                                                            |   | August    31,                                                                                                                                                                                                          |    |   | August    31,             |   |   | to      August 31,                   |   |
|                                                                                                                                            |   | 2009                                                                                                                                                                                                                   |    |   | 2008                      |   |   | 2009                                 |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Cash      flow from operating activities:                                                                                                       |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|           Net loss                                                                                                               | $      |  26,007                                                                                                                                                                                                           |    | $      | (34,710)                  |   | $      |  (103,877                       | )      |
|                       Adjustments to      reconcile net loss to net cash                           |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|                                        used in operating activities: |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|                       Donated rent and      services                                               |   | -                                                                                                                                                                                                                      |    |   | -                         |   |   |      12,000 |   |
|                       Changes in      operating assets and liabilities:                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|                                  Accounts payable                                   |   |  4,820                                                                                                                                                                                                            |    |   |  12,941              |   |   | 47,378                               |   |
|                                  Accrued administrative fees                        |   |    (3,150)                                                                                                                                                                                              |    |   | (1,831)                   |   |   |     -            |   |
|                                  Accrued professional fees                          |   | -                                                                                                                                                                                                                      |    |   |          - |   |   |     -            |   |
|                                  Advances payable                                   |   |   -                                                                                                                                                                                                          |    |   | -                         |   |   |      -      |   |
|                                  Due to related party                               |   | (27,365                                                                                                                                                                                                                |  ) |   | 21,889                    |   |   |  -                              |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|           Net cash provided by (used in) operating      activities                                                               |   | (69)                                                                                                                                                                                                                   |    |   | (1,711                    | )      |   | (44,499                              | )      |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Cash      flows from financing activities                                                                                                       |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|           Cash from issuance of common stock                                                                                     |   | -                                                                                                                                                                                                                      |    |   | -                         |   |   | 44,500                               |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|           Net cash provided by financing activities                                                                              |   | -                                                                                                                                                                                                                      |    |   | -                         |   |   | 44,500                               |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Increase      (decrease) in cash during the period                                                                                              |   |                                    (69) |    |   | (1,711                    | )      |   |        1                        |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Cash,      beginning of period                                                                                                                  |   | 70                                                                                                                                                                                                                     |    |   | 1,916                     |   |   | -                                    |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Cash,      end of period                                                                                                                        | $      |  1                                                                                                                                                                                                                |    | $      |  205                 |   | $      |          1            |   |
|                                                                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
| Supplemental      disclosure of cash flow information:                                                                                          |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|           Cash paid during the period                                                                                            |   |                                                                                                                                                                                                                   |    |   |                      |   |   |                                 |   |
|                          Taxes                                                                     | $      |  -                                                                                                                                                                                                                |    | $      |  -                   |   | $      |  -                              |   |
|                            Interest                                                                | $      |  -                                                                                                                                                                                                                |    | $      |  -                   |   | $      |  -                              |   |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| KUSHI RESOURCES      INC.              |
|----------------------------------------|
| (AN EXPLORATION STAGE      COMPANY)    |
| NOTES TO THE FINANCIAL      STATEMENTS |
| AUGUST 31,      2009                   |
| (Unaudited)                            |

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND      ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF      OPERATIONS. |
|---------|-------------------------------------------------------------------------------------------------------|

----

| Phase                 | Exploration      Program                                                                 | Approximate      Cost*             | Status                                                                                                                                                             |
|-----------------------|------------------------------------------------------------------------------------------|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| One    | Prospecting,      Trenchingand      Sampling andHelicopter-SupportedMagnetic      Survey | $22,000             | Completed      Helicopter-Supported      Magnetic Surveyat      a cost of $11,648. Thebalance      of this phase isexpected      to be completed inJune      2010. |
| Two                   | Coverage      of the areawith      VLF-EM andmagnetometer      surveys                   | between      $55,000 and $130,000  | Dependent      upon the results ofPhase      One.                                                                                                                  |
| Three                 | Geological      mapping andsampling                                                      | between      $175,000 and $215,000 | Dependent      upon the results ofPhase      Two.                                                                                                                  |
|                  | Total Estimated      Cost                                                                | between $250,000 and      $365,000 |                                                                                                                                                               |

| Category                                     | Planned Expenditures Over The      Next 12 Months (US$) |
|----------------------------------------------|---------------------------------------------------------|
| Legal      and Accounting Fees               | $47,200                                                 |
| Regulatory      and Other Operating Expenses | $7,000                                                  |
| Mineral      Property Exploration Expenses   | $12,150                                                 |
| TOTAL                                        | $66,350                                                 |

----

| Three Months      Summary                                                                          |   |                    |   |   |                 |   |   |            |   |
|----------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|----------------------|--------|--------|-----------------|--------|
|                                                                                               |   | Three      Months       |   |   | Three      Months    |   |   | Percentage      |   |
|                                                                                               |   | Ended                   |   |   | Ended                |   |   | Increase      / |   |
|                                                                                               |   | August      31, 2009    |   |   | August      31, 2008 |   |   | (Decrease)      |   |
| Expenses                | $      |         (740) |   | $      | (7,255)              |   |   | 90.01%          |   |
| Extraordinary      gain - debt forgiveness income                                                  |   | 45,320                  |   |   | -                    |   |   | n.a             |   |
|                                                                                               |   |                    |   |   |                 |   |   |            |   |
| Net      Gain (Loss)                                                                               | $      |  44,580            |   | $      |  (7,255         | )      |   | 714.5      %    |   |

|                                   |          | Three      Months               |   |   | Three      Months                                                   |   |   | Percentage      |   |
|----------------------------------------|---------------|---------------------------------|--------|--------|---------------------------------------------------------------------|--------|--------|-----------------|--------|
|                                   |          | Ended                           |   |   | Ended                                                               |   |   | Increase      / |   |
|                                   |          | August      31, 2009            |   |   | August      31, 2008                                                |   |   | (Decrease)      |   |
| Administrative      Fees               | $             |      - |   | $      |  1,060                                                         |   |   | n/a             |   |
| Bank      Charges and Interest         |          |  -                         |   |   | (14)                                                                |   |   | n/a             |   |
| Exploration      and Development       |          | -                               |   |   |                 - |   |   | n/a             |   |
| Foreign      exchaneg gains and losses |          |  42                        |   |   | -                                                                   |   |   | n/a             |   |
| Professional      Fees                 | ?   |    698           |   |   |  5,671                                                         |   |   | (87.7)%         |   |
| Regulatory                             |          |  -                         |   |   | 538                                                                 |   |   | n/a             |   |
| Total      Operating Expenses          | $             |  740                       |   | $      |  7,255                                                         |   |   | (90.0)%         |   |

| Six Months      Summary                           |   |                 |   |   |                       |   |   |            |   |
|---------------------------------------------------|--------|----------------------|--------|--------|----------------------------|--------|--------|-----------------|--------|
|                                              |   | Six      Months      |   |   | Six      Months            |   |   | Percentage      |   |
|                                              |   | Ended                |   |   | Ended                      |   |   | Increase      / |   |
|                                              |   | August      31, 2009 |   |   | August      31, 2008       |   |   | (Decrease)      |   |
| Expenses                                          | $      | (19,313)             |   | $      |  (34,710)             |   |   | (44.4%)         |   |
| Extraordinary      gain - debt forgiveness income |   | 45,320               |   |   |          4- |   |   | n.a.            |   |
| Net      Gain (Loss)                              | $      |        26,007   |   | $      |  (34,710              | )      |   | 174.9%          |   |

----

|                                   |   | Six      Months      |   |   | Six      Months      |   |   |   |
|----------------------------------------|--------|----------------------|--------|--------|----------------------|--------|--------|--------|
|                                   |   | Ended                |   |   | Ended                |   |   |   |
|                                   |   | August      31, 2009 |   |   | August      31, 2008 |   |   |   |
| Administrative      Fees               | $      |  3,000          |   | $      |  2,120          |   |   |   |
| Bank      Charges and Interest         |   | 78                   |   |   |  6              |   |   |   |
| Exploration      and Development       |   | -                    |   |   | 12,452               |   |   |   |
| Foreign      exchange gains and losses |   | 1,201           |   |   |                 |   |   |   |
| Professional      Fees                 |   | 14,984               |   |   | 18,519               |   |   |   |
|                                   |   |                 |   |   |                 |   |   |   |
|                                   |   |                 |   |   |                 |   |   |   |
| Regulatory                             |   | 50                   |   |   | 1,613                |   |   |   |
| Total      Operating Expenses          | $      |  19,313         |   | $      | 34,710               |   |   |   |

|  Working Capital                  |   |                 |   |   |                   |   |   |            |   |
|----------------------------------------|--------|----------------------|--------|--------|------------------------|--------|--------|-----------------|--------|
|                                   |   |                 |   |   |                   |   |   | Percentage      |   |
|                                   |   | At                   |   |   | At                     |   |   | Increase      / |   |
|                                   |   | August      31, 2009 |   |   | February      28, 2009 |   |   | (Decrease)      |   |
| Current      Assets                    | $      |  1              |   | $      |  70               |   |   | 658.6%          |   |
| Current      Liabilities               |   | (47,378              | )      |   | (73,454                | )      |   | (35.5)%         |   |
| Working      Capital Surplus (Deficit) | $      |  (47,377        | )      | $      |  (73,384          | )      |   | (35.4)%         |   |

| Cash Flows                                                 |   |                             |   |   |         |   |
|------------------------------------------------------------|--------|----------------------------------|--------|--------|--------------|--------|
|                                                       |   | Six      Months Ended August 31, |   |
|                                                       |   | 2009                             |   |   | 2008         |   |
| Cash      Flows Provided by (Used In) Operating Activities | $      |  (69)                       |   | $      |  (1,711 | )      |
| Cash      Flows (Used In) Investing Activities             |   | -                                |   |   | -            |   |
| Cash      Flows From Financing Activities                  |   | -                                |   |   | -            |   |
| Net      Increase (Decrease) In Cash During Period         | $      |  (69)                       |   | $      |  (1,711 | )      |

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costs forimpairment under SFAS No. 144, Accounting for Impairment orDisposal of Long Lived Assets at each fiscal quarter end. An impairmentis recognized when the sum of the expected undiscounted future cash flows isless than the carrying amount of the mineral property. Impairment losses, ifany, are measured as the excess of the carrying amount of the mineral propertyover its estimated fair value.  When it has been determined that amineral property can be economically developed as a result of establishingproven and probable reserves, the costs then incurred to develop such property,are capitalized. Such costs will be amortized using the units-of-productionmethod over the estimated life of the probable reserves. If mineral propertiesare subsequently abandoned or impaired, any capitalized costs will be charged tooperations.

| ITEM 3. | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.  |
|---------|------------------------------------------------------------------------|

| ITEM 4T. | CONTROLS AND      PROCEDURES.  |
|----------|-------------------------------------|

| ITEM 1. | LEGAL      PROCEEDINGS.  |
|---------|-------------------------------|

| ITEM 1A. | RISK      FACTORS.  |
|----------|--------------------------|

may exceedcurrent estimates. The Bee Peak Claim does not contain a known body ofcommercial ore and, therefore, any program conducted on the Bee Peak Claim wouldbe an exploratory search of ore. There is no certainty that any expendituresmade in the exploration of the Bee Peak Claim will result in discoveries ofcommercial quantities of ore. Most exploration projects do not result in thediscovery of

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| ·   | costs      of bringing the property into production including exploration work,      preparation of production feasibility studies, and construction of      production facilities, all of which we have not budgeted    for; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | availability      and costs of financing; |
|--------------------|-------------------------------------------|

| ·   | ongoing      costs of production; and |
|--------------------|---------------------------------------|

| ·   | environmental      compliance regulations andrestraints. |
|--------------------|----------------------------------------------------------|

acase, we would be unable to complete our business plan and investors could losetheir entire investment.

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|   | (i)    | Water      discharge will have to meet drinking water standards;                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                 |
|   | (ii)   | Dust      generation will have to be minimal or otherwise re-mediated;                                                                          |
|   | (iii)  | Dumping      of material on the surface will have to be re-contoured and re-vegetated      with natural vegetation;                                  |
|   |   |                                                                                                                                                 |
|   | (iv)   | An      assessment of all material to be left on the surface will need to be      environmentally benign;                                            |
|   |   |                                                                                                                                                 |
|   | (v)    | Ground      water will have to be monitored for any potential      contaminants;                                                                     |
|   |   |                                                                                                                                                 |
|   | (vi)   | The      socio-economic impact of the project will have to be evaluated and if      deemed negative, will have to be remediated; and                 |
|   |   |                                                                                                                                                 |
|   | (vii)  | There      will have to be an impact report of the work on the local fauna and flora      including a study of potentially endangered species.  |

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Aboriginal land claims may negatively impact ouroperations.

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| 1. | contains      a description of the nature and level of risk in the market for penny      stocks in both public offerings and secondary trading;                                                                                                         |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | contains      a description of the broker’s or dealer’s duties to the customer and of      the rights and remedies available to the customer with respect to a      violation to such duties or other requirements of securities      laws; |
| 3. | contains      a brief, clear, narrative description of a dealer market, including bid      and ask prices for penny stocks and the significance of the spread between      the bid and ask price;                                                       |
| 4. | contains      a toll-free telephone number for inquiries on disciplinary      actions;                                                                                                                                                                  |
| 5. | defines      significant terms in the disclosure document or in the conduct of trading      in penny stocks; and                                                                                                                                        |
| 6. | contains      such other information and is in such form, including language, type, size      and format, as the SEC shall require by rule or  regulation.                                                                                              |

The broker-dealer also must provide, prior to effecting anytransaction in a penny stock, the customer with: (a) bid and offer quotationsfor the penny stock; (b) the compensation of the broker-dealer and itssalesperson in the transaction; (c) the number of shares to which such bid andask prices apply, or other comparable information relating to the depth andliquidity of the market for such stock; and (d) a monthly account statementsshowing the market value of each penny stock held in the customer's account. Inaddition, the penny stock rules require that prior to a transaction in a pennystock not otherwise exempt from those rules; the broker-dealer must make aspecial written determination that the penny stock is a suitable investment forthe purchaser and receive the purchaser's written acknowledgment of the receiptof a

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| ITEM 2. | UNREGISTERED SALES OF EQUITY      SECURITIES AND USE OF PROCEEDS.  |
|---------|-------------------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR      SECURITIES.  |
|---------|---------------------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE      OF SECURITY HOLDERS.  |
|---------|-----------------------------------------------------------------|

| ITEM 5. | OTHER      INFORMATION.  |
|---------|-------------------------------|

| ITEM 6. | EXHIBITS. |
|---------|-----------|

| Exhibit |                                                                                                                                                                                          |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  | Description of      Exhibit                                                                                                                                                                   |
| 3.1     | Articles      of Incorporation.(1)                                                                                                                                                            |
| 3.2     | Bylaws.(1)                                                                                                                                                                                    |
| 10.1    | Bare      Trust Agreement dated January 30, 2006 executed by Rajan Rai as      Trustee.(1)                                                                                                    |
| 14.1    | Code      of Ethics.(1)                                                                                                                                                                       |
| 14.2    | Code      of Ethics, as amended.(2)                                                                                                                                                           |
| 31.1    | Certification      of Chief Executive Officer and Chief Financial Officer pursuant to Section      302 of the Sarbanes-Oxley Act of 2002.                                                     |
| 32.1    | Certification      of Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. |

| (1) | Previously      filed as an Exhibit to our Registration Statement on Form SB-2, as      amended, originally filed with the SEC on October 12,  2007.           |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Previously      filed as an exhibit to our Annual Report on Form 10-K for the fiscal year      ended February 28, 2009 filed with the SEC on June 10,    2009. |

SIGNATURES

|   |                              |   |   | KUSHI      RESOURCES INC.                                      |
|--------|-----------------------------------|--------|--------|----------------------------------------------------------------|
|   |                              |   |   |                                                           |
| Date:  |   October      20, 2009 |   | By:    | /s/ Kelly T.      Hickel                                       |
|   |                              |   |   | KELLY T.      HICKEL                                           |
|   |                              |   |   | Chief      Executive Officer, Chief Financial Officer          |
|   |                              |   |   | President,      Secretary and Treasurer                        |
|   |                              |   |   | (Principal      Executive Officer, Principal Financial Officer |
|   |                              |   |   | and      Principal Accounting Officer) 13                 |

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