**U.S.      SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM      10-QSB**

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**PAX      BIOFUELS INC.**

| **DELAWARE**                            |   | **98-0543691**                      |
|-----------------------------------------|--------|-------------------------------------|
| (State                of incorporation) |   | (Employer                ID Number) |

**1278      Laurel Road**

**North      Saanich, B.C. **

**Canada      V8L 5K8**

**(250)      655-3776**

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**PAX      BIOFUELS, INC.**

**(A      Development Stage Company)**

| **PART                  I.**  |   |   | **FINANCIAL                  INFORMATION**                                       |   |   | 1      |   |
|-------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|--------|--------|
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  1.      |   |   | Financial                  Information                                           |   |   | 1      |   |
|                          |   |   |                                                                             |   |   |   |   |
|                               |   |   | Balance                  Sheets                                                  |   |   | 1      |   |
|                          |   |   |                                                                             |   |   |   |   |
|                          |   |   | Statement                  of Operations                                         |   |   | 2      |   |
|                          |   |   |                                                                             |   |   |   |   |
|                          |   |   | Statement                  of Cash Flows                                         |   |   | 3      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  2.      |   |   | Management’s                  Discussion and Analysis or Plan of Operation |   |   | 5      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  3.      |   |   | Controls                  and Procedures                                         |   |   | 7      |   |
|                          |   |   |                                                                             |   |   |   |   |
| **PART                  II.** |   |   | **OTHER                  INFORMATION**                                           |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  1.      |   |   | Legal                  Proceedings                                               |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  2.      |   |   | Unregistered                  Sale of Securities                                 |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  3.      |   |   | Default                  of Senior Securities                                    |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  4.      |   |   | Submission                  of Matters to a Vote of Security Holders             |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  5.      |   |   | Other                  Information                                               |   |   | 8      |   |
|                          |   |   |                                                                             |   |   |   |   |
| ITEM                  6.      |   |   | Exhibits                  and Reports on Form 8-K                                |   |   | 9      |   |
|                          |   |   |                                                                             |   |   |   |   |
| **SIGNATURES**           |   |   |                                                                             |   |   | 10     |   |

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**PART      I.**
**FINANCIAL      INFORMATION**

**ITEM      **
**1.**
**Financial      Information**

**PAX      BIOFUELS INC.**

**(A      Development Stage Company)**

**Balance      Sheets**

|                                                                              |   | **October                31,****2007****(Unaudited)** |     | **April                30,****2007** |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------------------------------|----------|--------------------------------------|--------|
| **ASSETS**                                                                        |   |                                                  |     |                                 |   |
| **Current                Assets**                                                 |   |                                                  |     |                                 |   |
| Cash                                                                              |   | $                                                     | 8,022    |                                 | $      | 23 |   |
| Total                Current Assets                                               |   | $                                                     | 8,022    |                                 | $      | 23 |   |
| Equipment,                net                                                     |   |                                                  | 1,999    |                                 |   | 1,662 |   |
| TOTAL                ASSETS                                                  |   | $                                                     | 10,021   |                                 | $      | 1,685 |   |
|                                                                              |   |                                                  |     |                                 |   |   |   |
|                                                                              |   |                                                  |     |                                 |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                           |   |                                                  |     |                                 |   |   |   |
| **Current                Liabilities**                                            |   |                                                  |     |                                 |   |   |   |
| Accounts                payable and accrued liabilities                           |   | $                                                     | 12,854   |                                 | $      | 534 |   |
| Due                to related parties                                             |   |                                                  | 53,177   |                                 |   | 18,021 |   |
| Advances                payable                                                   |   |                                                  | 3,000    |                                 |   | - |   |
| Total                Current Liabilities                                          |   | $                                                     | 69,031   |                                 | $      | 18,555 |   |
|                                                                              |   |                                                  |     |                                 |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                           |   |                                                  |     |                                 |   |   |   |
| **Common                Stock**                                                   |   |                                                  |     |                                 |   |   |   |
| Authorized:                                                                       |   |                                                  |     |                                 |   |   |   |
| 100,000,000                common shares authorized, with a $0.001 par value      |   |                                                  |     |                                 |   |   |   |
| Issued:                                                                           |   |                                                  |     |                                 |   |   |   |
| 10,713,000                common shares issued and outstanding (October 31, 2007) |   |                                                  | 10,713   |                                 |   | 10,000 |   |
| Subscriptions                receivable                                           |   |                                                  | (253     | )                                    |   | 126 |   |
| Additional                Paid-In capital                                         |   |                                                  | 45,579   |                                 |   | 12,504 |   |
| Total                Common Stock                                                 |   | $                                                     | 56,039   |                                 | $      | 22,630 |   |
|                                                                              |   |                                                  |     |                                 |   |   |   |
| Deficit                accumulated during the development stage                   |   |                                                  | (115,049 | )                                    |   | (39,500 | ) |
|                                                                              |   |                                                  | (59,010  | )                                    |   | (16,870 | ) |
| TOTAL                LIABILITIES AND STOCKHOLERS’ EQUITY                    |   | $                                                     | 10,021   |                                 | $      | 1,685 |   |

**Accompanying        Notes Are an Integral Part of the Financial        Statements**

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**Statement      of Operations**

**(Unaudited)**

|                                                                   |   | **For                the****Three                months Ended****October                31, 2007** |       | **For                the Six months Ended****October                31, 2007** |   | **February                5, 2007****(Date                of Inception) to****October                31, 2007** |   |
|------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
| **Expenses**                                                           |   |                                                                                               |       |                                                                           |   |                                                                                                            |   |
| Amortization                                                           |   | $                                                                                                  | 162        |                                                                           | $      | 162                                                                                                             |   | $ | 162 |   |
| Bank                service charges                                    |   |                                                                                               | 152        |                                                                           |   | 233                                                                                                             |   |   | 257 |   |
| Management                fees                                         |   |                                                                                               | 18,888     |                                                                           |   | 37,025                                                                                                          |   |   | 53,689 |   |
| Miscellaneous                                                          |   |                                                                                               | 98         |                                                                           |   | 98                                                                                                              |   |   | 98 |   |
| Office                supplies                                         |   |                                                                                               | -          |                                                                           |   | 632                                                                                                             |   |   | 860 |   |
| Professional                fees                                       |   |                                                                                               | 17,791     |                                                                           |   | 36,080                                                                                                          |   |   | 37,060 |   |
| Communications                                                         |   |                                                                                               | -          |                                                                           |   | 264                                                                                                             |   |   | 264 |   |
| Travel                                                                 |   |                                                                                               | -          |                                                                           |   | 828                                                                                                             |   |   | 22,788 |   |
| Advertising                                                            |   |                                                                                               | -          |                                                                           |   | -                                                                                                               |   |   | 16 |   |
| Foreign                translation adjustment                          |   |                                                                                               | 237        |                                                                           |   | 227                                                                                                             |   |   | (145 | ) |
| Net                Loss                                                |   | $                                                                                                  | (37,328    | )                                                                              | $      | (75,549                                                                                                         | )      | $ | (115,049 | ) |
|                                                                   |   |                                                                                               |       |                                                                           |   |                                                                                                            |   |   |   |   |
| Net                Loss Per Share - Basic and Diluted                  |   | $                                                                                                  | (0.00      | )                                                                              | $      | (0.01                                                                                                           | )      |   |  |   |
|                                                                   |   |                                                                                               |       |                                                                           |   |                                                                                                            |   |   |   |   |
| Weighted                Average Shares Outstanding - Basic and Diluted |   |                                                                                               | 10,256,681 |                                                                           |   | 10,204,459                                                                                                      |   |   |  |   |

**Accompanying        Notes Are an Integral Part of the Financial Statements**

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**Statement      of Cash Flows**

**(Unaudited)**

|                                                          |   | **For                the****Three                months Ended****October                31, 2007** |    | **For                the Six months Ended****October                31, 2007** |   | **February                5, 2007****(Date                of Inception) to****October                31, 2007** |   |
|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
| **Cash                Flows From Operating Activities**       |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |
| Net                loss                                       |   | $                                                                                                  | (37,328 | )                                                                              | $      | (75,549                                                                                                         | )      | $ | (115,049 | ) |
| Add-back:                Accumulated amortization             |   |                                                                                               | 162     |                                                                           |   | 162                                                                                                             |   |   | 162 |   |
| **Change                in operating assets and liabilities** |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   | - |   |
| Accounts                payable and accrued liabilities       |   |                                                                                               | (410    | )                                                                              |   | 12,320                                                                                                          |   |   | 12,854 |   |
| Advances                payable                               |   |                                                                                               | 3,000   |                                                                           |   | 3,000                                                                                                           |   |   | 3,000 |   |
| Due                to related parties                         |   |                                                                                               | 26,884  |                                                                           |   | 35,156                                                                                                          |   |   | 53,177 |   |
| Net                Cash Used In Operating Activities          |   | $                                                                                                  | (7,692  | )                                                                              | $      | (24,911                                                                                                         | )      | $ | (45,856 | ) |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| **Cash                Flows From Financing Activities**       |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Proceeds                from issuance of common stock         |   |                                                                                               | 13,927  |                                                                           |   | 33,409                                                                                                          |   |   | 56,039 |   |
| Net                Cash Provided By Financing Activities      |   | $                                                                                                  | 13,927  |                                                                           | $      | 33,409                                                                                                          |   | $ | 56,039 |   |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| **Cash                Flows From Investing Activities**       |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Purchase                of equipment                          |   |                                                                                               | -       |                                                                           |   | (499                                                                                                            | )      |   | (1,163 | ) |
| Net                Cash Used In Investing Activities          |   |                                                                                               | -       |                                                                           | $      | (499                                                                                                            | )      | $ | (1,163 | ) |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Increase                (Decrease) in Cash                    |   | $                                                                                                  | 6,235   |                                                                           | $      | 7,999                                                                                                           |   | $ | 8,022 |   |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Cash                - Beginning                               |   | $                                                                                                  | 1,787   |                                                                           | $      | 23                                                                                                              |   |   | - |   |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Cash                - Ending                                  |   | $                                                                                                  | 8,022   |                                                                           | $      | 8,022                                                                                                           |   | $ | 8,022 |   |
|                                                          |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| **Supplemental                cash flow disclosures**         |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Cash                Paid For:                                 |   |                                                                                               |    |                                                                           |   |                                                                                                            |   |   |   |   |
| Interest                                                      |   |                                                                                               | -       |                                                                           |   | -                                                                                                               |   |   | - |   |
| Income                tax                                     |   |                                                                                               | -       |                                                                           |   | -                                                                                                               |   |   | - |   |
|                                                          |   |                                                                                               |  - |                                                                           |   | -                                                                                                               |   |   | - |   |

**Accompanying      Notes Are an Integral Part of the      Financial Statements**

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**Pax          Biofuels Inc.**

**(A          Development Stage Company)**

**Notes          to the Financial Statements**

**October          31, 2007**

**(Unaudited)**

**Note          1. **
**Basis          of Presentation**

*Unaudited          Interim Financial Statements*

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**ITEM      2.    **
**Management’s      Discussion and Analysis or Plan of Operation**

**Plan      of Operations**
** **

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**Liquidity      and Capital Resources**

**Results      of Operations for the **

**Three-Month      and Six-Month Periods Ended July 31, 2007 and October 31,      2007**

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**Off-Balance      Sheet Arrangements**

**ITEM      3.    **
**Controls      and Procedures**

**Evaluation      of Disclosure Controls and Procedures**

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**PART      II.**
**OTHER      INFORMATION**

| **ITEM              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

| **ITEM              2.** | **Unregistered                Sale of Securities** |
|--------------------------|----------------------------------------------------|

|  | · | None                of these issuances involved underwriters, underwriting discounts                or                commissions; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------|

|  | · | We                placed restrictive legends on all certificates issued; |
|--|--------|--------------------------------------------------------------------------|

|  | · | No                sales were made by general solicitation or advertising;                and |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | The                distributions were made only to investors who were accredited as                defined                in Regulation D or investors who qualified for solicitation under                Regulation S. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM              3.** | **Default                of Senior Securities** |
|--------------------------|-------------------------------------------------|

| **ITEM              4.** | **Submission                of Matters to a Vote of Security                Holders** |
|--------------------------|---------------------------------------------------------------------------------------|

| **ITEM              5.** | **Other                Information** |
|--------------------------|--------------------------------------|

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| **ITEM              6.** | **Exhibits                and Reports on Form 8-K** |
|--------------------------|-----------------------------------------------------|

**EXHIBITS      **

| **No.**  | **Description**                                                                                                                |
|----------|--------------------------------------------------------------------------------------------------------------------------------|
| **31.1** | Sec.                302 Certification of Principal Executive Officer, Financial Officer&                Accounting Officer |
|     |                                                                                                                           |
| **31.2** | Sec.                906 Certification of Principal Executive Officer, Financial Officer&                Accounting Officer |

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**SIGNATURES**

|                                   | **PAX                BIOFUELS INC.**                                                                                                            |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                                                                                                                            |
| Date:                December 14, 2007 | By:                                                                                                                                             | /s/                Paul Leslie Hammond |
|                                   | Principal                Executive Officer, Principal Financial Officer and Principal Accounting                Officer, President and Director |

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**EXHIBIT      INDEX**

| **No.**  | **Description**                                                                                                                |
|----------|--------------------------------------------------------------------------------------------------------------------------------|
| **31.1** | Sec.                302 Certification of Principal Executive Officer, Financial Officer&                Accounting Officer |
|     |                                                                                                                           |
| **31.2** | Sec.                906 Certification of Principal Executive Officer, Financial Officer&                Accounting Officer |

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