UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

|[X] |  | QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE
                                          SECURITIES EXCHANGE ACT OF 1934
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

| | For
the quarterly period ended:  June 30, 2005
| | ----------------------------------------------

|[   ] |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                          SECURITIES EXCHANGE ACT OF 1934
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

Commission file number: 333-113383

CHILCO RIVER HOLDINGS INC.

---

|Nevada
(State or other jurisdiction of
incorporation or organization) | 98-0419129
(I.R.S. Employer
Identification No.)
|--------------------------------------------------------------------- | -----------------------------------------------

|16027 Arrow Hwy Suite D 
     Irwindale, CA(Address of principal executive offices) | 91706
(zip code)
|----------------------------------------------------------------------------------- | ----------------

Issuer's Telephone Number:  
(646)
330-5859

Check
 whether  the issuer (1) filed all  reports  required to be filed by Section 13 or
                  15(d) of the  Securities  Exchange  Act of 1934  during  the  preceding
 12  months  (or for such                   shorter period that the  registrant was
required to file such reports),  and (2) has been subject                   to such
filing requirements for the past 90 days.

Yes  [X]       No  
[    ]

As of August 5, 2005 there were
21,450,000 shares of common stock outstanding.

Transitional
Small Business Disclosure Format (check one)

Yes  [    ]       No  
[X]

---

Chilco River Holdings Inc.
(An Exploration Stage Company)

June 30, 2005

|                                  | Page
|--------------------------------- | ----
|Balance Sheets                    |     
|Statements of Operations          |     
|Statements of Cash Flows          |     
|Notes to the Financial Statements |     

---

Chilco River Holdings Inc.
 (An Exploration Stage Company) 
Balance Sheets 
(Expressed in US dollars)

|                                                              | June 30,
2005
$
(unaudited) | December 31,
2004
$
(audited)
|------------------------------------------------------------- | --------------------------- | -----------------------------
|ASSETS                                                        |                             |                              
|                                                             
|Current Assets                                                |                            
|Cash and cash equivalents                                     |                             | 40,381                       
|Prepaid expenses                                              |                             | 87                           
|                                                             
|Total Assets                                                  |                             | 40,468                       
|                                                             
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)                |                            
|                                                             
|Current Liabilities                                           |                            
|                                                             
|Accounts payable                                              |                             | 2,743                        
|Accrued liabilities                                           |                             | 4,114                        
|Note payable (Note 5)                                         |                             | 50,000                       
|                                                             
|Total Liabilities                                             |                             | 56,857                       
|                                                             
|                                                             
|Commitments and Contingencies (Notes 1 and 4)                 |                            
|                                                             
|Stockholders Equity (Deficit)                                |                            
|                                                             
|Common Stock, 100,000,000 shares authorized, $0.001 par value |                            
|6,114,000 shares issued and outstanding (December 31, 2004 -  |                            
|6,064,000 shares)                                             |                             | 6,114                        
|                                                             
|Additional Paid in Capital                                    |                             | 67,936                       
|                                                             
|Donated Capital (Note 3)                                      |                             | 25,500                       
|                                                             
|Deficit Accumulated During the Exploration Stage              |                             | (115,939                     
|                                                             
|                                                             
|Total Stockholders Equity (Deficit)                          |                             | (16,389                      
|                                                             
|                                                             
|Total Liabilities and Stockholders Equity (Deficit)          |                             | 40,468                       
|                                                             

1
(The accompanying ntoes are an
integral part of these financial statements)



---

Chilco River Holdings Inc.
 (An Exploration Stage Company) 
Statement of Operations
(Expressed in US dollars) 
(unaudited)

|                                       | Accumulated From
May 8, 2003
(Date to inception)
to June 30, | Three Months
Ended
June 30, | Six Months
Ended
June 30,
|-------------------------------------- | ------------------------------------------------------------ | --------------------------- | -------------------------
|
|                                      
|Revenue                                |                                                              | --                          |                          
|                                      
|                                      
|Expenses                               |                                                             
|                                      
|Interest and bank charges              |                                                              | 1,092                       |                          
|Management fees (Note 3)               |                                                              | 16,932                      |                          
|Mineral property costs                 |                                                              | 15,174                      |                          
|Office and general                     |                                                              | 8,607                       |                          
|Professional fees                      |                                                              | 61,134                      |                          
|Rent (Note 3(a))                       |                                                              | 13,000                      |                          
|                                      
|                                       |                                                              | 115,939                     |                          
|                                      
|Net Loss For the Period                |                                                              | (115,939                    | )                        
|                                      
|Net Loss Per Share - Basic and Diluted |                                                              | --                          |                          
|                                      
|Weighted Average Shares Outstanding    |                                                              | 6,088,000                   |                          
|                                      

2
(The accompanying ntoes are an
integral part of these financial statements)

---

Chilco River Holdings Inc.
 (An Exploration Stage Company) 
Statement of Cash Flows
(Expressed in US dollars) 
(unaudited)

|                                                       | Six Months
ended
June 30,
2005
$ | Six Months
Ended
June 30,
2004
$
|------------------------------------------------------ | -------------------------------- | --------------------------------
|Cash Flows Used In Operating Activities                |                                  |                                 
|                                                      
|Net loss for the period                                |                                  | (29,234                         
|                                                      
|Adjustment to reconcile net loss to cash used in       |                                 
|operating activities:                                  |                                 
|Donated services and rent                              |                                  | 5,500                           
|                                                      
|Changes in operating assets and liabilities:           |                                 
|(Decrease) in accounts payable and accrued liabilities |                                  | (11,871                         
|(Increase) in prepaid expenses                         |                                  | --                              
|                                                      
|Net Cash Used in Operating Activities                  |                                  | (35,605                         
|                                                      
|Cash Flows From Investing Activities                   |                                  | --                              
|                                                      
|Cash Flows From Financing Activities                   |                                 
|                                                      
|Proceeds from note payable                             |                                  | 50,000                          
|Proceeds from issuance of common stock                 |                                  | 23,000                          
|                                                      
|Net Cash Flows Provided By Financing Activities        |                                  | 73,000                          
|                                                      
|Increase (Decrease) In Cash & Cash Equivalents         |                                  | 37,395                          
|                                                      
|Cash & Cash Equivalents - Beginning of Period          |                                  | 2,986                           
|                                                      
|Cash & Cash Equivalents - End of Period                |                                  | 40,381                          
|                                                      
|Non-cash Investing and Financing Activities            |                                  | --                              
|                                                      
|                                                      
|Supplemental Disclosures                               |                                 
|Interest paid                                          |                                  | --                              
|Income taxes paid                                      |                                  | --                              
|                                                      

3
(The accompanying ntoes are an
integral part of these financial statements)

---

Chilco River Holdings Inc.
(An Exploration Stage Company)
Notes to the Financial Statements 
June 30, 2005
(Unaudited)

|1. |  | Exploration
Stage Company
|-- |  | -------------------------

| | The
Company was incorporated in the State of Nevada on May 8, 2003. The Company has acquired
a 100% interest in 16 mineral claim units located in British Columbia, Canada. The
Company is an Exploration Stage Company, as defined by Statement of Financial Accounting
Standard (SFAS) No.7 Accounting and Reporting for Development Stage
Enterprises. The Companys principal business is the acquisition and
exploration of mineral resources. The Company has not presently determined whether its
properties contain mineral reserves that are economically recoverable.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
July 15, 2005, the Company entered into a Share Exchange Agreement with KUBUK
International Inc. (KUBUK), a California corporation. KUBUK owns and
operates, through two wholly-owned subsidiaries, the Hotel Cinco Estrallas (known as the
Bruce Hotel and Casino), located in Lima, Peru. The Company will acquire, by
way of reverse acquisition, 100% of the issued and outstanding capital stock of KUBUK in
exchange for the issuance of 19,250,000 split-adjusted shares of common stock. Directors
of the Company will return, for no consideration, 3,964,000 split-adjusted shares of
common stock to the Company for cancellation.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
June 30, 2005, the Company had a working capital deficiency of $16,389, and has
accumulated losses of $115,939 since inception. These financial statements have been
prepared on a going concern basis, which implies the Company will continue to realize its
assets and discharge its liabilities in the normal course of business. The continuation
of the Company as a going concern and the ability of the Company to emerge from the
development stage with respect to any planned principal business activity is dependent
upon the continued financial support from its shareholders, the ability of the Company to
obtain necessary equity financing to continue operations and to close the share exchange
agreement with KUBUK, the ability to determine the existence, discovery and successful
exploitation of economically recoverable reserves in its resource properties,
confirmation of the Companys interests in the underlying properties, and the
attainment of profitable operations. These financial statements do not include any
adjustments to the recoverability and classification of recorded asset amounts and
classification of liabilities that might be necessary should the Company be unable to
continue as a going concern. These factors raise substantial doubt regarding the Companys
ability to continue as a going concern.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Company filed an SB-2 Registration Statement with the United States Securities and
Exchange Commission that was declared effective August 6, 2004 to register 2,064,000
split-adjusted shares of common stock for resale by existing shareholders of the Company.
The Company did not receive any proceeds from the resale of shares of common stock by the
selling stockholders.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
May 5, 2005, the Company issued a note payable for $50,000 in cash proceeds. On May 18,
2005, the Company issued 50,000 split-adjusted shares of common stock to a director of
the Company for cash proceeds of $23,000.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Summary
of Significant Accounting Policies
|-- |  | ------------------------------------------

| | a) |  | Basis
of Presentation
| | -- |  | ---------------------

| | These
financial statements and related notes are presented in accordance with accounting
principles generally accepted in the United States, and are expressed in US dollars. The
Companys fiscal year-end is December 31.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) |  | Use
of Estimates
| | -- |  | ----------------

| | The
preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | c) |  | Basic
and Diluted Net Income (Loss) Per Share
| | -- |  | ---------------------------------------------

| | The
Company computes net income (loss) per share in accordance with SFAS No. 128, Earnings
per Share. SFAS No. 128 requires presentation of both basic and diluted
earnings per share (EPS) on the face of the income statement. Basic EPS is computed by
dividing net income (loss) available to common shareholders (numerator) by the weighted
average number of shares outstanding (denominator) during the period. Diluted EPS gives
effect to all dilutive potential common shares outstanding during the period using the
treasury stock method and convertible preferred stock using the if-converted method. In
computing Diluted EPS, the average stock price for the period is used in determining the
number of shares assumed to be purchased from the exercise of stock options or warrants.
Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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Chilco River Holdings Inc.
(An Exploration Stage Company)
Notes to the Financial Statements 
June 30, 2005
(Unaudited)

|2. |  | Summary
of Significant Accounting Policies (continued)
|-- |  | ------------------------------------------------------

| | d) |  | Comprehensive
Loss
| | -- |  | ------------------

| | SFAS
No. 130, Reporting Comprehensive Income, establishes standards for the
reporting and display of comprehensive loss and its components in the financial
statements. As at June 30, 2005 and 2004, the Company has no items that represent
comprehensive loss and, therefore, has not included a schedule of comprehensive loss in
the financial statements.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | e) |  | Cash
and Cash Equivalents
| | -- |  | -------------------------

| | The
Company considers all highly liquid instruments with maturity of three months or less at
the time of issuance to be cash equivalents.
| | -----------------------------------------------------------------------------------------------------------------------------------------

| | f)
 Mineral Property Costs   The Company has been in the exploration stage
since its formation on May 8, 2003 and has not yet realized any revenues from its planned
operations. It is primarily engaged in the acquisition and exploration of mining
properties. Mineral property acquisition and exploration costs are expensed as incurred.
When it has been determined that a mineral property can be economically developed as a
result of establishing proven and probable reserves, the costs incurred to develop such
property, are capitalized. Such costs will be amortized using the units-of-production
method over the estimated life of the probable reserve. If mineral properties are
subsequently abandoned or impaired, any capitalized costs will be charged to operations.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | g) |  | Financial
Instruments
| | -- |  | ---------------------

| | The
fair values of cash, prepaid expenses, accounts payable and accrued liabilities, and note
payable approximate their carrying values due to the immediate or short-term maturity of
these financial instruments.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | h) |  | Income
Taxes
| | -- |  | ------------

| | Potential
benefits of income tax losses are not recognized in the accounts until realization is
more likely than not. The Company has adopted SFAS No. 109 Accounting for Income
Taxes as of its inception. Pursuant to SFAS No. 109 the Company is required to
compute tax asset benefits for net operating losses carried forward. Potential benefit of
net operating losses have not been recognized in these financial statements because the
Company cannot be assured it is more likely than not it will utilize the net operating
losses carried forward in future years.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | i) |  | Foreign
Currency Translation
| | -- |  | ----------------------------

| | The
Companys functional and reporting currency is the United States dollar. Foreign
currency transactions are occasionally undertaken in Canadian dollars and are translated
into United States dollars using exchange rates at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are remeasured at each balance
sheet date at the exchange rate prevailing at the balance sheet date. Foreign currency
exchange gains and losses are charged to operations. The Company has not, to the date of
these financial statements, entered into derivative instruments to offset the impact of
foreign currency fluctuations.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | j) |  | Recent
Accounting Pronouncements
| | -- |  | --------------------------------

| | In
December 2004, FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets An
Amendment of APB Opinion No. 29". The guidance in APB Opinion No. 29, Accounting
for Nonmonetary Transactions, is based on the principle that exchanges of
nonmonetary assets should be measured based on the fair value of the assets exchanged.
The guidance in that Opinion, however, included certain exceptions to that principle.
SFAS No. 153 amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges
of similar productive assets and replaces it with a general exception for exchanges of
nonmonetary assets that do not have commercial substance. A nonmonetary exchange has
commercial substance if the future cash flows of the entity are expected to change
significantly as a result of the exchange. The provisions of SFAS No. 153 are effective
for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15,
2005. Early application is permitted and companies must apply the standard prospectively.
The adoption of this standard is not expected to have a material effect on the Companys
results of operations or financial position.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

---

Chilco River Holdings Inc.
(An Exploration Stage Company)
Notes to the Financial Statements 
June 30, 2005
(Unaudited)

|2. |  | Summary
of Significant Accounting Policies (continued)
|-- |  | ------------------------------------------------------

| | j) |  | Recent
Accounting Pronouncements
| | -- |  | --------------------------------

| | In
December 2004, the Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standard (SFAS) No. 123R, Share Based Payment. SFAS 123R
is a revision of SFAS No. 123 Accounting for Stock-Based Compensation, and
supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees and
its related implementation guidance. SFAS 123R establishes standards for the accounting
for transactions in which an entity exchanges its equity instruments for goods or
services. It also addresses transactions in which an entity incurs liabilities in
exchange for goods or services that are based on the fair value of the entitys
equity instruments or that may be settled by the issuance of those equity instruments.
SFAS 123R focuses primarily on accounting for transactions in which an entity obtains
employee services in share-based payment transactions. SFAS 123R requires a public entity
to measure the cost of employee services received in exchange for an award of equity
instruments based on the grant-date fair value of the award (with limited exceptions).
That cost will be recognized over the period during which an employee is required to
provide service in exchange for the award  the requisite service period (usually
the vesting period). SFAS 123R requires that the compensation cost relating to
share-based payment transactions be recognized in financial statements. That cost will be
measured based on the fair value of the equity or liability instruments issued. Public
entities that file as small business issuers will be required to apply SFAS 123R in the
first interim or annual reporting period that begins after December 15, 2005. The
adoption of this standard is not expected to have a material effect on the Companys
results of operations or financial position.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
March 2005, the SEC staff issued Staff Accounting Bulletin No. 107 (SAB 107)
to give guidance on the implementation of SFAS 123R. The Company will consider SAB 107
during implementation of SFAS 123R.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
FASB has also issued SFAS No. 151 and 152, but they will not have relationship to the
operations of the Company. Therefore a description and its impact for each on the Companys
operations and financial position have not been disclosed.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | k) |  | Interim
Financial Statements
| | -- |  | ----------------------------

| | These
interim unaudited financial statements for the period ended June 30, 2005 have been
prepared on the same basis as the annual financial statements and in the opinion of
management, reflect all adjustments, which include only normal recurring adjustments,
necessary to present fairly the Companys financial position, results of operations
and cash flows for the periods shown. The results of operations for such periods are not
necessarily indicative of the results expected for a full year or for any future period.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | l) |  | Reclassification
| | -- |  | ----------------

| | Certain
reclassifications have been made to the prior years financial statements to conform
to the current periods presentation.
| | ----------------------------------------------------------------------------------------------------------------------------------

|3. |  | Related
Party Transactions
|-- |  | --------------------------

| | (a) |  | The
President provided management services to the Company until May 31, 2005 and
          provides office premises to the Company at no charge. These donated services
          were valued at $500 per month and the office premises are valued at $500 per
          month. During the three months ended June 30, 2005, donated services of $1,000
          (2004  $1,500) and donated rent expense of $1,500 (2004  $1,500)
          were charged to operations.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | Management
fees of $3,000 were paid to a director of the Company during the           period ended
June 30, 2005.
| | --- |  | -----------------------------------------------------------------------------------------------------------------

| | (c) |  | On
May 18, 2005, the Company issued 50,000 split-adjusted shares of common stock
          to the President of the Company for cash proceeds of $23,000.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Mineral
Properties
|-- |  | ------------------

| | The
Company entered into a Sale and Acquisition Agreement dated November 3, 2003 with
Nicholson & Associates Natural Resource Development Inc. (Nicholson) to
acquire a 100% interest in one unpatented mineral claim representing 16 units located in
British Columbia, Canada. To acquire a 100% interest in these claims, the Company paid
$12,500 representing $3,906 for research, $1,563 for claim staking, $3,125 for a
geological report and $3,906 of assessment costs. The claims are subject to a 2.5% net
smelter returns royalty and a 7.5% gross rock royalty. Advance royalty payments of
$25,000 are due each year commencing November 3, 2006 until the commencement of
commercial production. The total amount paid, $12,500, was charged to operations during
the period ended December 31, 2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

---

Chilco River Holdings Inc.
(An Exploration Stage Company)
Notes to the Financial Statements 
June 30, 2005
(Unaudited)

|5. |  | Note
Payable
|-- |  | ------------

| | On
May 5, 2005, the Company issued a note payable to an unrelated company for $50,000 in cash
proceeds. The note is due on November 5, 2005, bears interest at 8% per annum, and is
secured by all property of the Company. As at June 30, 2005, $614 of interest has been
accrued.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | Common
Stock
|-- |  | ------------

| | On
May 18, 2005, the Company issued 50,000 split-adjusted shares of common stock to a
director of the Company for cash proceeds of $23,000. Refer to Note 7(a).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. |  | Subsequent
Events
|-- |  | -----------------

| | (a) |  | On
July 11, 2005 the Company declared a stock dividend of two shares of common
          stock for each one share of common stock outstanding. All share amounts have
          been retroactively restated to reflect the stock dividend.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | On
July 15, 2005, the Company entered into a Share Exchange Agreement (the           Agreement)
with KUBUK International Inc. (KUBUK), a           California corporation.
KUBUK owns and operates, through two wholly-owned           subsidiaries, the Hotel Cinco
Estrallas (known as the Bruce Hotel and           Casino), located in Lima,
Peru. On August 3, 2005, the Company acquired,           by way of reverse acquisition,
100% of the issued and outstanding capital stock           of KUBUK in exchange for the
issuance of 19,250,000 split-adjusted shares of           common stock (the Exchange
Shares). Under the terms of the           Agreement, the former KUBUK shareholders
entered into an escrow agreement dated           August 3, 2005, under which 8,250,000
Exchange Shares were placed into escrow           subject to satisfying certain
obligations under the Agreement. The former           shareholders placed 5,000,000
Exchange Shares into escrow to secure obligations           to raise $5,000,000 at a
minimum share price of $1.00 per share, 2,000,000           Exchange Shares into escrow
to satisfy certain obligations to consultants to           KUBUK, and 1,250,000 Exchange
Shares in escrow for the purpose of exercising           certain co-sale rights granted
by the Company. Directors of the Company will           return, for no consideration,
3,964,000 split-adjusted shares of common stock to           the Company for
cancellation. The Company received bridge loans of $100,000. On           August 3, 2005,
the Company issued 50,000 split-adjusted shares of common stock           at a price of
$2.00 per share in full satisfaction of the bridge financing.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

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# Item 2.   Plan of
Operation.

All
statements other than statements of historical or current facts included in this report on
Form 10-QSB or incorporated by reference herein, including, without limitation, statements
regarding our future financial position, business strategy, budgets, projected costs and
plans and objectives of management for future operations, are forward-looking statements.
Forward-looking statements generally can be identified by the use of forward-looking
terminology such as may, will, expect,
intend, estimate, anticipate, believe or
continue or the negative thereof or variations thereon or similar terminology.
These statements involve known and unknown risks, uncertainties and other factors that may
cause our actual results and performance to be materially different from any future
results or performance expressed or implied by these forward-looking statements. These
factors include, among other things, those matters discussed under the caption Risk
Factors attached hereto as Exhibit 99.1 as well as the following:

| |  |  | the
impact of general economic conditions in the Peru;
| | - |  | ------------------------------------------------------

| |  |  | industry
conditions, including competition;
| | - |  | -------------------------------------------

| |  |  | business
strategies and intended results;
| | - |  | -----------------------------------------

| |  |  | our
ability to integrate acquisitions into our operations and management;
| | - |  | -------------------------------------------------------------------------

| |  |  | risks
associated with the hotel industry and real estate markets in general;
| | - |  | ----------------------------------------------------------------------------

| |  |  | the
impact of terrorist activity or war, threats of terrorist activity or war and responses
to terrorist activity on the economy in general and the travel and hotel industries in
particular;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | travelers'
fears of exposure to contagious diseases;
| | - |  | ----------------------------------------------------

| |  |  | legislative
or regulatory requirements; and
| | - |  | -------------------------------------------

| |  |  | access
to capital markets.
| | - |  | --------------------------

Although we believe that these
statements are based upon reasonable assumptions, we can give no assurance that our goals
will be achieved. Given these uncertainties, prospective investors are cautioned not to
place undue reliance on these forward-looking statements. These forward-looking statements
are made as of the date of this report. We assume no obligation to update or revise them
or provide reasons why actual results may differ.

# Overview

We
were incorporated on May 8, 2003 under the laws of the State of Nevada. We maintain our
registered agents office at 6100 Neil Road, Suite 500, Reno, Nevada 89511, and our
principal executive office is located at 16027 Arrow Hwy Suite D, Irwindale, CA 91706, and
an office at the Bruce Hotel & Casino at Jirón Francisco Bolognesi # 171-191 in
the Miraflores District, Province and Department of Lima.

Our
Mineral Exploration Business

Since
our inception until the acquisition of the Bruce Hotel & Casino described below, we
have been engaged in the business of acquiring mineral exploration properties. We
currently own all rights, title and interest in one property located in British Columbia,
Canada. We purchased all right, title and interest in one unpatented claim in the New
Westminster Mining Division of the Province of British Columbia, known as the PEG Claim
under an agreement dated November 3, 2003. The claim consists of 16 units located in
southwestern British Columbia, Canada, from Nicholson & Associates of Vancouver,
British Columbia, subject to a 2-1/2% net smelter royalty and a 7-1/2% gross rock revenue
royal from the sale of rock and gravel to NIC. We have the right to reduce the net smelter
royalty to 1% by paying Nicholson & Associates $1 million within 12 months from the
date we commence commercial production on the property. We agreed to pay advance royalties
of $25,000 annually commencing on November 3, 2006. Nicholson & Associates agreed to
provide to us with geological consulting services for the claims and to maintain the
claims in good standing for at least 24 months from the recording date of claim.

We
completed an initial exploration program on the PEG Claim, at a cost of $2,854. A report
has been prepared which recommended a further two-stage program. We will not be able to
determine whether or not our mineral claim contains a commercially exploitable mineral
deposit until appropriate further exploratory work is done and an economic evaluation
based on that work concludes economic viability. Our property is an exploration stage
property with no known ore reserves, and we cannot assure you that any commercially viable
mineral deposit

8

---

exists on our property. We were
unable to secure funding to conduct additional exploration work on the PEG Claim and we
suspended work on the PEG Claim. Our management began exploring other business
opportunities at the beginning of 2005.

Forward
Stock Split

On
July 11, 2005 at 5:00 p.m. (Eastern Standard Time)(Record Date), we effected a 2 for 1
forward stock split of our issued and outstanding shares of common stock, par value
$0.001, by way of share dividend payable upon surrender of certificates pursuant to
Section 78.215 of the Nevada General Registrant Law. The share dividend is payable upon
surrender of the outstanding share certificates. Shareholders are required to surrender
their existing share certificates representing shares of common stock issued before the
Record Date by tendering the such share certificates to our transfer agent. Upon surrender
of the outstanding share certificates representing the issued and outstanding shares of
common stock held by shareholders on the Record Date, our transfer agent will issue new
share certificates giving effect to the share dividend so that each one share of common
stock of the Registrant issued and outstanding prior to the Record Date shall represent
two post-split shares of our common stock. Immediately prior to the stock dividend, we had
3,057,000 shares of common stock issued and outstanding. After giving effect to the stock
dividend, we had 6,114,000 shares of common stock issued and outstanding.

Acquisition
of Bruce Hotel & Casino

On
July 15, 2005, we entered into a Share Exchange Agreement with Kubuk International, Inc.,
a California corporation; its shareholders, Tom Liu, David Liu, Lee Kuen Cheung, Wai Yung
Lau, Zheng Liu, Yizhi Zeng, Luisa Wong, Jack Xu, Yong Yang and Guoxiu Yan; and Tom Liu, as
Shareholders Representative. Under the terms of the Share Exchange Agreement, we agreed to
acquire all of the issued and outstanding capital stock of Kubuk from the Shareholders.
Kubuk owns and operates, through its wholly-owned subsidiaries, Kubuk Investment SAC and
Kubuk Gaming SAC, the Hotel Cinco Estrellas in Lima, Peru (also known as the Bruce Hotel
and Casino), and owns all of the assets, licenses and other rights used in connection with
the business of the Bruce Hotel and Casino. We closed the share exchange transaction on
August 3, 2005, and Kubuk International, Inc. became our wholly-owned subsidiary. Under
the terms of the Share Exchange Agreement, the former Kubuk shareholders entered into an
escrow agreement dated August 3, 2005, under which 8,250,000 shares of our common stock
were placed into escrow subject to satisfying certain obligations under the Agreement. The
former shareholders placed 5,000,000 shares of our common stock into escrow to secure
obligations to raise $5,000,000 at a minimum share price of $1.00 per share, 2,000,000
shares of our common stock into escrow to satisfy certain obligations to consultants to
Kubuk, and 1,250,000 common shares in escrow for the purpose of exercising certain co-sale
rights granted by us. Our directors will return, for no consideration, 3,964,000
split-adjusted shares of common stock to the Company for cancellation. The Company
received bridge loans of $100,000 related to the transaction. On August 3, 2005, we issued
50,000 split-adjusted shares of common stock at a price of $2.00 per share in full
satisfaction of the bridge financing.

As
the acquisition of Kubuk International, Inc. occurred subsequent to the last day of the
quarter covered by this report of Form 10-QSB, the financial statements contained in this
report do not reflect the operations of Kubuk International, Inc.

# Plan of Operation

We
intend to continue the operations of the Bruce Hotel and Casino over the next twelve
months and beyond. The Bruce Hotel & Casino is located at Jirón Francisco
Bolognesi # 171-191 in the Miraflores District, Province and Department of Lima,
approximately 30 minutes from Jorge Charvez International Airport in the heart of
Miraflores. The Bruce Hotel & Casino is a destination hotel and casino
location for visitors traveling to the Republic of Peru and caters to visitors from the
Peoples Republic of China.

The
Bruce Hotel & Casino is a full service hospitality facility with standard and premium
lodging accommodations (rooms and suites). In addition, the hotel encompasses several
dining facilities and a full featured Gambling Casino with traditional gaming tables and
slot machines.

9

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Hotel:
The Bruce Hotel & Casino is a 60 room full service hospitality facility with standard
and premium lodging accommodations (rooms and suites) and dining facilities. The amenities
include guest suites and rooms, sauna, air conditioning, mini-bar, telephone, hair dryer,
wake-up service/alarm-clock, radio, satellite TV and safe deposit boxes. The hotel can
accommodate 200 guests. In addition, the hotel offers a gaming room, meeting/banquet
facilities and a barber/beauty shop. The room fare ranges from $70 for a standard room to
$95 for an executive suite.

The
area surrounding the Bruce Hotel and Casino is primarily urban infrastructure, such as
asphalt roads, concrete sidewalks, city water and sewage, public electricity and garbage
collection as well as phone lines. The Bruce Hotel and Casino is located on commercial
property and is located on a major thoroughfare. Miraflores District is one of the most
important financial and commercial centers of Lima and approximately 20 minutes from the
historical center of Lima.

Restaurants:
The Bruce Hotel & Casino features two full service restaurants serving Chinese and
international cuisine. The restaurants seat 200 guests, respectively. The Bruce Hotel
& Casino holds a retail liquor license.

Gaming
Casino: The gaming casino is a full featured casino with 20 traditional gaming tables
(blackjack, roulette, craps and poker) and approximately 220 slot machines. The casino is
located on the second floor of the Hotel and is approximately 622 square meters. The
casino features two full bars, VIP area and can accommodate 300 guests.

The
gaming casino operates under a gaming license issued to Kubuk Gaming SAC by the Republic
of Peru. The gaming casino is currently closed for remodeling and is scheduled to reopen
to the public in the fourth quarter of 2005.

Slot
Room: The slot room is located on the first floor of the Hotel next to the lobby. The
slot room features 212 slot machines and can accommodate approximately 300 guests.

Real
Property: Kubuk owns all of the real property and assets used in the operation of the
Bruce Hotel & Casino. The property consists of one seven-story building and one
fourteen-story building that are physically connected and have been configured for use as
a hotel, casino and office space. The property also includes a parking garage. Kubuk owns
all of the fixtures, improvements, systems, furniture, gaming machines and gaming tables
and the other contents currently used in the business of the Bruce Hotel & Casino.

Satisfaction
of cash obligations for the next 12 months.The company intends to use a
combination of available cash and additional financing to meet obligations over the next
twelve months. The company intends to secure financing in the amount of $5,000,000 in one
or more transactions as soon as practicable on terms acceptable to us (the
Financing Transaction), and to raise an additional
$20,000,000 (the Subsequent Financing Transaction) for
working capital purposes. The company intends to use the proceeds from these transactions,
if any, to expand, renovate and modernize the current facilities of the Bruce Hotel &
Casino. As of the date of Closing, we had no firm commitments with respect to the
Financing Transaction or the Subsequent Financing Transaction.

Summary
of any product research and development that we will perform for the term of the plan.The company does not anticipate performing any significant product research
and development under its plan of operation.

Expected
purchase or sale of plant and significant equipment.The company does not
anticipate the purchase or sale of any plant or significant equipment, as such items are
not required by the Company at this time or in the next 12 months.

Significant
changes in number of employees.The company currently does not anticipate
substantial changes in the number of employees.

10

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# Liquidity and Capital
Resources

As an exploration company, we have
relied upon outside funding to support our continued operations. With the acquisition of
the Bruce Hotel & Casino and the refocusing of our business on hospitality, we will
require additional capital to complete the remodel of the casino and resume operations of
the casino. If we are not able to generate sufficient revenues and cash flows or obtain
additional or alternative funding, we will be unable to continue as a going concern. Our
recurring losses and negative cash flow from operations raise substantial doubt about our
ability to continue as a going concern.

As at June 30, 2005 we had cash of
$40,381 and a working capital deficit of $16,389.

# Off-Balance Sheet
Arrangements

Under
the terms of the Share Exchange Agreement, the Registrant, KUBUK and the Shareholders
agreed that the Registrant would satisfy certain debt obligations prior to the closing of
the Share Exchange. The Registrant borrowed certain funds from lenders (the
Lenders) pursuant to bridge loans in the amount of
$100,000 (the Bridge Loans) to satisfy certain current
liabilities due immediately prior to Closing. The Lenders and the Registrant agreed to
convert the Bridge Loans into shares of common stock of the Registrant at $2.00 per share.

The
Registrant and the Lenders entered into stock subscription agreements under which the
Registrant issued 50,000 shares of common stock to the Lender in full satisfaction of the
Bridge Loans.

# Item 3.   Controls and
Procedures

We
maintain disclosure controls and procedures designed to ensure that information required
to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is
recorded, processed, summarized and reported within the specified time periods. As of the
end of the period covered by this report, our responsible officers evaluated the
effectiveness of our disclosure controls and procedures. Based on the evaluation, which
disclosed no significant deficiencies or material weaknesses, our responsible officers
concluded that our disclosure controls and procedures are effective. There were no
significant changes in our internal control over financial reporting that occurred during
our most recent fiscal quarter that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.

# PART II  OTHER
INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

None.

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

None.

ITEM 3.   DEFAULTS UPON SENIOR
SECURITIES

None.

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

None.

ITEM 5.   OTHER INFORMATION

None.

# ITEM 6.   EXHIBITS

A)   Exhibits

|Number | Description
|------ | -----------
|31     | .1         
|
|31     | .2         
|
|32     | .1         
|
|32     | .2         
|
|99     | .1         

11

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# SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.

# Chilco River Holdings
Inc.

By:  
Tom Yu Liu
         Tom Yu Liu, President
         (On behalf of the registrant 
         and as principal executive officer)

Date:  August 15, 2005

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