----

----

| NEVADA                                                                                          | Nil                                               |
|------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of  incorporation or                organization)   | (IRS                Employer Identification No.)  |
|                                                                                                 |                                                   |
| 601                UNION STREET TWO                UNION SQUARE 42ND FLOORSEATTLE,                WA | 98101                                             |
| (Address                of principal executive offices)                                         | (Zip                Code)                         |
|                                                                                                 |                                                   |
| Issuer’s                telephone number, including area code:                            | 604-351-1694                                      |

----

TABLE      OF      CONTENTS

|                                                         |                                                                       | Page   |
|--------------------------------------------------------------|----------------------------------------------------------------------------|--------|
|                                                         |                                                                       |   |
|                                                         |                                                                       |   |
| PART                I - FINANCIAL                INFORMATION |
|                                                         |                                                                       |   |
| Item                1:                                       | Financial                Statements                                        | 3      |
|                                                         |                                                                       |   |
| Item                2:                                       | Plan                of Operation                                           | 14     |
|                                                         |                                                                       |   |
| Item                3:                                       | Controls                and Procedures                                     | 18     |
|                                                         |
| PART                II - OTHER                INFORMATION    |
|                                                         |                                                                       |   |
| Item                1:                                       | Legal                Proceedings                                           | 19     |
|                                                         |                                                                       |   |
| Item                2:                                       | Unregistered                Sales of Equity Securities and Use of Proceeds | 19     |
|                                                         |                                                                       |   |
| Item                3:                                       | Defaults                Upon Senior Securities                             | 19     |
|                                                         |                                                                       |   |
| Item                4:                                       | Submission                of Matters to a Vote of Security Holders         | 19     |
|                                                         |                                                                       |   |
| Item                5:                                       | Other                Information                                           | 19     |
|                                                         |                                                                       |   |
| Item                6:                                       | Exhibits                                                                   | 19     |

----

PART      I - FINANCIAL      INFORMATION

Item      1.      FINANCIAL STATEMENTS 

| (a) | Interim                  balance sheets as of June 30, 2007 and December 31,                  2006; |
|-----|-----------------------------------------------------------------------------------------------------|

| (b) | Interim                  statements of operations for the three month ended June 30, 2007                  and 2006,                  for the six months ended June 30, 2007 and 2006 and for the period                  from                  August 25, 2003 (inception) to June 30, 2007                  (cumulative); |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Interim                  statements of cash flows for the six months ended June 30, 2007                  and 2006                  and for the period from August 25, 2003 (inception) to June 30,                  2007                  (cumulative); |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Interim                  statements of stockholders’ equity (deficiency) for the period from August                  25, 2003 (inception) to June 30, 2007 (cumulative);                  and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Notes                  to the financial                  statements. |
|-----|----------------------------------------------------------------------|

----

----

|                                                                     |   | June                  30 |       |   | December                  31 |   |
|--------------------------------------------------------------------------|--------|--------------------------|------------|--------|------------------------------|--------|
|                                                                     |   | 2007                     |       |   | 2006                         |   |
| ASSETS                                                                   |   |
| Current                                                                  |   |                     |       |   |                         |   |
| Cash                                                                     |   | $                        | 120,796    |   |                         | $      | 288,107 |   |
| Prepaid                  expenses                                        |   |                     | 7,293      |   |                         |   | 9,655 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
|                                                                     |   |                     | 128,089    |   |                         |   | 297,762 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
| Instant                  Wirefree technology                             |   |                     | -          |   |                         |   | 46,200 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
| Capital                  – Note 4                                  |   |                     | 19,288     |   |                         |   | 12,174 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
|                                                                     |   | $                        | 147,377    |   |                         | $      | 356,136 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
| LIABILITIES                                                              |   |
| Current                                                                  |   |                     |       |   |                         |   |   |   |
| Accounts                  payable and accrued liabilities – Note 5 |   | $                        | 22,560     |   |                         | $      | 24,114 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
|                                                                     |   |                     | 22,560     |   |                         |   | 24,114 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
| STOCKHOLDERS’                  DEFICIENCY                          |   |
| Capital                  stock                                           |   |                     |       |   |                         |   |   |   |
| Authorized:                                                              |   |                     |       |   |                         |   |   |   |
| 500,000,000                  common shares with par value of $0.001      |   |                     |       |   |                         |   |   |   |
| Issued:                                                                  |   |                     |       |   |                         |   |   |   |
| 76,020,000                  common shares (2006: 76,020,000)        |   |                     | 76,020     |   |                         |   | 76,020 |   |
| Additional                  paid-in capital                              |   |                     | 1,354,252  |   |                         |   | 1,354,252 |   |
| Warrants                                                                 |   |                     | 210,000    |   |                         |   | 210,000 |   |
| Deficit                  accumulated during the Development Stage        |   |                     | (1,515,455 | )      |                         |   | (1,308,250 | ) |
|                                                                     |   |                     |       |   |                         |   |   |   |
|                                                                     |   |                     | 124,817    |   |                         |   | 332,022 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |
|                                                                     |   | $                        | 147,377    |   |                         | $      | 356,136 |   |
|                                                                     |   |                     |       |   |                         |   |   |   |

----

|                                                                  |   | Three                  months ended June 30, 2007 |       |   | Three                  months ended June 30, 2006 |   |         | Six                  months ended June 30, 2007 |   |   | Six                  months ended June 30, 2006 |   |   | August                  25, 2003 (Date of Incorporation) to June 30, 2007 |       |
|-----------------------------------------------------------------------|--------|---------------------------------------------------|------------|--------|---------------------------------------------------|--------|--------------|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------------------------------------------------------|------------|
| Expenses                                                              |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |
| Audit                  and accounting                                 |   | $                                                 | 5,573      |   |                                              | $      | 373          |                                            |   | $      | 6,409                                           |   |   | $                                                                         | 4,920      |   |   | $ | 56,857 |   |
| Bank                  charges                                         |   |                                              | 87         |   |                                              |   | 230          |                                            |   |   | 216                                             |   |   |                                                                      | 394        |   |   |   | 1,943 |   |
| Consulting                  fees – Note 5                       |   |                                              | -          |   |                                              |   | 5,500        |                                            |   |   | -                                               |   |   |                                                                      | 7,000      |   |   |   | 39,373 |   |
| Depreciation                                                          |   |                                              | 2,061      |   |                                              |   | -            |                                            |   |   | 3,732                                           |   |   |                                                                      | -          |   |   |   | 5,656 |   |
| Filing                  and registration fees                         |   |                                              | 1,000      |   |                                              |   | 3,499        |                                            |   |   | 1,313                                           |   |   |                                                                      | 3,499      |   |   |   | 21,387 |   |
| Insurance                                                             |   |                                              | -          |   |                                              |   | -            |                                            |   |   | -                                               |   |   |                                                                      | -          |   |   |   | 1,152 |   |
| Interest                                                              |   |                                              | -          |   |                                              |   | -            |                                            |   |   | -                                               |   |   |                                                                      | 2,500      |   |   |   | 7,500 |   |
| Investor                  relations                                   |   |                                              | 963        |   |                                              |   | -            |                                            |   |   | 1,445                                           |   |   |                                                                      | -          |   |   |   | 33,192 |   |
| Legal                  fees                                           |   |                                              | 12,246     |   |                                              |   | 23,183       |                                            |   |   | 15,228                                          |   |   |                                                                      | 34,381     |   |   |   | 122,179 |   |
| Meals                  and entertainment                              |   |                                              | -          |   |                                              |   | -            |                                            |   |   | -                                               |   |   |                                                                      | -          |   |   |   | 667 |   |
| Mineral                  property costs                               |   |                                              | -          |   |                                              |   | -            |                                            |   |   | -                                               |   |   |                                                                      | 1,500      |   |   |   | 156,196 |   |
| Office                  and miscellaneous                             |   |                                              | 563        |   |                                              |   | -            |                                            |   |   | 865                                             |   |   |                                                                      | -          |   |   |   | 14,242 |   |
| Product                  development                                  |   |                                              | 28,918     |   |                                              |   | -            |                                            |   |   | 89,540                                          |   |   |                                                                      | -          |   |   |   | 229,463 |   |
| Rent                  and utilities                                   |   |                                              | 8,585      |   |                                              |   | -            |                                            |   |   | 15,805                                          |   |   |                                                                      | -          |   |   |   | 30,824 |   |
| Salaries                  and compensation – Note 5             |   |                                              | 13,038     |   |                                              |   | -            |                                            |   |   | 25,147                                          |   |   |                                                                      | -          |   |   |   | 78,147 |   |
| Telephone                  and internet                               |   |                                              | 661        |   |                                              |   | -            |                                            |   |   | 1,305                                           |   |   |                                                                      | -          |   |   |   | 4,326 |   |
| Travel                                                                |   |                                              | -          |   |                                              |   | -            |                                            |   |   |                                            |   |   |                                                                      | -          |   |   |   | 13,082 |   |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |
| Loss                  before other item                               |   |                                              | (73,695    | )      |                                              |   | (32,785      |                                            |   |   | (161,005                                        | )      |   |                                                                      | (54,194    |   |   |   | (816,186 | ) |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |
| Foreign                  exchange gain (loss)                         |   |                                              | ( -   | )      |                                              |   | ( 1,266 | )                                               |   |   | ( -                                        | )      |   |                                                                      | (1,266     | ) |   |   | 43 |   |
| Fair                  value of discount on private placement          |   |                                              | -          |   |                                              |   | (99,924      | )                                               |   |   |                                            |   |   |                                                                      | (99,924    | ) |   |   | (653,112 | ) |
| Impairment                  in Instant Wirefree technology            |   |                                              | (46,200    | )      |                                              |   | -            |                                            |   |   | (46,200                                         | )      |   |                                                                      | -          |   |   |   | (46,200 | ) |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |
| Net                  loss for the period                              |   | $                                                 | (119,895   | )      |                                              | $      | (133,975     | )                                               |   | $      | ( 207,205                                  | )      |   | $                                                                         | (155,384   | ) |   | $ | (1,515,455 | ) |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |
| Basic                  loss per share                                 |   | $                                                 | (0.00      | )      |                                              | $      | (0.00        | )                                               |   | $      | (0.01                                           | )      |   | $                                                                         | (0.00      | ) |   |   |   |   |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |
| Weighted                  average number of common shares outstanding |   |                                              | 76,020,000 |   |                                              |   | 53,563,333   |                                            |   |   | 76,020,000                                      |   |   |                                                                      | 31,456,667 |   |   |   |   |   |
|                                                                  |   |                                              |       |   |                                              |   |         |                                            |   |   |                                            |   |   |                                                                      |       |   |   |   |   |   |

----

|                                                                               |   | Six                  months ended June 30, 2007 |     |   | Six                  months ended June 30, 2006 |   |     | August                  25, 2003 (Date of Incorporation) to June 30,                  2007 |   |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------|----------|--------|-------------------------------------------------|--------|----------|--------------------------------------------------------------------------------------------|--------|
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |
| Operating                  Activities                                              |   |                                            |     |   |                                            |   |     |                                                                                       |   |
| Net                  loss for the period                                           |   | $                                               | (207,205 | )      |                                            | $      | (155,384 | )                                                                                          |   | $ | (1,515,,455 | ) |
| Adjustment                  for non-cash items:                                    |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Depreciation                                                                       |   |                                            | 3,732    |   |                                            |   | -        |                                                                                       |   |   | 5,656 |   |
| Capital                  stock issued for mineral property costs                   |   |                                            | -        |   |                                            |   | -        |                                                                                       |   |   | 32,500 |   |
| Impairment                  in Instant Wirefree technology                         |   |                                            | 46,200   |   |                                            |   | -        |                                                                                       |   |   | 46,200 |   |
| Fair                  value discount on private placement                          |   |                                            | -        |   |                                            |   | 99,924   |                                                                                       |   |   | 653,112 |   |
| Change                  in non-cash working capital balances related to Operations |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Prepaid                  expenses                                                  |   |                                            | 2,362    |   |                                            |   | (10,587  | )                                                                                          |   |   | (7,293 | ) |
| Accounts                  payable and accrued liabilities                          |   |                                            | (1,554   | )      |                                            |   | 553      |                                                                                       |   |   | 22,560 |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Net                  cash used in operations                                       |   |                                            | (156,465 | )      |                                            |   | (65,494  | )                                                                                          |   |   | (762,720 | ) |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Investing                  Activities                                              |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Acquisition                  of capital assets                                     |   |                                            | (10,846  | )      |                                            |   | -        |                                                                                       |   |   | (24,944 | ) |
| Instant                  Wirefree technology                                       |   |                                            | -        |   |                                            |   | (27,500  | )                                                                                          |   |   | (27,500 | ) |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
|                                                                               |   |                                            | (10,846  | )      |                                            |   | (27,500  | )                                                                                          |   |   | (52,444 | ) |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Financing                  Activities                                              |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Capital                  stock issued                                              |   |                                            | -        |   |                                            |   | 100,000  |                                                                                       |   |   | 722,700 |   |
| Promissory                  notes                                                  |   |                                            | -        |   |                                            |   | 850      |                                                                                       |   |   | 213,260 |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Net                  cash provided by financing activities                         |   |                                            | -        |   |                                            |   | 100,850  |                                                                                       |   |   | 935,960 |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Increase                  (decrease) in cash during the period                     |   |                                            | (167,311 | )      |                                            |   | 7,856    |                                                                                       |   |   | 120,796 |   |
| Cash,                  beginning of period                                         |   |                                            | 288,107  |   |                                            |   | 273,841  |                                                                                       |   |   | - |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Cash,                  end of period                                               |   | $                                               | 120,796  |   |                                            | $      | 281,697  |                                                                                       |   | $ | 120,796 |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Supplemental                  disclosure of cash flow information:                 |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Cash                  paid for:                                                    |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Interest                                                                           |   | $                                               | -        |   |                                            | $      | -        |                                                                                       |   | $ | - |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Income                  taxes                                                      |   | $                                               | -        |   |                                            | $      | -        |                                                                                       |   | $ | - |   |
|                                                                               |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Non-cash                  transactions                                             |   |                                            |     |   |                                            |   |     |                                                                                       |   |   |   |   |
| Shares                  issued on acquisition of Instant Wirefree, Inc.            |   | $                                               | -        |   |                                            | $      | -        |                                                                                       |   | $ | 18,700 |   |
| Shares                  issued to settle debt                                      |   | $                                               | -        |   |                                            | $      | -        |                                                                                       |   | $ | 213,260 |   |

----

|                                                                                                                                |   | Common                  Stock |       |   | AdditionalPaid-in          |   |   |    |   |   | Deficit                  Accumulated During the Pre-exploration |   |   |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|----------------------------|--------|--------|---------|--------|--------|-----------------------------------------------------------------|--------|--------|--------|---------|
|                                                                                                                                |   | Shares                        |       |   | Par                  Value |   |   | Capital |   |   | Warrants                                                        |   |   | Stage  |    |   | Total |   |
| Common                  stock issued for cash  – at $0.001                                                          |   |                          | 2,700,000  |   |                       | $      | 2,700  |    |   | $      | -                                                               |   |   | $      | -       |   |   | $ | - |   |   | $ | 2,700 |   |
|                                                                                                                                |   |                          |       |   |                       |   |   |    |   |   |                                                            |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Common                  stock issued for mineral property costs  – at $0.05                                              |   |                          | 650,000    |   |                       |   | 650    |    |   |   | 31,850                                                          |   |   |   |    |   |   |   | - |   |   |   | 32,500 |   |
|                                                                                                                                |   |                          |       |   |                       |   |   |    |   |   |                                                            |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Net                  loss for the period                                                                                            |   |                          | -          |   |                       |   | -      |    |   |   | -                                                               |   |   |   |    |   |   |   | (127,977 | ) |   |   | (127,977 | ) |
| Balance,                  December 31, 2003                                                                                         |   |                          | 3,350,000  |   |                       | $      | 3,350  |    |   | $      | 31,850                                                          |   |   |   |    |   |   | $ | (127,977 | ) |   | $ | (92,777 | ) |
| Net                  loss for the period                                                                                            |   |                          | -          |   |                       |   | -      |    |   |   | -                                                               |   |   |   |    |   |   |   | (84,812 | ) |   |   | (84,812 | ) |
|                                                                                                                                |   |                          |       |   |                       |   |   |    |   |   |                                                            |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2004                                                                                         |   |                          | 3,350,000  |   |                       | $      | 3,350  |    |   | $      | 31,850                                                          |   |   |   |    |   |   | $ | (212,789 | ) |   | $ | (177,589 | ) |
| Common                  stock issued for cash pursuant to a public offering at                  $.05                                |   |                          | 6,000,000  |   |                       |   | 6,000  |    |   |   | 294,000                                                         |   |   |   |    |   |   |   |   |   |   |   | 300,000 |   |
| Net                  loss for the period                                                                                            |   |                          | -          |   |                       |   | -      |    |   |   | -                                                               |   |   |   |    |   |   |   | (85,922 | ) |   |   | (85,922 | ) |
| Balance,                  December 31, 2005                                                                                         |   |                          | 9,350,000  |   |                       | $      | 9,350  |    |   | $      | 325,850                                                         |   |   |   |    |   |   | $ | (298,711 | ) |   | $ | 36,489 |   |
| Common                  stock issued for shares of Instant Wirefree, Inc. at $.                  001                                |   |                          | 18,700,000 |   |                       |   | 18,700 |    |   |   | -                                                               |   |   |   |    |   |   |   | - |   |   |   | 18,700 |   |
| Common                  stock issued for debt at $.004                                                                              |   |                          | 47,550,000 |   |                       |   | 47,550 |    |   |   | 165,710                                                         |   |   |   |    |   |   |   | - |   |   |   | 213,260 |   |
| Common                  stock issued for cash pursuant to a private placement at $ 1.00                  per                  share |   |                          | 420,000    |   |                       |   | 420    |    |   |   | 209,580                                                         |   |   |   | 210,000 |   |   |   | - |   |   |   | 420,000 |   |
| Fair                  value discount on private placement                                                                           |   |                          |       |   |                       |   |   |    |   |   | 653,112                                                         |   |   |   |    |   |   |   |   |   |   |   | 653,112 |   |
| Net                  loss for the period                                                                                            |   |                          | -          |   |                       |   | -      |    |   |   | -                                                               |   |   |   |    |   |   |   | (1,009,539 | ) |   |   | (1,009,539 | ) |
| Balance,                  December 31, 2006                                                                                         |   |                          | 76,020,000 |   |                       |   | 76,020 |    |   | $      | 1,354,252                                                       |   |   |   |    |   |   | $ | (1,308,250 | ) |   | $ | 332,022 |   |
| Net                  loss for the period                                                                                            |   |                          | -          |   |                       |   | -      |    |   |   | -                                                               |   |   |   |    |   |   |   | (207,205 | ) |   |   | (207,205 | ) |
|                                                                                                                                |   |                          |       |   |                       |   |   |    |   |   |                                                            |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2007                                                                                             |   |                          | 76,020,000 |   |                       | $      | 76,020 |    |   | $      | 1,354,252                                                       |   |   | $      | 210,000 |   |   | $ | (1,515,455 | ) |   | $ | 124,817 |   |

----

| Note                  1 | Interim                  Reporting |
|-------------------------|------------------------------------|

| Note                  2 | Nature                  and Continuance                  of Operations |
|-------------------------|------------------------------------------------------------------------|

----

| Note                  3 | Significant                  Accounting                  Policies |
|-------------------------|-------------------------------------------------------------------|

|   | (a) | Development                  Stage Company |
|--------|-----|--------------------------------------------|

|   | (b) | Capital                  Assets |
|--------|-----|---------------------------------|

|   | Computer                  equipment | 3                  years |
|--------|-------------------------------------|--------------------------|

|   | Furniture                  and fixtures | 5                  years |
|--------|-----------------------------------------|--------------------------|

|   |  Leasehold                  improvements |  3                  years |
|--------|-----------------------------------------------|--------------------------------|

----

|   | (c) | Mineral                  Properties |
|--------|-----|-------------------------------------|

|   | (d) | Environmental                  Costs |
|--------|-----|--------------------------------------|

|   | (e) | Income                  Taxes |
|--------|-----|-------------------------------|

|   | (f) | Basic                  Loss per Share |
|--------|-----|---------------------------------------|

|   | (g) | Foreign                  Currency Translation |
|--------|-----|-----------------------------------------------|

----

| Note                  4 | Capital                  Assets |
|-------------------------|---------------------------------|

|                                    |   |   |   |   |         |   |   |                            |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------------|--------|--------|---------------------------------|--------|--------|--------|--------|
|                                    |   |   |   |   |         |   |   | Net                  Book Value |   |
|                                    |   |   |   |   | Accumulated  |   |   | June                  30        |   |
|                                    |   | Cost   |   |   | Amortization |   |   | 2007                            |   |   | 2006   |   |
|                                    |   |   |   |   |         |   |   |                            |   |   |   |   |
| Computer                  equipment     |   | $      | 16,386 |   |         | $      | 3,654  |                            |   | $      | 12,732 |   |   | $ | 4,618 |   |
| Furniture                  and fixtures |   |   | 6,379  |   |         |   | 1,276  |                            |   |   | 5,103  |   |   |   | 5,740 |   |
| Leasehold                  improvements |   |   | 2,180  |   |         |   | 727    |                            |   |   | 1,453  |   |   |   | 1,816 |   |
|                                    |   | $      | 24,945 |   |         | $      | 5,657  |                            |   | $      | 19,288 |   |   | $ | 12,174 |   |

| Note                  5 | Related                  Party                  Transactions |
|-------------------------|--------------------------------------------------------------|

|                                       |   | Six                  months ended |   |   | August                  25, 2003 (Date of Incorporation) to |   |
|--------------------------------------------|--------|-----------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                       |   | June                  30          |   |   | June                  30,                                   |   |
|                                       |   | 2007                              |   |   | 2006                                                        |   |   | 2007 |   |
|                                       |   |                              |   |   |                                                        |   |   |   |   |
| Consulting                  fees           |   | $                                 | -      |   |                                                        | $      | 2.000 |   |   | $ | 34,305 |   |
| Interest                                   |   |                              | -      |   |                                                        |   | 2,500 |   |   |   | 7,500 |   |
| Office                  and miscellaneous  |   |                              | -      |   |                                                        |   | - |   |   |   | 1,000 |   |
| Salaries                  and compensation |   |                              | 25,147 |   |                                                        |   | - |   |   |   | 78,147 |   |
| Mineral                  property costs    |   |                              | -      |   |                                                        |   | - |   |   |   | 2,000 |   |
|                                       |   |                              |   |   |                                                        |   |   |   |   |   |   |   |
|                                       |   | $                                 | 25,147 |   |                                                        | $      | 4,500 |   |   | $ | 122,952 |   |

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MANAGEMENT'S DISCUSSION AND      ANALYSIS OR PLAN OF OPERATION

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Overview

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Liquidity      and Capital Resources

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We      believe our cash reserves are sufficient to meet our obligations      for the next twelve month period and to pay for administrative expenses of      complying with our obligations as a reporting issuer under the Securities      Exchange Act of 1934. These expenses will be in addition to the cost of      completing our exploration and eventual commencement of a new business in a      field of technology not yet determined. Since we do not know what our eventual      business will be, there is no way to know what we might wish to spend on such      a      venture, if finances permitted. 

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ITEM      3. CONTROLS AND PROCEDURES

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Item      6. EXHIBITS and Reports on Form 8-k

| Exhibits | Document                Description |
|----------|-------------------------------------|

| 3.1 | Articles                of Incorporation, incorporated by reference from our Prospectus on                Form                SB-2 filed February 13, 2004. File Number                333-112830. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws,                incorporated by reference from our Prospectus on Form SB-2 filed                February                13, 2004. File Number 333-112830. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350, as adopted pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. Filed as an Exhibit to this Quarterly                Report                on Form 10-QSB/A |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                18                U.S.C. Section 1350, as adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002. Filed as an Exhibit to this Quarterly                Report                on Form 10-QSB/A |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                 | Vanguard                Minerals                Corporation                                                                                                                                                         |
|------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |                                                                                                                                                                                                                |
|                                                 |                                                                                                                                                                                                                |
|                                                 |                                                                                                                                                                                                                |
|                                                 |                                                                                                                                                                                                                |
| DATE:                January 10,                2008 | /s/                Vladimir                Fedyunin                                         |
|                                                 | Vladimir                Fedyunin                                                                                                                                                                                    |
|                                                 | President,                CEO, Director, PrincipalFinancial                and Accounting Officer                                                                                                                   |

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