**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

| **Delaware**                                     | **52-2243048**                       |
|--------------------------------------------------|--------------------------------------|
| (State                  or other jurisdiction of | (I.R.S.                  Employer    |
| incorporation                  or organization)  | Identification                  No.) |

**55      York Street, Suite 401, Toronto, Ontario M5J 1R7**

| Class                                            | Outstanding                  As of January 31, 2007              |
|--------------------------------------------------|------------------------------------------------------------------|
| Common                  Shares $ .0001 par value |          19,766,538 |

----

**YUKON      GOLD CORPORATION, INC.**

**(AN      EXPLORATION STAGE COMPANY)**

**INTERIM      CONSOLIDATED FINANCIAL STATEMENTS**

**JANUARY      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

----

**YUKON      GOLD CORPORATION, INC.**

**(AN      EXPLORATION STAGE COMPANY)**

**INTERIM      CONSOLIDATED FINANCIAL STATEMENTS**

**JANUARY      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

**TABLE      OF CONTENTS**

|                                                                                                                                        | **Page                  No** |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                        |                         |
| Interim                  Consolidated Balance Sheets as of January 31, 2007 and April 30,                  2006                             | 1-2                          |
|                                                                                                                                        |                         |
| Interim                  Consolidated Statements of Operations for the nine months and three                  months                        |                         |
| ended                  January 31, 2007 and January 31, 2006                                                                                | 3                            |
|                                                                                                                                        |                         |
| Interim                  Consolidated Statements of Cash Flows for the nine months ended                  January                  31, 2007 |                         |
| and                  January 31, 2006                                                                                                       | 4                            |
|                                                                                                                                        |                         |
| Interim                  Consolidated Statements of Changes in Stockholders’ Equity                                                   |                         |
| for                  the nine months ended January 31, 2007 and the year ended April                  30,                  2006             | 5                            |
|                                                                                                                                        |                         |
| Condensed                  Notes to Interim Consolidated Financial Statements                                                               | 6-14                         |

----

**YUKON        GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Balance Sheets**

**As      at January 31, 2007 and April 30, 2006**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| **ASSETS**                                         |                         |      |                       |   |
|----------------------------------------------------|------------------------------|-----------|----------------------------|--------|
|                                               | January                  31, |      | April                  30, |   |
|                                               | 2007                         |      | 2006                       |   |
|                                               |                         | $         |                       |   | $ |   |
| CURRENT                  ASSETS                    |                         |      |                       |   |   |   |
| Cash                  and cash equivalents         |                         | 780,223   |                       |   | 2,412,126 |   |
| Prepaid                  expenses and other        |                         | 539,775   |                       |   | 77,977 |   |
| Exploration                  Tax Credit Receivable |                         | 153,145   |                       |   | 153,145 |   |
|                                               |                         | 1,473,143 |                       |   | 2,643,248 |   |
| RESTRICTED                  CASH (Note 6)          |                         | 2,543,505 |                       |   | 118,275 |   |
| RESTRICTED                  DEPOSIT (Note 7)       |                         | 17,889    |                       |   | 17,889 |   |
| PROPERTY,                  PLANT AND EQUIPMENT     |                         | 54,224    |                       |   | 63,141 |   |
|                                               |                         | 4,088,761 |                       |   | 2,842,553 |   |

----

----

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Balance Sheets**

**As      at January 31, 2007 and April 30, 2006**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

|  **LIABILITIES**                                            |                         |       |                       |   |
|------------------------------------------------------------------|------------------------------|------------|----------------------------|--------|
|                                                             | January                  31, |       | April                  30, |   |
|                                                             | 2007                         |       | 2006                       |   |
|                                                             |                         | $          |                       |   | $ |   |
| CURRENT                  LIABILITIES                             |                         |       |                       |   |   |   |
|                                                             |                         |       |                       |   |   |   |
| Accounts                  payable and accrued liabilities        |                         | 144,021    |                       |   | 232,282 |   |
| Other                  Liability (Note 8)                        |                         | -          |                       |   | 3,750 |   |
| Current                  Portion of:                             |                         |       |                       |   |   |   |
| Obligation                  under Capital Lease                  |                         | 2,783      |                       |   | 2,792 |   |
|                                                             |                         |       |                       |   |   |   |
| Total                  Current Liabilities                       |                         | 146,804    |                       |   | 238,824 |   |
|                                                             |                         |       |                       |   |   |   |
| Long                  -Term Portion of:                          |                         |       |                       |   |   |   |
| Obligation                  under Capital Lease                  |                         | 9,742      |                       |   | 11,864 |   |
|                                                             |                         |       |                       |   |   |   |
| TOTAL                  LIABILITIES                               |                         | 156,546    |                       |   | 250,688 |   |
|                                                             |                         |       |                       |   |   |   |
|                                                             |                         |       |                       |   |   |   |
| **SHAREHOLDERS’                  EQUITY**                  |                         |       |                       |   |   |   |
|                                                             |                         |       |                       |   |   |   |
| CAPITAL                  STOCK                                   |                         | 1,941      |                       |   | 1,637 |   |
|                                                             |                         |       |                       |   |   |   |
| ADDITIONAL                  PAID-IN CAPITAL                      |                         | 8,485,056  |                       |   | 5,301,502 |   |
|                                                             |                         |       |                       |   |   |   |
| SUBSCRIPTIONS                  FOR SPECIAL WARRANTS (Note 5)     |                         | 2,146,784  |                       |   | 525,680 |   |
|                                                             |                         |       |                       |   |   |   |
| ACCUMULATED                  OTHER COMPREHENSIVE LOSS            |                         | (92,047    | )                          |   | (5,162 | ) |
|                                                             |                         |       |                       |   |   |   |
| DEFICIT,                ACCUMULATED DURING THE EXPLORATION STAGE |                         | (6,609,519 | )                          |   | (3,231,792 | ) |
|                                                             |                         |       |                       |   |   |   |
|                                                             |                         | 3,932,215  |                       |   | 2,591,865 |   |
|                                                             |                         |       |                       |   |   |   |
|                                                             |                         | 4,088,761  |                       |   | 2,842,553 |   |

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Statements of Operations**

**For      the nine months and three months ended January 31, 2007 and January 31,      2006**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

|                                                                                           |       |       | For                  the     |      | For                  the     |       | For                  the      |       | For                  the      |   |
|------------------------------------------------------------------------------------------------|------------|------------|------------------------------|-----------|------------------------------|------------|-------------------------------|------------|-------------------------------|--------|
|                                                                                           | Cumulative |       | nine                  months |      | nine                  months |       | three                  months |       | three                  months |   |
|                                                                                           | since      |       | ended                        |      | ended                        |       | ended                         |       | ended                         |   |
|                                                                                           | inception  |       | January                  31, |      | January                  31, |       | January                  31,  |       | January                  31,  |   |
|                                                                                           |       |       | 2007                         |      | 2006                         |       | 2007                          |       | 2006                          |   |
|                                                                                           | $          |       | $                            |      | $                            |       | $                             |       | $                             |   |
| REVENUE                                                                                        | -          |       | -                            |      | -                            |       | -                             |       | -                             |   |
|                                                                                           |       |       |                         |      |                         |       |                          |       |                          |   |
| OPERATING                  EXPENSES                                                            |       |       |                         |      |                         |       |                          |       |                          |   |
|  Stock-based                  compensation                                                | 546,411    |       | 321,165                      |      | 139,923                      |       | 150,519                       |       | 39,823                        |   |
|  General                  and administration                                              | 2,981,769  |       | 1,585,091                    |      | 648,429                      |       | 592,713                       |       | 377,579                       |   |
|  Project                  expenses                                                        | 3,742,272  |       | 1,832,808                    |      | 861,261                      |       | 136,954                       |       | 610,740                       |   |
|  Exploration                  Tax Credit                                                  | (284,703   | )          | -                            |      | -                            |       | -                             |       | -                             |   |
|  Amortization                                                                             | 14,612     |       | 9,409                        |      | 754                          |       | 3,102                         |       | 258                           |   |
|  Loss                  on sale/disposal of property, plant and                  equipment | 5,904      |       | -                            |      | -                            |       | -                             |       | -                             |   |
|                                                                                           |       |       |                         |      |                         |       |                          |       |                          |   |
|  TOTAL                  OPERATING EXPENSES                                                | 7,006,265  |       | 3,748,473                    |      | 1,650,367                    |       | 883,288                       |       | 1,028,400                     |   |
|                                                                                           |       |       |                         |      |                         |       |                          |       |                          |   |
|  LOSS                  BEFORE INCOME TAXES                                                | (7,006,265 | )          | (3,748,473                   | )         | (1,650,367                   | )          | (883,288                      | )          | (1,028,400                    | )      |
|  Income                  taxes (recovery)                                                 | (396,746   | )          | (370,746                     | )         | -                            |       | (370,746                      | )          | -                             |   |
|                                                                                           |       |       |                         |      |                         |       |                          |       |                          |   |
|  NET                  LOSS                                                                | (6,609,519 | )          | (3,377,727                   | )         | (1,650,367                   | )          | (512,542                      | )          | (1,028,400                    | )      |
|  Loss                  per share - basic and diluted                                      |       |       | (0.19                        | )         | (0.17                        | )          | (0.03                         | )          | (0.10                         | )      |
|  Weighted                  average common sharesoutstanding                               |       | 17,704,211 |                         | 9,921,522 |                         | 18,809,457 |                          | 10,740,830 |                          |

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Statements of Cash Flows**

**For      the nine months ended January 31, 2007 and January 31,      2006**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

|                                                                                                                             |       |   | For                  the     |   | For                  the     |   |
|----------------------------------------------------------------------------------------------------------------------------------|------------|--------|------------------------------|--------|------------------------------|--------|
|                                                                                                                             |       |   | nine                  months |   | nine                  months |   |
|                                                                                                                             | Cumulative |   | ended                        |   | ended                        |   |
|                                                                                                                             | since      |   | January                  31, |   | January                  31, |   |
|                                                                                                                             | inception  |   | 2007                         |   | 2006                         |   |
|                                                                                                                             | $          |   | $                            |   | $                            |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES                                                                            |       |   |                         |   |                         |   |
| Net                  loss for the period                                                                                         | (6,609,519 | )      | (3,377,727                   | )      | (1,650,367                   | )      |
| Items                  not requiring an outlay of cash:                                                                          |       |   |                         |   |                         |   |
| Amortization                                                                                                                     | 14,612     |   | 9,409                        |   | 754                          |   |
| Loss                  on sale/disposal of property, plant and equipment                                                          | 5,904      |   | -                            |   | -                            |   |
| Shares                  issued for property payment                                                                              | 468,087    |   | 153,845                      |   | 100,000                      |   |
| Common                  shares issued forsettlement of severance liability to ex-officer                  through share issuance | 113,130    |   | 113,130                      |   | -                            |   |
| Stock-based                  compensation                                                                                        | 546,411    |   | 321,165                      |   | 139,923                      |   |
| Issue                  of shares for professional services                                                                       | 852,523    |   | 722,023                      |   | 130,500                      |   |
| Issue                  of units against settlement of debts                                                                      | 20,077     |   | -                            |   | 20,077                       |   |
| Decrease                  (Increase) in prepaid expenses and deposits                                                            | (538,618   | )      | (461,798                     | )      | 44,046                       |   |
| Decrease                  (Increase) in exploration tax credit receivable                                                        | (153,145   | )      | -                            |   | 72,203                       |   |
| Increase                    (Decrease) in accounts payable and accrued                    liabilities                            | 143,531    |   | (88,261                      | )      | 148,224                      |   |
| Increase                  in restricted cash                                                                                     | (2,543,505 | )      | (2,425,230                   | )      | (169,465                     | )      |
| Increase                  in restricted deposit                                                                                  | (17,889    | )      | -                            |   | -                            |   |
| Decrease                  in other liabilities                                                                                   | -          |   | (3,750                       | )      | -                            |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| NET                  CASH USED IN OPERATING ACTIVITIES                                                                           | (7,698,401 | )      | (5,037,194                   | )      | (1,164,105                   | )      |
|                                                                                                                             |       |   |                         |   |                         |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                                                                            |       |   |                         |   |                         |   |
| Purchase                  of property, plant and equipment                                                                       | (77,953    | )      | (3,356                       | )      | (19,315                      | )      |
|                                                                                                                             |       |   |                         |   |                         |   |
| NET                  CASH USED IN INVESTING ACTIVITIES                                                                           | (77,953    | )      | (3,356                       | )      | (19,315                      | )      |
|                                                                                                                             |       |   |                         |   |                         |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES                                                                            |       |   |                         |   |                         |   |
| Repayments                  from a shareholder                                                                                   | 1,180      |   | -                            |   | -                            |   |
| Proceeds                  from exercise of warrants                                                                              | 20,772     |   | -                            |   | 20,772                       |   |
| Proceeds                  (Repayments) from demand promissory notes                                                              | 200,000    |   | -                            |   | (47,676                      | )      |
| Proceeds                  from Convertible promissory notes converted                                                            | 200,500    |   | -                            |   |                         |   |
| Proceeds                  from exercise of stock options                                                                         | 61,000     |   | 55,500                       |   |                         |   |
| Proceeds                  from exercise of warrants -net                                                                         | 951,177    |   | 425,497                      |   | 584,000                      |   |
| Proceeds                  from subscription of warrants-net                                                                      | 2,146,784  |   | 2,146,784                    |   |                         |   |
| Proceeds                  from issuance of units /shares-net                                                                     | 5,042,217  |   | 862,978                      |   | 613,927                      |   |
| Proceeds                  (Repayments) from capital lease obligation                                                             | 12,525     |   | (2,131                       | )      |                         |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| NET                  CASH PROVIDED BY FINANCING ACTIVITIES                                                                       | 8,636,155  |   | 3,488,628                    |   | 1,171,023                    |   |
|                                                                                                                             |       |   |                         |   |                         |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| EFFECT                    OF FOREIGN CURRENCY EXCHANGE RATE                    CHANGES                                           | (79,578    | )      | (79,981                      | )      | (16,769                      | )      |
|                                                                                                                             |       |   |                         |   |                         |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| NET                    INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                    FOR THE PERIOD                        | 780,223    |   | (1,631,903                   | )      | (29,166                      | )      |
|                                                                                                                             |       |   |                         |   |                         |   |
| Cash                  and cash equivalents, beginning of year                                                                    | -          |   | 2,412,126                    |   | 79,256                       |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| CASH                  AND CASH EQUIVALENTS, END OF PERIOD                                                                        | 780,223    |   | 780,223                      |   | 50,090                       |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| INCOME                  TAXES PAID                                                                                               |       |   | -                            |   | -                            |   |
|                                                                                                                             |       |   |                         |   |                         |   |
| INTEREST                  PAID                                                                                                   |       |   | -                            |   | -                            |   |

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Financial Statements of Changes in Stockholders’Equity**

**From      Inception to January 31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

|                                                       | Number                      of Common Shares |   | Common                      Shares amount |   | Additional                      Paid-in Capital |   | Subscriptions                    forspecialwarrants |   | Deficit,                      accumulated during the exploration stage |   | Comprehensive                    Income (loss) |   | Accumulated                        Other Comprehensive Income (loss) |   |
|------------------------------------------------------------|----------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                       |                                         |   | $                                         |   | $                                               |   | $                                                   |   | $                                                                      |   | $                                              |   | $                                                                    |   |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                        |   |                                                |   |                                                                      |   |
| Issuance                  of Common shares                 | 2,833,377                                    |   | 154,063                                   |   | -                                               |   | -                                                   |   | -                                                                      |   | -                                              |   | -                                                                    |   |
| Issuance                  of warrants                      | -                                            |   | -                                         |   | 1,142                                           |   | -                                                   |   | -                                                                      |   | -                                              |   | -                                                                    |   |
| Foreign                  currency translation              | -                                            |   | -                                         |   | -                                               |   | -                                                   |   |                                                                   |   | 604                                            |   | 604                                                                  |   |
| Net                  loss for the year                     | -                                            |   | -                                         |   | -                                               |   |                                                |   | (124,783                                                               | )      | (124,783                                       | )      | -                                                                    |   |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Balance                  as of April 30, 2003              | 2,833,377                                    |   | 154,063                                   |   | 1,142                                           |   |                                                |   | (124,783                                                               | )      | (124,179                                       | )      | 604                                                                  |   |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Issuance                  of Common shares                 | 1,435,410                                    |   | 256,657                                   |   | -                                               |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Issuance                  of warrants                      | -                                            |   | -                                         |   | 2,855                                           |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Shares                  repurchased                        | (240,855                                     | )      | (5,778                                    | )      | -                                               |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Recapitalization                  pursuant to              |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
|  reverse                  acquisition                 | 2,737,576                                    |   | (404,265                                  | )      | 404,265                                         |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Issuance                  of Common shares                 | 1,750,000                                    |   | 175                                       |   | 174,825                                         |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Issuance                  of Common shares                 |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
|  for                  property payment                | 300,000                                      |   | 30                                        |   | 114,212                                         |   | -                                                   |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Foreign                  currency translation              | -                                            |   | -                                         |   | -                                               |   | -                                                   |   |                                                                   |   | (12,796                                        | )      | (12,796                                                              | )      |
| Net                  loss for the year                     | -                                            |   | -                                         |   | -                                               |   |                                                |   | (442,906                                                               | )      | (442,906                                       | )      | -                                                                    |   |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Balance                  as of April 30, 2004              | 8,815,508                                    |   | 882                                       |   | 697,299                                         |   |                                                |   | (567,689                                                               | )      | (455,702                                       | )      | (12,192                                                              | )      |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Issuance                  of Common shares                 |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
|  for                  property payment                | 133,333                                      |   | 13                                        |   | 99,987                                          |   |                                                |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Issuance                  of common shares on              |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Conversion                  of Convertible Promissory note | 76,204                                       |   | 8                                         |   | 57,144                                          |   |                                                |   | -                                                                      |   | -                                              |   |                                                                 |   |
| Foreign                  currency translation              | -                                            |   | -                                         |   | -                                               |   |                                                |   | -                                                                      |   | 9,717                                          |   | 9,717                                                                |   |
| Net                  loss for the year                     | -                                            |   | -                                         |   | -                                               |   |                                                |   | (808,146                                                               | )      | (808,146                                       | )      | -                                                                    |   |
|                                                       |                                         |   |                                      |   |                                            |   |                                                |   |                                                                   |   |                                           |   |                                                                 |   |
| Balance                  as of April 30, 2005              | 9,025,045                                    |   | 903                                       |   | 854,430                                         |   | -                                                   |   | (1,375,835                                                             | )      | (798,429                                       | )      | (2,475                                                               | )      |

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Interim      Consolidated Financial Statements of Changes in Stockholders’Equity**

**From      Inception to January 31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

|                                                                                                              | Number                      of Common Shares |   | Common                      Shares amount |   | Additional                      Paid-in Capital |   | Subscriptions                    for special warrants |   | Deficit,                          accumulated during the exploration                          stage |   | Comprehensive                    Income (loss) |   | Accumulated                        Other Comprehensive Income (loss) |
|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--------|-------------------------------------------|--------|-------------------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                                                                              |                                         |   | $                                         |   | $                                               |   | $                                                     |   | $                                                                                                   |   | $                                              |   | $                                                                    |
|                                                                                                              |                                         |   |                                      |   |                                            |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Stock                    based compensation-Directors                    and officers                             |                                         |   |                                      |   | 216,416                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Stock                  based compensation-consultants                                                             |                                         |   |                                      |   | 8,830                                           |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issue                    of common shares and Warrants                    on retirement of Demand Promissory note | 369,215                                      |   | 37                                        |   | 203,031                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Units                    issued to an outside company for                    professional services settlement     | 24,336                                       |   | 2                                         |   | 13,384                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Units                  issued to an officer for                  professional services settlement                 | 12,168                                       |   | 1                                         |   | 6,690                                           |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                    of common shares for                    professional services                         | 150,000                                      |   | 15                                        |   | 130,485                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Units                  issued to shareholder                                                                      | 490,909                                      |   | 49                                        |   | 269,951                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Units                  issued to a director                                                                       | 149,867                                      |   | 15                                        |   | 82,412                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Units                  issued to outside subscribers                                                              | 200,000                                      |   | 20                                        |   | 109,980                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                    of common shares on conversion of Convertible Promissory                    notes     | 59,547                                       |   | 6                                         |   | 44,654                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                    of common shares on Exercise                    of warrants                           | 14,000                                       |   | 2                                         |   | 11,998                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                  of common shares on conversion of Convertible Promissory                  notes         | 76,525                                       |   | 8                                         |   | 57,386                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Private                  placement of shares                                                                      | 150,000                                      |   | 15                                        |   | 151,485                                         |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                    of Common shares for property payment                                                 | 133,333                                      |   | 13                                        |   | 99,987                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                      of common shares on conversion                      of Convertible Promissory notes | 34,306                                       |   | 4                                         |   | 25,905                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                    of common shares on exercise                    of warrants                           | 10,000                                       |   | 1                                         |   | 8,771                                           |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |
| Issuance                      of common shares on conversion                      of Convertible Promissory notes | 101,150                                      |   | 10                                        |   | 76,523                                          |   |                                                  |   |                                                                                                |   |                                           |   |                                                                 |

----

**YUKON      GOLD CORPORATION, INC.**

**(An      Exploration Stage Company)**

**Consolidated      Statements of Changes in Stockholders’ Equity**

**From      Inception to January 31, 2007**

**(Amounts      expressed in US Dollars)**

|                                                                                                                        | Number                      of Common Shares |   | Common                      Shares amount |   | Additional                      Paid-in Capital |   | Subscriptions                    for specialwarrants |   | Deficit,                          accumulated during the exploration                          stage |   | ComprehensiveIncome (loss) |   | Accumulated                        Other Comprehensive Income (loss) |   |
|-----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--------|-------------------------------------------|--------|------------------------------------------------------|--------|------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                                                                                        |                                         |   | $                                         |   | $                                                    |   | $                                                    |   | $                                                                                                   |   | $                               |   | $                                                                    |   |
| Issue                  of 400,000 Special Warrants net                                                                      |                                         |   |                                      |   |                                                 |   | 371,680                                              |   |                                                                                                |   |                            |   |                                                                 |   |
| Issue                  of 200,000 flow through warrants                                                                     |                                         |   |                                      |   |                                                 |   | 154,000                                              |   |                                                                                                |   |                            |   |                                                                 |   |
| Brokered                  private placement of shares- net                                                                  | 5,331,327                                    |   | 533                                       |   | 2,910,375                                            |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Brokered                  Private placement of flow through                                                                 |                                         |   |                                      |   |                                                 |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| shares-                  net                                                                                                | 25,000                                       |   | 2                                         |   | 13,310                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of stock options                                                                                  | 10,000                                       |   | 1                                         |   | 5,499                                                |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Foreign                  currency translation                                                                               | -                                            |   | -                                         |   | -                                                    |   |                                                 |   |                                                                                                |   | (2,687                          | )      | (2,687                                                               | )      |
| Net                  loss for the year                                                                                      | -                                            |   | -                                         |   |                                                 |   |                                                 |   | (1,855,957                                                                                          | )      | (1,855,957                      | )      | -                                                                    |   |
| Balance                  as of April 30, 2006                                                                               | 16,366,728                                   |   | 1,637                                     |   | 5,301,502                                            |   | 525,680                                              |   | (3,231,792                                                                                          | )      | (1,858,644                      | )      | (5,162                                                               | )      |
|                                                                                                                        |                                         |   |                                      |   |                                                 |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 10,000                                       |   | 1                                         |   | 8,986                                                |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 45,045                                       |   | 5                                         |   | 40,445                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 16,000                                       |   | 2                                         |   | 14,278                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Common                  shares issued for settlement                  of severance                  liability to ex-officer | 141,599                                      |   | 14                                        |   | 113,116                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 43,667                                       |   | 4                                         |   | 39,364                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 17,971                                       |   | 2                                         |   | 15,937                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 43,667                                       |   | 4                                         |   | 38,891                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 16,000                                       |   | 2                                         |   | 14,251                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 158,090                                      |   | 16                                        |   | 141,616                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issuance                  of Common shares forproperty                  payment                                             | 43,166                                       |   | 4                                         |   | 53,841                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 64,120                                       |   | 6                                         |   | 57,863                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of warrants                                                                                       | 61,171                                       |   | 6                                         |   | 53,818                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of stock options                                                                                  | 24,000                                       |   | 2                                         |   | 17,998                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issuance                  of common shares for                  professional services                                       | 342,780                                      |   | 34                                        |   | 438,725                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Brokered                  private placement of units- net                                                                   | 400,000                                      |   | 40                                        |   | 363,960                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Brokered                  private placement of units- net                                                                   | 550,000                                      |   | 55                                        |   | 498,923                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Stock                  based compensation-Directors                  and officers                                           |                                         |   |                                      |   | 321,165                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Exercise                  of stock options                                                                                  | 50,000                                       |   | 5                                         |   | 37,495                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issuance                  of Common shares for                  propertypayment                                             | 133,334                                      |   | 13                                        |   | 99,987                                               |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issuance                  of Common shares for                  professional services                                       | 160,000                                      |   | 16                                        |   | 131,184                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issuance                  of Common shares for                  professional services                                       | 118,800                                      |   | 12                                        |   | 152,052                                              |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Issue                  of shares for flow-through warrants                                                                  | 200,000                                      |   | 20                                        |   | 153,980                                              |   | (154,000                                             | )      |                                                                                                |   |                            |   |                                                                 |   |
| Issue                  of shares for special warrants                                                                       | 404,000                                      |   | 41                                        |   | 375,679                                              |   | (371,680                                             | )      |                                                                                                |   |                            |   |                                                                 |   |
| Issue                  of 2,823,049 flow-through warrants-net                                                               |                                         |   |                                      |   |                                                 |   | 1,916,374                                            |   |                                                                                                |   |                            |   |                                                                 |   |
| Issue                  of 334,218 Unit special warrants-net                                                                 |                                         |   |                                      |   |                                                 |   | 230,410                                              |   |                                                                                                |   |                            |   |                                                                 |   |
| Foreign                  currency translation                                                                               |                                         |   |                                      |   |                                                 |   |                                                 |   |                                                                                                |   | (86,885                         | )      | (86,885                                                              | )      |
| Net                  loss for the period                                                                                    |                                         |   |                                      |   |                                                 |   |                                                 |   | (3,377,727                                                                                          | )      | (3,377,727                      | )      |                                                                 |   |
|                                                                                                                        |                                         |   |                                      |   |                                                 |   |                                                 |   |                                                                                                |   |                            |   |                                                                 |   |
| Balance                  as of January 31, 2007 (see note 10)                                                               | 19,410,138                                   |   | 1,941                                     |   | 8,485,056                                            |   | 2,146,784                                            |   | (6,609,519                                                                                          | )      | (3,464,612                      | )      | (92,047                                                              | )      |

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 1. | BASIS                OF PRESENTATION |
|----|--------------------------------------|

|   | The                accompanying unaudited interim consolidated financial statements                do not                include all the information and footnotes required by generally accepted                accounting principles for complete financial statements. In the opinion                of                management, all adjustments (consisting of all recurring accruals)                considered necessary for fair presentation have been included. Operating                results for the interim period are not necessarily indicative of                the                results that may be expected for the year ended April 30, 2007. Interim                financial statements should be read in conjunction with the Company’s                annual audited financial                statements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                interim consolidated financial statements include the accounts of                Yukon                Gold Corporation, Inc. (the “Company”) and its wholly owned subsidiary                Yukon Gold Corp. (“YGC”). All material inter-company accounts and                transactions have been eliminated. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | GOING                CONCERN |
|----|------------------------------|

|   | The                Company has no source for operating revenue and expects to incur                significant expenses before establishing operating revenue. The Company                has a need for equity capital and financing for working capital and                exploration and development of its properties. Because of continuing                operating losses, the Company’s continuance as a going concern is                dependent upon its ability to obtain adequate financing and to reach                profitable levels of operation. The Company’s future success is dependent                upon its continued ability to raise sufficient capital, not only                to                maintain its operating expenses but also to explore for mineral reserves                and develop those it has on its mining claims. There is no guarantee                that                such capital will continue to be available on acceptable terms, if                at all                or if the Company will attain profitable levels of                operation. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Management                has initiated plans to raise equity funding through the issuance                of common                shares including flow-through shares. The Company was successful                in                raising funds (net) of approximately $4 million during the year ended                April 30, 2006, which assisted the Company in meeting its commitments                and                current requirements for project expenses and general and administrative                expenses. The Company also raised (net) approximately $1.3 million                during                the six months ended October 31, 2006. The company further raised                (net) an                additional approximately $1.9 million through subscription of flow-through                special warrants and raised (net) approximately $230,000 through                subscription of unit special warrants during the three months ended                January 31, 2007. The Company’s common shares are listed on the Toronto                Stock exchange and included on the Over-The-Counter Bulletin Board                maintained by NASDAQ in the United States. The trading of the Company’s                stock in both the United States and Canada has expanded its investor                base,                as the Company continues to explore sources of funding from both                the                United States and Canada. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | NATURE                OF OPERATIONS |
|----|-------------------------------------|

|   | The                Company is an exploration stage mining company and has not yet realized                any revenue from its operations. It is primarily engaged in acquisition,                exploration and development of its two mining properties, both located                in                the Yukon Territory in Canada. The Company has not yet determined                whether                these properties contain mineral reserves that are economically                recoverable. The business of mining and exploring for minerals involves                a                high degree of risk and there can be no assurances that current                exploration programs will result in profitable mining                operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | EXPLORATION                TAX CREDIT RECEIVABLE |
|----|--------------------------------------------------|

|   | The                Company has a claim to the Yukon exploration tax credit, since it                maintains a permanent establishment in the Yukon Territory and has                incurred eligible mineral exploration expenses as defined by the                federal                income tax regulations of Canada. The Company’s expectation of receiving                this credit of $153,145 (CDN$171,216) is based on the history of                receiving                past credits. The Company has filed tax returns to claim this                credit. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 5. | SUBSCRIPTIONS                FOR SPECIAL WARRANTS |
|----|---------------------------------------------------|

| (a) | On                December 15, 2005 the Company completed the sale of 400,000 Special                Warrants using the services of an agent at a subscription price of                $1.01                per Warrant to a Canadian accredited investor for $404,000. Each                Special                Warrant entitled its holder to acquire one common share of the Company                and                one common share purchase warrant at no additional cost. Each share                purchase warrant entitled the holder to purchase one common share                in the                capital of the Company at a price of $1.00 per warrant share for                a period                of one year following the closing date. The agent received $32,320                in                commission as well as 32,320 warrants. Each warrant was exercisable                for                one common share at $ 1.00 until December 15, 2006 with a fair value                of                $9,995. The Company was obligated to have a registration statement                become                effective within 181 days of the closing. In the absence of a registration                statement being declared effective within 181 days of the closing,                the                Company, effective June 15, 2006 was obligated to issue an additional                4,000 common shares and 4,000 warrants to the accredited investor                at no                extra cost as a penalty. The Company issued 404,000 common shares                on                January 11, 2007 (see Note 10). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | On                December 30, 2005 the Company completed the sale of 200,000 Flow-Through                Special Warrants (“Special Warrants”) to a Canadian accredited investor,                for gross proceeds of $180,000 (CDN$205,020). Each Special Warrant                entitled the Holder to acquire one flow-through common share of the                Company (“Flow-Through Shares”) at no additional cost. The Company issued                200,000 common shares on December 19, 2006. (Refer to Note                10) |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | On                December 28, 2006 the Company completed the sale of 2,823,049 Flow-Through                Special Warrants (“Special Warrants”) using the services of an agent at a                subscription price of $0.90 (CDN$1.05) per Special Warrant for gross                proceeds of $2,543,505 (CDN$2,964,201). (Refer to Note                10) |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | On                December 28, 2006 the Company completed the sale of 334,218 Unit                Special                Warrants using the services of an agent at a subscription price of                $0.77                (CDN$0.90) per Unit Special Warrant for gross proceeds of $258,105                (CDN$300,796). (Refer to Note 10). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | RESTRICTED                CASH |
|----|--------------------------------|
|   |   |
|--------|--------|
|   | Under Canadian income tax regulations,                a                company is permitted to issue Flow-Through Shares whereby the company                agrees to incur qualifying expenditures and renounce the related                income                tax deductions to the investors. Notwithstanding that, there is no                specific requirement to segregate the funds. The flow-through funds,                which                are unexpended at the consolidated balance sheet date are considered                to be                restricted and are not considered to be cash or cash equivalents.                As of                January 31, 2007 and April 30, 2006, unexpended flow-through funds                were                $2,543,505 (CDN$2,964,201) and $118,275 (CDN$132,230)                respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | RESTRICTED                DEPOSITS |
|----|------------------------------------|
|   |   |
|--------|--------|
|   | The Company has a term deposit                of $17,889                (CDN$20,000) with a Canadian financial institution, which earns interest                at 2.5% per annum and matures on April 26, 2007. This deposit has                been                assigned to the financial institution to enable the financial institution                to issue an Irrevocable Letter of Credit to The First Nation of Na                Cho                Nyak Dun (“NND”), which exercises certain powers over land use and                environment protection within the Yukon Territory of Canada. The                Company                required access to move heavy equipment over the land controlled                by NND                and therefore posted this security bond so that if the Company fails                to                comply with reclamation requirements, then the security bond will                be                available to NND to complete the work or may form part of the compensation                package. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 8. | OTHER                LIABILITY |
|----|--------------------------------|
|   |   |
|--------|--------|
|   | On              March 28, 2006 the Company completed a brokered private placement through              the issuance of 25,000 flow-through shares at a price of $0.75 per              share              for gross proceeds of $18,750. The proceeds raised were allocated between              the offering of shares and the sale of tax benefits. A liability of              $3,750              was recognized for the sale of taxable benefits, which was reversed              during              the quarter ended January 31, 2007 and credited to income as the Company              renounced resource expenditure deduction to the              investor. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
|   | On                December 28, 2006 the Company completed a brokered private placement                through the issuance of 2,823,049 flow-through special warrants at                a price                of $0.90 (CDN$1.05) per flow-through special warrant for gross proceeds                of                $2,543,505 (CDN$2,964,201). The proceeds raised were allocated between                the                offering of shares and the sale of taxable benefits. A liability                of                $366,966 was recognized for the sale of taxable benefits, which was                reversed during the quarter ended January 31, 2007 and credited to                income                as the Company renounced resource expenditure deduction to the                investors. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|--------|--------|
| 9. | STOCK              BASED COMPENSATION |
|----|---------------------------------------|
|   |   |
|--------|--------|
|   | In                December 2004, the Financial Accounting Standards Board (FASB) issued                Statement of Financial Accounting Standards No. 123 (Revised 2004),                “Share-Based Payment” (SFAS 123 (R)). SFAS 123 (R) requires companies to                recognize compensation cost for employee services received in exchange                for                an award of equity instruments based on the grant-date fair value                of the                award. The Company adopted the provisions of SFAS 123 (R) on May                1, 2005. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For                this nine month period ended January 31, 2007, the Company has recognized                in the financial statements, stock-based compensation costs as per                the                following details. The fair value of each option used for the purpose                of                estimating the stock compensation is based on the grant date using                the                Black-Scholes option pricing model with the following weighted average                assumptions: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                               | Issued                    onDecember13,                    2005 |    |   |  Issued                      onJanuary17,                  2006 |   |   |                    Issued                    onJanuary20,                  2006 |   |   |  Issued                      on January 19, 2007 |   |   | TOTAL  |
|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|--------|
| Risk                  free rate                                                                                                  |                                                            | 3.25    | %      |                                                                 |   | 3.25   | %                                                                                    |   |   | 3.25                                                       | %      |   |   | 4.5 | % |   |   |   |
| Volatility                  factor                                                                                               |                                                            | 87.72   | %      |                                                                 |   | 93.47  | %                                                                                    |   |   | 90.83                                                      | %      |   |   | 45.19 | % |   |   |   |
| Expected                  dividends                                                                                              |                                                            | nil     |   |                                                                 |   | nil    |                                                                                 |   |   | nil                                                        |   |   |   | nil |   |   |   |   |
| Stock-based                  compensation cost                  expensed for nine months ended                  January 31, 2007 | $                                                               | 210,663 |   |                                                                 | $      | 11,294 |                                                                                 |   | $      | 22,585                                                     |   |   | $      | 76,623 |   |   | $ | 321,165 |
| Unexpended                  Stock based compensation                  deferred over the vesting period                           |                                                            |    |   |                                                                 |   |   |                                                                                 |   |   |                                                       |   |   | $      | 294,418 |   |   | $ | 294,418 |

----

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 9. | STOCK                BASED COMPENSATION-Cont’d |
|----|------------------------------------------------------|

*Securities      Act*

** **

| 10. | ISSUANCE                OF COMMON SHARES AND WARRANTS |
|-----|-------------------------------------------------------|

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 10. | ISSUANCE                OF COMMON SHARES AND                WARRANTS-Cont’d |
|-----|-----------------------------------------------------------------------------------|

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 10. | ISSUANCE                OF COMMON SHARES AND                WARRANTS-Cont’d |
|-----|-----------------------------------------------------------------------------------|

|   |   | On                December 19, 2006 the Company issued 200,000 common shares in lieu                of sale                of 200,000 Flow-Through Special Warrants made to a Canadian accredited                investor, for $180,000 (CDN$205,020) on December 30, 2005. Each                Flow-Through Special Warrant entitled the Holder to acquire one                flow-through common share of the Company at no additional cost. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**)**

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 11. | COMMITMENTS                AND CONTINGENCIES |
|-----|----------------------------------------------|

| (a) | Mount                Hinton Property Mining Claims |
|-----|----------------------------------------------------|

|   | On                July 7, 2002 Yukon Gold Corp. (“YGC”) entered into an option agreement                with the Hinton Syndicate                to                acquire a 75% interest in the 273 unpatented mineral claims covering                approximately 14,000 acres in the Mayo Mining District of the Yukon                Territory, Canada. This agreement was replaced with a revised and                amended                agreement (the “Hinton Option Agreement”) dated July 7, 2005 which                superseded the original agreement and amendments thereto. The new                agreement is between the Company, its wholly owned subsidiary YGC                and the                Hinton Syndicate. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **PROPERTY                  PAYMENTS**                                                               |   |   |                               |             |
|------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------|------------------|
|                                                                                                 |   |   |                               |             |
| On                  execution of the July 7, 2002 Agreement                                          |   | $      | 19,693                  (CDN$      |             | 25,000)                  Paid |  |
| On                  July 7, 2003                                                                     |   | $      | 59,078                  (CDN$      |             | 75,000)                  Paid |   |
| On                  July 7, 2004                                                                     |   | $      | 118,157                  (CDN$     |             | 150,000)                  Paid |   |
| On                  January 2, 2006                                                                  |   | $      | 125,313                  (CDN$     |             | 150,000)                  Paid |   |
| On                  July 7, 2006                                                                     |   | $      | 134,512                  (CDN$     |             | 150,000)                  Paid |   |
| On                  July 7, 2007                                                                     |   | $      | 127,443                  (CDN$     |             | 150,000) |   |
| On                  July 7, 2008                                                                     |   | $      | 127,443                  (CDN$     |             | 150,000) |   |
|                                                                                                 |   |   |                               |             |   |   |
|                                                                                                 |   | **$**  | **711,639                (CDN$**   | **850,000**)**** |   |
| **TOTAL**                                                                                            |   |   |
|                                                                                                 |   |   |
| **WORK                PROGRAM-expenditures to be incurred in the following                periods;** |   |   |
|                                                                                                 |   |   |
| July                  7/02 to July 6/03                                                              |   | $      | 118,157                  (CDN$     |             | 150,000)                  Incurred |   |
| July                  7/03 to July 6/04                                                              |   | $      | 196,928                  (CDN$     |             | 250,000)                  Incurred |   |
| July                  7/04 to July 6/05                                                              |   | $      | 256,006                  (CDN$     |             | 325,000)                  Incurred |   |
| July                  7/05 to Dec. 31/06                                                             |   | $      | 667,795                  (CDN$     |             | 750,000)                  *Amended |   |
| Jan.                  1/07 to Dec. 31/07                                                             |   | $      | 849,618                  (CDN$     |             | 1,000,000) |   |
| Jan.                  1/08 to Dec. 31/08                                                             |   | $      | 1,062,022                  (CDN$   |             | 1,250,000) |   |
| Jan.                  1/09 to Dec. 31/09                                                             |   | $      | 1,274,426                  (CDN$   |             | 1,500,000) |   |
|                                                                                                 |   |   |                               |             |   |  |   |
|                                                                                                 |   | **$**  | **4,424,952                (CDN$** | **5,225,000**)   |   |
| **TOTAL**                                                                                            |   |   |

* *

----

**YUKON      GOLD CORPORATION, INC.**

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

| 11. | COMMITMENTS                AND CONTINGENCIES-Cont’d |
|-----|-----------------------------------------------------------|

----

**YUKON      GOLD CORPORATION, INC. **

**(An      Exploration Stage Company)**

**Condensed      Notes to Interim Consolidated Financial Statements**

**January      31, 2007**

**(Amounts      expressed in US Dollars)**

**(Unaudited)**

----

**MANAGEMENT'S      DISCUSSION AND ANALYSIS OF**

**FINANCIAL      CONDITION AND RESULTS OF OPERATION**

**FOR      THE THREE AND NINE MONTH PERIOD ENDED JANUARY 31, 2007**

**Discussion      of Operations & Financial Condition **

| **SELECTED                  INFORMATION**          |   |                                                                   |                                                                |                                                            |   |
|----------------------------------------------------|--------|------------------------------------------------------------------------|---------------------------------------------------------------------|----------------------------------------------------------------------|--------|
|                                               |   |                                                                   |                                                                |                                                                 |   |
|                                               |   | Three                    months endedJanuary                  31, 2007 |                                                                | Three                  months endedJanuary                  31, 2006 |   |
|                                               |   |                                                                   |                                                                |                                                                 |   |
| Revenues                                           |   |                                                                   | Nil                                                                 |                                                                 |   | Nil |   |
| Net                  Loss                          |   | $                                                                      | 512,542                                                             |                                                                 | $      | 1,028,400 |   |
| Loss                  per share-basic and diluted  |   | $                                                                      | (0.03                                                               | )                                                                    | $      | (0.10 | ) |
|                                               |   |                                                                   |                                                                |                                                                 |   |   |   |
|                                               |   |                                                                   |                                                                     |                                                                 |   |   |   |
|                                               |   |                                                                   | Nine                  months endedJanuary                  31, 2007 |                                                                 |   | Nine                    months endedJanuary                    31, 2006 |   |
|                                               |   |                                                                   |                                                                |                                                                 |   |   |   |
| Revenues                                           |   |                                                                   | Nil                                                                 |                                                                 |   | Nil |   |
| Net                  Loss                          |   | $                                                                      | 3,377,727                                                           |                                                                 | $      | 1,650,367 |   |
| Loss                  per share-basic and diluted  |   | $                                                                      | (0.19                                                               | )                                                                    | $      | (0.17 | ) |
|                                               |   |                                                                   |                                                                |                                                                 |   |   |   |
|                                                    |   |                                                                   | As                    atJanuary                  31, 2007           |                                                                 |   | As                    atApril                  30, 2006 |   |
|                                               |   |                                                                   |                                                                |                                                                 |        |   |   |
| Total                  Assets                      |   | $                                                                      | 4,088,761                                                           |                                                                 | $      | 2,842,553 |   |
| Total                  Liabilities                 |   | $                                                                      | 156,546                                                             |                                                                 | $      | 250,688 |   |
| Cash                  dividends declared per share |   |                                                                   | Nil                                                                 |                                                                 |   | Nil |   |

**Revenues**

**Net      Loss**

| (a) | Stock-based                Compensation |
|-----|-----------------------------------------|

----

| (b) | General                and Administrative Expense |
|-----|---------------------------------------------------|

| (c) | Project                Expense |
|-----|--------------------------------|

**Exploration      at Mount Hinton**

----

| 1. | Continue                drilling to further evaluate the known vein systems as well as other                targets that may have resulted from the 2006 geochemical surveys                and                prospecting program, or |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Develop                an underground ramp from which diamond drilling and underground testing                of                some of the vein systems can be carried out,                or |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Convert                to a Joint Venture arrangement with the Hinton Syndicate as provided                in                the Hinton Syndicate Agreement whereby Yukon Gold would retain a                25%                interest in the property having met the expenditure of $1,274,426                (CDN$1,500,000) in work programs on the Mount Hinton Property. Yukon                Gold                must spend $849,618 (CDN$1,000,000) in 2007 plus the deferred expenditures                of approximately $174,388 (CDN$205,255) as referred to above, in                order to                meet its work obligation under the Mount Hinton Agreement, unless                it                elects to convert to the joint venture                arrangement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Exploration      at Marg Property**

**Resource      classified in accordance with NI:43-101**

| **Zone**  | **Classification** | **Avgerage                Thickness** | **Tonnes**             | **Cu%**  | **Pb%**  | **Zn%**  | **Ag                g/t** | **Au                g/t** |
|-----------|--------------------|---------------------------------------|------------------------|----------|----------|----------|---------------------------|---------------------------|
| A         | Indicated          | 4.8                metres             | 57,605                 | 1.93     | 3.56     | 6.33     | 105.14                    | 1.93                      |
|      | Inferred           |                                  | 75,                413 | 0.68     | 0.96     | 2.10     | 35.22                     | 0.45                      |
| B         | Indicated          | 3.7                metres             | 785,497                | 1.70     | 2.21     | 4.08     | 61.90                     | 0.90                      |
|      | Inferred           |                                  | 80,548                 | 1.46     | 2.22     | 4.34     | 53.29                     | 0.87                      |
| C         | Indicated          | 8.6                metres             | 1,459,564              | 1.60     | 2.45     | 4.31     | 73.41                     | 1.21                      |
|      | Inferred           |                                  | 289,330                | 1.90     | 2.10     | 3.95     | 60.04                     | 1.26                      |
| D         | Indicated          | 5.1                metres             | 2,343,521              | 1.95     | 2.75     | 5.26     | 59.97                     | 0.85                      |
|      | Inferred           |                                  | 435,488                | 1.48     | 1.88     | 3.80     | 46.12                     | 0.85                      |
|      |               |                                  |                   |     |     |     |                      |                      |
| **Total** | **Indicated**      |                                  | **4,646,200**          | **1.80** | **2.57** | **4.77** | **65.08**                 | **0.99**                  |
| **Total** | **Inferred**       |                                  | **880,800**            | **1.55** | **1.90** | **3.75** | **50.42**                 | **0.95**                  |

| **Hole                #** | **Copper                (%)** | **Lead                (%)** | **Zinc                (%)** | **Gold                (g/t)** | **Silver                (g/t)** |
|---------------------------|-------------------------------|-----------------------------|-----------------------------|-------------------------------|---------------------------------|
| 88                        | 1.40                          | 1.71                        | 2.98                        | 0.76                          | 39.9                            |
| 89                        | 1.77                          | 2.53                        | 4.66                        | 0.21                          | 43.4                            |
| 90                        | 1.22                          | 3.15                        | 6.30                        | 0.75                          | 66.1                            |
| 91                        | 1.721.62                      | 3.772.15                    | 6.214.39                    | 2.730.46                      | 113.757.5                       |
| 92                        | 1.31                          | 1.20                        | 2.15                        | 0.39                          | 36.4                            |
| 93                        | 3.45                          | 4.54                        | 11.29                       | 1.41                          | 102.1                           |
| 94                        | 2.852.02                      | 3.943.08                    | 9.216.19                    | 0.740.73                      | 98.097.9                        |
| 95                        | 0.63                          | 1.03                        | 2.54                        | 0.19                          | 20.6                            |
| 96                        | 1.45                          | 1.36                        | 3.80                        | 0.27                          | 31.3                            |

----

|   |   |                                             | $US    |   | $CDN      |   |
|--------|--------|--------------------------------------------------|--------|--------|-----------|--------|
| l      |   | 4400                  metres of diamond drilling |   | $      | 659,303   |   | $ | 776,000 |   |
| l      |   | Geological                  support services     |   | $      | 257,434   |   | $ | 303,000 |   |
| l      |   | Airborne                  geophysical survey     |   | $      | 127,443   |   | $ | 150,000 |   |
| l      |   | Helicopter                  support              |   | $      | 162,277   |   | $ | 191,000 |   |
| l      |   | Field                  support and management    |   | $      | 280,374   |   | $ | 330,000 |   |
|   |   |                                             |   | $      | 1,486,831 |   | $ | 1,750,000 |   |

**Liquidity      and Capital Resources**

|                                                   |   | January                  31, 2007 |      | January                  31, 2006 |   |
|--------------------------------------------------------|--------|-----------------------------------|-----------|-----------------------------------|--------|
| Cash                  and cash equivalent              |   | $                                 | 780,223   |                              | $      | 50,090 |   |
| Working                  capital (deficiency)          |   | $                                 | 1,326,339 |                              | $      | (362,324 | ) |
| Cash                  used in operating activities     |   | $                                 | 5,037,194 |                              | $      | 1,164,105 |   |
| Cash                  used in investing activities     |   | $                                 | 3,356     |                              | $      | 19,315 |   |
| Cash                  provided in financing activities |   | $                                 | 3,488,628 |                              | $      | 1,171,023 |   |

**Off-Balance      Sheet Arrangement**

**Contractual      Obligations and Commercial Commitments**

**Critical      Accounting Policies**

----

**Acquisition,      Exploration and Evaluation Expenditures**

**CONTROLS      AND PROCEDURES**

| (a) | Disclosure                Controls and Procedures.                The Company's management, with the participation of the principal                executive officer and principal financial officer, respectively,                has                evaluated the effectiveness of the Company's disclosure controls                and                procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)                under                the Securities Exchange Act of 1934, as amended (the "Exchange Act")                as of                the end of the June 30, 2006. Based on such evaluation, the principal                executive officer and principal financial officer of the Company,                respectively, have concluded that, as of the year end, the Company's                disclosure controls and procedures are                effective. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Internal                Control Over Financial Reporting.                There have not been any changes in the Company's internal control                over                financial reporting (as such term is defined in Rules 13a-15(f) and                15d-15(f) under the Exchange Act) during the year ended April 30,                2006                that have materially affected, or are reasonably likely to materially                affect, the Company's internal control over financial                reporting. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Limitations                on the Effectiveness of Controls.                We believe that a control system, no matter how well designed and                operated, cannot provide absolute assurance that the objectives of                the                control system are met, and no evaluation of controls can provide                absolute                assurance that all control issues and instances of fraud, if any,                within a                company have been detected. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RISK      FACTORS**

| 2. | WE                HAVE NO SOURCE OF OPERATING REVENUE AND EXPECT TO INCUR SIGNIFICANT                EXPENSES BEFORE ESTABLISHING AN OPERATING COMPANY, IF WE ARE ABLE                TO                ESTABLISH AN OPERATING COMPANY AT                ALL. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | further                exploration of the Mount Hinton Property and the results of that                exploration; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | our                ability to raise the capital necessary to conduct this exploration                and                preserve our interest in these mineral claims;                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                ability to raise capital to develop the Marg Property, establish                a mining                operation, and operate this mine in a profitable                manner. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | OUR                STOCK PRICE WILL BE HEAVILY INFLUENCED BY THE RESULTS OF DRILLING                TESTS |
|----|-----------------------------------------------------------------------------------------------------------|

| 4. | IF                WE DEVELOP OTHER MINERAL RESOURCES, THERE IS NO GUARANTEE THAT PRODUCTION                WILL BE PROFITABLE. |
|----|--------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | WE                MUST MAKE REGULAR ONGOING INVESTMENTS IN ORDER TO MAINTAIN OUR MINERAL                CLAIMS. |
|----|-----------------------------------------------------------------------------------------------------------------|

| 6. | WEATHER                INTERRUPTIONS IN THE YUKON TERRITORY MAY DELAY OUR PROPOSED EXPLORATION                OPERATIONS. |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 7. | WE                COULD ENCOUNTER REGULATORY AND PERMITTING                DELAYS. |
|----|------------------------------------------------------------------------------------|

| 8. | GOING                CONCERN QUALIFICATION |
|----|--------------------------------------------|

| 9. | THERE                ARE PENNY STOCK SECURITIES LAW CONSIDERATIONS THAT COULD LIMIT YOUR                ABILITY TO SELL YOUR SHARES. |
|----|--------------------------------------------------------------------------------------------------------------------------------------|

| 10. | OUR                BUSINESS IS AFFECTED BY CHANGES IN COMMODITY                PRICES |
|-----|---------------------------------------------------------------------------------------|

| 11. | OUR                BUSINESS IS SUBJECT TO CURRENCY                RISKS |
|-----|-------------------------------------------------------------------------|

**DISCLOSURE      AND FINANCIAL CONTROLS AND PROCEDURES**

----

**PART      II: OTHER INFORMATION**

**ITEM      1:**
**LEGAL      PROCEEDINGS:**

**ITEM      2:**
**UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS:**

----

**)**

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**ITEM      3:**
**DEFAULTS      UPON SENIOR SECURITIES:**

**ITEM      4:**
**SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS:**

| VOTESFOR   | VOTESAGAINST | ABSTENTIONS | ITEM                BEFORE SHAREHOLDERS                                                                                                                                                                          |
|------------|--------------|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |        |                                                                                                                                                                                                             |
|       |         |        | To                elect six directors to serve until the next Annual Meeting of Shareholders                or until their respective successors are elected or                appointed;                        |
|       |         |        |                                                                                                                                                                                                             |
| 9,322,796  |         | 1,170,777   |  J.L.                Guerra, Jr.                                                                                                                                                                            |
| 9,380,326  |         | 1,113,247   | Howard                S. Barth                                                                                                                                                                                   |
| 10,493,536 |         | 37          | Chester                (Chet) Idziszek                                                                                                                                                                           |
| 10,493,536 |         | 37          | Robert                E. Van Tassell                                                                                                                                                                             |
| 9,380,326  |         | 1,113,247   | Kenneth                J. Hill                                                                                                                                                                                   |
| 10,378,637 |         | 114,936     | Paul                A. Gorman                                                                                                                                                                                    |
|       |         |        |                                                                                                                                                                                                             |
| 10,425,973 |         | 67,600      | To                ratify the appointment of Schwartz Levitsky Feldman, LLP as the                independent auditors of the Company for the financial year ending                April                30, 2007; |
|       |         |        |                                                                                                                                                                                                             |
| 6,964,296  | 827,276      | 2,702,001   | To                approve the establishment of a new 2006 Stock Option                Plan;                                                                                                                      |
|       |         |        |                                                                                                                                                                                                             |
| 6,725,296  | 1,066,276    | 2,702,001   | To                approve a resolution extending the expiry dates of certain outstanding                stock options of the Company;                                                                            |

----

**ITEM      5:**
**OTHER      INFORMATION:**

**ITEM      6:**
**EXHIBITS      & REPORTS ON FORM 8-K**

| Exhibits |   |                                                                                                        |
|----------|--------|-------------------------------------------------------------------------------------------------------------|
|     |   |                                                                                                        |
| (a)      | 31.1   |  Certification                  of Chief Executive Officer.                                            |
|     | 31.2   |  Certification                  of Chief Financial Officer.                                            |
|     | 32.1   |  Certificate                  of Chief Executive Officer and Chief Financial                  Officer. |

**SIGNATURE**

|                               |                                            |                                              |
|------------------------------------|-------------------------------------------------|---------------------------------------------------|
|                               |                                            |
|                          |                                       |                                         |
| Dated:              March 16, 2007 | By:                                   | /s/ Paul              A.              Gorman |
|                               | Paul                A. Gorman, CEO and Director |
|                               |                                            |

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