----

----

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

----

TABLEOF CONTENTS

|                                |                                                             | Page   |
|-------------------------------------|------------------------------------------------------------------|--------|
|                                |                                                             |   |
|                                |                                                             |   |
| PART I - FINANCIAL      INFORMATION |
|                                |                                                             |   |
| Item      1:                        | Financial      Statements                                        | 3      |
|                                |                                                             |   |
| Item      2:                        | Plan      of Operation                                           | 16     |
|                                |                                                             |   |
| Item      3:                        | Controls      and Procedures                                     | 18     |
|                                |
| PART II - OTHER      INFORMATION    |
|                                |                                                             |   |
| Item      1:                        | Legal      Proceedings                                           | 19     |
|                                |                                                             |   |
| Item      2:                        | Unregistered      Sales of Equity Securities and Use of Proceeds | 19     |
|                                |                                                             |   |
| Item      3:                        | Defaults      Upon Senior Securities                             | 19     |
|                                |                                                             |   |
| Item      4:                        | Submission      of Matters to a Vote of Security Holders         | 19     |
|                                |                                                             |   |
| Item      5:                        | Other      Information                                           | 19     |
|                                |                                                             |   |
| Item      6:                        | Exhibits                                                         | 19     |

 

----

Item 1. FINANCIAL STATEMENTS 

|   | (a) | Interim      balance sheets as of June 30, 2008 and December 31,  2007; |
|--------|-----|-------------------------------------------------------------------------|

|   | (b) | Interim      statements of operations for the three months and six months ended June      30, 2008 and 2007 and for the period from August 25, 2003 (inception) to      June 30, 2008 (cumulative); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Interim      statements of cash flows for the six months ended June 30, 2008 and 2007      and for the period from August 25, 2003 (inception) to June 30, 2008      (cumulative); |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Interim      statements of stockholders’ equity (deficiency) for the period from August      25, 2003 (inception) to June 30, 2008 (cumulative);  and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                         |   | June      30 |       |   | December      31 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|------------------|--------|
|                                                                       ASSETS |   | 2008         |       |   | 2007(audited)    |   |
| Current                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |       |   |             |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                         |   | $            | 28,006     |   |             | $      | 11,877 |   |
| Prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                                        |   |         | 22,847     |   |             |   | 7,293 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         | 50,853     |   |             |   | 19,170 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
| Instant      Wirefree technology                                                                                                                                                                                                                                                                                                                                                                             |   |         | -          |   |             |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
| Capital      – Note 4                                                                                                                                                                                                                                                                                                                                                                                  |   |         | 12,519     |   |             |   | 16,213 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   | $            | 63,372     |   |             | $      | 35,383 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Current                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |       |   |             |   |   |   |
| Accounts      payable and accrued liabilities – Note 5                                                                                                                                                                                                                                                                                                                                                 |   | $            | 187,226    |   |             | $      | 34,580 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         | 187,226    |   |             |   | 34,580 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
| STOCKHOLDERS’      DEFICIENCY                                                                                                                                                                                                                                                                                                                                                                          |   |
| Capital      stock                                                                                                                                                                                                                                                                                                                                                                                           |   |         |       |   |             |   |   |   |
| Authorized:                                                                                                                                                                                                                                                                                                                                                                                                  |   |         |       |   |             |   |   |   |
| 500,000,000      common shares with par value of $0.001                                                                                                                                                                                                                                                                                                                                                      |   |         |       |   |             |   |   |   |
| Issued:                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |       |   |             |   |   |   |
| 80,549,666      common shares (2007: 76,216,233)                                                                                                                                                                                                                                                                                                                                                        |   |         | 80,549     |   |             |   | 76,216 |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                                              |   |         | 2,454,263  |   |             |   | 1,388,596 |   |
| Warrants                                                                                                                                                                                                                                                                                                                                                                                                     |   |         | 234,360    |   |             |   | 234,360 |   |
| Subscription      proceeds                                                                                                                                                                                                                                                                                                                                                                                   |   |         | 2,544,400  |   |             |   | 1,000,000 |   |
| Deficit      accumulated during the Exploration Stage                                                                                                                                                                                                                                                                                                                                                        |   |         | (5,437,426 | )      |             |   | (2,698,369 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         | (123,854   | )      |             |   | 803 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   | $            | 63,372     |   |             | $      | 35,383 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                         |   |         |       |   |             |   |   |   |

----

|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   | August      25, 2003 |       |
|-----------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|------------|--------------------|--------|--------|--------------------|--------|--------|----------------------|------------|
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   | (Date      of Incor- |       |
|                                                      |   | Three      months  |       |   | Three      months  |   |       | Six      months    |   |   | Six      months    |   |   | portion)      to     |       |
|                                                      |   | ended      June 30 |       |   | ended      June 30 |   |       | ended      June 30 |   |   | ended      June 30 |   |   | to      June 30,     |       |
|                                                      |   | 2008               |       |   | 2007               |   |       | 2008               |   |   | 2007               |   |   | 2008                 |       |
| Expenses                                                  |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |
| General      and administrative  - Note 6       |   | $                  | 34,664     |   |               | $      | 71,634     |               |   | $      | 99,609             |   |   | $                    | 157,273    |   |   | $ | 1,032,236 |   |
| Exploration                                               |   |               | 2,635,754  |   |               |   | -          |               |   |   | 2,635,754          |   |   |                 | -          |   |   |   | 3,693,339 |   |
| Depreciation                                              |   |               | 1,847      |   |               |   | 2,061      |               |   |   | 3,694              |   |   |                 | 3,732      |   |   |   | 12,272 |   |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Total      operating expenses                             |   |               | (2,672,265 | )      |               |   | (73,695    | )                  |   |   | (2,739,057         | )      |   |                 | (161,005   | ) |   |   | (4,736,847 | ) |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Other      income ( expense)                              |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Loss      on disposal of capital asset                    |   |               | -          |   |               |   | -          |               |   |   | -                  |   |   |                 | -          |   |   |   | (1,310 | ) |
| Fair      value of discount on private placement          |   |               | -          |   |               |   | -          |               |   |   | -                  |   |   |                 | -          |   |   |   | (653,112 | ) |
| Impairment      in Instant Wirefree technology            |   |               | -          |   |               |   | -          |               |   |   | -                  |   |   |                 | -          |   |   |   | (46,200 | ) |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Total      other income ( loss)                           |   |               | -          |   |               |   | -          |               |   |   | -                  |   |   |                 | -          |   |   |   | (700,622 | ) |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Other      comprehensive income ( loss)                   |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Foreign      exchange gain (loss)                         |   |               | ( -   | )      |               |   | ( -   | )                  |   |   | ( -           | )      |   |                 | ( -   | ) |   |   | 43 |   |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Total      other comprehensive income ( loss)             |   |               | ( -   | )      |               |   | ( -   | )                  |   |   | ( -           | )      |   |                 | ( -   | ) |   |   | 43 |   |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Net      loss for the period                              |   | $                  | (2,675,265 | )      |               | $      | (73,695    | )                  |   | $      | (2,739,057         | )      |   | $                    | (207,205   | ) |   | $ | ( 5,437,426 | ) |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Basic      loss per share                                 |   | $                  | (0.03      | )      |               | $      | (0.00      | )                  |   | $      | (0.03              | )      |   | $                    | (0.00      | ) |   |   |   |   |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |
| Weighted      average number of common shares outstanding |   |               | 80,549,666 |   |               |   | 76,020,000 |               |   |   | 79,882,999         |   |   |                 | 76,020,000 |   |   |   |   |   |
|                                                      |   |               |       |   |               |   |       |               |   |   |               |   |   |                 |       |   |   |   |   |   |

----

|                                                                        |   |               |       |   |               |   |     | August      25, 2003 |   |
|-----------------------------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|----------|----------------------|--------|
|                                                                        |   |               |       |   |               |   |     | (Date      of Incor- |   |
|                                                                        |   | Six      months    |       |   | Six      months    |   |     | Portion)      to     |   |
|                                                                        |   | ended      June 30 |       |   | ended      June 30 |   |     | June      30,        |   |
|                                                                        |   | 2008               |       |   | 2007               |   |     | 2008                 |   |
| Operating      Activities                                                   |   |               |       |   |               |   |     |                 |   |
| Net      loss for the period                                                |   | $                  | (2,739,057 | )      |               | $      | (207,205 | )                    |   | $ | ( 5,437,426 | ) |
| Adjustment      for non-cash items:                                         |   |               |       |   |               |   |     |                 |   |   |   |   |
| Depreciation                                                                |   |               | 3,694      |   |               |   | 3,732    |                 |   |   | 12,272 |   |
| Capital      stock issued for mineral property costs                        |   |               | 2,320,000  |   |               |   | -        |                 |   |   | 3,352,500 |   |
| Impairment      in Instant Wirefree technology                              |   |               | -          |   |               |   | 46,200   |                 |   |   | 46,200 |   |
| Fair      value discount on private placement                               |   |               | -          |   |               |   | -        |                 |   |   | 653,112 |   |
| Loss      on disposal of furniture and equipment                            |   |               | -          |   |               |   | -        |                 |   |   | 1,310 |   |
| Change      in non-cash working capital balances related to Operations |   |               |       |   |               |   |     |                 |   |   |   |   |
| Prepaid      expenses                                                       |   |               | (15,554    | )      |               |   | 2,362    |                 |   |   | (22,847 | ) |
| Accounts      payable and accrued liabilities                               |   |               | 152,646    |   |               |   | (1,554   | )                    |   |   | 187,226 |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Net      cash used in operations                                            |   |               | (278,271   | )      |               |   | (156,465 | )                    |   |   | (1,207,653 | ) |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Investing      Activities                                                   |   |               |       |   |               |   |     |                 |   |   |   |   |
| Acquisition      of capital assets                                          |   |               | -          |   |               |   | (10,846  | )                    |   |   | (27,128 | ) |
| Proceeds      on disposal of furniture and equipment                        |   |               | -          |   |               |   | -        |                 |   |   | 1,027 |   |
| Instant      Wirefree technology                                            |   |               | -          |   |               |   | -        |                 |   |   | (27,500 | ) |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
|                                                                        |   |               | -          |   |               |   | (10,846  | )                    |   |   | (53,601 | ) |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Financing      Activities                                                   |   |               |       |   |               |   |     |                 |   |   |   |   |
| Capital      stock issued                                                   |   |               | 70,000     |   |               |   | -        |                 |   |   | 851,600 |   |
|  Subscription  proceeds                                      |   |               | 224,400    |   |               |   |     |                 |   |   | 224,400 |   |
| Promissory      notes                                                       |   |               | -          |   |               |   | -        |                 |   |   | 213,260 |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Net      cash provided by financing activities                              |   |               | 294,400    |   |               |   | -        |                 |   |   | 1,289,260 |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Increase      (decrease) in cash during the period                          |   |               | 16,129     |   |               |   | (167,311 | )                    |   |   | 28,006 |   |
| Cash,      beginning of period                                              |   |               | 11,877     |   |               |   | 288,107  |                 |   |   | - |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Cash,      end of period                                                    |   | $                  | 28,006     |   |               | $      | 120,796  |                 |   | $ | 28,006 |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Supplemental      disclosure of cash flow information:                      |   |               |       |   |               |   |     |                 |   |   |   |   |
| Cash      paid for:                                                         |   |               |       |   |               |   |     |                 |   |   |   |   |
| Interest                                                                    |   | $                  | -          |   |               | $      | -        |                 |   | $ | - |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Income      taxes                                                           |   | $                  | -          |   |               | $      | -        |                 |   | $ | - |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |
| Non-cash      transactions                                                  |   |               |       |   |               |   |     |                 |   |   |   |   |
| Shares      issued on acquisition of Instant Wirefree, Inc.                 |   | $                  | -          |   |               | $      | -        |                 |   | $ | 18,700 |   |
| Shares      issued to settle debt                                           |   | $                  | -          |   |               | $      | -        |                 |   | $ | 213,260 |   |
| Share      subscriptions issued on acquistion of mineral property           |   | $                  | 2,320,000  |   |               | $      | -        |                 |   | $ | 1,000,000 |   |
|                                                                        |   |               |       |   |               |   |     |                 |   |   |   |   |

----

|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   | Deficit         |   |            |   |   |
|--------------------------------------------------------------------------------------------|--------|-------------------|------------------|--------|-----------|--------|--------------------|------------|--------|--------|---------------------|--------|--------|-----------------|----------------------|--------|-----------------|--------|-----------------|--------|--------|
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   | Accumulated     |   |            |   |   |
|                                                                                       |   |              |             |   |      |   |               | Additional |   |   |                |   |   |            |                 |   | During      the |   |            |   |   |
|                                                                                       |   | Common      Stock |             |   | Paid-in   |   |               |       |   |   |                |   |   | Pre-exploration |                 |   |            |   |
|                                                                                       |   | Shares            |             |   | Par Value |   |               | Capital    |   |   | Warrants            |   |   | Subscriptions   |                 |   | Stage           |   |            | Total  |   |
| Common      stock issued for cash  –      at $0.001                        |   |              | 2,700,000        |   |      | $      | 2,700              |       |   | $      | -                   |   |   | $               | -                    |   |            | $      | -               |   |   | $ | - |   |   | $ | 2,700 |   |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Common      stock issued for mineral      property costs – at $0.05             |   |              | 650,000          |   |      |   | 650                |       |   |   | 31,850              |   |   |            |                 |   |            |   |            |   |   |   | - |   |   |   | 32,500 |   |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (127,977 | ) |   |   | (127,977 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2003                                                            |   |              | 3,350,000        |   |      | $      | 3,350              |       |   | $      | 31,850              |   |   |            |                 |   |            |   |            |   |   | $ | (127,977 | ) |   | $ | (92,777 | ) |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (84,812 | ) |   |   | (84,812 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2004                                                            |   |              | 3,350,000        |   |      | $      | 3,350              |       |   | $      | 31,850              |   |   |            |                 |   |            |   |            |   |   | $ | (212,789 | ) |   | $ | (177,589 | ) |
| Common      stock issued for cash pursuant to a public offering at$.05                     |   |              | 6,000,000        |   |      |   | 6,000              |       |   |   | 294,000             |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   | 300,000 |   |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (85,922 | ) |   |   | (85,922 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2005                                                            |   |              | 9,350,000        |   |      | $      | 9,350              |       |   | $      | 325,850             |   |   |            |                 |   |            |   |            |   |   | $ | (298,711 | ) |   | $ | 36,489 |   |
| Common      stock issued for shares of Instant Wirefree, Inc. at $.001                     |   |              | 18,700,000       |   |      |   | 18,700             |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   |  - |   |   |   |  18,700 |   |
| Common      stock issued for debt at $.004                                                 |   |              | 47,550,000       |   |      |   | 47,550             |       |   |   | 165,710             |   |   |            |                 |   |            |   |            |   |   |   |  - |   |   |   |  213,260 |   |
| Common      stock issued for cash pursuant to a private placement at $ 1.00 per      share |   |              |   420,000   |   |      |   |   420         |       |   |   |  209,580       |   |   |            |    210,000 |   |            |   |            |   |   |   |    - |   |   |   |    420,000 |   |
| Fair      value discount on private placement                                              |   |              |             |   |      |   |               |       |   |   | 653,112             |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |  653,112 |   |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (1,009,539 | ) |   |   | (1,009,539 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2006                                                            |   |              | 76,020,000       |   |      |   | 76,020             |       |   | $      | 1,354,252           |   |   |            |                 |   |            |   |            |   |   | $ | (1,308,250 | ) |   | $ | 332,022 |   |
| Common      stock issued for cash pursuant to a private placement at $ 1.00 per      share |   |              |   196,333   |   |      |   |    196   |       |   |   |    34,344 |   |   |            |    24,360  |   |            |   |            |   |   |   |   |   |   |   |    58,900 |   |
| Subscriptions      payable, issued for mineral property at $.50                            |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |  1,000,000 |   |   |   |   |   |   |   |  1,000,000 |   |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (1,390,119 | ) |   |   | ( 1.390.119 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007                                                            |   |              | 76,216,333       |   |      | $      | 76,216             |       |   | $      | 1,388,596           |   |   | $               | 234,360              |   |            | $      | 1,000,000       |   |   | $ | (2,698,369 | ) |   | $ | 803 |   |
| Common      stock issued for cash pursuant to a private placement at $ .03 per      share  |   |              |   2,333,333 |   |      |   |    2,333 |       |   |   |    67,667 |   |   |            |    24,360  |   |            |   |            |   |   |   |   |   |   |   |    70,000 |   |
| Common      stock issued for share subscriptions receivable                                |   |              | 2,000,000        |   |      |   |  2,000        |       |   |   |  998,000       |   |   |            |  -              |   |            |   | (1,000,000      | )      |   |   |   |   |   |   |   |   |
| Subscriptions      payable, issued for mineral property at $.58                            |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |  2,320,000 |   |   |   |   |   |   |   |  2,320,000 |   |
| Subscriptions      proceeds received                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   | 224,400         |   |   |   |   |   |   |   | 224,400 |   |
| Net      loss for the period                                                               |   |              | -                |   |      |   | -                  |       |   |   | -                   |   |   |            |                 |   |            |   |            |   |   |   | (2,739,057 | ) |   |   | (2,739,057 | ) |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |              |             |   |      |   |               |       |   |   |                |   |   |            |                 |   |            |   |            |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2008                                                                |   |              | 80,549,666       |   |      | $      | 80,549             |       |   | $      | 2,454,263           |   |   | $               | 234,360              |   |            | $      | 2,544,400       |   |   | $ | (5,437,426 | ) |   | $ | (123,854 | ) |

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|   | On      August 10, 2007, the Company changed its name to Vanguard Minerals      Corporation. |
|--------|----------------------------------------------------------------------------------------------|

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

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|                        |   |   |   |   | Accumulated  |   |   | Net      Book Value |   |   |       |   |
|-----------------------------|--------|--------|--------|--------|--------------|--------|--------|---------------------|--------|--------|------------|--------|
|                        |   | Cost   |   |   | Amortization |   |   |                |   |   |       |   |
|                        |   |   |   |   |         |   |   | June      30        |   |   | December31 |   |
|                        |   |   |   |   |         |   |   | 2008                |   |   | 2007       |   |
|                        |   |   |   |   |         |   |   |                |   |   |       |   |
| Computer      equipment     |   | $      | 16,043 |   |         | $      | 8,211  |                |   | $      | 7,832      |   |   | $ | 10,507 |   |
| Furniture      and fixtures |   |   | 6,569  |   |         |   | 2,608  |                |   |   | 3,961      |   |   |   | 4,616 |   |
| Leasehold      improvements |   |   | 2,180  |   |         |   | 1,454  |                |   |   | 726        |   |   |   | 1,090 |   |
|                        |   | $      | 24,792 |   |         | $      | 12,273 |                |   | $      | 12,519     |   |   | $ | 16,213 |   |

----

|                           |   |                  |   |   |          |   |   | August      25, |   |
|--------------------------------|--------|-----------------------|--------|--------|---------------|--------|--------|-----------------|--------|
|                           |   |                  |   |   |          |   |   | 2003            |   |
|                           |   |                  |   |   |          |   |   | (Date      of   |   |
|                           |   |                  |   |   |          |   |   | Incorporation)  |   |
|                           |   | Six      months ended |   |   | to            |   |
|                           |   | June      30          |   |   | June      30, |   |
|                           |   | 2008                  |   |   | 2007          |   |   | 2008            |   |
|                           |   |                  |   |   |          |   |   |            |   |
| Consulting      fees           |   | $                     | -      |   |          | $      | -      |            |   | $ | 34,305 |   |
| Interest                       |   |                  | -      |   |          |   | -      |            |   |   | 7,500 |   |
| Office      and miscellaneous  |   |                  | -      |   |          |   | -      |            |   |   | 1,000 |   |
| Salaries      and compensation |   |                  | 26,680 |   |          |   | 25,147 |            |   |   | 124,104 |   |
| Mineral      property costs    |   |                  | -      |   |          |   | -      |            |   |   | 2,000 |   |
|                           |   |                  |   |   |          |   |   |            |   |   |   |   |
|                           |   | $                     | 26,680 |   |          | $      | 25,147 |            |   | $ | 168,909 |   |
|                           |   |                  |   |   |          |   |   |            |   |   |   |   |

|   | Included      in accounts payable and accrued liabilities is $nil (December 31, 2007:      $4,551 owed to a shareholder of the Company with respect to unpaid      consulting fees. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      7 | Share      Capital. |   |
|-------------|---------------------|--------|

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| Item      2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------|

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Overview

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Liquidityand Capital Resources

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

| (a)   |  Evaluation      of disclosure controls andprocedures |
|-----------------|------------------------------------------------------------|

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Item 1.  LEGAL PROCEEDINGS 

Item 2.  UNREGISTERED SALES OF SECURITIES AND USE OFPROCEEDS

Item 3.  DEFAULT UPON SENIOR SECURITIES 

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

Item 5.  OTHER INFORMATION 

Item 6.  EXHIBITS

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

| 3.1  | Articles      of Incorporation, incorporated by reference from our Prospectus on Form      SB-2 filed February 13, 2004. File Number 333-112830. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2  | Bylaws,      incorporated by reference from our Prospectus on Form SB-2 filed February      13, 2004. File Number 333-112830.                    |
| 10.1 | Assignment      Agreement between Registrant and Coastal Uranium Holdings Ltd. dated April      6, 2008.                                         |

| 31.1 | Certification      of Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. Filed as an Exhibit to this Quarterly Report      on Form 10-Q. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.1 | Certification      of Chief Executive Officer and Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002. Filed as an Exhibit to this Quarterly Report      on Form 10-Q. |

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|                       | Vanguard      Minerals Corporation                                                                                                                             |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                           |
|                       |                                                                                                                                                           |
|                       |                                                                                                                                                           |
|                       |                                                                                                                                                           |
| DATE:      August 14, 2008 | /s/ Vladimir      Fedyunin                       |
|                       | Vladimir      Fedyunin                                                                                                                                         |
|                       | President,      CEO, Director, PrincipalFinancial      and Accounting Officer                                                                                  |

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