----

----

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**BLUEBIRD        EXPLORATION COMPANY**

| **Delaware**                            | **1000**                                                                  | **N/A**                                             |
|-----------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------|
| State                  of Incorporation | Primary                  Standard Industrial Classification Code Number # | I.R.S                  Employer. Identification No. |

**Bluebird        Exploration Company**

**209-3608        Deercrest Drive**

**North        Vancouver, BC V7G2S8**

**The        Company Corporation**

**2711        Centerville Road, Suite 400**

**Wilmington,        Delaware 19808**

**Telephone:        302-636-5440**

**Facsimile:        302-636-5454**

**APPLICABLE        ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS        DURING THE PRECEDING FIVE YEARS**

**APPLICABLE        ONLY TO CORPORATE ISSUERS**

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|                                                        | Page                                                                                                             |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| PART                  I - FINANCIAL INFORMATION - UNAUDITED |                                                                                                                  |
|                                                        |                                                                                                                  |   |
| Item                  1.                                    | **INTERIM                  BALANCE SHEETS**                                                                           | F-1 |
|                                                        | **INTERIM                  STATEMENTS OF OPERATIONS**                                                                 | F-2 |
|                                                        | **INTERIM                  STATEMENT OF STOCKHOLDERS’ EQUITY**                                                  | F-3 |
|                                                        | **INTERIM                  STATEMENTS OF CASH FLOWS**                                                                 | F-4 |
|                                                        | **NOTES                  TO INTERIM FINANCIAL STATEMENTS**                                                            | F-5 |
| Item                  2.                                    | Management's                  Discussion and Analysis of Financial Condition and Plan of                  Operations. | 3 |
| Item                  3.                                    | Controls                  and Procedures                                                                              | 7 |
|                                                        |                                                                                                                  |   |
| PART                  II - OTHER INFORMATION                |                                                                                                                  |
|                                                        |                                                                                                                  |   |
| Item                  1.                                    | Legal                  Proceedings.                                                                                   | 7 |
| Item                  2.                                    | Changes                  in Securities and Use of Proceeds.                                                           | 7 |
| Item                  3.                                    | Defaults                  Upon Senior Securities.                                                                     | 7 |
| Item                  4.                                    | Submission                  of Matters to a Vote of Security Holders.                                                 | 7 |
| Item                  5.                                    | Other                  Information.                                                                                   | 7 |
| Item                  6.                                    | Exhibit                  and Reports on Form 8-K                                                                      | 7 |

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**Item        1.  Financial Statements (unaudited)**

**BLUEBIRD        EXPLORATION COMPANY**

**(An        Exploration Stage Company)**

**INTERIM  BALANCE        SHEETS**

**(Unaudited)**

|                                                                                                                                                                      |   | June                  30,2007 |    |   | December                  31, 2006 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|------------------------------------|--------|
| **ASSETS**                                                                                                                                                                |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |
| **CURRENT                  ASSETS**                                                                                                                                       |   |                          |    |   |                               |   |
| Cash                                                                                                                                                                      |   | $                             | 9,148   |   |                               | $      | 13,173 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
| TOTAL                  ASSETS                                                                                                                                             |   | $                             | 9,148   |   |                               | $      | 13,173 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY (DEFICIT)**                                                                                                 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
| **CURRENT                  LIABILITIES**                                                                                                                                  |   |                          |    |   |                               |   |   |   |
| Accounts                  payable and accrued liabilities                                                                                                                 |   | $                             | 11,307  |   |                               | $      | 3000 |   |
| Due                  to related party (Note 5)                                                                                                                            |   |                          | 500     |   |                               |   | 500 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
|                                                                                                                                                                      |   |                          | 11,807  |   |                               |   | 3500 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
| **STOCKHOLDERS’                  EQUITY (DEFICIT)**                                                                                                                 |   |
| Capital                  stock (Note 4)                                                                                                                                   |   |                          |    |   |                               |   |   |   |
| Authorized75,000,000                  shares of common stock, $0.0001 par value,Issued                  and outstanding13,220,000                  shares of common stock |   |                          | 132     |   |                               |   | 132 |   |
| Additional                  paid-in capital                                                                                                                               |   |                          | 18,968  |   |                               |   | 18,968 |   |
| Deficit                  accumulated during the exploration stage                                                                                                         |   |                          | (21,759 | )      |                               |   | (9,427 | ) |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
|                                                                                                                                                                      |   |                          | (2,659  | )      |                               |   | 9,673 |   |
|                                                                                                                                                                      |   |                          |    |   |                               |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                         |   | $                             | 9,148   |   |                               | $      | 13,173 |   |

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**BLUEBIRD        EXPLORATION COMPANY**

**(An        Exploration Stage Company)**

**INTERIM        STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                        |   | Three                  months ended June 30, 2007 (Unaudited) |       |   | Three                  months ended June 30, 2006 (Unaudited) |   |       | Six                  months ended June 30, 2007 (Unaudited) |   |   | Six                  months ended June 30, 2006 (Unaudited) |   |   | Cumulative                  results of operations from July 15, 2005 (date of inception) to                  June 30,                  2007 (Unaudited) |       |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|--------|---------------------------------------------------------------|--------|------------|-------------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |
| **EXPENSES**                                                                                |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |
| Exploration                  & development                                              |   | $                                                             | 3,415      |   |                                                          | $      | 3,565      |                                                        |   | $      | 3,415                                                       |   |   | $                                                                                                                                                       | 3,565      |   |   | $ | 6,980 |   |
| Office                  and general                                                         |   |                                                          | 492        |   |                                                          |   | 376        |                                                        |   |   | 610                                                         |   |   |                                                                                                                                                    | 403        |   |   |   | 1,692 |   |
| Professional                  fees                                                          |   |                                                          | 7,807      |   |                                                          |   | -          |                                                        |   |   | 8,307                                                       |   |   |                                                                                                                                                    | -          |   |   |   | 13,087 |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
| **NET                  LOSS**                                                               |   | $                                                             | (11,714    | )      |                                                          | $      | (3,941     | )                                                           |   | $      | (12,332                                                     | )      |   | $                                                                                                                                                       | (3,968     | ) |   | $ | (21,759 | ) |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
| **BASIC                  AND DILUTED NET                  LOSS PER                  SHARE** |   | $                                                             | 0.00       |   |                                                          | $      | 0.00       |                                                        |   | $      | 0.00                                                        |   |   | $                                                                                                                                                       | 0.00       |   |   |   |   |   |
|                                                                                        |   |                                                          |       |   |                                                          |   |       |                                                        |   |   |                                                        |   |   |                                                                                                                                                    |       |   |   |   |   |   |
| **WEIGHTED                  AVERAGE NUMBER OF COMMON SHARES OUTSTANDING**                   |   |                                                          | 13,220,000 |   |                                                          |   | 10,000,000 |                                                        |   |   | 13,220,000                                                  |   |   |                                                                                                                                                    | 10,000,000 |   |   |   |   |   |

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**BLUEBIRD        EXPLORATION COMPANY**

**(An        Exploration Stage Company)**

**INTERIM        STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)**

**(Unaudited)**

**FROM        INCEPTION (July 15, 2005) TO JUNE 30, 2007**

|                                                                                                     |   | Common                  Stock     |       |   | Additional |   |    | Deficit                  Accumulated During the |   |   |             |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|------------|--------|---------|-------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                     |   | Number                  of shares |       |   | Amount     |   |    | Paid-inCapital                                  |   |   | ExplorationStage |   |   | Total |   |
|                                                                                                     |   |                              |       |   |       |   |    |                                            |   |   |             |   |   |   |   |
| Balance,                  July 15, 2005 (Date of Inception)                                              |   |                              | -          |   |       | $      | -       |                                            |   | $      | -                |   |   | $ | - |   |   | $ | - |   |
|                                                                                                     |   |                              |       |   |       |   |    |                                            |   |   |             |   |   |   |   |   |   |   |   |   |
| Common                  stock issued for cash at $0.0003 per share - September 30,                  2005 |   |                              | 10,000,000 |   |       |   | 100     |                                            |   |   | 2,900            |   |   |   | - |   |   |   | 3,000 |   |
| Net                  Loss for the period                                                                 |   |                              | -          |   |       |   | -       |                                            |   |   | -                |   |   |   | (702 | ) |   |   | (702 | ) |
| Balance,                  December 31, 2005                                                              |   |                              | 10,000,000 |   |       |   | 100     |                                            |   |   | 2,900            |   |   |   | (702 | ) |   |   | 2,298 |   |
| Common                    stock issued for cash @ $0.005 per share. December 14, 2006                    |   |                              | 3,220,000  |   |       |   | 32      |                                            |   |   | 16,068           |   |   |   | - |   |   |   | 16,100 |   |
| Net                  loss for the period                                                                 |   |                              | (8,725     | )      |       |   | (8,725  | )                                               |   |   |             |   |   |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006                                                              |   |                              | 13,220,000 |   |       |   | 132     |                                            |   |   | 18,968           |   |   |   | (9,427 | ) |   |   | 9,673 |   |
|                                                                                                     |   |                              |       |   |       |   |    |                                            |   |   |             |   |   |   |   |   |   |   |   |   |
| Net                  loss for the period                                                                 |   |                              | (12,332    | )      |       |   | (12,332 | )                                               |   |   |             |   |   |   |   |   |   |   |   |   |
| Balance,                  June 30, 2007                                                                  |   |                              | 13,220,000 |   |       | $      | 132     |                                            |   | $      | 18,968           |   |   | $ | (21,759 | ) |   | $ | (2,659 | ) |

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**BLUEBIRD        EXPLORATION COMPANY**

**(An        Exploration Stage Company)**

**INTERIM        STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                   |   | Three                  months ended, June 30,2007 |    |   | Three                  months ended June 30,2006 |   |   | Six                  months ended June 30,2007 |   |   | Six                  months ended June 30,2006 |   |   | Cumulative                  results of operations from inception (July 15, 2005) to June                  30,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|--------|--------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |
| **Cash                  Flows From Operating Activities**                                                                                                              |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |
| Net                  loss                                                                                                                                              |   | $                                                 | (11,714 | )      |                                             | $      | (3,941 | )                                              |   | $      | (12,332                                        | )      |   | $                                                                                                                      | (3,968 | ) |   | $ | (21,759 | ) |
| Adjustment                  to reconcile net loss to net cash used in operating activities                  -accounts                  payable and accrued liabilities |   |                                              | 7,807   |   |                                             |   | -      |                                           |   |   | 8,307                                          |   |   |                                                                                                                   | -      |   |   |   | 8,307 |   |
| **Net                  Cash Used In Operating Activities**                                                                                                             |   |                                              | (3,907  | )      |                                             |   | (3,941 | )                                              |   |   | (1,025                                         | )      |   |                                                                                                                   | (3,968 | ) |   |   | (10,452 | ) |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| **Cash                  Flows From Financing Activities**                                                                                                              |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock                                                                                                                    |   |                                              | -       |   |                                             |   | 5,000  |                                           |   |   | -                                              |   |   |                                                                                                                   | 5,000  |   |   |   | 19,100 |   |
| Related                  party advance                                                                                                                                 |   |                                              | -       |   |                                             |   | -      |                                           |   |   | -                                              |   |   |                                                                                                                   | 500    |   |   |   |   |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| **Net                  Cash Provided By Financing Activities**                                                                                                         |   |                                              | -       |   |                                             |   | 5,000  |                                           |   |   | -                                              |   |   |                                                                                                                   | 5,000  |   |   |   | 19,600 |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| **Net                  Increase (Decrease) In Cash**                                                                                                                   |   |                                              | (3,907  | )      |                                             |   | 1,059  |                                           |   |   | (4,025                                         | )      |   |                                                                                                                   | (1,032 | ) |   |   | 9,148 |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| **Cash,                  Beginning Of Period**                                                                                                                         |   |                                              | 13,055  |   |                                             |   | 2,771  |                                           |   |   | 13,173                                         |   |   |                                                                                                                   | 2,798  |   |   |   | - |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |
| **Cash,                  End Of Period**                                                                                                                               |   | $                                                 | 9,148   |   |                                             | $      | 3,830  |                                           |   | $      | 9,148                                          |   |   | $                                                                                                                      | 3,830  |   |   | $ | 9,148 |   |
|                                                                                                                                                                   |   |                                              |    |   |                                             |   |   |                                           |   |   |                                           |   |   |                                                                                                                   |   |   |   |   |   |   |

| Interest                        |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                    taxes |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |

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**BLUEBIRD        EXPLORATION COMPANY**

**(An        Exploration Stage Company)**

**NOTES        TO THE INTERIM FINANCIAL STATEMENTS**

**JUNE        30, 2007**

**NATURE        OF CONTINUANCE OF OPERATIONS**

**INTERIM        REPORTING**

**RELATED        PARTY TRANSACTIONS**

**FINANCIAL        INSTRUMENTS**

|                              |   | US                  equivalent |   |   | CDN                  dollars |   |
|-----------------------------------|--------|--------------------------------|--------|--------|------------------------------|--------|
|                              |   |                           |   |   |                         |   |
| Accounts                  Payable |   | $                              | 8,457  |   |                         | $      | 9,010 |   |

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**Item        2. Management's Discussion and Analysis of Financial Condition and Plan of        Operations**

**Description        Of Business**

**In        General**

**Location,        Access and Description**

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**Plan        Of Operation**

| Mobilization/Demobilization                                                                                          |   | $      | 2,000  |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Geologist        (3                  days @ $400/day)                        |   | $      | 1,200  |   |
| Geotechnician                        (3                  days @ $300/day)              |   | $      | 900    |   |
| Equipment                  rental, fuel, food, supplies                                                              |   | $      | 700    |   |
| Assays                            (20                  @ $30 each) |   | $      | 600    |   |
| Helicopter                          (3                  hours @ $800/hour)   |   | $      | 2,400  |   |
| Report                                                                                                               |   | $      | 500    |   |
| Filing                  Fees                                                                                         |   | $      | 200    |   |
|                                                                                                                 |   |   |   |   |
| Total                                                                                                                |   | $      | 8,500  |   |

----

| Mobilization\Demobilization                             |   | $      | 5,000  |   |
|---------------------------------------------------------|--------|--------|--------|--------|
| Airborne                  MAG-EM Survey                 |   | $      | 12,500 |   |
| Horizontal                  Loop Electromagnetic Survey |   | $      | 9,500  |   |
| Data                  Reduction and Report              |   | $      | 2,500  |   |
| Administration                  Fees and Taxes          |   | $      | 7,000  |   |
|                                                    |   |   |   |   |
| Total                                                   |   | $      | 36,500 |   |

**Liquidity        and Capital Resources**

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**Off-Balance        Sheet Arrangements**

**Bluebird        Claim Purchase Agreement**

**Product        Research and Development**

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**Item        3. Controls and Procedures**

**Changes        In Internal Controls.**

| Item                  1. | Not                  applicable. |
|--------------------------|----------------------------------|

| Item                  2. | Not                  applicable. |
|--------------------------|----------------------------------|

| Item                  3. | Not                  applicable. |
|--------------------------|----------------------------------|

| Item                  4. | Not                  applicable. |
|--------------------------|----------------------------------|

| Item                  5. | Not                  applicable. |
|--------------------------|----------------------------------|

| Item                  6. | Not                  applicable. |
|--------------------------|----------------------------------|

| Exhibit                  Number | Description |
|---------------------------------|-------------|

|   | 31.1 | Section                  302 Certification of Chief Executive Officer and Chief Financial                  Officer |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906 of                  The Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Bluebird                  Exploration Company . |
|-------------------------------------------------|
|                                            |   |
| Dated:                  August 13, 2007         | /s/                  Peter Lawrence Wells          |
|                                            | Chief                  Executive Officer and |
|                                            | Chief                  Financial Officer |

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