---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, DC
20549

FORM 10-QSB

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2007

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

Commission file number **333-1421-28**

LAUD Resources Inc.(Exact name of registrant as specified in its charter)

|Nevada                                           | N/A                                 
|------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.)
|organization)                                    |                                     

Suite 600  595 Howe Street Vancouver, British
Columbia Canada V6C 2T5(Address of principal executive offices)

604-662-3910(Registrants telephone
number, including area code)

**XTOL Energy Inc.**(Former name, former address and former fiscal year, if changed since
  last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was require to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. [X] Yes  [   ] No

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). [   ] Yes
 [X] No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS: Check whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or 15(d) of
the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. [   ] Yes  [ 
 ] No

APPLICABLE ONLY TO CORPORATE ISSUERS

As of October 22, 2007, the registrants outstanding common
  stock consisted of 81,088,000 shares.

1

---

PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The unaudited interim financial statements of LAUD Resources
  Inc., formerly XTOL Energy Inc. (the “Company”, “LAUD”,
  “we”, “our”, “us”) follow. All currency
  references in this report are in US dollars unless otherwise noted.

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)

August 31, 2007

|                                  | Index
|--------------------------------- | -----
|                                  |      
|Balance Sheets                    | F-1  
|                                  |      
|Statements of Operations          | F-2  
|                                  |      
|Statements of Cash Flows          | F-3  
|                                  |      
|Notes to the Financial Statements | F-4  

---

Laud Resources Inc. (formerly XTOL Energy Inc.) 
  (An Exploration Stage Company)
  Balance Sheets
  (Expressed in US dollars)

|                                                                               |  | August 31   |   |  | November 30, |  
|------------------------------------------------------------------------------ |  | ----------- | - |  | ------------ | -
|                                                                               |  | 2007        |   |  | 2006         |  
|                                                                               |  | $           |   |  | $            |  
|                                                                               |  | (unaudited) |   |  |              |  
|ASSETS                                                                         |  |             |   |  |              |  
|Current Assets                                                                 |  |             |   |  |              |  
|Cash                                                                           |  | 244,538     |   |  | 99,602       |  
|Accrued revenue                                                                |  | 880         |   |  |             |  
|Prepaid expenses (Note 6)                                                      |  | 404,046     |   |  | 224,432      |  
|Total Current Assets                                                           |  | 649,464     |   |  | 324,034      |  
|Property and Equipment (Note 3)                                                |  | 1,978       |   |  | 2,826        |  
|Oil and Gas Property
      (Note 4)                                            |  | 31,112      |   |  | 34,038       |  
|Total Assets                                                                   |  | 682,554     |   |  | 360,898      |  
|                                                                               |  |             |   |  |              |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                           |  |             |   |  |              |  
|Current Liabilities                                                            |  |             |   |  |              |  
|Accounts payable                                                               |  | 5,326       |   |  | 5,902        |  
|Accrued liabilities                                                            |  | 4,652       |   |  | 5,873        |  
|Due to related party (Note 5(b))                                               |  | 806         |   |  |             |  
|Total Liabilities                                                              |  | 10,784      |   |  | 11,775       |  
|Contingencies (Note 1)                                                         |  |             |   |  |              |  
|Stockholders Equity                                                           |  |             |   |  |              |  
|Preferred Stock, 20,000,000 shares authorized,
      $0.0001 par value;        |  |             |   |  |              |  
|None issued and outstanding                                                    |  |            |   |  |             |  
|Common Stock (Note 6), 160,000,000 shares authorized,
      $0.0001 par value; |  |             |   |  |              |  
|81,088,000 and 75,784,000 shares issued and outstanding,
      respectively    |  | 8,109       |   |  | 7,578        |  
|Additional Paid-in Capital                                                     |  | 1,019,691   |   |  | 386,222      |  
|Common Stock Subscribed                                                        |  |            |   |  | 2,500        |  
|Donated Capital (Note 5(a))                                                    |  | 22,500      |   |  | 11,250       |  
|Deficit Accumulated
      During the Exploration Stage                         |  | (378,530    | ) |  | (58,427      | )
|Total Stockholders Equity                                                     |  | 671,770     |   |  | 349,123      |  
|Total Liabilities
      and Stockholders Equity                               |  | 682,554     |   |  | 360,898      |  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

F-1

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)
  Statements of Operations
  (Expressed in US dollars)
  (Unaudited)

|                                                   |  | Accumulated from    |   |  | For the      |   |  | For the      |   |  | For the     |   |  | Period from         |  
|-------------------------------------------------- |  | ------------------- | - |  | ------------ | - |  | ------------ | - |  | ----------- | - |  | ------------------- | -
|                                                   |  | February 14, 2006   |   |  | Three months |   |  | Three months |   |  | Nine months |   |  | February 14, 2006   |  
|                                                   |  | (Date of Inception) |   |  | Ended        |   |  | Ended        |   |  | Ended       |   |  | (Date of Inception) |  
|                                                   |  | to August 31,       |   |  | August 31,   |   |  | August 31,   |   |  | August 31,  |   |  | to August 31,       |  
|                                                   |  | 2007                |   |  | 2007         |   |  | 2006         |   |  | 2007        |   |  | 2006                |  
|                                                   |  | $                   |   |  | $            |   |  | $            |   |  | $           |   |  | $                   |  
|                                                   |  |                     |   |  |              |   |  |              |   |  |             |   |  |                     |  
|Revenue                                            |  | 3,188               |   |  | 1,442        |   |  |             |   |  | 3,188       |   |  |                    |  
|Expenses                                           |  |                     |   |  |              |   |  |              |   |  |             |   |  |                     |  
|Depletion and depreciation                         |  | 4,339               |   |  | 1,607        |   |  | 188          |   |  | 3,774       |   |  | 188                 |  
|General and administrative (Note 5(a))             |  | 377,379             |   |  | 122,773      |   |  | 5,125        |   |  | 319,517     |   |  | 17,869              |  
|Total Expenses                                     |  | 381,718             |   |  | 124,380      |   |  | 5,313        |   |  | 323,291     |   |  | 18,057              |  
|Net Loss                                           |  | (378,530            | ) |  | (122,938     | ) |  | (5,313       | ) |  | (320,103    | ) |  | (18,057             | )
|Net Loss Per Share  Basic and Diluted             |  |                     |   |  |             |   |  |             |   |  | (0.01       | ) |  |                    |  
|Weighted Average Shares
      Outstanding (Note 6) |  |                     |   |  | 77,342,000   |   |  | 103,344,000  |   |  | 76,862,000  |   |  | 101,878,000         |  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

F-2

---

Laud Resources Inc. (formerly XTOL Energy Inc.) 
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|                                                                                  |  |             |   |  | Period from         |  
|--------------------------------------------------------------------------------- |  | ----------- | - |  | ------------------- | -
|                                                                                  |  | Nine months |   |  | February 14, 2006   |  
|                                                                                  |  | Ended       |   |  | (Date of Inception) |  
|                                                                                  |  | August 31,  |   |  | to August 31,       |  
|                                                                                  |  | 2007        |   |  | 2006                |  
|                                                                                  |  | $           |   |  | $                   |  
|                                                                                  |  |             |   |  |                     |  
|                                                                                  |  |             |   |  |                     |  
|Operating Activities                                                              |  |             |   |  |                     |  
|                                                                                  |  |             |   |  |                     |  
|Net loss                                                                          |  | (320,103    | ) |  | (18,057             | )
|                                                                                  |  |             |   |  |                     |  
|Adjustments to reconcile net loss to
      net cash used in operating activities: |  |             |   |  |                     |  
|Depletion and depreciation                                                        |  | 3,774       |   |  | 188                 |  
|Donated services
      and rent                                                   |  | 11,250      |   |  | 7,500               |  
|Stock-based compensation                                                          |  | 177,258     |   |  | 800                 |  
|                                                                                  |  |             |   |  |                     |  
|Changes in operating assets and liabilities                                       |  |             |   |  |                     |  
|Accrued revenue                                                                   |  | (880        | ) |  |                    |  
|Prepaid expenses                                                                  |  | (1,872      | ) |  | (3,138              | )
|Accounts payable                                                                  |  | (576        | ) |  | 332                 |  
|Accrued liabilities                                                               |  | (1,221      | ) |  |                    |  
|Due to related party                                                              |  | 806         |   |  |                    |  
|                                                                                  |  |             |   |  |                     |  
|Net Cash Used in Operating Activities                                             |  | (131,564    | ) |  | (12,375             | )
|                                                                                  |  |             |   |  |                     |  
|Investing Activities                                                              |  |             |   |  |                     |  
|Purchase of property and equipment                                                |  |            |   |  | (2,801              | )
|Purchase of oil and gas property                                                  |  |            |   |  | (34,038             | )
|                                                                                  |  |             |   |  |                     |  
|Net Cash Used in Investing Activities                                             |  |            |   |  | (36,839             | )
|                                                                                  |  |             |   |  |                     |  
|Financing Activities                                                              |  |             |   |  |                     |  
|                                                                                  |  |             |   |  |                     |  
|Proceeds from issuance of common stock                                            |  | 278,000     |   |  | 113,000             |  
|Stock issuance
      costs                                                        |  | (1,500      | ) |  |                    |  
|                                                                                  |  |             |   |  |                     |  
|Net Cash Provided
      by Financing Activities                                   |  | 276,500     |   |  | 113,000             |  
|                                                                                  |  |             |   |  |                     |  
|Increase in Cash                                                                  |  | 144,936     |   |  | 63,786              |  
|                                                                                  |  |             |   |  |                     |  
|Cash - Beginning of
      Period                                                  |  | 99,602      |   |  |                    |  
|                                                                                  |  |             |   |  |                     |  
|Cash - End of Period                                                              |  | 244,538     |   |  | 63,786              |  
|                                                                                  |  |             |   |  |                     |  
|                                                                                  |  |             |   |  |                     |  
|Supplemental Disclosures                                                          |  |             |   |  |                     |  
|Interest paid                                                                     |  |            |   |  |                    |  
|Income taxes paid                                                                 |  |            |   |  |                    |  

(The Accompanying Notes are an Integral Part of These Financial
  Statements)

F-3

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|1. | Nature of Operations and Continuance of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | The Company was incorporated in the State
        of Nevada on February 14, 2006 under the name XTOL Energy Inc. On October
        11, 2007, the Company changed its name to LAUD Resources Inc. The Company
        is an Exploration Stage Company, as defined by Statement of Financial
        Accounting Standard (“SFAS”) No.7 “Accounting and Reporting
        for Development Stage Enterprises”. The Company’s principal
        business is the acquisition and exploration of oil and gas properties
        located in the United States.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | These financial statements have been prepared
        on a going concern basis, which implies the Company will continue to realize
        its assets and discharge its liabilities in the normal course of business.
        The Company has not generated significant revenues since inception and
        has never paid any dividends and is unlikely to pay dividends or generate
        earnings in the immediate or foreseeable future. The continuation of the
        Company as a going concern is dependent upon the continued financial support
        from its shareholders, the ability of the Company to obtain necessary
        equity financing to continue operations, and the attainment of profitable
        operations. As at August 31, 2007, the Company has not generated significant
        revenue and has accumulated losses totaling $378,530 since inception.
        These factors raise substantial doubt regarding the Companys ability
        to continue as a going concern. These financial statements do not include
        any adjustments to the recoverability and classification of recorded asset
        amounts and classification of liabilities that might be necessary should
        the Company be unable to continue as a going concern.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | During the next twelve months, management
        plans to purchase additional non-operated interests in oil and gas properties,
        acquire a development stage exploration property and carry out an exploration
        program on acquired property. Management estimates expenditures of approximately
        $6,500,000 for acquisition and exploration costs on oil and gas interests
        and properties, and approximately $832,000 for other operational costs.
        The Company currently has no significant revenues and must rely on the
        sale of equity securities to fund operations. The Company will require
        significant additional financings in order to pursue exploration of any
        properties acquired. There is no assurance that the Company will be able
        to obtain the necessary financings to complete its objectives.                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

F-4

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|2. | Summary of Significant Accounting Policies
        (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | d)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | e)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | f)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | g)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | h)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               
|   |                                                               

F-5

---

Laud Resources Inc. (formerly XTOL Energy Inc.) 
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|2. | Summary of Significant Accounting Policies
        (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | i)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | j)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | k)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | l)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | m)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | n)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|   | o)                                                            
|   |                                                               
|   |                                                               

F-6

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

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

F-7

---

Laud Resources Inc. (formerly XTOL Energy Inc.) 
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|2. | Summary of Significant Accounting Policies
        (continued)
|-- | --------------------------------------------------------------
|   |                                                               
|   | o)                                                            
|   |                                                               
|   |                                                               
|   |                                                               
|3. | Property and Equipment                                        

| |                   |  |       |  |  |              |  |  | August 31,   |  |  | November 30, | 
| | ----------------- |  | ----- |  |  | ------------ |  |  | ------------ |  |  | ------------ | 
| |                   |  |       |  |  |              |  |  | 2007         |  |  | 2006         | 
| |                   |  |       |  |  | Accumulated  |  |  | Net Carrying |  |  | Net Carrying | 
| |                   |  | Cost  |  |  | Depreciation |  |  | Value        |  |  | Value        | 
| |                   |  | $     |  |  | $            |  |  | $            |  |  | $            | 
| |                   |  |       |  |  |              |  |  |              |  |  |              | 
| | Computer hardware |  | 3,391 |  |  | 1,413        |  |  | 1,978        |  |  | 2,826        | 

|4. | Oil and Gas Property
|-- | --------------------

| |                             |  | August 31,   |   |  | November 30, | 
| | --------------------------- |  | ------------ | - |  | ------------ | 
| |                             |  | 2007         |   |  | 2006         | 
| |                             |  | Net Carrying |   |  | Net Carrying | 
| |                             |  | Value        |   |  | Value        | 
| |                             |  | $            |   |  | $            | 
| |                             |  |              |   |  |              | 
| | Proved Properties, Oklahoma |  |              |   |  |              | 
| |                             |  |              |   |  |              | 
| | Acquisition Costs           |  | 34,038       |   |  | 34,038       | 
| | Depletion                   |  | (2,926       | ) |  |             | 
| |                             |  |              |   |  |              | 
| | Net Carrying Value          |  | 31,112       |   |  | 34,038       | 

|   | On August 1, 2006, the Company acquired a
        2.34% non operating interest in three oil and gas wells located in Oklahoma
        for $34,038.                                                                                            
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                               
|5. | Related Party Transactions                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                               
|   | a)                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                               
|   | b)                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                               
|6. | Common Stock                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                               
|   | On October 1, 2007, the Company effected a 2:1 forward stock
      split of the authorized, issued and outstanding common stock. All share
      amounts have been retroactively adjusted for all periods presented. Refer
      to Note 9(a).
|   |                                                                                                                                                                                                                                               
|   | a)                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                               
|   | b)                                                                                                                                                                                                                                            

F-8

---

Laud Resources Inc. (formerly XTOL Energy Inc.)
  (An Exploration Stage Company)
  Statements of Cash Flows
  (Expressed in US dollars)
  (Unaudited)

|6. | Common Stock (continued)
|-- | ------------------------
|   |                         
|   | c)                      
|   |                         
|   | d)                      
|   |                         
|   | e)                      
|   |                         
|   | f)                      
|   |                         
|   | g)                      
|   |                         
|   | h)                      
|   |                         
|   | i)                      
|   |                         
|   |                         
|7. | Stock Options           

On February 15, 2006, the Company granted 20,000,000 stock options
  to the directors with an exercise price of $0.00005 per share and expiring on
  February 15, 2011. These stock options were fully vested as of the grant date.
  The fair value for these stock options was estimated at the date of grant using
  the Black-Scholes option-pricing model assuming an expected life of 5 years,
  a risk-free rate of 4.51%, an expected volatility of 97%, and a 0% dividend
  yield. The weighted average fair value of stock options granted was $0.00005
  per share. As at August 31, 2007, there were no unvested stock options.

A summary of the Companys stock option activity is as follows:

| |                                |  |            |  |  | Weighted |  |  | Weighted     | 
| | ------------------------------ |  | ---------- |  |  | -------- |  |  | ------------ | 
| |                                |  |            |  |  | Average  |  |  | Average      | 
| |                                |  |            |  |  | Exercise |  |  | Remaining    | 
| |                                |  | Number of  |  |  | Price    |  |  | Contractual  | 
| |                                |  | Options    |  |  | $        |  |  | Life (years) | 
| |                                |  |            |  |  |          |  |  |              | 
| | Outstanding, November 30, 2006 |  | 20,000,000 |  |  | 0.00005  |  |  |              | 
| |                                |  |            |  |  |          |  |  |              | 
| | Granted                        |  |           |  |  |         |  |  |              | 
| |                                |  |            |  |  |          |  |  |              | 
| | Outstanding, August 31, 2007   |  | 20,000,000 |  |  | 0.00005  |  |  | 3.46         | 
| |                                |  |            |  |  |          |  |  |              | 
| | Exercisable, August 31, 2007   |  | 20,000,000 |  |  | 0.00005  |  |  | 3.46         | 

F-9

---

Laud Resources Inc. (formerly XTOL Energy Inc.) 
  (An Exploration Stage Company)
  Notes to the Financial Statements
  (Expressed in US dollars)
  (Unaudited)

|8. | Share Purchase Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | On February 7, 2007, the Company issued 3,000 share purchase warrants
      at a fair value of $248 (recorded as a share issuance cost) exercisable
      at $0.25 per share until February 7, 2008. The fair value of the share purchase
      warrants was estimated at the date of issue using the Black-Scholes option-pricing
      model assuming an expected life of 1 year, a risk-free rate of 4.81%, an
      expected volatility of 81%, and a 0% dividend yield. The weighted average
      fair value of the share purchase warrants issued was $0.25 per share.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | The Company also issued 92,400 share purchase warrants pursuant to private
      placements of common shares. Refer to Notes 6(f) and 6(g).                                                                                                                                                                                                                                                                                                                                                                                                                                  

The following table summarizes the continuity
  of the Companys share purchase warrants:

| |                            |  |           |  |  | Weighted       | 
| | -------------------------- |  | --------- |  |  | -------------- | 
| |                            |  |           |  |  | Average        | 
| |                            |  | Number of |  |  | Exercise Price | 
| |                            |  | Warrants  |  |  | $              | 
| |                            |  |           |  |  |                | 
| | Balance, November 30, 2006 |  | .         |  |  |               | 
| |                            |  |           |  |  |                | 
| | Issued                     |  | 95,400    |  |  | 0.25           | 
| |                            |  |           |  |  |                | 
| | Balance, August 31, 2007   |  | 95,400    |  |  | 0.25           | 

As at August 31, 2007, the following
  share purchase warrants were outstanding:

ExerciseNumber of
      PriceWarrants
      $
      Expiry Date3,000
      0.25
      February 7, 200892,400
      0.25
      June 4, 200995,400




|9. | Subsequent Events                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|a) | On October 1, 2007, the Company effected a 2:1 forward stock split of
      the authorized, issued and outstanding common stock. As a result, the authorized
      share capital increased from 80,000,000 shares of common stock with a par
      value of $0.0001 to 160,000,000 shares of common stock with a par value
      of $0.0001. All share amounts have been retroactively adjusted for all periods
      presented.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|b) | On October 11, 2007, the Company changed its name to LAUD Resources Inc.                                                                                                                                                                                                                                                                                                                                                        

F-10

---

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION/ PLAN OF OPERATIONS

Forward Looking Statements

This Quarterly Report on Form 10-QSB contains forward-looking
statements that involve risks and uncertainties. These statements relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology including, "could" "may",
"will", "should", "expect", "plan", "anticipate", "believe", "estimate",
"predict", "potential" and the negative of these terms or other comparable
terminology. These statements are only predictions. Actual events or results may
differ materially.

While these forward-looking statements, and any assumptions
upon which they are based, are made in good faith and reflect our current
judgment regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested in this Quarterly Report.

Introduction

XTOL Energy Inc. (“we”, “us”) is a start
  up oil and gas exploration company. We have incurred losses since inception,
  have been issued a going concern opinion by our auditors and rely upon the sale
  of our securities to fund operations. We have only recently begun operations.
  In February 2007 we received our first revenues from our 2.34% non operated
  interest in three operating wells in Oklahoma.

We were incorporated as a Nevada company on February 14, 2006.
We are also extra-provincially registered in British Columbia, Canada. We do not
have any subsidiaries. Our principal office is located at Suite 600  595 Howe
Street, Vancouver, British Columbia, Canada, V6C 2T5. Our telephone number is
(604) 662-3910. Our fiscal year end is November 30.

We intend to build our business through the acquisition of
producing oil and natural gas wells, interests and leases. Our strategy is to
combine the secure and reliable revenue source of non-operated interest from
producing oil wells with the potential of an oil and gas exploration project.

Our common stock became eligible for trading on the FINRA-operated
  Over-the-Counter Bulletin Board (“OTCBB”) on Monday, July 9, 2007.
  Our shares trade under the ticker symbol “LAUD.OB”.

The OTCBB is a regulated quotation service that displays real-time
  quotes, last-sale prices and volume information for over-the-counter equity
  securities. OTCBB securities are traded by a community of market makers that
  enter quotes and trade through a sophisticated computer network. Information
  on the OTCBB can be found at www.otcbb.com.

On October 11, 2007 we changed our name to LAUD Resources Inc.

3

---

Overview

We are engaged in the acquisition of interests and leases of
producing oil and natural gas wells. Our plan of operations for the next twelve
months is to create revenue from non-operated interests of producing oil and gas
wells and to acquire an interest in, and further develop a development stage oil
and gas exploration project.

We have only recently begun our current operations, have earned
  nominal revenues and have accumulated net loss of $378,530 from February 14,
  2006 (date of inception) to August 31, 2007.

We have acquired a 2.34% interest in three wells in Kingfisher
County, Oklahoma. We do not yet have any exploration projects. We need
additional capital to carry out our current business plan. We also anticipate
that we will require additional financing in order to pursue full exploration of
our acquired claims. We may not have sufficient financing to undertake our
current and future business and there is no assurance that we will be able to
obtain the necessary financing.

We are a start-up stage corporation with limited operations and
limited revenues from our business operations. Our auditors have issued us with
a going concern opinion. This means that our auditors believe there is
substantial doubt that we can continue as an ongoing business for the next
twelve months unless we obtain additional capital to pay our bills. Our only
source of cash at this time is investments by others in our company. We must
raise cash to implement our plan of operation.

Results of Operations

We began to earn nominal revenues in February 2007 from our
non-operated working interests in three producing wells. We plan to purchase
additional non-operated working interests in existing leases. However, we
anticipate that we will incur substantial losses over the next two years.

For the three months ended August 31, 2007, we generated revenues
  of $1,442 compared to no revenues for the same period in 2006. From our inception
  on February 14, 2006 to August 31, 2007 we accumulated a net loss of $378,530.
  For the three months ended August 31, 2007 we incurred net loss of $122,938
  compared to our net loss of $5,313 for the same period in 2006. As of August
  31, 2007, we had $244,538 in our bank accounts compared to $99,602 as at November
  30, 2006.

We have accumulated expenses of $381,718 from February 14, 2006
  (date of inception) to August 31, 2007 and incurred expenses of $323,291 for
  the nine months ended August 31, 2007. Our total expenses were $124,380 for
  the three months ended August 31, 2007 compared to $5,313 for the same period
  in 2006.

4

---

Our accumulated expenses from February 14, 2006 (date of inception)
  to August 31, 2007 included $4,339 in depletion and depreciation and $377,379
  in general and administrative expenses. Of our $4,339 accumulated depletion
  and depreciation expenses, $3,774 was accumulated during the nine month ended
  August 31, 2007 including $1,607 during the three months ended August 31, 2007.
  Of our accumulated general and administrative expenses of $377,379, $319,517
  was incurred during the nine months ended August 31, 2007 including $122,773
  during the three months ended August 31, 2007.

Our general and administrative expenses consist of professional
fees, management and consulting fees, bank charges, travel, meals and
entertainment, rent, foreign exchange, office maintenance, communication
expenses (cellular, internet, fax and telephone), courier, postage costs and
office supplies. Our professional fees include legal, accounting and auditing
fess.

On February 15, 2006 we issued options to acquire 5,000,000
shares at $0.0001 per share to Gary Chayko, our President and Chief Executive
Officer; options to acquire 2,500,000 shares at $0.0001 per share to Jordan
Shapiro, our Chief Financial Officer; and options to acquire 2,500,000 shares at
$0.0001 per share to Hudson Capital, a company owned by Jordan Shapiro. The
options were issued as compensation for their services, and we do not intend to
issue more options to them in the next two years. The options vested
immediately, and are valid for a period of five years from the date of grant. We
believe that it is necessary to enter into option agreements in order to retain
the services of Mr. Chayko and Mr. Shapiro.

On July 24, 2007 we also issued 2,000,000 common shares to Norman
  Meier pursuant to a Consulting Agreement. Dr. Meier will serve as our Vice President
  of Corporate Development and will assist us in business development, implementation
  of our business plan, introduction to new acquisition targets, increasing our
  revenue and shareholder base and providing contacts in the mining industry.

Plan of Operations

We have limited operations and are solely dependent on the
funds raised through our equity or debt financing. As of August 31, 2007, we had
$244,538 in our bank accounts.

For the next twelve months (beginning November 2007) we intend
to:

- Complete the purchase of additional non-operating interests in producing
  wells;
- Complete the purchase of exploration rights to a development stage oil and
  gas exploration project;
- Plan and carry out a full exploration program on a potential advanced
  stage oil and gas property; and
- Complete private and/or public financing to cover the cost of acquiring
  additional exploration projects and non-operated interests in existing leases.

Currently, we are reviewing additional non-performing leases in
Oklahoma and additional working interests in Oklahoma, Texas, Wyoming and
Canada.

5

---

We expect to require approximately $7,332,000 in financing to
  continue our planned operation and exploration over the next year. Our planned
  acquisition and exploration expenditures for oil and gas interests and properties
  over the next twelve months (beginning November 2007) are summarized as follows:

Description
      Potential
      Estimatedcompletion date
      Expenses($)Retain a full-time engineer, a
      March 1, 2008
    400,000full-time land specialist and a full-timegeologistPurchase non-operated working
      March 1, 2008
    3,000,000interests in existing leasesAcquire a development stage
      March 1, 2008
    1,100,000exploration projectDevelop and carry out a
      January 1, 2008
    2,000,000preliminary exploration program
      April 30, 2009on
      an acquired propertyTotal
    
    6,500,000


Our other planned operational expenses for the next twelve
months (beginning November 2007) are summarized as follows:

Description
      Potential
      Estimatedcompletion date
      Expenses($)Select and appoint a new
      March 1, 2008
    10,000BoardmemberRetain a new President and
      March 1, 2008
    250,000CEOand
      CFORaise additional private or
      March 1, 2008
    100,000publicequity (legal, accounting andmarketing fees)General and administrative
    12 months
    77,000expensesProfessional fees (legal,
    12 months
    130,000accounting and auditing fees)Consulting and employee fees
    12
      months
    220,000Marketing expenses
    12
      months
    45,000Total
    
    832,000


6

---

The general and administrative expenses for the year will
consist primarily of transfer agent fees, management fees, investor relations
and general office expenses. The professional fees for the audit and legal work
are related to our regulatory filings throughout the year,

We had cash in the amount of $244,538 as of August 31, 2007.
  Based on our planned expenditures, we require a minimum of approximately $7,087,462
  (a total of approximately $7,332,000 less our cash of $244,538) to proceed with
  our business plan over the next twelve months. If we achieve less than the full
  amount of financing that we require, we will not be able to carry out our full
  business plan or we will be forced to proceed with scaled back business plans
  based on our available financial resources.

For the following two years, we anticipate that we will incur
substantial losses. We do not have enough capital to carry out our business
plan. Even if we carry out exploration activities on the properties we plan to
acquire, this will not guarantee that the properties will contain commercially
exploitable quantities of oil and gas. Such exploration projects will be
directed by our management and will be supervised by Gary Chayko and Jordan
Shapiro, our President, CEO and CFO. If we retain a new President, CEO and CFO,
the new officer or officers will manage our operations and supervise our planned
exploration projects.

Due to our limited finances, there is no assurance that we will
be able to acquire an interest in a property that merits further exploration. If
we were to acquire an interest in a property, then our plan would be to conduct
resource exploration of the property. In any event, we anticipate that our
acquisition of a property and any exploration activities that we would undertake
will be subject to us achieving additional financing.

Even though we plan to raise capital by equity or debt
financing, we believe that debt financing may not be a viable alternative for
funding our operations as we do not have tangible assets to secure any debt
financing. We anticipate that additional funding will be in the form of equity
financing from the sale of our common stock. However, we do not have any
financing arranged and we cannot provide investors with any assurance that we
will be able to raise sufficient funds from the sale of our common stock to fund
our operation and exploration activities. In the absence of such financing, we
will not be able to purchase non-operated working interest in existing leases,
acquire a development stage exploration project, or carry out a preliminary
exploration program on an acquired property. Even if we are successful in
obtaining equity financing to fund our operation and exploration, there is no
assurance that we will obtain the funding necessary to pursue any advanced
exploration of our future properties following the completion of preliminary
exploration. If we do not continue to obtain additional financing, we will be
forced to abandon our properties, our plan of operation and our exploration.

Modifications to our plans will be based on many factors,
including: results of exploration, assessment of data, weather conditions,
exploration costs, the price of oil and gas and available capital. Further, the
extent, to which we carry out our exploration programs, is dependent upon the
amount of financing available to us.

7

---

We may consider entering into joint venture arrangements to
provide the required funding to pursue drilling and advanced exploration of our
potential properties. If we enter into a joint venture arrangement, we would
likely have to assign a percentage of our interest in our projects to the joint
venture partner. The assignment of the interest would be conditional upon
contribution by the joint venture partner of capital to enable the advanced
exploration on the properties to proceed. There is no assurance that any third
party would enter into a joint venture agreement with us in order to fund
exploration of our potential projects.

Liquidity and Capital Resources

As of August 31, 2007, we had cash of $244,538 compared to $99,602
  in cash at November 30, 2006. At August 31, 2007, we had a working capital surplus
  of $638,680 compared to $312,259 at November 30, 2006. Our accumulated deficit
  was ($378,530) as at August 31, 2007 compared to ($58,427) as at November 30,
  2006.

Our net loss of ($378,530) from February 14, 2006 (date of inception)
  to August 31, 2007 was funded by our equity financing. During the nine month
  ended August 31, 2007, we raised $276,500 in equity financing.

On August 1, 2006, we acquired a 2.34% non-operated interest
  in three wells in Oklahoma and completed our obligation to make a cash payment
  of $34,038. On November 29, 2006 we engaged Sedona AG, a Swiss company, to provide
  investment and financial consulting services to us. We issued 6,000,000 common
  shares as consideration pursuant to the consulting agreement. On July 24, 2006,
  we entered into a consulting agreement with Cleveland Maynard Welsh to provide
  us geological consulting services. We issued Mr. Welsh 10,000 common shares
  in January 2007 pursuant to this agreement. We paid him $2,500 per month as
  consideration for his geological consulting services. On December 1, 2006, we
  entered into an advisory board agreement with Mr. Welsh to replace the agreement
  dated July 24, 2006. Under the new agreement, we committed to pay him $400 for
  every actual day Mr. Welsh provides us geological services and issue him 10,000
  common shares annually. On April 28, 2007, we issued 10,000 more common shares
  to Mr. Welsh as his annual payment under this new agreement.

As of August 31, 2007, we have enough money in our bank
accounts to cover all of our required payments on our consulting agreements.

We did not use net cash for investing activities during the nine
  months ended August 31, 2007. We used net cash of $131,564 in operating activities
  for the nine months ended August 31, 2007. For the period from February 14,
  2006 (Date of Inception) to August 31, 2006, we used $12,375 in cash in operating
  activities. We received net cash of $276,500 from the issuance of our common
  stock during the nine months ended August 31, 2007 compared to $113,000 during
  the period from February 14, 2006 (Date of Inception) to August 31, 2006.

8

---

Our monthly cash requirement during the nine months ended August
  31, 2007 was approximately $14,618. As of August 31, 2007, we had cash of $224,538.
  However, we anticipate that after November 2007 our monthly expenses will increase
  to $611,000, which includes $32,000 monthly for general and administrative expenses,
  $52,000 monthly for consulting and employee expenses, $19,000 monthly for professional
  fees, $340,000 for acquisition of non-operated working interests and an exploration
  project and $168,000 monthly for exploration costs.

Of the $7,332,000 we need for the next 12 months, we had $224,538
  in cash as of August 31, 2007. We intend to raise the balance of our cash requirements
  for the next 12 months ($7,087,462) from private placements, shareholder loans
  or possibly a registered public offering (either self-underwritten or through
  a broker-dealer) within the next few months. If we are unsuccessful in raising
  enough money through future capital raising efforts, we may review other financing
  possibilities such as bank loans. At this time we do not have any commitments
  from any broker-dealer to provide us with financing.

We registered, on a Form SB-2, declared effective on September
17, 2007, a total of 14,701,500 shares of common stock, of which 1,500 were
underlying warrants and options. All of these shares were previously issued to
the selling shareholders.

There is no assurance that any financing will be available or
if available, on terms that will be acceptable to us. We also may need
additional financing to carry out our business plan.

Obtaining additional financing will be subject to a number of
  factors including market conditions, investor acceptance of our business plan,
  and investor sentiment. These factors may make the timing, amount, terms and
  conditions of additional financing unattractive or unavailable to us. If we
  cannot raise at least $7,087,462, we will have to significantly reduce our spending,
  delay or cancel planned activities or substantially change our current corporate
  structure. In such an event, we intend to implement expense reduction plans
  in a timely manner. However, these actions would have material adverse effects
  on our business, revenues, operating results, and prospects, resulting in a
  possible failure of our business. We may need to obtain additional financing
  which may not be available, which could cause us to cease operations.

Going Concern

We have not attained profitable operations and are dependent
upon obtaining financing to pursue any extensive exploration activities. For
these reasons our auditors stated in their report that they have substantial
doubt we will be able to continue as a going concern.

9

---

Future Financings

We will require additional financing of $7,087,462 in order to
  proceed with our full business plan. We plan to conduct private placements or
  a public offering in order to raise the funds necessary to pursue our plan of
  operations. Issuances of additional shares will result in dilution to our existing
  shareholders. We currently do not have any arrangements in place for the completion
  of any private placement financings or a public offering and there is no assurance
  that we will be successful in completing any equity financings.

We are currently offering common shares for sale through
private placements pursuant to Regulation S of the Securities Act to non US
persons.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to stockholders.

Critical Accounting Policies

Our financial statements are impacted by the accounting
policies used and the estimates and assumptions made by management during their
preparation. A complete summary of these policies is included in Note 2 of the
notes to our financial statements. We have identified below the accounting
policies that are of particular importance in the presentation of our financial
position, results of operations and cash flows and which require the application
of significant judgment by management.

Oil and Gas Properties

We utilize the full-cost method of accounting for petroleum and
natural gas properties. Under this method, we capitalize all costs associated
with acquisition, exploration and development of oil and natural gas reserves
into the full cost pool on a country by country basis. When we obtain proven oil
and gas reserves, capitalized costs will be depleted on the units-of-production
method using estimates of proved reserves. The costs of unproved properties are
not amortized until it is determined whether or not proved reserves can be
assigned to the properties. Until such determination is made we assess annually
whether impairment has occurred, and include in the amortization base drilling
exploratory dry holes associated with unproved properties.

10

---

We apply a ceiling test to the capitalized cost in the full
cost pool. The ceiling test limits such cost to the estimated present value,
using a ten percent discount rate, of the future net revenue from proved
reserves, based on current economic and operating conditions. Specifically, we
compute the ceiling test so that capitalized cost, less accumulated depletion
and related deferred income tax, do not exceed an amount (the ceiling) equal to
the sum of: (A) The present value of estimated future net revenue as of the date
of the latest balance sheet presented, less estimated future expenditures; plus
(B) the cost of property not being amortized; plus (C) the lower of cost or
estimated fair value of unproven properties included in the costs being
amortized; less (D) income tax effects related to differences between the book
and tax basis of the property.

For unproven properties, we exclude from capitalized costs
subject to depletion, all costs directly associated with the acquisition and
evaluation of the unproved property until it is determined whether or not proved
reserves can be assigned to the property. Until such a determination is made, we
assess the property at least annually to ascertain whether impairment has
occurred. In assessing impairment we consider factors such as historical
experience and other data such as primary lease terms of the property, average
holding periods of unproved property, and geographic and geologic data. We add
the amount of impairment assessed to the cost to be amortized subject to the
ceiling test.

Stock Based Compensation

In accordance with SFAS No. 123R Share Based Payments,
we account for share-based payments and stock options using the fair value
method. We have granted stock options to directors. All transactions in which
goods or services are the consideration received for the issuance of equity
instruments are accounted for based on the fair value of the consideration
received or the fair value of the equity instrument issued, whichever is more
reliably measurable. Equity instruments issued to employees and the cost of the
services received as consideration are measured and recognized based on the fair
value of the equity instruments issued.

Inflation

The effect of inflation on the Company's revenue and operating
results was not significant.

Audit Committee

The functions of the audit committee are currently carried out
by our Board of Directors. Our Board of Directors has determined that we do not
have an audit committee financial expert on our Board of Directors carrying out
the duties of the audit committee. Our Board of Directors has determined that
the cost of hiring a financial expert to act as a director of XTOL and to be a
member of the audit committee or otherwise perform audit committee functions
outweighs the benefits of having a financial expert on the audit committee.

11

---

ITEM 3. CONTROL AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, we carried
out an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures as of August 31, 2007, being the date of our
first quarter end covered by this Quarterly Report. This evaluation was carried
out under the supervision and with the participation of our Chief Executive
Officer and Chief Financial Officer. Upon that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that our disclosure controls and
procedures are effective in timely alerting management to material information
relating to us required to be included in our periodic SEC filings.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission's rules and forms.

During our quarter ended August 31, 2007, there were no changes
in our internal control over financial reporting that have materially affected,
or are reasonably likely to affect, our internal control over financial
reporting.

The term "internal control over financial reporting" is defined
as a process designed by, or under the supervision of, the registrant's
principal executive and principal financial officers, or persons performing
similar functions, and effected by the registrant's board of directors,
management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles and includes those policies and procedures that:

(1)
    Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      the assets of the registrant;(2)
    Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures of the registrant are being made only in
      accordance with authorizations of management and directors of the
      registrant; and(3)
    Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of the
      registrant's assets that could have a material effect on the financial
      statements.


PART II  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not aware of any pending legal proceedings which involve
XTOL or any of its properties or subsidiaries.

12

---

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE SECURITY
HOLDERS

None.

ITEM 5. OTHER INFORMATION:

On October 11, 2007 we filed a Certificate of Amendment with
  the Nevada Secretary of State changing our name to LAUD Resources Inc. As of
  the date of this filing we have not yet received confirmation of our new ticker
  symbol.

ITEM 6. EXHIBITS

|Exhibit | **Exhibit**                                                                                                       
|------- | ------------------------------------------------------------------------------------------------------------------
|Number  | **Description**                                                                                                   
|        |                                                                                                                   
|3.1     | Certificate
        of Amendment as filed with the Nevada Secretary of State on October 11,
        2007          
|        |                                                                                                                   
|31.1    | Certification
        of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002
|        |                                                                                                                   

|31.2 | Certification of Chief Financial
        Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                       
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                  
|32.1 | Certification of Chief Executive
        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002
|     |                                                                                                                                                                  
|32.2 | Certification of Chief Financial
        Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002

13

---

SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                       | XTOL Energy Inc.                            
|---------------------- | --------------------------------------------
|                       | (Registrant)                                
|                       |                                             
|                       | /s/ Gary Chayko                             
|Date: October 22, 2007 | Gary Chayko                                 
|                       | Director, President, Chief Executive Officer
|                       |                                             
|                       | /s/ Jordan Shapiro                          
|Date: October 22, 2007 | Jordan Shapiro                              
|                       | Director, Chief Financial Officer, Principal
|                       | Accounting Officer, Secretary, Treasurer    

14

---