UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-Q





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





For the quarter period ended December 31, 2010





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





For the transition period form                                                       toCommission File number    333-145879





SONA RESOURCES, INC.


(Exact name of registrant as specified in its charter)





Nevada
68-0676667              .(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)





2/41 Timurty Om Housing Society, Sion, Chunnabhatti, Mumbai, India, 400022(Address of principal executive offices)





91 9820600 700(Registrant’s telephone number, including area code)





N/A(Former name, former address and former fiscal year, if changed since last report)





Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X] No





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See definition of “large accelerated filer”, “accelerated filer” and “small reporting company” Rule 12b-2 of the Exchange Act.





Large accelerated filer   [   ]                                                                                                           Accelerated filer                            [   ]





Non-accelerated filer     [   ]  (Do not check if a small reporting company)                            Small reporting company  [X]





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 PROCEDING FIVE YEARS





Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 after the distribution of securities subsequent to the distribution of securities under a plan confirmed by a court.  Yes□No □





APPLICABLE ONLY TO CORPORATE ISSUERS





Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:





February 1, 2011: 104,220,000 common shares






-1-









PageNumberPART 1.
FINANCIAL INFORMATIONITEM 1.
Financial Statements (unaudited)
3Balance Sheet as at December 31, 2010 and September 30, 2010
4Statement of Operations

For the three months ended December 31, 2010 and 2009 and for the period January 18, 2007 (Date of Inception) to

December 31, 2010
5Statement of Cash Flows

For the three months ended December 31, 2010 and 2009 and for the period January 18, 2007 (Date of  Inception) to

December 31, 2010
6Notes to the Financial Statements.
7ITEM 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
11ITEM 3.
Quantitative and Qualitative Disclosures about Market Risk
19ITEM 4.
Controls and Procedures
19ITEM 4T.
Controls and Procedures
20PART 11.
OTHER INFORMATION
20ITEM 1.
Legal Proceedings
20ITEM 1A.
Risk Factors
20ITEM 2.
Unregistered Sales of Equity Securities and Use of Proceeds
26ITEM 3.
Defaults Upon Senior Securities
26ITEM 4.
Submission of Matters to a Vote of Security Holders
26ITEM 5.
Other Information
26ITEM 6.
Exhibits
26SIGNATURES.
27











-2-











PART 1 – FINANCIAL INFORMATION




ITEM 1.   FINANCIAL STATEMENTS




The accompanying balance sheets of Sona Resources, Inc. (Pre-exploration stage company) at December 31, 2010 (with comparative figures as at September 30, 2010) and the statement of operations for the three months ended December 31, 2010 and 2009 and for the period from January 18, 2007 (date of inception) to December 31, 2010 and the statement of cash flows for the three months ended December 31, 2010 and 2009 and for the period from January 18, 2007 (date of inception) to December 31, 2010 have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America.  In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.





Operating results for the three months ended December 31, 2010 are not necessarily indicative of the results that can be expected for the year ending September 30, 2011.











-3-










SONA RESOURCES, INC.


(Pre-exploration Stage Company)





BALANCE SHEETS





Dec. 31,2010
Sept. 30,2010(Unaudited)ASSETSCURRENT ASSETSCash
$    992
$    1,010Total Current Assets
$     992
$    1,010LIABILITIES AND STOCKHOLDERS’ DEFICIENCYCURRENT LIABILITIESAccounts payable
$   23,694
$     20,918Advances from related parties
25,167
22,337Total Current Liabilities
48,861
43,255STOCKHOLDERS’ DEFICIENCYCommon stock250,000,000 shares authorized, at $0.001 par value;104,220,000 shares issued and outstanding
104,220
104,220Capital in excess of par value
(22,545)
(22,545)Deficit accumulated during the pre-exploration stage
(129,544)
(123,920)Total Stockholders’ Deficiency
(47,869)
(42,245)$  992
$       1,010











The accompanying notes are an integral part of these unaudited financial statements.














-4-














SONA RESOURCES, INC.


(Pre-exploration Stage Company)





STATEMENT OF OPERATIONS





For three months ended December 31, 2010 and 2009 and for the period January 18, 2007 (date of inception) to December 31, 2010





(Unaudited)





Three monthsended

December 31,2010
Three monthsended

December 31,2009
FromJanuary18, 2007

(date ofinception) to

December 31,2010REVENUES
$    -
$   -
$   -EXPENSESAccounting and audit
4,430
1,550
30,713Bank charges and interest
18
44
466Consulting
-
-
17,500Edgarizing
504
472
6,697Exploration costs
-
-
5,000Filing fees
-
-
30Impairment on mineral claim acquisition
-
-
5,000Incorporation costs
-
-
720Legal
-
-
7,838Management fees
-
3,000
38,000Office
672
158
2,831Rent
-
600
7,600Telephone
-
300
3,800Transfer agent’s fees
-
-
3,349NET LOSS FROM OPERATIONS
$      (5,624)
$   (6,124)
$  (129,544)NET LOSS PER COMMON SHAREBasic and diluted
$   (0.00)
$    (0.00)WEIGHTED AVERAGE OUTSTANDING SHARESBasic and diluted
104,220,000
104,220,000





The accompanying notes are an integral part of these unaudited financial statements.








-5-








SONA RESOURCES, INC.


(Pre-exploration Stage Company)





STATEMENT OF CASH FLOWS





For the three months ended December 31, 2010 and 2009 and for the period January 18, 2007 (date of inception) to December 31, 2010





(Unaudited)





Three monthsended

Dec. 31, 2010
Three monthsended

Dec. 31, 2009
From January 18,2007

(date of inception)

to Dec. 31, 2010CASH FLOWS FROM OPERATINGACTIVITIES:Net loss
$     (5,624)
$   (6,124)
$  (129,544)Adjustments to reconcile net loss to net cash

provided by operating activities:Capital contributions – noncash expenses
-
3,900
49,400Changes in accounts payable
2,776
(478)
23,693Net Cash  Provided (Used) in Operations
(2,848)
(2,702)
(56,451)CASH FLOWS FROM INVESTINGACTIVITIES:
-
-
-CASH FLOWS FROM FINANCINGACTIVITIESProceeds from loan from related party
2,830
2,658
25,167Proceeds from issuance of common

Stock
-
-
32,2762,830
2,658
57,443Net (Decrease) Increase in Cash
(18)
(44)
992Cash at Beginning of Year
1,010
377
-CASH AT END OF YEAR
$       992
$      333
$  992





SUPPLEMENTAL DISCLOSURE OFNONCASH FINANCING ACTIVITIESCapital contributions – noncash expenses
$  -
$3,900
$ 49,400








The accompanying notes are an integral part of these unaudited financial statements











-6-














SONA RESOURCES, INC.


(Pre-exploration Stage Company)


NOTES TO FINANCIAL STATEMENTS


December 31, 2010





(Unaudited)





1.           ORGANIZATION





The Company, Sona Resources, Inc., was incorporated under the laws of the State of Nevada on January 18, 2007 with the authorized capital stock of 250,000,000 shares at $0.001 par value.





The Company was organized for the purpose of acquiring and developing mineral properties.  At the report date mineral claims, with unknown reserves, had been acquired.  The Company has not established the existence of a commercially minable ore deposit and therefore has not reached the exploration stage and is considered to be in the pre-exploration stage.





2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Accounting Methods





The Company recognizes income and expenses based on the accrual method of accounting.





Dividend Policy





The Company has not yet adopted a policy regarding payment of dividends.





Basic and Diluted Net Income (loss) Per Share





Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding.   Diluted net income (loss) per share amounts are computed using the weighted average number of common and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights unless the exercise becomes antidulutive and then only the basic per share amounts are shown in the report.





Evaluation of Long-Lived Assets





The Company periodically reviews its long term assets and makes adjustments, if the carrying value exceeds fair value.





Income Taxes





The Company utilizes the liability method of accounting for income taxes.  Under the liability method deferred tax assets and liabilities are determined based on differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to be reversed.   An allowance against deferred tax assets is recorded, when it is more likely than not, that such tax benefits will not be realized.





On December 31, 2010 the Company had a net operating loss carry forward of $129,544 for income tax purposes.  The tax benefit of approximately $38,900 from the loss carry forward has been fully offset by a valuation reserve because the future tax benefit is









-7-







SONA RESOURCES, INC.





(Pre-exploration Stage Company)


NOTES TO FINANCIAL STATEMENTS


December 31, 2010





(Unaudited)





2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued





Income Taxes- Continued





undeterminable since the Company is unable to establish a predictable projection of operating profits for future years.  Losses will begin to expire in 2027.





Impairment of Long-lived Assets





The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.  The assets are subject to impairment consideration under ASC 360-10-35-17 if events or circumstances indicate that their carrying amounts might not be recoverable.   When the Company determines that an impairment analysis should be done, the analysis will be performed using rules of ASC 930-360-35, Asset Impairment, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets.





Foreign Currency Translations





Part of the transactions of the Company were completed in Canadian dollars and have been translated to US dollars as incurred, at the exchange rate in effect at the time, and therefore, no gain or loss from the translation is recognized.  The functional currency is considered to be US dollars.





Revenue Recognition





Revenue from the sale of minerals will be recognized when a contract is in place and minerals are delivered to the customer.





Mineral claim acquisition and exploration costs





The cost of acquiring mineral properties or claims is initially capitalized and then tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Mineral exploration costs are expensed as incurred.





Advertising and Market Development





The company expenses advertising and market development costs as incurred.





Financial Instruments





The carrying amounts of financial instruments are considered by management to be their fair value due to their short term maturities.











-8-








SONA RESOURCES, INC.


(Pre-exploration Stage Company)


NOTES TO FINANCIAL STATEMENTS


December 31, 2010





(Unaudited)





2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued





Estimates and Assumptions





Management uses estimates and assumptions in preparing financial statements in accordance with general accepted accounting principles.  Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.   Actual results could vary from the estimates that were assumed in preparing these financial statements.





Statement of Cash Flows





For the purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents.





Environmental Requirements





At the report date environmental requirements related to the mineral claim acquired are unknown and therefore any estimate of any future cost cannot be made.





Recent Accounting Pronouncements





The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.





3.           AQUISITION OF MINERAL CLAIM





On April 9, 2007, the Company acquired the Sagar Gold Claim located in the Republic of India from Govind Resources Inc., an unrelated company, for the consideration of $5,000.  The Sagar Gold Claim is located in Vandavasi, Tamil Nadu in India.  Under India’s law, the claim remains in good standing as long as the Company has an interest in it.   There are no annual maintenance fees or minimum exploration work required on the Claim.





The acquisition costs have been impaired and expensed because there has been no exploration activity nor has there been any reserve established and we cannot currently project any future cash flows or salvage value.











-9-








SONA RESOURCES, INC.


(Pre-exploration Stage Company)


NOTES TO FINANCIAL STATEMENTS


December 31, 2010





(Unaudited)





4.           SIGNIFICANT TRANSACTIONS WITH RELATED PARTY





For the three months ended December 31, 2010, a Director made advances of $2,830 to the Company.





Officers-directors and their families have acquired 77% of the common stock issued, have made no interest, demand advances to the Company of $25,167, and have made contributions to capital of $49,400 in the form of expenses paid for the Company.





5.           CAPITAL STOCK





On July 19, 2010, the Company effected a 40 to 1 stock dividend of all of its issued and outstanding shares of common stock (treated as a stock split for accounting purposes).  Shareholders of the Company holding certificated shares were credited the additional shares, with the same rights, privileges, and obligations, upon surrender of their stock certificate to the Company’s transfer agent





All share references have been retroactively adjusted for this stock dividend.





On August 31, 2007, Company completed a private placement consisting of 80,000,000 common shares sold to directors and officers for a total consideration of $2,000.  On September 30, 2007, the Company completed a private placement of 24,220,000 common shares for a total consideration of $30,276.  The total number of common shares outstanding as at September 30, 2010 was 104,220,000.





6.
GOING CONCERN





The Company will need additional working capital to service its debt and to develop the mineral claims acquired, which raises substantial doubt about its ability to continue as a going concern.   Continuation of the Company as a going concern is dependent upon obtaining additional working capital and the management of the Company has developed a strategy, which it believes will accomplish this objective through additional equity funding, and long term financing, which will enable the Company to operate for the coming year.













-10-








ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OR


PLAN OF OPERATIONS





The following discussion should be read in conjunction with the information contained in the financial statements of Sona Resources, Inc. (“Sona”) and the notes which form an integral part of the financial statements which are attached hereto.





The financial statements mentioned above have been prepared in conformity with accounting principles generally accepted in the United States of America and are stated in United States dollars.




Sona is a start-up, pre-exploration stage company, incorporated in the State of Nevada on January 18, 2007 and with a fiscal year end of September 30.   We have no subsidiaries, affiliated companies or joint venture partners.




Our business is the search for gold and related minerals. Our planned exploration work is exploratory in nature.  We have not generated any operating revenues since inception.  Our sole holding is a 100% interest in the Sagar Claim located in the Republic of India.  As well all of our directors, officers and our consulting geologist reside in India.  We have not discovered any ores or reserves on the Sagar Claim. We have incurred losses since inception and we must raise additional capital to fund our operations.   There is no assurance we will be able to raise this capital.




Sona has not conducted any exploration work on the Sagar Claim. There are no funds on hand which can be used to commence Phase 1 work of a two-phase exploration program recommended for the Sagar Claim.  It is our plan to commence Phase I work in the summer of 2011, if the funds are available.  We will have to raise additional cash to undertake anything beyond this initial work on the Sagar Claim.




There is no assurance that a commercially viable mineral deposit, a reserve, exists at our mineral claim.  There is no assurance a mineral deposit can be shown to exist on the Sagar claim unless and until sufficient and appropriate exploration is done and a comprehensive evaluation of such work concludes economic and legal feasibility.   Such work could take many years and would require expenditure of very substantial amounts of capital.  We do not presently have such capital.  We may never be able to raise this capital.




Management devotes only part-time to Sona’s business. Sona has no fulltime employees





Principal Office





Our administrative office is located at 2/41 Timurty OM Housing Society, Sion, Chunnabhatti, Mumbai, India 400022.Our telephone number is 91 9820600 700.





Other information





Sona has 104,220,000 common shares outstanding.





Sona is responsible for filing various forms with the United States Securities and Exchange Commission (the “SEC”) such as Form 10K and Form 10Qs.





The shareholders may read and copy any material filed by Sona with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, DC, 20549.   The shareholders may obtain information on the operations of the Public Reference Room by calling the SEC at 1-800-SEC-0330.   The SEC maintains an Internet site that contains reports, proxy and information statements, and other information which Sona has filed electronically with the SEC by assessing the website using the following address:  http://www.sec.gov.   Sona has no website at this time.






-11-








Planned Business





The following discussion should be read in conjunction with the information contained in the financial statements of Sona and the notes, which forms an integral part of the financial statements, which are attached hereto.




DESCRIPTION OF THE PROPERTY




Our sole mineral property is:





Sagar Claim





We are the registered and beneficial owner of a 100% interest in the Sagar Claim.





The Sagar Claim covers an area of approximately 98.7 hectares (approximately 244 acres).





The Sagar Claim is situated in the state of Tamil Nadu in the Republic of India.  The Sagar Claim was chosen because it is exhibits some geological similarity to the Polur Gold Claim (located approximately 50 kilometers/31 miles to the east of the Sagar Claim).  The Polur Gold Claim produced 2.7 million ounces of gold between 1920 and 2002 when the mine shut down.





Proposed Exploration Work – Plan of Operation




Mr. Hirendra Kapadia, P. Geol., authored the "Summary Of Exploration On The Sagar Property, Chennai, Tamil Nadu  India” dated May 1, 2007 (the “Kapadia Report”), in which he recommended a phased exploration program to properly evaluate the potential of the claim.  Mr. Kapadia is a registered Professional Geologist in good standing in the Geological Society of India. He is a graduate of the University of Western Australia, Perth, Australia with a Bachelor of  Science (1977) and a Masters of Science (1982).   Mr. Kapadia has practiced his profession as a geologist continuously since 1987.  He visited the area covered by our claim in April of 2007.




We must conduct exploration to determine what minerals exist, if any, on our property and whether they can be economically extracted and profitably processed. We plan to proceed with exploration of the Sagar Claim by commencing Phase I of the work recommended in the Kapadia Report, in order to begin determining the potential for discovering commercially exploitable deposits of gold on our claim.




We have not discovered any ores or reserves on the Sagar Claim, our sole mineral property. Our planned Phase I work is exploratory in nature.




The Kapadia Report recommends a number of steps in Phase I work to properly evaluate the potential of the claim.  Phase I work will include geological mapping, sampling and surveying (including whole rock chemical analysis) to define and enable interpretation and evaluation of the feasibility and utility of undertaking Phase II work (being an exploratory diamond drill program).




We anticipate, based on the estimate contained in the Kapadia Report, that the Phase I work we will undertake with cash on hand will cost approximately $7,600 (Ind. Rs 300,000) and will consist, primarily, of geological mapping.




At this point we have funds available to complete only a portion of Phase I.   Phase I work will include establishing a grid and the creation of maps showing the location of all roads in and near the perimeter of the Sagar Claim.  The laying out of a grid and line cutting involves the physical cutting of the underbrush and overlay to establish an actual grid on the ground whereby items can be related one to another more easily and with greater accuracy. When we map, we essentially generate a drawing of the physical features of the land we are interested in as well as a depiction of what may have been found in relation to the boundaries of the property. So we will actually draw a scale map of the area and make notes on it as to the location where anything was found that was of interest or not.  In the process we will also identify any showings which appear to warrant sampling, i.e. any rock formations that appear to warrant our taking soil and rock samples from the claims to a laboratory where a determination of the elemental make up of the sample and the exact concentrations of chromite and other indicator minerals can be made.  As noted above, we expect the costs of Phase I work to total approximately $7,600 (Ind. Rs 300,000).






-12-







Based on estimates in the Kapadia Report, we will have to raise an additional $28,500 (Ind. Rs 1,122,000) in order to carry out Phase I work in its entirety, let alone any Phase II drilling, should that be judged to be warranted following completion and evaluation of all Phase I work recommended in the Kapadia Report.





Particularly since we have a limited operating history, no reserves and no revenue, our ability to raise additional funds is limited.  If we are unable to raise the necessary funds we will be required to suspend Sona’s operations and liquidate our company.





Particulars of the Sagar Claim, our sole mineral property, together with issues we face in conducting exploration work on the property, are as follows.




Location and Access




The Sagar Claim is located approximately 42 kilometers (26 miles) east of the town of Vandavasi, near the southeastern corner of India in the state of Tamil Nadu.   The area covered by the Sagar Claim is an active mineral exploration and development region with plenty of heavy equipment and operators available for hire. The town of Vandavasi provides all necessary amenities and supplies including, an experienced workforce, fuel, helicopter services, hardware, drilling companies and assay services.  Access to the Sagar Claim is via government maintained all-weather road.   No water is required for the purposes of our planned exploration work.  No electrical power is required at this stage of exploration.  Any electrical power that might be required in the foreseeable future could be supplied by gas powered portable generators.





Tropical mountain forests grow at lower elevations in the northeast corner of the claim and good rock exposure is found along the peaks and ridges in the western portion of the claim. The area has a tropical and humid climate, with an oppressive summer and plentiful seasonal rainfall. The summer season, from March to May, is followed by the south west monsoon from June to September. The north east monsoon lasts from October to November.  The claim area can be worked, essentially, year round.





There are no known environmental concerns or parks designated for any area contained within the claims. The property has no encumbrances.





Property Geology





The principal bedded rocks for the area of Sagar Claim are Precambrian rocks that are exposed along a wide axial zone of a broad complex. In this region gold is generally concentrated within extrusive Precambrian rocks in the walls of large volcanic caldera.  The volcanic rocks are typically intruded with quartz veins that may be broken due to mechanical and chemical weathering into sand size particles and carried by streams and channels - rocks that are found at those mineral occurrence sites.





These rocks consisting of cherts and argillites (sediments) and andesitic to basaltic volcanic have been intruded by granodiorite. Structures and mineralization probably related to this intrusion are found throughout the region and occur on the claim. They are associated with all the major mineral occurrences and deposits in the area.  Past gold production, along with recent exploration, in the area near the Sagar Claim has resulted in the discovery of gold occurrences in shear zones such as those found on our claim.








-13-











Previous Exploration





While mineralization found on the Sagar Claim is consistent with that found associated with zones of extensive mineralization in nearby properties, to the best of our knowledge, based on examination by our geologist of available records, no detailed exploration has previously been undertaken on the area covered by the Sagar Claim.   Our proposed work represents an exploratory search for minerals on the Sagar Claim.





As mentioned above however, we determined to acquire and explore the Sagar Claim because of the fact that numerous showings of mineralization have been discovered in the area of our claim and one such prospect, the previously mentioned Polur Gold Claim located some 50 kilometers (31 miles) to the east of our claim, achieved significant gold production over many decades.





However, no assurance whatsoever can be given that any meaningful mineralization, let alone commercially valuable mineralization, will found on the Sagar Claim.





There are no permanent facilities, plants, buildings or equipment on the Sagar Claim.




Competitive Factors




The mining industry is highly fragmented. We are competing with many other exploration companies looking for gold and silver. We are among the smallest exploration companies in existence and are an infinitely small participant in the mining business that is the cornerstone of the founding and early stage development of the mining industry. While we generally compete with other exploration companies, there is no competition for the exploration or removal of minerals from our claims. Readily available markets exist for the sale of gold and silver. Therefore, we will likely be able to sell any gold or silver that we are able to recover, in the event commercial quantities are discovered on the Sagar Claim.  There is no ore body on the Sagar Claim.




Regulations




Exploration activities are subject to various national, state, foreign and local laws and regulations in the Republic of India, which govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous substances and other matters. We believe that we are in compliance in all material respects with applicable mining, health, safety and environmental statutes and the regulations passed thereunder in India.




Our exploration activities are subject to various federal, state and local laws and regulations governing protection of the environment. These laws are continually changing and, as a general matter, are becoming more restrictive. Our policy is to conduct business in a way that safeguards public health and the environment. We believe that our exploration activities are conducted in material compliance with applicable laws and regulations. Changes to current local, state or federal laws and regulations in the jurisdictions where we operate could require additional capital expenditures and increased operating and/or reclamation costs. Although we are unable to predict what additional legislation, if any, might be proposed or enacted, additional regulatory requirements could render certain exploration activities uneconomic.




Employees




Initially, we intend to use the services of subcontractors for manual labor exploration work on our claim.  At present, we have no employees as such although each of our officers and directors devotes a portion of his time to the affairs of the Company.  None of our officers and directors has an employment agreement with us. We presently do not have pension, health, annuity, insurance, profit sharing or similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any employee.






-14-






As indicated above we will hire subcontractors on an as needed basis. We have not entered into negotiations or contracts with any of potential subcontractors.  We do not intend to initiate negotiations or hire anyone until we are nearing the time of commencement of our planned exploration activities.




Investment Policies





Sona does not have an investment policy at this time.  Any excess funds it has on hand will be deposited in interest bearing notes such as term deposits or short term money instruments. There are no restrictions on what the director is able to invest or additional funds held by Sona.   Presently Sona does not have any excess funds to invest.





Since our business activity is related solely to the exploration and evaluation of the Sagar Claim, it is the opinion of management that the most meaningful financial information relates primarily to current liquidity and solvency.   As at December 31, 2010, we had cash on hand of $992 and a working capital deficiency of $47,869.   As can be determined from the following table, it is expected that the Company will require cash injections of $42,952 to enable the Company to meet its anticipated expenses over the next twelve months, including carrying out our planned exploration work.  Unless we raise additional funds, we are faced with a working capital deficiency since all our funds on hand are only $992, and since the agreed advances from our President has been used in the amount of $25,000 as per an agreement dated April 1, 2008.  We do not have sufficient working capital to finance our operations for the forthcoming twelve (12) months.  We will have to seek other sources of funding within the near future.





Our future financial success will be dependent on the success of the exploration work on the Sagar Claim.   Such exploration may take years to complete and future cash flows, if any, are impossible to predict at this time.   The realization value from any mineralization which may be discovered by us is largely dependent on factors beyond our control such as the market value of metals produced, mining regulations in India and foreign exchange rates.




Our financial statements contained herein have been prepared on a going concern basis, which assumes that we will be able to realize our assets and discharge our obligations in the normal course of business. We incurred a net loss for the period from the inception of our business on January 18, 2007 to December 31, 2010, of $129,544. We did not earn any revenues during the aforementioned period.




We are presently in the pre-exploration stage and there is no assurance that a commercially viable mineral deposit, a reserve, exits in the Sagar Claim until further exploration work is done and a comprehensive evaluation concludes economic and legal feasibility.




Our capital commitments for the next twelve months consist of expenses associated with the undertaking of our planned exploration work and other corporate expenses detailed below:




Expenses
Amount

DescriptionAccounting
$4,500

Fees to our accountant for preparing the quarterly and annual working papers for the financial statements.Audit
5,700

Review of the quarterly financial statements and audit of the annual financial statements.Bank charges
100Exploration
7,600

Completion of Geological mappingFiling fees
350

Annual fee to the Secretary of State for Nevada














-15-








Office & miscellaneous
1,000

Photocopying, delivery and fax expensesTransfer agent’s fees
1,000

Annual fee of $500 and estimated miscellaneous charges of $500Estimated expenses
20,250Add: Accounts payable
23,694

Excluding payables to ‘related parties’ as at December 31, 2010.Total expenses:
43,944Less: Cash on hand
992Balance Required
$42,952

Estimated additional cash required during the next twelve (12) months




We have no plant or significant equipment to sell, nor are we going to buy any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body of ore and we have determined it is economical to extract the ore from the land.




We may attempt to interest other companies to undertake exploration work on the Sagar Claim through joint venture arrangement or even the sale of part of the Sagar Claim.  Neither of these avenues has been pursued as of the date of this Form 10-Q.




Our engineer has recommended a phased exploration program for the Sagar Claim.  However, we have funds available to undertake only a portion of Phase I work. We will have to raise additional funds to complete all recommended Phase I work.  We will be unable to complete all Phase I of the recommended exploration program until we raise more money or find a joint venture partner to complete the exploration work.  If we cannot find a joint venture partner and do not raise more money, we will be unable to complete any work beyond the geological mapping of our Phase I of the exploration program recommended by our engineer.  If we are unable to finance additional exploration activities, we do not know what we will do and we do not have any plans to do anything else.




We do not intend to hire any employees at this time. Unaffiliated independent contractors that we will hire will conduct the geological mapping work. The independent contractors will be responsible for surveying and exploration.  We may engage a geologist to assist in evaluating the information derived from the exploration including advising us on the economic feasibility of removing any mineralized material we may discover.




Critical Accounting PoliciesOur discussion and analysis of its financial condition and results of operations, including the discussion on liquidity and capital resources, are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management re-evaluates its estimates and judgments.




The going concern basis of presentation assumes we will continue in operation throughout the next fiscal year and into the foreseeable future and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business. Certain conditions, discussed below, currently exists which raise substantial doubt upon the validity of this assumption. The financial statements do not include any adjustments that might result from the outcome of the uncertainty.




Our intended exploration activities are dependent upon our ability to obtain third party financing in the form of debt and equity and ultimately to generate future profitable exploration activity or income from its investments. As of December 31, 2010, we have not generated revenues, and have experienced negative cash flow from minimal exploration activities. We may look to secure additional funds through future debt or equity financings. Such financings may not be available or may not be available on reasonable terms.








-16-






TrendsWe are in the pre-explorations stage, have not generated any revenue and have no prospects of generating any revenue in the foreseeable future.  We are unaware of any known trends, events or  uncertainties that have had,  or are reasonably likely to have, a material impact on our business or income, either in the long term of short term, other than as described  in this section or in ‘Risk Factors’.




Limited Operating History; Need for Additional Capital         There is no historical financial information about us upon which to base an evaluation of our performance as an exploration corporation. We are a pre-exploration stage company and have not generated any revenues from our exploration activities. Further, we have not generated any revenues since our formation on January 18, 2007.  We cannot guarantee we will be successful in our exploration activities. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.




To become profitable and competitive, we must invest into the exploration of our property before we start production of any minerals we may find. We must obtain equity or debt financing to provide the capital required to fully implement our phased exploration program.We have no assurance that financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to commence, continue, develop or expand our exploration activities. Even if available, equity financing could result in additional dilution to existing shareholders.




Results of Operations – Since inception to December 31, 2010.




For the three months ended December 31, 2010, we had a net loss of $5,624 and an accumulated loss since inception of $129,544.   This represents a net loss of $0.00 per share for the three months ended December 31, 2010 based on a weighted average number of shares outstanding of 104,220,000.  We have not generated any revenue from operations since inception.  Our accumulated loss from our date of inception represents various expenses incurred with organizing the company, undertaking audits, recognizing management fees and general office expenses, which can be broken down as follows:





Expense
Amount

DescriptionAccounting and audit
$  30,713

Preparation of working papers for submission to our independent accountants.Bank charges
466

Includes the cost of printing cheques and deposit book and monthly

bank charges.Consulting fees
17,500

The Company engaged the services of two consultants; one to prepare this Form S-1 and the other to obtain the information required in the mineral property and other documents needed from India.Edgarizing
6,697

Edgarizing Form S-1, Forms 10-K and 10-Q.











-17-











Exploration
5,000

Write-off of work undertaken on the mineral claimFiling fees
30

Filing charges for our Form S-1Impairment on mineral claim acquisition
5,000

Represents the cost of acquiring the rights to the Sagar Gold Claim in India and the Kapadia Report thereon.Incorporation costs
720

Initial cost of incorporation the company in the State of NevadaLegal
7,838

Legal costs were incurred by an attorney to notarize certain corporate documents and to assist in the preparation of the documents to open a bank account for the Company.Management fees
38,000

The Company does not pay its directors or officers for the service they render to the Company.  Nevertheless, the Company realizes there is a cost in the directors and officers working on behalf of the Company and has accrued as an expense $1,000 each month commencing August 1, 2007 as management fee.   The offsetting credit is to Capital in Excess of Par Value on the Balance Sheet.   This amount will never be paid to the directors and officers in either cash or shares.





Office
2,831

General office and photocopy expenses.Rent
7,600

As with management fees, the Company accrues $200 a month as a rent expense even though it does not have its own office.   It does use the office premises of its President and therefore realizes there should be a cost attached thereto although the Company is not required and will not to pay any cash for such use.   The offsetting credit is to Capital in Excess of Par Value.Telephone
3,800

As with management fees and rent, the Company accrues as an expense $100 per month as telephone expense with a credit to Capital in Excess of Par Value.Transfer Agent Fees
3,349

Issuance of shares and annual transfer agent’s fee.$  129,544




Balance Sheet as at December 31, 2010Total cash, as at December 31 2010, was $992.  Our working capital deficiency as at December 31, 2010 was $47,869.




Our cash was derived from the completion of an initial seed capital offering on August 31, 2007 which raised $2,000 and a private placement on September 30, 2007 which raised a further $30,276.





Total shareholders’ deficiency as at December 31, 2010 was $47,869. Total shares outstanding, as at December 31, 2010, was 104,220,000.




Our Planned Exploration ProgramWe must conduct exploration to determine what amounts of minerals exist on the Sagar Claim and if such minerals can be economically extracted and profitably processed.




Our anticipated exploration costs over the next twelve months on the Sagar Claim are approximately $7,600.  This figure represents the anticipated cost to us of completing geological mapping and other Phase I work recommended in the Kapadia Report.  In order to complete Phase I we will have to raise additional investment capital since, apart from the $7,600 specifically allocated to mineral exploration, our remaining cash on hand is fully committed to ongoing administrative expenses of the Company.










-18-

















DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS





This Form 10-Q contains statements that constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words “expect,” “estimate,” “anticipate,” “predict,” “believe,” and similar expressions and variations thereof are intended to identify forward-looking statements. Such forward-looking statements include statements regarding, among other things, (a) our estimates of mineral reserves and mineralized material, (b) our projected sales and profitability, (c) our growth strategies, (d) anticipated trends in our industry, (e) our future financing plans, (f) our anticipated needs for working capital and (g) the benefits related to ownership of our common stock. This information may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements for the reasons, among others, described within the various sections of this Form 10-Q, specifically the section entitled “Risk Factors”.   In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this Form 10-Q will in fact occur as projected. We undertake no obligation to release publicly any updated information about forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.





The risks described below are the ones we believe are most important for you to consider. These risks are not the only ones that we face. If events anticipated by any of the following risks actually occur, our business, operating results or financial condition could suffer and the future price of our common stock, if ever quoted on the OTCBB, could decline.





Foreign Currency and Exchange Rates




Our mineral property is located in the Republic of India and costs expressed in the geological report on the Claim are expressed in Indian Rupees. For purposes of consistency and to express United States Dollars throughout this registration statement, Indian Rupees have been converted into United States currency at the rate of US $1.00 being approximately equal to Ind. R. 52.1743 or 1(one) Ind. R. being approximately equal US $0.01917 which is the approximate average exchange rate during recent months and which is consistent with the incorporated financial statements.


ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MAKET RISK





At this time this is not applicable.





ITEM 4.                      CONTROLS AND PROCEDURES





Our management has evaluated the effectiveness of Sona’s disclosure controls and procedures as required by the Exchange Act Rule 13a-15(d) as at December 31, 2010 (the “Evaluation Date”).  Upon completion of their evaluation management, has concluded the disclosure controls and procedures were not effective as of the Evaluation Date as a result of material weaknesses in internal control over financial reporting.





Under Rule 13a-15(e)/15d-15(e); Regulation S-K, Item 307, the SEC states that “disclosure controls and procedures” have the following characteristics:





●
designed to ensure disclosure of information that is required to be disclosed in the reports that  Sona files or submits under the Exchange Act;





●
recorded, processed, summarized and reported with the time period required by the SEC’s rules and forms; and








-19-








●
accumulated and communicated to management to allow them to make timely decisions about the required disclosures.





Even though management’s assessment that Sona’s internal control over financial reporting was not effective and there are certain material weaknesses as indicated below, management believe that Sona’s financial statements contained in its Quarterly Report on Form 10-Q for the three months ended December 31, 2010 fairly present its financial condition, results of operations and cash flows in all material respects.





Material Weaknesses





Management assessed the effectiveness of Sona’s internal control over financial reporting as of the Evaluation Date and identified the following material weaknesses:





●
As at December 31, 2010, Sona did not have an audit committee which complies to the requirements of an audit committee since it did not have an independent “financial expert” on the committee.  Even though it has a Code of Ethics it does not emphasize fraud and methods to avoid it.   Due to the small size of Sona a whistleblower policy is not necessary.





●
Due to a significant number and magnitude of out-of-period adjustments identified during the quarterly closing process, management has concluded that the controls over the quarter-end financial reporting process were not operating effectively.   A material weakness in the quarter-end financial reporting process could result in Sona not been able to meet its regulatory filing deadlines and, if not remedied, has the potential to cause a material misstatement or to miss a filing deadline in the future.   Management override of existing controls is possible given the small size of the organization and lack of personnel.





●
There is no system in place to review and monitor internal control over financial reporting.  This is due to Sona maintaining an insufficient complement of personal to carry out ongoing monitoring responsibilities and ensure effective internal control over financial reporting.





ITEM 4T
CONTROLS AND PROCEDURES





There were no changes in Sona’s internal controls over financial reporting during the three months ended December 31, 2010 that have materially affected, or are reasonably likely to material affect, Sona’s internal control over financial reporting.





PART 11 – OTHER INFORMATION





ITEM 1.                      LEGAL PROCEEDINGS





There are no legal proceedings to which Sona or is a party or to which the Sagar Claim is subject, nor to the best of management’s knowledge are any material legal proceedings contemplated.





ITEM 1A.        RISK  FACTORS




An investment in our common stock involves an exceptionally high degree of risk and is extremely speculative. In addition to the other information regarding Sona contained in this Form 10-Q, you should consider many important factors in determining the financial status of our Company. The following risk factors reflect the potential and substantial material risks which could be involved if you decide to purchase future shares in our Company or if you are already a shareholder in retaining or increasing your position.









-20-













Risks Associated with our Company:




Since our assets, together with all of our directors and officers, and our consulting geologist, are outside the United States (in the Republic of India) it may not be possible for investors to make service of process on our directors and officers or to enforce U.S. laws or any judgment obtained in a United States court, against the Company, its assets, our directors and officers or our consulting geologist in India.




Our assets are located outside the United States, in the Republic of India.   We do not currently, nor do we have plans for the foreseeable future, to maintain a permanent place of business within the United States.   We have an agent for service, Budget Corp. of Carson City, Nevada, who will accept, on our behalf, the service of any legal process and any demand or notice authorized by law to be served upon a corporation.  However, our agent for service will not accept service on behalf of any of our officers or directors, all of whom are residents of India.  Similarly, our consulting geologist, who has advised the Company with respect to exploration of its principal asset, the Sagar Claim, is also a resident of India.  None of these persons has an agent for service in the United States.  Consequently it may be difficult for investors to bring a legal action, or obtain a judgment, against the Company, or more particularly, any of our officers and directors or our consulting geologist, in a U.S court, based upon the civil liability provisions of U.S. federal securities laws, or otherwise.  Even if such an action is brought, and judgment were obtained, in a U.S. court it may be difficult, even impossible, to enforce such a judgment in the courts of India making it difficult, if not impossible, to collect on a U.S. judgment in India.  Furthermore, it may be difficult, or


even impossible, for an investor to bring an original action in the courts of India against Sona, or any of the above-referenced individuals, whether based upon the civil liability provisions of U.S. federal securities laws, or any other laws, of the United States.




Our liquidity, and thus our ability to continue to operate depends upon the continuing willingness of our President to finance the Company’s operations.




We are, in part, financing our continuing operations with cash loaned to us by our President.  To date our President has advanced $25,167 to the Company.   Unless we enter into another agreement with her we will not have sufficient funds to meet our on-going financial commitments.   We are hopeful an accommodation can be reached.




Furthermore, the loan advances made by our President are repayable on demand.  Accordingly, if our President were to demand repayment of his loan advances we would not have sufficient funds to satisfy our cash requirements and would be forced to go out of business.




We lack an operating history and have losses, which we expect to continue into the future. As a result, we may have to suspend or cease exploration activity or cease operations.




We were incorporated on January 18, 2007 and have not yet conducted any exploration activities.  We have not generated any revenues. We have no exploration history upon which you can evaluate the likelihood of our future success or failure.  Our net loss from inception to December 31, 2010, the date of our most recent interim financial statements, is $129,544.  Our ability to achieve profitability and positive cash flow in the future is dependent upon




*
our ability to locate a profitable mineral property*
our ability to locate an economic ore reserve*
our ability to generate revenues*
our ability to reduce exploration costs.




Based upon current plans, we expect to incur operating losses in future periods. This will happen because there are expenses associated with the research and exploration of our mineral property. We cannot guarantee we will be successful in generating revenues in the future. Failure to generate revenues may cause us to go out of business.






-21-








We have no known ore reserves and we cannot guarantee we will find any gold and/or silver mineralization or, if we find gold and/or silver mineralization, that it may be economically extracted. If we fail to find any gold and/or silver mineralization or if we are unable to find gold and/or silver mineralization that may be economically extracted, we will have to cease operations.




We have no known ore reserves. Even if we find gold and/or silvermineralizationwe cannot guarantee that any gold and/or silver mineralizationwill be of sufficient quantity so as to warrant recovery. Additionally, even if we find gold and/or silver mineralizationin sufficient quantity to warrant recovery, we cannot guarantee that the ore will be recoverable. Finally, even if any gold and/or silvermineralizationis recoverable, we cannot guarantee that this can be done at a profit. Failure to locate gold deposits in economically recoverable quantities will cause us to cease operations.




Because the probability of an individual prospect ever having reserves is extremely remote, in all probability our property does not contain any reserves, and any funds spent on exploration will be lost.




Because the probability of an individual prospect ever having reserves is extremely remote, in all probability our sole property, the Sagar Claim, does not contain any reserves, and any funds spent on exploration will be lost. If we cannot raise further funds as a result, we may have to suspend or cease operations entirely which would result in the loss of your investment.




Because our officers and directors do not have technical training or experience in starting, and operating an exploration company nor in managing a public company, we will have to hire qualified personnel to fulfill these functions. If we lack funds to retain such personnel, or cannot locate qualified personnel, we may have to suspend or cease exploration activity or cease operations which will result in the loss of your investment.




One of our directors is a professional geologist and has considerable experience exploring for minerals.  However, none of our management team has experience starting and operating a mineral exploration company, nor do they have training in these areas.  As a result their decisions and choices may not take into account standard managerial approaches mineral exploration companies commonly use. Consequently our ultimate financial success could suffer irreparable harm due to certain of management's lack of experience.  Additionally, our officers and directors have no direct training or experience in managing and fulfilling the regulatory reporting obligations of a ‘public company’ like Sona.  We will have to hire professionals to undertake these filing requirements for Sona and this will increase the overall cost of operations. As a result we may have to suspend or cease exploration activity, or cease operations altogether, which will result in the loss of your investment.




If we don't raise enough capital for exploration, we will have to delay exploration or go out of business, which will result in the loss of your investment.




We estimate that, with funding committed by our management combined with our cash on hand, we have sufficient cash to continue operations for twelve months provided we only carry out the planned portion of Phase I of our planned exploration activity.  We are in the pre-exploration stage.  We need to raise additional capital to undertake the remainder of Phase I, or any of Phase II, of our planned exploration activity.  You may be investing in a company that will not have the funds necessary to conduct any meaningful exploration activity due to our inability to raise additional capital. If that occurs we will have to delay exploration or cease our exploration activity and go out of business, which will result in the loss of your investment.






-22-







Since we are small and do not have much capital, we must limit our exploration and as a result may not find an ore body. Without an ore body, we cannot generate revenues and you will lose your investment.




The possibility of development of and production from our exploration property depends upon the results of exploration programs and/or feasibility studies and the recommendations of duly qualified professional engineers and geologists.  We are small company and do not have much capital.  We must limit our exploration activity unless and until we raise additional capital.  Any decision to expand our operations on our exploration property will involve the consideration and evaluation of several significant factors beyond our control.  These factors include, but are not limited to:




●
Market prices for the minerals to be produced;●
Costs of bringing the property into production including exploration preparation of production feasibility studies and construction of production facilities;●
Political climate and/or governmental regulations and controls;●
Ongoing costs of production;●
Availability and cost of financing; and●
Environmental compliance regulations and restraints.




These types of programs require substantial capital. Because we may have to limit our exploration, we may not find an ore body, even though our property may contain mineralized material. Without an ore body, we cannot generate revenues and you will lose your investment.




Because our officers and directors have other outside business activities and may not be in a position to devote a majority of their time to our exploration activity, our exploration activity may be sporadic which may result in periodic interruptions or suspensions of exploration.




Our President will be devoting only a portion of his time, approximately 15 hours per month, to our business.  Our Chief Financial Officer and Secretary-Treasurer will be devoting only approximately 8 hours per month to our operations.  Our remaining director, Fidel Pernites, will be devoting almost no time to our affairs except during the limited time during which we undertake exploration work on the Sagar Claim at which time Mr. Pernites, a professional geologist, is expected to devote a significant portion of his time on behalf of the Company.  While our officers and directors presently possess adequate time to attend to our business, it is possible that the demands of their other obligations could increase with the result that our affairs are not effectively managed. As a consequence our business may suffer with our exploration activity being under-funded, sporadic or periodically interrupted or suspended.   Such suspensions or interruptions may cause us to cease operations altogether and go out of business.




We may not have access to all of the supplies and materials we need to begin exploration which could cause us to delay or suspend exploration activity.




We have made no attempt to locate or negotiate with any suppliers of products, equipment or materials. We will attempt to locate products, equipment and materials as and when we begin to undertake exploration activity in 2011, if funds are available.  Competition and unforeseen limited sources of supplies in the industry could result in occasional spot shortages of equipment and/or supplies we need to conduct our planned exploration work.  If we cannot find the products and equipment we need, we will have to suspend our exploration plans until we do find the products and equipment we need.







-23-











Mineral exploration is highly speculative, involves substantial expenditures, and is frequently non-productive





Mineral exploration involves a high degree of risk and exploration projects are frequently unsuccessful. Few prospects that are explored end up being ultimately developed into producing mines. As we are exclusively involved in mineral exploration, the long-term success of our operations will be related to the cost and success of our exploration programs. We cannot assure you that our mineral exploration efforts will be successful. The risks associated with mineral exploration include the identification of potential economic mineralization based on superficial analysis; the quality of our management and our geological and technical expertise; and the capital available for exploration and development.  Substantial expenditures are required to determine if a project has economically mineable mineralization. It may take several years to establish proven and probable reserves and to develop and construct mining and processing facilities. Because of these uncertainties, our current and any future exploration programs may not result in the discovery of reserves, the expansion of our existing reserves or the further development of our mines.





Mineral exploration is highly speculative.





Exploration for minerals is highly speculative and involves greater risks than are inherent in many other industries. Many exploration programs do not result in the discovery of mineralization, and any mineralization discovered may not be of sufficient quantity or quality to be profitably mined. Also, because of the uncertainties in determining metallurgical amenability of any minerals discovered, the mere discovery of mineralization may not warrant the mining of the minerals on the basis of available technology. The exploration targets on the properties we own, lease or acquire in the future may not contain commercially mineable mineral deposits.





No matter how much money is spent on the Sagar Claim, the risk is that we might never identify a commercially viable ore reserve.





Over the coming years, we might expend considerable capital on exploration of the Sagar Claim without finding anything of value.  It is very likely the Sagar Claim does not contain any reserves so any funds spent on exploration will probably be lost.  No matter how much money is spent on the Sagar Claim, we might never be able to find a commercially viable ore reserve.




Even if our property were found to contain a deposit, since we have not put a mineral deposit into production before, we will have to acquire outside expertise. If we are unable to acquire such expertise we may be unable to put our property into production and you may lose your investment.




We have no experience in placing mineral deposit properties into production, and our ability to do so will be dependent upon using the services of appropriately experienced personnel or entering into agreements with other major resource companies that can provide such expertise. There can be no assurance that we will have available to us the necessary expertise when and if we place a mineral deposit into production.




Mineral exploration and development activities are inherently risky and we may be exposed to environmental liabilities. If such an event were to occur it may result in a loss of your investment.




The business of mineral exploration and extraction involves a high degree of risk. Few properties that are explored are ultimately developed into production.  Most exploration projects do not result in the discovery of commercially mineable deposits of ore.  The Sagar Claim, our sole property, does not have a known body of commercial ore. Should our mineral claim be found to have commercial quantities of ore, we would be subject to additional risks respecting any development and production activities. Unusual or unexpected formations, formation pressures, fires, power outages, labor disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labor are other risks involved in extraction operations and the conduct of exploration programs. We do not carry liability insurance with respect to our mineral exploration operations and we may become subject to liability for damage to life and property, environmental damage, cave-ins or hazards. There are also physical risks to the exploration personnel working in the rugged terrain of India, often in poor climatic conditions. Previous mining exploration activities may have caused environmental damage to the Sagar Claim. It may be difficult or impossible to assess the extent to which such damage was caused by us or by the activities of previous operators, in which case, any indemnities and exemptions from liability may be ineffective.








-24-






Even with positive results during exploration, the Sagar Claim might never be put into commercial production due to inadequate tonnage, low metal prices or high extraction costs.





We might be successful, during future exploration programs, in identifying a source of minerals of good grade but not in the quantity, the tonnage, required to make commercial production feasible.  If the cost of extracting any minerals that might be found on the Sagar Claim is in excess of the selling price of such minerals, we would not be able to develop the claim.  Accordingly even if ore reserves were found on the Sagar Claim, without sufficient tonnage we would still not be able to economically extract the minerals from the claim in which case we would have to abandon the Sagar Claim and seek another mineral property to develop, or cease operations altogether.




Risks Associated with Our Shares:




Our officers and directors own a substantial amount of our common stock and will have substantial influence over our operations.




Our directors and officers currently own 80,000,000 shares of common stock representing 77% of our outstanding shares.  Such directors and officers have registered for resale 8,000,000 of their shares.  Assuming that such directors and officers sell their 8,000,000 shares, they will still own 72,000,000 shares of common stock representing 69.1% of our outstanding shares.  As a result, they will have substantial influence over our operations and can effect certain corporate transaction without further shareholder approval.  This concentration of ownership may also have the effect of delaying or preventing a change in control.





We anticipate the need to sell additional treasury shares in the future meaning that there will be a dilution to our existing shareholders resulting in their percentage ownership in the Company being reduced accordingly.





We may seek additional funds through the sale of our common stock.  This will result in a dilutive effect to our shareholders whereby their percentage ownership interest in the Company is reduced.  The magnitude of this dilutive effect will be determined by the number of shares we will have to issue in the future to obtain the funds required.




Since our securities are subject to penny stock rules, you may have difficulty reselling your shares.




Our shares are "penny stocks" and are covered by Section 15(g) of the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell the Company's securities including the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure of compensation the broker/dealer receives; and, furnishing monthly account statements. For sales of our securities, the broker/dealer must make a special suitability determination and receive from its customer a written agreement prior to making a sale. The imposition of the foregoing additional sales practices could adversely affect a shareholder's ability to dispose of his stock.








-25-













ITEM 2.                      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS





There has been no change in our securities since the fiscal year ended September 30, 2010.





ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES





None





ITEM 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS





There have been no matters brought forth to the securities holders to vote upon during this quarter.





ITEM 5.                      OTHER INFORMATION





None





ITEM 6.                      EXHIBITS





The following exhibits are included as part of this report by reference:





3.1

Certificate of Incorporation (incorporated by reference from Sona’s Registration Statement on Form SB-2 filed on January 31, 2008, Registration No. 333-148959)3.2

Articles of Incorporation (incorporated by reference from Sona’s Registration Statement on Form SB-2 filed on January 31, 2008, Registration No. 333-148959)3.3

By-laws (incorporated by reference from Sona’s Registration Statement on Form SB-2 filed on January 31, 2008, Registration No. 333-148959)4

Specimen Stock Certificate (incorporated by reference from Sona’s Registration Statement on Form SB-2 filed on January 31, 2008, Registration No. 333-148959)10.1

Transfer Agent and Registrar Agreement (incorporated by reference from Sona’s Registration Statement on Form SB-2 filed on January 31, 2008, Registration No. 333-148959)














-26-










SIGNATURES








Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.





SONA RESOURCES, INC.(Registrant)Date:    February 11, 2011
AJEETA PINHEIROChief Executive Officer, President and DirectorDate:    February 11, 2011
MONIKA SAGARChief Financial Officer, Chief Accounting

Officer, Secretary and Director







-27-