----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934:For the quarterly period ended June 30, 2012 |
|---|--------------------------------------------------------------------------------------------------------------------------------|

| o |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934:For the transition period from ____to____ |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

| Nevada                                                        | 20-5874196                          |
|---------------------------------------------------------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |

| 1671 SW 105 Lane, Davie, FL 33324                   |
|-----------------------------------------------------|
| (Address of principal executive offices) (Zip Code) |

| (786) 423-1811                                             |
|------------------------------------------------------------|
| (Registrant’s Telephone Number, including area code) |
|                                                       |   |

| Large accelerated filer                                         | o |                                          | Accelerated filer         | o |
|-----------------------------------------------------------------|---|-----------------------------------------------|---------------------------|---|
| Non-accelerated filer        | o | (Do not check if a smaller reporting company) | Smaller reporting company | x |

----

|                              |                                                                                        |   |
|-----------------------------------|---------------------------------------------------------------------------------------------|--------|
|                              |                                                                                        |   |
| PART I FINANCIAL INFORMATION |
|                              |                                                                                        | Page   |
| Item 1.                           | Financial Statements                                                                        | 3      |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18     |
| Item 3.                           | Quantitative and Qualitative Disclosures about Market Risk                                  | 21     |
| Item 4.                           | Controls and Procedures                                                                     | 21     |

| Item 1.  | Legal Proceedings                                           | 22 |
|----------|-------------------------------------------------------------|----|
| Item 1A. | Risk Factors                                                | 22 |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | 22 |
| Item 3.  | Defaults Upon Senior Securities                             | 22 |
| Item 4.  | Mine Safety Disclosures                                     | 22 |
| Item 5.  | Other Information                                           | 22 |
| Item 6.  | Exhibits                                                    | 22 |

----

|                                                                                                     |   | June 30, 2012(UNAUDITED) |      |   | December 31, 2011 |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|-------------------|--------|
| Current assets                                                                                           |   |                     |      |   |              |   |
|     Cash                                                                                  |   | $                        | 5,263     |   |              | $      | 10,559 |   |
|     Total current assets                                                             |   |                     | 5,263     |   |              |   | 10,559 |   |
|                                                                                                     |   |                     |      |   |              |   |   |   |
| Property and equipment, net of $2,906 and $2,723   accumulated depreciation, respectively |   |                     | 150       |   |              |   | 333 |   |
|                                                                                                     |   |                     |      |   |              |   |   |   |
| Unproven mineral properties                                                                              |   |                     | 1,194,910 |   |              |   | 1,194,910 |   |
|                                                                                                     |   |                     |      |   |              |   |   |   |
|     Total assets                                                                     |   | $                        | 1,200,323 |   |              | $      | 1,205,802 |   |

| Current liabilities                                                                                                                                     |   |   |       |   |   |   |       |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|---------|
|     Accounts payable and accrued expenses                                                                                                |   | $      | 127,826    |   |   | $      | 16,464     |    |
|     Notes payable, current                                                                                                               |   |   | 200,000    |   |   |   | 200,000    |    |
|     Loans from stockholders                                                                                                              |   |   | 182,000    |   |   |   | 57,000     |    |
|                                                                                                                                                    |   |   |       |   |   |   |       |    |
|     Total current liabilities                                                                                                       |   |   | 509,826    |   |   |   | 273,464    |    |
|                                                                                                                                                    |   |   |       |   |   |   |       |    |
| Notes payable, long-term (including accrued interest)                                                                                                   |   |   | 1,873,397  |   |   |   | 1,869,726  |    |
|                                                                                                                                                    |   |   |       |   |   |   |       |    |
| Stockholders’ equity (deficit)                                                                                                                    |   |   |       |   |   |   |       |    |
|     Preferred stock, $.001 par value; 30,000,000 shares authorized,      -0- shares issued and outstanding      |   |   |  -    |   |   |   |  -    |    |
|     Common stock, $.001 par value; 300,000,000 shares authorized,      46,502,120 shares issued and outstanding |   |   | 1,267      |   |   |   | 1,267      |    |
|     Additional paid-in capital                                                                                                           |   |   | 1,340,183  |   |   |   | 1,339,183  |    |
|     Accumulated deficit                                                                                                                  |   |   | (233,532   | )      |   |   | (233,532   | )  |
|     Deficit accumulated during the exploration stage                                                                                     |   |   | (2,290,818 | )      |   |   | (2,044,306 | )  |
|                                                                                                                                                    |   |   |       |   |   |   |       |    |
|     Total stockholders’ equity (deficit)                                                                                      |   |   | (1,182,900 | )      |   |   | (937,388   | )       |
|                                                                                                                                                    |   |   |       |   |   |   |       |    |
|        Total liabilities and stockholders’ equity (deficit)                                                    |   | $      | 1,200,323  |   |   | $      | 1,205,802  |    |

----

|                                                                                                       |   | For the Three MonthsendedJune 30, 2012 |       |   | For the Three MonthsendedJune 30, 2011 |   |       | For the Six MonthsendedJune 30, 2012 |   |    | For the Six MonthsendedJune 30, 2011 |   |   | For the Periodfrom Inception(October 31, 2006)throughJune 30, 2012 |             |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|--------|----------------------------------------|--------|------------|--------------------------------------|--------|---------|--------------------------------------|--------|--------|--------------------------------------------------------------------|------------------|
| Revenues                                                                                                   |   | $                                      | -          |   |                                   | $      | -          |                                 |   | $  | -                                    |   |   | $                                                                  | -                |   |   | $ | - |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Operating expenses                                                                                         |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
|     Exploration costs                                                                       |   |                                   | 7,974      |   |                                   |   | 137,962    |                                 |   |    | 8,096                                |   |   |                                                               | 295,248          |   |   |   | 439,560 |   |
|     Legal and professional                                                                  |   |                                   | 79,877     |   |                                   |   | 62,832     |                                 |   |    | 127,406                              |   |   |                                                               | 161,498          |   |   |   | 538,578 |   |
|     Officer compensation                                                                    |   |                                   | 10,000     |   |                                   |   | 25,500     |                                 |   |    | 10,000                               |   |   |                                                               | 131,000          |   |   |   | 200,500 |   |
|     General and administrative                                                         |   |                                   | 23,997     |   |                                   |   | 57,728     |                                 |   |    | 40,030                               |   |   |                                                               | 67,691           |   |   |   | 231,068 |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
|     Total operating expenses                                                           |   |                                   | 121,848    |   |                                   |   | 284,022    |                                 |   |    | 185,532                              |   |   |                                                               | 655,437          |   |   |   | 1,409,706 |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Loss from continuing operations                                                                            |   |                                   | (121,848   | )      |                                   |   | (284,022   | )                               |   |    | (185,532                             | )      |   |                                                               | (655,437)        |   |   |   | (1,409,706 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Other income (expense)                                                                                     |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Forgiveness of accounts and note payable                                                                   |   |                                   | -          |   |                                   |   | -          |                                 |   |    |                                 |   |   |                                                               |             |   |   |   | 75,781 |   |
| Interest income                                                                                            |   |                                   | -          |   |                                   |   | -          |                                 |   |    |                                 |   |   |                                                               |             |   |   |   | 1,885 |   |
| Fair value of warrants                                                                                     |   |                                   | -          |   |                                   |   | -          |                                 |   |    |                                 |   |   |                                                               |             |   |   |   | (172,500 | ) |
| Amortization of debt discount                                                                              |   |                                   | -          |   |                                   |   | -          |                                 |   |    |                                 |   |   |                                                               | (600,000)        |   |   |   | (600,000 | ) |
| Interest expense                                                                                           |   |                                   | (30,651    | )      |                                   |   | (28,151    | )                               |   |    | (60,980                              | )      |   |                                                               | (45,064)         |   |   |   | (186,278 | ) |
|             Total other income  (expense) |   |                                   | (30,651    | )      |                                   |   | (28,151    | )                               |   |    | (60,980                              | )      |   |                                                               | (645,064)        |   |   |   | (881,112 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Loss before discontinued operations and income taxes                                                       |   |                                   | (152,499   | )      |                                   |   | (312,173   | )                               |   |    | (246,512                             | )      |   |                                                               | (1,300,501)      |   |   |   | (2,290,817 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Loss on discontinued operations                                                                            |   |                                   | -          |   |                                   |   | -          |                                 |   |    |   -                             |   |   |                                                               | -                |   |   |   | (233,532 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Loss before income taxes                                                                                   |   |                                   | (152,499   | )      |                                   |   | (312,173   | )                                    |   |    | (246,512                             | )      |   |                                                               | (1,300,501)      |   |   |   | (2,524,350 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Provision for income taxes                                                                                 |   |                                   | -          |   |                                   |   | -          |                                 |   |    |   -                             |   |   |                                                               | -                |   |   |   | - |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Net loss                                                                                                   |   | $                                      | (152,499   | )      |                                   | $      | (312,173   | )                                    |   | $  | (246,512                             | )      |   | $                                                                  | (1,300,501       | ) |   | $ | (2,524,350 | ) |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Net loss per common share – basic and diluted                                                        |   | $                                      | (0.01      | )      |                                   | $      | (0.01      | )                                    |   | $  | (0.01                                | )      |   | $                                                                  | (0.03            | ) |   |   |   |   |
|                                                                                                       |   |                                   |       |   |                                   |   |       |                                 |   |    |                                 |   |   |                                                               |             |   |   |   |   |   |
| Weighted average of common   shares – basic and diluted                               |   |                                   | 46,502,120 |   |                                   |   | 46,502,120 |                                 |   |    | 46,502,120                           |   |   |                                                               | 46,502,120  |   |   |   |   |   |

----

|                                                                                                                |   | Common Stock*    |        |   | Additional |   |   |            |   |   | DeficitAccumulatedDuring |   |   | Total Stockholders' |     |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|------------|--------|--------|-----------------|--------|--------|--------------------------|--------|--------|---------------------|----------|
|                                                                                                                |   | Number of Shares |        |   | Amount     |   |   | Paid-In Capital |   |   | Accumulated Deficit      |   |   | Exploration Stage   |     |   | Equity (Deficit) |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |
| Balance, October 31, 2006                                                                                           |   |             | -           |   |       | $      | -      |            |   | $      | -                        |   |   | $                   | -        |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock,    November 1, 2006                                                        |   |             | 240,000,000 |   |       |   | 4,000  |            |   |   | -                        |   |   |                | -        |   |   |   | - |   |   |   | 4,000 |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital in    exchange for facilities    provided by related party |   |             | -           |   |       |   | -      |            |   |   | 400                      |   |   |                | -        |   |   |   | - |   |   |   | 400 |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |             | -           |   |       |   | -      |            |   |   | -                        |   |   |                | (11,014  | ) |   |   | - |   |   |   | (11,014 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                                                                          |   |             | 240,000,000 |   |       |   | 4,000  |            |   |   | 400                      |   |   |                | (11,014  | ) |   |   | - |   |   |   | (6,614 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock    for cash, June 30, 2007                                                  |   |             | 18,930,000  |   |       |   | 316    |            |   |   | 31,234                   |   |   |                | -        |   |   |   | - |   |   |   | 31,550 |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock    for cash, July  23, 2007                                       |   |             | 12,000,000  |   |       |   | 200    |            |   |   | 19,800                   |   |   |                | -        |   |   |   | - |   |   |   | 20,000 |   |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital    in exchange for facilities    provided by related party |   |             | -           |   |       |   | -      |            |   |   | 2,400                    |   |   |                | -        |   |   |   | - |   |   |   | 2,400 |   |
|                                                                                                 |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |             | -           |   |       |   | -      |            |   |   | -                        |   |   |                | (69,026  | ) |   |   | - |   |   |   | (69,026 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                                                                          |   |             | 270,930,000 |   |       |   | 4,516  |            |   |   | 53,834                   |   |   |                | (80,040  | ) |   |   | - |   |   |   | (21,690 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital    in exchange for facilities    provided by related party |   |             | -           |   |       |   | -      |            |   |   | 2,400                    |   |   |                | -        |   |   |   | - |   |   |   | 2,400 |   |
|                                                                                                 |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |             | -           |   |       |   | -      |            |   |   | -                        |   |   |                | (48,345  | ) |   |   | - |   |   |   | (48,345 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                                          |   |             | 270,930,000 |   |       |   | 4,516  |            |   |   | 56,234                   |   |   |                | (128,385 | ) |   |   | - |   |   |   | (67,635 | ) |
|                                                                                                                |   |             |        |   |       |   |   |            |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                     |   | Common Stock *   |         |   | Additional |   |   |                 |   |   | DeficitAccumulatedDuring |   |   | Total Stockholders' |     |
|--------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------------|--------|------------|--------|--------|----------------------|--------|--------|--------------------------|--------|--------|---------------------|----------|
|                                                                                                                     |   | Number of Shares |         |   | Amount     |   |   | Paid-In Capital |   |   | Accumulated Deficit      |   |   | Exploration Stage   |     |   | Equity (Deficit) |   |
| Additional paid-in capital    in exchange for facilities    provided by related party      |   |             | -            |   |       |   | -      |                 |   |   | 2,400                    |   |   |                | -        |   |   |   | - |   |   |   | 2,400 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                 |   |             | -            |   |       |   | -      |                 |   |   | -                        |   |   |                | (45,207  | ) |   |   | - |   |   |   | (45,207 | ) |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                                               |   |             | 270,930,000  |   |       |   | 4,516  |                 |   |   | 58,634                   |   |   |                | (173,592 | ) |   |   | - |   |   |   | (110,442 | ) |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital    in exchange for facilities    provided by related party      |   |             | -            |   |       |   | -      |                 |   |   | 2,400                    |   |   |                | -        |   |   |   | - |   |   |   | 2,400 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Fair value of warrants                                                                                                   |   |             | -            |   |       |   | -      |                 |   |   | 172,500                  |   |   |                | -        |   |   |   | - |   |   |   | 172,500 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Shares cancelled into treasury and retired                                                                               |   |             | (224,927,880 | )      |       |   | (3,749 | )                    |   |   | 3,749                    |   |   |                | -        |   |   |   | - |   |   |   | - |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                                                                                   |   |             | 500,000      |   |       |   | 500    |                 |   |   | 499,500                  |   |   |                | -        |   |   |   | - |   |   |   | 500,000 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                 |   |             | -            |   |       |   | -      |                 |   |   | -                        |   |   |                | (59,940  | ) |   |   | (403,726 | ) |   |   | (463,666 | ) |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                                                               |   |             | 46,502,120   |   |       |   | 1,267  |                 |   |   | 736,783                  |   |   |                | (233,532 | ) |   |   | (403,726 | ) |   |   | 100,792 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital    in exchange for facilities    provided by related party |   |             | -            |   |       |   | -      |                 |   |   | 2,400                    |   |   |                | -        |   |   |   | - |   |   |   | 2,400 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Amortization of debt discount                                                                                            |   |             | -            |   |       |   | -      |                 |   |   | 600,000                  |   |   |                | -        |   |   |   | - |   |   |   | 600,000 |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                 |   |             | -            |   |       |   | -      |                 |   |   | -                        |   |   |                | -        |   |   |   | (1,640,580 | ) |   |   | (1,640,580 | ) |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2011                                                                                               |   |             | 46,502,120   |   |       | $      | 1,267  |                 |   | $      | 1,339,183                |   |   | $                   | (233,532 | ) |   | $ | (2,044,306 | ) |   | $ | (937,388 | ) |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                     |   |             |         |   |       |   |   |                 |   |   |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                |   | Common Stock *   |       |   | Additional |    |   |                 |   |    | DeficitAccumulatedDuring |   |   | Total Stockholders' |     |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|------------|---------|--------|----------------------|--------|---------|--------------------------|--------|--------|---------------------|----------|
|                                                                                                                |   | Number of Shares |       |   | Amount     |    |   | Paid-In Capital |   |    | Accumulated Deficit      |   |   | Exploration Stage   |     |   | Equity (Deficit) |   |
| Additional paid-in capital    in exchange for facilities    provided by related party |   |             | -          |   |       |    | -      |                 |   |    | 1,000                    |   |   |                | -        |   |   |   | - |   |   |   | 1,000 |   |
|                                                                                                                |   |             |       |   |       |    |   |                 |   |    |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |             | -          |   |       |    | -      |                 |   |    | -                        |   |   |                | -        |   |   |   | (246,512 | ) |   |   | (246,512 | ) |
|                                                                                                                |   |             |       |   |       |    |   |                 |   |    |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
| Balance June 30, 2012 (unaudited)                                                                                   |   |             | 46,502,120 |   |       | $  | 1,267  |                 |   | $  | 1,340,183                |   |   | $              | (233,532 | ) |   | $  | (2,290,818 | ) |   | $  | (1,182,900 | ) |
|                                                                                                                |   |             |       |   |       |    |   |                 |   |    |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |             |       |   |       |    |   |                 |   |    |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |             |       |   |       |    |   |                 |   |    |                     |   |   |                |     |   |   |   |   |   |   |   |   |   |

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|                                                                                                                                                                                                                                         |   |   For the Six MonthsendedJune 30, 2012 |     |    | For the Six MonthsendedJune 30, 2011 |   |       | For the Periodfrom Inception(October 31, 2006)throughJune 30, 2012 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|---------|--------------------------------------|--------|------------|--------------------------------------------------------------------|--------|
| Cash flows from operating activities                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |
|     Net loss                                                                                                                                                                                                                  |   | $                                           | (246,512 | )       |                                 | $      | (1,300,501 | )                                                                  |   |   | (2,524,350 | ) |
|         Adjustments to reconcile net loss to net cash used          in operating activities                                                                  |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|              Additional paid-in capital in exchange for facilities               provided by related party |   |                                        | 1,000    |    |                                 |   | 1,200      |                                                               |   |   | 13,400 |   |
|              Depreciation                                                                                                                                                             |   |                                        | 183      |    |                                 |   | 305        |                                                               |   |   | 2,906 |   |
|                  Forgiveness of accounts and note payable                                                                                                                   |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | (75,781 | ) |
|                  Amortization of debt discount                                                                                                                    |   |                                        | -        |    |                                 |   | 600,000    |                                                               |   |   | 600,000 |   |
|                  Fair value of warrants                                                                                                                           |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | 172,500 |   |
|             Changes in operating assets and liabilities                                                                                                                               |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|          (Increase) in prepaid expenses                                                                                                                                                         |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | - |   |
|           Increase in accounts payable and accrued interest                                                                                                                                |   |                                        | 165,033  |    |                                 |   | 45,749     |                                                               |   |   | 377,004 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|        Net cash used in operating activities                                                                                                                                                              |   |                                        | (80,296  | )       |                                 |   | (653,247   | )                                                                  |   |   | (1,434,321 | ) |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Cash flows from investing activities                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|     Purchase of property and equipment                                                                                                                                                                                        |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | (3,056 | ) |
|     Purchase of unproven mineral properties                                                                                                                                                                                   |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | (204,910 | ) |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|        Net cash used by investing activities                                                                                                                                                              |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | (207,966 | ) |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Cash flows from financing activities                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|     Payments on notes payable                                                                                                                                                                                                 |   |                                        | (50,000  | )       |                                 |   | (50,000    | )                                                             |   |   | (190,000 | ) |
|     Proceeds from issuance of notes payable                                                                                                                                                                                   |   |                                        | 125,000  |    |                                 |   | 600,000    |                                                               |   |   | 1,265,000 |   |
|     Proceeds from issuance of loans                                                                                                                                                                                           |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | 17,000 |   |
|     Proceeds from issuance of common stock                                                                                                                                                                                    |   |                                        | -        |    |                                 |   | -          |                                                               |   |   | 555,550 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|        Net cash provided by financing activities                                                                                                                                                          |   |                                        | 75,000   |    |                                 |   | 550,000    |                                                               |   |   | 1,647,550 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Net increase (decrease) in cash                                                                                                                                                                                                              |   |                                        | (5,296   | )  |                                 |   | (103,247   | )                                                             |   |   | 5,263 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Cash, beginning of period                                                                                                                                                                                                                    |   |                                        | 10,559   |    |                                 |   | 415,423    |                                                               |   |   | - |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Cash, end of period                                                                                                                                                                                                                          |   | $                                           | 5,263    |    |                                 | $      | 312,176    |                                                               |   | $ | 5,263 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
| Supplemental disclosure of cash flow   information                                                                                                                                                                            |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|     Income taxes paid                                                                                                                                                                                                         |   | $                                           | -        |    |                                 | $      | -          |                                                               |   | $ | - |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|     Interest paid                                                                                                                                                                                                             |   | $                                           | -        |    |                                 | $      | -          |                                                               |   | $ | 7,016 |   |
|                                                                                                                                                                                                                                         |   |                                        |     |    |                                 |   |       |                                                               |   |   |   |   |
|     Non-cash transaction for unproven mineral properties        and assignment of note payable                                                                                             |   | $                                           | -        |    |                                 | $      | -          |                                                               |   | $ | 950,000 |   |

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| (i)          | a mineral lease and option to purchase agreement between KMR and Cliff ZZ L.L.C., which provides that  Cliff ZZ L.L.C shall lease certain patented mining claims located in Esmeralda and Nye Counties, Nevada, including the Tonopah Extension Mine, to KMR, and that KMR shall have the option to acquire ownership of those claims (the “Tonopah Extension Mine”), and |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (ii)   | a mining lease between KMR and Rubicon Resources, Inc., which provides that KMR shall own the exclusive rights to explore, develop and mine certain unpatented mining claims located in Eureka County, Nevada (“Golden Trend Property”).                                                                                                                                            |

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|   | Period ending June 30 |   | Amount |      |
|--------|---------------------------------|--------|--------|-----------|
|   | 2012                            |   | $      | 100,000   |   |
|   | 2013                            |   |   | 200,000   |   |
|   | 2014                            |   |   | 300,000   |   |
|   | 2015                            |   |   | 200,000   |   |
|   |                            |   |   | 800,000   |   |
|   | Less: current portion           |   |   | (200,000) |   |
|   | Long Term                       |   | $      | 600,000   |   |

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|   | Risk-free interest rate                          |  0.25% to 0.41% |   |
|--------|--------------------------------------------------|----------------------|--------|
|   | Expected volatility of common stock              |  100.0%         |   |
|   | Dividend yield                                   |  0.00%          |   |
|   | Expected life of warrants and conversion feature | 5 years              |   |

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|   |                          |   | Number ofWarrants |      |   | WeightedAverageExercisePrice |   | WeightedAverageRemainingContract Term |   |
|--------|-------------------------------|--------|-------------------|-----------|--------|------------------------------|--------|---------------------------------------|--------|
|   | Outstanding December 31, 2011 |   |              | 1,600,000 |   |                         | $      | 0.71                                  |   | 3.6 years |   |
|   | Issued                        |   |              | -         |   |                         |   | -                                     |   |   |   |
|   | Exercised                     |   |              | -         |   |                         |   | -                                     |   |   |   |
|   | Outstanding June 30, 2012     |   |              | 1,600,000 |   |                         | $      | 0.71                                  |   | 3.1 years |   |
|   | Exercisable, June 30, 2012    |   |              | 1,600,000 |   |                         | $      | 0.71                                  |   | 3.1 years |   |
|   |                          |   |              |      |   |                         |   |                                  |   |   |   |

|   | Conversion of notes payable      | 2,200,000 |   |
|--------|----------------------------------|-----------|--------|
|   | Warrants                         | 1,600,000 |   |
|   | Reserved shares at June 30, 2012 | 3,800,000 |   |

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|   |                                 |   | 2012   |     |
|--------|--------------------------------------|--------|--------|----------|
|   |                                 |   |   |     |   |
|   | Federal net operating loss (@ 34%)   |   | $      | 858,000  |   |
|   | Less:  valuation allowance |   |   | (858,000 | ) |
|   |                                 |   |   |     |   |
|   | Net deferred tax asset               |   | $      | ---      |   |

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Item 6.  Exhibits.

| 31      | Certification of Principal Executive and Financial Officer, pursuant to Rule 13a-14 and 15d-14 of the Securities Exchange Act of 1934 (1)                                     |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32      | Certification of Principal Executive and Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1) |
| 101.ins | Instant Document (2)                                                                                                                                                               |
| 101.sch | XBRL Taxonomy Schema Document (2)                                                                                                                                                  |
| 101.cal | XBRL Taxonomy Calculation Linkbase Document (2)                                                                                                                                    |
| 101.def | XBRL Taxonomy Definition Linkbase Document (2)                                                                                                                                     |
| 101.lab | XBRL Taxonomy Label Linkbase Document (2)                                                                                                                                          |
| 101.pre | XBRL Taxonomy Presentation Linkbase Document (2)                                                                                                                                   |

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|                                    | Coyote Resources, Inc.,a Nevada corporation |                                                                                                |
|-----------------------------------------|---------------------------------------------|-----------------------------------------------------------------------------------------------------|
|                                    |                                        |                                                                                                |   |
| Date: August 14, 2012    | By:                                         | /s/ Guy Martin                                                                                 |   |
|                                    |                                        | Guy MartinPresident, Secretary and Treasurer(Principal Executive, Financial and Accounting Officer) |   |

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