##### 

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  [×]
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended  August 31, 2010   or[   ]
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from  to Commission File Number: 000-53142
  CHANCERY RESOURCES, INC.
 (Exact name of registrant as specified in its charter)
  Nevada
    
    26-4567259(State or other jurisdiction
    
    (IRS Employerof incorporation)
    
    Identification Number)
 4400 Westgrove Drive, Suite 104, Dallas, Texas
    
    75001(Address of principal executive offices)
    
    (Zip Code)
 972-655-9870  Registrants telephone number, including area code
 (Former Name or Former Address, if Changed Since Last Report)
 ×
  [  ]
    
    Large accelerated filer
	
	[  ]
    
    Accelerated filer[  ]
    
    Non-accelerated filer
	
	[×]
    
    Smaller reporting company
 ×


##### 

ConsolidatedBalanceSheets (Unaudited)




August31,  November30,




ASSETS  20102008




CurrentAssets  Cash$355$1,638 Prepaidexpenses-110,471  TotalAssets$355$112,109   LIABILITIESANDSTOCKHOLDERSDEFICIT  CurrentLiabilities  Bankindebtedness
$225
$8,872Accountspayableandaccruedliabilities
190,275
159,394Loanpayable,lessunamortizeddiscountof$7,670and$14,077
44,917
44,917 Duetorelatedparties54,3106,680  TotalCurrentLiabilities289,727219,863  Loanspayable82,33075,923  TotalLiabilities372,057295,786  CommitmentsandContingencies  StockholdersDeficit  Preferredstock:2,500,000,000sharesauthorized,$0.00001parvalue;
nosharesissuedandoutstanding(November30,2008Noneissued)

SeriesAconvertiblepreferredstock:40,000,000sharesauthorized,$0.00001parvalue;
31,000,000sharesissuedandoutstanding
310
310Commonstock:2,500,000,000sharesauthorized,$0.00001parvalue;
32,250,000sharesissuedandoutstanding
322
322Additionalpaid-incapital
1,163,227
1,088,418Donatedcapital
18,000
13,500Accumulatedothercomprehensiveloss
(165)
Deficitaccumulatedduringtheexplorationstage(1,553,396)(1,286,227)TotalStockholdersDeficit
(371,702)
(183,677)TotalLiabilitiesandStockholdersDeficit
$355
$112,109




ConsolidatedStatementsofOperations (Unaudited)




Forthe ThreeMonthsEnded  Forthe ThreeMonthsEnded  Forthe NineMonthsEnded  Forthe NineMonthsEnded  AccumulatedfromSeptember12,2006(DateofInception)




Expenses  August31,August31,August31,August31,toAugust31, 20092008200920082009




Generalandadministrative
$38,727
$28,027
$57,306
$63,480
$187,706Consultingfees
62,052

184,809

194,809Managementservices

1,500

4,500
12,750Impairmentofmineralpropertycosts

70,000
444
120,000
1,121,074Mineralpropertycosts
13,703

13,703

19,778Rent
1,500
-
4,500
1,794
10,872TotalOperatingExpenses
115,982
99,527
260,762
189,774
1,546,989InterestExpense
2,151
-
6,407
-
6,407NetLoss
(118,133)
(99,527)
(267,169)
(189,774)
(1,553,396)NetLossPerShareBasicandDiluted
$(0.00)
$(0.00)
$(0.01)
$(0.00)
N/AWeightedAverageCommonSharesOutstanding
32,250,000
30,250,000
32,250,000
109,010,000
N/A     StatementofOtherComprehensiveLoss:NetLoss
(118,133)
(99,527)
(267,169)
(189,774)
(1,553,396)Foreigncurrencytranslationadjustment
(93)

(165)

(165)TotalComprehensiveLoss
$(118,226)
$ (99,527)
$ (267,334)
$(189,774)
$(1,553,561)




ConsolidatedStatementsofCashFlows (Unaudited)




Forthe NineMonthsEnded August31,  Forthe NineMonthsEnded August31,  Accumulated from September12,2006(DateofInception)




20092008  CashFlowsFromOperatingActivities  Netlossfortheperiod
Adjustmentstoreconcilenetlosstonetcashusedinoperatingactivities:
Donatedservicesandexpenses
$(267,169)


4,500
$(189,744)


4,500
$(1,553,396)


18,000Impairmentofmineralpropertycosts
444
120,000
1,117,374Amortizationofdiscount
6,407

9,103Share-basedcompensation
184,809

194,809Changesinoperatingassetsandliabilities:Prepaidexpenses
471
488
-Accountspayableandaccruedliabilities
30,881
12,171
40,275NetCashUsedInOperatingActivities
(39,657)
(52,585)
(173,835)CashFlowsFromInvestingActivitiesMineralpropertycosts
(444)
(50,000)
(50,444)NetCashUsedInInvestingActivities
(444)
(50,000)CashFlowsFromFinancingActivitiesAdvancesfromrelatedparty
47,630
22,088
119,524Bankindebtedness
(8,647)

225 Proceedsfromthesaleofcommonstock--105,050  NetCashProvidedByFinancingActivities38,98320,000224,799  EffectofExchangeRateChangesonCash
(165)

(165)DecreaseinCash
(1,283)
(80,527)
355Cash-BeginningofPeriod
1,638
98,531
-Cash-EndofPeriod
$355
$18,004
355SupplementalDisclosuresInterestpaid
Incometaxespaid
$
$
$
$
_
-




NotestotheConsolidatedFinancialStatements (Unaudited)   1.BasisofPresentation  Theaccompanying unauditedinterimfinancialstatementsofChancery Resources,Inc.,havebeen prepared inaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericaand therulesofthe SecuritiesandExchangeCommission,andshouldbereadinconjunctionwiththeauditedfinancialstatementsandnotestheretocontained inChancery's Annual Report filedwith theSEC on Form10-K.Intheopinion of management,alladjustments,consisting ofnormalrecurringadjustments, necessary forafairpresentationof financialpositionandtheresultsofoperationsfortheinterimperiodspresentedhavebeenreflectedherein. Theresultsofoperationsforinterimperiodsarenotnecessarilyindicativeoftheresultstobeexpectedforthefullyear. Notestothefinancialstatementswhichsubstantially duplicatethedisclosurecontainedintheauditedfinancialstatements forfiscal2008asreportedintheForm10-Khavebeenomitted.  Effectivethisquarter,theCompanyimplementedSFASNo.165,SubsequentEvents(SFAS165). This standardestablishesgeneralstandardsofaccountingforanddisclosureofeventsthatoccurafterthe balance sheetdatebutbeforefinancialstatementsareissued.TheadoptionofSFAS165didnotimpacttheCompanys financialpositionorresultsofoperations.TheCompanyevaluatedalleventsortransactionsthatoccurredafter August31, 2009 up through October 20, 2009, the date the Company issued theseconsolidated financial statements.Duringthisperiod,theCompanydidnothaveanymaterialrecognizablesubsequentevents.  Wedonotexpecttheadoptionofrecentlyissuedaccountingpronouncementstohaveasignificantimpactonourresultsofoperations,financialpositionorcashflow.  2.GoingConcern  Theseconsolidatedfinancialstatementshavebeenpreparedonagoingconcernbasis,whichimpliestheCompany willcontinuetorealizeitsassetsanddischargeitsliabilitiesinthenormalcourseofbusiness.TheCompanyhasnotgeneratedanyrevenuesinceinceptionandhasneverpaidanydividendsandisunlikelytopaydividendsorgenerateearningsintheimmediateorforeseeablefuture.ThecontinuationoftheCompanyasagoingconcernisdependentupon the continued financialsupportfrom itsshareholders,the ability of the Company to obtain necessaryequityordebtfinancingtocontinueoperations,andtheattainmentofprofitableoperations.AsatAugust 31,2010,theCompanyhasaworkingcapitaldeficitof$289,372andhasaccumulatedlossesof$1,553,396since inception.ThesefactorsraisesubstantialdoubtregardingtheCompanysabilitytocontinueasagoingconcern. Theseconsolidatedfinancialstatementsdonotincludeanyadjustmentstotherecoverabilityandclassificationof recordedassetamountsandclassificationofliabilitiesthatmightbenecessaryshouldtheCompanybeunabletocontinue asagoingconcern.  3.RelatedPartyTransactions  a)FortheninemonthsendedAugust31,2010,theCompanyrecognized$Nil(August31,2008-$4,500)fordonatedservicesprovidedbytheformerPresidentoftheCompany.  b)FortheninemonthsendedAugust31,2010,theCompanyincurred$4,500(August31,2008-$1,794)indonatedrenttoacompanycontrolledbythePresidentoftheCompany,andisindebtedtothePresidentfor $51,780(November30,2008-$4,150)foradvancesandexpensespaidforonbehalfofthe Company,whichisnon-interestbearing,unsecuredanddueondemand.  c)AsofAugust31,2010,theCompanyisindebtedtotheChiefExecutiveOfficeroftheCompanyfor$2,530(November30,2008-$2,530)forexpensespaidforonbehalfoftheCompany,whichis non-interestbearing,unsecuredanddueondemand.




4.LoansPayable  a)AsofAugust31,2010,theCompanyisindebtedtotheformerPresidentoftheCompanyfor $44,917 (November30,2008-$44,917)forcashadvancesandexpensespaidforonbehalfoftheCompany,whichisnon-interestbearing,unsecuredanddueondemand.  b) OnAugust8,2008,theCompanyreceiveda$20,000loanwhichisnon-interestbearing,unsecuredanddueonAugust8,2010.  c)OnJuly25,2008,theCompanyreceiveda$70,000loanwhichisnon-interestbearing,unsecuredanddueonJuly25,2010.Animplicitinterestrateof15%wasrecognizedresultinginandiscountof$14,077onthedateoftheloan.Forthenine-monthsendedAsatAugust31,2010,  5.MineralProperties  a)OnJanuary19,2009,theCompanyacquiredthroughitswholly-ownedsubsidiaryChanceryCanada, a 100%interestincertainmineralinterestslocatedinBritishColumbia,CanadaknownastheFiddlerCreekPropertybythepurchaseofaFreeMinerCertificatefor$444(CDN$500).AsatAugust31, 2009,theCompanyrecognizedanimpairmentlossof$444,asithasnotyetbeendetermined whetherthereareprovenorprobablereservesontheproperty.  6.Commitments  a)OnFebruary1,2009,theCompanyenteredintoanagreementwithaconsultanttoprepareatechnicalreportofaminingpropertyinconsiderationforthelesserof$700perdayor$5,000.  7.CommonStock  a)OnFebruary9,2009,theCompanyapprovedtheadoptionofthe2009StockOptionPlanwhichpermitsthe Companytoissueupto6,450,000sharesofcommonstocktodirectors,officers,employeesandconsultantsoftheCompany.  b)OnNovember6,2008,theCompanyenteredintoaconsultingagreementwithaDirectoroftheCompany, fortheprovisionofmanagementandoperationalservicesforaperiodofoneyear.Inconsiderationfortheseservices,theCompanyissued1,000,000sharesofrestrictedcommonstockwithafairvalueof$240,000. FortheninemonthsendedAugust31,2009,$184,809(August31,2008-$Nil)waschargedtooperations.









Item2. Management'sDiscussionandAnalysisof FinancialConditionandResultsofOperations.  FORWARD-LOOKINGSTATEMENTS  Thisquarterlyreportcontainsforward-lookingstatements.Thesestatementsrelatetofutureeventsorour futurefinancialperformance.Insomecases,youcanidentifyforward-lookingstatementsbyterminologysuchas"may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or thenegativeofthesetermsorothercomparableterminology.Thesestatementsareonlypredictionsandinvolveknown andunknownrisks,uncertaintiesandotherfactors,thatmaycauseourorour industry'sactualresults,levelsofactivity, performance or achievements to be materially different from any future results, levels of activity,performanceorachievementsexpressedorimpliedbytheseforward-lookingstatements.Althoughwebelievethattheexpectationsreflectedintheforward-looking statementsarereasonable,wecannotguaranteefutureresults, levelsofactivity,performanceorachievements.Exceptasrequiredbyapplicablelaw,includingthesecuritieslawsoftheUnitedStates,wedonotintendtoupdateanyoftheforward-lookingstatementstoconformthesestatementstoactualresults.  OurunauditedfinancialstatementsarestatedinUnitedStatesDollars(US$)andarepreparedinaccordancewith UnitedStatesGenerallyAcceptedAccountingPrinciples.Thefollowingdiscussionshouldbereadin conjunctionwithourfinancialstatementsandtherelatednotesthatappearelsewhereinthisquarterlyreport. Thefollowing discussioncontainsforward-lookingstatementsthatreflectourplans,estimatesandbeliefs.Ouractualresultscould differmateriallyfromthosediscussedintheforwardlookingstatements.Factorsthatcouldcauseorcontributeto suchdifferencesinclude,butarenotlimitedto,thosediscussedbelowandelsewhereinthisquarterlyreport.  Inthisquarterlyreport,unlessotherwisespecified,alldollaramountsareexpressedinUnitedStatesdollars. All referencesto"US$"refertoUnitedStatesdollarsandallreferencesto"commonshares"refertothecommonsharesinourcapitalstock.  As used in thisquarterly report,the terms"we","us","our","ourcompany" and Chancery mean ChanceryResources,Inc.andourwhollyownedsubsidiariesChanceryMiningCanadaLtd.andMineraChanceryColumbia,unlessotherwiseindicated.  GeneralOverview  WewereincorporatedintheStateofNevadaonSeptember12,2006.Weareanexplorationstagecorporation.An explorationstagecorporationisonethatisengagedinthesearchfrommineraldepositsorreserveswhicharenotineitherthedevelopmentorproductionstage.  Wemaintainourstatutoryregisteredagent'sofficeatTheCorporationTrustCompanyofNevada,6100NeilRoad,Suite500,Reno,Nevada89511andourbusinessofficeandmailingaddressis4400WestgroveDrive,Suite104,Dallas,Texas75001.Ourtelephonenumberis(214)288-9897.  SinceOctober2006,weheldtherightstonineMineralTitlesOnlinecellsreferredtoastheHunter property,throughGeoffreyGachallan,aformerdirectorandofficerofourcompany,whoheldthepropertyforusintrust.OnSeptember9,2008,ourrightstotheclaimexpired.  OnMarch19,2008,weenteredintoaminingacquisitionagreementwithAltosdeAmadorS.A.,whereinwehaveagreedtopurchasea100%interestincertainmineralclaimsinValparaiso,Antioquia,Colombia,knownastheElCafetalMine.  Asconsiderationforthepurchase,wehaveagreedtopaytoAltosdeAmador$270,000cash,tobeprovided asfollows:  (a)$50,000tobeprovidedonsigningoftheacquisitionagreement(paid);  (b)$70,000tobeprovidedwithin30daysofsigningtheacquisitionagreement(paid);and  (c)$150,000tobeprovidedwithin90daysofsigningtheacquisitionagreement.  3




Inaddition,wehaveagreedtosplitprofitsfromminingoperations60%toourcompanyand40%tothevendoruntilsuchtimeaswehavepaid$210,000ofthepurchaseprice,afterwhich,profitsshallbesplit 90%toourcompanyand10%tothevendor.Wehavetherighttoacquirethevendors10%profitinterest atanytimefor $370,000.  EffectiveApril4,2008,weenteredintoanamendingagreementwithAltosdeAmadorwhereinthetermsofprofit splithavebeenamendedsothat,uponcommencementofminingoperations,allprofitsfromthesaleoforeshallbe split60%toourcompanyand40%tothevendor.Uponourcompanyhavingpaidafurther$210,000,inadditiontothefundspayablepursuanttothetermsoftheminingacquisitionagreement,suchprofitsshallthenbesplit90%toourcompanyand10%tothevendor.Ourcompanywillhavetherighttoacquirethevendors10%profitinterestat anytimeuponpaymentofanadditional$370,000.TherearecurrentlysomegovernmentalrequirementsthatneedtobefulfilledfortheElCafetalminingtitle.Theserequirementsincludethepresent titleowneramendingaPTOreporttocomplywithcertainspecificationsandpayingcertainannualgovernmentalfees,allofwhicharecurrentlybeingcompleted.  Todate,wehavenotmadethefinal$150,000paymentasrequiredbytheminingacquisitionagreement.Weplantoholdsuchpaymentuntiltheabovetitlerequirementshavebeencompliedwithandoralternativelyto pay theoutstandinggovernmentalfeesdueon theEl Cafetal mine and deducttheseamountsfrom the final $150,000payment.AsourinitialminingacquisitionagreementwithAltosdeAmadorisnolongeringoodstandingduetocertainmisrepresentationonwarrantiesandrepresentationsmadeonAltosdeAmadorsside,wehavesignedaMiningAcquisitionAgreementonApril14,2009directlywiththeowners oftheproperty,InversionesMidasLimitada,tocontinuenegotiations,whichhasafinalpaymentof$150,000minuspaymentstotheoutstanding governmentalfeesdueontheElCafetalminewithnotimeframeperiodforpayment.  EffectiveApril14,2009,weenteredintoanagreementwithInversionesMidaswhereinthetermsofprofitsplitsothat,uponcommencementofminingoperations,allprofitsfromthesaleoforeshallbesplit60%toourcompanyand40%tothevendor.Uponourcompanyhavingpaidafurther720millionColombianpesos(estimatedvalueof landandequipment),InversionesMidasagreestogiveandtransfer50%ownershipoftheMiningtitle,inadditiontothefundspayablepursuanttothetermsoftheminingacquisitionagreement,suchprofitsshallthenbesplit90%toourcompanyand10%tothevendor.Ourcompanywillhavetherighttoacquirethevendors10%profitinterestatanytimeupon paymentof additional780 million Colombian pesos, and thentheremaining50% of theTitleownershipwillbetransferredtoourcompany.  OnOctober16, 2008, RafaelA.PinedoandJeffrey Fanningwereappointedasdirectorsofourcompany.  Subsequenttosuchappointments,onOctober16,2008,JuanRestrepoGutierrezresignedaspresidentandadirectorofourcompanyandRafaelA.Pinedowasappointedpresident.Mr.Restreporemainsaschief executiveofficer, chieffinancialofficer,secretaryandtreasurer.Inaddition,Mr.Fanningwasappointedvicepresidentofexploration.OurboardofdirectorsnowconsistsofRafaelA.PinedoandJefferyFanning.  OnNovember4,2008,ourboardofdirectorsdesignated40,000,000sharesofourpreferredstockastheSeriesA PreferredStock.EachshareofSeriesAPreferredStockisconvertibleintosharesofourcommonstockonthebasisofone(1)shareofSeriesAPreferredStockforone-fifth(1/5)ofoneshareofourCommonStock;  OnNovember6,2008,weenteredintoaconsultingagreementwithRafaelPinedo,ourPresident.Thetermoftheagreementisforaperiodofoneyearandinconsiderationfortheservicestobeprovidedwehaveagreedtoissue 1,000,000restrictedsharesofourcommonstocktoMr.Pinedo.  OnNovember6,2008,weenteredintoamineralpropertyacquisitionagreementwithCBResourcesLtd., BNPResourcesLLCandRafaelPinedotoacquirecertainmineralpropertyinterestsknownastheHCL Property(the HCL Property is comprised in part by our formerly owned Hunter Property). The closing of the transactions contemplatedinthemineralpropertyacquisitionagreementoccurredonNovember6,2008.Inaccordancewiththe closingofthemineralpropertyacquisitionagreement,weagreedtoissue1,000,000restrictedsharesofourcommonstocktoCBResourcesLtd.,25,000,000restrictedsharesofourSeriesAPreferred StocktoRafaelPinedoand 6,000,000 restricted shares of our Series A Preferred Stock to BNP Resources LLC. Due to land ownershiprestrictionsunderBritishColumbialaws,weenteredintoatrustagreementwithCBResources Ltd.,whereinCBResourcesLtd.agreedtoholdthemineralpropertyinterestsintrustforourcompany.  4




OnNovember12,2008,weincorporatedawhollyownedsubsidiarypursuanttothelawsoftheProvinceofBritish ColumbiaunderthenameChanceryMiningCanadaLtd.  On January 19, 2009, we acquired through our wholly owned subsidiary, Chancery Mining Canada Ltd., anundividedonehundredpercent(100%)interestincertainmineralinterestslocatedinBritishColumbia, CanadaknownastheFiddlerCreekProperty.  TheFiddlerCreekPropertyiscomprisedof25mineralclaims,totaling465.74hectareslocatedwithintheOminecaMiningDivisioninnorthwesternBritishColumbia.Theacquiredblockofclaimscountswith recordsofapastproducerFiddlerCreek,whichdescribesthegeologyofthePropertyasanareathatisunderlainbyargillitesofthe JurassictoCretaceousBowserLakeGroup,inwhichauriferousquartzveinsareprobablesourcesforplacergold alongFiddlerCreek(BCMinfile103I206).Thedeposittypesthathistorically predominateintheFiddler-DoreenareaareSilver,Gold,LeadandZinc.Geophysical,soil,rockandcoresampleswillbeanalyzedsoon;anexplorationprogramrecommendedbyaqualifiedgeologypersonwillbereleasedwhenfinalized.  OnJanuary30,2009,weincorporatedawhollyownedsubsidiarypursuanttothelawsofColumbiaunderthename MineraChanceryColombia.  OnJuly24,2009,ChanceryResources,Inc.(the"Company")receivedaNI43-101CanadianCompliantGeologicalreportontheElCafetalPropertyaspreparedandsubmittedbyJamesR.Reeves,Reg.,P.Geo.,inhiscapacityasa geologicalconsultanttotheCompany.TechnicalReportwasformattedonCanadianNational Instrument43-101 ("NI43-101"), which is a mineral resource classification scheme that provides strict guidelines for the publicdisclosureofscientificandtechnicalinformationrelatingtomineralproperties.  OnAugust3rd,2009,VincentHigginswasappointedasindependent directorofourcompany. Subsequenttosuchappointment,onAugust4,2009,JuanRestrepoGutierrezresigned aschiefexecutiveofficerandremainsaschiefoperationsofficer,secretaryanddirectorofourcompanyandRafaelA.Pinedowasappointedchiefexecutiveandratifiedaspresident.  Mr.Higgins,age43,isrecognizedinternationalleaderintraining,leadershipdevelopment,andmulticulturalteam building. FoundedtheInstituteforEffectiveLeadership.ServedastheDirectoroftheLumenInstitute, Dallas, TexasandfoundedtheDallasbranch. Trilingual:English,Spanish,andItalian.Extensiveexperienceinoperationsandgrowthofinternationalnon-profitorganizationsincludinginstitutionalfundraisingand networking.Obtained undergraduatedegreeinPhysics,SummaCumLaudeattheUniversityofDallas,TX.DoctoraltrackinHighEnergyPhysics,atPurdueUniversity,WestLafayette,Indianaanddegreesin PhilosophyandTheologyatthePontificalUniversityReginaApostolorum,inRome,Italy.  Therearenofamilyrelationshipswithanyofourdirectorsandofficers.  Otherthanassetoutherein,wehavenotbeeninvolvedinanybankruptcy,receivershiporsimilarproceedings,norhavewebeenapartytoanymaterialreclassification,merger,consolidationorpurchaseorsaleofa significantamountofassetsnotintheordinarycourseofourbusiness.  OurCurrentBusiness  Weareanexplorationstageminingcompanyengagedin the explorationofmineralsonourproperties.  OurcurrentoperationalfocusistoconductexplorationactivitiesonourHCLProperty,tocompletethetermsofthe miningacquisitionagreementwith Altos deAmador S.A.fortheElCafetal Mine andtoconduct explorationactivitiesonourFiddlerCreekProperty.  HCLProperty  GeneralInformation  TheHCLPropertyisaminingclaimlocatedinMerritt,BritishColumbia,Canada,andtotals415.04hectares or 1,026acresapproximately.  Thefollowingisalistoftenurenumbers,claim,andexpirationdateofourclaims:




TenureNumber
ClaimName
No.MTOCells
ExpirationD592560
HCL
20
10/04/200  Acellisanarea,whichappearselectronicallyontheBritishColumbiaInternetMineralsTitlesOnlineGridandwasformerlycalledaclaim.AclaimisagrantfromtheCrownoftheavailablelandwithinthecellstotheholdertoremoveandsellminerals.Theonlinegridisthegeographicalbasisforthecell.Formerly,theclaimwasestablishedbystickingstakesinthegroundtodefinetheareaandthenrecordingthestakinginformation.ThestakingsystemisnowantiquatedinBritishColumbiaandhasbeenreplacedwiththeonlinegrid.TheclaimisregisteredinthenameoftheCBResourcesLtd.whohasagreedtoholdtheclaimintrustonbehalfofChanceryResources.AsOctober06, 2008,itsnotyetbeendeterminedwhetherthereareprovenorprobablereservesontheproperty.Therearenonativelandclaimsthataffecttitletotheproperty. LocationandAccess  TheHCLmineralclaimiscomprisedof20contiguouscellstotalling415.0483hectares.Thecenteroftheproperty islocatedatthelatitude50o2'14"Nandthelongitudeis120o47'1"W.Theclaimismotorvehicleaccessiblefrom theTownofMerritt,B.C.bytraveling19mileseastalongHighway#5beyondtheVillageofQuilchena,B.C.totheMinnieLakecut-offandthenfor18milessouthbygravelranchroadstothemineralclaim.  BelowismapoftheHCLClaim:  Thelinkedimagecannotbedisplayed. Thefilemayhavebeenmoved,renamed,ordeleted.Verifythatthelinkpointstothecorrectfileandlocation.                                      Physiography  TheTownofMerritt,BritishColumbiawhichlies37milesbyroadnorthwestoftheHCLmineralclaim offers muchof the necessary infrastructure required to base and carry-out an exploration program(accommodations,communications,equipmentandsupplies).MerrittB.C.ishighwayaccessiblefromVancouver,B.C.inafewhours




bytravelingovertheCoquihalla(tollsection)highway,inthetimeittakestotravel200miles.The overnight Greyhoundbusserviceisapopularwaytosend-insamplesandtoreceiveadditionalequipmentandsupplies.Theclaimarearangesinelevationfrom2,850feetto3,400feetmean sealevel.The physiographicsettingofthepropertycanbedescribedasrounded,openrange,plateauterrainthathas been surficiallyalteredbothbytheerosionalandthedepositional(driftcover)effectsofglaciation. Thicknessofdriftcoverinthevalleysmayvary considerably.Freshwaterlakesandstreamsareabundantinthearea.BelowisamapoftheHCLPropertylocation:  Thelinkedimagecannotbedisplayed. Thefilemayhavebeenmoved,renamed,ordeleted.Verifythatthelinkpointstothecorrectfileandlocation.                                         Location,HistoryandLandTenure  ThegeologyoftheHCLmineralclaimmaybedescribedasbeingunderlainbyunitsoftheNicolaGroup.Someor allof these units may be found to host economic mineralization. The property geological setting offersgoodunderlyingpossibilitiesandalloverburdenareasshouldbecheckedifafieldprogramisundertaken. The deposittypesthathistoricallypredominateinthegeneralareaare,asthelargertarget,asa porphyry-typebasemetal (copper-gold-palladiumorcopper-molybdenum)occurrencewithperipheralbaseandpreciousmetaloccurrencesasveinsand/orcontactzonesofmineralization.ThemostprolifichostinthisareaistheNicolaGroupandesitictuffs thatareoftenskarnedoraltered.AnyoccurrencesofPrincetonGroupsediments,i.e.shales,sanstone,etc.shouldbe checkedthoroughlyforcoaloccurrencesandpossiblycoal-bedmethanegaspossibilities.  RequirementsforTitle  TitletothepropertyhasalreadybeengrantedCBResourcesLtd.,whoholdstheclaimintrustforourcompany.ToobtainaFreeMiner'sCertificate,whichisrequiredtoholdaminingclaiminBritishColumbia,Section8(1)ofthe B.C. Mineral Tenure Act (MTA) stipulates that a corporation must be registered under the British ColumbiaBusinessCorporationsAct.Section8(2)oftheMTAstipulatesthatanindividualapplicantmusteitherbearesidentofCanadaorbeauthorizedtoworkinCanada.AsthecorporationisnotregisteredinBritishColumbiatheclaimis




heldintrustfortheCompanybyCBResourcesLtd.,acorporationregisteredundertheBritishColumbiaBusiness CorporationsAct.ThemineraltitleclaimhasbeenregisteredwiththeGovernmentofBritishColumbia.  FiddlerCreekProperty  GeneralInformation  TheFiddlerCreekPropertyiscomprisedof25mineralclaims,totalling465.74hectareslocatedwithintheOminecaMiningDivisioninnorthwesternBritishColumbia.Theacquiredblockofclaimscountswith recordsofapastproducerFiddlerCreek,whichdescribesthegeologyofthePropertyasanareathatisunderlainbyargillitesofthe JurassictoCretaceousBowserLakeGroup,inwhichauriferousquartzveinsareprobablesourcesforplacergold alongFiddlerCreek(BCMinfile103I206).Thedeposittypesthathistorically predominateintheFiddler-DoreenareaareSilver,Gold,LeadandZinc.Geophysical,soil,rockandcoresampleswillbeanalyzedsoon;anexplorationprogramrecommendedbyaqualifygeologypersonwillbereleasedwhenfinalized.  Thefollowingisalistoftenurenumber,claimname,andexpirationdateofourclaims:  TenureNumber
ClaimName
No.MTOCells
ExpirationD597810
FiddlerCreek
25
01/19/201  BelowisamapoftheFiddlerCreekProperty:  Thelinkedimagecannotbedisplayed. Thefilemayhavebeenmoved,renamed,ordeleted.Verifythatthelinkpointstothecorrectfileandlocation.                               ClimateandLocalResources  TheclimateintheareaistemperatewithsignificantcoastalinfluencecomingfromthewestuptheSkeenavalleyaswellasfromthesouthwestuptheKitimatvalley.Thenorthernlocationallowsforlonghoursofdaylightduringthesummer,whilesignificantsnowfalloccursduringwinterseason,whichlimitsfieldwork.FieldseasoniscomprisedbetweenJuneandearlySeptember.  TheclosestairportistheTerraceairport,whichreceivesdailyflightsfromVancouverandservesasatransportationhubforthearea.TheCanadianNationalRailwayandYellowheadHighway(Highway16)gothroughTerracealong theSkeenaRiverandconnecttheinteriorofB.C.totheoceanportsofPrinceRupertandKitimat.




ElCafetalMine  GeneralInformation  TheElCafetalMineislocatedintheRiverbasinoftheHondastream,ontheEasternflankoftheWesternMountainrange,inthemunicipalityofValparaiso,Antioquia,Colombia.  Thepropertycoversanareaof135hectares.ThegeologyofthezoneincludessedimentaryrocksandbasalticlavaandAndesiteofTertiaryagewithseveralveinsandveinswithdifferentthicknessesandsulfideconcentrationsupto 80%.  Themineralizationconsistsofseveralveinswiththicknessesbetween0.15and1.1m,composedbyquartz,pyriteandpartlyfreegoldfittedinandesitelava,thestripsof0.15mofthicknesswithgreatsulfide concentrationsare commonmainlypyriteuptoan80%withintermediatezonesofrockwithscatteredsulfides,intheendorsementsthesalbandarecommontoconformamineralizedzoneupto1.1m.  WerecentlycompletedpreliminarysamplingandchemicalanalysesontheElCafatelproperty.Ourmanagementisawaitingtheresultsfromthepreliminarysamplingprogramandwillupdateshareholdersinthenearfuture.  ResultsofOperations  ThreeMonthsEndedAugust31,2009andAugust31,2008  ThefollowingsummaryofourresultsofoperationsshouldbereadinconjunctionwithourfinancialstatementsforthequarterendedAugust31,2009whichareincludedherein.  OuroperatingresultsforthethreemonthsendedAugust28,2009,forthethreemonthsendedAugust31,2008andthechangesbetweenthoseperiodsfortherespectiveitemsaresummarizedasfollows:




ThreeMonthsEnded August31, 2009     ThreeMonthsEnded August31, 2008  ChangeBetweenThreeMonthPeriod Ended August31,2009 andAugust31,2008




Revenue$ Nil$ Nil$ Nil Generalandadministrative38,72728,02710,700 Consultingfees62,052-62,052 Managementservices-1,500(1,500)Impairmentofmineralpropertycosts-70,000(70,00)Mineralpropertycosts13,703-13,703 Rent1,500-1,500 NetLoss(115,982)(99,527)(16,455)  Ouraccumulatedlossesincreasedto$1,458,752asofAugust31,2010.Ourfinancialstatementsreportanetlossof $267,169fortheninemonthperiodendedAugust31,2009comparedtoanetlossof$189,774fortheninemonthperiodendedAugust31,2008.  AsatAugust31,2009,wehad$289,727incurrentliabilities.Ournetcash atAugust31,2009was$355comparedto$1,638atNovember30,2008.




EquityCompensation  Wecurrentlydonothaveanystockoptionorequitycompensationplansorarrangements.  LiquidityandFinancialCondition

WorkingCapitalAt
August31,
2009
At
November30,
2008Currentassets
$355
$112,109Currentliabilities
289,727
219,863Workingcapital
$(289,372)
$(107,754)CashFlowsNineMon
August31,
2009
thsEnded
August31,
2008Netcashusedinoperatingactivities
$(39,657)
$(50,527)Netcashusedininvestingactivities
(444)
(50,000)Netcashprovidedbyfinancingactivities
38,983
20,000Netincrease(decrease)incashduringperiod
$(1,283)
$(80,527)  AsofAugust31,2009,ourcompanyhadworking capitaldeficiencyof$289,372.We estimateour operatingexpensesandworkingcapitalrequirementsforthenexttwelvemonthperiodtobeasfollows:  EstimatedFundingRequiredDuringtheTwelveMonthPeriodEndingAugust31,2010  Generalandadministrative
$60,000ExplorationExpenses
$449,135Professionalfees
$35,000Total
544,135  Weplantoraiseadditionalcapitalrequiredtomeetimmediateshort-termneedsandtomeetthebalanceof ourestimatedfundingrequirementsforthetwelvemonths,primarilythroughtheprivateplacementofoursecurities.  Wearenotawareofanyknowntrends,demands,commitments,eventsoruncertaintiesthatwillresultinorthatarereasonablylikelytoresultinourliquidityincreasingordecreasinginanymaterialway.  FutureFinancings  Wewillrequireadditionalfinancinginordertoenableustoproceedwiththecontinuedexplorationofourcurrent properties,includingapproximately$95,000overthenext12monthstopayforourongoingoperating expenses. Theseexpensesincludeaudit,legalandofficeexpenses.Thesecashrequirementsareinexcessofourcurrentcash andworkingcapitalresources.Accordingly,wewillrequireadditionalfinancinginordertocontinueoperationsand torepayourliabilities.Thereisnoassurancethatanypartywilladvanceadditionalfundstousinordertoenableustosustainourplanofoperationsortorepayourliabilities.  Weanticipatecontinuingtorelyonequitysalesofourcommonstockinordertocontinuetofundour businessoperations.Issuancesofadditionalshareswillresultindilutiontoourexistingstockholders.Thereisnoassurancethatwewillachieveanyadditionalsalesofourequitysecuritiesorarrangefordebtorotherfinancingtofundourplannedbusinessactivities.




Wepresentlydonothaveanyarrangementsforadditionalfinancingfortheexpansionofourexplorationoperations, andnopotentiallinesofcreditorsourcesoffinancingarecurrentlyavailableforthepurposeofproceedingwithourplanofoperations.  ContractualObligations  Asasmallerreportingcompany,wearenotrequiredtoprovidetabular disclosureobligations.  GoingConcern  We have suffered recurring losses from operations. The continuation of our company as a going concern isdependentuponourcompanyattainingandmaintainingprofitableoperationsandraisingadditional capital.The financialstatementsdonotincludeanyadjustmentrelatingtotherecoveryandclassificationof recordedassetamountsortheamountandclassificationofliabilitiesthatmightbenecessaryshouldour companydiscontinueoperations.  Duetotheuncertaintyofourabilitytomeetourcurrentoperatingexpensesandthecapitalexpensesnotedabove,intheirreportontheannualfinancialstatementsfortheyearendedNovember30,2008,ourindependent auditorsincludedanexplanatoryparagraphregardingthesubstantialdoubtaboutourabilitytocontinueasagoingconcern.Ourfinancialstatementscontainadditionalnotedisclosuresdescribingthecircumstancesthatleadtothisdisclosurebyourindependentauditors.  The continuation of our business is dependent upon us raising additional financial support. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders.Obtainingcommercialloans,assumingthoseloanswouldbeavailable,willincreaseourliabilitiesandfuturecashcommitments.  Off-BalanceSheetArrangements  Wehavenooff-balancesheetarrangementsthathaveorarereasonablylikelytohaveacurrentorfutureeffecton ourfinancialcondition,changesinfinancialcondition,revenuesorexpenses,resultsofoperations,liquidity,capitalexpendituresorcapitalresourcesthatismaterialtostockholders.  ApplicationofCriticalAccountingPolicies  Ourfinancialstatementsandaccompanyingnotesarepreparedinaccordancewithgenerallyaccepted accounting principlesusedintheUnitedStates.Preparingfinancialstatementsrequiresmanagementtomake estimatesandassumptionsthataffect the reported amounts of assets, liabilities,revenue,and expenses. These estimates andassumptionsareaffectedbymanagement'sapplicationofaccountingpolicies.We believethatunderstandingthe basisandnatureoftheestimatesandassumptionsinvolvedwiththefollowingaspectsofourconsolidatedfinancialstatementsiscriticaltoanunderstandingofourfinancials.  Thediscussionandanalysisofourfinancialconditionandresultsofoperationsarebaseduponour consolidatedfinancialstatements,whichhavebeenpreparedinaccordancewiththeaccountingprinciplesgenerallyacceptedinthe United States of America. Preparing financial statements requires managementto make estimates and assumptionsthataffect the reported amounts of assets, liabilities,revenue,and expenses. These estimates andassumptionsareaffectedbymanagementsapplicationofaccountingpolicies. Webelievethatunderstandingthebasisandnatureoftheestimatesandassumptionsinvolvedwiththefollowingaspectsofourfinancialstatementsiscriticaltoanunderstandingofourfinancialstatements.  MineralPropertyCosts  TheCompanyhasbeenintheexplorationstagesinceitsinceptionandhasnotyetrealizedanyrevenuesfromits plannedoperations.Itisprimarilyengagedintheacquisitionandexplorationofminingproperties.Mineralpropertyexplorationcostsareexpensedasincurred.Mineralpropertyacquisitioncostsareinitiallycapitalizedwhenincurred




usingtheguidanceinEITF04-02,WhetherMineralRightsAreTangibleorIntangibleAssets.The CompanyassessesthecarryingcostsforimpairmentunderSFASNo.144,AccountingforImpairmentorDisposalofLongLivedAssetsateachfiscalquarterend.Whenithasbeendeterminedthatamineralpropertycanbeeconomically developedasaresultofestablishingprovenandprobablereserves,thecoststhenincurredtodevelopsuchproperty,arecapitalized.Suchcostswillbeamortizedusingtheunits-of-productionmethod over theestimatedlifeoftheprobable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will bechargedtooperations.  Long-livedAssets  In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Companytestslong-livedassetsorassetgroupsforrecoverabilitywheneventsorchangesincircumstancesindicatethattheircarryingamountmaynotberecoverable.Circumstanceswhichcouldtriggerareviewinclude,butarenot limitedto:significantdecreasesinthemarketpriceoftheasset;significantadversechangesinthebusinessclimateorlegalfactors;accumulationofcostssignificantlyinexcessoftheamountoriginallyexpectedfortheacquisitionorconstructionoftheasset;currentperiodcashfloworoperatinglossescombinedwithahistoryoflossesoraforecastofcontinuinglossesassociatedwiththeuseoftheasset;andcurrentexpectationthattheassetwillmorelikelythannotbesoldordisposedsignificantlybeforetheendofitsestimatedusefullife.Recoverabilityisassessedbasedonthe carrying amount of the asset and its fair value which is generally determined based on the sum of theundiscountedcashflowsexpectedtoresultfromtheuseandtheeventualdisposaloftheasset,aswellasspecificappraisalincertaininstances.Animpairmentlossisrecognizedwhenthecarryingamountisnotrecoverableandexceedsfairvalue.  FinancialInstruments  Thefairvaluesoffinancialinstruments,whichincludecash,accountspayableandaccruedliabilities,amountsduetoarelatedpartyandloanspayable,wereestimatedtoapproximatetheircarryingvaluesduetotheimmediateor short-term maturity of these financial instruments. The Companys operations are in Canada, which results inexposuretomarketrisksfromchangesinforeigncurrencyrates.Thefinancialriskisthe risk totheCompanysoperationsthatarisefromfluctuationsinforeignexchangeratesandthedegreeofvolatilityoftheserates.Currently, theCompanydoesnotusederivativeinstrumentstoreduceitsexposuretoforeigncurrencyrisk.  IncomeTaxes  TheCompanyaccountsforincometaxesusingtheassetandliabilitymethodinaccordancewithSFASNo. 109,AccountingforIncomeTaxes.Theassetandliabilitymethodprovidesthatdeferredtaxassetsandliabilitiesarerecognizedfortheexpectedfuturetaxconsequencesoftemporarydifferencesbetweenthefinancialreportingandtaxbasesofassetsandliabilities,andforoperatinglossandtaxcredit carry-forwards. Deferredtaxassetsandliabilitiesaremeasuredusingthecurrentlyenactedtaxratesandlawsthatwillbeineffectwhenthedifferencesareexpectedtoreverse.TheCompanyrecordsavaluationallowancetoreducedeferredtaxassetstotheamountthatisbelievedmorelikelythannottoberealized.  Stock-basedCompensation  TheCompanyrecordsstock-basedcompensationinaccordancewithSFASNo.123R,ShareBased Payments,usingthefairvaluemethod.Alltransactionsinwhichgoodsorservicesaretheconsideration receivedforthe issuanceofequityinstrumentsareaccountedforbasedonthefairvalueoftheconsideration receivedorthefairvalueoftheequityinstrumentissued,whicheverismorereliablymeasurable.  RecentAccountingPronouncements  In June 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position EITF 03-6-1, DeterminingWhetherInstrumentsGrantedinShare-BasedPaymentTransactionsAreParticipating Securities.FSP EITF 03-6-1 addresses whether instruments granted in share-based payment transactionsareparticipating securitiespriortovesting,andthereforeneedtobeincludedinthecomputationofearningspershareunderthetwo-




classmethodasdescribedinFASBStatementofFinancialAccountingStandardsNo.128,EarningsperShare. FSPEITF03-6-1iseffectiveforfinancialstatementsissuedforfiscalyearsbeginningonorafterDecember 15, 2008andearlieradoptionisprohibited.Theadoptionofthisstatementisnotexpectedtohaveamaterialeffectonourcompanysconsolidatedfinancialstatements.  InMay2008,theFASBissuedSFASNo.162,TheHierarchyofGenerallyAcceptedAccounting Principles.SFASNo.162identifiesthesourcesofaccountingprinciplesandtheframeworkforselectingtheprinciplestobeusedinthepreparationoffinancialstatementsofnongovernmentalentitiesthatarepresented inconformitywith generallyacceptedaccountingprinciplesintheUnitedStates.Itiseffective60daysfollowingtheSECsapprovalof thePublicCompanyAccountingOversightBoardamendmentstoAUSection411,TheMeaningofPresentFairlyinConformityWithGenerallyAcceptedAccountingPrinciples.Theadoptionofthisstatementisnotexpectedtohaveamaterialeffectonourcompanysconsolidatedfinancialstatements.  InMarch2008,theFASBissuedSFASNo.161,DisclosuresaboutDerivativeInstrumentsandHedgingActivities  an amendment toFASB Statement No. 133.SFAS No. 161 isintendedtoimprovefinancialstandards for derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understandtheireffectsonanentity'sfinancialposition,financialperformance,andcashflows.Entitiesarerequiredtoprovideenhanceddisclosuresabout:(a)howandwhyanentityusesderivativeinstruments;(b)howderivative instrumentsandrelatedhedgeditemsareaccountedforunderSFASNo.133anditsrelatedinterpretations;and(c) howderivativeinstrumentsandrelatedhedgeditemsaffectanentitysfinancialposition,financialperformance,and cashflows.SFASNo.161iseffectiveforfinancialstatementsissuedforfiscalyearsbeginningafterNovember15, 2008, with early adoption encouraged. The adoption of this statement did not have a material effect on ourcompany'sconsolidatedfinancialstatements.  InDecember2007,theFASBissuedSFASNo.141(revised2007),BusinessCombinations.SFASNo. 141(revised2007)establishesprinciplesandrequirementsforhowtheacquirerofabusinessrecognizesandmeasuresinitsfinancialstatementstheidentifiableassetsacquired,theliabilitiesassumed,andanynon-controllinginterestintheacquiree.Thestatementalsoprovidesguidanceforrecognizingandmeasuring thegoodwillacquiredinthebusinesscombinationanddetermineswhatinformationtodisclosetoenable usersofthefinancialstatementstoevaluate the nature and financial effects of the business combination. SFAS No. 141 (revised 2007) appliesprospectivelytobusinesscombinationsforwhichtheacquisitiondateisonorafterthebeginningofthefirstannualreportingperiodbeginningonorafterDecember15,2008.Theadoptionofthisstatementisnotexpectedtohavea materialeffectonourcompany'sconsolidatedfinancialstatements.  In December 2007, the FASB issued SFAS No. 160, Non-controlling Interests in Consolidated Financial StatementsLiabilitiesanAmendmentofARBNo.51.ThisstatementamendsARB51toestablishaccountingandreportingstandardsfortheNon-controllinginterestinasubsidiaryandforthedeconsolidationofasubsidiary.Thisstatementiseffectiveforfiscalyears,andinterimperiodswithinthosefiscalyears,beginningonorafterDecember 15,2008,andearlieradoptionisprohibited.Theadoptionofthisstatementisnotexpectedtohaveamaterialeffectonourcompanysconsolidatedfinancialstatements.  InFebruary2007,theFASBissuedSFASNo.159,TheFairValueOptionforFinancialAssetsand FinancialLiabilitiesIncludinganAmendmentofFASBStatementNo.115.Thisstatementpermitsentities tochooseto measuremanyfinancialinstrumentsandcertainotheritemsatfairvalue.MostoftheprovisionsofSFASNo.159applyonlytoentitiesthatelectthefairvalueoption.However,theamendmenttoSFASNo.115AccountingforCertain Investments in Debt and Equity Securitiesapplies to all entities with available-for-sale and trading securities.SFASNo.159iseffectiveasofthebeginningofanentitysfirstfiscalyearthatbeginsafterNovember 15,2007.EarlyadoptionispermittedasofthebeginningofafiscalyearthatbeginsonorbeforeNovember 15, 2007,providedtheentityalsoelectstoapplytheprovisionofSFASNo.157,FairValueMeasurements.Theadoptionofthisstatementdidnothaveamaterialeffectonourcompany'sconsolidatedfinancialstatements.  InSeptember2006,theFASBissuedSFASNo.157,FairValueMeasurements.TheobjectiveofSFASNo.157istoincreaseconsistencyandcomparabilityinfairvaluemeasurementsandtoexpanddisclosuresaboutfairvaluemeasurements.SFASNo.157definesfairvalue,establishesaframeworkformeasuringfairvalue ingenerallyacceptedaccountingprinciples,andexpandsdisclosuresaboutfairvaluemeasurements.SFAS No.157applies underotheraccountingpronouncementsthatrequireorpermitfairvaluemeasurementsanddoesnotrequireany




newfairvaluemeasurements.TheprovisionsofSFASNo.157areeffectiveforfairvaluemeasurementsmadeinfiscalyearsbeginningafterNovember15,2007.Theadoptionofthisstatementdidnothaveamaterialeffectonourcompany'sconsolidatedfinancialstatements.  Item3.QuantitativeDisclosuresAboutMarketRisks  Asasmaller reporting company, wearenot required to providethe information required bythisItem.  Item4T.ControlsandProcedures.  Wemaintaindisclosurecontrolsandproceduresthataredesignedtoensurethatinformationrequiredtobedisclosed inourreportsfiledundertheSecuritiesExchangeActof1934,asamended,isrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSecuritiesandExchangeCommission'srulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtoourmanagement,includingour president(ourprincipalexecutiveofficer)ourchieffinancialofficer(ourprincipalfinancialofficerand principalaccountingofficer)to allowfortimelydecisionsregardingrequireddisclosure.Indesigningand evaluatingourdisclosurecontrolsand procedures, our management recognizes that any controls and procedures, no matter how well designed andoperated,canprovideonlyreasonableassuranceofachievingthedesiredcontrolobjectives,andourmanagementisrequiredtoapplyitsjudgmentinevaluatingthecost-benefitrelationshipofpossiblecontrolsandprocedures.  Under the supervision and with the participation of our management, including our president (our principal executiveofficer)ourchieffinancialofficer(ourprincipalfinancialofficerandprincipalaccounting officer),wehave conducted an evaluation of the effectiveness of the design and operation of our disclosure controls andprocedures,asdefinedinRules13a-15(e)and15d-15(e)undertheSecuritiesandExchangeActof1934,asofthe endoftheperiodcoveredbythisreport.Basedonthisevaluation,ourpresident(ourprincipalexecutiveofficer)our chief financial officer (our principal financial officer and principal accounting officer) concluded as of the evaluation date that our disclosure controls and procedures were effective such that the material informationrequiredtobeincludedinourSecuritiesandExchangeCommissionreportsisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedinSECrulesandformsrelatingtoourcompany,particularlyduringtheperiodwhenthisreportwasbeingprepared.  Additionally,therewerenochangesinourinternalcontrolsorinotherfactorsthatcouldsignificantlyaffectthese controls subsequent to the evaluation date. We have not identified any significant deficiencies or materialweaknessesinourinternalcontrols,andthereforetherewerenocorrectiveactionstaken.  PARTII-OTHERINFORMATIONItem1.LegalProceedings. Weknowofnomaterial,existingorpendinglegalproceedingsagainstourcompany,norareweinvolved asa plaintiffinanymaterialproceedingorpendinglitigation.Therearenoproceedingsinwhichanyofourdirectors, officersoraffiliates,oranyregisteredorbeneficialshareholder,isanadversepartyorhasamaterialinterestadversetoourinterest.  Item1A.RiskFactors  Muchoftheinformationincludedinthisquarterlyreportincludesorisbaseduponestimates,projectionsorother"forwardlookingstatements".Suchforwardlookingstatementsincludeanyprojectionsorestimatesmadebyusandourmanagement inconnectionwith ourbusinessoperations.While theseforward-looking statements,andanyassumptionsuponwhichtheyarebased,aremadeingoodfaithandreflectourcurrent judgmentregardingthe direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions,projections,assumptionsorotherfutureperformancesuggestedherein.




Suchestimates,projectionsorother"forwardlookingstatements"involvevariousrisksanduncertaintiesasoutlinedbelow.Wecautionthereaderthatimportantfactorsinsomecaseshaveaffectedand,inthefuture,couldmateriallyaffectactualresultsandcauseactualresultstodiffermateriallyfromtheresultsexpressedin anysuchestimates,projectionsorother"forwardlookingstatements".  Ourcommonsharesareconsideredspeculativeduringthedevelopmentofournewbusinessoperations.Prospectiveinvestorsshouldconsidercarefullytheriskfactorssetoutbelow.  RISKSRELATEDTOOURBUSINESS  Allofourpropertiesareintheexplorationstage.Thereisnoassurancethatwecanestablishtheexistenceofanymineralresourceonanyofourpropertiesincommerciallyexploitablequantities.Untilwecandoso,we cannot earn any revenues from operations and if we do not do so we will lose all of the funds that we expend on exploration.Ifwedonotdiscoveranymineralresourceinacommerciallyexploitablequantity,ourbusinesscouldfail.  Despiteexplorationworkonourmineralproperties,wehavenotestablishedthatanyofthemcontainanymineralreserve,norcantherebeanyassurancethatwewillbeabletodoso.Ifwedonot,ourbusinesscouldfail.  AmineralreserveisdefinedbytheSecuritiesandExchangeCommissioninitsIndustryGuide7(whichcan beviewedovertheInternetathttp://www.sec.gov/divisions/corpfin/forms/industry.htm#secguide7)asthat part ofamineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.Theprobabilityofanindividualprospecteverhavinga"reserve"thatmeetstherequirementsoftheSecuritiesandExchangeCommission'sIndustryGuide7isextremelyremote;inallprobabilityourmineralresourcepropertydoesnotcontainany'reserve'andanyfundsthatwespendonexplorationwillprobablybelost.  Evenifwedoeventuallydiscoveramineralreserveononeormoreofourproperties,therecanbenoassurancethat wewillbeabletodevelopourpropertiesintoproducingminesandextractthoseresources.Bothmineralexploration anddevelopmentinvolveahighdegreeofriskandfewpropertieswhichareexploredareultimatelydevelopedintoproducingmines.  Thecommercialviabilityofanestablishedmineraldepositwilldependonanumberoffactorsincluding,bywayofexample,thesize,gradeandotherattributesofthemineraldeposit,theproximityoftheresourceto infrastructuresuchasasmelter,roadsandapointforshipping,governmentregulationandmarketprices.Mostofthesefactors willbebeyondourcontrol,andanyofthemcouldincreasecostsandmakeextractionofany identifiedmineralresourceunprofitable.  Mineral operations are subject to applicable law and government regulation. Even if we discover a mineralresource in a commercially exploitable quantity, these laws and regulations could restrict or prohibit theexploitationofthatmineralresource.Ifwecannotexploitanymineralresourcethatwemight discoveronourproperties,ourbusinessmayfail.  Bothmineralexplorationandextractionrequirepermitsfromvariousforeign,federal,state,provincialand local governmentalauthoritiesandaregovernedbylawsandregulations,includingthosewithrespectto prospecting,minedevelopment,mineral production,transport,export,taxation,labourstandards, occupational health,wastedisposal,toxicsubstances,landuse,environmentalprotection,minesafetyand othermatters.Therecanbenoassurancethatwewillbeabletoobtainormaintainanyofthepermitsrequiredforthecontinuedexplorationofour mineralpropertiesorfortheconstructionandoperationofamineonourpropertiesateconomicallyviablecosts.Ifwecannotaccomplishtheseobjectives,ourbusinesscouldfail.  Webelievethatweareincompliancewithallmateriallawsandregulationsthatcurrentlyapplytoouractivitiesbuttherecanbenoassurancethatwecancontinuetoremainincompliance.Currentlawsandregulations couldbeamendedandwemightnotbeabletocomplywiththem,asamended.Further,therecanbenoassurancethatwe willbeabletoobtainormaintainallpermitsnecessaryforourfutureoperations,orthatwewillbeabletoobtain




themonreasonableterms.Totheextentsuchapprovalsarerequiredandarenotobtained,wemaybedelayedorprohibitedfromproceedingwithplannedexplorationordevelopmentofourmineralproperties.  Ifweestablishtheexistenceofamineralresourceonanyofourpropertiesinacommerciallyexploitablequantity,wewillrequireadditionalcapitalinordertodevelopthepropertyintoaproducingmine.Ifwecannotraisethisadditionalcapital,wewillnotbeabletoexploittheresource,andourbusinesscouldfail.  Ifwedodiscovermineralresourcesincommerciallyexploitablequantitiesonanyofourproperties,wewill berequiredtoexpendsubstantialsumsofmoneytoestablishtheextentoftheresource,developprocessestoextractitanddevelopextractionandprocessingfacilitiesandinfrastructure.Althoughwemayderive substantialbenefits fromthediscoveryofamajordeposit,therecanbenoassurancethatsucharesourcewillbelargeenoughtojustifycommercial operations, nor can there be any assurance that we will be able to raise the funds required fordevelopmentonatimelybasis.Ifwecannotraisethenecessarycapitalor completethenecessaryfacilitiesandinfrastructure,ourbusinessmayfail.  Mineralexplorationanddevelopmentis subject to extraordinaryoperatingrisks. Wedonotcurrentlyinsureagainsttheserisks.Intheeventofacave-inorsimilaroccurrence,ourliabilitymayexceedourresources, whichwouldhaveanadverseimpactonourcompany.  Mineralexploration,developmentandproductioninvolvesmanyriskswhichevenacombinationof experience,knowledgeandcarefulevaluationmaynotbeabletoovercome.Ouroperationswillbesubjecttoallthehazardsandrisksinherentintheexplorationformineralresourcesand,ifwediscoveramineral resourceincommercially exploitablequantity,ouroperationscouldbesubjecttoallofthehazardsandrisksinherentinthedevelopmentand productionofresources,includingliabilityforpollution,cave-insorsimilarhazardsagainstwhichwecannotinsureoragainstwhichwemayelectnottoinsure.Anysucheventcouldresultinworkstoppagesanddamagetoproperty,includingdamagetotheenvironment.Wedonotcurrentlymaintainanyinsurancecoverageagainsttheseoperating hazards.Thepaymentofanyliabilitiesthatarisefromanysuchoccurrencewouldhaveamaterialadverseimpactonourcompany.  Mineralpricesaresubjecttodramaticandunpredictablefluctuations.  Weexpecttoderiverevenues,ifany,eitherfromthesaleofourmineralresourcepropertiesorfromtheextractionandsaleofpreciousandbasemetalssuchasgold,silverandcopper.Thepriceofthosecommoditieshasfluctuated widelyinrecentyears,andisaffectedbynumerousfactorsbeyondourcontrol,includinginternational,economicandpolitical trends,expectations of inflation,currency exchange fluctuations, interest rates,global or regionalconsumptive patterns, speculative activities and increased production due to new extraction developments andimprovedextractionandproductionmethods.Theeffectofthesefactorsonthepriceofbaseandpreciousmetals, and therefore the economic viability of any of our exploration properties and projects, cannot accurately bepredicted.  Theminingindustryishighlycompetitiveandthereisnoassurancethatwewillcontinuetobesuccessful inacquiringmineralclaims.Ifwecannotcontinuetoacquirepropertiestoexploreformineralresources,wemayberequiredtoreduceorceaseoperations.  Themineralexploration,development,andproductionindustryislargelyun-integrated.Wecompetewith other explorationcompanieslookingformineralresourceproperties.Whilewecompetewithotherexplorationcompaniesintheefforttolocateandacquiremineralresourceproperties,wewillnotcompetewiththemfortheremovalorsalesofmineralproductsfromourpropertiesifweshouldeventuallydiscoverthepresenceof theminquantitiessufficienttomakeproductioneconomicallyfeasible.Readilyavailablemarketsexist worldwideforthesaleofmineralproducts.Therefore,wewilllikelybeabletosellanymineralproductsthatweidentifyandproduce.  Inidentifyingandacquiringmineralresourceproperties,wecompetewithmany companiespossessing greaterfinancialresourcesandtechnicalfacilities.Thiscompetitioncouldadverselyaffectourabilityto acquiresuitableprospectsforexplorationinthefuture.Accordingly,therecanbenoassurancethatwewillacquireanyinterestin additionalmineralresourcepropertiesthatmightyieldreservesorresultincommercialminingoperations.




RisksRelatedToOurCompany  Wehavealimited operatinghistoryonwhichto baseanevaluationof ourbusinessandprospects.  WehavebeeninthebusinessofexploringmineralresourcepropertiessinceSeptember2006andwehavenotyetlocatedanymineralreserve.Asaresult,wehaveneverhadanyrevenuesfromouroperations.In addition,ouroperatinghistoryhasbeenrestrictedtotheacquisitionandexplorationofourmineralpropertiesandthisdoesnotprovideameaningfulbasisforanevaluationofourprospectsifweeverdeterminethatwehaveamineralreserve andcommencetheconstructionandoperationofamine.Wehavenowaytoevaluatethelikelihoodofwhetherourmineralpropertiescontain any mineral reserveor,iftheydo thatwe will be able tobuild oroperate a mine successfully.Weanticipatethatwewillcontinuetoincuroperatingcostswithoutrealizinganyrevenuesduringtheperiodwhenweareexploringourproperties.Wethereforeexpectto continuetoincursignificantlossesintothe foreseeablefuture.Werecognizethatifweareunabletogeneratesignificantrevenuesfromminingoperationsand anydispositionsofourproperties,wewillnotbeabletoearnprofitsorcontinueoperations.Atthisearlystageofouroperation,wealsoexpecttofacetherisks, uncertainties,expensesanddifficultiesfrequentlyencounteredbycompaniesatthestartupstageoftheir businessdevelopment.Wecannotbesurethatwewillbesuccessfulinaddressingtheserisksand uncertaintiesandourfailuretodosocouldhaveamateriallyadverseeffectonourfinancialcondition.Thereisnohistoryuponwhichtobaseanyassumptionastothelikelihoodthatwewillprovesuccessfuland wecanprovideinvestorswithnoassurancethatwewillgenerateanyoperatingrevenuesoreverachieveprofitableoperations.  Thefactthatwehavenotearnedanyoperatingrevenuessinceourincorporationraisessubstantialdoubtaboutourabilitytocontinuetoexploreourmineralpropertiesasagoingconcern.  Wehavenotgeneratedanyrevenuefromoperationssinceourincorporationandweanticipatethatwewillcontinuetoincuroperatingexpenseswithoutrevenuesunlessanduntilwe areabletoidentifyamineral resourceinacommerciallyexploitablequantityononeormoreofourmineralpropertiesandwebuildandoperateamine.Wehadcashintheamountof$355asofAugust31,2009.AtAugust31,2009,wehad workingcapitaldeficitof $289,972.Weincurredanetlossof$267,169fortheninemonthsendedAugust31,2009and$1,372,578 sinceinceptiononSeptember12,2006.Weestimateouraveragemonthlyoperatingexpensestobeapproximately$7,800 to$9,500,includingmineralpropertycosts,managementservicesandadministrativecosts.Shouldtheresultsofourplannedexplorationrequireustoincreaseourcurrentoperatingbudget,wemayhave toraiseadditionalfundsto meetourcurrentlybudgetedoperatingrequirementsforthenext12months.Aswecannotassurealenderthatwe willbeabletosuccessfullyexploreanddevelopourmineralproperties,wewill probablyfinditdifficulttoraisedebtfinancingfromtraditionallendingsources.Wehavetraditionallyraised ouroperatingcapitalfromsalesofequityanddebtsecurities,buttherecanbenoassurancethatwewillcontinuetobeabletodoso.Ifwecannotraise themoneythatweneedtocontinueexplorationofourmineralproperties,wemaybeforcedtodelay,scaleback,or eliminateourexplorationactivities.Ifanyoftheseweretooccur,thereisasubstantialriskthatourbusinesswouldfail.  Thesecircumstancesleadourindependentregisteredpublicaccountingfirm,intheirreportdatedAugust31,2009, tocommentaboutourcompanysabilitytocontinueasagoingconcern.Managementhasplanstoseekadditional capitalthroughaprivateplacementandpublicofferingofitscapitalstock.Theseconditionsraisesubstantialdoubtaboutourcompanysabilitytocontinueasagoingconcern.Althoughtherearenoassurancesthatmanagements planswillberealized,managementbelievesthatourcompanywillbeabletocontinueoperationsinthefuture.The consolidatedfinancialstatementsdonotincludeanyadjustmentsrelatingtotherecoverabilityandclassificationofrecordedassets,ortheamountsofandclassificationofliabilitiesthatmightbenecessaryintheeventourcompany cannotcontinueinexistence.Wecontinuetoexperiencenetoperatinglosses.  RisksAssociatedwithOurCommonStock  TradingontheOTCBulletinBoardmaybevolatileandsporadic,whichcoulddepressthemarketpriceof ourcommonstockandmakeitdifficultforourstockholderstoreselltheirshares.  OurcommonstockisquotedontheOTCBulletinBoardserviceoftheFinancialIndustryRegulatory Authority. TradinginstockquotedontheOTCBulletinBoardisoftenthinandcharacterizedbywidefluctuationsintrading




prices,duetomanyfactorsthatmayhavelittletodowithouroperationsorbusinessprospects.Thisvolatilitycoulddepressthemarketpriceofourcommonstockforreasonsunrelatedtooperatingperformance.Moreover,theOTCBulletinBoardisnotastockexchange,andtradingofsecuritiesontheOTCBulletinBoardisoftenmoresporadicthan the trading of securities listed on a quotation system like NASDAQ or a stock exchange like Amex.Accordingly,shareholdersmayhavedifficultyresellinganyoftheirshares.  Ourstockisapennystock.TradingofourstockmayberestrictedbytheSECspennystockregulations and FINRAssalespracticerequirements,whichmaylimit astockholdersabilitytobuyandsellourstock.  Ourstockisapennystock.TheSecuritiesandExchangeCommissionhasadoptedRule15g-9which generallydefinespennystocktobeanyequitysecuritythathasamarketprice(asdefined)lessthan$5.00pershareoranexercisepriceoflessthan$5.00pershare,subjecttocertainexceptions.Oursecuritiesare coveredbythepennystockrules,whichimposeadditionalsalespracticerequirementsonbroker-dealerswho selltopersonsotherthan establishedcustomersandaccreditedinvestors.Thetermaccreditedinvestorrefersgenerallytoinstitutionswithassetsinexcessof$5,000,000orindividualswithanetworthinexcessof$1,000,000orannualincomeexceeding $200,000or$300,000jointlywiththeirspouse.Thepennystockrulesrequireabroker-dealer,priortoatransactioninapennystocknototherwiseexemptfromtherules,todeliverastandardizedriskdisclosuredocumentinaformpreparedbytheSECwhichprovidesinformationaboutpennystocksandthenatureandlevelofrisksinthepenny stockmarket.Thebroker-dealeralsomustprovidethecustomerwithcurrentbidandofferquotationsforthepennystock,thecompensationofthebroker-dealeranditssalespersoninthetransactionandmonthlyaccountstatementsshowingthemarketvalueofeachpennystockheldinthecustomersaccount.Thebidandofferquotations,andthebroker-dealerandsalespersoncompensationinformation,mustbegiventothecustomerorallyorinwritingpriorto effectingthetransactionandmustbegiventothecustomerinwritingbeforeorwiththecustomersconfirmation.Inaddition,thepennystockrulesrequirethatpriortoatransactioninapennystocknototherwiseexemptfromtheserules,thebroker-dealermustmakeaspecialwrittendeterminationthatthepennystockisasuitableinvestmentfor thepurchaserandreceivethepurchaserswrittenagreementtothetransaction.Thesedisclosurerequirementsmay havetheeffectofreducingtheleveloftradingactivityinthesecondarymarketforthestockthatissubjecttothesepennystockrules.Consequently, these pennystockrulesmay affecttheabilityofbroker-dealerstotradeoursecurities.Webelievethatthepennystockrulesdiscourageinvestorinterestin,andlimitthemarketabilityof,ourcommonstock.  InadditiontothepennystockrulespromulgatedbytheSecuritiesandExchangeCommission,the Financial IndustryRegulatoryAuthorityhasadoptedrulesthatrequirethatinrecommendinganinvestmenttoacustomer,a broker-dealermusthavereasonablegroundsforbelievingthattheinvestmentissuitableforthatcustomer.Priortorecommendingspeculative low priced securities to their non-institutional customers, broker-dealers must makereasonableeffortstoobtaininformationaboutthecustomersfinancialstatus,taxstatus,investmentobjectivesand otherinformation.Underinterpretationsoftheserules,theFinancialIndustry RegulatoryAuthoritybelievesthat thereisahighprobabilitythatspeculativelow-pricedsecuritieswillnotbesuitableforatleastsomecustomers.The FinancialIndustryRegulatoryAuthorityrequirementsmakeitmoredifficultforbroker-dealerstorecommendthattheircustomersbuyourcommonstock,whichmaylimityourabilitytobuyandsellourstock.  OtherRisks  Trends,RisksandUncertainties  Wehavesoughttoidentifywhatwebelievetobethemostsignificantriskstoourbusiness,butwecannotpredictwhether,ortowhatextent,anyofsuchrisksmayberealizednorcanweguaranteethatwehave identifiedall possible risks that might arise. Investors should carefully consider all of such risk factors before making aninvestmentdecisionwithrespecttoourcommonstock.  Item2.UnregisteredSalesofEquitySecuritiesandUseofProceeds  None.




Item3.DefaultsUponSeniorSecurities.  None.  Item4.SubmissionofMatterstoaVoteofSecurityHolders.  None.  Item5.OtherInformation  None.  Item6.Exhibits.  ExhibitsrequiredbyItem601ofRegulationS-K  ExhibitDescription Number (31)Rule13a-14(a)/15d-14(a)Certifications 31.1*Section302CertificationunderSarbanes-OxleyActof2002ofRafaelPinedo (32)Section1350Certifications 32.1*Section906CertificationunderSarbanes-OxleyActof2002ofRafaelPinedo   19




SIGNATURES  PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.  CHANCERYRESOURCES,INC. (Registrant)   Dated:October14,2010/s/RafaelPinedoRafaelPinedoPresidentandDirector (PrincipalExecutiveOfficer)    20




EXHIBIT31.1  CERTIFICATIONPURSUANTTO 18U.S.C.ss1350,ASADOPTEDPURSUANTTOSECTION302OFTHESARBANES-OXLEYACTOF2002  I,RafaelPinedo,certifythat:  1.IhavereviewedthisquarterlyreportonForm10-QofChanceryResources,Inc.;  2.Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostatea materialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;  3.Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;  4. The registrant'sother certifying officer(s) and Iare responsibleforestablishing and maintaining disclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternal controlover financialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:  (a)Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingto theregistrant,including its consolidated subsidiaries, is made known to us by others within those entities,particularlyduringtheperiodinwhichthisreportisbeingprepared;  (b)Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancial reporting to be designed under our supervision, to provide reasonable assurance regarding thereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;  (c)Evaluatedtheeffectivenessoftheregistrant'sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and  (d)Disclosedinthisreportanychangeintheregistrant'sinternalcontroloverfinancialreporting thatoccurredduringtheregistrant'smostrecentfiscalquarter(theregistrant'sfourthfiscalquarterinthe caseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant'sinternalcontroloverfinancialreporting;and  5.Theregistrant'sothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant'sauditorsandtheauditcommitteeofthe registrant's boardofdirectors(orpersonsperformingtheequivalentfunctions):  (a)Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternal controloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant's abilitytorecord,process,summarizeandreportfinancialinformation;and  (b)Any fraud, whether or not material, that involves management or other employees who have asignificantroleintheregistrant'sinternalcontroloverfinancialreporting.  Date:October14,2010    /s/RafaelPinedo RafaelPinedo




PresidentandDirector

PrincipalExecutiveOfficer









EXHIBIT32.1



CERTIFICATIONPURSUANTTO

18U.S.C.SECTION1350,ASADOPTEDPURSUANTTOSECTION906OFTHESARBANES-OXLEYACTOF2002



I,RafaelPinedo,herebycertify,pursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906of the

Sarbanes-OxleyActof2002,that:



(1)theQuarterlyReportonForm10-QofChanceryResources,Inc.fortheperiodendedAugust31,2009(the

"Report")fullycomplieswiththerequirementsofSection13(a)or15(d)oftheSecuritiesExchangeActof

1934;and



(2)theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofChanceryResources,Inc.



Dated:October20,2009



/s/RafaelPinedoRafaelPinedoPresidentandDirector

(PrincipalExecutiveOfficer)

ChanceryResources,Inc.



Asigned original of this writtenstatement required by Section 906, or other documentauthenticating,acknowledging,orotherwiseadoptingthesignaturethatappearsintypedformwithintheelectronicversionofthiswrittenstatementrequiredbySection906,hasbeenprovidedtoChanceryResources,Inc.andwillberetainedbyChanceryResources,Inc.andfurnishedtotheSecuritiesandExchangeCommissionoritsstaffuponrequest.



---

##### 

SIGNATURES




|                       |     |                          |  | 
|---------------------- | --- | ------------------------ |  | 
|                       |     | CHANCERY RESOURCES, INC. | 
|Date: October 14, 2010 | By: | /s/ Rafael Pinedo        | 
|                       |     | Rafael Pinedo            | 
|                       |     | President and Director   | 
|