----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934:For the quarterly period ended March 31, 2011 |
|---|---------------------------------------------------------------------------------------------------------------------------------|

| 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.) |

| 5490 Longley Lane, Reno, Nevada 89511               |
|-----------------------------------------------------|
| (Address of principal executive offices) (Zip Code) |

| (775) 853-7892                                             |
|------------------------------------------------------------|
| (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 |

----

| Balance Sheets                                       | 3      |
|------------------------------------------------------|--------|
|                                                 |   |
| Statements of Operations                             | 4      |
|                                                 |   |
| Statements of Changes in Stockholders’ Deficit | 5      |
|                                                 |   |
| Statements of Cash Flows                             | 7      |
|                                                 |   |
| Notes to Financial Statements                        | 8      |

----

|                                                                                                     |   | March 31, 2011(Unaudited) |      |   | December 31, 2010 |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------|-----------|--------|-------------------|--------|
| Current assets                                                                                           |   |                      |      |   |              |   |
|      Cash                                                                            |   | $                         | 607,253   |   |              | $      | 415,423 |   |
|     Total current assets                                                             |   |                      | 607,253   |   |              |   | 415,423 |   |
|                                                                                                     |   |                      |      |   |              |   |   |   |
| Property and equipment, net of $2,265 and $2,112   accumulated depreciation, respectively |   |                      | 791       |   |              |   | 944 |   |
|                                                                                                     |   |                      |      |   |              |   |   |   |
| Unproven mineral properties                                                                              |   |                      | 1,194,910 |   |              |   | 1,194,910 |   |
|                                                                                                     |   |                      |      |   |              |   |   |   |
|     Total assets                                                                     |   | $                         | 1,802,954 |   |              | $      | 1,611,277 |   |

| Current liabilities                                                                                                                                                                                                                                                         |   |   |         |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|
|     Accounts payable and accrued expenses                                                                                                                                                                                                                    |   | $      | 36,944       |   |   | $      | 24,033 |   |
|     Notes payable, current                                                                                                                                                                                                                                   |   |   | 125,000      |   |   |   | 100,000 |   |
|     Loans from stockholders                                                                                                                                                                                                                                  |   |   | 17,000       |   |   |   | 17,000 |   |
|                                                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
|     Total current liabilities                                                                                                                                                                                                                           |   |   | 178,944      |   |   |   | 141,033 |   |
|                                                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
| Notes payable, long-term                                                                                                                                                                                                                                                    |   |   | 1,910,946    |   |   |   | 1,369,452 |   |
|                                                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
| Stockholders’ equity (deficit)                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
|             Common stock, $.001 par value; 6,000,000,000 shares authorized,            46,502,120 and 46,502,120 shares issued and outstanding , respectively |   |   |   1,267 |   |   |   |   1,267 |   |
|             Additional paid-in capital                                                                                                                                                                               |   |   | 1,337,383    |   |   |   | 736,783 |   |
|             Accumulated deficit                                                                                                                                                                                      |   |   | (233,532     | )      |   |   | (233,532 | ) |
|             Deficit accumulated during the exploration stage                                                                                                                                                         |   |   | (1,392,054   | )      |   |   | (403,726 | ) |
|                                                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
|     Total stockholders’ equity (deficit)                                                                                                                                                                                                          |   |   | (286,936     | )      |   |   | 100,792 |   |
|                                                                                                                                                                                                                                                                        |   |   |         |   |   |   |   |   |
|             Total liabilities and stockholders’ equity (deficit)                                                                                                                                               |   | $      | 1,802,954    |   |   | $      | 1,611,277 |   |

----

|                                                                                                      |   | For the Three Months ended March 31, 2011 |       |   | For the Three Months ended March 31, 2010 |   |        | For the Period from Inception(October 31, 2006) throughMarch 31, 2011 |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|-------------------------------------------|--------|-------------|-----------------------------------------------------------------------|--------|
| Revenues                                                                                                  |   | $                                         | -          |   |                                      | $      | -           |                                                                  |   | $ | - |   |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Operating expenses                                                                                        |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
|     Exploration costs                                                                      |   |                                      | 157,286    |   |                                      |   |        |                                                                  |   |   | 157,286 |   |
|     Legal and professional                                                                 |   |                                      | 98,666     |   |                                      |   | -           |                                                                  |   |   | 317,496 |   |
|     Officer compensation                                                                   |   |                                      | 105,500    |   |                                      |   |        |                                                                  |   |   | 105,500 |   |
|     General and administrative                                                        |   |                                      | 9,963      |   |                                      |   | -           |                                                                  |   |   | 77,173 |   |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
|     Total operating expenses                                                          |   |                                      | 371,415    |   |                                      |   | -           |                                                                  |   |   | 657,855 |   |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Loss from continuing operations                                                                           |   |                                      | (371,415   | )      |                                      |   | -           |                                                                  |   |   | (657,855 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| 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                                                                                          |   |                                      | (16,913    | )      |                                      |   | -           |                                                                  |   |   | (39,365 | ) |
|             Total other income (expense) |   |                                      | (616,913   | )      |                                      |   | -           |                                                                  |   |   | (734,199 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Loss before discontinued operations and income taxes                                                      |   |                                      | (988,328   | )      |                                      |   | -           |                                                                  |   |   | (1,392,054 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Loss on discontinued operations                                                                           |   |                                      | -          |   |                                      |   | (11,928     | )                                                                     |   |   | (233,532 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Loss before income taxes                                                                                  |   |                                      | (988,328   | )      |                                      |   | (11,928     | )                                                                     |   |   | (1,625,586 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Provision for income taxes                                                                                |   |                                      | -          |   |                                      |   | -           |                                                                  |   |   | - |   |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Net loss                                                                                                  |   | $                                         | (988,328   | )      |                                      | $      | (11,928     | )                                                                     |   | $ | (1,625,586 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Net loss per common share – basic and diluted                                                       |   | $                                         | (0.02      | )      |                                      | $      | (0.00       | )                                                                     |   | $ | (0.01 | ) |
|                                                                                                      |   |                                      |       |   |                                      |   |        |                                                                  |   |   |   |   |
| Weighted average of common   shares – basic and diluted                              |   |                                      | 46,502,120 |   |                                      |   | 270,930,000 |                                                                  |   |   | 234,063,431 |   |

----

|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        | Deficit     |              |     |             |   |                |
|---------------------------------------------------------------------------------|--------|------------------|-------------|--------|--------|--------|---------|---------|--------------------|--------|---------------|-------------|-------------|-------------------|----------|------------------|--------|---------------------|
|                                                                            |   | Common Stock*    |        |   |   |   |    |    |               |   |          |        | Accumulated |              |     |             |   |                |
|                                                                            |   |             |        |   |   |   |    |    | Additional Paid-In |   |          | Accumulated |        |              | During   |             |   | Total Stockholders' |   |
|                                                                            |   | Number of Shares |        |   | Amount |   |    | Capital |               |   |  Deficit |        |        | Exploration Stage |     | Equity (Deficit) |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| Balance, October 31, 2006                                                       |   |             | -           |   |   | $      | -       |    |               | $      | -             |        |        | $                 | -        |             |   | $                   | - |   |   | $ | - |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| Issuance of common stock, November 1, 2006                                      |   |             | 240,000,000 |   |   |   | 240,000 |    |               |   | (236,000      | )           |        |              | -        |             |   |                | - |   |   |   | 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 (Audited)                                            |   |             | 240,000,000 |   |   |   | 240,000 |    |               |   | (235,600      | )           |        |              | (11,014  | )                |   |                | - |   |   |   | (6,614 | ) |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| Issuance of common stock for cash,                                              |   |             | 18,930,000  |   |   |   | 18,930  |    |               |   | 12,620        |        |        |              | -        |             |   |                | - |   |   |   | 31,550 |   |
|    June 30, 2007                                                 |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| Issuance of common stock for cash,                                              |   |             | 12,000,000  |   |   |   | 12,000  |    |               |   | 8,000         |        |        |              | -        |             |   |                | - |   |   |   | 20,000 |   |
|    July  23, 2007                                      |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| 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 |   |   |   | 270,930 |    |               |   | (212,580      | )           |        |              | (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 |   |   |   | 270,930 |    |               |   | (210,180      | )           |        |              | (128,385 | )                |   |                | - |   |   |   | (67,635 | ) |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
| * - Retroactively restated for 60:1 forward split                               |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |
|                                                                            |   |             |        |   |   |   |    |    |               |   |          |        |        |              |     |             |   |                |   |   |   |   |   |   |

----

|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   | Deficit     |                    |     |   |                                 |   |
|---------------------------------------------------------------------------------|--------|------------------|--------------|--------|--------|--------|----------|---------------------------|--------|--------|---------------------|--------|-------------|-------------------------|----------|--------|--------------------------------------|--------|
|                                                                            |   | Common Stock *   |         |   |   |   |     |                      |   |   |                |   | Accumulated |                    |     |   |                                 |   |
|                                                                            |   | Number of Shares |         |   | Amount |   |     | Additional Paid-InCapital |   |   | Accumulated Deficit |   |        | DuringExploration Stage |     |   | Total Stockholders' 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  |   |   |   | 270,930  |                      |   |   | (207,780            | )      |        |                    | (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 | )      |   |   | (224,928 | )                         |   |   | 224,928             |   |        |                    | -        |   |                                 |   | - |   |   |   | - |   |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
| 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 |   |             | -            |   |   |   | -        |                      |   |   | 600                 |   |        |                    | -        |   |                                 |   | - |   |   |   | 600 |   |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
| Amortization of debt discount                                                   |   |             | -            |   |   |   | -        |                      |   |   | 600,000             |   |        |                    | -        |   |                                 |   | - |   |   |   | 600,000 |   |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
| Net loss                                                                        |   |             | -            |   |   |   | -        |                      |   |   | -                   |   |        |                    | -        |   |                                 |   | (988,328 | ) |   |   | (988,328 | ) |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
| Balance, March 31, 2011                                                         |   |             | 46,502,120   |   |   | $      | 1,267    |                      |   | $      | 1,337,383           |   |        | $                       | (233,532 | )      |                                 | $      | (1,392,054 | ) |   | $ | (286,936 | ) |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
| * - Retroactively restated for 60:1 forward split                               |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |
|                                                                            |   |             |         |   |   |   |     |                      |   |   |                |   |        |                    |     |   |                                 |   |   |   |   |   |   |   |

----

|                                                                                                                                                |   |  For the Three Months ended March 31, 2011 |     |   | For the Three Months ended March 31, 2010 |   |    | For the Period from Inception(October 31, 2006) throughMarch 31, 2011 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|----------|--------|-------------------------------------------|--------|---------|-----------------------------------------------------------------------|--------|
| Cash flows from operating activities                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |
|     Net loss                                                                                                                         |   | $                                               | (988,328 | )      |                                      | $      | (11,928 | )                                                                     |   | $ | (1,625,586 | ) |
|         Adjustments to reconcile net loss to net cash used in operating activities                                    |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|              Additional paid-in capital in exchange for facilities provided by related party |   |                                            | 600      |   |                                      |   | 600     |                                                                  |   |   | 10,600 |   |
|              Depreciation                                                               |   |                                            | 153      |   |                                      |   | 153     |                                                                  |   |   | 2,265 |   |
|                  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  expenses                                       |   |                                            | 29,405   |   |                                      |   | 10,223  |                                                                  |   |   | 148,671 |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|          Net cash used in operating activities                                                              |   |                                            | (358,170 | )      |                                      |   | (952    | )                                                                     |   |   | (767,331 | ) |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| Cash flows from investing activities                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|     Purchase of property and equipment                                                                                               |   |                                            | -        |   |                                      |   | -       |                                                                  |   |   | (3,056 | ) |
|     Purchase of unproven mineral properties                                                                                     |   |                                            | -        |   |                                      |   | -       |                                                                  |   |   | (244,910 | ) |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|          Net cash used by investing activities                                                              |   |                                            | -        |   |                                      |   | -       |                                                                  |   |   | (247,966 | ) |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| Cash flows from financing activities                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|     Payments on notes payable                                                                                                        |   |                                            | (50,000  | )      |                                      |   | -       |                                                                  |   |   | (50,000 | ) |
|     Proceeds from issuance of notes payable                                                                                          |   |                                            | 600,000  |   |                                      |   | -       |                                                                  |   |   | 1,100,000 |   |
|     Proceeds from issuance of loans                                                                                                  |   |                                            | -        |   |                                      |   | 4,000   |                                                                  |   |   | 17,000 |   |
|     Proceeds from issuance of common stock                                                                                           |   |                                            | -        |   |                                      |   | -       |                                                                  |   |   | 555,550 |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
|          Net cash provided by financing activities                                                          |   |                                            | 550,000  |   |                                      |   | 4,000   |                                                                  |   |   | 1,622,550 |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| Net increase in cash                                                                                                                                |   |                                            | 191,830  |   |                                      |   | 3,048   |                                                                  |   |   | 607,253 |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| Cash, beginning of period                                                                                                                           |   |                                            | 415,423  |   |                                      |   | 947     |                                                                  |   |   | - |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| Cash, end of period                                                                                                                                 |   | $                                               | 607,253  |   |                                      | $      | 3,995   |                                                                  |   | $ | 607,253 |   |
|                                                                                                                                                |   |                                            |     |   |                                      |   |    |                                                                  |   |   |   |   |
| 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 |   |

----

----

----

----

----

|   • | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   • | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. These inputs rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs are developed based on the best information available in the circumstances and may include the Company's own data.) |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                    |   | March 31, 2011 |    |
|--------|-----------------------------------------|--------|----------------|---------|
|   |                                    |   | Level 1        |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|   | Assets                                  |   |           |    |   |   |   |   |   |   |   |   |   |
|   |   Unproven mineral properties |   | $              | -       |   |   | $ | - |   |   | $ | 1,194,910 |   |   | $ | 1,194,910 |   |
|   | Liabilities                             |   |           | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   |                                    |   | $              | -  |   |   | $ | - |   |   | $ | 1,194,910 |   |   | $ | 1,194,910 |   |

----

| (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”). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                        |   | March 31, 2011 |      |
|--------|-----------------------------|--------|----------------|-----------|
|   | Property acquisition costs: |   |           |      |
|   | Unproven                    |   |           |      |
|   | Opening balance             |   | $              | -         |   |
|   | Nevada claims               |   |           | 1,194,910 |   |
|   | Write downs                 |   |           | (-        | ) |
|   |                        |   |           |      |   |
|   |                        |   | $              | 1,194,910 |   |

----

----

----

----

|   |                                 |   | 2011   |     |
|--------|--------------------------------------|--------|--------|----------|
|   |                                 |   |   |     |   |
|   | Federal net operating loss (@ 34%)   |   | $      | 346,000  |   |
|   | Less:  valuation allowance |   |   | (346,000 | ) |
|   |                                 |   |   |     |   |
|   | Net deferred tax asset               |   | $      | ---      |   |

----

----

----

|   | Date of Note     | Amount of Note  | Number of Warrants |   |
|--------|------------------|----------------------|--------------------|--------|
|   | August 13, 2010  | $500,000             | 500,000            |   |
|   | January 19, 2011 | $100,000             | 100,000            |   |
|   | March 17, 2011   | $500,000             | 500,000            |   |

----

----

| 31 | Certification of Principal Executive and Financial Officer, pursuant to Rule 13a-14 and 15d-14 of the Securities Exchange Act of 1934                                     |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 |

----

|                               | Coyote Resources, Inc.,a Nevada corporation |                                                                                                  |
|------------------------------------|---------------------------------------------|-------------------------------------------------------------------------------------------------------|
|                               |                                        |                                                                                                  |   |
| Date: August 15, 2011    | By:                                         | /s/ Earl Abbott                                                                                  |   |
|                               |                                        | Earl AbbottPresident, Secretary and Treasurer(Principal, Executive, Financial and Accounting Officer) |   |

----