UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                FORM 10-KSB

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                  For the fiscal year ended SEPTEMBER 30, 2006

               TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

     For the transition period from _________________ to __________________

                       Commission file number: 333-132648

                                 Nugget Resources Inc.
                 (Name of small business issuer in its charter)



             Nevada    				     Applied For
    (State or other jurisdiction of     (I.R.S. Employer Identification No.)
     incorporation or organization)

                             7322 Prince Edward Street
		  Vancouver, British Columbia, Canada  V5X 3P7
                    (Address of principal executive offices)

                                 (250) 385-8444
                           Issuer's telephone number

Securities to be registered pursuant to Section 12(b) of the Act:

	Title of each class           Name of each exchange on which
	to be so registered           each class is to be registered

              None	                           None

Securities to be registered pursuant to Section 12(g) of the Act:

                        	 Common Stock
                               (Title of Class)

Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

              Yes    _____                               	No  X

<PAGE>


Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB.

              Yes    X	                                No _____

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

	      Yes    X   				No _____

State issuer's revenues for its most recent fiscal year:    Nil

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity, as of a
specified date within the past 60 days.  (See definition of affiliate in Rule
12b-2 of the Exchange Act.)

$55,000.00 as at January 3, 2007 based on the closing trading price of
our common stock

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

      10,500,000  shares  of  common  stock as at January 3, 2007







<PAGE>2

                               TABLE OF CONTENTS

                                                                          PAGE

ITEM 1:  DESCRIPTION OF BUSINESS.............................................4

ITEM 2:  DESCRIPTION OF PROPERTY............................................11

ITEM 3:  LEGAL PROCEEDINGS..................................................11

ITEM 4:  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS................11

ITEM 5:  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS...........11

ITEM 6:  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION..........12

ITEM 7:  FINANCIAL STATEMENTS...............................................14

ITEM 8:  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURES.......................................................30

ITEM 8A:  CONTROLS AND
PROCEDURES..................................................................30

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS.......30

ITEM 10:  EXECUTIVE COMPENSATION............................................32

ITEM 11:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT....32

ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS....................33

ITEM 13:  EXHIBITS AND REPORTS..............................................33

ITEM 14:  PRINCIPAL ACCOUNTANT FEES AND SERVICES............................34






<PAGE>3


PART I


ITEM 1:  DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS

IN GENERAL

We have commenced operations as an exploration stage company. We are engaged
in the acquisition and exploration of mineral properties with a view to
exploiting any mineral deposits we discover that demonstrate economic
feasibility.  We own a 100% interest in one mineral claim known as the Raven
property. There is no assurance that a commercially viable mineral deposit
exists on the property.  Further exploration will be required before a final
evaluation as to the economic and legal feasibility is determined.

Our plan of operation is to conduct exploration work on the Raven property in
order to ascertain whether it possesses economic quantities of zinc, copper and
silver.  There can be no assurance that economic mineral deposits or reserves
exist on the Raven property until appropriate exploration work is done and an
economic evaluation based on such work concludes that production of minerals
from the property is economically feasible.

Even if we complete our proposed exploration programs on the Raven property and
they are successful in identifying a mineral deposit, we will have to spend
substantial funds on further drilling and engineering studies before we will
know if we have a commercially viable mineral deposit.

DESCRIPTION, LOCATION AND ACCESS

The Raven Property is located approximately 17 kilometers northeast of
Princeton, in southcentral British Columbia.  Princeton in located on the
junction of 2 major highways approximately 283 kilometers east of Vancouver. The
property consists of 1 claim totaling 524.728 hectacres. Raven may be accessed
from Princeton approximately 10 kilometers east through a north bound logging
road.

Raven is located within the Coastal Mountain Ranges of southwestern British
Columbia. Elevations range from 5,300 feet to 5,825 feet above see level.
Topography is gentle rolling hills.

Vegetation consists of fir, cedar, hemlock, with low level brush cover
consisting of assorted berry and thorn bushes.

The climate in the area is moderate seasonal climate. Precipitation tends to be
moderate during the winter months with lesser amounts during the summer and
early fall.

The claim is covered by glacial till with varying depths from six feet to over
forty feet. Water is available from Stevens Creek tributaries.

RAVEN PROPERTY STAKING AND PURCHASE AGREEMENT

On August 17, 2005, we entered into an agreement with Mr. David Heyman of
Langley, British Columbia, whereby he agreed stake and sell to us one mineral
claim located approximately 17 kilometers northeast of Princeton, British
Columbia in an area having the potential to contain zinc, copper and silver
mineralization or deposits.  In order to acquire a 100% interest in these
claims, we paid $4,000 to Mr. Heyman.





<PAGE>4

EXPLORATION HISTORY

The Raven property area first saw small scale prospecting in the early
1860's for placer gold. Later work in the early 1900's sparked various small
sporadic grassroots exploration work. Small work in the immediate property area
consisted of ground supported geophysics and a geochemical survey.

GEOLOGICAL ASSESSMENT REPORT: RAVEN PROPERTY

We have obtained a geological summary report on the Raven property that was
prepared by Ms. Renee Brickner, a geologist, of Vancouver, British Columbia. Ms.
Brickner is a member of the Association of Professional Engineers and
Geoscientists of British Columbia. She holds a Bachelor of Science degree in
geology with Honors. The report discusses the geology of the area surrounding
and particular to the Raven property, and makes a recommendation for further
exploration work.

In her report, Ms. Brickner concludes that the Raven property has the
potential to contain notable zinc, copper and silver mineralization within
massive sulphide quartz related veins/zones. She says that reports and minfile
both refer to historic (pre-1900) work including shafts, adits, pits and
trenches. She is of the opinion that this data, coupled with geophysical and
geochemical maps showing soil anomalies and magnetic anomalies, provides enough
information to warrant further investigation to confirm the work and showings
noted to date.

CONCLUSIONS

Ms. Brickner, the author of the geological report on the Raven property,
believes that the area has potential for zinc, copper and silver mineralization.
She is of the opinion that, based on the results from the work report, the
property has several anomalous areas where follow-up mapping and sampling should
be conducted. She is of the further opinion that the review of the old workings
along the western side of Raven Mountain should be visited and sampled. Ms.
Brickner is also recommending the identifying of the historic claim stakes and
workings to properly identify the appropriate showings, adits, shafts and
trenching. From there, areas of interest can be further delineated.

PROPOSED BUDGET FOR PHASE ONE

Approximate costs for the one phase program are as follows:

1.  Geologist (4 days at $400/day)                   $ 1,600.00
2.  Field Assistant (4 days at $250/day)             $ 1,000.00
3.  30 sample assays (prep and analysis)             $   630.00
4.  Data compilation                                 $ 1,000.00
5.  Digitizing                                       $   250.00
6.  Vehicle Rental (4 days at $60/day)               $   240.00
7.  Mileage (1000 km at $0.25/km)                    $   250.00
8.  Accommodation/Camp Costs (4 nights at $50/person)$   400.00
9.  Food                                             $   320.00
10. Miscellaneous                                    $   200.00
11. Gas                                              $   300.00
                          PROGRAM TOTAL              $ 6,190.00


<PAGE>5


Ms. Brickner will provide and recommend a budget for a Phase Two upon completion
of Phase One.

COMPLIANCE WITH GOVERNMENT REGULATION

We will be required to comply with all regulations, rules and directives of
governmental authorities and agencies applicable to the exploration of minerals
in Canada generally, and in the Province of British Columbia, specifically.  The
governmental agencies responsible for overseeing the exploration of minerals in
Canada are primarily the Ministry of Natural Resources Canada and the Ministry
of the Environment..  In British Columbia, the responsible government agency is
the Ministry of Energy, Mines and Petroleum Resources.

Under these laws, prior to production, we have the right to explore the
property, subject only to a notice of work which may entail posting a bond.  In
addition, production of minerals in the Province of British Columbia will
require prior approval of applicable governmental regulatory agencies. We can
provide no assurance to investors that such approvals will be obtained.  The
cost and delay involved in attempting to obtain such approvals cannot be known
at this time.

We have budgeted for regulatory compliance costs in the proposed work program
recommended by the geological report.  Such costs will be less than $500 and
will consist of having any significant soil or rock  that is moved during the
exploration process returned to its original location.  Soil and rock movement
during proposed exploration is anticipated to be negligible.

We will have to sustain the cost of reclamation and environmental mediation for
all exploration (and development) work undertaken.  The amount of these costs is
not known at this time as we do not know the extent of the exploration program
that will be undertaken beyond completion of the recommended work program.
However, it is anticipated that such costs will not exceed $20,000 for future
exploration phases.  Because there is presently no information on the size,
tenor, or quality of any resource or reserve at this time, it is impossible to
assess the impact of any capital expenditures on earnings, our competitive
position or us in the event a potentially economic deposit is discovered.

If we enter into production, the cost of complying with permit and regulatory
environment laws will be greater than in phase one because the impact on the
project area is greater.  Permits and regulations will control all aspects of
any production program if the project continues to that stage because of the
potential impact on the environment. Examples of regulatory requirements
include:

       -     Water discharge will have to meet water standards;

       -     Dust generation will have to be minimal or otherwise re-mediated;

       -     Dumping of material on the surface will have to be re-contoured and
             re-vegetated;

       -     An assessment of all material to be left on the surface will need
             to be environmentally benign;




<PAGE>6
       -     Ground water will have to be monitored for any potential
             contaminants;

       -     The socio-economic impact of the project will have to be evaluated
             and if deemed negative, will have to be re-mediated; and

       -     There will have to be an impact report of the work on the local
             fauna and flora.

During the exploration phase, a bond will need to be provided covering possible
land disturbance.  In the case of normal fieldwork, this should be minimal.  The
costs of compliance with environmental regulations in the production phase are
variable and cannot be determined at this time.

EMPLOYEES

We have no employees as of the date of this annual report other than our two
directors.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have not incurred any other research or development expenditures since our
incorporation.

SUBSIDIARIES

We do not have any subsidiaries.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or trademarks.

RISK FACTORS

An investment in our common stock involves a high degree of risk.  You should
carefully consider the risks described below and the other information in this
annual report before investing in our common stock. If any of the following
risks occur, our business, operating results and financial condition could be
seriously harmed. The trading price of our common stock could decline due to any
of these risks, and you may lose all or part of your investment.

IF WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.

As of September 30, 2006, we had cash in the amount of $2,243.  We currently do
not have any operations and we have no income.

<PAGE>7

Our business plan calls for significant expenses in connection with the
exploration of the Raven property.  We will require additional financing in
order to conduct exploration on the property and to determine whether the
property contains economic mineralization. We will also require additional
financing if the costs of the exploration of the Raven property are greater
than anticipated.

We will require additional financing to sustain our business operations if we
are not successful in earning revenues once exploration is complete.  We do not
currently have any arrangements for financing and may not be able to find such
financing if required. Obtaining additional financing would be subject to a
number of factors, including the market price for zinc, copper, and silver, and
investor acceptance of our property and general market conditions.  These
factors may make the timing, amount, terms or conditions of additional financing
unavailable to us.

The most likely source of future funds presently available to us is through the
sale of equity capital. Any sale of share capital will result in dilution to
existing shareholders.  The only other anticipated alternative for the financing
of further exploration would be our sale of a partial interest in the Raven
property to a third party in exchange for cash or exploration expenditures,
which is not presently contemplated.

BECAUSE WE HAVE NOT COMMENCED BUSINESS OPERATIONS, WE FACE A HIGH RISK OF
BUSINESS FAILURE.

We have not yet commenced exploration on the Raven property. Accordingly, we
have no way to evaluate the likelihood that our business will be successful.  We
were incorporated on March 10, 2005 and to date have been involved primarily in
organizational activities and the acquisition of our mineral property.  We have
not earned any revenues as of the date of this prospectus. Potential investors
should be aware of the difficulties normally encountered by new mineral
exploration companies and the high rate of failure of such enterprises. The
likelihood of success must be considered in light of the problems, expenses,
difficulties, complications and delays encountered in connection with the
exploration of the mineral properties that we plan to undertake. These potential
problems include, but are not limited to, unanticipated problems relating to
exploration, and additional costs and expenses that may exceed current
estimates.

Prior to completion of our exploration stage, we anticipate that we will incur
increased operating expenses without realizing any revenues. We therefore expect
to incur significant losses into the foreseeable future. We recognize that if we
are unable to generate significant revenues from development of the Raven
property and the production of minerals from the claims, we will not be able to
earn profits or continue operations.

There is no history upon which to base any assumption as to the likelihood that
we will prove successful, and it is doubtful that we will generate any operating
revenues or ever achieve profitable operations. If we are unsuccessful in
addressing these risks, our business will most likely fail.  If we determine
that the Raven property does not contain any reserves and that we are unable to
complete our business plan with respect to the claims, we intend to acquire an
interest or interests in additional mineral claims for exploration purposes.
Additional acquisitions will depend upon our ability to raise additional funding
through our sale of common stock.

<PAGE>8

BECAUSE OF THE SPECULATIVE NATURE OF EXPLORATION OF MINING PROPERTIES, THERE IS
A SUBSTANTIAL RISK THAT OUR BUSINESS WILL FAIL.

The search for valuable minerals as a business is extremely risky. The
likelihood of our mineral claims containing economic mineralization or reserves
is extremely remote. Exploration for minerals is a speculative venture
necessarily involving substantial risk.  In all probability, the Raven property
does not contain any reserves and funds that we spend on exploration will be
lost.  As well, problems such as unusual or unexpected formations and other
conditions are involved in mineral exploration and often result in unsuccessful
exploration efforts. In such a case, we would be unable to complete our business
plan.

WE NEED TO CONTINUE AS A GOING CONCERN IF OUR BUSINESS IS TO SUCCEED. OUR
INDEPENDENT AUDITOR HAS RAISED DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING
CONCERN.

The Independent Auditor's Report to our audited financial statements for the
period ended September 30, 2006 indicates that there are a number of factors
that raise substantial doubt about our ability to continue as a going concern.
Such factors identified in the report are that we have no source of revenue and
our dependence upon obtaining adequate financing. If we are not able to continue
as a going concern, it is likely investors will lose all of their investment.

BECAUSE OF THE INHERENT DANGERS INVOLVED IN MINERAL EXPLORATION, THERE IS A RISK
THAT WE MAY INCUR LIABILITY OR DAMAGES AS WE CONDUCT OUR BUSINESS.

The search for valuable minerals involves numerous hazards.  As a result, we may
become subject to liability for such hazards, including pollution, cave-ins and
other hazards against which we cannot insure or against which we may elect not
to insure.  The payment of such liabilities may have a material adverse effect
on our financial position.

EVEN IF WE DISCOVER COMMERCIAL RESERVES OF PRECIOUS METALS ON THE RAVEN
PROPERTY, WE MAY NOT BE ABLE TO SUCCESSFULLY COMMENCE COMMERCIAL PRODUCTION.

The Raven property does not contain any known bodies of mineralization. If our
exploration programs are successful in establishing zinc, copper and silver of
commercial tonnage and grade, we will require additional funds in order to place
the property into commercial production.  We may not be able to obtain such
financing.

BECAUSE OUR PRESIDENT AND SECRETARY HAVE OTHER BUSINESS INTERESTS, THEY MAY NOT
BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS
OPERATIONS, CAUSING OUR BUSINESS TO FAIL.

Our president, Mr. Peter Sorel spends approximately 50% his business time
providing his services to us.  Our secretary, Mr. David Matzele spends only
about 10% of his business time providing his services to us. While Mr. Sorel and
Mr. Matzele presently possess adequate time to attend to our interests, it is
possible that the demands on Mr. Sorel and Mr. Matzele from their other
obligations could increase with the result that they would no longer be able to
devote sufficient time to the management of our business.

<PAGE>9

BECAUSE MANAGEMENT HAS ONLY LIMITED EXPERIENCE IN MINERAL EXPLORATION, OUR
BUSINESS HAS A HIGHER RISK OF FAILURE.

None of our directors has any technical training in the field of geology and
specifically in the areas of exploring for, starting and operating a mine.  As a
result, we may not be able to recognize and take advantage of potential
acquisition and exploration opportunities in the sector without the aid of
qualified geological consultants.  As well, with no direct training or
experience, our management may not be fully aware of the specific requirements
related to working in this industry.  Their decisions and choices may not be
well thought out and our operations, earnings and ultimate financial success may
suffer irreparable harm as a result.

IF A MARKET FOR OUR COMMON STOCK DOES NOT DEVELOP, SHAREHOLDERS MAY BE UNABLE TO
SELL THEIR SHARES.

There is currently no market for our common stock and no certainty that a market
will develop. We currently plan to apply for listing of our common stock on the
over the counter bulletin board upon the effectiveness of the registration
statement, of which this prospectus forms a part.  Our shares may never trade on
the bulletin board.  If no market is ever developed for our shares, it will be
difficult for shareholders to sell their stock. In such a case, shareholders may
find that they are unable to achieve benefits from their investment.

A PURCHASER IS PURCHASING PENNY STOCK WHICH LIMITS HIS OR HER ABILITY TO SELL
THE STOCK.

The shares offered by this prospectus constitute penny stock under the Exchange
Act.  The shares will remain penny stock for the foreseeable future.  The
classification of penny stock makes it more difficult for a broker-dealer to
sell the stock into a secondary market, thus limiting investment liquidity.  Any
broker-dealer engaged by the purchaser for the purpose of selling his or her
shares in our company will be subject to rules 15g-1 through 15g-10 of the
Exchange Act. Rather than creating a need to comply with those rules, some
broker-dealers will refuse to attempt to sell penny stock.

Please refer to the "Plan of Distribution" section for a more detailed
discussion of penny stock and related broker-dealer restrictions.

FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements that involve risks and
uncertainties.  We use words such as anticipate, believe, plan, expect, future,
intend and similar expressions to identify such forward-looking statements.  You
should not place too much reliance on these forward-looking statements.  Our
actual results are most likely to differ materially from those anticipated in
these forward-looking statements for many reasons, including the risks faced by
us described in the "Risk Factors" section and elsewhere in this annual report.

<PAGE>10

ITEM 2:  DESCRIPTION OF PROPERTY

We own a 100% interest in the mineral claim comprising the Raven property.
We do not own or lease any property other than the Raven property.

ITEM 3:  LEGAL PROCEEDINGS

There are no legal proceedings pending or threatened against us.

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

No matters were submitted during the fourth quarter of our fiscal year to a vote
of security holders, through the solicitation of proxies or otherwise.

PART II

ITEM 5: MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

MARKET INFORMATION

Our shares of common stock are quoted for trading on the OTC Bulletin Board
under the symbol NUGR.  However, no trades of our shares of common stock have
occurred through the facilities of the OTC Bulletin Board to the date of this
annual report.

We have not taken any steps to engage a market-marker to apply for quotation on
the OTC Bulletin Board on our behalf.  If we are able to engage a market-maker,
we anticipate that it will take approximately two months for our securities to
be quoted on the OTC Bulletin Board following submission of the application.
However, there is no guarantee that our application will be approved.  Even if
we obtain an OTC Bulletin Board quotation, there is no assurance that there
will be a liquid market for our stock.

We had 30 shareholders of record as at the date of this annual report.

DIVIDENDS

There  are  no  restrictions  in our articles of incorporation  or  bylaws  that
prevent us from declaring dividends.  The  Nevada  Revised Statutes, however, do
prohibit  us  from  declaring  dividends  where,  after  giving  effect  to  the
distribution of the dividend:

1.    we would not be able to pay our debts as they become due in the usual
      course of business; or

2.    our total assets would be less than the sum of our total  liabilities plus
      the amount that would be needed to satisfy the rights of shareholders  who
      have preferential rights superior to those receiving the distribution.

We  have not declared any dividends, and we do not plan to declare any dividends
in the foreseeable future.




<PAGE>11

ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Our plan of operation for the twelve months following the date of this report is
to complete the recommended exploration program on the Raven property consisting
of follow-up mapping and sampling. In addition, a review of the old workings
along the western side of Raven Mountain will be visited and sampled. And
finally, further work will be done in identifying the historic claim stakes and
workings to identify the appropriate showings, adits, shafts and trenching. An
adit is an opening driven horizontally into a side of a hill or mountain in
order to access rock within.  Trenching involves removing surface soil using a
backhoe or bulldozer. Samples are then taken from the bedrock below and analyzed
for mineral content.

We anticipate that the program will cost approximately $6,200.00.  To date, we
have not commenced exploration on the Raven property.

Ms. Brickner, our consulting geologist, will provide and recommend a budget for
a Phase 2 upon completion of Phase One.

In the next 12 months, we also anticipate spending an additional $15,000 on
professional fees and administrative expenses, including fees payable in
connection with the filing of this registration statement and complying with
reporting obligations.

Total expenditures over the next 12 months are therefore expected to be
approximately $22,000.

Our cash reserves are not sufficient to meet our obligations for the next
twelve-month period.  As a result, we will need to seek additional funding in
the near future.  We currently do not have a specific plan of how we will obtain
such funding; however, we anticipate that additional funding will be in the form
of equity financing from the sale of our common stock.  We may also seek to
obtain short-term loans from our directors, although no such arrangement has
been made.  At this time, we cannot provide investors with any assurance that we
will be able to raise sufficient funding from the sale of our common stock or
through a loan from our directors to meet our obligations over the next twelve
months.  We do not have any arrangements in place for any future equity
financing.

We do not expect to earn any revenue from operations until we have either
commenced mining operations on the Raven property or have sold an interest in
the property to a third party.  Before this occurs, we expect that we will





<PAGE>12


have to complete current recommended exploration on the property, as well as
additional exploration recommended by a geologist.

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on the small business issuer's
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital resources that
are material to investors.

RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2006

We did not earn any revenues for the year ended September 30, 2006.  We do not
anticipate earning revenues unless we enter into commercial production on
the Raven property, which is doubtful.  We have not commenced the exploration
stage of our business and can provide no assurance that we will discover
economic mineralization on the property, or if such minerals are discovered,
that we will enter into commercial production.

We incurred operating expenses in the amount of $39,676 for the year ended
September 30, 2006.  These operating expenses were comprised of $17,498 in legal
and accounting fees, $12,000 in management fees, $5,000 in mineral property
expenditures $1,146 in filing fees, $114 in bank charges and interest, $331 in
license and permit fees, $62 in office and miscellaneous fees, $2,400 in rent
and $1,125 in transfer agent fees.

We have not attained profitable operations and are dependent upon obtaining
financing to pursue exploration activities.  For these reasons our auditors
believe that there is substantial doubt that we will be able to continue as a
going concern.





<PAGE>13
ITEM 7:  FINANCIAL STATEMENTS


















                              NUGGET RESOURCES INC.

                          (A DEVELOPMENT STAGE COMPANY)

                              FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2006











REPORT OF INDEPENDENT REIGISTERED PUBLIC ACCOUNTING FIRM

BALANCE SHEETS

STATEMENTS OF OPERATIONS

STATEMENTS OF CASH FLOWS

STATEMENT OF STOCKHOLDERS' EQUITY

NOTES TO THE FINANCIAL STATEMENTS












<PAGE>14



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)

We have audited the balance sheets of NUGGET RESOURCES INC. as at 30 September
2006 and 2005, and the related statements of operations, cash flows and changes
in stockholders' equity for the year ended 30 September 2006, from the period of
inception on 10 March 2005 to 30 September 2005 and for the period from the date
of inception on 10 March 2005 to 30 September 2006.  These financial statements
are the responsibility of the Company's management.  Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States of America).  Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Company as of 30 September
2006 and 2005 and the results of its operations, cash flows and changes in
stockholders' equity for the year ended 30 September 2006, from the period of
inception on 10 March 2005 to 30 September 2005 and for the period from the date
of inception on 10 March 2005 to 30 September 2006 in conformity with accounting
principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Note 1 to the
financial statements, conditions exist which raise substantial doubt about the
Company's ability to continue as a going concern unless it is able to generate
sufficient cash flows to meet its obligations and sustain its operations.
Management's plans in regard to these matters are also described in Note 1. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

                                                         /s/ "James Stafford"

Vancouver, Canada                                        CHARTERED ACCOUNTANTS

6 December 2006




<PAGE>15


NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Balance Sheets
(Expressed in U.S. Dollars)
AS AT 30 SEPTEMBER

<TABLE>
<CAPTION>
                                                                       2006     2005
<S>                                                               <C> <C>      <C> <C>
                                                                          $        $

ASSETS

CURRENT
Cash and cash equivalents                                             2,243   19,945

LIABILITIES

CURRENT
Accounts payable and accrued liabilities (Note 4)                    10,574    3,000

                                                                     10,574    3,000

STOCKHOLDERS' DEFICIENCY
CAPITAL STOCK (Note 5)
Authorized
30 September 2006 - 75,000,000 of common shares, par value $0.001
Issued and outstanding
30 September 2006 - 10,500,000 common shares, par value $0.001
30 September 2005 - 10,500,000 common shares, par value $0.001       10,500   10,500
ADDITIONAL PAID-IN CAPITAL                                           27,900   13,500
DEFICIT, ACCUMULATED DURING THE DEVELOPMENT STAGE                  (46,731)  (7,055)

                                                                    (8,331)   16,945

                                                                      2,243   19,945
</TABLE>

NATURE AND CONTINUANCE OF OPERATIONS (Note 1)

ON BEHALF OF THE BOARD:

--------------- Director               ------------------- Director
Peter Sorel                            David Matzele



<PAGE>16


NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Operations
(Expressed in U.S. Dollars)

<TABLE>
<CAPTION>						FOR THE PERIOD				FOR THE PERIOD
                                              		FROM THE DATE OF                	FROM THE DATE OF
                                           		INCEPTION ON 	   FOR THE		INCEPTION ON
							10 MARCH 2005 TO   YEAR ENDED           10 MARCH 2005 TO
                                                        30 SEPTEMBER 2006  30 SEPTEMBER 2006    30 SEPTEMBER 2005


<S>                              <C> <C> <C> <C>        <C> 		<C>        		<C>
                                                        $           	  $                     $

EXPENSES
Mineral property expenditures (Note 3)                          9,000          5,000                    4,000

General and administrative (Schedule 1)                        37,731         34,676                    3,055

NET LOSS FOR THE PERIOD                                       (46,731)       (39,676)                  (7,055)

BASIC AND DILUTED LOSS PER COMMON SHARE                                       (0.004)                  (0.001)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
USED IN PER SHARE CALCULATIONS		                                  10,500,000                9,511,765
</TABLE>




<PAGE>17


NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Cash Flows
(Expressed in U.S. Dollars)

<TABLE>
<CAPTION>
                                           		FOR THE PERIOD				FOR THE PERIOD
                                              		FROM THE DATE OF                	FROM THE DATE OF
                                           		INCEPTION ON 	   FOR THE		INCEPTION ON
							10 MARCH 2005 TO   YEAR ENDED           10 MARCH 2005 TO
                                                        30 SEPTEMBER 2006  30 SEPTEMBER 2006    30 SEPTEMBER 2005
<S>                                  <C> <C> <C> <C>                                    <C> <C>        <C> <C>
                                                         $                 $                    $

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period                                      (46,731)         (39,676)                   (7,055)
 Adjustments to reconcile loss to  net cash used by
 operating activities
   Contributions to capital by related parties - expenses
    (Notes 5, 6, and 8)					      14,400           14,400                         -
Changes in operating assets and liabilities
 Increase in accounts payable and accrued liabilities         10,574            7,574                     3,000


                                                             (21,757)         (17,702)                   (4,055)

CASH FLOWS FROM FINANCING ACTIVITIES
Common shares issued for cash                                 24,000           -                         24,000

                                                              24,000           -                         24,000

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS						       2,243           2,243                     19,945

CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD						           -          19,945                          -

CASH AND CASH EQUIVALENTS, END OF
PERIOD					                       2,243         (17,702)                    19,945
</TABLE>

SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS (Note 8)



<PAGE>18


NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Changes in Stockholders' Deficiency
(Expressed in U.S. Dollars)

<TABLE>
<CAPTION>
                                                         NUMBER OF     CAPITAL   ADDITIONAL  DEFICIT, ACCUMULATED    STOCKHOLDERS'
                                                     COMMON SHARES       STOCK      PAID-IN            DURING THE       DEFICIENCY
                                                            ISSUED                  CAPITAL     DEVELOPMENT STAGE
<S>                                                 <C> <C>        <C>  <C>    <C>   <C>    <C>      <C>          <C>     <C>
                                                                             $            $                     $                $

BALANCE AT 10 MARCH 2005 (INCEPTION)
 Common shares issued for cash ($0.001 per share) -      5,000,000       5,000            -                     -            5,000
 18 March 2005
 Common shares issued for cash ($0.001 per share) -      4,000,000       4,000            -                     -            4,000
 5 April 2005
 Common shares issued for cash ($0.01 per share) -         675,000         675        6,075                     -            6,750
 13 April 2005
 Common shares issued for cash ($0.01 per share) -         825,000         825        7,425                     -            8,250
 21 April 2005
 Net loss for the period                                         -           -            -               (7,055)          (7,055)

BALANCE AT 30 SEPTEMBER 2005                            10,500,000      10,500       13,500               (7,055)           16,945
 Contributions to capital by related parties -                   -           -       14,400                     -           14,400
 expenses
 (Notes 5, 6 and 8)
 Net loss for the period                                         -           -            -              (39,676)         (39,676)

BALANCE AT 30 SEPTEMBER 2006                            10,500,000      10,500       27,900              (46,731)          (8,331)
</TABLE>




<PAGE>19


NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Schedule 1 - General and Administrative Expenses
(Expressed in U.S. Dollars)

<TABLE>
<CAPTION>
                   					FOR THE PERIOD				FOR THE PERIOD
                                              		FROM THE DATE OF                	FROM THE DATE OF
                                           		INCEPTION ON 	   FOR THE		INCEPTION ON
							10 MARCH 2005 TO   YEAR ENDED           10 MARCH 2005 TO
                                                        30 SEPTEMBER 2006  30 SEPTEMBER 2006    30 SEPTEMBER 2005
<S>           <C> <C> <C> <C>                                                <C> <C>        <C> <C>
                                                        $                  $                      $

Bank charges and interest                                       114             114                            -
Filing fees                                                   1,146           1,146                            -
Legal and accounting                                         19,998          17,498                        2,500
License and permits                                             331             331                            -
Management fees (Notes 5, 6 and 8)                           12,000          12,000                            -
Office and miscellaneous                                        617              62                          555
Rent (Notes 5, 6 and 8)                                       2,400           2,400                            -
Transfer agent fees                                           1,125           1,125                            -


                                                             37,731          34,676                        3,055
</TABLE>





<PAGE>20
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


1.  NATURE AND CONTINUANCE OF OPERATIONS

    Nugget Resources Inc. (the "Company") was incorporated under the laws of the
    State of Nevada on 10 March 2005.  The Company has acquired a mineral
    property located in the Province of British Columbia, Canada and has not yet
    determined whether this property contains reserves that are economically
    recoverable.  The recoverability of property expenditures will be dependent
    upon the discovery of economically recoverable reserves, confirmation of the
    Company's interest in the underlying property, the ability of the Company to
    obtain necessary financing to satisfy the expenditure requirements under the
    property agreement and upon future profitable production or proceeds for the
    sale thereof.

    The Company is a development stage enterprise, as defined in Statements of
    Financial Accounting Standards ("SFAS") No. 7.  The Company is devoting all
    of its present efforts to securing and establishing a new business and its
    planned principle operations have not commenced.  Accordingly, no revenue
    has been derived during the organization period.

    The Company's financial statements as at 30 September 2006 and for the year
    then ended have been prepared on a going concern basis, which contemplates
    the realization of assets and the settlement of liabilities and commitments
    in the normal course of business.  The Company has a loss of $39,676 for the
    year ended 30 September 2006 (2005 - $7,055) and has a working capital
    deficiency of $8,331 at 30 September 2006 (2005 - working capital of
    $16,945).

    Management cannot provide assurance that the Company will ultimately achieve
    profitable operations or become cash flow positive, or raise additional debt
    and/or equity capital.  Management believes that the Company's capital
    resources should be adequate to continue operating and maintaining its
    business strategy during the fiscal year ending 30 September 2007.  However,
    if the Company is unable to raise additional capital in the near future, due
    to the Company's liquidity problems, management expects that the Company
    will need to curtail operations, liquidate assets, seek additional capital
    on less favourable terms and/or pursue other remedial measures.  These
    financial statements do not include any adjustments related to the
    recoverability and classification of assets or the amounts and
    classification of liabilities that might be necessary should the Company be
    unable to continue as a going concern.

    At 30 September 2006, the Company was not engaged in a business and had
    suffered losses from development stage activities to date.  Although
    management is currently attempting to implement its business plan, and is
    seeking additional sources of equity or debt financing, there is no
    assurance these activities will be successful.  Accordingly, the Company
    must rely on its president to perform essential functions without
    compensation until a business operation can be commenced.  These factors
    raise substantial doubt about the ability of the Company to continue as a
    going concern.  The financial statements do not include any adjustments that
    might result from the outcome of this uncertainty.

2.  SIGNIFICANT ACCOUNTING POLICIES

    The following is a summary of significant accounting policies used in the
    preparation of these financial statements.



                                                                             (1)


<PAGE>21
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006



    BASIS OF PRESENTATION

    The financial statements of the Company have been prepared in accordance
    with accounting principles generally accepted in the United States of
    America applicable to development stage enterprises, and are expressed in
    U.S. dollars.  The Company's fiscal year end is 30 September.

    CASH AND CASH EQUIVALENTS

    Cash and cash equivalents include highly liquid investments with original
    maturities of three months or less.

    MINERAL PROPERTY COSTS

    The Company has been in the exploration stage since its formation 10 March
    2005 and has not yet realized any revenues from its planned operations.  It
    is primarily engaged in the acquisition and exploration of mining
    properties.  Mineral property acquisition and exploration costs are charged
    to operations as incurred.  When it has been determined that a mineral
    property can be economically developed as a result of establishing proven
    and probable reserves, the costs incurred to develop such property, are
    capitalized.  Such costs will be amortized using the units-of-production
    method over the estimated life of the probable reserve.

    Although the Company has taken steps to verify title to mineral properties
    in which it has an interest, according to the usual industry standards for
    the stage of exploration of such properties, these procedures do not
    guarantee the Company's title.  Such properties may be subject to prior
    agreements or transfers and title may be affected by undetected defects.

    FINANCIAL INSTRUMENTS

    The carrying value of cash, accounts payable and accrued liabilities, and
    due to related parties approximates their fair value because of the short
    maturity of these instruments.  The Company's operations are in Canada and
    virtually all of its assets and liabilities are giving rise to significant
    exposure to market risks from changes in foreign currency rates.  The
    Company's financial risk is the risk that arises from fluctuations in
    foreign exchange rates and the degree of volatility of these rates.
    Currently, the Company does not use derivative instruments to reduce its
    exposure to foreign currency risk.

    DERIVATIVE FINANCIAL INSTRUMENTS

    The Company has not, to the date of these financial statements, entered into
    derivative instruments to offset the impact of foreign currency
    fluctuations.

    ENVIRONMENTAL EXPENDITURES

    The operations of the Company have been, and may in the future, be affected
    from time to time, in varying degrees, by changes in environmental
    regulations, including those for future reclamation and site restoration
    costs.  Both the likelihood of new regulations and their overall effect upon
    the Company vary greatly and are


                                                                             (2)


<PAGE>22
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    not predictable.  The Company's policy is to meet or, if possible, surpass
    standards set by relevant legislation, by application of technically proven
    and economically feasible measures.

    Environmental expenditures that relate to ongoing environmental and
    reclamation programs are charged against earnings as incurred or capitalized
    and amortized depending on their future economic benefits.  Estimated future
    reclamation and site restoration costs, when the ultimate liability is
    reasonably determinable, are charged against earnings over the estimated
    remaining life of the related business operation, net of expected
    recoveries.

    INCOME TAXES

    Deferred income taxes are reported for timing differences between items of
    income or expense reported in the financial statements and those reported
    for income tax purposes in accordance with SFAS No. 109, Accounting for
    Income Taxes, which requires the use of the asset/liability method of
    accounting for income taxes.  Deferred income taxes and tax benefits are
    recognized for the future tax consequences attributable to differences
    between the financial statement carrying amounts of existing assets and
    liabilities and their respective tax bases, and for tax loss and credit
    carry-forwards.  Deferred tax assets and liabilities are measured using
    enacted tax rates expected to apply to taxable income in the years in which
    those temporary differences are expected to be recovered or settled.  The
    Company provides for deferred taxes for the estimated future tax effects
    attributable to temporary differences and carry-forwards when realization is
    more likely than not.

    BASIC AND DILUTED NET LOSS PER SHARE

    The Company computes net loss per share in accordance with SFAS No. 128,
    Earnings per Share.  SFAS No. 128 requires presentation of both basic and
    diluted earnings per share ("EPS") on the face of the income statement.
    Basic EPS is computed by dividing net loss available to common shareholders
    (numerator) by the weighted average number of shares outstanding
    (denominator) during the period.  Diluted EPS gives effect to all
    potentially dilutive common shares outstanding during the period using the
    treasury stock method and convertible preferred stock using the if-converted
    method.  In computing diluted EPS, the average stock price for the period is
    used in determining the number of shares assumed to be purchased from the
    exercise of stock options or warrants.  Diluted EPS excludes all potentially
    dilutive shares if their effect is anti-dilutive.

    COMPREHENSIVE LOSS

    SFAS No. 130, Reporting Comprehensive Income, establishes standards for the
    reporting and display of comprehensive loss and its components in the
    financial statements.  As at 30 September 2006, the Company has no items
    that represent a comprehensive loss and, therefore, has not included a
    schedule of comprehensive loss in the financial statements.



    SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

    SFAS No. 131, Disclosures about Segments of an Enterprise and Related
    Information, supersedes SFAS No. 14, Financial Reporting for Segments of a
    Business Enterprise.  SFAS 131 establishes standards for the way


                                                                             (3)


<PAGE>23
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    that public companies report information about operating segments in annual
    financial statements and requires reporting of selected information about
    operating segments in interim financial statements issued to the public.  It
    also establishes standards for disclosures regarding products and services,
    geographic areas and major customers.  SFAS 131 defines operating segments
    as components of a company about which separate financial information is
    available that is evaluated regularly by the chief operating decision maker
    in deciding how to allocate resources and in assessing performance.  The
    Company has evaluated this SFAS and does not believe it is applicable at
    this time.

    START-UP EXPENSES

    The Company has adopted Statement of Position No. 98-5, Reporting the Costs
    of Start-up Activities, which requires that costs associated with start-up
    activities be expensed as incurred.  Accordingly, start-up costs associated
    with the Company's formation have been included in the Company's general and
    administrative expenses for the period from the date of inception on 10
    March 2005 to 30 September 2006.

    FOREIGN CURRENCY TRANSLATION

    The Company's functional and reporting currency is in U.S. dollars.  The
    financial statements of the Company are translated to U.S. dollars in
    accordance with SFAS No. 52, Foreign Currency Translation.  Monetary assets
    and liabilities denominated in foreign currencies are translated using the
    exchange rate prevailing at the balance sheet date.  Gains and losses
    arising on translation or settlement of foreign currency denominated
    transactions or balances are included in the determination of income.  The
    Company has not, to the date of these financial statements, entered into
    derivative instruments to offset the impact of foreign currency
    fluctuations.

    USE OF ESTIMATES

    The preparation of financial statements in conformity with accounting
    principles generally accepted in the United States of America requires
    management to make estimates and assumptions that affect the amounts of
    assets and liabilities and disclosures of contingent assets and liabilities
    at the date of the financial statements and the reported amounts of revenues
    and expenditures during the reporting period.  Actual results could differ
    from these estimates.

    CONCENTRATIONS OF CREDIT RISK

    The Company's financial instruments that are exposed to concentrations of
    credit risk primarily consist of its cash and related party payables.  The
    Company places its cash and cash equivalents with financial institutions of
    high credit worthiness.  At times, its cash and cash equivalents with a
    particular financial institution may exceed any applicable government
    insurance limits.  The Company's management also routinely assesses the
    financial strength and credit worthiness of any parties to which it extends
    funds and as such, it believes that any associated credit risk exposures are
    limited.

    RISKS AND UNCERTAINTIES

    The Company operates in the resource exploration industry that is subject to
    significant risks and uncertainties,


                                                                             (4)


<PAGE>24
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    including financial, operational, technological, and other risks associated
    with operating a resource exploration business, including the potential risk
    of business failure.

    RECENT ACCOUNTING PRONOUNCEMENTS

    In May 2005, the Financial Accounting Standards Board (the "FASB") issued
    SFAS No. 154, Accounting Changes and Error Corrections - A Replacement of
    APB Opinion No. 20 and SFAS No. 3.  SFAS No. 154 changes the requirements
    for the accounting for and reporting of a change in accounting principle and
    applies to all voluntary changes in accounting principle. It also applies to
    changes required by an accounting pronouncement in the unusual instance that
    the pronouncement does not include specific transition provisions.  SFAS No.
    154 requires retrospective application to prior periods' financial
    statements of changes in accounting principle, unless it is impracticable to
    determine either the period-specific effects or the cumulative effect of the
    change.  The provisions of SFAS No. 154 are effective for accounting changes
    and correction of errors made in fiscal years beginning after 15 December
    2005.  The adoption of this standard is not expected to have a material
    effect on the Company's results of operations or financial position.

    In March 2005, the Securities and Exchange Commission ("SEC") staff issued
    Staff Accounting Bulletin ("SAB") No. 107 to give guidance on the
    implementation of SFAS No. 123R.  The Company will consider SAB No. 107
    during implementation of SFAS No. 123R.

    In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary
    Assets - An Amendment of APB Opinion No. 29.  The guidance in APB Opinion
    No. 29, Accounting for Nonmonetary Transactions, is based on the principle
    that exchanges of nonmonetary assets should be measured based on the fair
    value of the assets exchanged.  The guidance in that Opinion, however,
    included certain exceptions to that principle.  SFAS No. 153 amends Opinion
    No. 29 to eliminate the exception for nonmonetary exchanges of similar
    productive assets and replaces it with a general exception for exchanges of
    nonmonetary assets that do not have commercial substance.  A nonmonetary
    exchange has commercial substance if the future cash flows of the entity are
    expected to change significantly as a result of the exchange.  The
    provisions of SFAS No. 153 are effective for nonmonetary asset exchanges
    occurring in fiscal periods beginning after 15 June 2005.  Early application
    is permitted and companies must apply the standard prospectively.  The
    adoption of this standard is not expected to have a material effect on the
    Company's results of operations or its financial position.

    In December 2004, the FASB issued SFAS No. 123R, Share Based Payment.  SFAS
    No. 123R is a revision of SFAS No. 123, Accounting for Stock-Based
    Compensation, and supersedes APB Opinion No. 25, Accounting for Stock Issued
    to Employees and its related implementation guidance.  SFAS No. 123R
    establishes standards for the accounting for transactions in which an entity
    exchanges its equity instruments for goods or services.  It also addresses
    transactions in which an entity incurs liabilities in exchange for goods or
    services that are based on the fair value of the entity's equity instruments
    or that may be settled by the issuance of those equity instruments.  SFAS
    No. 123R focuses primarily on accounting for transactions in which an entity
    obtains employee services in share-based payment transactions.  SFAS No.
    123R requires a public entity to measure the cost of employee services
    received in exchange for an award of equity instruments based on the grant-
    date fair value of the award (with limited exceptions).  That cost will be
    recognized over the period during which an employee is required to provide
    service in exchange for the award - the requisite service period (usually
    the vesting period).  SFAS No. 123R requires that the compensation cost
    relating to share-based payment


                                                                             (5)


<PAGE>25
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    transactions be recognized in the financial statements.  That cost will be
    measured based on the fair value of the equity or liability instruments
    issued.  Public entities that file as small business issuers will be
    required to apply SFAS No. 123R in the first interim or annual reporting
    period that begins after 15 December 2005.  The adoption of this standard is
    not expected to have a material effect on the Company's results of
    operations or its financial position.

    The FASB has also issued SFAS No. 151, 152, 155 and 156, but they will not
    have an effect of the financial reporting of the Company.

3.  MINERAL PROPERTY

    Pursuant to a mineral property purchase agreement dated 17 August 2005, the
    Company acquired a 100% undivided right, title and interest in a 524.728
    hectacre mineral claim, located in the Similkameen Mining Division of
    British Columbia, Canada for a cash payment of $4,000 (paid).  During the
    year ended 30 September 2006, the Company has paid $5,000 for exploration
    work on the property.   Since the Company has not established the commercial
    feasibility of the mineral claim, the acquisition costs have been expensed.

4.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

    Accounts payable and accrued liabilities are non-interest bearing, unsecured
    and have settlement dates within one year.

5.  CAPITAL STOCK

    AUTHORIZED

    The total authorized capital is 75,000,000 common shares with a par value of
    $0.001 per common share.

    ISSUED AND OUTSTANDING

    The total issued and outstanding capital stock is 10,500,000 common shares
    with a par value of $0.001 per common share.

         i.   On 18 March 2005, 5,000,000 common shares of the Company were
              issued for cash proceeds of $5,000.

         ii.  On 5 April 2005, 4,000,000 common shares of the Company were
              issued for cash proceeds of $4,000.

         iii. On 13 April 2005, 675,000 common shares of the Company were issued
              for cash proceeds of $6,750.

         iv.  On 21 April 2005, 825,000 common shares of the Company were issued
              for cash proceeds of $8,250.

    At 30 September 2006, there were no outstanding stock options or warrants.

    During the year ended 30 September 2006, officers and/or directors of the
    Company made contributions to


                                                                             (6)


<PAGE>26
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    capital by the payment of Company expenses (Notes 6 and 8).

6.  RELATED PARTY TRANSACTIONS

    During the year ended 30 September 2006, officers and/or directors of the
    Company made contributions to capital for management fees and rent of
    $12,000 (30 September 2005 - $Nil, cumulative - $12,000) and $2,400 (30
    September 2005 - $Nil, cumulative - $2,400) respectively (Notes 5 and 8).

7.  INCOME TAXES

    The Company has losses carried forward for income tax purposes to
    30 September 2006.  There are no current or deferred tax expenses for the
    year ended 30 September 2006 due to the Company's loss position. The Company
    has fully reserved for any benefits of these losses.  The deferred tax
    consequences of temporary differences in reporting items for financial
    statement and income tax purposes are recognized, as appropriate.
    Realization of the future tax benefits related to the deferred tax assets is
    dependent on many factors, including the Company's ability to generate
    taxable income within the net operating loss carryforward period.
    Management has considered these factors in reaching its conclusion as to the
    valuation allowance for financial reporting purposes.



                                                                             (7)


<PAGE>27
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


    The provision for refundable federal income tax consists of the following:

<TABLE>
<CAPTION>
                                           FOR THE YEAR ENDED 30     FOR THE PERIOD FROM
                                                  SEPTEMBER 2006     THE DATE OF INCEPTION
								     ON 10 MARCH 2005 TO
                                                 		     30 SEPTEMBER 2005
<S>                                     <C> <C> <C> <C>                   <C> <C>
                                                     $                  $

Deferred tax asset attributable to:
Current operations                                        13,489               (2,399)
Contributions to capital by related                       (4,896)                   -
parties - expenses
Less: Change in valuation allowance                       (8,593)               2,399

Net refundable amount                                          -                    -
</TABLE>

    The composition of the Company's deferred tax assets as at 30 September 2006
    and 2005 are as follows:

                                                 2006     2005
                                                    $        $

 Net income tax operating loss carryforward    32,331    7,055
                                           --------------------

 Statutory federal income tax rate                34%      34%
 Effective income tax rate                         0%       0%

 Deferred tax asset                            10,992    2,399
 Less: Valuation allowance                    (10,992)  (2,399)
                                           --------------------

 Net deferred tax asset                             -        -
                                           --------------------

    The potential income tax benefit of these losses has been offset by a full
    valuation allowance.

    As at 30 September 2006, the Company has an unused net operating loss carry-
    forward balance of approximately $32,331 that is available to offset future
    taxable income.  This unused net operating loss carry-forward balance
    expires between the years 2025 and 2026.




                                                                             (8)


<PAGE>28
NUGGET RESOURCES INC.
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
(Expressed in U.S. Dollars)
30 September 2006


8.  SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS

<TABLE>
<CAPTION>						FOR THE PERIOD
                                              		FROM THE DATE OF
                                           		INCEPTION ON 	   FOR THE		FOR THE
							10 MARCH 2005 TO   YEAR ENDED           YEAR ENDED
                                                        30 SEPTEMBER 2006  30 SEPTEMBER 2006    30 SEPTEMBER 2005


<S>                           <C> <C>                                     <C> <C>               <C> <C>
                                                         $                  $                    $

Cash paid during the year for interest                            -                -                        -
Cash paid during the year for income taxes                        -                -                        -

</TABLE>

    During the year ended 30 September 2006, officers and/or directors of the
    Company made contributions to capital for management fees and rent of
    $12,000 (30 September 2005 - $Nil, cumulative - $12,000) and $2,400 (30
    September 2005 - $Nil, cumulative - $2,400) respectively (Notes 5 and 6).


                                                                             (9)






<PAGE>29
ITEM  8:   CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

ITEM 8A:  CONTROLS AND PROCEDURES

EVALUTION OF DISCLOSURE CONTROLS

We evaluated the effectiveness of our disclosure controls and procedures as of
the end of the 2006 fiscal year.  This evaluation was conducted with the
participation of our chief executive officer and our principal accounting
officer.

Disclosure controls are controls and other procedures that are designed to
ensure that information that we are required to disclose in the reports we file
pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported.

LIMITATIONS ON THE EFFECTIVE OF CONTROLS

Our management does not expect that our disclosure controls or our internal
controls over financial reporting will prevent all error and fraud.  A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
Further, any control system reflects limitations on resources, and the benefits
of a control system must be considered relative to its costs.  These limitations
also include the realities that judgments in decision-making can be faulty and
that breakdowns can occur because of simple error or mistake.  Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people or by management override of a control.  A
design of a control system is also based upon certain assumptions about
potential future conditions; over time, controls may become inadequate because
of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate.  Because of the inherent limitations in a cost-
effective control system, misstatements due to error or fraud may occur and may
not be detected.

CONCLUSIONS

Based upon their evaluation of our controls, the chief executive officer and
principal accounting officer have concluded that, subject to the limitations
noted above, the disclosure controls are effective providing reasonable
assurance that material information relating to us is made known to management
on a timely basis during the period when our reports are being prepared.  There
were no changes in our internal controls that occurred during the quarter
covered by this report that have materially affected, or are reasonably likely
to materially affect our internal controls.

PART III

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

Our executive officers and directors and their respective ages as of the date
of this annual report are as follows:

<PAGE>30

Directors:

Name of Director                 Age

Peter Sorel                       54
David Matzele                     50


Executive Officers:

Name of Officer                  Age       	Office
---------------------            -----          -------
Peter Sorel                       54		President, Chief Executive Officer,
and a Director

David Matzele                     50		Secretary, Treasurer, Principal
						Accounting Officer and a Director


Set forth below is a brief description of the background and business
experience of each of our executive officers and directors for the past five
years.

Mr. Peter Sorel has acted as our President, Chief Executive Officer, and as a
director since July 6, 2005.  Since January, 2001 he has been employed as the
store manager of Nugget Jewelers Inc., a retail jeweler store located in
Victoria, British Columbia, Canada.

Mr. Sorel does not have any professional training or technical credentials in
the exploration, development and operation of mines.

Mr. Sorel intends to devote 50% of his business time per week to our affairs.

Mr. David Matzele has acted as our President, Chief Executive Officer,
Principal Accounting Officer, Secretary and as a director from our
incorporation on March 10, 2005 until July 6, 2005. Since July 6, 2005 Mr.
Matzele has acted as our Secretary, Principal Accounting Officer, Treasurer
and as a director. Since January, 2001 Mr. Matzele has been self employed as
a computer software consultant in Vancouver, British Columbia, Canada.

All directors are elected annually by our shareholders and hold office until
the next Annual General Meeting. Each officer holds office at the pleasure of
the board of directors.  No director or officer has any family relationship
with any other director or officer.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires our executive officers and directors,
and persons who beneficially own more than 10% of our equity securities, to file
reports of ownership and changes in ownership with the Securities and Exchange
Commission. Officers, directors and greater than 10% shareholders are required
by SEC regulation to furnish us with copies of all Section 16(a) forms they
file. Based on our review of the copies of such forms we received, we believe

<PAGE>31

that during the fiscal year ended September 30, 2006 all such filing
requirements applicable to our officers and directors were complied with
exception that reports were filed late by the following persons:


                                Number		Transactions  Known Failures
                                Of late 	Not Timely    To File a
Name and principal position     Reports 	Reported      Required Form
--------------------------- 	-----------    	------------  ---------------
Peter Sorel	                  1                0		    0
(President and CEO and director)

David Matzele	                  1                0		    0
(Secretary, treasurer and director)

ITEM 10:  EXECUTIVE COMPENSATION

The table below summarizes all compensation awarded to, earned by, or paid to
our executive officers by any person for all services rendered in all capacities
to us for the fiscal year ended September 30, 2006.

<TABLE>
<CAPTION>
 <S>              <C>       <C>  <C>    <C>   <C>                       <C>              <C>      <C>         <C>

                           Annual Compensation                         Long Term Compensation
Name (1)         Title     Year Salary Bonus Other Annual Compensation Restricted Stock Options/ LTIP
                                                                       Awarded          SARs (#) payouts ($) All Other
                                                                                                             Compensation
Peter            President 2006 $0     0     0                         0                0        0              0
Sorel		 CEO & Director

David            Secretary 2006 $0     0     0                         0                0        0              0
Matzele          Treasurer
</TABLE>

ITEM  11:   SECURITY  OWNERSHIP  OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth information regarding the beneficial ownership of
our shares of common stock at January 3, 2007 by (i) each person known by us
to be the beneficial owner of more than  5%  of  our  outstanding  shares of
common stock, (ii) each of our directors, (iii) our executive officers, and
(iv) by all of our directors and executive officers as a group.  Each person
named in  the table,  has sole voting and investment power with respect to
all shares shown as beneficially  owned  by such person and can be contacted
at our executive office address.





<PAGE>32

TITLE OF      	NAME AND ADDRESS                  	BENEFICIAL     		PERCENT
CLASS         	OF BENEFICIAL OWNER               	OWNERSHIP      		OF CLASS

Common Stock  	David Matzele			  	5,000,000		47.6%
		Secretary, Principal Accounting
		Officer, Treasurer and Director
		7322 Prince Edward Street,
		Vancouver, BC, Canada

Common Stock	Peter Sorel				0			0%
		President, Chief Executive Officer
                and Director
		778 Fort Street,
		Victoria, BC, Canada

Common Stock	All officers and directors as a group
                that consists of two people           	5,000,000	        47.6%

The percent of class is based on 10,500,000 shares of common stock issued and
outstanding as of the date of this annual report.


ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None of our directors or officers, nor any proposed nominee for election as a
director, nor any person who beneficially owns, directly or indirectly, shares
carrying more than 10% of the voting rights attached to all of our outstanding
shares, nor any promoter, nor any relative or spouse of any of the foregoing
persons has any material interest, direct or indirect, in any transaction since
our incorporation or in any presently proposed transaction which, in either
case, has or will materially affect us.


ITEM 13:  EXHIBITS AND REPORTS

Exhibits

  3.1*            Articles of Incorporation
  3.2*            Bylaws
  5.1*            Legal opinion
 10.1*		  Mineral Property Staking and Purchase Agreement date August 17, 2005
 31.1             Certification pursuant to Rule 13a-14(a) under the
                  Securities Exchange Act of 1934
 31.2             Certification pursuant to Rule 13a-14(a) under the
                  Securities Exchange Act of 1934
 32.1             Certification pursuant to 18 U.S.C. Section 1350, as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                  of 2002
 32.2             Certification pursuant to 18 U.S.C. Section 1350, as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                  of 2002
 99.1*            Claims Location Map

 *  filed as an exhibit to our registration statement on Form SB-2
    dated March 22, 2006

<PAGE>33

Reports on Form 8-K

During and subsequent to the last quarter of fiscal 2006, we did not file any
current reports on Form 8-K:

ITEM 14:  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our principal accountants, James Stafford, Chartered Accountants, rendered
invoices to us during the fiscal periods indicated for the following fees and
services:

					   Inception on
                                         March 10, 2005 to   Fiscal year ended
                                         September 30, 2005  September 30, 2006

Audit fees                                   $2,675                $3,482
Audit-related fees                             Nil                  Nil
Tax fees                                       Nil                  Nil
All other fees                                 Nil                 $5,410

Audit fees consist of fees related to professional services rendered in
connection with the audit of our annual financial statements, the review of the
financial statements included in each of our quarterly reports on Form 10-QSB.

Our policy is to pre-approve all audit and permissible non-audit services
performed by the independent accountants.  These services may include audit
services, audit-related services, tax services and other services.  Under our
audit committee's policy, pre-approval is generally provided for particular
services or categories of services, including planned services, project based
services and routine consultations.  In addition, we may also pre-approve
particular services on a case-by-case basis.  We approved all services that
our independent accountants provided to us in the past two fiscal years.

SIGNATURES

Pursuant to the requirements of Section 13 and 15 (d) of the Securities Exchange
Act of 1934, the Registrant  has  duly  caused  this  report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Nugget Resources Inc.


By     /s/ Peter Sorel
       Peter Sorel
       President, CEO & Director
       Date: January 3, 2007

<PAGE>34

In  accordance  with the Securities Exchange Act, this report  has  been  signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.



By     /s/ Peter Sorel
       Peter Sorel
       President, CEO & Director
       Date: January 3, 2007


By     /s/ David Matzele
       David Matzele
       Secretary Principal Accounting Officer,
       Treasurer and Director
       Date: January 3, 2007