**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10**
**QSB**

**SUNBURST      ACQUISITIONS IV, INC.**

| Colorado                                                      | 0-23561                                 | 84-1431797                                          |
|---------------------------------------------------------------|-----------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation) | (Commission                File Number) | (IRS                Employer Identification Number) |

| 609                Granville Street, Suite 880Vancouver,                BC |  V7Y                1G5 |
|----------------------------------------------------------------------------|------------------------------|
| (Address                of principal executive offices)                    | (Zip                Code)    |

----

**SUNBURST        ACQUISITIONS IV, INC.**

**(An        Exploration Stage Company)**

**Consolidated      Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars)**

----

|  **Index to Consolidated              Financial Statements**        |         |
|--------------------------------------------------------------------------|--------------|
|                                                                     |         |
|  Consolidated Balance                Sheet                          |  3      |
|                                                                     |         |
|  Consolidated Statements of Operations                & Deficit |  4      |
|                                                                     |         |
|  Consolidated Statements of Cash                Flows               |  5      |
|                                                                     |         |
|  Notes to Consolidated Financial                Statements          |  6 - 10 |

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Table          of Contents

**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Consolidated      Balance Sheet**

**November      30**

**(Unaudited)      (U.S. Dollars)**

----

|                                                                  |   |   |   |        |
|-----------------------------------------------------------------------|--------|--------|--------|-------------|
|                                                                  |   |   |   | **2005**    |
|                                                                  |   |   |   |        |
| **Assets**                                                            |   |   |   |        |
|                                                                  |   |   |   |        |
| **Current**                                                           |   |   |   |        |
| Cash                                                                  |   |   | $      | 1,580       |
| Other                current assets                                   |   |   |   | 21,207      |
|                                                                  |   |   |   |        |
| **Total                Assets**                                       |   |   | $      | 22,787      |
|                                                                  |   |   |   |        |
| **Liabilities**                                                       |   |   |   |        |
|                                                                  |   |   |   |        |
| **Current**                                                           |   |   |   |        |
| Accounts                payable and accrued liabilities               |   |   | $      | 112,811     |
| Convertible                debentures (note 4)                        |   |   |   | 30,000      |
| Notes                payable (note 5)                                 |   |   |   | 455,300     |
| Funds                held for private placement (note 6)              |   |   |   | 107,500     |
| Liability                for Mineral Properties (note 3)              |   |   |   | 150,000     |
|                                                                  |   |   |   |        |
| **Total                Liabilities**                                  |   |   |   | 855,611     |
|                                                                  |   |   |   |        |
| **Stockholders'                Equity (Deficit)**                     |   |        |        |             |
|                                                                  |   |   |   |        |
| **Capital                Stock**                                      |   |   |   |        |
| **Authorized**                                                        |   |   |   |        |
| ** **20,000,000                Preferred stock with no par value |   |   |   |        |
| 200,000,000                Common stock with no par value             |   |   |   |        |
| **Issued**                                                            |   |   |   |        |
| ** **89,994,324                Shares of Common stock (note 6)   |   |   |   | 2,578,977   |
| **Additional                Paid-In Capital**                         |   |   |   | 457,146     |
| **Deficit                Accumulated During the Exploration Stage**   |   |   |   | (3,873,501) |
| **Accumulated                Other Comprehensive Income**             |   |   |   | 4,554       |
|                                                                  |   |   |   |        |
| **Total                Stockholders’ Equity (Deficit)**         |   |   |   | (832,824)   |
|                                                                  |   |   |   |        |
| **Total                Liabilities and Stockholders’ Equity**   |   |   | $      | 22,787      |

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Table          of Contents

**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Consolidated      Statements of Operations and Deficit**

**(Unaudited)      (U.S. Dollars) **

----

|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
|                                                                                                     | Period                          Endedfrom                      Inception(August                      27, 1997)to                      November 30, 2005 | Nine-Months                Ended November 30, 2005 | Nine-Months                Ended November 30, 2004 | Nine-Months                Ended November 30, 2005 | Nine-Months                Ended November 30, 2004 |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Revenues**                                                                                             | $246,395                                                                                                                                                | $0                                                 | $0                                                 | $0                                                 | $0                                                 |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Expenses**                                                                                             |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| Cost                of goods sold                                                                        | 24,721                                                                                                                                                  | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| Selling,                general and administrative                                                       | 1,989,325                                                                                                                                               | 148,594                                            | 73,903                                             | 232,458                                            | 250,106                                            |
| **Total                Expenses**                                                                        | 2,014,046                                                                                                                                               | 148,594                                            | 73,903                                             | 232,458                                            | 250,106                                            |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Net                Operating Loss**                                                                    | (1,767,651)                                                                                                                                             | (148,594)                                          | (73,903)                                           | (232,458)                                          | (250,106)                                          |
| **Other                Income and Expense**                                                              |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| Interest                expense                                                                          | (224,377)                                                                                                                                               | (1,323)                                            | (32,083)                                           | (3,013)                                            | (175,000)                                          |
| Gain                on settlement of debt                                                                | 133,185                                                                                                                                                 | 133,185                                            | 0                                                  | 133,185                                            | 0                                                  |
| Gain                on sale of securities                                                                | 469,863                                                                                                                                                 | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| Acquisition                  of resource properties (note 2, note 3)                                     | (1,263,300)                                                                                                                                             | 0                                                  | (255,000)                                          | (150,000)                                          | (937,500)                                          |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Net                Loss from Continuing Operations**                                                   | (2,652,280)                                                                                                                                             | (16,732)                                           | (360,986)                                          | (252,286)                                          | (132,606)                                          |
| **Discontinued                Operations**                                                               |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| Loss                on disposal                                                                          |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| HollywoodBroadcasting.com                                                                                | (2,066,371)                                                                                                                                             | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
| Gain                  on disposition of discontinued operations                                          | 845,150                                                                                                                                                 | 0                                                  | 0                                                  | 0                                                  | 0                                                  |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Net                Loss**                                                                              | (3,873,501)                                                                                                                                             | (16,732)                                           | (360,986)                                          | (252,286)                                          | (132,606)                                          |
| **Accumulated                Deficit, Beginning of Period**                                              | 0                                                                                                                                                       | (3,856,769)                                        | (2,482,042)                                        | (3,621,215)                                        | (2,003,427)                                        |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Accumulated                Deficit, End of Period**                                                    | $(3,873,501)                                                                                                                                            | $(3,873,501)                                       | $(2,843,028)                                       | $(3,873,501)                                       | $(3,366,033)                                       |
| **Other                Comprehensive Loss**                                                              |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| Foreign                exchange gain (loss) on translation                                               | 20,822                                                                                                                                                  | 1,618                                              | (1,072)                                            | 4,554                                              | (2,427)                                            |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Total                Comprehensive Loss**                                                              | $(3,852,679)                                                                                                                                            | $(15,114)                                          | $(361,165)                                         | $(247,732)                                         | $(1,365,033)                                       |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
| **Total                Loss Per Share**                                                                  |                                                                                                                                                    | $                (0.00)                            | $                (0.00)                            | $                (0.00)                            | $                (0.02)                            |
|                                                                                                     |                                                                                                                                                    |                                               |                                               |                                               |                                               |
|  **Weighted                Average Number of shares of****Common                Stock Outstanding** |                                                                                                                                                    |  89,627,291                                   |  86,618,692                                   |  87,885,930                                   |  69,849,448                                   |

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Consolidated      Statements of Cash Flows**

**(Unaudited)      **

----

|                                                                            |                                                                                                        |                                                           |                                                           |
|---------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                                                                            | Period                of Inception (August                27, 1997)to                November 30, 2005 |   Nine-Months                Ended November 30, 2005 |   Nine-months                Ended November 30, 2004 |
| **Operating                Activities**                                         |                                                                                                        |                                                           |                                                           |
| Net                loss                                                         | $(3,873,501)                                                                                                | $(252,286)                                                     | $(1,362,606)                                                   |
| **Adjustments                to reconcile net income (loss) to net cash flows** |                                                                                                        |                                                           |                                                           |
| Write-off                of note receivable                                     | 57,500                                                                                                      | 0                                                              | 57,500                                                         |
| Acquisition                of resource properties for shares (note 2, note 3)   | 580,000                                                                                                     | 150,000                                                        | 430,000                                                        |
| Discount                on Convertible Debentures (note 4)                      | 175,000                                                                                                     | 0                                                              | 175,000                                                        |
| Gain                on sale of securities                                       | (469,863)                                                                                                   | 0                                                              | 0                                                              |
| Unrealized                Foreign Exchange (gain) loss                          | 17,700                                                                                                      | (1,325)                                                        | (6,659)                                                        |
| Issuance                of options                                              | 488,130                                                                                                     | 0                                                              | 0                                                              |
| Issuance                of shares for consulting services                       | 100,000                                                                                                     | 100,000                                                        | 0                                                              |
| Allowance                for doubtful accounts                                  | 88,360                                                                                                      | 0                                                              | 0                                                              |
| Discontinued                operations                                          | (846,150)                                                                                                   | 0                                                              | 0                                                              |
| Decrease                in inventory                                            | (57,705)                                                                                                    | 0                                                              | 0                                                              |
| Increase                in other assets                                         | (493,198)                                                                                                   | (13,094)                                                       | (1,005)                                                        |
| Decrease                in accounts receivable                                  | (37,910)                                                                                                    | 0                                                              | (1,443)                                                        |
| Increase                in accrued expenses                                     | 150,218                                                                                                     | 0                                                              | 0                                                              |
| Increase                in customer deposits                                    | 0                                                                                                           | 0                                                              | 5,650                                                          |
| Increase                in accounts payable and accrued liabilities             | 215,850                                                                                                     | 80,863                                                         | 2,673                                                          |
| Decrease                in notes payable                                        | (28,500)                                                                                                    | (28,500)                                                       | 0                                                              |
| Gain                on settlement of debt                                       | (133,185)                                                                                                   | (133,185)                                                      | 0                                                              |
| Amortization                                                                    | 52,332                                                                                                      | 0                                                              | 0                                                              |
| **Net                Cash Flows from Operating Activities**                     | (4,014,922)                                                                                                 | (97,527)                                                       | (700,890)                                                      |
| **Investing                Activities**                                         |                                                                                                        |                                                           |                                                           |
| Purchase                of investment                                           | (22,353)                                                                                                    | 0                                                              | 0                                                              |
| Maturity                of investment                                           | 22,353                                                                                                      | 0                                                              | 0                                                              |
| Proceeds                from sale of securities                                 | 394,863                                                                                                     |                                                           | 0                                                         |
| Purchase                of property and equipment                               | (208,585)                                                                                                   | 0                                                              | 0                                                              |
| **Cash                Provided by (Used in) Investing Activities**              | 186,278                                                                                                     | 0                                                              | 0                                                              |
| **Financing                Activities**                                         |                                                                                                        |                                                           |                                                           |
| Issuance                of note receivable                                      | (57,500)                                                                                                    | 0                                                              | 0                                                              |
| Related                party debt                                               | 691,056                                                                                                     | 0                                                              | 0                                                              |
| Proceeds                from notes payable to stockholders                      | 548,191                                                                                                     | 0                                                              | 0                                                              |
| Proceeds                from notes payable                                      | 555,800                                                                                                     | 455,300                                                        | 0                                                              |
| Proceeds                from convertible debenture                              | 530,000                                                                                                     | 0                                                              | 500,000                                                        |
| Repayment                of convertible debenture                               | (541,815)                                                                                                   | (541,815)                                                      | 0                                                              |
| Proceeds                from exercise of options                                | 111,000                                                                                                     | 43,000                                                         | 35,000                                                         |
| Stock                subscriptions                                              | 174,525                                                                                                     | 107,500                                                        | 196,135                                                        |
| Paid-in                capital                                                  | 16                                                                                                          | 0                                                              | 0                                                              |
| Issuance                of common stock                                         | 1,818,951                                                                                                   | 0                                                              | 5,975                                                          |
| **Cash                Provided by Financing Activities**                        | 3,830,224                                                                                                   | 63,985                                                         | 737,110                                                        |
| **Inflow                of Cash and Cash Equivalents**                          | 1,580                                                                                                       | (33,542)                                                       | 36,220                                                         |
| **Cash                and Cash Equivalents, Beginning of Period**               | 0                                                                                                           | 35,122                                                         | 22,077                                                         |
| **Cash                and Cash Equivalents, End of Period**                     | $1,580                                                                                                      | $1,580                                                         | $58,297                                                        |

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Notes      to Consolidated Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars) **

----

| **1.  ** | **MANAGEMENT’S                REPRESENTATION OF INTERIM FINANCIAL                INFORMATION** |
|--------------------|------------------------------------------------------------------------------------------------------|

**2.**
**ACQUISITION      OF SIERRA MINERALS AND MINING, INC.**

|   | In                the 2004 fiscal year, during the quarter ending May 31, 2004, the                Company                completed a share exchange with the shareholders of Sierra Minerals                and                Mining, Inc. (“Sierra”).  Pursuant to the terms of the share exchange                agreement, the Company issued 43,000,000 shares of its common stock                in                exchange for all of the outstanding shares of Sierra.  As a result,                Sierra became a wholly owned subsidiary of the Company.  The common                stock was valued at $0.01 per share.  Finder’s fees of 6,000,000                options to purchase the same number of shares of common stock of                the                Company at $0.01 per share were payable to non-related parties in                connection with this share exchange.  The options were issued on May                25, 2004 and an amount of $175,800 was recorded as finders’ fees and                additional paid in capital.  Sierra is a company incorporated in the                state of Nevada that was incorporated just prior to the share exchange                with the Company.  Sierra had no activities or operations other than                having an option to acquire an interest in a certain mining properties                in                Mexico, as noted below.  Due to the uncertainty of the future revenue                to be generated from this property the cost of the acquisition of                $430,000                was charged to operations for the quarter ending May 31,                2004. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Sierra                was party to a joint venture agreement with Minera Rio Tinto S.A.                de C.V.                (“MRT”), a Mexican company pursuant to which Sierra and MRT had agreed                to                explore and develop, if feasible, certain mining properties in the                state                of Chihuahua, Mexico. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                joint venture agreement between Sierra and MRT required Sierra to                invest                cash totalling $1,000,000 by June 30, 2004 and to secure a $2,000,000                line                of credit for the joint venture within sixty days of signing the                joint                venture agreement. MRT would contribute the properties. The joint                venture                was to be owned 60% by Sierra and 40% by MRT, however, should Sierra                fail                to secure the line of credit, its interest would be reduced to 30%                and the                interest of MRT would be increased to 70%. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Notes      to Consolidated Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars) **

----

**2.**
**ACQUISITION      OF SIERRA MINERALS AND MINING, INC. (continued)**

**3.**
**MINERAL      PROPERTIES**

**4.**
**CONVERTIBLE      DEBENTURES**

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Notes      to Consolidated Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars) **

----

**4.**
**CONVERTIBLE      DEBENTURES (continued)**

**5.**
**NOTES      PAYABLE**

**6.**
**COMMON      STOCK**

|                                                 |                                |       |
|------------------------------------------------------|-------------------------------------|------------|
|                                                 | **Number                of Shares** | **Amount** |
| Balance,                February 28, 2005            | 86,894,324                          | $2,435,977 |
| Issued                during the period:             |                                |       |
| No                shares issued                      | -                                   | -          |
| Balance,                May 31, 2005                 | 86,894,324                          | $2,435,977 |
| Issued                during the period:             |                                |       |
| Pursuant                to exercise of stock options | 1,000,000                           | 25,000     |
| Pursuant                to compensation shares       | 500,000                             | 20,000     |

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Notes      to Consolidated Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars) **

----

**6.**
**COMMON      STOCK (continued)**

|                                                 |       |       |
|------------------------------------------------------|------------|------------|
| Balance,                August 31, 2005              | 88,394,324 | $2,480,977 |
| Issued                during the period:             |       |       |
| Pursuant                to exercise of stock options | 600,000    | 18,000     |
| Pursuant                to compensation shares       | 1,000,000  | 80,000     |
|                                                 |       |       |
| Balance,                November 30, 2005            | 89,994,324 | $2,578,977 |

|   | During                the quarter ended May 31, 2005, the Company issued no shares. |
|--------|-------------------------------------------------------------------------------------|

**7.**
**RELATED      PARTY**

|   | The                Company paid consulting fees of $15,000 (2004 - nil) to a former                officer                and director of the Company under the Services Agreement entered                into on                September 14, 2005, effective June 1, 2005. The services were on                a month                to month basis at $4,000 per month for the first three months and                $1,500                per month thereafter. This Services Agreement was terminated effective                October 31, 2005 and no further amounts are                payable. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.** | **SUBSEQUENT                EVENTS** |
|--------|--------------------------------------|

**Mineral      Properties **

|   | On                December 8, 2005, the Company and its wholly owned subsidiary, Sunburst                de                Mexico, S.A. de C.V. (“Sunburst Mexico), entered into an agreement (the                “New Agreement”) with Minera Rio Tinto, S. A. De C. V. (“MRT”), a company                duly incorporated and validly existing pursuant to the laws of the                United                Mexican States. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                material terms of the New Agreement are: |
|--------|-------------------------------------------------------------|

|   | (1)                To cancel the Operator’s Agreement originally signed August 18, 2005; |
|--------|------------------------------------------------------------------------------------------------|

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**SUNBURST      ACQUISITIONS IV, INC.**

**(An      Exploration Stage Company)**

**Notes      to Consolidated Financial Statements**

**Nine-Months      Ended November 30, 2005**

**(Unaudited)      (U.S. Dollars) **

----

**8.**
**SUBSEQUENT      EVENTS (continued)**

|   | (2)                To replace the Share Option Agreement, signed on August 18, 2005.                In the                New Agreement, the Company granted MRT the option to buy all of the                outstanding shares of Sunburst Mexico for $100 if the Company fails                to                raise a minimum of $2,000,000 in gross proceeds and transfer $1.5                million                to Sunburst Mexico by April 30, 2006.  Of the $1.5 million to be                transferred, $60,000 must be transferred to Sunburst Mexico by December                10, 2005 (paid) and $40,000 must be transferred to Sunburst Mexico                by                January 15, 2006, leaving a balance of $1.4 million due by April                30,                2006; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Notes      Payable **

|   | On                December 1, 2005, the Company issued promissory notes (the “Notes”) to                investors for a total of $455,300. The proceeds of the Notes were                used to                pay off the Purchasers of the Debentures (see Note 4). The Notes                bear                interest at 7% per annum, are unsecured and are                due December 31, 2006; all or any parts of the principal may be prepaid                at                any time without penalty.                During December 2005, the                Company prepaid $150,000 of the Notes. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Convertible      Debenture **

|   | On                December 21, 2005, the Company repaid in full the $30,000 convertible                debenture plus accrued interest of                $4,645. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **Common                Stock - Shares for debt** |
|--------|---------------------------------------------------|

|   | The                Company was loaned $300,000 in mid December from arms-length investors.                These funds were unsecured, non-interest bearing, and with no specific                terms of repayment. Proceeds were used to prepay $150,000 of Notes,                advance $60,000 to Sunburst Mexico and for general working capital.                On                January 6, 2006, the Company disclosed in an 8-K filing that it issued                100,000,000 shares of newly issued common stock in settlement of                the                $300,000 loan. As of January 6, 2006, there are 189,994,324 shares                of                common stock issued and outstanding. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM      2.**
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS**

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(3)

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|   | 2.1        | Securities              Purchase Agreement dated as of August 25, 2004 among Sunburst Acquisitions              IV, Inc. (and identified purchasers) (incorporated by reference from              Current Report on Form 8-K and filed with the Securities and Exchange              Commission on August 31, 2004).                                                                                                                                      |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 2.2   | Share Exchange Agreement, dated May              3, 2004,              by and among Sunburst Acquisitions IV, Inc., a Colorado corporation,              Sierra Minerals and Mining, Inc., a Nevada corporation, and the              shareholders of Sierra Minerals & Mining, Inc. (incorporated              by reference from Current Report on Form 8-K/A and filed with the              Securities and Exchange Commission on August 9, 2004). |
|   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 2.3        | Joint              Venture Agreement, dated April 26, 2004 and amended on June 1, 2004,              by              and between Sierra Mining and Minerals, Inc., a Nevada corporation,              and              Minera Rio Tinto S.A. de C.V., a Mexican company (incorporated              by reference from Current Report on Form 8-K/A and filed with the              Securities and Exchange Commission on August 9,              2004)      |

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|   |  2.4                         |  Amendment to Joint Venture Agreement              dated June 1, 2004 (incorporated by reference from Current Report on              Form              8-K/A and filed with the Securities and Exchange Commission on August              9,              2004).                                                                                                                                                                       |
|--------|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  3 (i)                       |  Articles              of Incorporation (incorporated by reference from Registration Statement              on              Form 10-SB/A filed with the Securities and Exchange Commission on December              29, 1997).                                                                                                                                                                                                         |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  3 (ii)                 | Bylaws (incorporated by reference from              Registration Statement on Form 10-SB/A filed with the Securities and              Exchange Commission on December 29, 1997).                                                                                                                                                                                                                                                            |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  4.1                         | Specimen Common Stock Certificate              (incorporated by reference from Registration Statement on Form 10-SB/A              filed with the Securities and Exchange Commission on December 29,              1997).                                                                                                                                                                                                                    |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  4.2                    | Registration              Agreement dated April 20, 2004, by and among Sunburst Acquisitions              IV,              Inc., a Colorado company, and each of the purchasers in a private              placement of shares of Sunburst (incorporated              by reference from Current Report on Form 8-K/A and filed with the              Securities and Exchange Commission on August 9, 2004).                                  |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  10.1                   | Distribution              Agreement between EPI and Sunburst Acquisitions IV, Inc. (incorporated              by              reference from Form 10-KSB filed with the Securities and Exchange              Commission on May 20, 2002).                                                                                                                                                                                                   |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  10.2                        | Distribution Agreement by and between              Romlight International, Inc. and Sunburst Digital, Inc. (incorporated              by              reference from Form 10-KSB filed with the Securities and Exchange              Commission on June 11, 2003).                                                                                                                                                                          |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  10.3                        | Promissory              Note between Sunburst Acquisitions IV, Inc. and Minera              Rio Tinto S.A. de C.V. in the amount of $ 57,500 dated January 9, 2004              (incorporated              by reference from Current Report on Form 8-K/A and filed with the              Securities and Exchange Commission on August 9, 2004).                                                                                            |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  10.4                   | Promissory              Note between Sierra Mineral and Mining, Inc. and Minera              Rio Tinto S.A. de C.V. in the amount of $ 167,500, dated May 3, 2004              (incorporated              by reference from Current Report on Form 8-K/A and filed with the              Securities and Exchange Commission on August 9, 2004).                                                                                             |
|   |                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  10.5                   | Funds              Escrow Agreement dated July 2005, among Sunburst Acquisitions IV, Inc.,              Investment Fund, Ltd., Alpha Capital AG and Stonestreet LP, and Grushko              & Mittman, P.C. (herein incorporated by reference from the Company’s              current report on Form 8-K dated July 1, 2005 and filed with the              Securities and Exchange Commission on August 17,              2005). |

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|   | 10.6  | Repayment                Agreement dated July 15, 2005 by and among Sunburst IV, Inc. and                Investment Fund, Ltd., Alpha Capital AG and Stonestreet LP. (herein                incorporated by reference from the Company’s current report on Form 8-K                dated July 1, 2005 and filed with the Securities and Exchange Commission                on August 17, 2005). |
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|   | 10.7  | Consulting                Agreement dated July 1, 2005 between Tracy A. Moore and Sunburst                Acquisitions IV, Inc. (herein incorporated by reference from the                Company’s                current report on Form 8-K dated July 1, 2005 and filed with the                Securities and Exchange Commission on August 17,                2005). |
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|   |   |   |
|--------|--------|--------|

|   | 10.8  | SHARE                OPTION AGREEMENT among Minera Rio Tinto, S.A. de C.V. a corporation                duly                incorporated and validly existing pursuant to the laws of the United                Mexican States and having an office at Pascual Orozco No. 2117 -                A                Chihuahua, State of Chihuahua, Mexico 31310 and Sunburst Acquisitions                IV,                Inc., a corporation duly incorporated and validly existing pursuant                to the                laws of the State of Colorado, USA and having an office at Suite                206, 595                Howe St., Vancouver, B.C. Canada V6C 2T5 (herein incorporated by                reference                from the Company’s report on Form 8-K for report date August 22, 2005 and                filed with the Securities and Exchange Commission on August 25,                2005). |
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|   | 10.9  | AGREEMENT                made and entered in the City of Chihuahua, State of Chihuahua as                of the                18th day of August, 2005 among COMPAÑÍA MINERA DE NAMIQUIPA, S. A. DE C.                V. a company duly incorporated and validly existing pursuant to the                laws                of the United Mexican States, and MINERA RIO TINTO, S. A. DE C. V.                a                company duly incorporated and validly existing pursuant to the laws                of the                United Mexican States, and MARIO HUMBERTO AYUB TOUCHE having a domicile                at                San Antonio No. 2036 Chihuahua, Chihuahua and SUNBURST MINING DE                MÉXICO,                S. A. DE C. V., a company duly incorporated and validly existing                pursuant                to the laws of the United Mexican States (herein incorporated by                reference                from the Company’s report on Form 8-K for report date August 22, 2005 and                filed with the Securities and Exchange Commission on August 25,                2005). |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | AGREEMENT                made and entered at the City of Chihuahua, State of Chihuahua on                this the                18th day of August of the year 2005, among MINERA RIO TINTO, S. A.                DE C.                V. a company duly incorporated and validly existing pursuant to the                laws                of the United Mexican States, and SUNBURST MINING DE MÉXICO, S. A. DE C.                V. a company duly incorporated and validly existing pursuant to the                laws                of the United Mexican States (herein incorporated by reference from                the                Company’s report on Form 8-K for report date August 22, 2005 and filed                with the Securities and Exchange Commission on August 25,                2005). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.11 | OPERATOR’S                AGREEMENT dated effective as of the 18th day of August, 2005, among                Minera                Rio Tinto, S.A. de C.V. a corporation duly incorporated and validly                existing pursuant to the laws of the United Mexican States and having                an                office at Pascual Orozco No. 2117 - A Chihuahua, State of Chihuahua,                Mexico 31310, and Sunburst de Mexico, S.A. de C.V. a corporation                duly                incorporated and validly existing pursuant to the laws of the United                Mexican States and having an office at Suite 5, Avenida del Mar No.1022                Zona Costera, Mazatlan, State of Sinaloa, Mexico (herein incorporated                by                reference from the Company’s report on Form 8-K for report date August 22,                2005 and filed with the Securities and Exchange Commission on August                25,                2005). |
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|   | 10.12 | ASSIGNMENT                OF CONTRACT AGREEMENT made and entered in the City of Chihuahua,                State of                Chihuahua as of this the 18th day of August, 2005 among MINERA RIO                TINTO,                S. A. DE C. V. a company duly incorporated and validly existing pursuant                to the laws of the United Mexican States, and CORPORATIVO MINERO,                S.A. DE                C.V. a company duly incorporated and validly existing pursuant to                the laws                of the United Mexican States, and SUNBURST MINING DE MÉXICO, S. A. DE C.                V. a company duly incorporated and validly existing pursuant to the                laws                of the United Mexican States (herein incorporated by reference from                the                Company’s report on Form 8-K for report date August 22, 2005 and filed                with the Securities and Exchange Commission on August 25,                2005). |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.13 | ASSIGNMENT                OF CONTRACT AGREEMENT made and entered in the City of Chihuahua,                State of                Chihuahua as of this the 18th day of August, 2005, among MINERA RIO                TINTO,                S. A. DE C. V. a company duly incorporated and validly existing pursuant                to the laws of the United Mexican States, and RAFAEL FERNANDO ASTORGA                HERNÁNDEZ, having a domicile at Calle República de Uruguay No. 706 of the                City of Chihuahua, Chih, and SUNBURST MINING DE MÉXICO, S. A. DE C. V. a                company duly incorporated and validly existing pursuant to the laws                of the                United Mexican States (herein incorporated by reference from the                Company’s                report on Form 8-K for report date August 22, 2005 and filed with                the                Securities and Exchange Commission on August 25,                2005). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14 | ASSIGNMENT                OF CONTRACT AGREEMENT made and entered in the City of Chihuahua,                State of                Chihuahua as of this the 18th day of August, 2005 among MINERA RIO                TINTO,                S. A. DE C. V. a company duly incorporated and validly existing pursuant                to the laws of the United Mexican States, having an office at Av.                Pascual                Orozco Number 2117- Altos, La Cima, C. P. 31310, Chihuahua, Chihuahua,                and                MINERA RACHASA, S.A. DE C.V., a company duly incorporated and validly                existing pursuant to the laws of the United Mexican States, and having                an                office atNiños Héroes No. 410 Colonia Centro, Chihuahua, Chihuahua (RFC                BMM-900120-8B6), and SUNBURST MINING DE MÉXICO, S. A. DE C. V. a company                duly incorporated and validly existing pursuant to the laws of the                United                Mexican States (herein incorporated by reference from the Company’s report                on Form 8-K for report date August 22, 2005 and filed with the Securities                and Exchange Commission on August 25,                2005). |
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|   | 10.15 | THE                NEW AGREEMENT entered into on December 8, 2005 among the Company,                Sunburst                Mexico, and MRT (herein incorporated by reference from the Company’s                current report on Form 8-K for report date December 8, 2005 and filed                with                the Securities and Exchange Commission on December 14,                2005). |
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|   | 31.1 | Certification                of Chief Executive                Officer of Sunburst Acquisitions IV, Inc. pursuant to Rule                13a-14(a)/15d-14(a). * |
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|   | 31.2 | Certification                of Chief Financial                Officer of Sunburst Acquisitions IV, Inc. pursuant to Rule                13a-14(a)/15d-14(a). * |
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|   | 32.1 | Certification                of Chief Executive                Officer of Sunburst Acquisitions IV, Inc. pursuant to 18 U.S.C. Section                1350. * |
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|   | 32.2 | Certification                of Chief Financial                Officer of Sunburst Acquisitions IV, Inc. pursuant to 18 U.S.C. Section                1350. * |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURE**

**SUNBURST      ACQUISITIONS IV, INC.**

|  By:              /S/ Robert Knight                 |
|----------------------------------------------------------|
|  Robert Knight, President and              Director |

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