================================================================================



                    U.S. SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                FORM 10-QSB


                Quarterly Report under Section 12(b) or 12(g) of
                           The Securities Act of 1934

                       For the Period ended July 31, 2006
                        Commission File Number 333-134549



                             ARBUTUS RESOURCES, INC.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)

                  Nevada                                 N/A
          ----------------------                --------------------
         (State of incorporation)               (Employer ID Number)


                              #4 3798 Laurel Street
                    -----------------------------------------
                    Burnaby, British Columbia, Canada V5G 1M7
                    -----------------------------------------
                                 (250) 729-6731
           ------------------------------------------------------------
          (Address and telephone number of principal executive offices)


Check whether the registrant  (1) has filed all reports  required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
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
                       ------                                   ------


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

                  Yes     X                                   No
                       -------                                  ------

There were 8,780,000 shares of Common Stock outstanding as of July 31, 2006.



<page>






                             ARBUTUS RESOURCES INC.
                         (An Exploration Stage Company)
                              FINANCIAL STATEMENTS
                                  JULY 31, 2006
                                   (Unaudited)




















BALANCE SHEETS

INTERIM STATEMENTS OF OPERATIONS

STATEMENT OF STOCKHOLDERS' EQUITY

INTERIM STATEMENTS OF CASH FLOWS

NOTES TO THE INTERIM FINANCIAL STATEMENTS






<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
BALANCE SHEETS
<table>
<caption>
=============================================================================================================
                                                                                 July 31,      January 31,
                                                                                   2006            2006
                                                                                  - $ -           - $ -
                                                                              --------------- ---------------
                                                                               (Unaudited)      (Audited)
                                                                              --------------- ---------------

                                                                               <c>          <c>
ASSETS

Current assets
         Cash                                                                         41,496          50,125
-------------------------------------------------------------------------------------------------------------

                                                                                      41,496          50,125
=============================================================================================================


LIABILITIES

Current liabilities
         Accounts payable and accrued liabilities                                          -           5,000
                                                                              --------------- ---------------

STOCKHOLDERS' EQUITY

Common stock (Note 3)
   Authorized:
   75,000,000 common shares with a par value of $0.001
   Issued and outstanding:
   8,780,000 common shares (January 31, 2006: 8,780,000)                               8,780           8,780
Additional paid-in capital                                                            65,620          65,620
Deficit accumulated during the exploration stage                                    (32,904)        (29,275)
                                                                              --------------- ---------------
                                                                                      41,496          45,125
                                                                              --------------- ---------------

------------------------------------------------------------------------------------------------------------

                                                                                      41,496          50,125
=============================================================================================================
</table>
Nature and continuance of operations (Note 1)











                           - See Accompanying Notes -


<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
<table>
<caption>
==============================================================================================================
                                                                                                 Cumulative
                                                                                    Six          from April
                                                Three        Three                  months        19, 2004
                                               months       months     Six months   ended        (Inception)
                                             ended July   ended July   ended July   July 31,     to July 31,
                                              31, 2006     31, 2005     31, 2006       2005         2006
                                                - $ -        - $ -        - $ -       - $ -         - $ -
                                             ------------ ------------ ------------ ----------- --------------

                                           <c>          <c>          <c>          <c>         <c>
Expenses

General and administrative                         1,956            -        3,629           -          6,748

Mineral property costs (Note 2)                        -            -            -           -         24,200
                                             ------------ ------------ ------------ ----------- --------------

Net loss                                          (1,956)           -       (3,629)          -        (30,948)
                                             ============ ============ ============ =========== ==============

Basic and diluted net loss per share              (0.00)       (0.00)        (0.00)      (0.00)
                                             ------------ ------------ ------------ ----------- --------------

Weighted average number of shares
outstanding                                    8,780,000    1,416,665    8,780,000      708,33
                                             ============ ============ ============ ===========
</table>

























                                         - See Accompanying Notes -

<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
For the period April 19, 2004 (Inception) to April 30, 2006
<table>
<caption>
============================================================================================================================
                                                                                               Deficit
                                                                                             Accumulated
                                                                          Additional         During the
                                                Common Shares               Paid-in          Exploration
                                         -----------------------------
                                            Number        Par Value         Capital             Stage             Total
                                         -------------   -------------   --------------    ----------------    -------------

                                       <c>             <c>             <c>               <c>                 <c>
Balance April 19, 2004                              -  $            -  $             -   $               -   $            -

Net loss                                            -               -                -                   -                -
----------------------------------------------------------------------------------------------------------------------------

Balance, January 31, 2005                           -               -                -                   -                -

Capital stock issued for cash:
- July 2005 at $0.001 per share             7,400,000           7,400                -                   -            7,400
- July 2005 at $0.05 per share              1,100,000           1,100            9,900                   -           11,000
- August 2005 at $0.20 per share               30,000              30            5,970                                6,000
                                                                                                         -
- December 2005 at $0.20 per share            250,000             250           49,750                   -           50,000
Net loss                                            -               -                -            (29,275)         (29,275)
----------------------------------------------------------------------------------------------------------------------------

Balance, January 31, 2006 (Audited)         8,780,000           8,780           65,620            (29,275)           45,125

Net loss                                            -               -                -             (3,629)          (3,629)
----------------------------------------------------------------------------------------------------------------------------

Balance, April 30, 2006 (Unaudited)         8,780,000  $        8,780  $        65,620   $        (32,904)   $       41,496
============================================================================================================================
</table>





















                                                - See Accompanying Notes -

<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<table>
<caption>
===========================================================================================================================
                                                                                                Six        Cumulative from
                                                                                               months      April 19, 2004
                                                                                 Six months    ended       (Inception) to
                                                                                 ended July   July 31,        July 31,
                                                                                  31, 2006       2005          2006
                                                                                   - $ -        - $ -          - $ -
                                                                                ------------- ----------- -----------------

                                                                              <c>            <c>        <c>
CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                                                             (3,629)           -          (30,948)
Changes in non-cash working capital accounts
                                                                                     (5,000)           -          (13,000)
                                                                                ------------- ----------- -----------------

Net cash used in operations                                                          (8,629)           -          (43,948)
                                                                                ------------- ----------- -----------------

CASH FLOWS FROM FINANCING ACTIVITIES

Shares issued for cash                                                                     -      18,400           74,400
                                                                                ------------- ----------- -----------------

                                                                                                                   74,400
Net cash provided by financing activities                                                  -      18,400
                                                                                ------------- ----------- -----------------

NET INCREASE (DECREASE) IN CASH                                                      (8,629)           -           30,452

CASH, BEGINNING                                                                                                          -
                                                                                     50,125            -
                                                                                ------------- ----------- -----------------

CASH, ENDING                                                                         41,496       18,400           30,452
                                                                                ============= =========== =================

Supplemental cash flow information:

         Cash paid for:

            -Interest                                                                      -           -                 -

            -Income taxes                                                                  -           -                 -
                                                                                ============= =========== =================
</table>









                                                - See Accompanying Notes -
<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
Notes To The Financial Statements
July 31, 2006
(Unaudited)
================================================================================
1.      NATURE AND CONTINUANCE OF OPERATIONS

        The  Company was  incorporated  in the State of Nevada on April 19, 2004
        and is in the exploration stage of its resource business.  Prior to July
        2005 the  Company  was  dormant,  had not  issued any shares and had not
        entered into any  transactions.  During the year ended  January 31, 2006
        the  Company  commenced  operations  by issuing  shares and  acquiring a
        mineral  property located in the Province of British  Columbia,  Canada.
        The  Company  has not yet  determined  whether  this  property  contains
        reserves that are economically recoverable.  The recoverability of costs
        incurred  for  acquisition  and  exploration  of the  property  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 to complete
        the development of the property and upon future profitable production or
        proceeds for the sale thereof.

        These  financial  statements have been prepared on a going concern basis
        which  assumes  the  Company  will be able to  realize  its  assets  and
        discharge  its  liabilities  in the normal  course of  business  for the
        foreseeable  future.  The Company has incurred  losses  since  inception
        resulting in an  accumulated  deficit of $32,904 as at July 31, 2006 and
        further  losses  are  anticipated  in the  development  of its  business
        raising  substantial  doubt about the Company's ability to continue as a
        going  concern.  The ability to continue as a going concern is dependent
        upon the Company generating  profitable  operations in the future and/or
        to obtain the necessary  financing to meet its obligations and repay its
        liabilities  arising from normal business operations when they come due.
        Management  intends to  finance  operating  costs  over the next  twelve
        months  with  existing  cash on hand and  loans  from  directors  and or
        private placement of common stock.


        The  accompanying  unaudited  interim  financial  statements  have  been
        prepared in accordance with United States generally accepted  accounting
        principles for interim  financial  information and with the instructions
        to Form 10-QSB of Regulation  S-B. They may not include all  information
        and footnotes  required by United States generally  accepted  accounting
        principles  for  complete  financial  statements.   However,  except  as
        disclosed herein, there have been no material changes in the information
        disclosed in the notes to the financial  statements for the period ended
        January 31,  2006  included  in the  Company's  Form SB-2 filed with the
        Securities  and Exchange  Commission.  The interim  unaudited  financial
        statements should be read in conjunction with those financial statements
        included in the Form SB-2. In the opinion of Management, all adjustments
        considered  necessary  for a fair  presentation,  consisting  solely  of
        normal recurring adjustments,  have been made. Operating results for the
        six months  ended July 31, 2006 are not  necessarily  indicative  of the
        results that may be expected for the year ending January 31, 2007.

2.      MINERAL INTERESTS

        Green Energy Claim, British Columbia, Canada
        --------------------------------------------
        On October 1, 2005 the  Company  acquired a 100%  interest  in the Green
        Energy  Claim  located  in the  Province  of British  Columbia,  Canada.
        Consideration  for the  acquisition  was  $20,000  paid to an  unrelated
        party.  During the year ended  January 31,  2006 the Company  incurred a
        total of $24,200 of property  costs which were expensed in the year. The
        mineral  interest  is held in trust for the Company by the vendor of the
        property.  Upon  request  from the Company the title will be recorded in
        the name of the Company with the appropriate mining recorder.

<page>

ARBUTUS RESOURCES INC.
(An Exploration Stage Company)
Notes To The Financial Statements
July 31, 2006
(Unaudited)
================================================================================
3.      COMMON STOCK

        The total number of common shares  authorized  that may be issued by the
        Company is  75,000,000  shares with a par value of one tenth of one cent
        ($0.001) per share and no other class of shares is authorized.

        During the year ended  January 31, 2006,  the Company  issued  8,780,000
        shares of common stock for total cash  proceeds of $74,400.  At July 31,
        2006, there were no outstanding stock options or warrants.

4.      INCOME TAXES

        As of July 31, 2006,  the Company had net operating  loss carry forwards
        of  approximately  $33,000 that may be available to reduce future years'
        taxable  income  through 2026.  Future tax benefits which may arise as a
        result  of these  losses  have not been  recognized  in these  financial
        statements,  as their  realization is determined not likely to occur and
        accordingly,  the Company has  recorded a  valuation  allowance  for the
        deferred tax asset relating to these tax loss carry-forwards.















<page>

ITEM 2.  PLAN OF OPERATION AND RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED
-------  ---------------------------------------------------------------------

Plan of Operation
-----------------

Our plan of operation for the twelve months following the date of this report is
to complete  the  recommended  phase I  exploration  program  which  consists of
mapping and sampling.  We intend to commence this phase in the fall of 2006. The
phase will take approximately one month to complete.

Following  the  successful  completion of phase I we will commence with phase II
which will consist of detailed  sampling and radiometric  surveys.  We intend to
commence this phase in the spring of 2007. The phase will take approximately one
month to complete.

Should  the  results  of phase II  detects  concentrations  of  Uranium  we will
commence with phase III which will consist of drilling.


Phases I to III will involve the following:

1.   Phase I:  Mapping  the  extent of the basalt  cap and  reconnaissance  soil
     sampling.  Available  maps of the  area  are  regional  and  insufficiently
     detailed.  In practice it is recommended  to do traverses  spaced 250 meter
     apart across the topographic  ridge and map all outcrops.  The contact zone
     of the basalt cap, once mapped,  needs to be systematically  sampled at 200
     meter intervals. This would detect uranium leaching from a paleochannels or
     from mineralized  paleochannels  uncovered by erosion of the basalt cap. We
     anticipate the cost of this phase to be approximately $5,320.

2.       Phase II:  Soil  sampling  (50 meter  intervals  along 50 meter  spaced
     lines) and radiometric surveys over all areas with elevated uranium defined
     under 1. above. We anticipate the cost of this phase to be approximately
     $5,320.

3.   Phase III:  Drilling  involves  extracting a long cylinder of rock from the
     ground to determine  amounts of metals at different  depths.  Pieces of the
     rock obtained,  known as drill core, are analysed for mineral  content.  We
     anticipate the cost of this phase to be approximately $74,000.

<page>

We  currently  have  enough  funds on hand to  complete  the first two phases of
exploration  on the Green Energy  Claims.  To complete  phase three will require
additional  funding.  We anticipate that additional  funding will be required in
the form of equity financing from the sale of our common stock.  However, we may
not be able to raise  sufficient  funding  from the sale of our common  stock to
fund the third phase of the exploration program. We do not have any arrangements
in place for any future equity financing.  Our management is prepared to provide
us with short-term loans, although no such arrangement has been made.

If we do not  secure  additional  funding  for  phase  three of our  exploration
expenditures,  we may  consider  seeking  an  arrangement  with a joint  venture
partner that would provide the required funding in exchange for receiving a part
interest  in the Green  Energy  Claims.  We have not  undertaken  any efforts to
locate a joint venture  partner.  There is no guarantee  that we will be able to
locate  a joint  venture  partner  who will  assist  us in  funding  exploration
expenditures  upon acceptable  terms. We may also pursue acquiring  interests in
alternate mineral properties in the future.

Results of Operations for the Six Month Period Ended July 31, 2006

We did not earn any revenues during the six-month period ended July 31, 2006. We
do not anticipate earning revenues unless we enter into commercial production on
the Green Energy Claim, which is doubtful.

We incurred  operating expenses in the amount of $3,629 for the six-month period
ended  July 31,  2006.  These  operating  expenses,  comprised  of  general  and
administration   expenses,   were  primary   incurred  in  connection  with  the
preparation and filing of our Form SB-2 registration statement.

Our net loss for the six-month  period ended July 31, 2006  increased  100% from
the comparative period in fiscal 2005 (2005:  Nil)as the we were inactive during
the first half of fiscal 2005.

At July 31, 2006, we had total assets of $41,496 consisting entirely of cash. At
the same date, we has no liabilities.

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>

Off-Balance Sheet Arrangements
------------------------------

We have no off-balance sheet arrangements.

ITEM 3.  CONTROLS AND PROCEDURES
--------------------------------

Evaluation of Disclosure Controls and Procedures
------------------------------------------------

Under the supervision and with the  participation  of our management,  including
our  principal  executive  officer  and  principal  financial  officer,  we have
conducted an evaluation of the  effectiveness of the design and operation of our
disclosure controls and procedures,  as defined in Rules 13a-15(e) and 15d-15(e)
under the  Securities  and  Exchange  Act of 1934,  as of the end of the  period
covered  by this  report.  Based on this  evaluation,  our  principal  executive
officer and principal financial officer concluded as of the evaluation date that
our  disclosure  controls and  procedures  were effective such that the material
information  required to be included in our Securities  and Exchange  Commission
reports is recorded, processed,  summarized and reported within the time periods
specified in SEC rules and forms  relating to our company,  particularly  during
the period when this report was being prepared.

Additionally,  there were no significant  changes in our internal controls or in
other factors that could  significantly  affect these controls subsequent to the
evaluation date. We have not identified any significant deficiencies or material
weaknesses  in our internal  controls,  and  therefore  there were no corrective
actions taken.

<page>

PART II - OTHER INFORMATION

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
------------------------------------------

The following exhibits are included with this registration statement filing.

Those  marked  with  an  asterisk  and  required  to  be  filed  hereunder,  are
incorporated  by  reference  and can be found in their  entirety in our original
Form SB-2 Registration Statement, filed under SEC File Number 333-134549, at the
SEC website at www.sec.gov:

         Exhibit
         Number            Description
         -------           -----------

         31.1             Sec. 302 Certification of Principal Executive Officer
         31.2             Sec. 302 Certification of Principal Financial Officer
         32.1             Sec. 906 Certification of Principal Executive Officer
         32.2             Sec. 906 Certification of Principal Financial Officer

There were no reports filed on Form 8-K during the quarter ended July 31, 2006.

SIGNATURES

Pursuant  to the  requirements  of  Section  13(a) or  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.


September 13, 2006                          Arbutus Resources, Inc., Registrant

                                    By:    /s/ Karen Law
                                           ------------------------------
                                           Karen Law, President, Chief Executive
                                           Officer, Principal Accounting
                                           Officer, and Chief Financial Officer



In  accordance  with the 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.


September 13, 2006                         Arbutus Resources, Inc., Registrant

                                   By:     /s/ Karen Law
                                           ------------------------------
                                           Karen Law, President, Chief Executive
                                           Officer, Principal Accounting
                                           Officer and Chief Financial Officer