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|                      |                     |                                                                                                                                                                | March      31                                                                                                                                |   | December      31                                                                                                                             |   |
|---------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                      |                     |                                                                                                                                                                | 2010                                                                                                                                         |   | 2009                                                                                                                                         |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   | (Audited)                                                                                                                                    |   |
| ASSETS                    |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      | Current      Assets      |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |
|                      |                     | Cash                                                                                                                                                                | $                       - |   | $                       - |   |
|                      |                     | Prepaid      Expense (Note 6)                                                                                                                                       | 11,133                                                                                                                                       |   |                                                                                                                                         |   |
|                      |                     | Total      Current Assets                                                                                                                                           | 11,133                                                                                                                                       |   |                                                                                                                                         |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | Total      Assets                                                                                                                                                   | 11,133                                                                                                                                       |   | -                                                                                                                                            |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
| LIABILITIES               |                     |                                                                                                                                                                |                                                                                                                                         |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      | Current      Liabilities |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |
|                      |                     | Accounts      Payable and Accruals                                                                                                                                  | 29,486                                                                                                                                       |   | 19,067                                                                                                                                       |   |
|                      |                     | Accounts      Payable-related parties                                                                                                                               | 250,559                                                                                                                                      |   | 190,372                                                                                                                                      |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | Total      Current Liabilities                                                                                                                                      | 280,045                                                                                                                                      |   | 209,439                                                                                                                                      |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | Total      Liabilities                                                                                                                                              | 280,045                                                                                                                                      |   | 209,439                                                                                                                                      |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
| STOCKHOLDERS'      EQUITY |                     |                                                                                                                                                                |                                                                                                                                         |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | 100,000,000      Common Shares Authorized61,900,000      and 60,900,000 issued at March 31, 2010 and December 31, 2009 respectively      issued at $0.001 per share | 61,900                                                                                                                                       |   | 60,900                                                                                                                                       |   |
|                      |                     | Additional      Paid-in Capital                                                                                                                                     | 229,600                                                                                                                                      |   | 213,900                                                                                                                                      |   |
|                      |                     | Accumulated      Deficit during the exploration stage                                                                                                               | (560,412)                                                                                                                                    |   | (484,239)                                                                                                                                    |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | Total      Stockholders' Equity                                                                                                                                     | (268,912)                                                                                                                                    |   | (209,439)                                                                                                                                    |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | Total      Liabilities and Stockholders' Equity                                                                                                                     | 11,133                                                                                                                                       |   | -                                                                                                                                            |   |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |
|                      |                     | The      accompanying notes are an integral part of these financial      statements.                                                                                |
|                      |                     |                                                                                                                                                                |
|                      |                     |                                                                                                                                                                |                                                                                                                                         |   |                                                                                                                                         |   |

----

|                                             | DENARII      RESOURCES INC.                                                                                                                                                             |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             | (An      exploration stage company)                                                                                                                                                     |
|                                             | Statements      of Operations                                                                                                                                                           |
|                                             |                                                                                                                                                                                    |   |   |   |
|                                             |                                                                                                                                                                                    | For      the three month period ended | For      the three month period ended | From      inception(March      23, 2006)through      to |
|                                             |                                                                                                                                                                                    | March      31,       2010 | March      31,    2009 | March      31,       2010 |
|                                             |                                                                                                                                                                                    |   |   |   |
|                                             |                                                                                                                                                                                    |   |   |   |
| Revenue                                          | $                 -                                                                                | $                  - | $                      - |
|                                             |                                                                                                                                                                                    |   |   |   |
| Expenses                                         |                                                                                                                                                                                    |   |   |
|                                             |                                                                                                                                                                                    |   |   |   |
|                                             | Recognition      of an Impairment Loss                                                                                                                                                  |   |   |   |
|                                             | (Mineral      Claims)                                                                                                                                                                   | - |  - |                  10,000 |
|                                             | Professional      Fees - Related Parties                                                                                                                                                | - |  - |                253,525 |
|                                             |                            -      Other (Note 6) | 27,957 |               4,441 |                119,976 |
|                                             | Management      and Administration Fees                                                                                                                                                 |   |   |   |
|                                             |         -      Related Party                                                                                                                    | 21,000 |   |                  66,000 |
|                                             | Rent      - Related Party                                                                                                                                                               | 7,500 |  - |                  30,000 |
|                                             | General      Expenses-Related Party                                                                                                                                                     | 17,158 |  - |                  60,951 |
|                                             | General      Expenses-Other                                                                                                                                                             | 2,558 |  - |                  19,960 |
|                                             |    Total      Expenses                                                                                                                                                   | 76,173 |               4,441 |                560,412 |
|                                             |                                                                                                                                                                                    |   |   |   |
| Net      loss before provision for income tax    |             (76,173)                                                                                                        |              (4,441) |               (560,412) |
|                                             |                                                                                                                                                                                    |   |   |   |
| Provision      for Income Tax                    | -                                                                                                                                                                                       |  - |  - |
|                                             |                                                                                                                                                                                    |   |   |   |
| Net      Income (Loss)                           |  $         (76,173)                                                                                                                   |  $          (4,441) |  $           (560,412) |
|                                             |                                                                                                                                                                                    |   |   |   |
| Basic      & Diluted (Loss) per Common Share |    $       (0.00)                                                                                                                     | $         (0.00) |   |
|                                             |                                                                                                                                                                                    |   |   |   |
| Weighted      Average Number of Shares           | 61,466,667                                                                                                                                                                              |       60,440,000 |   |
|                                             |                                                                                                                                                                                    |   |   |   |
|                                             | The      accompanying notes are an integral part of these financial      statements.                                                                                                    |
|                                             |                                                                                                                                                                                    |
|                                             |                                                                                                                                                                                    |   |   |   |

----

|                                   |                                                                                                                                                                                   | DENARII      RESOURCES INC.                                                                                                                                                      |                                                                                                                                                                                                    |
|----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                                                                                                                                                                   | (An      exploration stage company)                                                                                                                                              |                                                                                                                                                                                                    |
|                                   |                                                                                                                                                                                   | Statements      of Cash Flows                                                                                                                                                    |                                                                                                                                                                                                    |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |                                                                                                                                                                                   | For      the         three month      period ended                                                                                  | For      the       three month period      ended                                                                                                                     | From      inception(March      23, 2006) |
|                                   |                                                                                                                                                                                   | March      31,         2010                                                                                                         | March      31,     2009                                                                                                                                                        | through      toMarch      31,          2010 |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| OPERATING      ACTIVITIES              |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |
|                                   | Net      income (loss)                                                                                                                                                                 |  $           (76,173)                                                                                                |  $            (4,441)                                                                                                                  |  $              (560,412) |
|                                   | Recognition      of an Impairment Loss                                                                                                                                                 |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |   (Mineral      Claims)                                                                                                                                                      |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                     10,000 |
|                                   | Accounts      payable                                                                                                                                                                  |                10,419                                                                                 |                3,821                                                                                                         |                     29,486 |
|                                   | Prepaid      Expenses                                                                                                                                                                  |               (11,133)                                                                                     |                                                                                                                                                                                                    |                    (11,133) |
|                                   | Non-Cash      Expenses                                                                                                                                                                 |                16,700                                                                                 |                   620                                                                                         |                   226,700 |
|                                   | Expenses      Paid for by Related Party                                                                                                                                                | 60,187                                                                                                                                                                           |                                                                                                                                                                                                    | 231,204 |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   | Net      cash used in operating activities                                                                                                                                             |                        -                                      |  -                                                                                                                                                                                                 |                    (74,155) |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| INVESTING      ACTIVITIES              |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |
|                                   | Purchase      of mineral claim                                                                                                                                                         |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                    (10,000) |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   | Net      cash used in investing activities                                                                                                                                             |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                    (10,000) |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| FINANCING      ACTIVITIES              |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |
|                                   | Loan      from related party                                                                                                                                                           |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                     19,355 |
|                                   | Common      shares issued for cash @      $0.001 per share                                                                                                                        |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                     48,300 |
|                                   | Additional      paid-in capital                                                                                                                                                        |  -                                                                                                                                                                          |                                                                                                                                                                                                    |                     16,500 |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   | Net      cash provided by financing activities                                                                                                                                         |  -                                                                                                                                                                          |  -                                                                                                                                                                                                 |                     84,155 |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| NET      INCREASE (DECREASE)           |                -                                                                                            |          -                                                                                                                          | -                                                                                                                                                                                                       |
| IN      CASH AND CASH EQUIVALENTS      |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| CASH      AND CASH EQUIVALENTS         |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |
|   -      BEGINNING OF PERIOD | -                                                                                                                                                                                      | -                                                                                                                                                                                |                                  - |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
| CASH      AND CASH EQUIVALENTS         |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |
|   -      END OF PERIOD       | $                              - |  $                            - |  $                              -            |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   | SUPPLEMENTAL      DISCLOSURES OF                                                                                                                                                       |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |     NON-CASH      ACTIVITIES:                                                                                                                                      |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   | Common      stock issued for services                                                                                                                                                  | 16,700                                                                                                                                                                           |             -                                                                                                                               | $                  226,700 |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |
|                                   |               The      accompanying notes are an integral part of these financial      statements.               |
|                                   |                                                                                                                                                                                   |
|                                   |                                                                                                                                                                                   |                                                                                                                                                                             |                                                                                                                                                                                                    |   |

----

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| 1.   | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of the      company; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with accounting      principles generally accepted in the United States of America and that      receipts and expenditures of the company are being made only in accordance      with authorizations of management and directors of the company;      and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the company’s assets that      could have a material effect on the financial  statements. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.   | Lack      of a functioning audit committee due to a lack of a majority of      independent members and a lack of a majority of outside directors on our      board of directors, resulting in ineffective oversight in the      establishment and monitoring of required internal controls and      procedures; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Inadequate      segregation of duties consistent with control objectives;    and |
|----------------|----------------------------------------------------------------------------------|

| 3.   | Ineffective      controls over period end financial disclosure and reporting      processes. |
|----------------|----------------------------------------------------------------------------------------------|

| 1.   | We      plan to form an audit committee, which we expect to be partially, if not      fully, implemented by December 31,2010. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 2.   | We      are seeking to add additional personnel, who may be appointed to our board      of directors as outside members and/or serve in a capacity to allow us to      better segregate jobresponsibilities. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | We      have developed internal control procedures over financial disclosure and      reporting.  However, these procedures are, and will continue to      be, ineffective without additionalpersonnel. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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