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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED February 28, 2011 |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ |
|---|-------------------------------------------------------------------------------------------------------------------------------|

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| Oklahoma                                                       | 75-2954680                                |
|----------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

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| Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  o(Do not check if a smaller reporting company)  | Smaller reporting company  x |
|---------------------------------|---------------------------|----------------------------------------------------------------------------------|-----------------------------------|

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| Item 1.  Financial Statements                                                                  | Page                                                                                                           |
|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                                                                     |                                                                                                           |   |
|                                                                                                     | Consolidated Balance Sheets as of February 28, 2011 (Unaudited) and May 31, 2010                               | 1 |
|                                                                                                     |                                                                                                           |   |
|                                                                                                     | Consolidated Statements of Operations (Unaudited) for the Nine Month Periods Ended February 28, 2011 and 2010  | 2 |
|                                                                                                     |                                                                                                           |   |
|                                                                                                     | Consolidated Statements of Operations (Unaudited) for the Three Month Periods Ended February 28, 2011 and 2010 | 3 |
|                                                                                                     |                                                                                                           |   |
|                                                                                                     | Consolidated Statements of Cash Flows (Unaudited) for the Nine Month Periods Ended February 28, 2011 and 2010  | 4 |
|                                                                                                     |                                                                                                           |   |
|                                                                                                     | Notes to Consolidated Financial Statements (Unaudited)                                                         | 5 |
|                                                                                                     |                                                                                                           |   |
|                                                                                                     |                                                                                                           |   |
| Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations | 7                                                                                                              |
|                                                                                                     |                                                                                                           |
|                                                                                                     |                                                                                                           |   |
| Item 4.  Controls and Procedures                                                               | 12                                                                                                             |
|                                                                                                     |                                                                                                           |
|                                                                                                     |                                                                                                           |
|                                                                                                     |                                                                                                           |   |
| PART II.  OTHER INFORMATION                                                                    |                                                                                                           |
|                                                                                                     |                                                                                                           |   |
| Item 6.  Exhibits                                                                              | 13                                                                                                             |
|                                                                                                     |                                                                                                           |   |
| SIGNATURES                                                                                               | 14                                                                                                             |

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|                                                                                |   | February 28, |        |   | May 31, |   |
|-------------------------------------------------------------------------------------|--------|--------------|-------------|--------|---------|--------|
|                                                                                |   | 2011         |        |   | 2010    |   |
| Assets                                                                              |   | (Unaudited)  |        |   |    |   |
| Current Assets:                                                                     |   |         |        |   |    |   |
|      Cash                                                       |   | $            | 151,043     |   |    | $      | 163,749 |   |
|      Accounts receivable                                        |   |         | 1,362,620   |   |    |   | 1,605,160 |   |
|      Inventory                                                  |   |         | 822,408     |   |    |   | 649,943 |   |
|      Prepaid expenses and other                                 |   |         | 69,370      |   |    |   | 68,673 |   |
| Total Current Assets                                                                |   |         | 2,405,441   |   |    |   | 2,487,525 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Property, Plant and Equipment, net of accumulated depreciation                      |   |         |        |   |    |   |   |   |
| of $5,158,477 and $4,885,135 at February 28, 2011 and                               |   |         |        |   |    |   |   |   |
| May 31, 2010, respectively                                                          |   |         | 4,047,714   |   |    |   | 5,779,245 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Assets of Greystone Real Estate, LLC, net of accumulated                            |   |         |        |   |    |   |   |   |
| depreciation of $817,303 and $298,386 at February 28, 2011                          |   |         |        |   |    |   |   |   |
| and May 31, 2010                                                                    |   |         | 3,878,533   |   |    |   | 1,765,960 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Other Assets, net                                                                   |   |         | 85,280      |   |    |   | 95,176 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Total Assets                                                                        |   | $            | 10,416,968  |   |    | $      | 10,127,906 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Liabilities and Deficit                                                             |   |         |        |   |    |   |   |   |
| Current Liabilities:                                                                |   |         |        |   |    |   |   |   |
| Current portion of long-term debt                                                   |   | $            | 3,557,260   |   |    | $      | 8,950,837 |   |
| Notes and advances payable - related parties                                        |   |         | 1,248,080   |   |    |   | 851,581 |   |
| Current portion of Greystone Real Estate, LLC long-term debt                        |   |         | 90,206      |   |    |   | 55,067 |   |
| Accounts payable and accrued expenses                                               |   |         | 2,190,478   |   |    |   | 1,301,344 |   |
| Accounts payable and accrued expenses - related parties                             |   |         | 1,198,048   |   |    |   | 1,660,195 |   |
| Preferred dividends payable                                                         |   |         | 2,525,204   |   |    |   | 2,282,122 |   |
| Total Current Liabilities                                                           |   |         | 10,809,276  |   |    |   | 15,101,146 |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Long-Term Debt, net of current portion                                              |   |         | 5,336,034   |   |    |   | 1,549,486 |   |
| Long-Term Debt of Greystone Real Estate, LLC, net of                                |   |         | 3,072,194   |   |    |   | 1,158,810 |   |
| current portion                                                                     |   |         |        |   |    |   |   |   |
|                                                                                |   |         |        |   |    |   |   |   |
| Deficit:                                                                            |   |         |        |   |    |   |   |   |
| Preferred stock, $0.0001 par value, 20,750,000 shares authorized,                   |   |         |        |   |    |   |   |   |
|   50,000 shares  issued and outstanding, liquidation preference |   |         |        |   |    |   |   |   |
|   of $5,000,000                                                           |   |         | 5           |   |    |   | 5 |   |
| Common stock, $0.0001 par value, 5,000,000,000 shares                               |   |         |        |   |    |   |   |   |
|   authorized, 26,111,201 shares issued and outstanding                    |   |         | 2,611       |   |    |   | 2,611 |   |
| Additional paid-in capital                                                          |   |         | 53,089,293  |   |    |   | 53,017,317 |   |
| Accumulated deficit                                                                 |   |         | (62,797,255 | )      |    |   | (61,527,891 | ) |
| Total Greystone Stockholders' Deficit                                               |   |         | (9,705,346  | )      |    |   | (8,507,958 | ) |
| Non-controlling interest                                                            |   |         | 904,810     |   |    |   | 826,422 |   |
| Total Deficit                                                                       |   |         | (8,800,536  | )      |    |   | (7,681,536 | ) |
|                                                                                |   |         |        |   |    |   |   |   |
| Total Liabilities and Deficit                                                       |   | $            | 10,416,968  |   |    | $      | 10,127,906 |   |

----

|                                                              |   | Nine Months Ended February 28, |       |
|-------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                              |   | 2011                           |       |   | 2010 |   |
|                                                              |   |                           |       |   |   |   |
| Sales                                                             |   | $                              | 14,253,173 |   |   | $ | 11,170,768 |   |
|                                                              |   |                           |       |   |   |   |   |   |
| Cost of Sales                                                     |   |                           | 13,120,654 |   |   |   | 9,136,907 |   |
|                                                              |   |                           |       |   |   |   |   |   |
| Gross Profit                                                      |   |                           | 1,132,519  |   |   |   | 2,033,861 |   |
|                                                              |   |                           |       |   |   |   |   |   |
| General, Selling and Administration Expenses                      |   |                           | 1,441,590  |   |   |   | 1,446,358 |   |
|                                                              |   |                           |       |   |   |   |   |   |
| Operating Income (Loss)                                           |   |                           | (309,071   | ) |   |   | 587,503 |   |
|                                                              |   |                           |       |   |   |   |   |   |
| Other Income (Expense):                                           |   |                           |       |   |   |   |   |   |
|      Other Income                             |   |                           | 2,600      |   |   |   | 32,000 |   |
|      Interest Expense     |   |                           | (641,423   | ) |   |   | (621,700 | ) |
| Total Other Expense, net                                          |   |                           | (638,823   | ) |   |   | (589,700 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Net Loss                                                          |   |                           | (947,894   | ) |   |   | (2,197 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Less: Income Attributable to Non-controlling Interest             |   |                           | (78,388    | ) |   |   | (61,409 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Preferred Dividends                                               |   |                           | (243,082   | ) |   |   | (243,082 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Net Loss Available to Common Stockholders                         |   | $                              | (1,269,364 | ) |   | $ | (306,688 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Loss Available to Common Stockholders Per Share of                |   |                           |       |   |   |   |   |   |
|      Common Stock - Basic and Diluted         |   | $                              | (0.05      | ) |   | $ | (0.01 | ) |
|                                                              |   |                           |       |   |   |   |   |   |
| Weighted Average Shares of Common Stock Outstanding -             |   |                           |       |   |   |   |   |   |
|      Basic and Diluted                        |   |                           | 26,111,000 |   |   |   | 26,111,000 |   |

----

|                                                      |   | Three Months Ended February 28, |       |
|-----------------------------------------------------------|--------|---------------------------------|------------|
|                                                      |   | 2011                            |       |   | 2010 |   |
|                                                      |   |                            |       |   |   |   |
| Sales                                                     |   | $                               | 4,206,092  |   |   | $ | 3,544,522 |   |
|                                                      |   |                            |       |   |   |   |   |   |
| Cost of Sales                                             |   |                            | 3,600,831  |   |   |   | 2,958,816 |   |
|                                                      |   |                            |       |   |   |   |   |   |
| Gross Profit                                              |   |                            | 605,261    |   |   |   | 585,706 |   |
|                                                      |   |                            |       |   |   |   |   |   |
| General, Selling and Administration Expenses              |   |                            | 452,809    |   |   |   | 460,620 |   |
|                                                      |   |                            |       |   |   |   |   |   |
| Operating Income                                          |   |                            | 152,452    |   |   |   | 125,086 |   |
|                                                      |   |                            |       |   |   |   |   |   |
| Other Income (Expense):                                   |   |                            |       |   |   |   |   |   |
|      Other                            |   |                            | (5,050     | ) |   |   | 5,333 |   |
|      Interest Expense                 |   |                            | (248,960   | ) |   |   | (206,717 | ) |
| Total Other Expense, net                                  |   |                            | (254,010   | ) |   |   | (201,384 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Net Loss                                                  |   |                            | (101,558   | ) |   |   | (76,298 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Less: Income Attributable to Non-controlling Interest     |   |                            | (36,994    | ) |   |   | (20,671 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Preferred Dividends                                       |   |                            | (80,137    | ) |   |   | (80,137 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Net Loss Available to Common Stockholders                 |   | $                               | (218,689   | ) |   | $ | (177,106 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Loss Available to Common Stockholders Per Share of        |   |                            |       |   |   |   |   |   |
|      Common Stock - Basic and Diluted |   | $                               | (0.01      | ) |   | $ | (0.01 | ) |
|                                                      |   |                            |       |   |   |   |   |   |
| Weighted Average Shares of Common Stock Outstanding -     |   |                            |       |   |   |   |   |   |
|      Basic and Diluted                |   |                            | 26,111,000 |   |   |   | 26,111,000 |   |

----

|                                                      |   | Nine Months Ended February 28, |       |
|-----------------------------------------------------------|--------|--------------------------------|------------|
|                                                      |   | 2011                           |       |   | 2010 |   |
|                                                      |   |                           |       |   |   |   |
| Cash Flows from Operating Activities:                     |   |                           |       |   |   |   |
| Net loss                                                  |   | $                              | (947,894   | ) |   | $ | (2,197 | ) |
| Adjustments to reconcile net loss to net cash provided    |   |                           |       |   |   |   |   |   |
|   by operating activities:                      |   |                           |       |   |   |   |   |   |
| Depreciation and amortization                             |   |                           | 801,835    |   |   |   | 758,847 |   |
| Stock-based compensation                                  |   |                           | 71,976     |   |   |   | 71,976 |   |
| Recognition of deferred income                            |   |                           | —    |   |   |   | (32,000 | ) |
| Changes in accounts receivable                            |   |                           | 242,540    |   |   |   | (44,426 | ) |
| Changes in inventory                                      |   |                           | (172,465   | ) |   |   | 200,874 |   |
| Changes in prepaid expenses and other                     |   |                           | (697       | ) |   |   | (20,835 | ) |
| Change in other assets                                    |   |                           | 320        |   |   |   | (3,780 | ) |
| Changes in accounts payable and accrued expenses          |   |                           | 426,987    |   |   |   | 561,538 |   |
| Net cash provided by operating activities                 |   |                           | 422,602    |   |   |   | 1,489,997 |   |
|                                                      |   |                           |       |   |   |   |   |   |
| Cash Flows from Investing Activities:                     |   |                           |       |   |   |   |   |   |
| Purchases of property and equipment                       |   |                           | (1,173,301 | ) |   |   | (236,984 | ) |
|                                                      |   |                           |       |   |   |   |   |   |
| Cash Flows from Financing Activities:                     |   |                           |       |   |   |   |   |   |
| Proceeds from notes payable to related party              |   |                           | 500,000    |   |   |   | — |   |
| Payments on notes and advances payable to related parties |   |                           | (103,501   | ) |   |   | (136,938 | ) |
| Payments on long-term debt                                |   |                           | (1,607,029 | ) |   |   | (874,070 | ) |
| Proceeds from loan to Greystone Real Estate, LLC          |   |                           | 2,000,000  |   |   |   | — |   |
| Payments on Greystone Real Estate, LLC, long-term debt    |   |                           | (51,477    | ) |   |   | (38,500 | ) |
| Non-controlling interest distribution                     |   |                           | —    |   |   |   | (43,071 | ) |
| Net cash provided by (used in) financing activities       |   |                           | 737,993    |   |   |   | (1,092,579 | ) |
|                                                      |   |                           |       |   |   |   |   |   |
| Net Increase (Decrease) in Cash                           |   |                           | (12,706    | ) |   |   | 160,434 |   |
| Cash, beginning of period                                 |   |                           | 163,749    |   |   |   | 274,765 |   |
|                                                      |   |                           |       |   |   |   |   |   |
| Cash, end of period                                       |   | $                              | 151,043    |   |   | $ | 435,199 |   |
|                                                      |   |                           |       |   |   |   |   |   |
| Non-cash Investing and Financing Activities:              |   |                           |       |   |   |   |   |   |
| Preferred Dividend Accrual                                |   | $                              | 243,082    |   |   | $ | 243,082 |   |
| Supplemental Information:                                 |   |                           |       |   |   |   |   |   |
| Interest Paid                                             |   | $                              | 336,614    |   |   | $ | 341,518 |   |

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| Options to purchase common stock |   |   | 1,970,000 |   |
|----------------------------------|--------|--------|-----------|--------|
| Convertible preferred stock      |   |   | 3,333,000 |   |
|                             |   |   | 5,303,000 |   |

|            |   | February 28, |    |   | May 31, |   |
|-----------------|--------|--------------|---------|--------|---------|--------|
|            |   | 2011         |    |   | 2010    |   |
|            |   | (Unaudited)  |    |   |    |   |
|            |   |         |    |   |    |   |
| Raw materials   |   | $            | 128,877 |   |    | $      | 331,539 |   |
| Finished goods  |   |         | 693,531 |   |    |   | 318,404 |   |
|            |   |         |    |   |    |   |   |   |
| Total inventory |   | $            | 822,408 |   |    | $      | 649,943 |   |

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| Cash provided by operating activities |   | $      | 422,602    |   |
|---------------------------------------|--------|--------|------------|--------|
|                                  |   |   |       |   |
| Cash used in investing activities     |   |   | (1,173,301 | )      |
|                                  |   |   |       |   |
| Cash provided by financing activities |   |   | 737,993    |   |

|           |  Total | Less than1 year |  1-3 years |  4-5 years  | Over5 years                 |
|----------------|-------------|-----------------|-----------------|------------------|-----------------------------|
| Long-term debt | $8,893,294  | $3,557,260      | $1,698,213      | $3,637,821  | $    — |

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|   | 10.1 | Real Property Sale and Lease Agreement between Greystone Manufacturing, L.L.C., and Greystone Real Estate, L.L.C., dated January 18, 2011. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11.1 | Computation of Loss per Share is in Note 2 in the Notes to the financial statements. |
|--------|------|--------------------------------------------------------------------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|                 | GREYSTONE LOGISTICS, INC. |                                  |
|----------------------|---------------------------|---------------------------------------|
|                 |                      |                                  |
|                 |                      |                                  |
|                 |                      |                                  |   |
| Date: April 19, 2011 | By:                       | /s/ Warren F. Kruger             |   |
|                 |                      | Warren F. Kruger                      |   |
|                 |                      | President and Chief Executive Officer |   |
|                 |                      |                                  |   |

|                 |   |                       |
|----------------------|--------|----------------------------|
|                 |   |                       |
|                 |   |                       |
|                 |   |                       |   |
| Date: April 19, 2011 | By:    | /s/ William W. Rahhal |   |
|                 |   | William W. Rahhal          |   |
|                 |   | Chief Financial Officer    |   |
|                 |   |                       |   |

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