FORWARD LOOKING STATEMENTS

This report contains forward-looking statements that involve risk and uncertainties. We use words such as "anticipate", "believe", "plan", "expect", "future", "intend", and similar expressions to identify such forward-looking statements. Investors should be aware that all forward-looking statements contained within this filing are good faith estimates of management as of the date of this report and actual results may differ materially from historical results or our predictions of future results.

RESULTS OF OPERATIONS

We are still in our exploration stage and have not generated any revenue.

We incurred operating expenses of $4,123 and $6,212 for the 3 months ended May 31, 2009 and 2008, respectively. These expenses consisted of general operating expenses incurred in connection with the day to day operation of our business and the preparation and filing of our registration statement and periodic reports. Our net loss from inception (January 22, 2007) through May 31, 2009 was $24,661.

On November 14, 2007, the Company issued a total of 1,000,000 shares of common stock to its director, Michael Hawitt, for cash in the amount of $0.004 per share for a total of $4,000. On January 30, 2008, the Company issued a total of 2,000,000 shares of common stock at $0.004 per share to Mr. Hawitt in exchange for an invoice paid on behalf of the Company in the amount of $8,000.

On December 16, 2008 the Company completed its "all or nothing" offering. Subscription agreements totaling 3,300,000 shares of common stock at $.02 per share, or $66,000 were received from 34 unrelated investors.

Our auditors expressed their doubt about our ability to continue as a going concern unless we are able to raise additional capital and ultimately to generate profitable operations.

The following table provides selected financial data about our company for the period ended May 31, 2009.

                     Balance Sheet Data:           5/31/09
                     -------------------           -------

                     Cash                          $53,339
                     Total assets                  $53,339
                     Total liabilities             $     0
                     Shareholders' equity          $53,339

LIQUIDITY AND CAPITAL RESOURCES

Our cash in the bank at May 31, 2009 was $53,339 with no outstanding liabilities. Management believes our current cash resources are sufficient to fund operations for the next twelve months.

PLAN OF OPERATION

Our plan of operation for the next twelve months is to complete the three phases of our exploration program. In addition to the remaining $56,860 we anticipate spending for the exploration program as outlined below, we anticipate spending an additional $10,000 on professional fees and general administrative costs. Total expenditures over the next 12 months are therefore expected to be approximately $67,000.

The following work program has been recommended by the consulting geologist who prepared the geology report.

PHASE 1

Detailed prospecting, mapping and mobile metal
ion (MMI) soil sampling and subsequent proprietary
digestion. The program is expected to take 4 weeks
to complete, including turn-around time for analyses
in Australia.                                                $ 3,500 (completed)

PHASE 1 - FOLLOW-UP PROGRAM

Additional mineral cell acquisition on the N and W
boundaries of the Hotspot, #569675 mineral claim.
Grid about sample stations #6 and #8. Sampling the
fill-in grid, 50 MMI samples. Camp, board and
transportation. IONIC Leach sample transportation
and analyses. Report and maps.                               $ 7,360

PHASE 2

Grid controlled magnetometer and VLF-EM surveys
over the areas of interest determined by the
Phase 1 survey. Included in this estimated cost
is transportation, accommodation, board, grid
installation, the geophysical surveys, maps and
report.                                                      $12,000

PHASE 3

Induced polarization survey over grid controlled
anomalous areas of interest outlined by Phase 1&2
fieldwork. Hoe or bulldozer trenching, mapping and
sampling of bedrock anomalies. Includes assays,
detailed maps and reports                                    $37,500
                                                             -------

                           Estimated Total                   $60,360
                                                             =======

Each phase following phase one is contingent upon favorable results from the previous phase.

The first phase of the fieldwork program was conducted by the geologist during the period September 27 - October 3, 2008. The program included reconnaissance geological mapping and prospecting and a line of MMI soil sampling. The results appear to exhibit possible anomalous responses particularly in the gold exploration suite (GES) comprised of the elements cobalt, gold, nickel, palladium and silver. The geologist recommended a follow-up, fill-in MMI soil sampling program about the anomalous samples to test for the validity of the results. We advised the geologist to proceed with the follow-up to phase one and he completed the fieldwork on June 22, 2009. He is now waiting for the results from the assay lab. He expects the results in two to three months and then he will prepare his report.

The above program costs are management's estimates based upon the recommendations of the professional consulting geologist's report and the actual project costs may exceed our estimates.

After the follow-up to phase one of the exploration program, if it proves successful in identifying mineral deposits, we intend to proceed with phase two of our exploration program. The estimated cost of this program is $12,000 and will take approximately 3 weeks to complete and an additional two to three months for the consulting geologist to receive the results from the assay lab and prepare his report. We anticipate commencing the second phase of our exploration program in October 2009, before winter weather in the area might prohibit access to the claim area.

Following phase two of the exploration program, if it proves successful, we intend to proceed with phase three of our exploration program. The estimated cost of this program is $37,500 and will take approximately one month to complete and an additional two to three months for the consulting geologist to receive the results from the assay lab and prepare his report. We anticipate commencing the third phase of our exploration program in spring 2010 as soon as weather permits.

We have a verbal agreement with James McLeod, the consulting geologist who prepared the geology report on our claim, to retain his services for our planned exploration program. We cannot provide investors with any assurance that we will be able to raise sufficient funds to proceed with any work after the exploration program if we find mineralization.

OFF-BALANCE SHEET ARRANGEMENTS

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