Stallion 10QSB 2007 Q1 Quarterly report (small business)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended AUGUST 31, 2006

[ ]

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _____ to _______

Commission file number: 333-118360

THE STALLION GROUP

(Exact name of small business issuer in its charter)


Nevada		98-0429182
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

5728 – 125A Street Surrey, British Columbia		V3X 3G8
(Address of principal executive offices)		(Zip Code)

Issuer’s telephone number: (604) 597-0028

Securities Registered Under Section 12(b) of the Exchange Act: None

Securities Registered Under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value

(Title of class)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [R ] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Exchange Act) Yes [ ] No [R ]

Indicate by check mark whether the registrant is a shell corporation (as defined in Rule 12b-2 of the Exchange Act) Yes [ ] No [R ]

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 9,306,500 shares of Common Stock as of October 4, 2006.

Transitional Small Business Format. Yes [ ] No [X]

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

THE STALLION GROUP

(An Exploration Stage Company)

Condensed Balance Sheet

(Unaudited)

August 31, 2006

August, 31

May, 31

2006

Unaudited

audited

ASSETS

Current assets:

Cash

149,522

22,100

Prepaid expense

&nb sp; 3,167

444

Total current assets

& nbsp;152,689

22,544

Oil and gas properties (Note 2)

&nb sp; 300,000

TOTAL ASSETS

452,689

22,544

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

& nbsp; 2,343

Accrued liabilities

& nbsp; 5,300

3,800

Shares subscription received

&nb sp; 447,520

Total current liabilities

455,163

3,800

Shareholders' equity (Note 3)

Common stock, $0.001 par value; 200,000,000 shares authorized,

9,306,500 shares issued and outstanding

9,307

Additional paid-in capital

& nbsp; 92,843

92,843

Cumulative translation adjustment

741

1,110

Accumulated deficit

&nb sp; (105,365 )

(84,516 )

Total shareholders' equity

&nb sp; (2,474 )

18,744

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

452,689

22,544

See accompanying notes to condensed financial statements


THE STALLION GROUP
(An Exploration Stage Company)
Condensed Statements of Operations
(Unaudited)



								January 9, 2004
								(Inception)
				Three Months Ended				Through
				August 31,				August 31,
				2006		2005		2006
Expenses

	Contribute rent		$	-	$	300	$	2,900
	Contribute administrative support			-		50		450
	Mineral exploration and filing fees (Note 4)			673		-		28,426
	Professional fees (Note 3)			10,081		3,100		29,356
	Office and miscellaneous (Note 3)			6,306		3,529		21,867
	Organization costs			-		-		1,160
	Travel			1,576		521		11,520
	Business promotion (Note 3)			1,823		1,472		7,109
	Other			390		249		2,577

		Total expenses		20,849		9,221		105,365

		Loss before income taxes		(20,849 )		(9,221 )		(105,365 )

Income tax provision (Note 5)				-		-		-

		Net loss for the period	$	(20,849 )	$	(9,221 )	$	(105,365 )

Basic and diluted loss per share			$	(0.00)	$	(0.00)	$	(0.01 )

Basic and diluted weighted average
common shares outstanding				9,306,500		9,306,500		8,375,410



See accompanying notes to condensed financial statements


THE STALLION GROUP
(An Exploration Stage Company)
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)



										Cumulative
										Translation
										Adjustment
		Common Stock				Additional				Other		Total
				Par		Paid-In		Accumulated		Comprehensive		Shareholders'
		Shares		Value		Capital		Deficit		Income (Loss)		Equity



Balance, May 31, 2006		9,306,500	$	9,307	$	92,843	$	(84,516 )	$	1,110	$	18,744

Comprehensive loss:
	Net loss for period ended August 31, 2006	-		-		-		(20,849 )		-		(20,849 )
	Cumulative translation adjustment	-		-		-		-		(369 )		(369 )
Comprehensive loss:		-		-		-		-		-		(21,218 )

Balance, August 31, 2006		9,306,500	$	9,307	$	92,843	$	(105,365 )	$	741	$	(2,474 )




See accompanying notes to condensed financial statements


THE STALLION GROUP
(An Exploration Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

									January 9, 2004
									(Inception)
					Three Months Ended				Through
					August 31,				August 31,
					2006		2005		2006
Cash flows provided by (used) by operating activities:

	Net loss for the period			$	(20,849 )	$	(9,221 )	$	(105,365 )

	Adjustments to reconcile net loss to net cash used in operating activities:
		Office space and administrative support contributed by an officer			-		350		3,350
		Changes in operating assets and liabilities:
			Prepaid expenses		(2,723 )		(7,839 )		(3,167 )
			Accounts payable		2,343		-		2,343
			Accrued liabilities		1,500		1,000		5,300

			Net cash used by operating activities		(19,729 )		(15,710 )		(97,539 )

Cash flows used by investing activities:

	Oil and gas properties acquisition (Note 2)				(300,000 )		-		(300,000 )

			Net cash used by investing activities		(300,000 )		-		(300,000 )

Cash flows provided by financing activities:

	Proceeds from sales of common stock				-		-		106,300
	Payment of offering costs				-		-		(7,500 )
	Shares subscription received				447,520		-		447,520

			Net cash provided by financing activities		447,520		-		546,320

Effect of exchange rate changes on cash					(369 )		3,535		741

Increase (Decrease) in cash and cash equivalents					127,422		(12,175 )		149,522

Cash and cash equivalents, beginning of period					22,100		77,779		-

Cash and cash equivalents, end of period				$	149,522	$	65,604	$	149,522


Supplemental disclosure of cash flow information:

	Cash paid during the period for:
		Income taxes (Note 5)		$	-	$	-	$	-
		Interest		$	-	$	-	$	-


See accompanying notes to condensed financial statements

THE STALLION GROUP

(An Exploration Stage Company)

Notes to Condensed Financial Statements

(Unaudited)

NOTE 1: BASIS OF PRESENTATION

The condensed financial statements presented herein have been prepared by the Company in accordance with the accounting policies in its audited financial statements for the period ended May 31, 2006 as filed in its Form 10-KSB and should be read in conjunction with the notes thereto. The Company is in the exploration stage in accordance with Industry Guide 7. On May 31, 2004, the Company entered into an option agreement to acquire 100 percent of the right, title and interest in a mineral claim located in Qmineca Mining District, British Columbia, Canada. (see Note 4).

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim period presented have been made. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the year.

Interim financial data presented herein are unaudited.

The Company’s functional currency is the Canadian dollar; however, the accompanying financial statements and footnotes refer to United States (“U.S.”) dollars unless Canadian dollars are specifically designated with “CDN”.

NOTE 2: OIL AND GAS PROPERTIES

On August 2, 2006, the Company agreed to participate in the two proposed drilling programs to be conducted by Griffin & Griffin Exploration, L.L.C., thirty percent of which shall be funded by the Company. On August 21, 2006, the Company paid an amount of $300,000 to Griffin & Griffin Exploration, L.L.C. The Memorandum with Griffin & Griffin Exploration L.L.C. provides for the following payments;

On or before October 1, 2006 the Company shall pay $600,000 for further development of prospects on lands of interest in Mississippi and Louisiana.

On or before November 1, 2006 the Company shall pay $300,000 for further development of prospects on lands of interest in Mississippi and Louisiana.

NOTE 3: RELATED PARTY TRANSACTIONS

During the period ended August 31, 2006, the Company paid Sylco Investment Ltd. (“Sylco”) $3,853, for business promotion and office expenses. Sylco is an affiliate of the Company that is 100% owned by the Company’s president.

THE STALLION GROUP

(An Exploration Stage Company)

Notes to Condensed Financial Statements

(Unaudited)

NOTE 3: RELATED PARTY TRANSACTIONS (continued)

During the period ended August 31, 2006, the Company paid Hurricane Corporate Services Ltd. (“Hurricane”) $11,375, for accounting and administrative services. Hurricane is owned by the directors of the Company.

In February 2004, the Company sold 5,000,000 shares of its restricted common stock to its president for $5,000 ($0.001/share).

NOTE 4: OPTION ON UNPROVEN MINERAL INTERESTS

Mayan Minerals Ltd. Option Agreement

On May 31, 2004, the Company entered into an option agreement to acquire 100 percent of the right, title and interest in a mineral claim located in the Omineca Mining District, British Columbia, Canada. Under the terms of the Option Agreement, the Company is required to:

Make option exploration expenditures as follows:


Exploration Expenditures			Due Date
CDN	$	35,000.00	August 31, 2005
CDN		85,000.00	August 31, 2006
$		120,000.00

Make annual payments of CDN$50,000, commencing January 1, 2007, as long as the Company held any interest in the claim.

In addition to the above terms, the optionor is to retain a three percent net smelter royalty.

A $7,964 (CDN$10,000) deposit was made on Phase I of the work program on the claims in June 2005 and a final payment of $19,789 (CDN$23,280) was made on Phase I in October 2005. The Company’s initial exploration expenditure requirements were deemed to have been met in accordance with the option agreement following the two payments.

During May 2006, the Company received the engineering report on the first phase of the property’s exploration, which included the following recommendations:

THE STALLION GROUP

(An Exploration Stage Company)

Notes to Condensed Financial Statements

(Unaudited)

NOTE 4: OPTION ON UNPROVEN MINERAL INTERESTS (continued)

If the Company determines that it should continue with the projected three-phase exploration program, the second phase should be comprised of three parts:

Phase 2A

Stake and additional 40 to 50 claims to the east, west, and north of the existing claim (estimated cost of CDN$18,000).

Phase 2B

Repeat the Phase 1 general exploration program on the newly acquired claims (estimated cost of CDN$100,000).

Phase 2C

Conduct diamond drilling over selected targets determined from Phase 2B (estimate cost of CDN$150,000).

Phase 3 of exploration would continue the diamond drill program if results from Phase 2 are positive (estimated cost of CDN$220,000).

NOTE 5: INCOME TAXES

The Company records its income taxes in accordance with SFAS No. 109, “Accounting for Income Taxes”. The Company incurred net operating losses during the periods shown on the condensed financial statements resulting in a deferred tax asset, which was fully allowed for; therefore, the net benefit and expense result in $-0- income taxes.

Item 2.

Management’s Discussion and Analysis or Plan of Operation.

Cautionary Statement Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. Some discussions in this report may contain forward-looking statements that involve risk and uncertainty. A number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us in this report. Forward-looking statements are often identified by words like: “believe”, “expect”, “estimate”, “anticipate”, “intend”, “project” and similar expressions or words which, by their nature, refer to future events.

In some cases, you can also identify forward-looking statements by terminology such as “may”, “will”, “should”, “plans”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to "common shares" refer to the common shares in our capital stock.

As used in this annual report, the terms "we", "us", "our", and "Stallion" mean The Stallion Group, unless otherwise indicated.

Stallion is an exploration stage company. There is no assurance that commercially viable mineral and/or oil and natural gas deposits exist on the claim that we have under option. Further exploration will be required before a final evaluation as to the economic and legal feasibility of the claim is determined.

Glossary of Exploration Terms

The following terms, when used in this report, have the respective meanings specified below:


Development	Preparation of a mineral deposit for commercial production, including installation of plant and machinery and the construction of all related facilities. The development of a mineral depositcan only be made after a commercially viable mineral deposit, a reserve, has been appropriately evaluated as economically and legally feasible.
Diamond drill	A type of rotary drill in which the cutting is done by abrasion rather than percussion. The cutting bit is set with diamonds and is attached to the end of long hollow rods through which water is pumped to the cutting face. The drill cuts a core of rock, which is recovered in long cylindrical sections an inch or more in diameter.
Exploration	The prospecting, trenching, mapping, sampling, geochemistry, geophysics, diamond drilling and other work involved in searching for mineral bodies.
Geochemistry	Broadly defined as all parts of geology that involve chemical changes or narrowly defined as the distribution of the elements in the earth’s crust; the distribution and migration of the individual elements in the various parts of the earth.

Geology	The science that deals with the history of the earth and its life especially as recorded in the rocks; a chronological account of the events in the earth’s history.
Geophysics	The science of the earth with respect to its structure, components and development.
Mineral	A naturally occurring inorganic element or compound having an orderly internal structure and characteristic chemical composition, crystal form and physical properties.
Mineral Reserve	A mineral reserve is that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.
Mineralization	Rock containing an undetermined amount of minerals or metals.
Oxide	Mineralized rock in which some of the original minerals, usually sulphide, have been oxidized. Oxidation tends to make the mineral more porous and permits a more complete permeation of cyanide solutions so that minute particles of gold in the interior of the minerals will be more readily dissolved.

Foreign Currency and Exchange Rates

Dollar costs of Stallion’s property acquisition and planned exploration costs are in Canadian Dollars. For purposes of consistency and to express United States Dollars throughout this report, Canadian Dollars have been converted into United States currency at the rate of US $1.00 being approximately equal to CA $1.15 or CA $1.00 being approximately equal to US $0.86 which is the approximate average exchange rate during recent months and which is consistent with the incorporated financial statements.

THE FOLLOWING ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF THE CORPORATION FOR THE PERIOD ENDING FEBRUARY 28, 2006 SHOULD BE READ IN CONJUNCTION WITH THE CORPORATION’S CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THIS FORM 10-QSB.

Overview

We were incorporated in the State of Nevada on January 09, 2004 as The Stallion Group and established a fiscal year end of May 31. Our statutory registered agent's office is located at 251 Jeanell Drive, No. 3, Carson City, Nevada 89703 and our business office is located at 604 – 700 West Pender Street, Vancouver, British Columbia V6C 1G8. Our telephone number is (604) 662-7901. There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since the date of incorporation. We are a start-up, exploration stage company engaged in the search for minerals including natural gas, oil and gold. There is no assurance that a commercially viable mineral deposit, a reserve, exists in our claim or can be shown to exist until sufficient and appropriate exploration is done and a comprehensive evaluation of such work concludes economic and legal feasib ility.

On May 31, 2004, we optioned a mineral property containing four mining claims in British Columbia, Canada by entering into an Option To Purchase And Royalty Agreement with Mayan Minerals Ltd. on behalf of Angel Jade Mines Ltd., the beneficial owner of the claims, each arms-length British Columbia corporations, to acquire the claims by making certain expenditures and carrying out certain exploration work on the claims. We can acquire a 100% interest in the claim subject to the expenditure of a total of $116,000 through a three-phase exploration program. In addition, the vendors retain a 3% net smelter royalty. After January 1, 2007 payments of $40,000 per year are to be made as advance royalty to Angel Jade so long as Stallion retains an interest in the claim.

Under the terms of the agreement, Mayan granted to Stallion the sole and exclusive right to acquire 100 percent of the right, title and interest of Angel Jade in the Bell Claims, subject to Mayan receiving annual payments and a royalty, in accordance with the terms of the agreement, as follows:

Stallion must incur exploration expenditures on the claims of a minimum of $35,000, by February 28, 2006 (completed and awaiting engineering report);

Stallion must incur exploration expenditures on the claims of a further $85,000, for an aggregate minimum exploration expense of $120,000, by November 30, 2006; and

Upon exercise of the option, Stallion is required to pay to Mayan, commencing January 1, 2007, the sum of $40,000 per annum, as prepayment of the royalty.

The claims are located approximately 25 miles south west of Telkwa, B.C., at 54º 37' north latitude and 127º 40' west longitude at an approximate median elevation of six thousand feet. The property consists of four mineral claims which in total measure 1,000 metres (3,240 feet) by 1,000 metres (3,240 feet) and covers an area of approximately 160 acres or 64 hectares.

To date we have completed the on-site work of phase I of the planned two-phase exploration program (we are anticipating receipt of the report in the next few weeks) and have spent approximately $27,753; we have not spent any money on research and development activities. Information about the claims was presented to Mr. Williams for review without any contractual obligations.

The claims are unencumbered and there are no competitive conditions which affect the claims. Further, there is no insurance covering the claims. We believe that no insurance is necessary since the claims are unimproved and contain no buildings or improvements.

The names, tenure numbers, date of recording and expiration date of the claims are as follows:


Claim Name	Tenure Number	Recording Date	Expiry Date
Bell 1	362113	April 24, 1998	April 24, 2007
Bell 2	362114	April 24, 1998	April 24, 2007
Bell 3	362115	April 24, 1998	April 24, 2007
Bell 4	362116	April 24, 1998	April 24, 2007

To keep the claims in good standing, such that they do not expire on the date indicated in the preceding, we must commence phase II of the exploration program on or before April 24, 2007 or pay $1,000 to prevent the claims from reverting to the Crown.

Mr. R.T. Heard, P. Eng., authored the “Geological Report On The Bell 1-4 Mineral Claims”, in which he recommended a two-phase exploration program to properly evaluate the potential of the claims. Mr. Heard is a registered Professional Engineer in good standing in the Association of Professional Engineers and Geoscientists of British Columbia. He is a graduate of Haileybury School of Mines, (1958) and of the Montana College of Mineral Science and Technology, Butte, Montana. He holds a B.Sc. in Geological Engineering, (1971) and has practiced his profession as an exploration geologist for more than 40 years and as a Professional Engineer for 30 years.

There are no parks or developments that would interfere with exploration for or exploitation of any mineral deposits that might be located on the claim. There are no disputes as to title or liens registered on the claim.

Angel Jade holds the mining rights to the claims which thereby gives them or their designated agent, the rights to mine and recover all of the minerals contained within the surface boundaries of the lease continued vertically downward. In the event Angel Jade were to grant another deed which is subsequently registered prior to our deed, the third party would obtain good title and we would have nothing.

Mayan has granted an option to Stallion to allow us to explore, mine and recover any minerals on the claims. As with the preceding, if Mayan were to grant an option to another party, that party would be able to enter the claims, carry out certain work commitments and earn right and title to the claims; we would have little recourse as we would be harmed, would not own any claims and would have to cease operations. However, in either event, Mayan would be liable to us for monetary damages for breach of the agreement. The extent of that liability would be for our out of pocket costs for expenditures on the claims, if any, in addition to any lost opportunity costs if the claims proved to be of value in the future. The agreement does not specifically reference these risks or the recourse provided. Although we would have recourse against Mayan in the situations described, there is a question as to whether that recourse would have specific value.

Under British Columbia law, if the ownership of the claim were to be passed to us and the deed of ownership were to be recorded in our name, we would have to pay a minimum of $1,000 and file other documents since we are a foreign company in Canada. We would also be required to form a B.C company which would necessitate a board of directors, a majority of which would have to be residents of B.C. and obtain audited financial statements for that company. We have decided that if gold mineralization is discovered on the claim and it appears that it might be economical to remove the gold mineralization, we will record the deed of ownership, pay the additional tax establish a corporate subsidiary in British Columbia. The decision to record or not is ours solely.

Geology

A mapping program managed by the B.C. Department of Mines indicates that the ages of the rock formations are such that at the junctions of the various formations there are faults which are conducive to and likely provided the plumbing which allowed for the placement of the mineral bearing vein structures generally associated with gold and silver values found in the area.

The main faulted area, which virtually cuts the project area in half, has been traced north – south for 50 miles. This fault was probably the heat source for the mineralizing fluids. The gold and silver values generally found in the area often occur in association with a sulphide mix of galena, sphalerite, chalcopyrite, pyrite, etc. – all characteristics of viable gold bearing structures.

History

Over the years various samples that have been assayed have been taken from the area of the claims. The majority of the samples, although published by the British Columbia Department of Mines for information and review purposes are not available for the purposes of this report.

During examinations of the claims in 1993, 1997 and 2003, Mr. Heard, the author of the report on the claims, sampled the pit area found on the claims and completed approximately 600 feet of diamond drilling. As well, two trenches were dug along strike from the pit area, chip sampled and analyzed using a sophisticated 30 element induced coupled plasma (ICP) analysis procedure. As a result of this work and a thorough historical review of the claims, Mr. Heard was able to delineate a two-phase work program for our exploration and the viability testing of the claims.

The preceding exploration programs carried out by Mr. Heard are, on their own, not indicative of a gold discovery. The examinations provided historical reference points which, in total, indicate that there are valid reasons to further explore the claims. Although a limited program, the review of the property and its history indicate that the right indicators exist for the potential of a commercially viable mining operation. The preceding results and analysis indicate that a further program of exploration to follow the vein structures to depth and to attempt to determine possible tonnage of mineral values on the claims is warranted.

Work on the Property by Stallion

The 2005 phase I work program on the claims consisting of grid construction and geophysical surveys plus a limited amount of diamond drilling was completed on September 23, 2005.

We were successful in completing all the planned work consisting of a grid run over the entire property, both magnetometer and deep penetration electromagnetic surveys (TEM) and 500 feet of diamond drilling. We were able to complete the program in fewer days than anticipated due to favourable weather but ran less diamond drilling than originally projected for varying reasons. A report on the results of the work is in the initial stages of preparation and will be available when final assay results are received by Mr. Heard. This is expected by the first week of May, 2006.

Our Proposed Exploration Program – Plan of Operation

We have now completed the on-site work of the initial exploration of the Bell 1-4 mineral claims to determine if there are commercially exploitable deposits of gold and silver and will assess the results of this program upon receipt of Mr. Heard’s report. We do not claim to have any ores or reserves whatsoever at this time on our optioned claims.

Phase I of the recommended geological exploration program cost approximately $27,753 which was less than the anticipated cost of $35,000 due to speedier work, good weather and a reduced diamond drill program. We had $31,409 in cash reserves as of February 28, 2006. Accordingly, we will not be able to proceed with the second phase of the exploration program without additional financing.

In phase 1 we re-established the 2003 grid and reviewed maps of the results of past geological and geochemical programs; then we completed an electromagnetic survey of the claims and a small diamond drilling program.

The laying out of a grid and line cutting involved the physical cutting of the underbrush and overlay to establish an actual grid on the ground whereby items can be related one to another more easily and with greater accuracy. When we map, we essentially generate a drawing of the physical features of the land as well as a depiction of what may have been found in relation to the boundaries of the property. So we actually drew a scale map of the area and made notes on it as to the location where anything was found that was of interest.

Geophysical surveying involves the measurement of various physical properties of the rocks at the site as well as interpreting that information in terms of the structure and nature of the rock. The geologist took different surface and airborne measurements of the various physical properties of the rocks and will interpret the results in terms of what we are seeking. These methods included magnetic, electrical and seismic measurements. Our engineers will then interpret all the data obtained, plot it on the map we have generated and provide their best estimate of the chances of finding gold and what additional efforts we must undertake in a follow-up phase.

Magnetometer and VLF-EM, very low frequency electromagnetic surveys, were used as an aid to mapping and structural interpretation and may assist in locating mineralization and serve to assist in the delineation of the various physical properties of the rock which can be used as pointers towards whether gold mineralization may be present or not. Anomalies were evaluated closely and some were diamond drilled to help in determining their economic potential.

We ran approximately 500 feet of diamond drilling in the first phase which is an essential component of exploration and aids in the delineation and definition of any deposits. The geophysical work gives a

general understanding of the location and extent of mineralization at depths that are unreachable by surface excavations and provides a target for more extensive trenching and core drilling.

Phase 1 began by re-establishing a 2003 base line grid with 25-meter stations and cross lines run every 50 meters for 100 meters each side of the baseline. We then conducted a ground level electromagnetic survey over the grid with readings taken every 25 meters along the lines as well as an airborne EM survey followed by approximately 500 feet of diamond drilling over selected target areas based on the results of previous exploration which will be coordinated with the results of the EM surveys. We also took further rock and geochemical samples of those areas determined by the geological and EM surveys. This entailed taking till, rock and drill core samples from the claims to a laboratory where a determination of the elemental make up of the sample and the exact concentrations of gold, silver, lead and other indicator minerals will be made. We will then compare the relative concentrations of gold, silver, lead and other indicator minerals in samp les so the results from different samples can be compared in a more precise manner and plotted on a map to evaluate their significance. Trenching, drilling and other work done in previously recorded exploration programs was the guide for the locations of the drilling.

We also employed some minor trenching of the areas. Trenches are generally 100 feet in length and 10 to 20 feet wide. These dimensions allow for a thorough examination of the surface of the vein structure types generally encountered in the area. They also allow easier restoration of the land to its pre-exploration condition when we conclude our operations. Once excavation of a trench is completed, samples are taken and analyzed for economically valuable and other indicator minerals that are known to have occurred in the area. Trench and rock samples as well as diamond drilled samples will be tested for traces of gold, silver, lead, copper, zinc, iron and other minerals; however, our primary focus is the search for gold and silver.

The correlation of the results of these surveys and drilling may require up to an additional four months for analysis, evaluation of the results of the work and the preparation of a report on the work accomplished.

Phase II will not be carried out until mid 2006 and will be contingent upon favourable results from phase I and any specific recommendations of Mr. Heard. It will be directed towards an expansion of the diamond drilling. The second phase may require up to four weeks work and will cost approximately $85,000 comprised of wages, fees and camp operations, diamond drilling, assays and related. The cost estimate is also based on the report and is a reflection of local costs for the specified type of work. A further three months may be required for analysis and the preparation of a report and evaluation on the work accomplished.

Although it may appear that phase II merely continues phase I, such is not entirely the case. The work is phased in such a manner as to allow decision points to ensure that future work has a value and will provide better or additional information as to the viability of the claims. By utilizing a multi-phase work program, at the end of each phase a decision can be made as to whether the phase has provided the necessary information to increase the viability of the project. If the information obtained as a result of any phase indicates that there is no increased probability of finding an economically viable deposit at the end of the project, a determination would be made that the work should cease at that point. This is a standard procedure in the industry prior to the commitment of additional funding to move a project forward to the next phase of exploration and/or development.

Risks

At present we do not know whether or not the claims contain commercially exploitable reserves of gold or any other valuable mineral. Additionally, the proposed expenditures to be made by us in the exploration of the claim may not result in the discovery of commercial quantities of ore. Problems such as unusual or unexpected formations and other unanticipated conditions are involved in mineral exploration and often result in unsuccessful exploration efforts. In such a case, we would be unable to complete our business plan.

With completion of our SB-2 offering in May, 2005 we had sufficient financial resources to complete the first phase of our proposed exploration plan. However, in order to complete future phases of our proposed exploration program we will need to raise additional funding. Even if the first phase of our exploration program is deemed to be successful there is no guarantee that we will be able to raise any additional capital in order to finance the second or third phases. Should we be unable to raise additional funding to complete the second and third phases of our exploration plan, we would have to cease operations.

Finally, even if our exploration program is successful we may not be able to obtain commercial production. If our exploration is successful and commercial quantities of ore are discovered we will require a significant amount of additional funds to place the claim into commercial production. Should we be unable to raise the additional funds required, we would be unable to see the claim evolve into an operating mine and would have to cease operations.

Mississippi Prospect

On August 2^nd, 2006 the Company entered into a Memorandum between Griffin & Griffin Exploration LLC (G&G) that proposes two drilling programs that will be conducted by G&G. The company’s share of all costs will be 30%, which will entitle the Company to share in the following royalty arrangement;

Wilcox wells.

G&G will be entitled to receive 25% of all net revenues

II.

The Company will be entitled to receive it pro-rata share (23%) of seventy-five percent (75%) of all net revenues.

III.

In the event that the first exploration well establishes commercial production, then any offsetting well within the limits of the same reservoir, at the option of G&G, will be at the cost of G&G; or, provide the Company an opportunity to participate at its pro-rata share in 100% of all net revenues until all costs, including costs associated to establish commercial production, before payout (BPO), after which G&G will be entitled to its 25% working interest after payout (APO).

Frio wells.

G&G will be entitled to 20% of all net revenues;

II.

The Company will be entitled to receive its pro-rata share (24%) of eighty percent of all net revenues.

The total costs associated with the above program are $1,200,000 and are described below;

The Company’s pro-rata share of $1,000,000 paid by August 15, 2006 which amounted to $300,000.

On or before October 1, 2006 the company’s pro-rata share of $2,000,000 amounting to $600,000 which will be used to further the development of prospects on lands of interest in Mississippi and Louisiana.

On or before November 1, 2006 the Company pro-rata share of $1,000,000 amounting to $300,000 which will be used to further the development of prospects on lands of interest in Mississippi and Louisiana.

Risks

At present we do not know whether or not the exploration wells contain commercially exploitable reserves of oil and/or natural gas or any other valuable mineral. Additionally, the proposed expenditures to be made by us in the exploration of the claim may not result in the discovery of commercial quantities of oil and/or natural gas. Problems such as unusual or unexpected formations and other unanticipated conditions are involved in mineral exploration and often result in unsuccessful exploration efforts. In such a case, we would be unable to complete our business plan.

However, in order to complete future phases of our proposed exploration program we will need to raise additional funding. Even if the first phase of our exploration program is deemed to be successful there is no guarantee that we will be able to raise any additional capital in order to finance the second or third phases. Should we be unable to raise additional funding to complete our exploration plan, we would have to cease operations.

Finally, even if our exploration program is successful we may not be able to obtain commercial production. If our exploration is successful and commercial quantities of minerals are discovered we will require a significant amount of additional funds to ensure commercial production. Should we be unable to raise the additional funds required, we would be unable to continue economic operations and may have to either sell our working interest to a third party or would have to cease operations.

Employees

Initially, we intend to use the services of subcontractors for manual labour exploration work on our claims and an engineer or geologist to manage the exploration program. Our only employees are Gerald W. Williams, President and director; Christopher Paton-Gay, Chairman/CEO and director and Kulwant Sandher, Chief Financial Officer and director.

At present, we have no other employees, other than our officers and directors. Neither Mr. Williams, Mr. Paton-Gay or Mr. Sandher has an employment agreement with us. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to employees.

We intend to hire geologists, engineers, operators and excavation subcontractors on an as needed basis. We have entered into an operating agreement with Griffin & Griffin LLC to provide drilling and exploration services for the Company’s Mississippi’s play and it is our intention to retain Mr. Heard as senior geological consultant. We do not intend to initiate negotiations or hire anyone until we receive proceeds from our offering.

Offices

Our offices are located at 604 – 700 West Pender Street, B.C. Canada V6C 1G8. Currently, these facilities are provided to the Company by Hurricane Corporate Services Ltd., a company owned by two directors. The costs regarding accounting, office, secretarial and consulting services are paid on a fixed amount per month.

Results of Operations

Stallion was incorporated on January 09, 2004; comparative periods for the three months ended August 31, 2006, August 31, 2005 and January 09, 2004 (inception) through August 31, 2006 are presented in the following discussion.

Since inception, we have used our common stock to raise money for our optioned acquisition and for corporate expenses. Net cash provided by financing activities (less offering costs) from inception on January 09, 2004 to February 28, 2006 was $546,320 as a result of proceeds received from sales of our common stock.

The Corporation did not generate any revenues from operations for the quarter ended August 31, 2006. To date, we have not generated any revenues from our mineral exploration business.

REVENUES

REVENUE – Gross revenue for the quarter ended August 31, 2006 was $0 ($0 for the quarter ended August 31, 2005 and $0 for the period from inception to August 31, 2006). For the three month periods ended August 31, 2006 and August 31, 2005, the comparative numbers were $0 and $0.

COMMON STOCK – Since inception, we have used our common stock to raise money for our optioned acquisition and for corporate expenses. Net cash provided by financing activities during the quarter ended August 31, 2006 was $447,520 as compared to $0 for the quarter ended August 31, 2005 and $546,320 received for the period from inception on January 09, 2004 through to and including August 31, 2006.

EXPENSES

SUMMARY – Total expenses increased to $20,849 in the quarter ended August 31, 2006 from $9,221 in the previous quarter ended August 31, 2005. A total of $105,365 in expenses has been incurred since inception on January 09, 2004 through August 31, 2006. The increase in operating costs was caused by the following;

Professional Fees. An increase in professional fees was caused by the Company’s contract with a third party accounting and preparation company. This company charges Stallion for the preparation of monthly financial statements, daily bookkeeping and office facilities.

Office and Miscellaneous. An increase in these costs was caused by the Company’s share in office facilities at its new location.

During the current quarter under review, Stallion did not sell any shares of its common stock. As of the date of this report Stallion has 9,306,500 common shares issued and outstanding.

Stallion continues to carefully control its expenses and overall costs as it moves forward with the development of its business plan. Stallion does not have any employees and engages personnel through outside consulting contracts or agreements or other such arrangements, including for legal, accounting and technical consultants.

Plan of Operation

Stallion believes it can satisfy its cash requirements for the current fiscal year end of May 31, 2007, only by raising additional capital through private placements, equity financing, loans or the like. As of August 31, 2006, we had $145,046 in unallocated working capital.

The Company is changing its focus from a gold exploration company to a Company that is targeting natural gas and oil exploration. For the remainder of the current fiscal year to May 31, 2007, the Company will pursue its working interest obligations in the Mississippi. The Company will fund its obligations through issuing equity capital by way of private placements.

If it turns out that we have not raised enough money to complete our natural gas and oil exploration program, we will try to raise the funds from a second public offering, a private placement, loans or the establishment of a joint venture whereby a third party would pay the costs associated with the exploration

and we would retain a carried interest. At the present time, there is no assurance that we would be able to raise money in the future. If we need additional money and can't raise it, we will have to suspend operations.

We do not expect any changes or more hiring of employees since contracts are given on an as needed basis to consultants and sub-contractor specialists in specific fields of expertise for the exploration works.

Presently, our revenues are not sufficient to meet operating and capital expenses. We have incurred operating losses since inception, and this is likely to continue through fiscal 2005 – 2006.

As at August 31, 2006, we had a working capital surplus of $145,046. We do not anticipate that we will be able to satisfy any of these funding requirements internally until we significantly increase our revenues.

Due to the uncertainty of our ability to meet our current operating and capital expenses, in their report on the annual financial statements for the year ended May 31, 2006, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon obtaining further financing. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further funds required for our continued operations. We are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our other obligations as they become due.

Liquidity and Capital Resources

As of end of the last quarter on August 31, 2006, we have yet to generate any revenues from our business operations.

Since inception, we have used our common stock to raise money for our optioned acquisition and for corporate expenses. Net cash provided by financing activities from inception on January 09, 2004 to August 31, 2006 was $546,320 as a result of gross proceeds received from sales of our common stock (less offering costs). We issued 5,000,000 shares of common stock through a Section 4(2) offering in February, 2004 for cash consideration of $5,000. We issued 4,000,000 shares of common stock through a Regulation S offering in May and June, 2004 for cash consideration of $40,000 to a total of 10 placees. During the last quarter of the last fiscal year we raised $69,300 through the sale of 306,500 shares at a price of $0.20 under a Regulation SB-2 prospectus offering to a total of 43 placees. During the quarter ending August 31, 2006, the Company raised $447,520 via an issuance of shares at $0.60. However the shares have not been issued as a t the balance sheet date.

As of August 31, 2006, our total assets which consist entirely of cash and prepaid expenses amounted to $152,689 and our total liabilities were $7,643. Working capital stood at $145,046.

For the quarter ended August 31, 2006, the net loss was $20,849 ($0.002 per share). The loss per share was based on a weighted average of 9,306,500 common shares outstanding. For the same period ended August 31, 2005, the corresponding number was a loss of $9,221 ($0.001) based on 9,306,500 shares outstanding.

Inflation / Currency Fluctuations

Inflation has not been a factor during the recent quarter ended August 31, 2006. Inflation is moderately higher than it was during 2005 but the actual rate of inflation is not material and is not considered a factor in our contemplated capital expenditure program.

Item 3.

Controls and Procedures

The registrant's certifying officers are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and the Corporation’s Chief Executive Officer and Chief Financial Officer have:

designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

evaluated the effectiveness of our disclosure controls and procedures as of the filing date of this quarterly report (the "Evaluation Date"); and

presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

There have been no changes in the our internal controls or in other factors that could affect these controls including any corrective actions with regard to deficiencies and material weaknesses.

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

The Corporation is and has not been party to any legal proceedings in the preceeding quarter.

Item 2.

Changes in Securities

Stallion had 9,306,500 shares of common stock issued and outstanding as of October 4, 2006. Of these shares, approximately 5,000,000 shares are held by an affiliate of the Corporation; some of those shares can be resold in compliance with the limitations of Rule 144 as adopted by the Securities Act of 1933, as amended (the “Securities Act”).

In general, under Rule 144, a person who has beneficially owned shares privately acquired directly or indirectly from us or from one of our affiliates, for at least one year, or who is an affiliate, is entitled to sell, within any three-month period, a number of shares that do not exceed the greater of 1% of the then outstanding shares or the average weekly trading volume in our shares during the four calendar weeks immediately preceding such sale. Sales under Rule 144 are also subject to certain manner of sale provisions, notice requirements and the availability of current public information about us. A person who is not deemed to have been an affiliate at any time during the 90 days preceding the sale, and who has beneficially owned restricted shares for at least two years, is entitled to sell all such shares under Rule 144 without regard to the volume limitations, current public information requirements, manner of sale provisions or notice re quirements.

The issuances discussed under this section are exempted from registration under Rule 903 of Regulation S of the Securities Act (“Reg. S”) or Section 4(2) of the Securities Act (“Section 4(2)”), as provided. All purchasers of our securities acquired the shares for investment purposes only and all stock certificates reflect the appropriate legends as appropriate. No underwriters were involved in connection with the sale of securities referred to in this report.

Item 4.

Submission of Matters to a Vote of Security Holders

No matter has been submitted to a vote of security holders during the preceeding quarter.

Item 5.

Other Information

Common Stock

During the three - month period ended August 31, 2006, no shares of common stock were issued. However, funds were raised via a private placement, but no shares were issued until after the quarter end. As of August 31, 2006, there were 9,306,500 shares issued and outstanding and as of October 4, 2006 there were 9,306,500 shares outstanding.

Options

No options were granted during the three-month period ending August 31, 2006.

Item 6. Exhibits and Reports on Form 8-K

Reports on Form 8-K filed during the quarter ended August 31, 2006: NONE

Exhibits

31.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, 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.

The following Exhibits are filed as part of this report pursuant to Item 601 of Regulation K. All Exhibits have been previously filed unless otherwise noted.


Exhibit No.	Document Description
3.1	Articles of Incorporation
3.2	Bylaws of The Stallion Group
10.1	Option To Purchase And Royalty Agreement

Incorporated by reference to SB-2 Registration Statement filed on August 19, 2004

Description of Exhibits Incorporated by Reference

Exhibit 3.1

Articles of Incorporation of The Stallion Group dated January 09, 2004.

Exhibit 3.2

Bylaws of The Stallion Group dated January 28, 2004.

Exhibit 10.1

Option To Purchase And Royalty Agreement between The Stallion Group and Mayan Minerals Ltd. of Vancouver, B.C., dated May 31, 2004 to acquire a 100% interest in the Bell 1-4 Mineral Claims, Omenica Mining Division, British Columbia.

* Incorporated by reference to SB-2 Registration Statement filed on August 19, 2004

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

The Stallion Group

(Registrant)

Date: October 11, 2006

BY:

/s/

“Gerald W. Williams”

Gerald W. Williams, President, Secretary, Treasurer and a Member of the Board of Directors

CERTIFICATION PURSUANT TO SECTION 302


		I, Gerald W Williams, certify that:

1. I have reviewed this Quarterly report on Form 10-QSB of The Stallion Group;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in the light of circumstances under which such statements were made, nor misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods represented in this report;

4. The small business issuer's registrant's sole certifying officer, I, am responsible for establishing and maintaining disclosure controls and procedures [as defined in Exchange Act Rules 13a-14 and 15d-14 13a-15(f) and 15d-15(f)] for the small business issuer and have:


	(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;


	(b) Designed such internal control over financial reporting, or causes such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


	(c) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an quarterly report) that has materially affected or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's sole certifying officer, I, have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's auditors and the audit committee of small business issuer's board of directors (or persons performing the equivalent functions):


	(a) all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and identified for the registrant's auditors any material weaknesses in internal controls; and


	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: October 11, 2006

By:

/s/Gerald W Williams

Gerald W Williams

President

CERTIFICATION PURSUANT TO SECTION 302


		I, Christopher Paton-Gay, certify that:

1. I have reviewed this Quarterly report on Form 10-QSB of The Stallion Group;


	(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;


	(b) Designed such internal control over financial reporting, or causes such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


	(c) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


	(a) all significant deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and identified for the registrant's auditors any material weaknesses in internal controls; and


	(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: October 11, 2006

By:

/s/Christopher Paton-Gay

Christopher Paton-Gay

Chairman/CEO

Exhibit 32

CERTIFICATION PURSUANT TO 18 USC SECTION 1350

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Stallion Group a Nevada corporation (the "Company"), on Form 10-QSB for the quarter ended August 31, 2006 as filed with the Securities and Exchange Commission (the "Report"), I, Kulwant Sandher, Director/CFO of the Company, certify, pursuant to 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 11, 2006

/s/ Kulwant Sandher

Kulwant Sandher

Director/ CFO

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Stallion Group a Nevada corporation (the "Company"), on Form 10-QSB for the quarter ended August 31, 2006 as filed with the Securities and Exchange Commission (the "Report"), I, Christopher Paton-Gay, CEO of the Company, certify, pursuant to 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 11, 2006

/s/ Christopher Paton-Gay

Christopher Paton-Gay

Chairman /CEO

Stallion (SLGR) Inactive 10QSB2007 Q1 Quarterly report (small business)