White Knight Resources 6-K Report of Foreign Private Issuer

WHITE KNIGHT RESOURCES LTD.
(An Exploration Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)

FOR THE SECOND QUARTER ENDED
December 31, 2006
(unaudited)

White Knight Resources Ltd.

(An Exploration Stage Company)

CONSOLIDATED BALANCE SHEETS

Unaudited – prepared by management

(Expressed in Canadian Dollars)

		Dec 31 2006			June 30 2006
ASSETS
Current
Cash	$	11,988,005		$	11,397,885
Temporary investments		135,646			2,107,699
Receivables (net of allowance - $Nil; June 30, 2006 - $NIL)		172,534			117,490
Prepaid expenses		6,455			49,370
Total Current Assets		12,302,640			13,672,444
Mineral property interests(Note 3)		2,764,782			2,799,619
Deferred exploration costs(Note 4)		4,421,865			3,864,359
Restricted reclamation bonds(Note 9)		258,498			234,783
Long term loans receivable(Note 5)		1,126,203			805,269
Equipment		140,651			125,584
Total Assets	$	21,014,639		$	21,502,058
LIABILITIES
Current
Accounts payable and accrued liabilities	$	104,327		$	315,515
Due to related parties (Note 7)		81,642			118,002
Total current liabilities		185,969			433,517
Asset retirement obligation		165,985			165,985
Total Liabilities		351,954			599,502
SHAREHOLDERS’ EQUITY
Capital stock (Note 6)
Authorized: unlimited common shares without par value
Issued and outstanding 59,434,972 (June 30/06 – 59,384,972)		33,700,575			33,630,385
Contributed surplus		3,214,975			3,153,572
Deficit accumulated during the exploration stage		(16,252,865	)		(15,881,401	)
Total Shareholders’ Equity		20,662,685			20,902,556
Total liabilities and shareholders’ equity	$	21,014,639		$	21,502,058

Approved by the Board:Director:	Director:
“John M. Leask””	“Megan Cameron-Jones””
John M. Leask, P.Eng	Megan Cameron-Jones

The accompanying notes are an integral part of these consolidated financial statements.

White Knight Resources Ltd.

(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited – prepared by management

(Expressed in Canadian Dollars)

For the period ended December 31

		Cumulative
		Amounts from			2006						2005
		Inception on
		Dec 18, 1986
		to Dec 31, 2006			Quarter to Date			Year to Date			Quarter to Date			Year to Date
EXPENSES
Amortization	$	236,961		$	8,461		$	16,816		$	8,557		$	17,214
Audit		279,302			(6,121	)		23,879			41,023			41,023
Bank charges & interest		26,952			303			603			1,402			3,265
Consulting		1,356,608			45,083			72,981			32,035			63,030
Consulting – stock-based compensation		3,357,939			30,425			94,093			35,245			62,011
Investor relations & shareholder info		718,209			29,733			52,235			35,687			65,303
Legal		645,474			933			3,843			14,996			23,958
Management fees		1,569,910			66,000			132,000			66,000			132,000
Office & miscellaneous		795,847			26,083			42,177			14,110			41,109
Rent		366,189			14,121			27,990			13,566			26,960
Telephone		213,425			4,378			9,210			4,426			10,322
Transfer agent & listing fees		315,990			8,723			10,393			11,985			16,615
Travel & entertainment		532,750			15,534			27,413			25,708			64,092
Wages & benefits		883,637			32,386			52,566			39,586			62,130
LOSS BEFORE UNDER-NOTED ITEMS		(11,299,193	)		(276,042	)		(566,199	)		(344,326	)		(629,032	)
`
Interest income		1,547,091			122,162			251,357			153,096			181,973
Gain on foreign exchange		143,059			15,553			17,485			25,619			4,185
Option payments received (net)		633,519												13,617
Gain on disposal of equipment		13,867
Unrealized recovery (loss) on temporary
investments		(40,478	)		(30,182	)		(31,632	)		7,535			7,836
Gain on disposal of temporary
investments		166,591
Write-off of deferred exploration costs		(3,603,064	)		(22,509	)		(42,475	)		(21,348	)		(60,060	)
Write-off of mineral property interests		(3,814,257	)
LOSS FOR THE PERIOD	$	(16,252,865	)	$	(191,018	)	$	(371,464	)	$	(179,424	)	$	(481,481	)
Basic and diluted loss per common share				$	(0.003	)	$	(0.006	)	$	(0.003	)	$	(0.008	)
Weighted average number of common
shares outstanding					59,402,363			59,393,668			59,163,287			58,410,892

The accompanying notes are an integral part of these consolidated financial statements.

White Knight Resources Ltd.

(An Exploration Stage Company)

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

Unaudited –prepared by management

(Expressed in Canadian Dollars)

	Number of						Contributed
	Shares		Price		Amount		Surplus			Deficit			Total
Balance, June 30, 2006	59,384,972	$		$	33,630,385	$	3,153,572		$	(15,881,401	)	$	20,902,556
Shares issued for:
Exercise of stock options (Note 5)	50,000		0.75		70,190								70,190
Stock-based compensation							94,093						94,093
Less: fair market value of
stock options exercised							(32,690	)					(32,690	)
Loss for the period										(371,464	)		(371,464	)
Balance, December 31, 2006	59,434,972			$	33,700,575	$	3,214,975		$	(16,252,865	)	$	20,662,685

The accompanying notes are an integral part of these consolidated financial statements.

White Knight Resources Ltd.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31

					2006						2005
		Cumulative
		Amounts from
		Inception on
		Dec 18, 1986
		to Dec 31, 2006			Quarter to Date			Year to Date			Quarter to Date			Year to Date
Cash Flows from Operating Activities
Loss for the period	$	(16,252,865	)	$	(191,018	)	$	(371,464	)	$	(179,424	)	$	(481,481	)
Items not affecting cash:
Amortization		236,961			8,461			16,816			8,557			17,214
Write-off of deferred exploration costs		3,603,064			22,509			42,475			21,348			60,060
Write-off of mineral property interests		3,814,257
Stock-based compensation		3,357,939			30,425			94,093			35,245			62,011
Gain on disposal of equipment		(13,867	)
Unrealized (recovery) loss on temporary
investments		40,478			30,182			31,632			(7,535	)		(7,836	)
Gain on disposal of investments		(166,591	)
Shares issued for management bonus		150,000
Changes in non-cash working capital
Decrease (increase) in prepaid exp.		(6,455	)		41,656			42,915			21,244			38,825
Decrease (increase) in receivables		(172,534	)		(39,201	)		(55,044	)		321,108			56,150
Increase (decrease) in accounts payable
& accrued. liabilities		312,931			(46,356	)		(63,453	)		53,927			(104,826	)
Increase (decrease) in due to related
parties		81,642			(18,887	)		(36,360	)		(46,029	)		46,324
Net cash provided by (used in) operating
activities		(5,015,040	)		(162,229	)		(298,390	)		228,441			(313,559	)
Cash Flows from Financing Activities
Issuance of capital stock		32,762,273			37,500			37,500			33,351			6,272,284
Net cash provided by financing activities		32,762,273			37,500			37,500			33,351			6,272,284
Cash Flows from Investing Activities
Recovery (acquisition) of mineral property
interest		(6,038,946	)		44,159			10,461			(146,547	)		(294,891	)
Deferred exploration costs		(7,978,887	)		(253,732	)		(699,924	)		(1,136,660	)		(1,538,936	)
Restricted reclamation bond posted		(264,828	)		(20,417	)		(30,045	)		(25,106	)		(37,330	)
Disposal (acquisition) of temporary
investments (net)		70,467			1,992,976			1,980,421			567,932			(4,092,159	)
Proceeds from disposal of equipment		58,141
Acquisition of long term loans		(1,183,289	)		(165,382	)		(378,020	)		(155,699	)		(155,699	)
Acquisition of equipment		(421,886	)		(246	)		(31,883	)		(952	)		(19,215	)
Net cash provided by (used in) investing
activities		(15,759,228	)		1,597,358			851,010			(897,032	)		(6,138,230	)
Increase (decrease) in cash during the
period		11,988,005			1,472,629			590,120			(635,240	)		(179,505	)
Cash, beginning of period					10,515,376			11,397,885			738,194			282,459
Cash, end of period	$	11,988,005		$	11,988,005		$	11,988,005		$	102,954		$	102,954

Supplemental disclosures with respect to cash flows (Note 10)

The accompanying notes are an integral part of these consolidated financial statements.

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006

1.	NATURE AND CONTINUANCE OF OPERATIONS
	White Knight Resources Ltd. (the "Company") is a Canadian company incorporated in British Columbia. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standards (“SFAS”) No. 7, “Accounting and Reporting by Development Stage Enterprises”. The Company is primarily engaged in the acquisition and exploration of mineral property interests.
	The ability of the Company to realize the costs it has incurred to date on its mineral property interests is dependent upon the Company being able to lever its property interests and cash, by way of exploration activities and option/joint ventures, into assets of greater value or to identify ore bodies, to finance its exploration costs and to resolve any environmental, regulatory or other constraints which may hinder the successful development of the mineral property interest. To date, the Company has not earned revenues and is considered to be in the exploration stage.
	These consolidated financial statements have been prepared assuming the Company will continue on a going- concern basis. The Company has incurred losses since inception and the ability of the Company to continue as a going-concern depends upon its ability to develop profitable operations and to continue to raise adequate financing. Management is actively targeting sources of additional financing through alliances with financial, exploration and mining entities, or other business and financial transactions which would assure continuation of the Company’s operations and exploration programs. In order for the Company to meet its liabilities as they come due and to continue its operations, the Company is solely dependent upon its ability to generate such financing. The Company has sufficient resources to meet its obligations for the foreseeable future at its current level of activity.
	There can be no assurance that the Company will be able to continue to raise funds in which case the Company may be unable to meet its obligations. Should the Company be unable to realize on its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded on the consolidated balance sheets.
	All amounts are in Canadian dollars unless otherwise stated.

		Dec 31, 2006			Jun 30, 2006
Working capital	$	12,116,671		$	13,238,927
Deficit		(16,252,865	)		(15,881,401	)

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	The unaudited interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for audited financial statements. In the opinion of management, all adjustments (consisting of normal and recurring accruals) considered necessary for fair presentation have been included. Operating results for the six month period ended December 31, 2006 are not necessarily indicative of the results that may be expected for the year ended June 30, 2007.
	The interim consolidated financial statements have been prepared by management in accordance with the accounting policies described in the Company’s annual consolidated financial statements for the year ended June 30, 2006. For further information, refer to the consolidated financial statements and footnotes thereto included for the year ended June 30, 2006.

White Knight Resources Ltd.

(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited –prepared by management

(Expressed in Canadian Dollars)

For the period ended December 31, 2006

Page 2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont’d…)

Asset retirement obligations

Effective July 1, 2004, the Company recognizes the fair value of a liability for an asset retirement obligation in the year in which it is incurred when a reasonable estimate of fair value can be made. The carrying amount of the related long-lived asset is increased by the same amount as the liability. Changes in the liability for an asset retirement obligation due to the passage of time will be measured by applying an interest method of allocation. The amount will be recognized as an increase in the liability and an accretion expense in the statement of operations. Changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the cost of the related long-lived asset.

Stock-based compensation

The Company has an employee stock option plan. The Company recognizes an expense arising from stock options granted to both employees and non-employees using the fair value method. The fair value of option grants is generally established at the date of grant using the Black Scholes option pricing model and the compensation amount, equal to the option’s fair value, is then recognized over the options vesting periods.

Comparative figures

Certain comparative figures have been reclassified to conform to the current period’s presentation.

3. MINERAL PROPERTY INTERESTS

		Balance at							Balance at
		June 30, 2006		Additions		Recovery			Dec 31, 2006
Nevada Properties
Benmark	$	81,118	$	15,092	$			$	96,210
Celt		284,919							284,919
Cottonwood		160,214		17,294					177,508
Fye Canyon		173,825		1,515		(99,153	)		76,187
Gold Bar Horst		149,237		27,618					176,855
Gold Pick		24,556		4,075					28,631
Goldstone		32,309		9,357					41,666
Hunter		136,891		7,244					144,135
Ian		31,317		8,451					39,768
Knolls		86,102		27,169					113,271
McClusky Pass		134,460		36,672					171,132
New Pass		419,732		16,152		(113,315	)		322,569
Pat Canyon		108,797		26,863					135,660
Patty		108,402							108,402
Slaven Canyon		365,427		87,866					453,293
South Cabin Creek		47,389		12,677					60,066
Squaw Creek		270,261		22,792		(184,104	)		108,949
Tonkin Summit		129,663		28,070					157,733
Other		55,000		12,828					67,828
Total Nevada Properties	$	2,799,619	$	361,735	$	(396,572	)	$	2,764,782

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 3

3. MINERAL PROPERTY INTERESTS(cont’d…)

Title to mineral property interests involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral claims. The Company has investigated title to all of its mineral property interests and, to the best of its knowledge, expects title to all of its interests to be in good standing. The mineral property interests in which the Company has committed to earn an interest are located in the United States and the Company is therefore relying on advice by legal counsel who are basing such advice on the laws of the United States.

Nevada Properties

Celt Project

During the quarter, Teck Cominco American Incorporated (“Teck Cominco”) terminated its agreement on the Celt property. The Company maintains its 100% interest in the property.

New Pass Project

In fiscal 2005, the Company entered into an option agreement with Bonaventure Enterprises Inc. (“Bonaventure”) whereby Bonaventure may earn a 50% interest in the property by incurring exploration expenditures of US$2,000,000, issuing 500,000 shares and making cash payments of US$500,000 over a 4-year period (US$125,000 and 100,000 shares received during the period). Upon vesting, Bonaventure may elect to earn an additional 10% interest by financing the completion of a feasibility study.

Squaw Creek Project

In fiscal 2005, the Company entered into an option agreement with Bonaventure whereby Bonaventure may earn a 50% interest in the property by incurring exploration expenditures of US$2,000,000, issuing 500,000 shares and making cash payments of US$500,000 over a 4-year period (US$125,000 and 100,000 shares received during the period). Upon vesting, Bonaventure may elect to earn an additional 10% interest by financing the completion of a feasibility study.

4. DEFERRED EXPLORATION COSTS

		Balance at						Balance at
		Jun 30,						Dec 31,
By Type of Cost		2006			Additions			2006
Assays	$	883,710		$	49,124		$	932,834
Consulting		3,448,571			201,721			3,650,292
Drafting and report preparation		443,562			1,283			444,845
Drilling		4,578,673			321,669			4,900,342
Field operations		999,468			60,408			1,059,876
Reclamation		368,170			3,559			371,729
Recording		80,079						80,079
Supervision		391,707			3,816			395,523
Surveys		810,749			14,617			825,366
Trenching and site preparation		472,709			21,825			494,534
Recovery		(5,222,378	)		(78,041	)		(5,300,419	)
Write-off		(3,390,661	)		(42,475	)		(3,433,136	)
Total	$	3,864,359		$	557,506		$	4,421,865

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 4

4. DEFERRED EXPLORATION COSTS(cont…)

		Balance at										Balance at
		June 30,										Dec 31,
By Property		2006		Additions		Recoveries			Write-offs			2006
Nevada Properties
Benmark	$	32,131	$	6,306	$			$			$	38,437
Celt		17,505										17,505
Cottonwood		457,248		139,306								596,554
Fye Canyon		20,811		924		(13,892	)					7,843
Gold Bar Horst		147,447		337,668								485,115
Gold Pick		464,861		26,238								491,099
Goldstone		3,864		45,551								49,415
Hunter		34,186		42,545								76,731
Ian		625		13,437								14,062
Knolls		21,359										21,359
McClusky Pass		529,164		15,180								544,344
New Pass		64,149				(64,149	)
Pat Canyon		22,846										22,846
Patty		116,710		1,942								118,652
Slaven Canyon		1,806,259		6,111								1,812,370
South Cabin Creek		38,645		339								38,984
Tonkin Summit		86,549										86,549
General exploration				42,475					(42,475	)
Total Nevada Properties	$	3,864,359	$	678,022	$	(78,041	)	$	(42,475	)	$	4,421,865

5.	LONG TERM LOANS RECEIVABLE
	Under the terms of separate agreements, the Company is financing the reconstruction of two drill rigs to be repaid by an arms length third party drill contractor over a period of 20 months upon completion of the reconstructions. One of the drill rigs is currently in operation and repayments have commenced.
6.	CAPITAL STOCK
	Authorized: unlimited common shares without par value.
	Share Issuances
	There were no shares issued during the period other than 50,000 common shares issued on the exercise of stock options.
	Warrants
	At December 31, 2006, there were no warrants outstanding.

White Knight Resources Ltd.

(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited –prepared by management

(Expressed in Canadian Dollars)

For the period ended December 31, 2006

Page 5

6 CAPITAL STOCK(cont’d…)

Stock options

Under the Company’s stock option plan effective November 4, 2002 and amended November 6, 2003 and October 3, 2006, the Company may grant options for up to 7,072,935 common shares to directors, employees and consultants at exercise prices to be determined by the market value on the date of grant. Vesting of options is made at the discretion of the Board of Directors at the time the options are granted with the exception of options granted in relation to investor relations. Options granted to consultants engaged in investor relations activities must vest no earlier than as to one-quarter upon the grant date and as to a further one-quarter after each of the following three four-month periods.

At December 31, 2006, the following incentive stock options were outstanding:

Number	Exercise
of Shares	Price	Expiry Date
755,500	$ 0.23	January 23, 2008
2,074,500	0.41	September 23, 2008
100,000	0.75	March 1, 2009
50,000	0.85	March 21, 2010
40,000	0.67	April 6, 2010
50,000	1.50	October 19, 2010
1,875,000	1.91	January 10, 2011
4,945,000

Stock option transactions and the number of stock options outstanding are summarized as follows:

	Number of			Weighted Average
	Options			Exercise Price
Balance, June 30, 2006	5,120,000		$	1.00
Options exercised	(50,000	)		0.75
Options cancelled	(125,000	)		1.91
Balance, December 31, 2006	4,945,000			0.98
Number of options currently exercisable	4,920,000		$	0.97

7. RELATED PARTY TRANSACTIONS

During the year to date, the Company paid management fees in the amount of $132,000 (2005 - $132,000) to directors and officers of the Company and companies controlled by directors.

During the year to date, the Company paid consulting fees in the amount of $66,579 (2005 - $61,240) to directors and officers of the Company and companies controlled by directors. Of that amount, $54,262 (2005 - $57,000) is included or written off to deferred exploration costs.

During the year to date, the Company paid administrative consulting fees in the amount of $71,410 (2005 - $56,058) to officers and directors of the Company and a company controlled by a director.

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 6

7.	RELATED PARTY TRANSACTIONS (cont’d…)
	Amounts payable to related parties at December 31, 2006 aggregated $81,642 (June 30, 2006 - $118,002). The fair value for amounts due to related parties is not determinable since there are no stated terms of repayment.
	The amounts charged to the Company for the services provided have been determined by negotiation among the parties and are covered by signed agreements. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
8.	SEGMENTED INFORMATION
	The Company’s one reportable segment is the exploration and development of mineral properties. Geographical information is as follows:

						Mineral
						Property
						Interests and
						Deferred
		Total				Exploration		Other
		Assets		Equipment		Costs		Assets
December 31, 2006
Canada	$	12,303,803	$	21,545	$		$	12,282,258
United States		8,710,836		119,106		7,186,647		1,405,083
	$	21,014,639	$	140,651	$	7,186,647	$	13,687,341
June 30, 2006
Canada	$	13,637,654	$	24,639	$		$	13,613,015
United States		7,864,404		906,214		6,663,978		294,212
	$	21,502,058	$	930,853	$	6,663,978	$	13,907,227

		2006				2005
		Quarter		Year		Quarter		Year
		to Date		to Date		to Date		to Date
Loss before other items:
Canada	$	219,388	$	466,526	$	277,298	$	514,682
United States		56,654		99,673		67,028		114,350
	$	276,042	$	566,199	$	344,326	$	629,032

9.

RESTRICTED RECLAMATION BONDS

The Company has secure funds in place with the United States government, a Canadian bank and a United States bank as security for restricted reclamation bonds on its mineral properties. These restricted reclamation bonds were required by the local jurisdictions at the time exploration activities commenced on the properties and do not represent an asset retirement obligation (Note 2). Interest on the certificates of deposit with Canadian and United States banks is paid on a periodic basis to the Company.

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 7

10.	SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS
	Significant non-cash transactions during the period (2005 – 200,000 common shares of Bonaventure valued at $0.20 per share) include the acquisition of 200,000 common shares of Bonaventure valued at $0.16 per share as per the terms of option agreements (Note 3). Included in accounts payable are $11,754 (2005 – $317,961) related to deferred exploration costs, $72,242 (2005 - $4,822) related to acquisition of equipment and $Nil (2005 - $25,053) related to restricted reclamation bonds.
11.	DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
	These financial statements have been prepared in accordance with Canadian GAAP. Material variations in the accounting principles, practices and methods used in preparing these financial statements from principles, practices and methods accepted in the United States (“United States GAAP”) are described and quantified below.
	The impact of the differences between Canadian GAAP and United States GAAP on the consolidated balance sheets would be as follows:

		December 31, 2006							June 30, 2006
		Balance,					Balance,		Balance,					Balance,
		Canadian					United States		Canadian					United States
		GAAP		Adjustments			GAAP		GAAP		Adjustments			GAAP
Temporary investments	$	135,646	$			$	135,646	$	2,107,699	$	48,282		$	2,155,981
Other current assets		12,166,994					12,166,994		11,564,745					11,564,745
Mineral property interests		2,764,782		(1,948,223	)		816,559		2,799,619		(2,032,127	)		767,492
Deferred exploration costs		4,421,865		(4,421,865	)				3,864,359		(3,864,359	)
Long term loans		1,126,203					1,126,203		805,269					805,269
Equipment		140,651					140,651		125,584					125,584
Restricted reclamation bonds		258,498					258,498		234,783					234,783
	$	21,014,639	$	(6,370,088	)	$	14,644,551	$	21,502,058	$	(5,848,204	)	$	15,653,854
Current liabilities	$	185,969	$			$	185,969	$	433,517	$			$	433,517
Asset retirement obligation		165,985					165,985		165,985					165,985
Shareholders' equity		20,662,685		(6,370,088	)		14,292,597		20,902,556		(5,848,204	)		15,054,352
	$	21,014,639	$	(6,370,088	)	$	14,644,551	$	21,502,058	$	(5,848,204	)	$	15,653,854

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 8

11.	DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d…)
	The impact of the differences between Canadian GAAP and United States GAAP on the consolidated statements of operations would be as follows:

		Cumulative
		Amounts from
		Inception on			Three Month			Three Month			Six Month			Six Month
		Dec 18, 1986 to			Period Ended			Period Ended			Period Ended			Period Ended
		Dec 31, 2006			Dec 31, 2006			Dec 31, 2005			Dec 31, 2006			Dec 31, 2005
Loss for the period, Canadian GAAP	$	(16,252,865	)	$	(191,018	)	$	(179,424	)	$	(371,464	)	$	(481,481	)
Adjustments:
Mineral property interests		(1,948,223	)		81,488			(107,334	)		59,527			(227,346	)
Deferred exploration costs		(4,421,865	)		(162,035	)		(1,152,158	)		(557,506	)		(1,776,837	)
Increase in temporary investments		(58,762	)		(58,762	)		4,148						36,951
Loss for the period, United States GAAP	$	(22,681,715	)	$	(330,327	)	$	(1,434,768	)	$	(869,443	)	$	(2,448,713	)
Basic and diluted loss per share, United States
GAAP				$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.04	)
Weighted average number of common shares
outstanding, United States GAAP					59,402,363			59,393,668			59,163,287			58,410,892

The impact of the differences between Canadian GAAP and United States GAAP on the consolidated statements of cash flows would be as follows:

		Cumulative
		Amounts from
		Inception on			Three Month			Three Month			Six Month			Six Month
		Dec 18, 1986 to			Period Ended			Period Ended			Period Ended			Period Ended
		Dec 31, 2006			Dec 31, 2006			Dec 31, 2005			Dec 31, 2006			Dec 31, 2005
Cash flows used in operating activities, Canadian	$	(5,015,040	)	$	(162,229	)	$	228,441		$	(298,390	)	$	(313,559	)
GAAP
Acquisition of mineral property interests		(5,392,987	)		81,488			(107,334	)		59,527			(227,346	)
Deferred exploration costs		(7,978,887	)		(253,732	)		(1,136,660	)		(699,924	)		(1,538,936	)
Disposal (acquisition) of temporary investments		70,467			1,998,182			572,080			1,921,659			(4,055,208	)
Cash flows provided by (used in) operating		(18,316,447	)		1,663,709			(443,473	)		982,872			(6,135,049	)
activities,
United States GAAP
Cash flows provided by financing activities,
Canadian GAAP and United States GAAP		32,762,273			37,500			33,351			37,500			6,272,284
Cash flows provided by (used in) investing
activities, Canadian GAAP		(15,759,228	)		1,597,358			(897,032	)		851,010			(6,138,230	)
Acquisition of mineral property interests		5,392,987			(81,488	)		107,334			(59,527	)		227,346
Deferred exploration costs		7,978,887			253,732			1,136,660			699,924			1,538,936
Acquisition of temporary investments		(70,467	)		(1,998,182	)		(572,080	)		(1,921,659	)		4,055,208
Cash flows used in investing activities,		(2,457,821	)		(228,580	)		(225,118	)		(430,252	)		(316,740	)
United States GAAP
Increase (decrease) in cash and cash equivalents
during the year		11,988,005			1,472,629			(635,240	)		590,120			(179,505	)
Cash and cash equivalents, beginning of year					10,515,376			738,194			11,397,885			282,459
Cash and cash equivalents, end of year	$	11,988,005		$	11,988,005		$	102,954		$	11,988,005		$	102,954

White Knight Resources Ltd.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited –prepared by management
(Expressed in Canadian Dollars)
For the period ended December 31, 2006	Page 9

11.	DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d…)
	Mineral property interests and deferred exploration costs
	In accordance with EITF 04-02, the Company classifies the costs of acquiring its mineral interests as tangible assets resulting in no difference between Canadian and U.S GAAP. Under U.S. GAAP exploration costs on mineral properties, other than acquisition costs, prior to the establishment of proven or probable reserves are expensed as incurred. Under Canadian GAAP these costs may be deferred.
	Under US GAAP, the Company performs evaluations of its investment in mineral properties to assess the recoverability and the residual value of its investments in these assets. All mineral properties are reviewed for impairment whenever events or circumstances change which indicates the carrying amount of an asset may not be recoverable, utilizing established guidelines based on undiscounted future net cash flows from the asset or upon the determination that certain exploration properties do not have sufficient potential for economic mineralization.
	Asset retirement obligations
	The Company adopted new accounting and disclosure standards under Canadian GAAP (Note 2) since the 2005 fiscal year. Accordingly there were no differences between Canadian GAAP and United States GAAP as at December 31, 2006 and 2005.
	Under Canadian GAAP, the Company was not required to record asset retirement obligations as at December 31, 2005. The Company determined there were no asset retirement obligations as at December 31, 2005.
	Temporary Investments
	Under Canadian GAAP, temporary investments are carried at the lower of aggregate cost or current market value, with any unrealized gain or loss included in the statement of operations. Long-term investments are carried on the cost or equity basis and are only written down when there is evidence of a decline in value that is other than temporary.
	Under United States GAAP, SFAS 115 requires that certain debt and equity investments must be classified into available-for-sale or trading securities and stated at fair market values. Any unrealized holding gains or losses are reported as a separate component of shareholders’ equity until realized for available-for-sale securities, and included in earnings for trading securities. For United States GAAP purposes, the Company's investment in debt securities Canadian GAAP or United States GAAP as these debt securities have been written down to their fair market value, with an unrealized loss of $31,632 included in the consolidated statement of operations. For the period ending December 31, 2006, an excess holding gain of $Nil (June, 2006 - $48,282) would be recognized under United States GAAP.
	New accounting pronouncements
	In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154,“Accounting Changes and Error Corrections – A Replacement of APB Opinion No. 20 and SFAS No. 3”. SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company’s results of operations or financial position.

White Knight Resources Ltd.

(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited –prepared by management

(Expressed in Canadian Dollars)

For the period ended December 31, 2006

Page 10

11.	DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (cont’d…)
	The FASB has also issued SFAS No. 155“Accounting for Certain Hybrid Financial Instruments” and SFAS No. 156“Accounting for Servicing of Financial Assets”,but they will not have any relationship to the operations of the Company. Therefore a description and its impact for each on the Company’s operations and financial position have not been disclosed.
	The adoption of these new pronouncements is not expected to have a material effect on the Company's consolidated financial position or results of operations.
12.	SUBSEQUENT EVENTS
	In February 2007, the Company received a formal offer to purchase all of the issued shares of the Company from U.S. Gold Corporation and a wholly-owned subsidiary of U.S. Gold Corporation.

JOHN M. LEASK, P.Eng	GORDON P. LEASK, P.Eng.
Chairman, President & CEO	Director
Vancouver, BC, Canada	Vancouver, BC, Canada
BRIAN D. EDGAR	MEGAN M. CAMERON-JONES
Director	Director, Secretary & CFO
Vancouver, BC, Canada	Vancouver, BC, Canada
ROBERT G. CUFFNEY	KAREEN McKINNON
Vice-President, Exploration	Vice-President, Corporate Development
Reno, Nevada, USA	Vancouver, BC, Canada
HEAD OFFICE	NEVADA OFFICE
Suite 922, 510 West Hastings Street	Suite 140, 121 Woodland Avenue
Vancouver, BC, Canada	Reno, Nevada, USA
V6B 1L8	89523
Tel: (604) 681-4462	Tel: (775) 787-3444
Fax: (604) 681-0180	Fax: (775) 787-3447
E-mail: info@whiteknightres.com
Website: www.whiteknightres.com
LEGAL COUNSEL	TRANSFER AGENT
Axium Law Corporation	Pacific Corporate Trust Company
Vancouver, BC, Canada	Vancouver, BC Canada
REGISTERED OFFICE	AUDITOR
Suite 3350	Davidson & Company
1055 Dunsmuir Street	Chartered Accountants
Vancouver, BC, Canada V7X 1L2	Vancouver, BC, Canada
CAPITALIZATION	FINANCIAL INSTITUTION
Authorized:	Bank of Montreal
Unlimited common shares	Vancouver, BC, Canada
Issued as at February 15, 2007: 59,434,972

STOCK EXCHANGE
Listed: TSX Venture Exchange
Symbol: WKR-V