- Quarterly Report (10-Q)

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Mark One

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended March 31 2011

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File No. 333-138332

TRILLIANT EXPLORATION CORPORATION (Name of small business issuer in its charter)

Nevada (State or other jurisdiction of incorporation or organization)	20-0936313 (I.R.S. Employer Identification No.)

545 Eighth Avenue, Suite 401, New York, New York 10019 (Address of principal executive offices)

(212) 560-5195 (Issuer’s telephone number)
(Previous address if changed from last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☑

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the most practicable date:

Class	Outstanding as of March 31, 2011
Common Stock, $0.001	620,774

TRILLIANT EXPLORATION CORPORATION

Form 10-Q/A

		Page
PART I-FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 2011 (Unaudited) and December 31, 2010		3
Condensed Consolidated Statements of Operations for the Three months Ended March 31, 2011 and 2010 (Unaudited)		4
Condensed Consolidated Statements of Cash Flows for the Three months Ended March 31, 2011 and 2010 (Unaudited)		5-6
Notes to Condensed Consolidated Financial Statements (Unaudited)		7-15
Forward Looking Statement		18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		18-20
Item 3. Quantitative and Qualitative Disclosures About Market Risk		21
Item 4. Controls and Procedures		22
PART II - OTHER INFORMATION
Item 1. Legal Proceedings		23
Item 1A. Risk Factors		23
Item 2. Unregistered Sales of Equity Securities		23
Item 3. Defaults upon Senior Securities		23
Item 4. Removed and Reserved		23

Item 5. Other Information		23
Item 6. Exhibits		23
Signatures		23

PART I

ITEM 1. FINANCIAL STATEMENTS

TRILLIANT EXPLORATION CORPORATION

Condensed Consolidated Balance Sheets

	March 31	December 31,
	2011	2010
	(unaudited)
ASSETS
Current Assets
Cash		$ 11,450
Prepaid expenses (Note 6)	-
Total Current Assets	-	11,450

Other Assets
Bond issue costs, net - related party (Note 4C)	32,618	45,605

Deposits	-
Total Other Assets
TOTAL ASSETS	$ 32,618	$ 57,055

LIABILITIES AND STOCKHOLDERS' DEFICIT LIABILITIES
Current Liabilities
Accounts payable	$ 245,735	$ 250,612
Convertible notes payable-related party, current (Note 4A)	565,000	665,000
Accrued interest, convertible notes payable-related party (Note 4A)	88,398	89,098
Bonds payable, convertible and secured-related party net of debt discount (Note 4C)	1,610,407	1,610,407
Accrued interest, convertible bonds payable-related party (Note 4C)	215,262	149,379
Short-term notes payable-related party (Note 4B)	32,495	32,495
Total Current Liabilities	2,757,297	2,796,991

Long-term Liabilities
Derivative liability	12,700,504	12,005,649
Total Long-term Liabilities	12,700,504	12,005,649
Total Liabilities	15,457,801	14,802,640

TEMPORARY EQUITY (Note 5)
Preferred stock, par value $.001, 200,000,000 shares authorized,
12,563,500 and 10,200,000 issued and outstanding	3,757,786	3,231,121

PERMANENT EQUITY
STOCKHOLDERS' DEFICIT (Note 5)
Common stock, par value $.001, 1,000,000,000
shares authorized, 643,771 & 310,439 issued, and 620,771 &
287,438 outstanding respectively	643	310
Additional paid-in capital	1,667,908	972,426
Accumulated deficit during the pre-exploration stage	(3,321,292)	(3,321,292)
Deficit accumulated	(7,330,228)	(5,428,150.00)
Total Stockholder's equity (deficit) (before treasury stock)	(8,982,969)	(7,776,706)
Treasury Stock (23,000 shares @ $443 per share) (Note 5)	(10,200,000)	(10,200,000)

Total Stockholders' (Deficit)	(19,182,969)	(17,976,706)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 32,618	$ 57,055

See accompanying notes to unaudited condensed consolidated financial statements.

3

TRILLIANT EXPLORATION CORPORATION

Condensed Consolidated Statements of Operations (unaudited)

	Three months ended
	March 31,
	2011	2010


Revenues	$ -	$ -

Operating Expenses
General and administrative expenses	6,573	64,565
Total Operating Expenses	6,573	64,565
Net Loss from Operations	(6,573)	(64,565)

Other Income (Expense)
Interest income	-	-
Loss on Settlement of Debt	(583,333.00)
(Loss)/ gain in change in fair value
of derivative liability	(694,855)	(1,401,688)
Amortization of beneficial conversion feature	(526,665)	(604,777)
Interest expense	(90,652)	(107,737)
Total Other Income (Expense)	(1,895,505)	(2,114,202)

Net Loss Applicaple to Common Shares	(1,902,078)	(2,178,767)
Provision for income taxes	-	-
NET LOSS FROM DISCONTINUED
OPERATIONS	-	(140,839)

Net Gain (Loss) Applicable to Common Shares	$ (1,902,078)	$ (2,319,606)

BASIC AND DILUTED LOSS PER SHARE
Net loss per share, continuing operations	$ (3.53)	$ (7.02)
Weighted Average Number of Common Shares
Outstanding ( Basic and Diluted)	539,292	310,438

See accompanying notes to unaudited condensed consolidated financial statements.

4

TRILLIANT EXPLORATION CORPORATION

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three Months ended
	March 31,
	2011	2010
		(restated -
		Note 8)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	($1,902,078)	($2,178,767)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation	-
Amortization of bond issue costs - related party	12,987	12,987
Amortization of debt discount	526,665	604,777
Change in Fair value of derivative liability	694,855	1,401,688
Loss on Settlement of Debt	583,333


Changes in operating assets and liabilities:
Prepaid expenses		17,790
Deposits		2,220
Accounts payable	(4,877)	44,555
Accrued interest, convertible bonds payable - related party	(11,782)	13,300
Accrued interest, convertible notes payable - related party	65,883	81,450
	-

Net Cash (Used In) Operating Activities	(11,450)	-
CASH FLOWS FROM INVESTING ACTIVITIES
	-
	-
	-
Net Cash Used In Investing Activities	-

See accompanying notes to unaudited condensed consolidated financial statements.

5

TRILLIANT EXPLORATION CORPORATION

Condensed Consolidated Statements of Cash Flows (unaudited) (continued)

	Three months ended
	March 31,
	2011	2010

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible bonds payable - related party	(100,000)
Net proceeds from sale of common stock	112,482
Net Cash Provided By Financing Activities	(12,482)
NET INCREASE (DECREASE) IN CASH	(11,450)
CASH AT BEGINNING OF PERIOD	11,450
CASH AT END OF PERIOD	-

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$ -	$ -
Cash paid for income taxes	$ -	$ -
SCHEDULE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
Issuance of 10,200,000 shares of preferred stock in exchange
for 19,667 shares of treasury stock	$ -
Net assets acquired in acquisition of MuluncayGoldCorp	$ -
Issuance of common stock for stock subscriptions
receivable	$ -
1,667 shares of common stock issued for deposit
on a business acquisition	$ -
Issuance of Preferred Stock In sttelemt of Debt and alcoved interest

See accompanying notes to unaudited condensed consolidated financial statements.

6

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

Trilliant Exploration Corporation, (the “Company”) was incorporated as Project Development Pacific, Inc. on December 29, 2003, under the laws of the State of Nevada. The business purpose of the Company was originally to assist Canadian citizens to access health care services from private providers. On November 26, 2007, the Company changed its name to Trilliant Exploration Corporation, with a purpose to acquire and develop mineral properties. The Company has elected a fiscal year end of December 31.

On March 30, 2009 (Date of Acquisition), Trilliant Exploration Corporation (the Parent) acquired a 100% interest in MuluncayGoldCorp (a Subsidiary) (Muluncay). The transaction was accounted for as a purchase pursuant to ASC Topic No. 805.

On June 29, 2009 (Date of Formation), the Company established a wholly-owned Trilliant Diamonds Limited (a Subsidiary) (Trilliant Diamonds), a private limited England and Wales Company, to facilitate the Company’s diamond exploration. Trilliant Diamonds Limited was sold on August 26, 2010 and has not been a subsidiary since this time.

On July 1, 2009 the Company acquired 799 of 800 shares of AyapampaGold S.A (AYA) (a Subsidiary) at $1 per share for a purchase price of $799. AYA was formed in mid-2007 as a shell and has been inactive since inception.

On February 11, 2010, Minera Del Pacifico (the seller of MuluncayGoldCorp) exercised its rights retroactive to December 31, 2009 to terminate the purchase of MuluncayGoldCorp. The activity of MuluncayGoldCorp from the Date of Acquisition through December 31, 2009 is reported as discontinued operations pursuant to ASC Topic 205.

The accompanying unaudited condensed consolidated financial statements include the operations of the Subsidiaries’ activity from the dates of Acquisition and Formation through this quarter end. Intercompany transactions have been eliminated upon consolidation. The Parent and Subsidiaries are collectively referred to as “the Company.”

The unaudited interim financial statements of Trilliant Exploration Corporation were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all adjustments (including normal recurring accruals) which, in the opinion of management, are considered necessary for the fair presentation of the results for the periods presented. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Company’s most recent Annual Report on Form 10-K.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Pre-Exploration Stage Company

The Company is considered to be in the pre-exploration stage as defined in ASC 915 “ Accounting and Reporting by Development Stage Enterprises ” as interpreted by the Securities and Exchange Commission for mining companies in Industry Guide 7. The Company is devoting substantially all of its efforts to the execution of its business plan.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates that may change in the near future include value of goodwill, impairment of long-lived assets acquired, and value of investments.

Cash and Cash Equivalents

Cash and cash equivalents consists principally of currency on hand, demand deposits at commercial banks, and liquid investment funds having a maturity of three months or less at the time of purchase. The Company had $11,606 and $0 in cash and cash equivalents as of September 30, 2010 and December 31, 2009, respectively.

7

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Revenue Recognition

The Company will follow the guidance of ASC Topic 605, formerly, SAB 104 for revenue recognition. In general, the Company will record revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenues from services are recognized when the services are performed, evidence of an arrangement exists, the fee is fixed and determinable and collectability is probable. In circumstances when these criteria are not met, revenue recognition is deferred until resolution occurs.

Mineral Acquisition and Exploration Costs

Mineral property interests include optioned and acquired mineral development and exploration stage properties. The amount capitalized related to a mineral property interest represents its fair value at the time it was optioned or acquired, either as an individual asset or as a part of a business combination. The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Exploration costs are expensed as incurred and development costs are capitalized if proven and probable reserves exist and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production are capitalized. Costs incurred to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates, at least quarterly, the carrying value of capitalized mineral interests costs and related property, plant and equipment costs, if any, to determine if these costs are in excess of their net realizable value and if a permanent impairment needs to be recorded. The periodic evaluation of carrying value of capitalized costs and any related property, plant and equipment costs are based upon expected future cash flows and/or estimated salvage value.

Property, Plant, and Equipment

Property and equipment are stated at cost. Depreciation and amortization are determined using the straight-line method over estimated useful lives of the assets. All property, plant, and equipment were disposed of and any gains and losses on the disposal are included in discontinued operations as disclosed in Note 10. As of September 30, 2010, the Company held no property, plant or equipment.

Net Income or (Loss) Per Share of Common Stock

Basic and diluted loss per common share is based upon the weighted average number of common shares outstanding during the period computed under the provisions of Accounting Standards Codification subtopic 260-10, Earnings per Share (“ASC 260-10”). All primary dilutive common shares have been excluded since the inclusion would be anti-dilutive. Such shares consist of the following:

	3/31/2011	3/31/2010
Common shares outstanding (Basic)	620,771	287,438
Conversion of convertible debt	62,015	30,505
Conversion of convertible notes	675,154	219,688
Conversion of convertible preferred shares	10,204,272	2,830,503
Conversion of warrants	31,477,	15,010
Common shares outstanding (Diluted)	11,593,689,	3,383,144

8

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Goodwill and Other Intangibles

As of March 31, 2011, the Company held no Goodwill. The Company possesses no other intangible assets.

Recently Issued Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective accounting standards, if adopted, will have a material effect on our financial statements

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns are recognized in the consolidated financial statements if such positions are more likely than not of being sustained.

In accordance with 740-10, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting this standard, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

Derivative Liabilities

The Company accounts for its embedded conversion features in its convertible debentures in accordance ASC 815-10, "Derivatives and Hedging", which requires a periodic valuation of their fair value and a corresponding recognition of liabilities associated with such derivatives, and ASC 815-40, “Contracts in Entity’s Own Equity”. The recognition of derivative liabilities related to the issuance of convertible debt is applied first to the proceeds of such issuance as a debt discount, at the date of issuance, and the excess of derivative liabilities over the proceeds is recognized as “Loss on Valuation of Derivative” in other expense in the accompanying financial statements. Any subsequent increase or decrease in the fair value of the derivative liabilities is recognized as “Other expense” or “Other income”, respectively.

Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity ’ s own Equity ( “ ASC 815-40 ” ) became effective for the Company. The Company ’ s Convertible Preferred Stock and Convertible debt has certain provisions that require the Company to change conversion price of the Convertible debt and Convertible Preferred Stock based on the discounted market value. Upon the effective date, the provisions of ASC 815-40 required a reclassification to liability based on the reset feature of the agreements. Therefore, in accordance with ASC 815-40, the Company determined the fair value of the initial reset provision on preferred stock and convertible debt using the Black-Scholes formula assuming no dividends, a risk-free interest rate of 0.68%-0.85%, expected volatility of 155.49%-214.23%, and expected life of 1 and 5 years. The net value of the reset provision at the date of adoption of ASC 815-40 was recorded as a derivative liability on the balance sheet and a reduction to convertible redeemable preferred stock and convertible debt. Changes in fair value are recorded as non-operating, non-cash income or expense at each reporting date.

The fair value of the preferred stock and convertible debt at September 31, 2010 was determined using the Black Scholes Option Pricing Model with the following assumptions:

Dividend yield: 0%

Volatility 254.30%

Risk free rate: 0.70%

The change in fair value of the convertible preferred stock and convertible debt derivative liability resulted in a current year non-operating loss to operations of $694,855.

Fair Value of Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and short-term borrowings, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value

Reclassification

Certain reclassifications have been made to conform the prior period data to the current presentation. These reclassifications had no effect on reported net loss.

Currency Risk and Foreign Currency Translations

The functional currency of the Company is the United States Dollar (USD). In accordance with ASC Topic No. 830, realized gains or losses on expenses incurred in denominations other than USD are recognized in earnings on the transaction date. At such time as there are any foreign denominated assets or liabilities, the Company will report changes in valuation in a Statement of Other Comprehensive Income or (Loss) due to the changes in cumulative adjustments from foreign currency translation.

9

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

NOTE 3 - PROVISION FOR INCOME TAXES

The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income regardless of when reported for tax purposes. Deferred taxes provided for under ASC Topic No. 740 give effect to the temporary differences which may arise from differences in the bases of fixed assets, depreciation methods, and allowances based on the income taxes expected to be payable in future years. Deferred tax assets arising as a result of net operating loss carry-forwards and other temporary differences have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carry-forwards of $10,651,520, generated since inception through March 31 31, 2011, will begin to expire in 2031. Accordingly, deferred tax assets of approximately $3,151,400 were completely offset by the valuation allowance, which increased by $665,727and $762,568 during the three months endingMarch 31, 2011 and 2010, respectively, based on the U.S. Statutory rate of 35%.

NOTE 4- RELATED PARTY TRANSACTIONS

A – Convertible Notes Payable

The Company has entered into multiple convertible notes payable agreements with an investment firm that is also a minority stockholder of the Company. Each note carries a separately dated promissory note that bears interest of 8% and is payable on or before August 31, 2010, with each funding due one year from original date of receipt. Principal and interest are convertible at the option of the note-holder into shares of the Company’s common stock at the rate of 80% of the average of the five daily volume weighted average price preceding the conversion date. Several Notes are in default and status of default is indicated in the following table. The Notes carry no penalty or change in interest rate for default. Accrued interest and interest expense on the convertible notes payable as of and for the nine months ended September 30, 2010 totaled $75,251 and $39,354, respectively, and accrued interest at December 31, 2009 totaled $35,897. Due to the contingent nature of the conversion price, the company accounted for beneficial conversion feature and derivative liability on the note. The convertible promissory notes with the investment firm totaled $665,000 at September 30, 2010 and December 31, 2009 and are summarized as follows:

Convertible Notes										Interest expense Nine month
	Issue date	Maturity	Principal			Interest Rate			Date of Default	September 30, 2010		September 30, 2009
(A)	12/31/2008	1/5/2010		$90,000			8.00	%	1/5/2010		5,327		9,020
(A)	1/16/2009	1/5/2010		100,000			8.00	%	1/5/2010		5,917		9,649
(A)	1/23/2009	1/5/2010		50,000			8.00	%	1/5/2010		2,960		4,748
(A)	2/2/2009	1/5/2010		25,000			8.00	%	1/5/2010		1479		2,330
(A)	3/9/2009	1/5/2010		10,000			8.00	%	1/5/2010		593		871
(B)	4/8/2009	4/8/2010		50,000			8.00	%	4/8/2010		2,960		3,800
(C)	4/27/2009	4/27/2010		75,000			8.00	%	-		-		533
(D)	4/27/2009	4/27/2010		(75,000	)		8.00	%	-		-		-
	6/23/2009	6/23/2010		25,000			8.00	%	6/23/2010		1479		1,539
	7/1/2009	7/1/2010		100,000			8.00	%	7/2/2010		5,917		6,000
	7/6/2009	7/6/2010		20,000			8.00	%	7/7/2010		1183		1,778
	8/26/2009	8/31/2010		195,000			8.00	%	-		11,539		8,951
		Totals		$665,000							$39,354		$48,619

_{(A), Amounts borrowed were part
of a master note agreement totaling $195,000} _{,(B) The company borrowed, 50,000 on
April 8, 2010.}

_{(C) and (D), The Company borrowed $75,000 on April 27, 2009,
and subsequently repaid this note on May 29, 2009}

10

January 5, 2009 Note:

From January 5, 2009 to March 9, 2009, the Company issued $275,000 Convertible Notes that matured on January 5, 2010. The note bears interest at a rate of 8% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.

The Company identified embedded derivatives related to the Convertible Note entered into on March 9, 2009 (completion of funding as per agreement). These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $218,585 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:	-0-	%
Volatility	181.03	%
Risk free rate:	0.82	%

The initial fair value of the embedded debt derivative of $125,165 was allocated as a debt discount with the remainder ($93,420) charged to current period operations as interest expense.

For the nine month ended September 30, 2010 and 2009, the Company amortized $2,072 and $84,963 to current period operations as amortization of beneficial conversion feature.

The fair value of the described embedded derivative of $137,304 and $70,253 at September 30, 2010 and December 31, 2009, respectively was determined using the Black Scholes Model with the following assumptions:

2010 2009

Dividend yield:	-0-%	-0-	%
Volatility	166.87%	129.95	%
Risk free rate:	0.48%	0.87	%

For the nine months ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating loss of $67,051 and a gain of $102,276, respectively.

April 8, 2009 Note :

From April 8, 2009, the Company issued a $50,000 Convertible Note that matured on April 8, 2010. The note bears interest at a rate of 8% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.

The Company identified embedded derivatives related to the Convertible Note entered into on April 8, 2009. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $42,239 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:	-0-	%
Volatility	181.03	%
Risk free rate:	0.82	%

The initial fair value of the embedded debt derivative of $20,261 was allocated as a debt discount with the remainder ($21,978) charged to that period of operations as interest expense.

For the nine month ended September 30, 2010 and 2009, the Company amortized $2,348 and $11,741 to current period operations as amortization of beneficial conversion feature.

The fair value of the described embedded derivative of $24,964 and $21,911 at September 30, 2010 and December 31, 2009, respectively was determined using the Black Scholes Model with the following assumptions:

2010 2009

Dividend yield:	-0-%	-0-	%
Volatility	166.87%	129.95	%
Risk free rate:	0.48%	0.87	%

For the nine month ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating loss (gain) of $3,053 and $(16,024), respectively.

June 23, 2009 Note :

From June 23, 2009, the Company issued a $25,000 Convertible Note that matured on June 23, 2010. The note bears interest at a rate of 8% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.

The Company identified embedded derivatives related to the Convertible Note entered into on June 23, 2009. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $19,148 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:	-0-	%
Volatility	155.49	%
Risk free rate:	0.82	%

The initial fair value of the embedded debt derivative of $12,102 was allocated as a debt discount with the remainder ($7,046) charged to that period of operations as interest expense.

For the nine month ended September 30, 2010 and 2009, the Company amortized $4,449 and $3,967 to current period operations as amortization of beneficial conversion feature.

The fair value of the described embedded derivative of $12,482 and $13,186 at September 30, 2010 and December 31, 2009, respectively was determined using the Black Scholes Model with the following assumptions:

2010 2009

Dividend yield:	-0-%	-0-	%
Volatility	166.87%	129.95	%
Risk free rate:	0.48%	0.87	%

For the nine month ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating gain of $705 and $4,458, respectively.

July 2009 and August 2009 Note :

From July 2009 to August, 2009, the Company issued a three note totaling to $315,000 Convertible Note that matured on July 1, 2010, July 6, 2010 and August 31, 2010. The note bears interest at a rate of 8% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 80% of the average rate of five preceding the closing date prior to notice of conversion.

The Company identified embedded derivatives related to the Convertible Note entered into on date of Note. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Note, the Company determined a fair value of $241,266 of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:

Dividend yield:	-0-	%
Volatility	155.49	%
Risk free rate:	0.82	%

The initial fair value of the embedded debt derivative of $152,484 was allocated as a debt discount with the remainder ($88,782) charged to that period of operations as interest expense.

For the nine month ended September 30, 2010 and 2009, the Company amortized $88,360 and $17,642 to current period operations as amortization of beneficial conversion feature.

On January 22, 2011, the $100,000 Convertible Note was assigned to Williams at the $0.001 of conversion price. The Company recorded $582,973 as loss on change in term of note. On the same date the Company issued 333,333 no of Common stock against settlement of this Note of $100,000 and accrued interest of $12,482.

The fair value of the described embedded derivative of $157,276 and $184,765 at September 30, 2010 and December 31, 2009, respectively was determined using the Black Scholes Model with the following assumptions:

2010 2009

Dividend yield:	-0-%	-0-	%
Volatility	166.87%	129.95	%
Risk free rate:	0.48%	0.87	%

For the nine month ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating gain of $27,490 and $41,942, respectively.

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months and Nine months Ended September 30, 2010

NOTE 4- RELATED PARTY TRANSACTIONS (CONT’D)

B – Short-Term Notes Payable

The Company has borrowed funds from stockholders for working capital purposes from time to time. The loans are non-interest bearing, payable on demand and, consequently, reported as current liabilities. The Company has received $39,514 in advances since inception and made repayments of $7,019 in cash, resulting in a payable balance of $32,495 as of September 30, 2010 and December 31, 2009. The Company also has related party payables of $77,942 and $24,589 as of September 30, 2010 and December 31, 2009, respectively, for reimbursable expenses incurred in the normal course of business.

C – Bonds Payable, Convertible & Secured

The Company has entered into multiple convertible bond agreements with an investment firm that is also a minority stockholder of the Company.:

The convertible bonds were listed below:

	Issue date	Maturity	Principal	Interest rate	Default rate	Date of Default
(A)	10/15/2008	10/15/2010	$1,058,407*	9.00%	18.00%	1/15/2010
(B)	4/30/2009	10/31/2010	300,000	9.00%	18.00%	1/15/2010
(C)	10/12/2009	1/12/2010	252,000	9.00%	9.00%	1/13/2010
(D)	11/3/2009	2/3/2010	-*	9.00%	9.00%	2/3/2010
	Totals		$1,610,407

Less: Debt Discount 7,703

Convertible Bond- Current $1,602,704

*On August 23, 2010, the Company repaid $241,593 in principal on (A) and $210,000 in principal on (D).

11

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

October 2008 Bond :

In October 15, 2008, the Company issued a $1,300,000 of Convertible Bond that matured on October 15, 2010. The note bears interest at a rate of 9% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 85% of the average rate of five preceding the closing date prior to notice of conversion, provided that Holder shall not receive more than 9.99% of the issued and outstanding Common Stock. The debenture was recorded net of a beneficial conversion feature of $229,412, based on the relative fair value of the conversion feature.

The beneficial conversion feature is being amortized over the term of the debenture. During the nine month ended September 30, 2010 and 2009, the Company recorded amortization of the beneficial conversion feature related to this bond of $85,794 and $85,794, respectively.

April 2009 Bond :

In April 30, 2009, the Company issued a $300,000 of Convertible Bond that matured on October 31, 2010. The note bears interest at a rate of 9% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 85% of the average rate of five preceding the closing date prior to notice of conversion, provided that Holder shall not receive more than 9.99% of the issued and outstanding Common Stock. The debenture was recorded net of a beneficial conversion feature of $52,941, based on the relative fair value of the conversion feature.

The beneficial conversion feature is being amortized over the term of the debenture. During the year ended December 31, 2011 and 2010, the Company recorded amortization of the beneficial conversion feature related to this bond of $0 and $29,315, respectively.

October 2009 Bond :

In October 12, 2009, the Company issued a $252,000 of Convertible Bond that matured on January 12, 2010. The note bears interest at a rate of 9% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 85% of the average rate of five preceding the closing date prior to notice of conversion, provided that Holder shall not receive more than 9.99% of the issued and outstanding Common Stock. The debenture was recorded net of a beneficial conversion feature of $44,471, based on the relative fair value of the conversion feature.

The beneficial conversion feature is being amortized over the term of the debenture. During the nine month ended September 30, 2010 and 2009, the Company recorded amortization of the beneficial conversion feature related to this bond of $5,801 and $0, respectively.

November 2009 Bond :

In November 3, 2009, the Company issued a $252,000 of Convertible Bond that matured on February 03, 2010. The note bears interest at a rate of 9% and is convertible into the Company’s common stock at any time at the holder’s option, at the conversion rate of 85% of the average rate of five preceding the closing date prior to notice of conversion, provided that Holder shall not receive more than 9.99% of the issued and outstanding Common Stock. The debenture was recorded net of a beneficial conversion feature of $37,059, based on the relative fair value of the conversion feature.

The beneficial conversion feature is being amortized over the term of the debenture. During the nine month ended September 30, 2010 and 2009, the Company recorded amortization of the beneficial conversion feature related to this bond of $13,695 and $0, respectively

On August 23, 2010, the Company issued 2,363,500 shares of Preferred stock with Trafalgar as part of a transaction that paid off $193,599 in interest and $451,593 in principal on the Company’s convertible bonds for total consideration of $645,192.

The Company incurred bond issuance expenses which are being amortized over the period of bond. The amortization of issuance expenses were $12,986 and $12,986 for the nine month ended March 31, 2011 and 2010, respectively.

Interest expenses for the three months ended March 31, 2011 and 2010 on this Convertible Bond were $65,883 and $81,450, respectively.

NOTE 5 – STOCKHOLDERS’ DEFICIT

Stock Splits

On November 9, 2007, the Company affected a 2-for-1 forward split on its common stock. On November 14, 2008, the Company affected another 2-for-1 forward stock split. Par value remained at $.001, and both splits have been retroactively applied to the earliest period presented in the accompanying financial statements.

On January 26, 2011, the Board of Directors of Trilliant Exploration Corporation, a Nevada corporation pursuant to unanimous written consent resolutions authorized and approved a reverse stock split of one for every three hundred (1:300) of our total issued and outstanding shares of common stock was effectuated on April 8, 2011. All references in the accompanying consolidated financial statements and notes thereto have been retroactively restated to reflect the above change in the ordinary share structure.

Preferred Stock and Treasury Stock

The Company is authorized to issue 200,000,000 shares of convertible Preferred stock of the Company. As of September 30, 2010 and December 31, 2009, the Company had 12,563,500 and 10,200,000 preferred shares issued and outstanding, respectively.

Preferred stockholders do not receive interest or dividends separately from common stock shareholders. Preferred Stock holder shall participate in dividends when and if declared in the same proportion as common stock shareholders. Preferred stock is convertible into common shares at the lowest volume weighted average price of the common shares in the five days preceding conversion.

In accordance with Accounting Standards Codification subtopic 470-20, Debt, Debt with Conversions and Other Options (“ASC 470-20”), the Company recognized an imbedded beneficial conversion feature present in the Convertible Preferred Stock. The Company allocated a portion of the value of share cancelled to Preferred stock. The fair value of the imbedded beneficial conversion feature was determined using the Black-Scholes Option Pricing Model which approximates the fair value measured using the Black-Scholes Model with the following assumptions: Dividend yield: $-0-; Volatility: 214.38% and risk free rate: 0.85%.

The FASB finalized ACS 815, “Determining Whether an Instrument (or Embedded Feature) is indexed to an Entity’s Own Stock.” Under ASC 815, instruments which do not have fixed settlement provisions are deemed to be derivative instruments. In accordance with ASC 470-20, the Company has classified the Preferred Stock outside of permanent equity. The Company has determined that it needs to account for these imbedded beneficial conversion features, issued to holder in 2009 for its Convertible Preferred Stock, as derivative liabilities, and apply the provisions of ASC 815. The instruments have a ratchet provision (that adjusts the exercise price according to market rate ie at 85% of the market rate). As a result, the ratchet provision has been accounted for as derivative liabilities, in accordance with ASC 815. ASC 815, “Accounting for Derivative Instruments and Hedging Activities” (“ASC 815”) requires that the fair value of these liabilities be re-measured at the end of every reporting period with the change in fair value reported in the consolidated statement of operations

For 10,200,000 Preferred Stock issuance

On December 31, 2009, the Company issued to Trafalgar Capital Specialized Investment Fund FIS (“Trafalgar”) (a significant stockholder of the Company), 10,200,000 shares of Preferred Stock (par value $.001), in exchange for 23,000 shares of the Company’s own common stock previously held by Trafalgar. The 19,667 common stock were acquired in the year 2009 and 3,333 common stock in the year 2010 at $443 per share and the preferred stock was issued at $1.00 per share. The transaction was recorded using the Cost Method, resulting in treasury stock of $10,200,000 and an increase to Preferred Stock value of $10,200,000.

The fair value of the embedded conversion features were measured using the Black-Scholes option pricing model as of the date of issuance and as of September 30, 2010 and December 31, 2009:

							Date of
	2010			2009			Issuance

Imbedded Beneficial Conversion Feature:
Risk-free rate		0.48	%		0.87	%		0.85	%
Annual rate of dividends		0			0			0
Volatility		166.87	%		129.95	%		214.23	%
Weighted Average life (years)		3.75			4.5			5.0

Fair Value	$	9,127,313		$	8,518,105		$	10,034,407

The risk-free interest rate was based on rates established by the Federal Reserve. The Company based expected volatility on the historical volatility for its common stock. The expected life of the embedded beneficial conversion features was based on their full term. The expected dividend yield was based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the future.

The net value of the reset provision at the date of issuance was recorded as a derivative liability in the amount of $10,034,407 and debited to beneficial conversion feature which was deducted from the face value of the preferred stock, since the preferred stock is a classified as temporary equity. The company is amortizing beneficial conversion feature over the period of 5 years as a charge to operation. During the nine months ended September 30, 2010 and 2009, $1,006,190 and $505,844 was charged to operation, respectively.

As of the date of the financial statements, the Company believes an event under the contract that would create an obligation to settle in cash or other current assets is remote and has classified the obligation as a long term liability.

For the nine month ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the reset derivative liability to market resulting in non-cash, non-operating loss of $609,208 and gain of $1,627,910, respectively.

For 2,363,500 Preferred Stock

On August 23, 2010, the Company issued 2,363,500 shares of preferred stock with Trafalgar as part of a transaction that paid off $193,599 in interest and $451,593 in principal on the Company’s convertible bonds for total consideration of $645,192.

The fair value of the embedded conversion features were measured using the Black-Scholes option pricing model as of the date of issuance and as of September 30, 2010:

				Date of
	2010			Issuance

Imbedded Beneficial Conversion Feature:
Risk-free rate		0.48	%		0.68	%
Annual rate of dividends		0			0
Volatility		166.87	%		180.22	%
Weighted Average life (years)		4.90			5.0

Fair Value	$	2,212,157		$	2,261,584

The risk-free interest rate was based on rates established by the Federal Reserve. The Company based expected volatility on the historical volatility for its common stock. The expected life of the embedded beneficial conversion features was based on their full term. The expected dividend yield was based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the future.

The net value of the reset provision at the date of issuance was recorded as a derivative liability in the amount of $645,192 (maximum limit to value of preferred stock) and debited to beneficial conversion feature which was deducted from the face value of the preferred stock, since the preferred stock is a classified as temporary equity. The company is amortizing beneficial conversion feature over the period of 5 years as a charge to operation. During the nine month ended September 30, 2010 and 2009, $13,434 and $0 was charged to operation, respectively.

As of the date of the financial statements, the Company believes an event under the contract that would create an obligation to settle in cash or other current assets is remote and has classified the obligation as a long term liability.

For the nine month ended September 30, 2010 and 2009, the Company adjusted the recorded fair value of the reset derivative liability to market resulting in non-cash, non-operating loss of $1,566,965 and $0, respectively.

Common Stock

The Company’s common stock is thinly traded with a limited market (amounts are adjusted by the reverse stock split):

	Common shares issued	Common shares outstanding
March 31, 2011	643,771	620,771
December 31, 2010	310,438	287,438

12

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months March 31, 2011

NOTE 5 – STOCKHOLDERS’ DEFICIT (CONT’D)

13

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months Ended March 31, 2011

NOTE 5 – STOCKHOLDERS’ DEFICIT (CONT’D)

On August 23, 2010, the company cancelled 3,333 shares of common stock as part of issuance of 10,200,000 preferred stock, refer above preferred stock.

NOTE 6 - OTHER MATERIAL CONTRACTS

In June 2009, the Company acquired a one year insurance policy with total premium of $20,760. As of March 31, 2011, total payments of $20,760 were made and $20,760 of the total premium has been amortized, resulting in a balance of $-0- as of March 31, 2011.

In September 2009, the company entered into a marketing contract for total expense of $25,200 for a nine month period. The company amortized $12,600 for the three months ended March 31, 2010.

.

NOTE 7- GOING CONCERN

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has accumulated an operating deficit since its inception of $10,651,520 as of March 31, 2011 . Additionally, current economic conditions in the United States and globally create significant problems attaining sufficient funding. Accordingly, management has encountered significant difficulties in obtaining financing. These items raise substantial doubt about the Company’s ability to continue as a going concern. In view of these matters, realization of the assets of the Company is dependent upon the Company’s ability to meet its financial requirements through equity financing, borrowing, and the success of future operations. These consolidated financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

NOTE 8 – CORRECTION OF PRIOR YEAR ACCOUNTING ERROR

The Company’s consolidated financial statements as of December 31, 2009, contained the following errors: (1) overstatement of debt in the amount of $2,389,200; overstatement of a related investment in the amount of $2,389,200, and overstatement of accrued interest payable in the amount of $149,112. As of December 31, 2009, the investment and debt (along with minimal foreign currency translation adjustments) were eliminated, and accumulated deficit was increased by $149,112 to correct the aggregate effect of the errors. The error is a result of the Company recording a transaction, known as Global Diamond Resources, which did not materialize wherein the Company was borrowing funds under a convertible loan agreement to purchase, through a subsidiary, stock of a privately held company. The lenders were unable to complete the transaction and neither funds nor equities changed hands. The Board of Directors issued a resolution to void the transaction. The Company also made the following adjustments:

				Additional	Deficit	Total
		Preferred	Common	Paid in	Accumulated	Stockholders
		Stock	Stock Amount	Capital	During Pre Exploraiton	Equity (Deficit)
Balance December 31, 2009(Prior k)	$	10,200	$93,132	$10,706,521	$(3,557,556)	$(7252297)
Reverse Stock Split			(92,822)	92,822
Reversal of interest Payable					149,112	149,112
Beneficial Converson feature
Preferred Stock		-(10,034,40)7				(10,034,407)
Re-class		10,189,800		(10,189,800)
Amortization of Beneficial Conversion
feature on Preferred Stock		1,011,688				1,011,688
Amortization of Beneficial Conversion
on Convertible Debt				363,883		363,883
Change in Value of Derivative Liability					1,747,423	1,747,423
Change in Interest Expense	$				(1,660,261)	(1,660,261)
Balance December 31, 2009(restated)		1,177,281	310	973,426	3,321,292	(1,170,265)

Removed Preferred Stock from Equity		(1,177,281)				(1,177,281)

					$	(2,347556)

14

Trilliant Exploration Corporation

Notes to Condensed Consolidated Financial Statements (unaudited)

Three Months and March 31, 2011

NOTE 9 - SUBSEQUENT EVENTS

Charms Investments entered into that certain debt assignment agreement dated January 22, 2011 regarding a $100,000 note issued July 1, 2009, with William Lieberman, the President/Chief Executive Officer and a member of the Board of Directors of the Company. Therefore, the Board of Directors acknowledged the Debt and the Loan Agreement and ratified and approved the issuance of 333,333 shares of restricted common stock to William Lieberman in satisfaction of the Debt. In accordance with the issuance of the common shares to William Lieberman, there was a change in control.

On January 26, 2011, the Board of Directors of Trilliant Exploration Corporation, a Nevada corporation (the “Corporation”) pursuant to unanimous written consent resolutions authorized and approved a reverse stock split of one for every three hundred (1:300) of our total issued and outstanding shares of common stock (the “Reverse Stock Split”). The Reverse Stock Split was effectuated on April 8, 2011 following the filing of the appropriate documentation with FINRA.

The Company has evaluated events from the date of this report, through the date whereupon the financial statements were issued and has determined that there are no additional items to disclose.

NOTE 10 – DISCONTINUED OPERATIONS

As of December 31, 2009, the Company was in default on credit arrangements for the purchase of MuluncayGoldCorp. The Company received a letter on February 11, 2010 in which Minera Del Pacifico informed the Company of the intent to enforce its rights under the agreements, and terminated all contractual agreements between the two companies effective December 31, 2009. Management, in the interest of the Company and lacking financial means to further pursue contractual agreements, acknowledged the letter from Minera Del Pacifico and released all claims on mining assets and rights attached to previous agreements.

Effective December 31, 2009, the Company disposed of its Muluncay Subsidiary and recognized a Net Loss from Discontinued Operations of $1,964,636, consisting of a $1,773,141 loss on disposal and $191,495 loss from operations for the period of March 30, 2009 through December 31, 2009. The Company was released from all obligations and released all claims on assets primarily because it has incurred significant operating losses since acquisition and the Company could not attract operating capital to meet contractual obligations since the acquisition of MuluncayGoldCorp. The assets lost consisted primarily of accounts receivable, inventories, property and equipment, and other assets. Minera Del Pacifico also assumed certain accounts payable and accrued liabilities. As of December 31, 2009 the company disposed of its Ayapama subsidiary.

15

The following is a summary of the significant net assets lost and discharge of liabilities as determined at December 31, 2009:

ASSETS				LIABILITIES
Current Assets				Current Liabilities
Checking/Savings	$	4,501		Accounts payable - trade	$	57,940
Accounts receivable trade		86,788		Bank overdrafts		14,323
Employee loans		3,957		Loan payable - related party		644,985
Accounts receivable - rel. party		472,598		Unearned income		3,500
Accounts Receivable - Other		186,920		Loans payable		11,000
Foreign tax credits		16,078		Foreign taxes payable		120,736
Inventory		91,949		Payroll liabilities		91,975
Fixed Assets				Mortgage liabilities, net		403,620
Land		16,000		Total Liabilities	$	1,348,079
Plant		1,915,809
Machinery and equipment		105,213		Net assets/loss on disposal	$	1,773,141
Computer equipment		614		Operating loss, 3/30-12/31/09		191,495
Electrical equipment		10,476		Net loss, discontinued operations	$	1,964,636
Tools		4,351
Accumulated depreciation		(206,622	)
Other Assets
Mineral rights		412,588
Total Assets	$	3,121,220

NOTE 11 – FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. The debt derivative, comprised of our bifurcated convertible debt features on our convertible notes, is measured at fair value using quoted market prices and estimated volatility factors based on historical prices for the Company’s common stock and are classified within Level 3 of the valuation hierarchy. The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities:

			Fair Value Measurements at September 30, 2010 using:
	September 30, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Debt derivative liabilities	$	332,028		-		-	$	332,028
Preferred stock derivative liabilities	$	11,339,470					$	11,339,470

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2010:

	Derivative Liability
Balance, December 31, 2009	$	8,808,222
Preferred stock issued		645,192
Mark-to-market at September 30, 2010:
- Embedded debt derivatives		41,911
- Reset provisions relating to preferred stock		2,176,173
Balance, September 30, 2010	$	11,671,498

Net loss for the period included in earnings relating to the liabilities held at September 30, 2010	$	2,218,084

FORWARD LOOKING STATEMENTS

Except for statements of historical fact, certain information contained herein constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identified by our use of certain terminology, including “will,” “believes,” “may,” “expects,” “should,” “seeks,” “anticipates,” or “intends,” or by discussions of strategy or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Such factors include, among others, our history of operating losses and uncertainty of future profitability; our lack of working capital and uncertainty regarding our ability to continue as a going concern; uncertainty of access to additional capital; risks inherent in mineral exploration; environmental liability claims and insurance; dependence on consultants and third parties as well as those factors discussed in the sections entitled “ Risk Factors ,” “ Business ,” and “ Management’s Discussion and Analysis of Financial Condition and Results of Operations .” If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated, or projected. Forward-looking statements in this document are not a prediction of future events or circumstances, and those future events or circumstances may not occur. Given these uncertainties, users of the information included herein, including investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. We do not assume responsibility for the accuracy and completeness of these statements.

The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company is an exploration stage company and its properties have no known body of ore. U.S. investors are cautioned not to assume that the Company has any mineralization that is economically or legally mineable.

All references in this Quarterly Report on Form 10-K to the terms “we,” “our,” “us,” “TTXP,” and the “Company” refer to Trilliant Exploration Corporation.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Trilliant Exploration Corporation was incorporated under the laws of the State of Nevada on December 29, 2003 under the name Project Development Pacific Inc. We were previously engaged in the business of assisting Canadian citizens to access health care services from private providers. On November 26, 2007, we changed our name to Trilliant Exploration Corporation with a business purpose to acquire and develop mineral properties. During 2007, we began acquiring interests in mining properties.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Pre-Exploration Stage Company

The Company is considered to be in the pre-exploration stage as defined in ASC 915 “ Accounting and Reporting by Development Stage Enterprises ” as interpreted by the Securities and Exchange Commission for mining companies in Industry Guide 7. The Company is devoting substantially all of its efforts to the execution of its business plan.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates that may change in the near future include value of goodwill, impairment of long-lived assets acquired, and value of investments.

Cash and Cash Equivalents

Cash and cash equivalents consists principally of currency on hand, demand deposits at commercial banks, and liquid investment funds having a maturity of three months or less at the time of purchase. The Company had $0 and $11,450 in cash and cash equivalents as of March 31, 2011 and December 31, 2010, respectively.

Revenue Recognition

The Company will follow the guidance of ASC Topic 605, formerly, SAB 104 for revenue recognition. In general, the Company will record revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenues from services are recognized when the services are performed, evidence of an arrangement exists, the fee is fixed and determinable and collectability is probable. In circumstances when these criteria are not met, revenue recognition is deferred until resolution occurs.

Mineral Acquisition and Exploration Costs

Mineral property interests include optioned and acquired mineral development and exploration stage properties. The amount capitalized related to a mineral property interest represents its fair value at the time it was optioned or acquired, either as an individual asset or as a part of a business combination. The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Exploration costs are expensed as incurred and development costs are capitalized if proven and probable reserves exist and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production are capitalized. Costs incurred to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates, at least quarterly, the carrying value of capitalized mineral interests costs and related property, plant and equipment costs, if any, to determine if these costs are in excess of their net realizable value and if a permanent impairment needs to be recorded. The periodic evaluation of carrying value of capitalized costs and any related property, plant and equipment costs are based upon expected future cash flows and/or estimated salvage value.

Property, Plant, and Equipment

Property and equipment are stated at cost. Depreciation and amortization are determined using the straight-line method over estimated useful lives of the assets. All property, plant, and equipment were disposed of and any gains and losses on the disposal are included in discontinued operations as disclosed in Note 10. As of March 31, 2011, the Company held no property, plant or equipment.

Net Income or (Loss) Per Share of Common Stock

Basic and diluted loss per common share is based upon the weighted average number of common shares outstanding during the period computed under the provisions of Accounting Standards Codification subtopic 260-10, Earnings per Share (“ASC 260-10”). All primary dilutive common shares have been excluded since the inclusion would be anti-dilutive. Such shares consist of the following:

	3/31/2011	3/31/2010
Common shares outstanding (Basic)	620,771	287,438
Conversion of convertible debt	62,015	30,505
Conversion of convertible notes	675,154	219,688
Conversion of convertible preferred shares	10,204,272	2,830,503
Conversion of warrants	31,477	15,010
Common shares outstanding (Diluted)	11,593,689	3,383,144

Goodwill and Other Intangibles

As of March 31, 2011, the Company held no Goodwill. The Company possesses no other intangible assets.

Recently Issued Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective accounting standards, if adopted, will have a material effect on our financial statements

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company’s income tax returns are recognized in the consolidated financial statements if such positions are more likely than not of being sustained.

In accordance with 740-10, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting this standard, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

Derivative Liabilities

The Company accounts for its embedded conversion features in its convertible debentures in accordance ASC 815-10, "Derivatives and Hedging", which requires a periodic valuation of their fair value and a corresponding recognition of liabilities associated with such derivatives, and ASC 815-40, “Contracts in Entity’s Own Equity”. The recognition of derivative liabilities related to the issuance of convertible debt is applied first to the proceeds of such issuance as a debt discount, at the date of issuance, and the excess of derivative liabilities over the proceeds is recognized as “Loss on Valuation of Derivative” in other expense in the accompanying financial statements. Any subsequent increase or decrease in the fair value of the derivative liabilities is recognized as “Other expense” or “Other income”, respectively.

Accounting Standards Codification subtopic 815-40, Derivatives and Hedging; Contracts in Entity ’ s own Equity ( “ ASC 815-40 ” ) became effective for the Company. The Company ’ s Convertible Preferred Stock and Convertible debt has certain provisions that require the Company to change conversion price of the Convertible debt and Convertible Preferred Stock based on the discounted market value. Upon the effective date, the provisions of ASC 815-40 required a reclassification to liability based on the reset feature of the agreements. Therefore, in accordance with ASC 815-40, the Company determined the fair value of the initial reset provision on preferred stock and convertible debt using the Black-Scholes formula assuming no dividends, a risk-free interest rate of 0.68%-0.85%, expected volatility of 155.49%-214.23%, and expected life of 1 and 5 years. The net value of the reset provision at the date of adoption of ASC 815-40 was recorded as a derivative liability on the balance sheet and a reduction to convertible redeemable preferred stock and convertible debt. Changes in fair value are recorded as non-operating, non-cash income or expense at each reporting date.

The fair value of the preferred stock and convertible debt at March 31, 2011 was determined using the Black Scholes Option Pricing Model with the following assumptions:

Dividend yield: 0%

Volatility 254.30%

Risk free rate: 0.70%

The change in fair value of the convertible preferred stock and convertible debt derivative liability resulted in a current period non-operating loss to operations of $694,855.

Fair Value of Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and short-term borrowings, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value

Reclassification

Certain reclassifications have been made to conform the prior period data to the current presentation. These reclassifications had no effect on reported net loss.

Currency Risk and Foreign Currency Translations

The functional currency of the Company is the United States Dollar (USD). In accordance with ASC Topic No. 830, realized gains or losses on expenses incurred in denominations other than USD are recognized in earnings on the transaction date. At such time as there are any foreign denominated assets or liabilities, the Company will report changes in valuation in a Statement of Other Comprehensive Income or (Loss) due to the changes in cumulative adjustments from foreign currency translation.

CURRENT BUSINESS OPERATIONS

We are engaged in the evaluation, acquisition, exploration and advancement of mining projects. Although we were considered to have exited the pre-exploration stage with the Muluncay acquisition, the disposal of Muluncay necessitates that we re-enter the pre-exploration stage effective December 31, 2009. As of the date of this Quarterly Report, we are devoting substantially all of our efforts to the execution of our business operations. To date, funding to acquire and explore gold properties and for operational purposes was acquired through private financings.

Fairfield Gold S.A. de C.V. Letter of Intent

Effective June 3, 2010, our Board of Directors authorized the execution of a letter of intent (the “Letter of Intent”) with Fairfield Gold S.A. de C.V. (“Fairfield Gold”), regarding the acquisition of the assets of Fairfield Gold for payment of consideration in the amount of $160,000. The Letter of Intent provides that execution of a definitive agreement is subject to completion of satisfactory due diligence by both parties. As of August 3, 2010, we have received an audit report from Baker Tilly Mexico, S.C., regarding Fairfield, including balance sheets as of June 30, 2010 and December 31, 2009 and related statements of operations, stockholders’ equity and cash flows for the period from January 1, 201 to June 30, 2010 and for the period from July 9, 2009 (incorporation) to December 31, 2009. In the event due diligence is satisfactorily completed by us and Fairfield Gold, we intend to execute a definitive share purchase agreement or other similar documentation pertaining to consummation of the transaction. After additional due diligence the firm decided not to pursue the investment during the fourth quarter of 2010.

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Muluncay Project

On October 15, 2008, we entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Compania Minera Del Pacifico S.A., an Ecuadorian corporation (“Del Pacifico”) for the purchase of the Muluncay Project. Subsequently, on March 30, 2009, we entered into a share transfer agreement (the “Share Transfer Agreement”) with Del Pacifico and its wholly owned subsidiary, Compania Muluncaygold Corp. S.A. (“Muluncay”). The Share Transfer Agreement superseded in its entirety the terms of the Asset Purchase Agreement.

In further accordance with the terms and provisions of the Share Transfer Agreement, we also agreed to transfer to Muluncay an aggregate of $1,800,000 as follows: (i) an initial payment of $800,000 within ninety day of March 30, 2009; and (ii) the balance of $1,000,000 within 180 days of March 30, 2009.

As of December 11, 2009, we were in default for the purchase of Muluncay. We received a letter on February 11, 2010 in which Del Pacifico informed us of its intent to enforce its rights under the Share Transfer Agreement and terminated all contractual agreements between us and Del Pacifico effective December 31, 2009. In the interest of our shareholders and lacking financial funds to further pursue contractual agreements with Del Pacifico, we acknowledged the letter from Del Pacifico and released all claims on the Controlling Assets and rights under the terms of the Share Purchase Agreement.

Effective December 31, 2009, Del Pacifico terminated the agreement due to our inability to provide the $1,800,000 investment pursuant to the contract terms. Thus, we determined to discontinue operations through our Muluncay subsidiary. We were released from all obligations and released all claims on the Controlling Assets primarily because we had incurred significant operating losses since acquisition and we could not attract operating capital to meet contractual obligations since the acquisition of Muluncay. On December 31, 2009, we completed the loss recognition for a total loss of $1,964,636.

RESULTS OF OPERATION

Three Month Period Ended March 31, 2011 Compared to Three Month Period Ended March 31, 2010.

Our net loss for the three months period ended March 31, 2011 was $1,902,078 compared to a net loss of $2,178,767 during the three month period ended March 31, 2010, a change of $276,689. During the three month periods ended March 31, 2011 and 2010, we did not generate any revenue from continuing operations.

During the three month period ended March 31, 2011, we incurred operating expenses of $6,573 compared to $64,565 incurred during the three month period ended March 31, 2010, a decrease of $57,992. These expenses incurred during the three month period ended March 31, 2011 consisted of: (i) professional fees of $5,000 (2010: $41,700); (ii) insurance of $-0- (2010: $5,190); and (iii) other general and administrative expenses of $1,573 (2010: $17,675). The decrease in operating expenses incurred during the three month period ended March 31, 2011 from the three month period ended March 31, 2010 was primarily attributable to the following items: (i) a decrease in professional fees of $36,700; and (ii) and a decrease in other general and administrative expenses of $16,102. Operating expenses decreased due to the decreased scope and scale of our business operations.

Other income (expense) was incurred during the three month period ended March 31, 2011 of ($1,895,505) (2010: ($2,114,202). Other income (expense) during the nine month period ended March 31, 2011 consisted of: (i) interest expense (including amortization of beneficial conversion feature) of ($617,317) compared to ($712,514) during the three month period ended March 31, 2010; and (ii) change in derivative liability of ($694,855) ((2010: ($1,401,688)). We determined to discontinue operations with our Muluncay subsidiary, a mining operation in Ecuador, effective December 31, 2009.

Therefore, this resulted in a net loss applicable to common shares during the three month period ended March 31, 2011 of $1,902,078 compared to a net loss applicable to common shares during the three month period ended March 31, 2010 of $2,178,767.

LIQUIDITY AND CAPITAL RESOURCES

Three Month Period Ended March 31, 2011

As at March 31, 2011, our current assets were $-0- and other assets of $32,618 representing bond issue costs – related party – for total assets of $32,618. Our current liabilities were $2,757,297, which resulted in a working capital deficit of $2,724,679. As of March 31, 2011, liabilities were primarily comprised of: (i) $245,735 in accounts payable; (ii) $565,000 in convertible notes payable, current; (iii) $1,610,407 of convertible bonds payable, and (iv) $336,155 of accrued interest and short term payable. The decrease in total assets during the three month period ended March 31, 2011 from fiscal year ended December 31, 2010 was primarily due to the payment of Company expenses. The increase in liabilities during the three month period ended March 31, 2011 from fiscal year ended December 31, 2010 was primarily due to the Company issuing common stock to retire a convertible note payable along with applicable accrued interest, and the change in the value of the derivative liability.

Stockholders’ deficit increased from $17,976,706 for fiscal year ended December 31, 2010 to $19,182,969 for the three month period ended March 31, 2011.

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the three month period ended March 31, 2011, net cash flows used in operating activities was $11,450 consisting primarily of a net loss of $1,902,078 as adjusted by $526,665 in amortization of debt discounts, $694,855 change in derivative liability, and $583,333 in a loss on settlement of debt.

Cash Flows from Investing Activities

We did not engage in any investing activities during the three month period ended March 31, 2011.

Cash Flows from Financing Activities

We did not engage in any financing activities during the three month period ended March 31, 2011. For the three month period ended March 31, 2011, net cash flows provided from financing activities was $nil compared to $0 for the three month period ended March 31, 2010.

PLAN OF OPERATION AND FUNDING

A substantial portion of quarter ended December 31, 2010 was dedicated to the Muluncay mining project and financing. As at March 31, 2011, our cash and cash equivalents were $0. For the three month period ended March 31, 2011, we incurred a net loss of $1,902,078. Net cash provided by financing activities for the three month period ended March 31, 2011 was $Nil. The accumulated deficit is due to losses incurred on the disposal of Muluncay and general & administrative costs, change in the derivative liability, salaries and wages, note and bond interest, and professional fees. The orchestration and execution of our business acquisitions resulted in increased professional fees and the need for funding.

We will need additional further advances and issuance of debt instruments to fund our operations over the next three months. In connection with our future business plan, management anticipates additional increases in operating expenses and capital expenditures relating to acquisition of further interests in gold mining concessions. We would finance these expenses with further issuances of securities and debt issuances. We expect we would need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities would result in dilution to our current shareholders. Further, such securities may have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all.

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MATERIAL COMMITMENTS

As of the date of this Quarterly Report, we have the following material commitments as described as described in Footnote 4 of our financial statements (all of which are in default).

Contractual Obligations	Total		Less than one year		1 – 3 Years		3 – 5 Years		More than 5 Years
Convertible Bonds	$	1,610,407	$	1,610,407	$	-	$	-	$	-
Convertible Notes Payable		565,000		565,000
Total	$	2,175,407	$	2,175,407	$	-	$	-	$	-

OFF-BALANCE SHEET ARRANGEMENTS

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

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GOING CONCERN

The independent auditors' report accompanying our December 31, 2009 and December 31, 2008 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

ITEM3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market risk represents the risk of loss that may impact our financial position, results of operations or cash flows due to adverse change in foreign currency and interest rates.

Exchange Rate

Our reporting currency is United States Dollars (“USD”). In the event we acquire any properties outside of the United States, the fluctuation of exchange rates may have positive or negative impacts on our results of operations. However, since all of our properties are currently located within the United States, any potential revenue and expenses will be denominated in U.S. Dollars, and the net income effect of appreciation and devaluation of the currency against the U.S. Dollar would be limited to our costs of acquisition of property.

Interest Rate

Interest rates in the United States are generally controlled. Any potential future loans will relate mainly to acquisition of properties and will be mainly short-term. However our debt may be likely to rise in connection with expansion and if interest rates were to rise at the same time, this could become a significant impact on our operating and financing activities. We have not entered into derivative contracts either to hedge existing risks for speculative purposes.

ITEM4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation (the “Evaluation”), under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (“Disclosure Controls”) as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our CEO and CFO concluded that our Disclosure Controls were effective as of the end of the period covered by this report.

Based on that evaluation, our principal executive officer and principal financial officer has concluded that as of September 30, 2010, our disclosure controls and procedures were not effective. A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. To address the material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

Changes in Internal Controls

We have also evaluated our internal controls for financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of their last evaluation.

Limitations on the Effectiveness of Controls

Our management, including our CEO and CFO, does not expect that our Disclosure Controls and internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management or board override of the control.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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CEO and CFO Certifications

Appearing immediately following the Signatures section of this report there are Certifications of the CEO and the CFO. The Certifications are required in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (the Section 302 Certifications). This Item of this report, which you are currently reading is the information concerning the Evaluation referred to in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.

AUDIT COMMITTEE REPORT

We have a separately-designated audit committee of the board. Audit committee functions are performed by our board of directors. Our director is not deemed independent. All directors also hold positions as our officers. Our audit committee is responsible for: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention, and treatment of complaints regarding accounting, internal controls, and auditing matters; (3) establishing procedures for the confidential, anonymous submission by our employees of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and, (5) funding for the outside auditory and any outside advisors engagement by the audit committee. .

AUDIT COMMITTEE FINANCIAL EXPERT

None of our directors or officers has the qualifications or experience to be considered a financial expert. We believe the cost related to retaining a financial expert at this time is prohibitive. Further, because of our limited operations, we believe the services of a financial expert are not warranted.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

No report required.

ITEM 1A. RISK FACTORS

No report required.

ITEM 2. UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

No report required.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No report required.

ITEM 4. Removed and Reserved

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ITEM 5. OTHER INFORMATION

DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS

Effective on August 11, 2010, our Board of Directors accepted the resignation of Jeffrey Sternberg as our President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and a member of the Board of Directors. Effective on August 12, 2010, our Board of Directors accepted the consent of William Lieberman to act as our President/Chief Executive Officer, Secretary and Treasurer/Chief Financial Officer and a member of the Board of Directors. Therefore, as of the date of this Quarterly Report, our Board of Directors is comprised of William Lieberman.

Biography

William Lieberman. Mr. Lieberman is a Chartered Financial Analyst Candidate, Level one at the CFA Institute in New York, and earned a Masters in Business Administration from Hult International Business School in Boston, MA, in 2007. He has an extensive track record in international mining, metal, plastic and advertising sales. Mr. Lieberman was vice president of sales and development for Zapoint, Inc. in Boston Massachusetts, where he was highly involved in all stages of financing and development for the solicitation and close of $1,250,000 of venture capital and angel investment. From 2005 through 2006, Mr. Lieberman was vice president of sales and development for Resource Polymers, Inc. in Toronto, Canada. During his tenure at Resource Polymers, Mr. Lieberman networked throughout Canada and internationally in global scrap markets, and provided arbitrage services to secondary metal and plastics markets. Mr. Lieberman is also the president/chief executive officer and treasurer/chief financial officer and a member of the board of directors of Fox Petroleum Inc., a publicly traded company on the Bulletin Board.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(A) Exhibits

Exhibit Number	Description
Exhibit 31.1	Certification of President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
Exhibit 31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
Exhibit 32.1	Certification of President pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

* Filed herewith

TRILLIANT EXPLORATION CORPORATION

SIGNATURES

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

	TRILLIANT EXPLORATION CORPORATION

Dated: May 24, 2012	By:	/s/ WILLIAM LIEBERMAN
		William Lieberman, President/Chief
		Executive Officer

Dated: May 24, 2012	By:	/s/ WILLIAM LIEBERMAN
		William Lieberman, Chief Financial Officer