FORM 10-Q

For the Quarter ended FEBRUARY 28, 2010 Commission File Number 1-7602

IRS Employer Identification Number:

87-0292122

Address or principal executive offices;

Post Office Box 3551

Duluth, Minnesota 55803

Phone Number:

(218) 724-4711

E-Mail Address:

mhubert1@msn.com

YES ____X____

NO ________

February 28, 2010

Common Shares 6,319,307

EXCALIBUR INDUSTRIES

CONSOLIDATED BALANCE SHEET

Form 10-Q

Part I

Unaudited

For the Periods Ending:

Feb. 28, 2010

Nov. 30, 2009

ASSETS

Cash, Savings Certificates, Treasury Bills

$ 178,773

$ 167,200

Notes and Accounts Receivable

0

0

Other Assets

0

0

Total Current Assets

$ 178,773

$ 167,200

Property, Equipment & Mineral Interests (See Note B)

103,701

103,701

Less Accumulated Depreciation

(3,661)

(3,661)

Total Fixed and Other Assets

$100,040

$100,040

Deposits

60

60

TOTAL ASSETS

$278,873

$267,300

LIABILITIES & SHAREHOLDERS’ EQUITY

Current Liabilities

$ 100

$ 100

Other Liabilities Loan from Stockholder

0

0

Common Stock 0 $.01 Par Value, Authorized 10,000,000

Shares; 6,319,307 Shares issues; 6,319,307 Outstanding

63,193

63,193

Paid-In Capital in excess of Par

83,124

83,124

Retained Earnings

75,738

147,643

Treasury Stock

(105)

(105)

Total Shareholders’ Equity

278,768

267,195

TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY

$278,873

$267,300

EXCALIBUR INDUSTRIES

CONSOLIDATED STATEMENT

Form 10-Q

Part I

OF INCOME, EXPENSE AND

RETAINED EARNINGS FOR

THE FISCAL QUARTERS ENDED

Unaudited

Feb. 28, 2010

Feb. 28, 2009

REVENUES

Interest

$ 0

$ 0

Total Revenues

0

0

Cash, Treasury Bills + Stock

178,773

142,395

EXPENSES

Loan Repayment

$ 0

$ 0

General and Administrative

$ 789

$ 1,210

Professional Services

279

356

Property, Payroll and Other Taxes

0

0

Claim Fees

0

0

NET (LOSS)

(1,064)

(1,566)

Retained Earnings Beginning of Period

147,643

78,368

Retained Earnings at End of Period

146,579

76,802

Average Shares Outstanding During Period

6,319,307

6,164,571

NET GAIN (LOSS) PER SHARE

$ (0.0002)

$ (0.0002)

EXCALIBUR INDUSTRIES MANAGEMENT’S DISCUSSION AND ANALYSIS

FORM 10-Q 02/28/10 PART 1 OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

•

On November 22, 2006, the 10^th District U. S. Court of Appeals upheld the adverse ruling of the U. S. District Court – remanded the $510,000.00 fine and later reduced to $3,465.00 court costs to MWM.

•

On July 15, 2009, the 10^th District Court dismissed the Plaintiff’s (MWM & Joseph P. Hubert) law suit against The Cleveland-Cliffs Iron Co. (Cliffs Natural Resources) with the obligation of an undisclosed court cost.

•

No appeal is scheduled.

•

On July 30, 2009, the two law firms representing the Defendant (Cliffs) filed attorney fee charges against the Plaintiff for $349,462.00 in the 10^th District Court of Wyoming.

•

On August 13, 2009, Plaintiff attorneys filed a brief in opposition to Cliffs attorney fees in the 10^th District Court of Wyoming.

•

On Nov. 30, 2009 Plaintiffs Excalibur Industries (Mountain West Mines) Joseph P. Hubert agreed to a $100,000.00 settlement with the Cleveland Natural Resources Corp. – payable from royalty received from North Butte and Ruby Ranch deposits production in a two-year installment of $50,000.00 per year upon commencement of mining.

•

After six years of litigation – Three U. S. District Courts – One U. S. Court of Appeals and a U. S. Supreme Court petitions – All failed to uphold the clear terms of the MWM/Cliffs May 17, 1967 Option and Agreement. Three judicial decisions are beyond explanation. The resulting loss to Excalibur is historic in mining.

•

Six wholly owned prospects have been optioned to Uranerz Energy Corporation with payment of $250,000.00 advance royalty due URZ.

•

The advance royalty payment is not subject to either State or Federal Taxes due to depletion and loss carry forward amount.

•

The Cleveland, Ohio Law Firm of Mansour, Gavin, Gerlack & Manas Co. L.P.A. has agreed to represent Excalibur in legal proceedings against The Cleveland-Cliffs Iron Company. The lawsuit was filed in August. Excalibur has paid $50,000.00 for expenses and MGGM is retained on a contingency basis.

•

On November 30, 2009, MGGM LPA completed their legal association with Excalibur.

•

The SEC has requested corporate information. A complete background file has been forwarded to the SEC. To date no response has been received.

•

On July 25^th, URZ received a positive independent assessment on Excalibur’s royalty projects, Nichols Ranch & Hank ISL deposits. Annual royalty income is projected to begin in 2011 for a period of five years – totally some $13,000,000.00 with yellow cake at $44/pound.

•

All loans have been repaid.

•

Registrant pays no wages.

•

Payment for professional services is scheduled when required: i.e. 10-K report - tax returns, SEC filing fee and attorney charges.

•

An attempt to appear before the United States Supreme Court for a review of the Appellate Court decision has been denied.

•

The information in this report is unaudited and includes the consolidated financial information of Excalibur Industries and its wholly owned subsidiary, Mountain West Mines, Inc.

•

In the opinion of Management, the foregoing financial information fairly presents results of operations during the periods represented.

•

In the opinion of Management, all material adjustments have been recorded to arrive at the amounts reported, and all significant inter-company transactions have been eliminated from these statements.

•

Equipment includes capitalized acquisition costs of $2,354 at February 28, 2003 and at November 30, 2002.

•

Excalibur and its subsidiary, Mountain West Mines, Inc., have acquired various mining properties, leaseholds, patented claims, and mineral rights interests. These assets are carried at their cost of acquisition unless, in the judgment of the Directors, a lesser amount is felt to be more appropriate because of a permanent decline in value. The Board of Directors has determined that a more realistic value should be placed on the books for financial reporting and has elected to reduce the reporting value for financial statement purposes to $108,106.

•

Values for purposes of this financial statement as of February 28, 2003 and November 30, 2002.

Property and Equipment

$

2,354

Mining Equipment

$

1,347

Interest in Mining Properties

$ 108,106

Accumulated Depreciation

$

(3,661)

TOTAL

$ 108,146

EXCALIBUR INDUSTRIES

OTHER INFORMATION

FORM 10-Q 02/28/10 PART 2

ITEM 4

Submission of Matters to a Vote of Security Holders

a-c

None

d

None

ITEM 6

Exhibits and Reports on Form S-K

a

None

b

No reports on Form 8-K were filed during the quarter ending February 28, 2010.

EXCALIBUR INDUSTRIES

Form 10-Q

Part II

EXCALIBUR INDUSTRIES

(Registrant)

Date: March 5, 2010

/s/ Joseph P. Hubert

Joseph P. Hubert

President, Chief Executive Officer

and Chairman of Board of Directors

Date: March 5, 2010

/s/ Marguerite H. Emanuel

Marguerite H. Emanuel

Secretary