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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
FORM 10-Q
 
(Mark One)
 
 
x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Quarter Ended November 30, 2011
 
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from to ______
 
 
EXCALIBUR INDUSTRIES
Exact name of registrant as specified in its charter)
 
 
 UTAH       87-0292122
 (State or other jurisdiction      (IRS Employer
 of incorporation or organization)      Identification Number) 
 
Post Office Box 3551, Duluth, Minnesota 55803
Address or principal executive offices
(218) 724-4711
Telephone Number 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company
 
 
Large accelerated filer
o
Accelerated filer
o
 
Non-accelerated filer
o
Smaller reporting company
x
 
(Do not check if a smaller reporting company)
   
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o         No x
 
Indicate by check mark whether the registrant (1) has filed 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 report); and, (2) has been subject to such filing requirements for the past 90 days.  YES o       NO x
 
APPLICABLE ONLY TO CORPORATE ISSUERS
 
Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.
 
 
Class
 
Outstanding as of November 30, 2011
       
 
Common Stock, $0.001 par value
 
6,319,307
 
 
 
Page 1
 
 

 
EXCALIBUR INDUSTRIES 
Form 10-Q   
 
CONSOLIDATED BALANCE SHEETS                                                                          
                                     FOR THE PERIODS ENDED:
   
Nov. 30, 2011
   
Aug. 31, 2011
 
ASSETS
   (Unaudited)
     Cash, Savings Certificates, Treasury Bills
  $ 167,489     $ 161,358  
     Notes and Accounts Receivable
    0       0  
     Other Assets
    0       0  
               Total Current Assets
  $ 167,489     $ 161,358  
                 
     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
  $ 267,589     $ 261,458  
                 
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  
    Additional Paid-in Capital
    80,591       80,591  
    Retained Earnings
    100,362       102,905  
    Treasury Stock
    (105 )     (105 )
              Total Shareholders’ Equity
    267,489       261,358  
                 
  TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY
  $ 267,589     $ 261,458  


The accompanying notes are an integral of these financial statements.
These financial statements are unaudited.
 
 

Page 2
 
 

 








EXCALIBUR INDUSTRIES 
Form 10-Q         
CONSOLIDATED STATEMENTS OF INCOME, EXPENSE AND RETAINED EARNINGS
                                    FOR THE FISCAL QUARTERS ENDED:
   
Nov. 30, 2011
   
Nov. 30, 2010
 
REVENUES
  (Unaudited)  
                 
   Interest
  $ 0     $ 0  
             Total Revenues
    0       0  
             Cash, Treasury Bills + Stock
    167,489       183,757  
EXPENSES
               
   General and Administrative
  $ 1,903     $ 2,827  
   Professional Services
    640       2,833  
   Property, Payroll and Other Taxes
    0       0  
   Claim Fees
    0       0  
                       NET (LOSS)
    (2,543 )     (5,660 )
                       Retained Earnings Beginning of Period
    102,905       72,830  
                 
                       Retained Earnings at End of Period
    100,362       67,170  
                 
   Average Shares Outstanding During Period
    6,319,307       6,319,307  
                 
NET GAIN (LOSS) PER SHARE
  $ (0.016 )   $ (0.010 )





The accompanying notes are an integral of these financial statements.
These financial statements are unaudited.



Page 3




 
 

 
 
EXCALIBUR INDUSTRIES 
Form 10-Q    
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED NOVEMBER 30, 2011
NOTE 1.
Ÿ  
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.
Ÿ  
In the opinion of Management, the foregoing financial information fairly presents results of operations during the periods represented.
Ÿ  
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.
 
NOTE 2.
Ÿ  
Equipment includes capitalized acquisition costs of $2,354 at February 28, 2003 and at November 30, 2002.
Ÿ  
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.
Ÿ  
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   $ 108,145  
 

 
Page 4
 
 
 

 

EXCALIBUR INDUSTRIES 
Form 10-Q   
 
MANAGEMENT’S DISCUSSION AND ANALYSIS  
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EXCALIBUR INDUSTRIES                       

ITEM 2
Material Changes in Financial Conditions
Ÿ  
On November 22, 2006, the 10th 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.
Ÿ  
On July 15, 2009, the 10th 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.
Ÿ  
No appeal is scheduled.
Ÿ  
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 10th District Court of Wyoming.
Ÿ  
On August 13, 2009, Plaintiff attorneys filed a brief in opposition to Cliffs attorney fees in the 10th District Court of Wyoming.
Ÿ  
On Nov. 30, 2009 Plaintiffs Excalibur Industries (Mountain West Mines) upon recommendation from Council, 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.
Ÿ  
After six years of litigation – Four 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 U. S. mining.
Ÿ  
In 2010, U. S. District Court Judge Clarence Brimmer was cited in a U. S. Supreme Court petition for “Structural Error” in the Solon Verdict.  Pending.
Ÿ  
This is the same Judge Brimmer who ruled against MWM on July 13, 2005 denigrating Joseph P. Hubert, the originator, sole architect, and field manager of the Powder River Project as an “opportunist” and “fined” him $510,000.00 to teach him a lesson.
Ÿ  
U. S. District Court Judge Clarence Brimmer is now on “Senior Status”.  Excalibur (MWM) has reissued a petition to the Supreme Court of the United States.  Petition refused.
Ÿ  
AMI royalty obligations, as clearly stated in the MWM/Cliffs 1967 Agreement, due Excalibur directly from Cliffs amount to 4% on some 26,000,000 pounds of yellow cake produced through year 2009.  Total royalty due in excess of $70,000,000.00 plus interest plus penalty.
Ÿ  
Cliffs “sales” agreements were “validated” by the Appellate Court ruling 11/22/06.  Sales agreement terms lock Cliffs into mineral right obligations to MWM, AMI royalty payments to MWM by Successor in Interest, and Successor in Interest AMI guaranties.  MWM never sold a single acre of mineral rights to Cliffs; and, Cliffs has never given MWM notice or copies of any Joint Venture agreements.
Ÿ  
This Appellate Court ratified, “sales” agreements between Cliffs and their joint venture partners “CEGB & Uranerz USA” which specifically states the MWM/Cliffs Agreements of 1967 obligations are now the obligation of the “Buyers” and govern their activity in the AMI.
Ÿ  
MWM/Cliffs 1967 contract obligates Cliffs to royalty payments to MWM on the following active projects:
A.  
 2011 Cliffs Royalty Obligations to Excalibur as Agreed to in the 1967 Option:
1.  
 8% yellow cake on:  North Butte/Brown deposit – 2002 approx. 26,000,000 lbs.
    Greasewood deposit – 2002 – 4,000,000 lbs.
        4% yellow cake on:  Ruby Ranch Deposit – 2002 – 6,400,000 lbs.
    Highland deposit and
    Smith Ranch deposit – 2005 – 25,000,000 lbs.
    Ruth deposit – 2005 – 800,000 lbs.
    Reynolds Ranch – 2005 – 16,000,000 lbs.
2.  
 4% yellow cake on:  Brown Ranch deposit – and
    Irigaray deposit – and
    Christensen deposit – 1998 – 2,800,000 lbs.
 
Page 5

 
 

 



EXCALIBUR INDUSTRIES 
Form 10-Q   
 
MANAGEMENT’S DISCUSSION AND ANALYSIS  
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
B.  
 2011 ARMZ royalty obligation to Excalibur as agreed to in the Mining Deed of August 22, 1973
MWM/American Nuclear Corporation (ANC) –
2 ½ % yellow cake on Brown Ranch Deposit – in 400 plus claim block
C.  
 2011 Uranerz Energy Corporation (URZ) obligation to Excalibur as agreed to in the Option and Purchase Agreement of December 9, 2005 – Excalibur has a $250,000.00 advance royalty obligation to URZ            8% yellow cake on:  Nichols Ranch deposit – 2010 – 2,950,000 lbs
         Hank deposit 2010 – 2,250,000 lbs.
         Doughstick deposit – 2011 – 500,000 lbs.
D.  
 Uranerz has begun plant and well field construction on the Nichols Ranch ore body.  Uranerz proposes ISR production of 600-800,000 lbs. by mid-2012.  Uranerz has a farm out agreement with Cameco & Smith Ranch ISR processing plant for Nichols Ranch uranium – loaded resin.

Material Changes in Results of Operations
Ÿ  
Excalibur Director John Morrow, CPA personally delivered to the Chicago office of the SEC, corporate documents pertaining to undisclosed contingency liabilities by Cliffs Natural Resources on the following dates:  January 31, 2011; March 8, 2011; and, August 11, 2011.
Ÿ  
On May 6, 2011, Mr. Hubert sent 16 file boxes of legal work product (MGGM), concerning the 1967 contract obligations between Excalibur (MWM) and Cliffs Natural Resources (Cliffs).
Ÿ  
On August 22, 2011, acknowledgement of all received of the above by SEC Assistant Regional Director, Division of Enforcement Mr. Barry Isenman.
Ÿ  
The Cleveland, Ohio Law Firm of Mansour, Gavin, Gerlack & Manas Co. L.P.A. agreed to represent Excalibur in legal proceedings against The Cleveland-Cliffs Iron Company.  The lawsuit was filed in August 2008.  Excalibur has paid $50,000.00 for expenses and MGGM is retained on a contingency basis.
Ÿ  
On November 30, 2009, MGGM LPA completed their legal association with Excalibur.
Ÿ  
The SEC has requested corporate information.  A complete background file has been forwarded to the SEC.
Ÿ  
On January 12, 2011 Excalibur signed a Letter of Intent with Meriden Engineering LLC (subsidiary of Superior Minerals Resources LCC) for management services as defined in Services Agreement.  Excalibur has no royalty income at present and management services will commence upon receipt of same or will be terminated within a year, January 11, 2012, should there be no royalty payments.
Ÿ  
All loans have been repaid.
Ÿ  
Registrant pays no wages.
Ÿ  
Payment for professional services is scheduled when required:  i.e. 10-K report - tax returns, SEC filing fee, attorney charges.
Ÿ  
Another attempt to appear before the United States Supreme Court for a review of the Appellate Court decision has been denied.
Ÿ  
On August 17, 2010, Excalibur received fully executed documents in the exchange of its Drill Hole Library for 2,000,000 warrants of Uranerz Energy Corporation common stock strike price $3.00 - in increments of 500,000 shares in a four-year term with a 6 month holdout period.
Ÿ  
Effective August 25, 2010, Uranerz executed a Shareholders Rights Plan – exercise price at U. S. $8.75/share.  Current URZ stock price $1.87.
 
 
 
Page 6

 
 

 

 
EXCALIBUR INDUSTRIES 
Form 10-Q   
 
EXHIBITS
 
31.1   Certification of Principal Executive Officer and Principal Financial Officer pusuant to Section 302 of the Sarbanes-Oxley Act of 2002.  
       
32.1   Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  
       
EX-101.INS   XBRL Instance Document   
       
EX-101.SCH   XBRL Taxonomy Extension Schema   
       
EX-101.CAL   XBRL Taxonomy Extension Calculation Linkbase   
       
EX-101.LAB    XBRL Taxonomy Extension Label Linkbase   
       
EX-101.PRE    XBRL Taxonomy Extension Presentation Linkbase   
       
EX-101.DEF    XBRL Taxonomy Extension Definition Linkbase   
       


EXCALIBUR INDUSTRIES
Form 10-Q                                

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
     EXCALIBUR INDUSTRIES  
     (Registrant)  
       
       
 Date:  January 6, 2012    /s/ Joseph P. Hubert  
     Joseph P. Hubert  
     President, Chief Executive Officer  
     and Chairman of Board of Directors  
       
 Date:  January 6, 2012    /s/ Marguerite H. Emanuel  
     Marguerite H. Emanuel  
     Secretary  
 

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