10-Q/A

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-Q/A

Amendment No. 1

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended June 30, 2012

Commission File Number       000-32629

PACIFIC GOLD CORP.

 (Exact name of registrant as specified in charter)

Nevada	98-0408708
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

848 N. Rainbow Blvd. #2987, Las Vegas, Nevada	89107
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code       (416) 214-1483

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 x   No o

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 x   No o

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 definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  o      Accelerated filer  o      Non-accelerated filer  o      Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes o   No x

As of August 14, 2012, the Company had outstanding 891,478,230 shares of its common stock, par value $0.001.

TABLE OF CONTENTS

ITEM NUMBER AND CAPTION	PAGE
PART I
ITEM 1.       Consolidated Financial Statements	3
ITEM 2.       Management’s Discussion and Analysis of Financial Condition And Results of Operations	14
ITEM 3.       Quantitative and Qualitative Disclosures About Market Risk	17
ITEM 4.       Controls and Procedures	17
PART II
ITEM 1.       Legal Proceedings	18
ITEM 1A     Risk Factors	18
ITEM 2.       Unregistered Sales of Equity Securities and Use of Proceeds	18
ITEM 3.       Defaults Upon Senior Securities	18
ITEM 4.       Mine Safety Disclosures.	18
ITEM 5.       Other Information	19
ITEM 6.       Exhibits	19

2

PART I

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

Pacific Gold Corp.
Consolidated Balance Sheets
	June 30		December 31,
	2012		2011
	(Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	12,075	$	103,454
Accounts Receivable		31,335		18,844
Inventory		-		288,982
Prepaid Expenses		7,068		10,730
Total Current Assets		50,478		422,010
Mineral Rights, Plant and Equipment
Mineral Rights, net		576,411		570,411
Plant and Equipment, net		544,490		524,789
Water Rights and Wells		90,000		90,000
Land		13,670		13,670
Total Mineral Rights, Plant and Equipment, net		1,224,571		1,198,870
Intangibles
Total Intangibles, net		9,917		-
Other Assets:
Deposits		-		3,524
Reclamation Bond		196,780		196,780
Total Other Assets		196,780		200,304
TOTAL ASSETS	$	1,481,746	$	1,821,184
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts Payable	$	747,589	$	655,230
Accrued Expenses		769,261		780,033
Notes Payable – Related Parties		103,395		414,606
Convertible Notes, Net		162,708		30,575
Accrued Interest – Convertible Note		19,647		4,027
Derivative Liability		1,562,870		100,699
Accrued Interest – Promissory Notes		44,125		143,145
Promissory Notes		1,117,000		1,244,900
Total Current Liabilities		4,526,595		3,373,215
Long Term Liabilities:
Accrued Interest		26,865		108,521
Notes Payable		1,611,908		1,223,031
Total Liabilities		6,165,368		4,704,767
Stockholders’ Deficit:
Preferred Stock - $0.001 par value; 5,000,000 shares authorized, no shares outstanding at June 30, 2012 and December 31, 2011		-		-
Common Stock - $0.001 par value; 5,000,000,000 shares authorized, 870,439,113, and 775,374,185 shares issued and outstanding at June 30, 2012 and December 31, 2011 respectively		870,440		775,374
Additional Paid-in Capital		24,779,196		23,526,225
Accumulated Deficit		(30,333,258)		(27,185,182)
Total Stockholders’ Deficit		(4,683,622)		(2,883,583)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,481,746	$	1,821,184

See accompanying notes to the consolidated financial statements

3

Pacific Gold Corp.
Consolidated Statements of Operations  (Unaudited)
	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2012		2011		2012		2011
Revenue:
Total Revenue	$	31,375	$	-	$	78,658	$	-
Production Costs
Production Costs		36,465		-		88,719		-
Depreciation		38,032		39,043		72,449		78,948
Gross Margin		(43,122)		(39,043)		(82,510)		(78,948)
Operating Expenses:
General and Administrative		803,440		398,483		1,428,245		575,299
(Gain) / Loss on Sale of Assets		-		(14,500)		-		(14,500)
Total Operating Expenses		803,440		383,983		1,428,245		560,799
Net Loss from Operations		(846,562)		(423,026)		(1,510,755)		(639,747)
Other Income/(Expenses)
Gain on Extinguishment of Debt		40,904		-		40,904		13,882
Foreign Exchange Gain / (Loss)		746		(991)		-		(14,840)
Amortization of Debt Discount		(344,163)		-		(717,133)		-
Interest Expense		(436,011)		(68,637)		(847,334)		(122,211)
Other Income		-		102		-		51,069
Change in Fair Value of Derivative Liability		(180,727)		-		(113,758)		-
Total Other Income /(Expenses)		(919,251)		(69,526)		(1,637,321)		(72,100)
Net Income/(Loss)		(1,765,813)		(492,552)		(3,148,076)		(711,847)
Basic and Diluted Earnings/(Loss) per Share	$	(0.002)	$	(0.001)	$	(0.004)	$	(0.001)
Weighted Average Shares Outstanding:
Basic and Diluted		858,266,075		745,732,651		827,544,045		745,456,406

See accompanying notes to the consolidated financial statements

4

Pacific Gold Corp.
Consolidated Statements of Cash Flows (Unaudited)
	Six Months Ended
	June 30, 2012		June 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(3,148,076)	$	(711,847)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Depreciation and Depletion		72,449		78,948
Non-cash Portion of Interest on Convertible Debt		697,811		-
Issuance of Stock for Services		30,000		-
Asset Write Down		9,893		-
(Gain) / Loss on Sales of Equipment		-		(14,500)
Gain on Extinguishment of Debt		(40,904)		-
Amortization of Debt Discount		717,133		-
Change in Fair Value of Derivative Liability		113,758		-
Changes in:
Inventory		288,982		-
Accounts Receivable		(12,491)		-
Prepaid Expenses		3,662		(2,798)
Accounts Payable		133,263		(157,814)
Accrued Expenses		(10,772)		56,562
Accrued Interest		147,749		119,814
NET CASH USED IN OPERATING ACTIVITIES		(997,543)		(631,635)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase and Development of Property and Equipment		(117,960)		(36,165)
Net Change in Deposits		3,524		(1,574)
Proceeds from Sale of Equipment		-		14,500
NET CASH PROVIDED USED IN INVESTING ACTIVITIES		(114,436)		(23,239)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Related Party Debt		(25,000)		-
Proceeds from Related Party Debt		(46,400)		47,368
Proceeds from Promissory Notes		1,092,000		587,540
Proceeds from Note Payable		-		-
NET CASH PROVIDED USED IN FINANCING ACTIVITIES		1,020,600		634,908
NET CHANGE IN CASH AND CASH EQUIVALENTS		(91,379)		(19,966)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		103,454		29,432
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	12,075	$	9,466
Cash paid during the year for:
Interest	$	-	$	-
Income Taxes	$	-	$	-
Non-cash financing and investing activities:
Assignment of Portion of Promissory Note to Convertible Note	$	969,900	$	-
Assignment of Promissory Notes Accrued Interest to Convertible Note	$	150,300	$	-
Conversion of Notes Payable	$	1,318,036	$	-
Stock Issued for Settlement Payment	$	-	$	60,000
Assignment of Related Party Note to Note Payable	$	239,811	$	-
Accrued Interest Added to Note Principal	$	149,066	$	188,185

See accompanying notes to the consolidated financial statements

5

Pacific Gold Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

June 30, 2012

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Pacific Gold Corp. (“Pacific Gold” or “The Company”) was originally incorporated in Nevada on December 31, 1996 under the name of Demand Financial International, Ltd.  On October 3, 2002, Demand Financial International, Ltd. changed its name to Blue Fish Entertainment, Inc.  On August 5, 2003, the name was changed to Pacific Gold Corp. Pacific Gold is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado.

Basis of Presentation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and the rules of the Securities and Exchange Commission (“SEC”), are expressed in U.S dollars, and should be read in conjunction with the audited financial statements and notes thereto contained in Pacific Gold’s Annual Report filed with the SEC on Form 10-K. The Company’s fiscal year-end is December 31. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure contained in the audited financial statements for 2011 as reported in the Form 10-K have been omitted.

Principle of Consolidation

The consolidated financial statements include all of the accounts of Pacific Gold Corp. and its wholly-owned subsidiaries, Nevada Rae Gold, Inc., Fernley Gold, Inc., Pilot Mountain Resources, Inc. and Pacific Metals Corp. All significant inter-company accounts and transactions have been eliminated.

Reclassification of Accounts

Certain accounts in the prior period have been reclassified to conform to the June 30, 2012 financial statements presentation.

Significant Accounting Principles

Use of Estimates and Assumptions  

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net sales, expenses and costs recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates.

Cash and Cash Equivalents  

For purposes of the statement of cash flows, Pacific Gold considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  The Company has no cash in excess of FDIC federally insured limits as of June 30, 2012.

Revenue Recognition  

Pacific Gold recognizes revenue from the sale of gold when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured, which is determined when it places a sale order of gold from its inventory on hand with the refinery.

6

Accounts Receivable/Bad Debt   

The allowance for doubtful accounts is maintained at a level sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the receivables portfolio.  Management evaluates various factors including expected losses and economic conditions to predict the estimated realization on outstanding receivables. As of June 30, 2012, and December 31, 2011 there was no allowance for bad debts

Inventories

Inventories are stated at the lower of average cost or net realizable value.  Costs included are limited to those directly related to mining.

The major classes of inventories as of June 30, 2012 and December 31, 2011 were:

	June 30, 2012		December 31, 2011
Finished Goods	$	-	$	-
Stockpile Ore		-		288,982
Total	$	-	$	288,982

Property and Equipment

Property and equipment are valued at cost.  Additions are capitalized and maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions of equipment are reflected in operations.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 2 to 10 years.

Mineral Rights

All mine-related costs, other than acquisition costs, are expensed prior to the establishment of proven or probable reserves. Reserves designated as proven and probable are supported by a final feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are legally extractable at the time of reserve determination.  Once proven or probable reserves are established, all development and other site-specific costs are capitalized.

Capitalized development costs and production facilities are depleted using the units-of-production method based on the estimated gold which can be recovered from the ore reserves processed.  There has been no change to the estimate of proven and probable reserves. Lease development costs for non-producing properties are amortized over their remaining lease term if limited.  Maintenance and repairs are charged to expense as incurred.

Intangible Assets

The Company’s Subsidiary, Pacific Metals Inc., has acquired a mining claims database which will be amortized over its estimated useful life of ten years using a straight line method.

Amortization of Intangible Assets

The accumulated amortization of intangible assets with finite useful lives was $83 for the three months ended June 30, 2012.

For these assets, amortization expense over the next five years is expected to be $4,500.

Year	USD
2012	$	500
2013		1,000
2014		1,000
2015		1,000
2016		1,000
	$	4,500

7

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. Pacific Gold assesses recoverability of the carrying value of the asset by estimating the undiscounted future net cash flows, which depend on estimates of metals to be recovered from proven and probable ore reserves, and also identified resources beyond proven and probable reserves, future production costs and future metals prices over the estimated remaining mine life.  If undiscounted cash flows are less that the carrying value of a property, an impairment loss is recognized based upon the estimated expected future net cash flows from the property discounted at an interest rate commensurate with the risk involved.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value.

The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.  The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset.  For Pacific Gold, asset retirement obligations primarily relate to the abandonment of ore-producing property and facilities.

We review the carrying value of our interest in each mineral claim on a quarterly basis to determine whether impairment has incurred in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Where information and conditions suggest impairment, we write-down these properties to net recoverable amount, based on estimated discounted future cash flows. Our estimate of gold price, mineralized materials, operating capital, and reclamation costs are subject to risks and uncertainties affecting the recoverability of our investment in property, plant, and equipment. Although we have made our best estimate of these factors based on current conditions, it is possible that changes could occur in the near term that could adversely affect our estimate of net cash flows expected to be generated from our operating properties and the need for possible asset impairment write-downs.

Where estimates of future net operating cash flows are not available and where other conditions suggest impairment, we assess if carrying value can be recovered from net cash flows generated by the sale of the asset or other means.

Income Taxes

In accordance with ASC Topic 740, Income Taxes Pacific Gold recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered.  Pacific Gold provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

Loss per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities.  For the six months ended June 30, 2012 potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share. As of June 30, 2012, the Company did not have any potentially dilutive common stock equivalents.

Advertising

The Company’s policy is to expense advertising costs as incurred. For the quarters ended June 30, 2012, and June 30, 2011 the Company incurred $23,862 and $4,438, respectively, in advertising costs.

Environmental Remediation Liability

The Company has posted a bond with the State of Nevada in the amount required by the State of Nevada equal to the maximum cost to reclaim land disturbed in its mining process.  The bond requires a quarterly premium to be paid to the State of Nevada Division of Minerals. The Company is current on all payments.  Due to its investment in the bond and the close monitoring of the State of Nevada, the Company believes that it has adequately mitigated any liability that could be incurred by the Company to reclaim lands disturbed in its mining process.

Financial Instruments

The Company’s financial instruments, when valued using market interest rates, would not be materially different from the amounts presented in the consolidated financial statements.

8

Convertible Debentures

Convertible debt is accounted for under ASC 470, Debt – Debt with Conversion and Other Options.  The Company records a beneficial conversion feature (BCF) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of following ASC Topic 718, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt.

The Company accounts for modifications of its Embedded Conversion Features in accordance with ASC 470-50, Debt – Modifications and Exchanges, which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment pursuant to ASC 470-50-40, Debt – Modification and Exchanges – Extinguishment of Debt.

Derivative Liability Related to Convertible Notes and Warrants

The derivative liability related to convertible notes and warrants arises because the conversion price of the Company’s convertible notes is discounted from the market price of the Company’s common stock. Thus, the number of shares that may be issued upon conversion of such notes is indeterminate, which gives rise to the possibility that the Company may not be able to fully settle its convertible note and warrant obligations by the issuance of common stock.

The derivative liability related to convertible notes and warrants is adjusted to fair value as of each date that a note is converted or a warrant is exercised, as well as at each reporting date, using the Black-Scholes pricing model. Any change in fair value between reporting dates that arises because of changes in market conditions is recognized as a gain or loss. To the extent the derivative liability is reduced as a consequence of the conversion of notes or the exercise of warrants, such reduction is recognized as additional paid-in capital as of the conversion or exercise date.

Stock Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation which requires that the fair value compensation cost relating to share-based payment transactions be recognized in financial statements.   Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period.   The fair value of the Company’s stock options is estimated using a Black-Scholes option valuation model. There were no stock options granted during the six months ended June 30, 2012.

Recently Issued Accounting Pronouncements

Recent accounting updates that the Company has adopted or that will be required to adopt in the future are summarized below.

On January 1, 2011, the Company adopted updates issued by the Financial Accounting Standards Board (FASB) to the authoritative hierarchy of GAAP. These changes establish the FASB Accounting Standards Codification^TM (ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. These changes and the Codification itself do not change GAAP. Other than the manner in which new accounting guidance is referenced, the adoption of these changes had no impact on the Consolidated Financial Statements.

The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

9

NOTE 2 - INTERIM FINANCIAL STATEMENTS

The accompanying interim unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

NOTE 3 – PLANT AND EQUIPMENT

The Company wrote off $9,893 of equipment during the six months ended June 30, 2012.

During the six months ended June 30, 2012 the Company purchased equipment for a total cost of $101,962.

During the year ended December 31, 2011, the Company reviewed its equipment requirements and modified its plant.  The Company purchased equipment for a total cost of $66,972, and disposed of redundant equipment for total proceeds of $14,500.

On September 30, 2011, the Company sold all of its plant and equipment at the Black Rock Canyon Mine to its subsidiary, Nevada Rae Gold, Inc. The sale of the assets was recorded at net book value, and no gains or losses were incurred as a result of the sale. The intercompany transaction was eliminated on consolidation. These assets are being depreciated on a straight-line basis over 2 to 10 years depending on the estimated useful life of the asset.

Plant and equipment at June 30, 2012 and December 31, 2011, consisted of the following:

PLANT AND EQUIPMENT	June 30, 2012		December 31, 2011
Building	$	795,355	$	795,355
Accumulated Depreciation		(548,824)		(507,311)
Equipment		1,007,342		916,582
Accumulated Depreciation		(709,383)		(679,837)
	$	544,490	$	524,789

For the three months ended June 30, 2012 and June 30, 2011, depreciation expense was $37,949 and $39,043, respectively.

NOTE 4 – MINERAL RIGHTS

Mineral rights at June 30, 2012 and December 31, 2011 consisted of the following:

MINERAL RIGHTS	June 30, 2012		December 31, 2011
Nevada Rae Gold – Morris Land	$	221,119	$	221,119
Accumulated Depletion		(273)		(273)
Fernley Gold – Lower Olinghouse		129,267		123,267
Pilot Mountain Resources – Project W		193,043		193,043
Pacific Metals – Graysill Claims		33,255		33,255
	$	576,411	$	570,411

As of June 30, 2012 and December 31, 2011 the amount allocated to undeveloped mineral rights was $10,000.

On February 10, 2011, our subsidiary Pilot Mountain Resources Inc. entered into an Option and Asset Sale Agreement ("Agreement") with Pilot Metals Inc., a subsidiary of Black Fire Minerals of Australia, whereby Pilot Metals has secured an option on the Project W Tungsten claims.

The basic monetary terms of the Agreement called for Pilot Metals to pay PMR $50,000 for a 100 day due diligence period on the mining claims. The option payment was received on signing the agreement and recorded as income. Within the initial 100 day option period, Pilot Metals had the right to exercise an additional 24 month option on the claims by paying a further $450,000. During the 24 month option period, Pilot Metals may conduct physical due diligence work including sampling, drilling or any other work on the claims it deems necessary. The right for an additional 24 months option period was exercised and a payment of $450,000 was received on September 9, 2011 and recorded as income.

10

At any point prior to the conclusion of the 24 month option period, Pilot Metals may exercise an option and election to either purchase 100% of the claims, for $1,500,000, paid as three annual installments of $500,000 each, and an additional $1,000,000 payment on the commencement of commercial mining operations, or Pilot Metals may elect to enter into a joint venture with Pilot Mountain Resources for the mining claims by paying a further $1,000,000 to PMR paid as two annual $500,000 installments, with each company owning 50% of the joint venture. The payments made to PMR are subject to a 15% royalty to Platoro West, Inc.

NOTE 5 – SHAREHOLDER NOTE PAYABLE/RELATED PARTY TRANSACTIONS

On December 2, 2011, $1,000,000 in principal and $91,711 in accrued interest of an unsecured loan from a company owned by the Chief Executive Officer was assigned to a non-affiliate debt holder, as discussed in Note 6 – Promissory Notes. As of June 30, 2012, Pacific Gold owes $1,611,908 in principal to a company owned by the Chief Executive Officer. The amount due is represented by a promissory note accruing interest at 10% per year. The note is due on January 2, 2014 and is convertible into shares of common stock of Pacific Gold at $0.05 per share. Interest expense on the loan for the three months ended June 30, 2012 was $26,865. Including interest, the balance on the loan at June 30, 2012 was $1,638,773.

Pacific Gold owes its executives $113,980 and $203,434 in short term notes payable reflected in the accrued expenses for the periods ended June 30, 2012 and December 31, 2011, respectively. These short term notes are interest free and due on demand.

Pacific Gold owes $103,395 to related parties in short term notes payable for the six months ended June 30, 2012. These short term notes are interest free and due on demand.

NOTE 6 – PROMISSORY NOTES

During the six months ended June 30, 2012, the Company received total proceeds of $1,092,000 from non-affiliates. The notes agreements accrue interest at a rate of 10% per annum from the date of the agreements. The principal and accrued interest is due on January 2, 2013.

During the six months ended June 30, 2012, $969,900 in principal and $150,300 in accrued interest on the promissory notes were assigned to a third party that is not affiliated with the Company as discussed in Note 7.

During the six months ended June 30, 2012, $250,000 in principal was converted into 12,500,000 shares of common stock.

As of June 30, 2012, Pacific Gold owes $1,161,125 in promissory notes.

A summary of the notes is as follows:

Balance at January 1, 2011	$	90,000
Proceeds Received		807,427
Promissory Note Assigned		1,000,000
Interest Accrued thru December 31, 2011		143,145
Payments thru December 31, 2011		-
Conversions thru December 31, 2011		(652,527)
Balance at December 31, 2011	$	1,388,045
Proceeds Received		1,092,000
Interest Accrued thru June 30, 2012		51,280
Payments thru June 30, 2012		-
Conversions thru June 30, 2012		(250,000)
Assignment of Promissory Note to Convertible Note thru June 30, 2012		(1,120,200)
Balance at June 30, 2012	$	1,161,125

11

NOTE 7 – FINANCING

On December 2, 2011, the Company agreed to the assignment of $500,000 in principal amount of an outstanding note, which represents a portion of the note the Company issued to the original debt holder on January 2, 2011.  The assignment was to a third party that is not affiliated with the Company.  In connection with the assignment, the Company agreed to various modifications of the note for the benefit of the new holder, which enhance and reset the conversion features of the note and change certain other basic terms of the note.  As a result of the amendments, the note now (i) has a conversion rate of a 45% discount to the daily VWAP (volume – weighted average price, which is a measure of the average price the stock has traded over the trading horizon) price of the common stock based on a five day period prior to the date of conversion, which rate will be subject to certain adjustments, (ii) has an annual interest rate of 12%, due at maturity, (iii) has a new maturity date of December 2, 2012, (iv) permits prepayment only with a premium of 50% of the amount being repaid, (v) has ratchet protection of the conversion anti-dilution provisions for all future issuances or potential issuances of securities by the Company at less than the then conversion rate, and (vi) has additional default provisions, including additional events of default and an default interest rate of 24.99%.  The Company has also agreed that the assigned debt will not be subordinate to new debt, other than purchase money and similar debt, which may have the effect of limiting the company’s access to additional debt capital while the note is outstanding.  Based on the above and without taking into account the conversion of any of the interest to be earned or converted, the principal if fully converted represents the potential issuance of 50,000,000 shares, limited to a maximum conversion right at any one time to 4.99% of the then outstanding shares of common stock of the company.

During the six months ended June 30, 2012, the Company agreed to the assignment of an additional $969,900 in principal and $150,300 in accrued interest of outstanding promissory notes to the third party under the same terms as discussed above. All convertible notes mature within a year of the notes issuance date.

A summary of the carrying value of the notes is as follows:

	Note A		Note B	Note C	Note D	Note E	Note F	Total
	December 2,		January 27,	March 6,	March 30,	April 23,	May 08,
Issuance Date	2011		2012	2012	2012	2012	2012
Face Value – Convertible Note	$	500,000	-	-	-	-	-	500,000
Add: Relative fair value of :
Derivative Liability		100,699	-	-	-	-	-	100,699
Conversions to shares thru December 31, 2011		(140,000)	-	-	-	-	-	(400,000)
Unamortized debt discount at December 31, 2011		(329,425)	-	-	-	-	-	(329,425)
Accrued Interest to December 31, 2011		4,027	-	-	-	-	-	4,027
Carrying amount of convertible note, net on December 31, 2011	$	135,301	-	-	-	-	-	135,301
Add: Face Value – Convertible Notes assigned		-	150,000	75,000	162,102	-	-	387,102
Add: Relative fair value of:
Derivative Liability		(100,699)	235,407	133,493	294,731	-	-	562,932
Discount amortization thru  March 31, 2012		329,425	-	-	-	-	-	329,425
Unamortized debt discount at March 31, 2012		-	(112,706)	(68,750)	(162,102)	-	-	(343,558)
Interest Accrued thru March 31, 2012		4,473	3,015	750	-	-	-	8,238
Conversions to shares thru March 31, 2012		(368,500)	-	-	-	-	-	(368,500)
Carrying amount of convertible notes, net on March 31, 2012	$	-	275,716	140,493	294,731	-	-	710,940
Add: Face Value – Convertible Notes assigned		-	-	-	-	233,098	500,000	733,098
Add: Relative fair value of:
Derivative Liability		-	(235,407)	(133,493)	(11,676)	407,024	872,791	899,239
Discount amortization thru  June 30, 2012		-	112,706	68,750	40,525	-	-	221,981
Unamortized debt discount at June 30, 2012		-	-	-	-	(194,248)	(416,667)	(610,915)
Interest Accrued thru June 30, 2012		-	-	1,173	4,912	4,685	10,050	20,820
Conversions to shares thru June 30, 2012		-	(153,015)	(76,923)	-	-	-	(229,938)
Carrying amount of convertible notes, net on June 30, 2012	$	-	-	-	328,492	450,559	966,174	1,745,225

NOTE 8 – COMMON STOCK

For the six months ended June 30, 2012, 79,564,926 common shares were issued for $585,000 in principal and $13,438 in accrued interest on the convertible notes discussed in Note 7 above.

For the six months ended June 30, 2012, 12,500,000 shares of common stock were issued for $250,000 in principal on the promissory note issued December 2, 2012.

For the six months ended June 30, 2012, 3,000,000 shares of common stock were issued for services valued at $30,000.

12

In 2011, 2,000,000 common shares were issued as part of the settlement payment of $60,000.

In 2011, 13,050,580 common shares were issued for conversion of Promissory notes for $652,527 in principal.

In 2011, 15,590,954 common shares were issued for conversion of the convertible note for $140,000 in principal.

In 2011, 1,000,000 common stock shares were issued as a royalty payment of $20,000 for rent on behalf of the Company’s subsidiary, Nevada Rae Gold.

NOTE 9 – OPERATING LEASES

The Company has leased approximately 440 acres of privately owned land adjacent to its staked prospects from Corporate Creditors Committee LLC, by lease dated October 1, 2003. The Company paid an advance royalty of $7,500 for the first year, which amount is increased by $2,500 in each of the next five years to be $20,000 in the sixth year.  For the last four years of the lease, the advance royalty is $20,000 per year.  If the lease is renewed, the annual advance royalty is $20,000.  The advance royalty is credited to and recoverable from the production rental amounts. The royalty is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.

In 2011, Nevada Rae Gold (“NRG”) entered into a lease agreement to lease a 100% interest in 45 mining claims covering approximately 2,000 acres in Lander County, Nevada. The lease calls for NRG to pay the claim owners a gross royalty of 4% on gold sales or $0.50 per yard of gravels mined, whichever is greater. NRG will be required to make annual minimum advance royalty payments of $20,000. The term of the lease is for 10 years with an option for NRG to extend the term for a further 10 years.

The following is a schedule by years of future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of June 30, 2012:

Year ended	Total
December 31, 2012	$	40,000
December 31, 2013		40,000
December 31, 2014		40,000
December 31, 2015		40,000
Thereafter		40,000
Total	$	200,000

Nevada Rae Gold has a lease for its mobile office at a cost of approximately $407 per month. This lease was accounted for as an operating lease and will expire in July 2012. Rental expense for the six months ended June 30, 2012 was $2,442.

NOTE 10 – LEGAL PROCEEDINGS

On March 8, 2012, Pacific Gold Corp. (the “Company”) received a complaint that was filed in the United States District Court in Newark New Jersey, Case number 2:12-cv-01285-ES-CLW entitled Black Mountain Equities Inc. v. Pacific Gold Corp. The claimant seeks monetary damages of $445,090.90 based on an assertion that the exercise price of a warrant, issued on February 27, 2007, that it holds, and that the claimant purchased just prior to the warrants expiration, was not properly adjusted and that the Company's refusal to issue the shares underlying the warrant on exercise of the warrant at the asserted adjusted price. The Company denies that there was a price adjustment as asserted by the plaintiff and intends to defend itself vigorously in the action.

NOTE 11 – GOING CONCERN

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 30, 2012, the Company had an accumulated deficit of $30,333,258, negative working capital of $4,476,117, and negative cash flows from operations of $997,543, raising substantial doubt about its ability to continue as a going concern. During the quarter ended June 30, 2012, the Company financed its operations through the sale of securities and issuance of debt.

Management’s plan to address the Company’s ability to continue as a going concern includes obtaining additional funding from the sale of the Company’s securities and establishing revenues.  Although management believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove successful. Should we be unsuccessful, the Company may need to discontinue its operations.

13

NOTE 12 – SUBSEQUENT EVENTS

Subsequent to quarter end, the debenture holder of the convertible note converted $111,602 in principal into 21,039,117 shares of common stock.

Subsequent to quarter end, the Company received additional proceeds of $167,000 in the form of promissory notes

Subsequent to quarter end, the Company issued $53,000 in a convertible note to a non affiliate.

The company evaluated subsequent events through August 14, 2012, the date the financial statements were issued.

14

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

Forward Looking Statements

From time to time, we or our representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but not limited to, press releases, oral statements made with the approval of an authorized executive officer or in various filings made by us with the SEC. Words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "project or projected", or similar expressions are intended to identify "forward-looking statements". Such statements are qualified in their entirety by reference to and are accompanied by the above discussion of certain important factors that could cause actual results to differ materially from such forward-looking statements.

Management is currently unaware of any trends or conditions other than those previously mentioned in this management's discussion and analysis that could have a material adverse effect on our consolidated financial position, future results of operations, or liquidity. However, investors should also be aware of factors that could have a negative impact on our prospects and the consistency of progress in the areas of revenue generation, liquidity, and generation of capital resources. These include: (i) variations in revenue, (ii) possible inability to attract investors for its equity securities or otherwise raise adequate funds from any source should the company seek to do so, (iii) increased governmental regulation, (iv) increased competition, (v) unfavorable outcomes to litigation involving the company or to which the company may become a party in the future and, (vi) a very competitive and rapidly changing operating environment.

The above identified risks are not all inclusive. New risk factors emerge from time to time and it is not possible for management to predict all of such risk factors, nor can it assess the impact of all such risk factors on the company's business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results.

The financial information set forth in the following discussion should be read with the consolidated financial statements of Pacific Gold included elsewhere herein.

Introduction

Pacific Gold is engaged in the identification, acquisition, and development of mining prospects believed to have known gold and/or tungsten mineral deposits. The main objective is to identify and develop commercially viable mineral deposits on prospects over which the company has rights that could produce revenues. These types of prospects may also contain mineral deposits of metals often found with gold and/or tungsten which also may be worth processing. Development of commercially viable mineral deposits of any metal includes a high degree of risk which careful evaluation, experience and factual knowledge may not eliminate, and therefore, we may never produce any significant revenues.

Pacific Gold Corp. has four wholly-owned operating subsidiaries: Nevada Rae Gold, Inc., Fernley Gold, Inc., Pilot Mountain Resources Inc., and Pacific Metals Corp., through which it holds various prospects in Nevada and Colorado. The Company intends to acquire through staking, purchasing and/or leasing arrangements additional prospects, from time to time, in which there may be gold, tungsten and/or other mineral deposit potential.

Nevada Rae Gold, Inc.

NRG has permitted the Black Rock Canyon Mine (“BRCM”) with the BLM and the Nevada State Division of Environmental Protection (NDEP). NRG built a gravel screening facility at the Black Rock Canyon Mine. The plant is in good physical condition. The plant consists of a 60 foot by 90 foot by 30 foot steel building with offices, plumbing, electrical and a sloped floor for drainage; additionally the site has fuel storage, settling ponds, security offices and the entire are is fenced in for security along with exterior lighting and security cameras that allow management remote access viewing of the site from any internet access point in the world. The plant equipment primarily consists of a grizzly hopper, conveyors, trommels, high gravity bowls, sand screw, and a variety of pumps, cyclones and small equipment. The Company currently plans to rent or lease earth moving equipment including bull dozers, haul trucks, excavators, front end loaders and other smaller pieces. The plant is serviced via power lines provided by NV Energy and via two water wells that the Company owns.

In general, the operations will require the excavation of the gravel within the prospect.  Typically, the vegetation and minor soil cover will be stripped and side cast for future reclamation.  The mineral deposit bearing gravel will be dug with an excavator until bedrock is reached, and material will be prescreened and then hauled to the mill site. The mill area will be about three miles away from the mine site. The mill site is equipped with two functioning wells for process water and is connected to the power grid.  The mill and trommel unit are set up on the private, fee land owned by the company.

15

During the second quarter of 2012, the Company’s new Operation Manager began work at the BRCM. New rental equipment arrived, preparations for new mining began and processing of stockpiled ores was undertaken.

During the quarter the Company screened approximately 7,100 cubic yards from the stockpile and newly mined gravels, in approximately 60 operating hours, and sold approximately 25 ounces of gold.

Through June 30, 2012 the Company has invested approximately $10,492,900 into NRG.

Pilot Mountain Resources Inc.

In the second quarter of 2012, Pilot Metals continued work on its evaluation of Project W. The Company has received regular reports from management at Project W during the quarter. Pilot Metals reported that the resource estimate appears to be 36% larger than their original estimates. Additionally, Pilot Metals has begun working on their Metallurgical review and Scoping study.

Fernley Gold, Inc.

There were no material changes to report for Fernley Gold during the second quarter.

Financial Condition and Changes in Financial Condition

The Company had revenues from the sale of gold in the quarter ended June 30, 2012 of $31,375, with a negative gross margin of $43,122.

Operating expenses for the quarter ended June 30, 2012, totaled $803,440. The Company incurred labor, fuel and productions costs associated with the various mining activities. Equipment operating costs, tools and materials of $11,105 were incurred primarily to prepare the plant and equipment at Black Rock Canyon for operations.  Legal and professional fees of $76,948 were incurred for services performed with respect to acquisitions and mining prospect evaluation, as well as SEC reporting compliance and accounting fees.  The Company also incurred expenses related to geological studies, fieldwork, site visits, preparation of mining permit applications and consulting fees of $59,079.  Interest expense totaled $379,003; of this amount, $354,315 was a non-cash expense that included amounts for interest on the convertible debentures that were not paid out in cash, $24,688 was interest accrued on debt and interest expensed for late fees on trade payables for the quarter. The remaining expenses relate to general administrative expenses. We believe we will incur substantial expenses for the near term as we build up operations at the Black Rock Canyon Mine and progress with our evaluations of future mining prospects.

The Company had no revenues from the sale of gold in the quarter ended June 30, 2011.  

Operating expenses for the quarter ended June 30, 2011, totaled $383,983.  The Company incurred labor, fuel and productions costs associated with the various mining activities. Equipment operating costs, tools and materials of $38,500 were incurred primarily to prepare the plant and equipment at Black Rock Canyon for operations.  Legal and professional fees of $48,483 were incurred for services performed with respect to acquisitions and mining prospect evaluation, as well as SEC reporting compliance and accounting fees.  The Company also incurred expenses related to geological studies, fieldwork, site visits, preparation of mining permit applications and consulting fees of $37,463.  Interest expense totaled $68,637 for the quarter. The remaining expenses relate to general administrative expenses. We believe we will incur substantial expenses for the near term as we build up operations at the Black Rock Canyon Mine and progress with our evaluations of future mining prospects.

Liquidity and Capital Resources

Since inception to June 30, 2012, we have funded our operations from the sale of securities, issuance of debt and loans from shareholders.

As of June 30, 2012, our assets totaled $1,481,746, which consisted primarily of mineral rights, land and water rights, and related equipment. Our total liabilities were $6,165,368 which primarily consisted of note payable to a shareholder of $1,611,908, accounts payable and accrued expenses of $1,516,850, notes payable to related parties of $103,395, and promissory notes of $1,117,000. We had an accumulated deficit of $30,333,258 and a working capital deficit of $4,476,117 at June 30, 2012.

At June 30, 2012, the balance of the note from a shareholder was $1,638,773 including accrued interest. The note bears interest at the rate of 10% and is due on January 2, 2013.

16

For the six months ended June 30, 2012, the convertible note holder has converted $585,000 in principal and $13,438 in accrued interest on the Convertible notes. An additional $1,120,200 was assigned to the convertible notes as discussed in note 7 to the financial statements. The face value of the notes including accrued interest at June 30, 2012 was $914,847. The notes are convertible into common shares of the company at a conversion rate of a 45% discount to the daily VWAP price of the common stock based on a five day period prior to the date of conversion, which rate will be subject to certain adjustments. The notes bear interest at the rate of 12%, and due within one year of the notes issuance date.

For the six months ended June 30, 2012, the Company issued additional $1,092,000 in promissory notes to non–related party. The promissory notes are due on January 2, 2013. Interest expense on the promissory notes accrues at a rate of 10% per annum. Interest accrued on the notes for the three months ended was $51,280. At June 30, 2012 the balance on the promissory notes was $1,161,125 including accrued interest, representing promissory notes owed to two individual debt holders.

For the six months ended June 30, 2011, the Company has made payments of $46,400 towards related party notes payable. The notes are due on demand and are interest free. At June 30, 2012, the balance on the related party note was $103,395.

Our independent auditors, in their report on the financial statements, have indicated that the Company has experienced recurring losses from operations and may not have enough cash and working capital to fund its operations beyond the very near term, which raises substantial doubt about our ability to continue as a going concern. Management has made a similar note in the financial statements.  As indicated herein, we have need of capital for the implementation of our business plan, and we will need additional capital for continuing our operations.  We do not have sufficient revenues to pay our expenses of operations.  Unless the company is able to raise working capital, it is likely that the Company either will have to cease operations or substantially change its methods of operations or change its business plan.

New Accounting Pronouncements

Pacific Gold does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company, or any of its subsidiaries’ operating results, financial position, or cash flow.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

N/A

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in company reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer (the “Certifying Officers”), as appropriate to allow timely decisions regarding required disclosure.

As required by Rules 13a-15 and 15d-15 under the Exchange Act, the Certifying Officers carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2012. Their evaluation was carried out with the participation of other members of the Company’s management. Based on an evaluation conducted by management, of the effectiveness of the design and operation of our disclosure controls and procedures, as required by Exchange Act Rule 13a-15(e) management concluded that our disclosure controls and procedures were ineffective as of June 30, 2012.  Our disclosure controls and procedures did not ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act was (i) recorded, processed, summarized and reported within the time periods specified by the SEC rules, and (ii) the necessary information was not accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure as specified by the SEC rules and forms.

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company's principal executive and principal financial officers and effected by the Company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States and includes those policies and procedures that:

(a) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

17

(b) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and

(c) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce this risk.

Based on its assessment, management has concluded that the Company's disclosure controls and procedures and internal control over financial reporting are ineffective, based in part on the absence of separation of duties with respect to internal financial controls of the Company

The Board of Directors has assigned a priority to the short-term and long-term improvement of our internal control over financial reporting. Notwithstanding this commitment, given the limited operations and consequently the limited revenues and capital resources, the Board of Directors and management are not now able to engage additional personnel to remedy the processes that would eliminate the issues that may arise due to the absence of separation of duties within the financial reporting functions.  Therefore, there is not specific timing for the remediation procedures.  Additionally, the Board of Directors will work with management to continuously review controls and procedures to identified deficiencies and implement remediation within our internal controls over financial reporting and our disclosure controls and procedures.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On March 8, 2012, Pacific Gold Corp. (the “Company”) received a complaint that was filed in the United States District Court in Newark New Jersey, Case number 2:12-cv-01285-ES-CLW entitled Black Mountain Equities Inc. v Pacific Gold Corp. The claimant seeks monetary damages of $445,090.90 based on an assertion that the exercise price of a warrant, issued on February 27, 2007, that it holds, and that the claimant purchased just prior to the warrants expiration, was not properly adjusted and that the Company's refusal to issue the shares underlying the warrant on exercise of the warrant at the asserted adjusted price. The Company denies that there was a price adjustment as asserted by the plaintiff and intends to defend itself vigorously in the action.

From time to time the Company is involved in minor trade, employment and other operational disputes, none of which have or are expected to have a material impact on the current or future financial statements or operations.

ITEM 1A.  RISK FACTORS

N/A

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the quarter the Company issued a total of 33,336,074 shares of common stock for debt repayment of $225,000 in principal and $4,938 in accrued interest.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

18

ITEM 4. MINE SAFETY DISCLOSURES

Mine /Operating Name MSHA ID #

Section 104 S & S Citations (#)

Section 104 (b) Orders (#)

Section 104(d) Citations & Orders (#)

Section 110(b)(2) Violations (#)

Section 107 (a) Orders (#)

Value of MSHA Assessments Proposed ($)

Mining Related Facilities (#)

Received Notice of Pattern of Violations Section 104 (e) (Yes / No)

Received Notice of Potential to have Pattern Under Section 104 (e) (Yes / No)

Legal Actions Pending as of Last Day of Period (#)

Legal Actions Initiated During Period (#)

Legal Actions Resolved During Period (#)

Black Rock Canyon / 2602572

0

0

0

0

0

$0

1

No

No

0

0

0

The Black Rock Canyon mine did not receive any citations for the six months ended June 30, 2012. 

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

31.1

Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002. *

31.2

Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002. *

32.1

Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002. *

*    Filed herewith

19

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	PACIFIC GOLD CORP.
By:	/s/  Robert Landau
	Robert Landau, President
	(Chief Executive Officer)
Date:	August  20, 2012

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signatures	Title	Date
/s/ Robert Landau	Chief Executive Officer, Chief Financial Officer and Director	August 20, 2012
Robert Landau
/s/ Mitchell Geisler	Secretary, Treasurer and Director	August 20, 2012
Mitchell Geisler

20

EX-31

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Robert Landau, certify that:

1.

 I have reviewed the report on Form 10-Q, as amended, of Pacific Gold Corp.

2.

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

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15 (f)) for the registrant and have:

(a)

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

(b)

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

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

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

5.

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

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 20, 2012	/s/ Robert Landau
	Robert Landau
	Chief Executive Officer

EX-31

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Robert Landau, certify that:

1.

 I have reviewed the report on Form 10-Q, as amended, of Pacific Gold Corp.

2.

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

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15 (f)) for the registrant and have:

(a)

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

(b)

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

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

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

5.

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

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 20, 2012	/s/ Robert Landau
	Robert Landau
	Chief Financial Officer

EX-32

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the report of Pacific Gold Corp. on Form 10-Q, as amended, for the period ended June 30, 2012 as filed with the Securities and Exchange Commission (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.

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

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date:  August 20, 2012	/s/ Robert Landau
	Name:  Robert Landau
	Title:  Chief Executive Officer

Date: August 20, 2012	/s/ Robert Landau
	Name:  Robert Landau
	Title:  Chief Financial Officer

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Operating Leases (Details Narrative) (USD $)	1 Months Ended	6 Months Ended	12 Months Ended
	Oct. 31, 2003	Jun. 30, 2012	Dec. 31, 2011
Leases [Abstract]
Operating lease with Corporate Creditors Committee LLC	The Company has leased approximately 440 acres of privately owned land adjacent to its staked prospects from Corporate Creditors Committee LLC, by lease dated October 1, 2003. The Company paid an advance royalty of $7,500 for the first year, which amount is increased by $2,500 in each of the next five years to be $20,000 in the sixth year. For the last four years of the lease, the advance royalty is $20,000 per year. If the lease is renewed, the annual advance royalty is $20,000. The advance royalty is credited to and recoverable from the production rental amounts. The royalty is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.
Nevada Rae Gold Lease			In 2011, Nevada Rae Gold ("NRG") entered into a lease agreement to lease a 100% interest in 45 mining claims covering approximately 2,000 acres in Lander County, Nevada. The lease calls for NRG to pay the claim owners a gross royalty of 4% on gold sales or $0.50 per yard of gravels mined, whichever is greater. NRG will be required to make annual minimum advance royalty payments of $20,000. The term of the lease is for 10 years with an option for NRG to extend the term for a further 10 years.
Mobile office monthly rent		$407 per month
Mobile office lease expiration date		Jul. 31, 2012
Mobile office rent expense		$ 2,442

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Promissory Notes (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Debt Disclosure [Abstract]
Promissory Notes Balance	$ 1,161,125	$ 1,388,045	$ 90,000
Proceeds Received from Promissory Notes	1,092,000	807,427
Promissory Note Assigned		1,000,000
Interest Accrued on Promissory notes	51,280	143,145
Payments on Promissory Notes	0	0
Promissory Notes Converted	(250,000)	(652,527)
Assignment of Promissory Note to Convertible Note	$ (1,120,200)	$ 0

XML

Summary of Accounting Policies and Basis of Presentation (Details 1) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished Goods	$ 0	$ 0
Stockpile Ore	0	288,982
Total Inventory	$ 0	$ 288,982

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Subsequent Events (Details Narrative) (USD $)	1 Months Ended
	Jul. 31, 2012
Subsequent Events [Abstract]
Debenture principal converted to common shares	$ 111,602
Debenture accrued interest converted to common shares	21,039,117
Proceeds from promissory note	167,000
Convertible note issued to non affiliate	$ 53,000

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Common Stock (Details Narrative) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Equity [Abstract]
Common shares issued on conversion of convertible note payable	79,564,926	15,590,954
Value of common shares issued on conversion of convertible note payable principal	$ 585,000	$ 140,000
Value of common shares issued on conversion of convertible note payable accrued interest	13,438
Common shares issued on conversion of promissory note payable	12,500,000	13,050,580
Value of common shares issued on conversion of promissory payable principal	250,000	652,527
Common shares issued for services	3,000,000
Value of common shares issued for services	30,000
Common shares issued in settlement of debt		2,000,000
Value of common shares issued in settlement of debt		60,000
Common shares issued as royalty payment		1,000,000
Value of common shares issued as royalty payment		$ 20,000

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Mineral Rights

6 Months Ended

Jun. 30, 2012

Mineral Industries Disclosures [Abstract]

Mineral Rights

NOTE 4 – MINERAL RIGHTS

Mineral rights at June 30, 2012 and December 31, 2011 consisted of the following:

MINERAL RIGHTS	June 30, 2012		December 31, 2011
Nevada Rae Gold – Morris Land	$	221,119	$	221,119
Accumulated Depletion		(273)		(273)
Fernley Gold – Lower Olinghouse		129,267		123,267
Pilot Mountain Resources – Project W		193,043		193,043
Pacific Metals – Graysill Claims		33,255		33,255
	$	576,411	$	570,411

As of June 30, 2012 and December 31, 2011 the amount allocated to undeveloped mineral rights was $10,000.

On February 10, 2011, our subsidiary Pilot Mountain Resources Inc. entered into an Option and Asset Sale Agreement ("Agreement") with Pilot Metals Inc., a subsidiary of Black Fire Minerals of Australia, whereby Pilot Metals has secured an option on the Project W Tungsten claims.

The basic monetary terms of the Agreement called for Pilot Metals to pay PMR $50,000 for a 100 day due diligence period on the mining claims. The option payment was received on signing the agreement and recorded as income. Within the initial 100 day option period, Pilot Metals had the right to exercise an additional 24 month option on the claims by paying a further $450,000. During the 24 month option period, Pilot Metals may conduct physical due diligence work including sampling, drilling or any other work on the claims it deems necessary. The right for an additional 24 months option period was exercised and a payment of $450,000 was received on September 9, 2011 and recorded as income.

At any point prior to the conclusion of the 24 month option period, Pilot Metals may exercise an option and election to either purchase 100% of the claims, for $1,500,000, paid as three annual installments of $500,000 each, and an additional $1,000,000 payment on the commencement of commercial mining operations, or Pilot Metals may elect to enter into a joint venture with Pilot Mountain Resources for the mining claims by paying a further $1,000,000 to PMR paid as two annual $500,000 installments, with each company owning 50% of the joint venture. The payments made to PMR are subject to a 15% royalty to Platoro West, Inc.

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Plant and Equipment (Details Narrative) (USD $)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Dec. 31, 2011
Mineral Rights, Plant and Equipment
Equipment purchased			$ 101,962	$ 66,972
Equipment Sold				14,500
Property plant and equipment estimated useful lives			2 to 10 years
Depreciation expense	$ 37,949	$ 39,043

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Plant and Equipment (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Mineral Rights, Plant and Equipment
Building	$ 795,355	$ 795,355
Accumulated Depreciation - Buildings	(548,824)	(507,311)
Equipment	1,007,342	916,582
Accumulated Depreciation - Equipment	(709,383)	(679,837)
Total Plant and Equipment, net	$ 544,490	$ 524,789

XML

Mineral Rights (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Nevada Rae Gold - Morris Land
Mineral Rights	$ 221,119	$ 221,119
Accumulated Depletion - Mineral Rights	(273)	(273)
Fernley Gold - Lower Olinghouse
Mineral Rights	129,267	123,267
Pilot Mountain Resources - Project W
Mineral Rights	193,043	193,043
Pacific Metals - Graysill Claims
Mineral Rights	$ 33,255	$ 33,255

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Mineral Rights (Details Narrative) (USD $)	1 Months Ended
	Sep. 30, 2011	Feb. 28, 2011	Jun. 30, 2012	Dec. 31, 2011
Mineral Industries Disclosures [Abstract]
Allocation of costs to undeveloped mineral rights			$ 10,000	$ 10,000
Pilot Mountain Resources asset sale agreement		On February 10, 2011, our subsidiary Pilot Mountain Resources Inc. entered into an Option and Asset Sale Agreement ("Agreement") with Pilot Metals Inc., a subsidiary of Black Fire Minerals of Australia, whereby Pilot Metals has secured an option on the Project W Tungsten claims. The basic monetary terms of the Agreement called for Pilot Metals to pay PMR $50,000 for a 100 day due diligence period on the mining claims. The option payment was received on signing the agreement and recorded as income. Within the initial 100 day option period, Pilot Metals had the right to exercise an additional 24 month option on the claims by paying a further $450,000. During the 24 month option period, Pilot Metals may conduct physical due diligence work including sampling, drilling or any other work on the claims it deems necessary. The right for an additional 24 months option period was exercised and a payment of $450,000 was received on September 9, 2011 and recorded as income. At any point prior to the conclusion of the 24 month option period, Pilot Metals may exercise an option and election to either purchase 100% of the claims, for $1,500,000, paid as three annual installments of $500,000 each, and an additional $1,000,000 payment on the commencement of commercial mining operations, or Pilot Metals may elect to enter into a joint venture with Pilot Mountain Resources for the mining claims by paying a further $1,000,000 to PMR paid as two annual $500,000 installments, with each company owning 50% of the joint venture. The payments made to PMR are subject to a 15% royalty to Platoro West, Inc.
Proceeds received for due diligence period	$ 450,000	$ 50,000

XML

Plant and Equipment

6 Months Ended

Jun. 30, 2012

Mineral Rights, Plant and Equipment

Plant and Equipment

NOTE 3 – PLANT AND EQUIPMENT

The Company wrote off $9,893 of equipment during the six months ended June 30, 2012.

During the six months ended June 30, 2012 the Company purchased equipment for a total cost of $101,962.

During the year ended December 31, 2011, the Company reviewed its equipment requirements and modified its plant.  The Company purchased equipment for a total cost of $66,972, and disposed of redundant equipment for total proceeds of $14,500.

On September 30, 2011, the Company sold all of its plant and equipment at the Black Rock Canyon Mine to its subsidiary, Nevada Rae Gold, Inc. The sale of the assets was recorded at net book value, and no gains or losses were incurred as a result of the sale. The intercompany transaction was eliminated on consolidation. These assets are being depreciated on a straight-line basis over 2 to 10 years depending on the estimated useful life of the asset.

Plant and equipment at June 30, 2012 and December 31, 2011, consisted of the following:

PLANT AND EQUIPMENT	June 30, 2012		December 31, 2011
Building	$	795,355	$	795,355
Accumulated Depreciation		(548,824)		(507,311)
Equipment		1,007,342		916,582
Accumulated Depreciation		(709,383)		(679,837)
	$	544,490	$	524,789

For the three months ended June 30, 2012 and June 30, 2011, depreciation expense was $37,949 and $39,043, respectively.

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Shareholder Note Payable Related Party Transactions (Details Narrative) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011	Dec. 02, 2011
Related Party Transactions [Abstract]
Unsecured loan payable assigned to non-affiliate				$ 1,000,000
Accrued interest on unsecured loan payable assigned to non-affiliate				91,711
Promissory note to related party interest rate		10.00%
Due date of promissory note to related party		Jan. 02, 2014
Promissory note to related party conversion rate to shares common stock	$ 0.05	$ 0.05
Interest expense on promissory note to related party	26,865
Total promissory note to related party including accrued interest	1,638,773	1,638,773
Short-term notes payable to related parties	113,980	113,980	203,434
Total short-term notes payable to related parties	$ 103,395	$ 103,395

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Legal Proceedings (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
Black Mountain Equities Inc. complaint	$ 445,090

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Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 12,075	$ 103,454
Accounts Receivable	31,335	18,844
Inventory	0	288,982
Prepaid Expenses	7,068	10,730
Total Current Assets	50,478	422,010
Mineral Rights, Plant and Equipment
Mineral rights, net	576,411	570,411
Plant and Equipment, net	544,490	524,789
Water Rights and Wells	90,000	90,000
Land	13,670	13,670
Total Mineral Rights, Plant and Equipment, net	1,224,571	1,198,870
Intangibles
Total Intangibles, net	9,917	0
Other Assets:
Deposits	0	3,524
Reclamation Bond	196,780	196,780
Total Other Assets	196,780	200,304
TOTAL ASSETS	1,481,746	1,821,184
Current Liabilities:
Accounts Payable	747,589	655,230
Accrued Expenses	769,261	780,033
Notes Payable - Related Parties	103,395	414,606
Convertible Notes, net	162,708	30,575
Accrued Interest - Convertible Note	19,647	4,027
Derivative Liability	1,562,870	100,699
Accrued Interest - Promissory Notes	44,125	143,145
Promissory Notes	1,117,000	1,244,900
Total Current Liabilities	4,526,595	3,373,215
Long Term Liabilities:
Accrued Interest	26,865	108,521
Notes Payable	1,611,908	1,223,031
Total Liabilities	6,165,368	4,704,767
Stockholders' Deficit:
Preferred Stock	0	0
Common Stock	870,440	775,374
Additional Paid-in Capital	24,779,196	23,526,225
Accumulated Deficit	(30,333,258)	(27,185,182)
Total Stockholders' Deficit	(4,683,622)	(2,883,583)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 1,481,746	$ 1,821,184

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Summary of Accounting Policies and Basis of Presentation

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Accounting Policies and Basis of Presentation

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Pacific Gold Corp. (“Pacific Gold” or “The Company”) was originally incorporated in Nevada on December 31, 1996 under the name of Demand Financial International, Ltd.  On October 3, 2002, Demand Financial International, Ltd. changed its name to Blue Fish Entertainment, Inc.  On August 5, 2003, the name was changed to Pacific Gold Corp. Pacific Gold is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado.

Basis of Presentation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and the rules of the Securities and Exchange Commission (“SEC”), are expressed in U.S dollars, and should be read in conjunction with the audited financial statements and notes thereto contained in Pacific Gold’s Annual Report filed with the SEC on Form 10-K. The Company’s fiscal year-end is December 31. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure contained in the audited financial statements for 2011 as reported in the Form 10-K have been omitted.

Principle of Consolidation

The consolidated financial statements include all of the accounts of Pacific Gold Corp. and its wholly-owned subsidiaries, Nevada Rae Gold, Inc., Fernley Gold, Inc., Pilot Mountain Resources, Inc. and Pacific Metals Corp. All significant inter-company accounts and transactions have been eliminated.

Reclassification of Accounts

Certain accounts in the prior period have been reclassified to conform to the June 30, 2012 financial statements presentation.

Significant Accounting Principles

Use of Estimates and Assumptions  

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net sales, expenses and costs recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates.

Cash and Cash Equivalents  

For purposes of the statement of cash flows, Pacific Gold considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  The Company has no cash in excess of FDIC federally insured limits as of June 30, 2012.

Revenue Recognition  

Pacific Gold recognizes revenue from the sale of gold when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured, which is determined when it places a sale order of gold from its inventory on hand with the refinery.

Accounts Receivable/Bad Debt   

The allowance for doubtful accounts is maintained at a level sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the receivables portfolio.  Management evaluates various factors including expected losses and economic conditions to predict the estimated realization on outstanding receivables. As of June 30, 2012, and December 31, 2011 there was no allowance for bad debts

Inventories

Inventories are stated at the lower of average cost or net realizable value.  Costs included are limited to those directly related to mining.

The major classes of inventories as of June 30, 2012 and December 31, 2011 were:

	June 30, 2012		December 31, 2011
Finished Goods	$	-	$	-
Stockpile Ore		-		288,982
Total	$	-	$	288,982

Property and Equipment

Property and equipment are valued at cost.  Additions are capitalized and maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions of equipment are reflected in operations.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 2 to 10 years.

Mineral Rights

All mine-related costs, other than acquisition costs, are expensed prior to the establishment of proven or probable reserves. Reserves designated as proven and probable are supported by a final feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are legally extractable at the time of reserve determination.  Once proven or probable reserves are established, all development and other site-specific costs are capitalized.

Capitalized development costs and production facilities are depleted using the units-of-production method based on the estimated gold which can be recovered from the ore reserves processed.  There has been no change to the estimate of proven and probable reserves. Lease development costs for non-producing properties are amortized over their remaining lease term if limited.  Maintenance and repairs are charged to expense as incurred.

Intangible Assets

The Company’s Subsidiary, Pacific Metals Inc., has acquired a mining claims database which will be amortized over its estimated useful life of ten years using a straight line method.

Amortization of Intangible Assets

The accumulated amortization of intangible assets with finite useful lives was $83 for the three months ended June 30, 2012.

For these assets, amortization expense over the next five years is expected to be $4,500.

Year	USD
2012	$	500
2013		1,000
2014		1,000
2015		1,000
2016		1,000
	$	4,500

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. Pacific Gold assesses recoverability of the carrying value of the asset by estimating the undiscounted future net cash flows, which depend on estimates of metals to be recovered from proven and probable ore reserves, and also identified resources beyond proven and probable reserves, future production costs and future metals prices over the estimated remaining mine life.  If undiscounted cash flows are less that the carrying value of a property, an impairment loss is recognized based upon the estimated expected future net cash flows from the property discounted at an interest rate commensurate with the risk involved.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value.

The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.  The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset.  For Pacific Gold, asset retirement obligations primarily relate to the abandonment of ore-producing property and facilities.

We review the carrying value of our interest in each mineral claim on a quarterly basis to determine whether impairment has incurred in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Where information and conditions suggest impairment, we write-down these properties to net recoverable amount, based on estimated discounted future cash flows. Our estimate of gold price, mineralized materials, operating capital, and reclamation costs are subject to risks and uncertainties affecting the recoverability of our investment in property, plant, and equipment. Although we have made our best estimate of these factors based on current conditions, it is possible that changes could occur in the near term that could adversely affect our estimate of net cash flows expected to be generated from our operating properties and the need for possible asset impairment write-downs.

Where estimates of future net operating cash flows are not available and where other conditions suggest impairment, we assess if carrying value can be recovered from net cash flows generated by the sale of the asset or other means.

Income Taxes

In accordance with ASC Topic 740, Income Taxes Pacific Gold recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered.  Pacific Gold provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

Loss per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities.  For the six months ended June 30, 2012 potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share. As of June 30, 2012, the Company did not have any potentially dilutive common stock equivalents.

Advertising

The Company’s policy is to expense advertising costs as incurred. For the quarters ended June 30, 2012, and June 30, 2011 the Company incurred $23,862 and $4,438, respectively, in advertising costs.

Environmental Remediation Liability

The Company has posted a bond with the State of Nevada in the amount required by the State of Nevada equal to the maximum cost to reclaim land disturbed in its mining process.  The bond requires a quarterly premium to be paid to the State of Nevada Division of Minerals. The Company is current on all payments.  Due to its investment in the bond and the close monitoring of the State of Nevada, the Company believes that it has adequately mitigated any liability that could be incurred by the Company to reclaim lands disturbed in its mining process.

Financial Instruments

The Company’s financial instruments, when valued using market interest rates, would not be materially different from the amounts presented in the consolidated financial statements.

Convertible Debentures

Convertible debt is accounted for under ASC 470, Debt – Debt with Conversion and Other Options.  The Company records a beneficial conversion feature (BCF) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of following ASC Topic 718, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt.

The Company accounts for modifications of its Embedded Conversion Features in accordance with ASC 470-50, Debt – Modifications and Exchanges, which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment pursuant to ASC 470-50-40, Debt – Modification and Exchanges – Extinguishment of Debt.

Derivative Liability Related to Convertible Notes and Warrants

The derivative liability related to convertible notes and warrants arises because the conversion price of the Company’s convertible notes is discounted from the market price of the Company’s common stock. Thus, the number of shares that may be issued upon conversion of such notes is indeterminate, which gives rise to the possibility that the Company may not be able to fully settle its convertible note and warrant obligations by the issuance of common stock.

The derivative liability related to convertible notes and warrants is adjusted to fair value as of each date that a note is converted or a warrant is exercised, as well as at each reporting date, using the Black-Scholes pricing model. Any change in fair value between reporting dates that arises because of changes in market conditions is recognized as a gain or loss. To the extent the derivative liability is reduced as a consequence of the conversion of notes or the exercise of warrants, such reduction is recognized as additional paid-in capital as of the conversion or exercise date.

Stock Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation which requires that the fair value compensation cost relating to share-based payment transactions be recognized in financial statements.   Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period.   The fair value of the Company’s stock options is estimated using a Black-Scholes option valuation model. There were no stock options granted during the six months ended June 30, 2012.

Recently Issued Accounting Pronouncements

Recent accounting updates that the Company has adopted or that will be required to adopt in the future are summarized below.

On January 1, 2011, the Company adopted updates issued by the Financial Accounting Standards Board (FASB) to the authoritative hierarchy of GAAP. These changes establish the FASB Accounting Standards Codification^TM (ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. These changes and the Codification itself do not change GAAP. Other than the manner in which new accounting guidance is referenced, the adoption of these changes had no impact on the Consolidated Financial Statements.

The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

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Financing (Details) (USD $)	3 Months Ended		12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Note A - December 2, 2011
Convertible Notes carrying value			$ 135,301	$ 500,000
Derivative Liability - fair value		(100,699)	100,699
Conversion to shares		(368,500)	(140,000)
Discount amortization		329,425	(329,425)
Accrued interest		4,473	4,027
Note B - January 27, 2012
Convertible Notes carrying value		275,716
Derivative Liability - fair value	(235,407)	235,407
Conversion to shares	(153,015)
Unamortized debt discount	112,706	(112,706)
Accrued interest		3,015
Convertible note assigned		150,000
Note C - March 6, 2012
Convertible Notes carrying value		140,493
Derivative Liability - fair value	(133,493)	133,493
Conversion to shares	(76,923)
Unamortized debt discount	68,750	(68,750)
Accrued interest	1,173	750
Convertible note assigned		75,000
Note D - March 30, 2012
Convertible Notes carrying value	328,492	294,731
Derivative Liability - fair value	(11,676)	294,731
Discount amortization	40,525
Unamortized debt discount		(162,102)
Accrued interest	4,912
Convertible note assigned		162,102
Note E - April 23, 2012
Convertible Notes carrying value	450,559
Derivative Liability - fair value	407,024
Unamortized debt discount	(194,248)
Accrued interest	4,685
Convertible note assigned	233,098
Note F - May 8, 2012
Convertible Notes carrying value	966,174
Derivative Liability - fair value	872,791
Unamortized debt discount	(416,667)
Accrued interest	10,050
Convertible note assigned	500,000
Total Notes Payable
Convertible Notes carrying value	1,745,225	710,940	135,301	500,000
Derivative Liability - fair value	899,239	562,932	100,699
Conversion to shares	(229,938)	(368,500)	(400,000)
Discount amortization	221,981	329,425
Unamortized debt discount	(610,915)	(343,558)	(329,425)
Accrued interest	20,820	8,238	4,027
Convertible note assigned	$ 733,098	$ 387,102

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Promissory Notes (Tables)

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Summary of Promissory Note Payable

Balance at January 1, 2011	$	90,000
Proceeds Received		807,427
Promissory Note Assigned		1,000,000
Interest Accrued thru December 31, 2011		143,145
Payments thru December 31, 2011		-
Conversions thru December 31, 2011		(652,527)
Balance at December 31, 2011	$	1,388,045
Proceeds Received		1,092,000
Interest Accrued thru June 30, 2012		51,280
Payments thru June 30, 2012		-
Conversions thru June 30, 2012		(250,000)
Assignment of Promissory Note to Convertible Note thru June 30, 2012		(1,120,200)
Balance at June 30, 2012	$	1,161,125

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Financing (Details Narrative) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Other Liabilities Disclosure [Abstract]
Assignment of note payable	$ 969,900	$ 500,000
Note payable conversion rate discount to VWAP		0.45
Assigned note payable interest rate		12.00%
Assigned note payable default interest rate		24.99%
Note payable prepayment premium provision		50% premium of amounts being repaid
Note payable potential issuance of common shares upon conversion		50,000,000
Note payable assigned accrued interest	$ 150,300

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Operating Leases (Tables)

6 Months Ended

Jun. 30, 2012

Leases [Abstract]

Schedule of Future Minimum Lease Payments

Year ended	Total
December 31, 2012	$	40,000
December 31, 2013		40,000
December 31, 2014		40,000
December 31, 2015		40,000
Thereafter		40,000
Total	$	200,000

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Interim Financial Statements

6 Months Ended

Jun. 30, 2012

Interim Financial Statements

Interim Financial Statements

NOTE 2 - INTERIM FINANCIAL STATEMENTS

The accompanying interim unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value per share in dollars	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value in dollars	$ 0.001	$ 0.001
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	870,439,113	775,374,185
Common stock, shares outstanding	870,439,113	775,374,185

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

NOTE 12 - SUBSEQUENT EVENTS

Subsequent to quarter end, the debenture holder of the convertible note converted $111,602 in principal into 21,039,117 shares of common stock.

Subsequent to quarter end, the Company received additional proceeds of $167,000 in the form of promissory notes

Subsequent to quarter end, the Company issued $53,000 in a convertible note to a non affiliate.

The company evaluated subsequent events through August 14, 2012, the date the financial statements were issued.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document And Entity Information
Entity Registrant Name	PACIFIC GOLD CORP
Entity Central Index Key	0001137855
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		891,478,230
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

XML

Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and the rules of the Securities and Exchange Commission (“SEC”), are expressed in U.S dollars, and should be read in conjunction with the audited financial statements and notes thereto contained in Pacific Gold’s Annual Report filed with the SEC on Form 10-K. The Company’s fiscal year-end is December 31. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure contained in the audited financial statements for 2011 as reported in the Form 10-K have been omitted.

Principle of Consolidation

Principle of Consolidation

The consolidated financial statements include all of the accounts of Pacific Gold Corp. and its wholly-owned subsidiaries, Nevada Rae Gold, Inc., Fernley Gold, Inc., Pilot Mountain Resources, Inc. and Pacific Metals Corp. All significant inter-company accounts and transactions have been eliminated.

Reclassification of Accounts

Reclassification of Accounts

Certain accounts in the prior period have been reclassified to conform to the June 30, 2012 financial statements presentation.

Use of Estimates

Use of Estimates and Assumptions  

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net sales, expenses and costs recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents  

For purposes of the statement of cash flows, Pacific Gold considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.  The Company has no cash in excess of FDIC federally insured limits as of June 30, 2012.

Revenue Recognition

Revenue Recognition  

Pacific Gold recognizes revenue from the sale of gold when persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collection is reasonably assured, which is determined when it places a sale order of gold from its inventory on hand with the refinery.

Accounts Receivable/Bad Debt

Accounts Receivable/Bad Debt   

The allowance for doubtful accounts is maintained at a level sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the receivables portfolio.  Management evaluates various factors including expected losses and economic conditions to predict the estimated realization on outstanding receivables. As of June 30, 2012, and December 31, 2011 there was no allowance for bad debts

Inventories

Inventories

Inventories are stated at the lower of average cost or net realizable value.  Costs included are limited to those directly related to mining.

The major classes of inventories as of June 30, 2012 and December 31, 2011 were:

	June 30, 2012		December 31, 2011
Finished Goods	$	-	$	-
Stockpile Ore		-		288,982
Total	$	-	$	288,982

Property and Equipment

Property and Equipment

Property and equipment are valued at cost.  Additions are capitalized and maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions of equipment are reflected in operations.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 2 to 10 years.

Mineral Rights

Mineral Rights

All mine-related costs, other than acquisition costs, are expensed prior to the establishment of proven or probable reserves. Reserves designated as proven and probable are supported by a final feasibility study, indicating that the reserves have had the requisite geologic, technical and economic work performed and are legally extractable at the time of reserve determination.  Once proven or probable reserves are established, all development and other site-specific costs are capitalized.

Capitalized development costs and production facilities are depleted using the units-of-production method based on the estimated gold which can be recovered from the ore reserves processed.  There has been no change to the estimate of proven and probable reserves. Lease development costs for non-producing properties are amortized over their remaining lease term if limited.  Maintenance and repairs are charged to expense as incurred.

Intangible Assets

The Company’s Subsidiary, Pacific Metals Inc., has acquired a mining claims database which will be amortized over its estimated useful life of ten years using a straight line method.

Amortization of Intangible Assets

Amortization of Intangible Assets

The accumulated amortization of intangible assets with finite useful lives was $83 for the three months ended June 30, 2012.

For these assets, amortization expense over the next five years is expected to be $4,500.

Year	USD
2012	$	500
2013		1,000
2014		1,000
2015		1,000
2016		1,000
	$	4,500

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. Pacific Gold assesses recoverability of the carrying value of the asset by estimating the undiscounted future net cash flows, which depend on estimates of metals to be recovered from proven and probable ore reserves, and also identified resources beyond proven and probable reserves, future production costs and future metals prices over the estimated remaining mine life.  If undiscounted cash flows are less that the carrying value of a property, an impairment loss is recognized based upon the estimated expected future net cash flows from the property discounted at an interest rate commensurate with the risk involved.  If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value.

The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.  The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset.  For Pacific Gold, asset retirement obligations primarily relate to the abandonment of ore-producing property and facilities.

We review the carrying value of our interest in each mineral claim on a quarterly basis to determine whether impairment has incurred in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets. Where information and conditions suggest impairment, we write-down these properties to net recoverable amount, based on estimated discounted future cash flows. Our estimate of gold price, mineralized materials, operating capital, and reclamation costs are subject to risks and uncertainties affecting the recoverability of our investment in property, plant, and equipment. Although we have made our best estimate of these factors based on current conditions, it is possible that changes could occur in the near term that could adversely affect our estimate of net cash flows expected to be generated from our operating properties and the need for possible asset impairment write-downs.

Where estimates of future net operating cash flows are not available and where other conditions suggest impairment, we assess if carrying value can be recovered from net cash flows generated by the sale of the asset or other means.

Income Taxes

Income Taxes

In accordance with ASC Topic 740, Income Taxes Pacific Gold recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered.  Pacific Gold provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

Loss Per Share

Loss per Share

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an "as if converted" basis, by the weighted average number of common shares outstanding plus potential dilutive securities.  For the six months ended June 30, 2012 potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share. As of June 30, 2012, the Company did not have any potentially dilutive common stock equivalents.

Advertising

Advertising

The Company’s policy is to expense advertising costs as incurred. For the quarters ended June 30, 2012, and June 30, 2011 the Company incurred $23,862 and $4,438, respectively, in advertising costs.

Environmental Remediation Liability

Environmental Remediation Liability

The Company has posted a bond with the State of Nevada in the amount required by the State of Nevada equal to the maximum cost to reclaim land disturbed in its mining process.  The bond requires a quarterly premium to be paid to the State of Nevada Division of Minerals. The Company is current on all payments.  Due to its investment in the bond and the close monitoring of the State of Nevada, the Company believes that it has adequately mitigated any liability that could be incurred by the Company to reclaim lands disturbed in its mining process.

Financial Instruments

Financial Instruments

The Company’s financial instruments, when valued using market interest rates, would not be materially different from the amounts presented in the consolidated financial statements.

Convertible Debentures

Convertible Debentures

Convertible debt is accounted for under ASC 470, Debt – Debt with Conversion and Other Options.  The Company records a beneficial conversion feature (BCF) related to the issuance of convertible debt that have conversion features at fixed or adjustable rates that are in-the-money when issued and records the fair value of warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to paid-in-capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing employee options for purposes of following ASC Topic 718, except that the contractual life of the warrant is used. Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value is recorded as a debt discount or premium and is amortized over the expected term of the convertible debt to interest expense. For a conversion price change of a convertible debt issue, the additional intrinsic value of the debt conversion feature, calculated as the number of additional shares issuable due to a conversion price change multiplied by the previous conversion price, is recorded as additional debt discount and amortized over the remaining life of the debt.

The Company accounts for modifications of its Embedded Conversion Features in accordance with ASC 470-50, Debt – Modifications and Exchanges, which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment pursuant to ASC 470-50-40, Debt – Modification and Exchanges – Extinguishment of Debt.

Derivative Liability Related to Convertible Notes and Warrants

Derivative Liability Related to Convertible Notes and Warrants

The derivative liability related to convertible notes and warrants arises because the conversion price of the Company’s convertible notes is discounted from the market price of the Company’s common stock. Thus, the number of shares that may be issued upon conversion of such notes is indeterminate, which gives rise to the possibility that the Company may not be able to fully settle its convertible note and warrant obligations by the issuance of common stock.

The derivative liability related to convertible notes and warrants is adjusted to fair value as of each date that a note is converted or a warrant is exercised, as well as at each reporting date, using the Black-Scholes pricing model. Any change in fair value between reporting dates that arises because of changes in market conditions is recognized as a gain or loss. To the extent the derivative liability is reduced as a consequence of the conversion of notes or the exercise of warrants, such reduction is recognized as additional paid-in capital as of the conversion or exercise date.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation which requires that the fair value compensation cost relating to share-based payment transactions be recognized in financial statements.   Share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized over the employee’s requisite service period, which is generally the vesting period.   The fair value of the Company’s stock options is estimated using a Black-Scholes option valuation model. There were no stock options granted during the six months ended June 30, 2012.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recent accounting updates that the Company has adopted or that will be required to adopt in the future are summarized below.

On January 1, 2011, the Company adopted updates issued by the Financial Accounting Standards Board (FASB) to the authoritative hierarchy of GAAP. These changes establish the FASB Accounting Standards Codification^TM (ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. These changes and the Codification itself do not change GAAP. Other than the manner in which new accounting guidance is referenced, the adoption of these changes had no impact on the Consolidated Financial Statements.

The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

XML

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenue:
Total Revenue	$ 31,375	$ 0	$ 78,658	$ 0
Production Costs:
Production Costs	36,465	0	88,719	0
Depreciation	38,032	39,043	72,449	78,948
Gross Margin	(43,122)	(39,043)	(82,510)	(78,948)
Operating Expenses:
General and Administrative	803,440	398,483	1,428,245	575,299
(Gain) Loss on Sale of Assets	0	(14,500)	0	(14,500)
Total Operating Expenses	803,440	383,983	1,428,245	560,799
Net Loss from Operations	(846,562)	(423,026)	(1,510,755)	(639,747)
Other Income/(Expenses)
Gain on Extinguishment of Debt	40,904	0	40,904	13,882
Foreign Exchange Gain / (Loss)	746	(991)	0	(14,840)
Amortization of Debt Discount	(344,163)	0	(717,133)	0
Interest Expense	(436,011)	(68,637)	(847,334)	(122,211)
Other Income	0	102	0	51,069
Change in Fair Value of Derivative Liability	(180,727)	0	(113,758)	0
Total Other Income / (Expenses)	(919,251)	(69,526)	(1,637,321)	(72,100)
Net Income/(Loss)	$ (1,765,813)	$ (492,552)	$ (3,148,076)	$ (711,847)
Basic and Diluted Earnings/(Loss) per Share	$ (0.002)	$ (0.001)	$ (0.004)	$ (0.001)
Weighted Average Shares Outstanding - Basic and Diluted	858,266,075	745,732,651	827,544,045	745,456,406

XML

Financing

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Financing

NOTE 7 – FINANCING

On December 2, 2011, the Company agreed to the assignment of $500,000 in principal amount of an outstanding note, which represents a portion of the note the Company issued to the original debt holder on January 2, 2011.  The assignment was to a third party that is not affiliated with the Company.  In connection with the assignment, the Company agreed to various modifications of the note for the benefit of the new holder, which enhance and reset the conversion features of the note and change certain other basic terms of the note.  As a result of the amendments, the note now (i) has a conversion rate of a 45% discount to the daily VWAP (volume – weighted average price, which is a measure of the average price the stock has traded over the trading horizon) price of the common stock based on a five day period prior to the date of conversion, which rate will be subject to certain adjustments, (ii) has an annual interest rate of 12%, due at maturity, (iii) has a new maturity date of December 2, 2012, (iv) permits prepayment only with a premium of 50% of the amount being repaid, (v) has ratchet protection of the conversion anti-dilution provisions for all future issuances or potential issuances of securities by the Company at less than the then conversion rate, and (vi) has additional default provisions, including additional events of default and an default interest rate of 24.99%.  The Company has also agreed that the assigned debt will not be subordinate to new debt, other than purchase money and similar debt, which may have the effect of limiting the company’s access to additional debt capital while the note is outstanding.  Based on the above and without taking into account the conversion of any of the interest to be earned or converted, the principal if fully converted represents the potential issuance of 50,000,000 shares, limited to a maximum conversion right at any one time to 4.99% of the then outstanding shares of common stock of the company.

During the six months ended June 30, 2012, the Company agreed to the assignment of an additional $969,900 in principal and $150,300 in accrued interest of outstanding promissory notes to the third party under the same terms as discussed above. All convertible notes mature within a year of the notes issuance date.

A summary of the carrying value of the notes is as follows:

	Note A		Note B	Note C	Note D	Note E	Note F	Total
	December 2,		January 27,	March 6,	March 30,	April 23,	May 08,
Issuance Date	2011		2012	2012	2012	2012	2012
Face Value – Convertible Note	$	500,000	-	-	-	-	-	500,000
Add: Relative fair value of :
Derivative Liability		100,699	-	-	-	-	-	100,699
Conversions to shares thru December 31, 2011		(140,000)	-	-	-	-	-	(400,000)
Unamortized debt discount at December 31, 2011		(329,425)	-	-	-	-	-	(329,425)
Accrued Interest to December 31, 2011		4,027	-	-	-	-	-	4,027
Carrying amount of convertible note, net on December 31, 2011	$	135,301	-	-	-	-	-	135,301
Add: Face Value – Convertible Notes assigned		-	150,000	75,000	162,102	-	-	387,102
Add: Relative fair value of:
Derivative Liability		(100,699)	235,407	133,493	294,731	-	-	562,932
Discount amortization thru  March 31, 2012		329,425	-	-	-	-	-	329,425
Unamortized debt discount at March 31, 2012		-	(112,706)	(68,750)	(162,102)	-	-	(343,558)
Interest Accrued thru March 31, 2012		4,473	3,015	750	-	-	-	8,238
Conversions to shares thru March 31, 2012		(368,500)	-	-	-	-	-	(368,500)
Carrying amount of convertible notes, net on March 31, 2012	$	-	275,716	140,493	294,731	-	-	710,940
Add: Face Value – Convertible Notes assigned		-	-	-	-	233,098	500,000	733,098
Add: Relative fair value of:
Derivative Liability		-	(235,407)	(133,493)	(11,676)	407,024	872,791	899,239
Discount amortization thru  June 30, 2012		-	112,706	68,750	40,525	-	-	221,981
Unamortized debt discount at June 30, 2012		-	-	-	-	(194,248)	(416,667)	(610,915)
Interest Accrued thru June 30, 2012		-	-	1,173	4,912	4,685	10,050	20,820
Conversions to shares thru June 30, 2012		-	(153,015)	(76,923)	-	-	-	(229,938)
Carrying amount of convertible notes, net on June 30, 2012	$	-	-	-	328,492	450,559	966,174	1,745,225

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Promissory Notes

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Promissory Notes

NOTE 6 – PROMISSORY NOTES

During the six months ended June 30, 2012, the Company received total proceeds of $1,092,000 from non-affiliates. The notes agreements accrue interest at a rate of 10% per annum from the date of the agreements. The principal and accrued interest is due on January 2, 2013.

During the six months ended June 30, 2012, $969,900 in principal and $150,300 in accrued interest on the promissory notes were assigned to a third party that is not affiliated with the Company as discussed in Note 7.

During the six months ended June 30, 2012, $250,000 in principal was converted into 12,500,000 shares of common stock.

As of June 30, 2012, Pacific Gold owes $1,161,125 in promissory notes.

A summary of the notes is as follows:

Balance at January 1, 2011	$	90,000
Proceeds Received		807,427
Promissory Note Assigned		1,000,000
Interest Accrued thru December 31, 2011		143,145
Payments thru December 31, 2011		-
Conversions thru December 31, 2011		(652,527)
Balance at December 31, 2011	$	1,388,045
Proceeds Received		1,092,000
Interest Accrued thru June 30, 2012		51,280
Payments thru June 30, 2012		-
Conversions thru June 30, 2012		(250,000)
Assignment of Promissory Note to Convertible Note thru June 30, 2012		(1,120,200)
Balance at June 30, 2012	$	1,161,125

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Financing (Tables)

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Summary of Carrying Value of Notes Payable

	Note A		Note B	Note C	Note D	Note E	Note F	Total
	December 2,		January 27,	March 6,	March 30,	April 23,	May 08,
Issuance Date	2011		2012	2012	2012	2012	2012
Face Value – Convertible Note	$	500,000	-	-	-	-	-	500,000
Add: Relative fair value of :
Derivative Liability		100,699	-	-	-	-	-	100,699
Conversions to shares thru December 31, 2011		(140,000)	-	-	-	-	-	(400,000)
Unamortized debt discount at December 31, 2011		(329,425)	-	-	-	-	-	(329,425)
Accrued Interest to December 31, 2011		4,027	-	-	-	-	-	4,027
Carrying amount of convertible note, net on December 31, 2011	$	135,301	-	-	-	-	-	135,301
Add: Face Value – Convertible Notes assigned		-	150,000	75,000	162,102	-	-	387,102
Add: Relative fair value of:
Derivative Liability		(100,699)	235,407	133,493	294,731	-	-	562,932
Discount amortization thru  March 31, 2012		329,425	-	-	-	-	-	329,425
Unamortized debt discount at March 31, 2012		-	(112,706)	(68,750)	(162,102)	-	-	(343,558)
Interest Accrued thru March 31, 2012		4,473	3,015	750	-	-	-	8,238
Conversions to shares thru March 31, 2012		(368,500)	-	-	-	-	-	(368,500)
Carrying amount of convertible notes, net on March 31, 2012	$	-	275,716	140,493	294,731	-	-	710,940
Add: Face Value – Convertible Notes assigned		-	-	-	-	233,098	500,000	733,098
Add: Relative fair value of:
Derivative Liability		-	(235,407)	(133,493)	(11,676)	407,024	872,791	899,239
Discount amortization thru  June 30, 2012		-	112,706	68,750	40,525	-	-	221,981
Unamortized debt discount at June 30, 2012		-	-	-	-	(194,248)	(416,667)	(610,915)
Interest Accrued thru June 30, 2012		-	-	1,173	4,912	4,685	10,050	20,820
Conversions to shares thru June 30, 2012		-	(153,015)	(76,923)	-	-	-	(229,938)
Carrying amount of convertible notes, net on June 30, 2012	$	-	-	-	328,492	450,559	966,174	1,745,225

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Summary of Accounting Policies and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

	June 30, 2012		December 31, 2011
Finished Goods	$	-	$	-
Stockpile Ore		-		288,982
Total	$	-	$	288,982

Schedule of Amortization of Intangible Assets

Year	USD
2012	$	500
2013		1,000
2014		1,000
2015		1,000
2016		1,000
	$	4,500

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Legal Proceedings

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

NOTE 10 – LEGAL PROCEEDINGS

On March 8, 2012, Pacific Gold Corp. (the “Company”) received a complaint that was filed in the United States District Court in Newark New Jersey, Case number 2:12-cv-01285-ES-CLW entitled Black Mountain Equities Inc. v. Pacific Gold Corp. The claimant seeks monetary damages of $445,090.90 based on an assertion that the exercise price of a warrant, issued on February 27, 2007, that it holds, and that the claimant purchased just prior to the warrants expiration, was not properly adjusted and that the Company's refusal to issue the shares underlying the warrant on exercise of the warrant at the asserted adjusted price. The Company denies that there was a price adjustment as asserted by the plaintiff and intends to defend itself vigorously in the action.

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Common Stock

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Common Stock

NOTE 8 – COMMON STOCK

For the six months ended June 30, 2012, 79,564,926 common shares were issued for $585,000 in principal and $13,438 in accrued interest on the convertible notes discussed in Note 7 above.

For the six months ended June 30, 2012, 12,500,000 shares of common stock were issued for $250,000 in principal on the promissory note issued December 2, 2012.

For the six months ended June 30, 2012, 3,000,000 shares of common stock were issued for services valued at $30,000.

In 2011, 2,000,000 common shares were issued as part of the settlement payment of $60,000.

In 2011, 13,050,580 common shares were issued for conversion of Promissory notes for $652,527 in principal.

In 2011, 15,590,954 common shares were issued for conversion of the convertible note for $140,000 in principal.

In 2011, 1,000,000 common stock shares were issued as a royalty payment of $20,000 for rent on behalf of the Company’s subsidiary, Nevada Rae Gold.

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Operating Leases

6 Months Ended

Jun. 30, 2012

Leases [Abstract]

Operating Leases

NOTE 9 – OPERATING LEASES

The Company has leased approximately 440 acres of privately owned land adjacent to its staked prospects from Corporate Creditors Committee LLC, by lease dated October 1, 2003. The Company paid an advance royalty of $7,500 for the first year, which amount is increased by $2,500 in each of the next five years to be $20,000 in the sixth year.  For the last four years of the lease, the advance royalty is $20,000 per year.  If the lease is renewed, the annual advance royalty is $20,000.  The advance royalty is credited to and recoverable from the production rental amounts. The royalty is the greater of a 4% net smelter royalty or $0.50 per yard of material processed. The lease is for 10 years with a renewal option for another 10 years.

In 2011, Nevada Rae Gold (“NRG”) entered into a lease agreement to lease a 100% interest in 45 mining claims covering approximately 2,000 acres in Lander County, Nevada. The lease calls for NRG to pay the claim owners a gross royalty of 4% on gold sales or $0.50 per yard of gravels mined, whichever is greater. NRG will be required to make annual minimum advance royalty payments of $20,000. The term of the lease is for 10 years with an option for NRG to extend the term for a further 10 years.

The following is a schedule by years of future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of June 30, 2012:

Year ended	Total
December 31, 2012	$	40,000
December 31, 2013		40,000
December 31, 2014		40,000
December 31, 2015		40,000
Thereafter		40,000
Total	$	200,000

Nevada Rae Gold has a lease for its mobile office at a cost of approximately $407 per month. This lease was accounted for as an operating lease and will expire in July 2012. Rental expense for the six months ended June 30, 2012 was $2,442.

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Going Concern

6 Months Ended

Jun. 30, 2012

Going Concern

Going Concern

NOTE 11 – GOING CONCERN

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 30, 2012, the Company had an accumulated deficit of $30,333,258, negative working capital of $4,476,117, and negative cash flows from operations of $997,543, raising substantial doubt about its ability to continue as a going concern. During the quarter ended June 30, 2012, the Company financed its operations through the sale of securities and issuance of debt.

Management’s plan to address the Company’s ability to continue as a going concern includes obtaining additional funding from the sale of the Company’s securities and establishing revenues.  Although management believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove successful. Should we be unsuccessful, the Company may need to discontinue its operations.

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Promissory Notes (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2012
Debt Disclosure [Abstract]
Promissory notes payable converted to common stock	$ 250,000
Common stock issued on conversion of promissory note	12,500,000
Non-affiliated promissory notes payable interest rate	10.00%
Total promissory notes	$ 1,161,125

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Mineral Rights (Tables)

6 Months Ended

Jun. 30, 2012

Mineral Industries Disclosures [Abstract]

Schedule of Mineral Rights Assets

MINERAL RIGHTS	June 30, 2012		December 31, 2011
Nevada Rae Gold – Morris Land	$	221,119	$	221,119
Accumulated Depletion		(273)		(273)
Fernley Gold – Lower Olinghouse		129,267		123,267
Pilot Mountain Resources – Project W		193,043		193,043
Pacific Metals – Graysill Claims		33,255		33,255
	$	576,411	$	570,411

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Summary of Accounting Policies and Basis of Presentation (Details 2) (USD $)	Jun. 30, 2012
Intangible assets amortization expense
2012	$ 500
2013	1,000
2014	1,000
2015	1,000
2016	1,000
Total anticipated amortization expense	$ 4,500

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Going Concern (Details Narrative) (USD $)	Jun. 30, 2012
Going Concern
Negative working capital	$ 4,476,117

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (3,148,076)	$ (711,847)
Adjustments to Reconcile Net Loss to Net Cash:
Depreciation and Depletion	72,449	78,948
Non-cash Portion of Interest on Convertible Debt	697,811	0
Issuance of Stock for Services	30,000	0
Asset Write Down	9,893	0
(Gain) Loss on Sale of Equipment	0	(14,500)
Gain on Extinguishment of Debt	(40,904)	0
Amortization of Debt Discount	717,133	0
Change in Fair Value of Derivative Liability	113,758	0
Changes in:
Inventory	288,982	0
Accounts Receivable	(12,491)	0
Prepaid Expenses	(3,662)	(2,798)
Accounts Payable	133,263	(157,814)
Accrued Expenses	(10,772)	56,562
Accrued Interest	147,749	119,814
NET CASH USED IN OPERATING ACTIVITIES	(997,543)	(631,635)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases and Development of Property and Equipment	(117,960)	(36,165)
Net Decrease / (Increase) in Deposits	3,524	(1,574)
Proceeds from Sale of Equipment	0	14,500
NET CASH PROVIDED BY /(USED) IN INVESTING ACTIVITIES	(114,436)	(23,239)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on Related Party Debt	(25,000)	0
Proceeds from Related Party Debt	(46,400)	47,368
Proceeds from Promissory Notes	1,092,000	587,540
NET CASH PROVIDED IN FINANCING ACTIVITIES	1,020,600	634,908
NET CHANGE IN CASH AND CASH EQUIVALENTS	(91,379)	(19,966)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	103,454	29,432
CASH AND CASH EQUIVALENTS AT END OF PERIOD	12,075	9,466
Cash paid during the year for:
Interest	0	0
Income Taxes	0	0
Non-cash financing and investing activities:
Assignment of Portion of Promissory Note to Convertible Note	969,900	0
Assignment of Accrued Interest to Convertible Note	150,300	0
Conversion of Notes Payable	1,318,036	0
Stock Issued for Settlement Payment	0	60,000
Assignment of Related Party Note to Note Payable	239,811	0
Accrued Interest added to Related Party Note Principal	$ 149,066	$ 188,185

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Shareholder Note Payable Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Shareholder Note Payable Related Party Transactions

NOTE 5 – SHAREHOLDER NOTE PAYABLE/RELATED PARTY TRANSACTIONS

On December 2, 2011, $1,000,000 in principal and $91,711 in accrued interest of an unsecured loan from a company owned by the Chief Executive Officer was assigned to a non-affiliate debt holder, as discussed in Note 6 – Promissory Notes. As of June 30, 2012, Pacific Gold owes $1,611,908 in principal to a company owned by the Chief Executive Officer. The amount due is represented by a promissory note accruing interest at 10% per year. The note is due on January 2, 2014 and is convertible into shares of common stock of Pacific Gold at $0.05 per share. Interest expense on the loan for the three months ended June 30, 2012 was $26,865. Including interest, the balance on the loan at June 30, 2012 was $1,638,773.

Pacific Gold owes its executives $113,980 and $203,434 in short term notes payable reflected in the accrued expenses for the periods ended June 30, 2012 and December 31, 2011, respectively. These short term notes are interest free and due on demand.

Pacific Gold owes $103,395 to related parties in short term notes payable for the six months ended June 30, 2012. These short term notes are interest free and due on demand.

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Summary of Accounting Policies and Basis of Presentation (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property Plant and Equipment Estimated Useful Lives			2 to 10 years
Advertising Expenses	$ 23,862	$ 4,438
Mining Claims Estimated Useful Lives			10 years
Accumulated Amortization of Intangible Assets	$ 83

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Operating Leases (Details) (USD $)	Jun. 30, 2012
Leases [Abstract]
December 31, 2012	$ 40,000
December 31, 2013	40,000
December 31, 2014	40,000
December 31, 2015	40,000
Thereafter	40,000
Total future lease committments	$ 200,000

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Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2012

Mineral Rights, Plant and Equipment

Schedule of Property Plant and Equipment

PLANT AND EQUIPMENT	June 30, 2012		December 31, 2011
Building	$	795,355	$	795,355
Accumulated Depreciation		(548,824)		(507,311)
Equipment		1,007,342		916,582
Accumulated Depreciation		(709,383)		(679,837)
	$	544,490	$	524,789