Firstar Exploration Corporation Form 10-Q for June 30, 2008

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934
	FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008

OR

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

Commission file number 000-52519

FIRSTAR EXPLORATION CORPORATION
(Exact name of registrant as specified in its charter)

NEVADA
(State or other jurisdiction of incorporation or organization)

810 Jewel Street
Blackfoot, Idaho 83221
(Address of principal executive offices, including zip code.)

(208) 785-2729
(telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days.
YES [X] NO [ ]

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X]

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 7,000,000 as of July 31, 2008.

FIRSTAR EXPLORATION CORPORATION
(An Exploration Stage Company)
BALANCE SHEET

		June 30			December 31,
		2008			2007
		(unaudited)
ASSETS

CURRENT ASSETS
Cash	$	79,074		$	121,325

TOTAL ASSETS	$	79,074		$	121,325


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
Accounts payable	$	2,000		$	1,074
Advances payable - related party		21,000			21,000
TOTAL LIABILITIES		23,000			22,074

COMMITMENTS AND CONTINGENCIES		-			-

STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, 100,000,000 shares authorized,
$0.00001 par value; no shares issued and outstanding		-			-

Common stock, 100,000,000 shares authorized,
$0.00001 par value; 7,000,000 shares at June 30 2007		70			70
and December 31, 2007, issued and outstanding
Additional paid-in capital		249,930			249,930
Accumulated deficit during exploration stage		(193,926	)		(150,749	)

TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		56,074			99,251

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)	$	79,074		$	121,325

The accompanying condensed notes are an integral part of these interim financial statements.
F-1

FIRSTAR EXPLORATION CORPORATION
(An Exploration Stage Company)
STATEMENT OF OPERATIONS




														From
														December 9,
		Three Months			Three Months			Six Months			Six Months			2005
		Ended			Ended			Ended			Ended			(Inception) to
		June 30			June 30			June 30			June 30			June 30,
		2008			2007			2008			2007			2008
		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)

REVENUES	$	-		$	-		$	-		$	-		$	-

EXPENSES
General and administrative expenses		-			1,011			143			1,198			2,249
Professional fees		21,714			11,674			28,014			19,846			120,065
Lease payments		-			-			15,000			10,000			32,500
Mineral & exploration expense		-			8,584			-			20,895			36,972
Regulatory fees		25			1,850			25			1,850			2,157
Total Expenses		21,739			23,119			43,182			53,789			193,943

OTHER INCOME
Interest income		2			4			5			5			17
Total other income		2			4			5			5			17

LOSS FROM OPERATIONS		(21,737	)		(23,115	)		(43,177	)		(53,784	)		(193,926	)


LOSS BEFORE TAXES		(21,737	)		(23,115	)		(43,177	)		(53,784	)		(193,926	)

INCOME TAX EXPENSE		-			-									-

NET LOSS	$	(21,737	)	$	(23,115	)	$	(43,177	)	$	(53,784	)	$	(193,926	)


NET INCOME (LOSS) PER SHARE,
BASIC AND DILUTED	$	nil		$	nil		$	nil		$	nil

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES
OUTSTANDING,
BASIC AND DILUTED		7,000,000			4,166,667			7,000,000			6,166,667

The accompanying condensed notes are an integral part of these interim financial statements.
F-2

FIRSTAR EXPLORATION CORPORATION
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS

								From
								December 9,
		Six Months			Six Months			2005
		Ended			Ended			(Inception) to
		June 30			June 30			June
		2008			2007			2008
		(unaudited)			(unaudited)			(unaudited)


CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(43,177	)	$	(53,784	)	$	(193,926	)
Adjustments to reconcile net loss to net cash used by
operating activities:
Increase in prepaid expenses								-
(Decrease) Increase in accounts payable		926			(4,572	)		2,000
Net cash used in operating activities		(42,251	)		(58,356	)		(191,926	)


CASH FLOWS FROM INVESTING ACTIVITIES:		-			-			-


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		-			200,000			250,000
Excess subscription proceeds		-			1,413			-
Proceeds from related party advance payable		-			20,000			21,000
Net cash provided by financing activities		-			221,413			271,000

NET INCREASE IN CASH		(42,251	)		163,057			79,074

CASH, BEGINNING OF PERIOD		121,325			931			-

CASH, END OF PERIOD	$	79,074		$	163,988		$	79,074

SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	-		$	-		$	-
Income taxes paid	$	-		$	-		$	-

The accompanying condensed notes are an integral part of these interim financial statements.
F-3

FIRSTAR EXPLORATION CORPORATION
AN EXPLORATION STAGE COMPANY
CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS
JUNE 30, 2008

Firstar Exploration Corporation (hereinafter “the Company”) was incorporated on December 9, 2005 in the State of Nevada. The principal business of the Company is the acquisition, exploration and development of natural resource properties. Upon establishing the existence of proven reserves in one of its properties, the Company plans to actively prepare the site for extraction and enter a development stage.

The Company has been in an exploration stage since its inception on December 9, 2005, and has not realized any revenues from its planned operation. The Company’s year-end is December 31.

The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Regulation S-K as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements for the period ended December 31, 2007 included in our annual report on form 10K. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. Operating results for the six-month period ending June 30, 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008.

This summary of significant accounting policies of Firstar Exploration Corporation is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

Recent Accounting Pronouncements
In May 2008, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 163, “Accounting for Financial Guarantee Insurance Contracts—an interpretation of FASB Statement No.60” (SFAS No. 163”). SFAS No. 163 changes disclosure requirements in paragraphs 30(g) and 31 are effective for the first period (including interim periods) beginning after issuance of the Statement. It is effective for fiscal years beginning after December 15, 2008. Except for those disclosures, earlier application is not permitted. The Company does not expect the adoption of SFAS No. 163 to have any effect on its financial position or results of operations. It will be adopted January 1, 2009.

FIRSTAR EXPLORATION CORPORATION
AN EXPLORATION STAGE COMPANY
CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS
JUNE 30, 2008

In May 2008, the Financial Accounting Standards Board (“FASB”) issued Statements of Financial Accounting Standards No. 162, “The Hierarchy of Generally Accepted Accounting Principles” (SFAS No. 162 defines the meaning of present fairly in conformity with generally accepted accounting principles. It is effective 60 days following the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU Section 411. The Company does not expect the adoption of SFAS No. 162 to have any effect on its financial position or results of operations. The Company will adopt SFAS No. 162 when it becomes effective.

In March 2008, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133” (“SFAS No. 161”). SFAS No. 161 changes the disclosure requirements for derivative instruments and hedging activities. Entities are required to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under SFAS No. 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The guidance in SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. This Statement encourages, but does not require, comparative disclosures for earlier periods at initial adoption. At this time, the Company does not expect the adoption of SFAS No. 161 to have a significant immediate effect on its financial position or results of operations. The Company will adopt SFAS No. 161 January 1, 2009.

Adoption of Statement of Financial Accounting Standards No. 157 and 159
In February, 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”). SFAS No. 159 provides companies with an option to report selected financial assets and liabilities at fair value. SFAS No. 159's objective is to reduce both complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities differently. SFAS No. 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between Companies that choose different measurement attributes for similar types of assets and liabilities. SFAS No. 159 requires Companies to provide additional information that will help investors and other users of financial statements to more easily understand the effect of the Company's choice to use fair value on its earnings. It also requires entities to display the fair value of those assets and liabilities for which the Company has chosen to use fair value on the face of the balance sheet. We adopted SFAS No. 159 as of January 1, 2008. The adoption of SFAS No. 159 did not have a material effect on the Company’s financial statements.

Exploration Stage
The Company has been in the exploration stage since inception on December 9, 2005. The Company has no revenues from its planned operations. It is primarily engaged in the acquisition, exploration and development of natural resource properties. Upon establishing the existence of proven reserves in one of its properties, the Company plans to actively prepare the site for extraction and enter a development stage.

FIRSTAR EXPLORATION CORPORATION
AN EXPLORATION STAGE COMPANY
CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS
JUNE 30, 2008

Going Concern
At June 30, 2008 the Company had an accumulated deficit during the exploration stage of $193,926. Since its inception, the Company has not generated any revenues nor implemented their business plan. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are to acquire, explore, and develop natural resource properties. Upon establishing the existence of proven reserves in one of its properties, the Company plans to actively prepare the site for extraction and enter a development stage. The ability of the Company to continue in existence is dependent upon management’s successful development and implementation of its business plan resulting in profitable operations. These plans, if successful, will mitigate the factors which raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

Use of Estimates
The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Preferred Stock
The Company is authorized to issue 100,000,000 shares of preferred stock with a par value of $0.00001. As of June 30, 2008, the Company has not issued any preferred stock.

Common Stock
The Company is authorized to issue 100,000,000 shares of common stock. All shares have equal voting rights, are non-assessable and have one vote per share. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company.

In its initial capitalization in the year ended December 31, 2005, the Company issued 5,000,000 shares of common stock for $50,000, of which $29,000 was recorded as a subscription receivable. This subscription was collected in January 2006.

The Company closed its public offering on June 14, 2007. In the public offering, the Company issued 2,000,000 shares of common stock for $200,000.

FIRSTAR EXPLORATION CORPORATION
AN EXPLORATION STAGE COMPANY
CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS
JUNE 30, 2008

On February 1, 2006, the Company acquired a twenty-year lease with the option to purchase the related, unpatented mineral claims (known as the Gold Dust Property) situated in White Pine County, Nevada.

The Company’s majority stockholder advanced the Company $21,000. These advances are non-interest bearing, not collateralized, and considered to be due on demand.

As a condition of its mining lease, the Company is required to spend the sum $25,000 in 2008 for work commitments on its Gold Dust claims. If these amounts are not expended on the claims, the same amounts are to be paid in cash to the lessor. Future commitments are a part of the lease agreement.

The lease also requires a production royalty equal to 2.5% of net smelter returns on all products produced from the claims to be paid to the lessor. As of June 30, 2008, the Company has not incurred any expenses related to work commitments or paid any royalties.

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business operations.

Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and no revenues are anticipated until we begin removing and selling minerals. Since we do not know what we will find under the ground, we cannot tell you if we will be successful. We have started exploration on the property. We raised $200,000 from our direct public offering in 2007. The $200,000 in gross proceeds will allow us to conduct our exploration program and pay operating expenses. If we find mineralized material, we will proceed to create a development program. Development is defined as the preparation of a commercially minable deposit or reserve for extraction which is not already in production. If we do not find mineralized material, we will cease operations.

We will be conducting research in the form of exploration of the property. Our exploration program is explained in as much detail as possible in the business section of our prospectus. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body of ore, and we have determined it is economical to extract the ore from the land.

We do not have any reserves. Even if we complete our current exploration program and it is successful in identifying a mineral deposit, of which there is no assurance whatsoever, we will have to spend substantial funds for further drilling and engineering studies before we will know if we have a commercially viable mineral deposit. We will make a decision whether to proceed with each successive phase of the exploration program upon completion of the previous phase and upon analysis of the results of that program.

We do not intend to interest other companies in the property if we find mineralized materials.

If we are unable to complete any phase of exploration because we don't have enough money, we will cease operations until we raise more money. If we can't or don't raise more money, we will cease operations. If we cease operations, we are unsure of what our next plan will be.

We do not intend to hire additional employees at this time. All of the work on the property will be conducted by unaffiliated independent contractors that we will hire. The independent contractors will be responsible for surveying, geology, engineering, exploration and excavation. The geologists will evaluate the information derived from the exploration and excavation and the engineers will advise us on the economic feasibility of removing the mineralized material.

In the event we complete our exploration program prior to the end of one year, and it is anticipated we will do so as reflected in the milestones that follow, if we find mineralized material we will spend the balance of the year creating a program for development of the property. If we do not find mineralized material at the conclusion of our exploration program, we will cease operations.

The cost of the subcontractors is included in the description of services to be rendered. All funds for the foregoing activities have been obtained from our direct public offering.

There is no historical financial information about us upon which to base an evaluation of our performance. We are an exploration stage corporation and have not generated any revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of the property, and possible cost overruns due to price and cost increases in services.

To become profitable and competitive, we are conducting research and exploration of the property before we start production of any minerals we may find. We have raised $200,000 to help us to continue our research and exploration phases.

Since inception, paid in capital has paid all our expenses to incorporate us, and for legal and accounting expenses. In January 2006, Mr. Schaefer, a member of the Board of Directors, advanced $1,000 to pay the costs of incorporation, accounting fees and a portion of legal fees for our public offering. In January, 2007, Mr. Schaefer advanced us an additional $20,000 to pay accounting fees, legal fees, lease expense, and begin exploration.

Accounts payable of $2,000 were booked at June 30, 2008 represented by liabilities for accounting fees.

Whatever money we have raised, will be applied to the items set forth in the Use of Proceeds section of our prospectus. If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans.

At the present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it we will either have to suspend operations until we do raise the cash, or cease operations entirely other than as described in this paragraph, we have no other financing plans.

As of the date of this report, we have yet to begin operations, and therefore, we have not generated any revenues from our business operations.

In addition, we sold 100,000 shares of common stock to our former president, in consideration of $1,000 and 4,900,000 shares of common stock to another investor in consideration of $49,000. In December, 2005, we issued 5,000,000 shares of common stock pursuant to the exemption from registration contained in section 4(2) of the Securities Act of 1933. This was accounted for as a purchase of shares of common stock, in consideration of $50,000.

As of June 30, 2008, our total assets were $79,074 and our total liabilities were $23,000.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

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

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

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

On October 13, 2006, the Securities and Exchange Commission declared our Form SB-2 Registration Statement effective, file number 333-137358, permitting us to offer up to a maximum of 2,000,000 shares of common stock at $0.10 per share. There was no underwriter involved in our direct public offering.

On June 14, 2007, we completed our public offering and raised $200,000. Since then we have spent the proceeds as follows:

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 13^th day of August, 2008.

	FIRSTAR EXPLORATION CORPORATION
	(Registrant)

	BY:	LINDA SMITH
		Linda Smith, President, Principal Executive
		Officer, Secretary, Treasurer, Principal
		Financial Officer, Principal Accounting
		Officer, and sole member of the Board of
		Directors.

Exhibit No.	Document Description

31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to
	Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to section
	906 of the Sarbanes-Oxley Act of 2002

Annual lease payments are as follows:

2/1/2008	$	15,000

2/1/2009-2025	$	25,000

Accounting Fees	$	54,304
Legal Fees		17,108
Mining & Exploration Costs		31,446
Lease Expense		15,000
Regulatory Costs		2,157
General & Administrative		1,841

Total	$	121,856

Large accelerated filer	[ ]	Accelerated filer	[ ]
Non-accelerated filer	[ ]	Smaller reporting company	[X]

	1.	Currently, setting up base maps,looking for gold mineralization and staking more claims in the area. Geologist fees are $600 per day plus costs.

	2.	In the fall of 2008, we will conduct mapping and rock chip sampling program.

	3.	180-210 days after the mapping and rock chip sampling, we will have rock chip samples tested for gold/silver assays and detailed for geochemical analysis. Gold assays cost are $25.00 per sample and geochem analysis are $25.00 per sample. Geologist will study results ,write a report and recommend a phase 2 program.