10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 10-Q/A

[(Mark One)

   X  .

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

For the quarterly period ended June 30, 2011

or

 .

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

For the transition period from __________ to ____________

Commission file number 000-50191

MUSTANG GEOTHERMAL CORP.

(Exact name of registrant as specified in its charter)

UREX ENERGY CORP.

(If there is a name change, the Former Name of registrant)

Nevada	98-0201259
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

10580 N. McCarran Blvd., Building 115 – 208, Reno, Nevada  89503

(Address of principal executive offices)   (zip code)

775.747.0667

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    

Yes   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 definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	.	Accelerated filer	.
Non-accelerated filer	. (Do not check if a smaller reporting company)	Smaller reporting company	X .

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes . No   X  .

APPLICABLE ONLY TO CORPORATE ISSUERS

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

54,492,057 common shares issued and outstanding as of June 30, 2011.

Explanatory Note

The sole purpose of this Amendment No. 1 to the Quarterly Report on Form 10-Q (the "Form 10-Q") of Mustang Geothermal Corp. for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 16, 2011, is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to the Form 10-Q provides the financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

2

PART II  -  OTHER INFORMATION

Item 6.  Exhibits

Exhibit Number	Description
(3)	Articles of Incorporation and By-laws
3.1	Articles and Bylaws incorporated by reference from our Registration Statement on Form 10-SB filed on February 27, 2003
3.2	Certificate of Amendment to the Articles of Incorporation dated June 2, 2005 incorporated by reference from our quarterly report on Form 10-QSB filed on November 17, 2006
3.3	Certificate of Change dated June 2, 2005 incorporated by reference from our quarterly report on Form 10-QSB filed on November 17, 2006
3.4	Certificate of Amendment to the Articles of Incorporation incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
3.5	Certificate of Change incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
3.6	Articles of Incorporation of Urex Energy Corp. incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
3.7	Articles of Merger incorporated by reference from our Current Report on Form 8-K filed on July 5, 2006
3.8	Certificate of Change incorporated by reference from our Current Report on Form 8-K filed on July 5, 2006
3.9	Certificate of Correction with respect to the Certificate of Change incorporated by reference from our Current Report on Form 8-K filed on July 5, 2006
3.10	Certificate of Correction with respect to the Articles of Merger incorporated by reference from our Current Report on Form 8-K filed on July 5, 2006
(4)	Instruments defining the rights of security holders, including indentures
4.1	2008 Stock Plan, effective October 16, 2008 (incorporated by reference from our registration statement of Form S-8 filed on October 29, 2008)
4.2	Form of Stock Option Agreement (incorporated by reference from our registration statement of Form S-8 filed on October 29, 2008)
4.3	Form of Restricted Share Grant Agreement (incorporated by reference from our registration statement of Form S-8 filed on October 29, 2008)
(10)	Material Contracts
10.1	Consulting Agreement between our company and Minera Teles Pires Inc., dated September 27, 2005 incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
10.2	Assignment Agreement between our company and International Mineral Resources Inc., dated September 22, 2005 incorporated by reference from our Current Report on Form 8-K filed on September 29, 2005
10.3	Option Agreement between International Mineral Resources Inc. and United Energy Metals S.A., dated September 21, 2005 incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
10.4	Agreement and Plan of Merger between Urex Energy Corp. and Lakefield Ventures Inc., dated June 8, 2006 incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006
10.5	Form of Subscription Agreement with certain investors incorporated by reference from our Current Report on Form 8-K filed on November 30, 2006
10.6	Form of Series A Warrant Certificate with certain investors incorporated by reference from our Current Report on Form 8-K filed on November 30, 2006
10.7	Form of Series B Warrant Certificate with certain investors incorporated by reference from our Current Report on Form 8-K filed on November 30, 2006
10.8	Agreement with New-Sense Geophysics Limited incorporated by reference from our Annual Report on Form 10-KSB filed on July 17, 2007
10.9	Agreement with N.A. Dergerstrom, Inc., dated January 31, 2008 incorporated by reference from our Annual Report on Form 10-KSB filed on July 15, 2008
10.10	Convertible Note with Four Tong Investments Limited, dated August 19, 2008 incorporated by reference on Form 8-K filed on August 26, 2008
10.11	Share Purchase Agreement with SGI Partners, LLC dated August 4, 2009 incorporated by reference on Form 8-K filed on August 7, 2009
10.12	Share Purchase Agreement with Patagonia dated February 9, 2010 incorporated by reference from our Quarterly Report on Form 10-Q filed February 22, 2010
10.13	Purchase Agreement with Enco Exploration Inc., dated March 23, 2010 incorporated by reference on Form 8-K filed on March 23, 2010
10.14	Purchase Agreement with Minera Inc., dated August 26, 2010 incorporated by reference on Form 8-K filed on August 31, 2010
10.15	Purchase Agreement with Dakota Resource Holding LLC, dated August 26, 2010 incorporated by reference on Form 8-K filed on August 31, 2010
10.16	Purchase Agreement with Minera Cerro El Diablo Inc., dated August 26, 2010 incorporated by reference on Form 8-K filed on August 31, 2010
10.17	Share Purchase Agreement with Genoa Energy Resources Inc. And Andean Geothermic Energy SAC, dated November 5, 2010 incorporated by reference on Form 8-K filed on November 8, 2010
(31)	Rule 13a-14(a)/15d-14(a) Certifications
31.1*	Section 302 Certification of Richard Bachman
31.2*	Section 302 Certification of Kevin Pikero
(32)	Section 1350 Certification
32.1*	Section 906 Certification of Richard Bachman
32.2*	Section 906 Certification of Kevin Pikero
(99)	Additional Exhibits
99.2	Independent Review of the Rio Chubut Uranium Project prepared by Brian Cole, P.Geo., dated September 23, 2005 incorporated by reference from our annual report on Form 10-KSB filed on July 14, 2006

3

(101)	XBRL
101.INS **	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

*Filed with original Form 10-Q on August 16, 2011.

**XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document.

4

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MUSTANG GEOTHERMAL CORP.

Dated: September 14, 2011

By:  /s/ Richard Bachman

Richard Bachman

President, CEO and Director

(Principal Executive Officer)

Dated: September 14, 2011

By:  /s/ Kevin Pikero

Kevin Pikero

CFO and Director

(Principal Financial Officer)

5

XML



CONSOLIDATED BALANCE SHEET PARENTHETICALS (USD $)	Jun. 30, 2011	Mar. 31, 2011
Common stock, par or stated value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	33,492,057	33,492,057
Common stock, shares outstanding	33,492,057	33,492,057
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000

XML



CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		114 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
REVENUES	$ 0	$ 0	$ 0
Depreciation	0	232	2,787
Depreciation geothermal leases	77,500	25,000	300,000
Management fees	30,776	30,000	636,610
Professional fees	35,344	5,500	472,463
Consulting fees	31,329	0	653,679
Exploration costs	175,018	0	550,105
Interest on loans	7,851	5,073	126,148
Investor relation fees	0	0	415,097
Travel	1,198	20,216	68,196
General and administrative	9,656	6,803	230,250
Recovery of expenses	0	0	(5,575)
Impairment of intangible asset	0	0	7,560,753
Total operating expenses	368,672	92,824	11,010,513
Operating loss	(368,672)	(92,824)	(11,010,513)
Interest income	0	0	10,127
Total other income	0	0	10,127
Net loss from continuing operations	(368,672)	(92,824)	(11,000,386)
Gain (Loss) from disposal of subsidiary	0	0	(1,899,991)
Gain from disposal of subsidiary	0	0	755,281
Gain (Loss) on discontinued operations	0	0	(1,144,710)
Net income (loss)	(368,672)	(92,824)	(12,145,096)
Net loss per share for continuing operations basic and diluted	$ (0.01)	$ (0.09)
Net loss per share for discontinued operations basic and diluted	$ 0.00	$ (0.09)
Weighted average common shares outstanding - Basic and diluted	33,492,057	1,022,128
Foreign Currency translation	(2,522)	0	(2,522)
Comprehensive loss	$ (371,194)	$ (92,824)	$ (12,147,618)

XML



Document and Entity Information	3 Months Ended
	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	MUSTANG GEOTHERMAL CORP
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001182737
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding	54,492,057
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

XML



Common Stock

3 Months Ended

Jun. 30, 2011

Common Stock

Common Stock

Note 6

Common Stock

On July 22, 2010, Financial Industry Regulatory Authority (FINRA) approved a 200 to 1 reverse stock split of the Company’s common stock, and a name change to Mustang Geothermal Corp.   The pre-split shares were 204,425,600 and the post split amount was 1,517,057 shares.  There was an adjustment of 494,929 shares for the reverse stock split to adjust holdings so that no shareholders have less than 200 common stock of the Company post-split as a result of the split.  As at June 30, 2011, the total issued and outstanding was 33,492,057.

On August 26, 2010, the Company issued 14,000,000 shares at $0.15 per share in exchange for certain geothermal leases.

On November 5, 2010, the Company entered into an agreement and issued 15,000,000 shares at $0.12 per share plus $25,000 to acquire Andean Geothermic Energy SAC.

Non-cash Transactions

On August 26, 2010, the Company issued 14,000,000 common shares at $0.15 per share totalling $2,100,000 for the purchase of the geothermal leases.  On November 5, 2010, the Company issued 15,000,000 shares for the acquisition of its subsidiary, Andean Geothermic Energy SAC.  The Company issued 2,975,000 common shares totaling $393,000 to consultants for consulting services, which is shown under prepaid expenses.     

XML



Related Party Transactions

3 Months Ended

Jun. 30, 2011

Related Party Transactions

Related Party Transactions

Note 11  Related Party Transactions

On December 10, 2004 the Company issued a note payable in the amount of $25,000 to the former President of the Company for the purpose of funding exploration activities.  The note bears no interest and is due and payable on demand.  As of June 30, 2011, the balance of the loan is $22,500.

Effective October 1, 2005, the Company began paying a management consulting fee to Minera Teles Pires Inc., a company controlled by the President and director of the Company.  The agreement provides a fixed fee of $10,000 per month of which $5,000 is paid and the other $5,000 deferred until financing is obtained by the Company.  During the period ended June 30, 2011, the Company incurred $30,000 in management fees from Minera Teles Pires Inc.  As at June 30, 2011, the Company owed Minera Teles Pires $442,079 for management fees and out of pocket expenses.

XML



Nature and Continuance of Operations

3 Months Ended

Jun. 30, 2011

Nature and Continuance of Operations

Nature and Continuance of Operations

Note 2

Nature and Continuance of Operations

Mustang Geothermal Corp., formerly Urex Energy Corp (the “Company”) was incorporated in the State of Nevada on February 6, 2002 and changed its fiscal year end from September 30 to March 31. In July 2006, the Company changed its name from Lakefield Ventures, Inc. to Urex Energy Corp. Additionally on July 22, 2010 the Company changed its name from Urex Energy Corp to Mustang Geothermal Corp reflecting a change in business. The Company has been in the exploration stage since its formation and has not realized any revenues from its planned operations. The Company is primarily engaged in the acquisition, exploration, and development of geothermal properties.  Upon location of a commercial geothermal energy resource, the Company expects to actively prepare the site for the extraction of geothermal energy and the production of renewal electrical power.

The Company entered into an agreement with Enco Explorations Inc. on March 18, 2010 to purchase certain Geothermal Leases in exchange for 100,000,000 shares (500,000 shares post reverse split) of the Company’s common stock, which was valued at $0.01 on the transaction date.

Effective July 22, 2010, the Financial Industry Regulatory Authority, Inc. or FINRA, approved the Company’s name change from Urex Energy Corp to Mustang Geothermal Corp. and a reverse stock split of 200 to 1.  

On August 26, 2010, the Company entered into agreements with Minera Inc., Dakota Resource Holdings LLC., and Minera Cerro El Diablo Inc. to acquire certain geothermal leases totaling 9800 acres located in the State of Nevada for 14 million shares of the Company’s common stock, which was valued at $0.10 on the transaction date.

On November 5, 2010, the Company completed an agreement to acquire Andean Geothermic Energy S.A.C., a Peruvian Company, from Genoa Energy Resources Inc. for 15 million shares of the Company’s common stock, which was valued at $0.12 on the transaction date and a US$25,000 cash payment.  Andean Geothermic Energy S.A.C. has 4 geothermal applications totaling 3600 hectares (8896 acres) in the provinces of Puno and Arequipa in country of Peru.

XML



Geothermal Leases and Properties

3 Months Ended

Jun. 30, 2011

Geothermal Leases and Properties

Geothermal Leases and Properties

Note 8   Geothermal Leases and Properties

On March 18, 2010, the Company acquired 100% interest of three geothermal leases located in the State of Nevada.  These leases were purchased from ENCO Explorations, Inc. in exchange for 100,000,000 shares of Company’s common stock, which was valued at $0.01 on the date of the transaction.  The initial lease tenure is 10 years and is renewable up to 40 years, providing that geothermal production has been realized in the initial term.  The annual lease payment is $3/acre for the first 10 years, approximately $16,386 for the 5462 acres noted here.  The Leasing Act states that future electrical production sold from the leases would attract a gross royalty of 1.75% for the first ten years of lease and 3.50% for the remaining term of the lease.

Lease Serial Number	County	Acres
NVN 86858	Pershing	1920
NVN 86933	White Pine	1120
NVN 86930	White Pine	2422
	TOTAL	5462 Acres

On August 26, 2010, the Company acquired 100% interest of three geothermal leases located in the State of Nevada.  These leases were purchased from Minera Inc., Minera Cerro El Diablo Inc. and Dakota Resource Holdings LLC in exchange for the Company’s common stock valued at $0.15 per share in the amount of 3,000,000 shares, 5,000,000 shares and 6,000,000 shares, respectively. The initial lease tenure is 10 years and is renewable up to 40 years, providing that geothermal production has been realized in the initial term.  The annual lease payment is $3/acre for the first 10 years, approximately $29,400 for the 9800 acres noted here.    The Leasing Act states that future electrical production sold from the leases would attract a gross royalty of 1.75% for the first ten years of lease and 3.50% for the remaining term of the lease.

Lease Serial Number	County	Acres
NVN 88490	Lander	3660
NVN 88475	Mineral	4420
NVN 88494	Nye	1720
	TOTAL	9800 Acres

On November 5, 2010, the Company acquired 99.99% shares of Andean Geothermic Energy SAC, a Peruvian Corporation that has access to four geothermal applications consisting of 3,600 hectares (8896 acres) in the province of Arequipa.  The Company paid 15 million shares of common stock valued at $0.12 per share with a $25,000 cash payment.   The $25,000 cash payment has not been paid as at the date of this report.

The Company has a two-year lease to explore for geothermal energy consistent with the concessions it acquired that expires on October 1, 2012.  If the exploratory work is successful, then the Company may choose to apply to convert the concessions into exploitation concessions that have a renewable ten-year term.

In May 2011, the Company obtained an additional geothermal lease in the State of Nevada through the public lease auction. The lease serial number is NVN089598 and consists of 570 hectares.

Properties in Peru:

Properties	County	Area (Ha)
Banos Del Inca	Arequipa	900
Condoroma	Cusco	900
Ninobamba	Ayacucho	900
Paclla	Arequipa	900
	TOTAL	3,600 Ha

XML



Promissory Notes Payable

3 Months Ended

Jun. 30, 2011

Promissory Notes Payable

Promissory Notes Payable

Note 13

   Promissory Notes Payable

The following promissory notes payable are unsecured and bear interest at 5% per annum.  They are due on demand:

Date	Maturity	Interest rate	Principal	Interest	Total
Nov 15, 2005	On demand	5% per annum	$                 82,775	$                 23,279	$                 106,054
Dec 01, 2005	On demand	5% per annum	$                 18,800	$                   5,246	$                   24,046
Jan 06, 2006	On demand	5% per annum	$               100,000	$                 27,411	$                 127,411
Jul 14, 2006	On demand	5% per annum	$               103,975	$                 25,808	$                 129,783
Total			$               305,550	$                 81,744	$                 387,294

The following promissory notes payable are unsecured and bear interest at 12% per annum.

Date	Maturity	Interest rate	Principal	Interest	Total
Mar 25, 2011	Mar 25, 2012	12% per annum	$                   50,000	$                 1,594	$                   51,594
Apr 27, 2011	Apr 27, 2012	12% per annum	$                   50,000	$                 1,052	$                   51,052
Jun 16, 2011	Jun 16, 2012	12% per annum	$                   50,000	$                    230	$                   50,230
Total			$                 150,000	$                 2,876	$                 152,876

As of June 30, 2011, the balance of promissory notes payable amounted to $455,550.

XML



Acquisition of Peruvian Subsidiary

3 Months Ended

Jun. 30, 2011

Acquisition of Peruvian Subsidiary

Acquisition of Peruvian Subsidiary

Note 9

Acquisition of Peruvian Subsidiary

On November 5, 2010, the Company acquired 99.99% shares of Andean Geothermic Energy SAC (“Andean”), a Peruvian Corporation that has concessions of four geothermal properties consisting of 3,600 hectares (8,896 acres) in the provinces of Cusco, Ayacucho and Arequipa.  The Company paid 15 million shares of common stock valued at $0.12 per share with a $25,000 cash payment.  The $25,000 cash payment has not been paid as at the date of this report.  This acquisition was recorded as a purchase of Andean.  The value of Andean was determined as the consideration paid plus the fair market value of the shares issued and the cash payment.  The purchase price was then allocated against the fair market value of the assets and liabilities assumed, with the residual balance recorded as goodwill.  Because Andean has as of yet no proven geothermal energy reserves, the amount allocated toward goodwill was considered 100% impaired and written off at the date of the acquisition.

XML



Mineral Properties

3 Months Ended

Jun. 30, 2011

Mineral Properties

Mineral Properties

Note 7

Mineral Properties

In December 2005, the Company acquired 100% interest in the La Jara Mesa Extension uranium property consisting of 137 unpatented mining claims of approximately 2,740 acres through

staking, in the Grants Mining District of Cibola County in New Mexico, USA.  The Company plans to commence a drilling exploration program as soon as financing is arranged.                                

XML



CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock 300,000,000 shares authorized -Shares Issued	Common Stock 300,000,000 shares authorized - Par Value $.001 per share	Additional Paid-In Capital	Accumulated deficit	Deferred Consulting Fees	Accumulated Comprehensive Losses	Total shareholders' equity
BALANCE, at Mar. 31, 2008		422,128	422	8,141,578	(7,950,369)	0	(512)	191,119
Shares issued for services.		20,000	20	119,980	0	0	0	120,000
Shares issued for services ,		5,000	5	29,995	0	0	0	30,000
Shares issued for services..		20,000	20	119,980	0	0	0	120,000
Shares issued for services.,		55,000	55	109,945	0	0	0	110,000
Net loss		$ 0	$ 0	$ 0	$ (1,404,241)	$ 0	$ 0	$ (1,404,241)
Deferred consulting fees		0	0	0	0	(106,400)	0	(106,400)
Net change in foreign currency translation		0	0	0	0	0	(24,715)	(24,715)
BALANCE, at Mar. 31, 2009		522,128	522	8,521,478	(9,354,610)	(106,400)	(25,227)	(964,237)
Deferred consulting fees		0	0	0	0	106,400	0	106,400
Shares issued for asset		500,000	500	999,500	0	0	0	1,000,000
Currency translation expensed upon sale of subsidiary		0	0	0	0	0	25,227	25,227
Net income		0	0	0	139,492	0	0	139,492
Adjustment for reverse stock split		494,929	495	(495)	0	0	0	0
BALANCE, at Mar. 31, 2010		1,517,057	1,517	9,520,483	(9,215,118)	0	0	306,882
Net income		0	0	0	(2,561,307)	0	0	(2,561,307)
Shares issued for asset @ $0.15		14,000,000	14,000	2,086,000	0	0	0	2,100,000
Shares issued for services @ $0.25		100,000	100	24,900	0	0	0	25,000
Shares issued for services @ $0.11		2,800,000	2,800	305,200	0	0	0	308,000
Shares issued for asset @ $0.12		15,000,000	15,000	1,785,000	0	0	0	1,800,000
Shares issued for services @ $0.80		75,000	75	59,925	0	0	0	60,000
BALANCE, at Mar. 31, 2011		33,492,057	33,492	13,781,508	(11,776,425)	0	0	2,038,575
Net change in foreign currency translation			0				(2,522)	(2,522)
Net income		$ 0	$ 0	$ 0	$ (368,672)	$ 0	$ 0	$ (368,672)
BALANCE, at Jun. 30, 2011		33,492,057	33,492	13,781,508	(12,145,096)	0	(2,522)	1,667,382

XML



Going Concern

3 Months Ended

Jun. 30, 2011

Going Concern

Going Concern Note

Note 3

Going Concern

These financial statements have been prepared assuming the Company will continue as a going concern.  The  Company  has accumulated  a  deficit  of $12,145,096 since inception and,  has yet to achieve  profitable  operations and further losses are anticipated in the development of its business, which raises  substantial  doubt  about the  Company's  ability to continue as a going  concern.  At June 30, 2011, the Company had a working capital deficiency of $1,132,618.  Its  ability to  continue  as a going  concern is dependent  upon the ability of the Company to generate  profitable operations in the future and/or to obtain the necessary  financing to meet its  obligations  and repay its  liabilities  arising from normal  business  operations  when they come due. These  financial statements  do not  include  any  adjustments  to the  amounts and classification  of assets and liabilities  that may be  necessary should the Company be unable to continue as a going  concern.  The Company anticipates that additional funding will be in the form of equity financing from the sale of common stock and/or commercial borrowing. There can be no assurance that capital will be available, it will be on terms acceptable to the Company.  The issuances of additional equity securities by the Company would result in a dilution in the equity interests of its current stockholders. The Company may also seek to obtain short-term loans from the directors of the Company.  There are no current arrangements in place for equity funding or short-term loans as of June 30, 2011.

XML



Net Loss Per Share

3 Months Ended

Jun. 30, 2011

Net Loss Per Share

Net Loss Per Share

Note 4    Net Loss Per Share

Basic net loss per share (“EPS”) is based on the weighted average number of common shares outstanding and diluted EPS is based on the weighted average number of common shares outstanding and dilutive common stock equivalents. Basic EPS is computed by dividing net loss (numerator) applicable to common stockholders by the weighted average number of common shares outstanding (denominator) for the period. All EPS presented in the financial statements are basic EPS as defined by Accounting Standards Codification  260, "Earnings Per Share". There are no potentially dilutive securities outstanding. All per share and per share information are adjusted retroactively to reflect stock splits and changes in par value. Stock options and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computations.  Fully diluted shares outstanding were 33,492,057 as of June 30, 2011, and there were no stock options and warrants issued.

XML



Convertible Notes Payable

3 Months Ended

Jun. 30, 2011

Convertible Notes Payable {1}

Convertible Notes Payable

Note 12

   Convertible Notes Payable

On August 14, 2008, the Company executed a 5% convertible note of $100,000 that was due August 13, 2010.  The note may be converted from time to time, all or any part of the principal plus any unpaid accrued interest thereof into common stock of the Company at a conversion price per share equal to the greater of i) the closing market price per share of the common stock on the trading day immediately preceding the date of conversion as quoted on the OTC-BB or such other exchange upon which the Company’s shares are then listed or traded, or ii) $0.10 per share.  The conversion price shall be subject to adjustments.  The minimum amount to be converted is $10,000.  As of June 30, 2011, this note is outstanding.

Date	Principal	Interest
Aug 15, 2008	$100,000	$14,555

XML



Recently Issued Accounting Standards

3 Months Ended

Jun. 30, 2011

Recently Issued Accounting Standards

Summary of Significant Accounting Policies

Note 5

Recently Issued Accounting Standards

Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles

In August 2010, the FASB issued Accounting Standard Updates No. 2010-21 (ASU No. 2010-21) “Accounting for Technical Amendments to Various SEC Rules and Schedules” and No. 2010-22 (ASU No. 2010-22) “Accounting for Various Topics – Technical Corrections to SEC Paragraphs”.  ASU No 2010-21 amends various SEC paragraphs pursuant to the issuance of Release no. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies. ASU No. 2010-22 amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics.  Both ASU No. 2010-21 and ASU No. 2010-22 are effective upon issuance.  The amendments in ASU No. 2010-21 and No. 2010-22 will not have a material impact on the Company’s financial statements.

A variety of proposed or otherwise potential accounting standards are currently under study by standard-setting organizations and various regulatory agencies. Because of the tentative and preliminary nature of these proposed standards, management has not determined whether implementation of such proposed standards would be material to the Company’s consolidated financial statements.

XML



Subsequent Events

3 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

Note 15   Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date of issuance of the unaudited interim consolidated financial statements.  During this period, the Company did not have any material recognizable subsequent events

XML



CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended		114 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Net income (loss)	$ (368,672)	$ (92,824)	$ (12,145,096)
(Income) loss from discontinued operations	0	0	1,899,991
Depreciation and amortization	0	232	6,682
Depreciation geothermal leases	77,500	25,000	300,000
Impairment of goodwill	0	0	7,539,285
Shares issued for services	0	0	773,000
Deferred consulting fees		0
Shares issued for assets	0	0	1,000,000
Accounts receivable	(732)	0	(1,435)
Prepaid expense	114,537	0	(96,645)
Accounts payable	52,824	66,348	636,169
Discontinued operations, net	0	0	(2,281,857)
Net cash used in operating activities	(124,543)	(1,244)	(2,369,906)
(Gain) loss on divestiture of discontinued operations	0	0	(755,281)
Purchase of assets	0	0	(25,000)
Purchase of fixed assets	0	0	(2,788)
Option agreement	0	0	(2,500)
Net cash used in investing activities	0	0	(785,569)
Proceeds from purchase of assets	0	0	21,468
Proceeds from the issuance of common stock	0	0	2,542,000
Proceeds from line of credit	0	0	33,403
Proceeds from (repayments of) notes payable	100,000	0	478,050
Proceeds from (repayments of) line of credit	(272)	0	(272)
Convertible notes payable	0	0	100,000
Net cash provided by financing activities	99,728	0	3,174,649
Effect of Exchange Rate Changes on Cash	0	0	0
Cash held in trust	0	0	(1,665,773)
Cash released from trust during current period	0	0	1,665,773
Net cash flows from continued operations	(24,815)	(1,244)	1,156,321
Net cash flows from discontinued operations	0	0	(1,137,147)
Effect of foreign currency exchange	(2,522)	0	(2,522)
Cash and Cash Equivalents, Beginning of Period	43,989	73,721	0
Cash and Cash Equivalents, End of Period	$ 16,652	$ 72,478	$ 16,652
Common stock issued for assets	0	0	4,900,000

XML



Summary of Significant Accounting Policies

3 Months Ended

Jun. 30, 2011

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1

Summary of Significant Accounting Policies

Interim Reporting

While the information presented in the accompanying interim three months financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America.  These interim financial statements follow the same accounting policies and methods of their application as the Company’s March 31, 2011 annual financial statements.  All adjustments are of a normal recurring nature.  It is suggested that these interim financial statements be read in conjunction with the Company’s March 31, 2011 annual financial statements.

Operating results for the three months ended June 30, 2011 are not necessarily indicative of the results that can be expected for the year ended March 31, 2012.

Principles of Consolidation and Presentation

The consolidated financial statements include the accounts of Mustang Geothermal Corp. and Andean Geothermic Energy, S.A.C. All significant intercompany balances and transactions have been eliminated in consolidation.

XML



Intangible Assets

3 Months Ended

Jun. 30, 2011

Intangible Assets

Intangible Assets

Note 10 Intangible Assets

Intangible assets with definite lives are amortized over their estimated useful life.  The geothermal leases are amortized over 10 years.

				Accumulated
		Cost		Amortization		Net
March 2010 - geothermal leases	$	1,000,000	$	125,000	$	875,000
August 2010 - geothermal leases	$	2,100,000	$	175,000	$	1,925,000
Total	$	3,100,000	$	300,000	$	2,800,000

XML



Line of Credit

3 Months Ended

Jun. 30, 2011

Line of Credit

Line of Credit

Note 14   Line of Credit

The Company executed a note with a Line of Credit with Wells Fargo Bank in California.  The Line of Credit allows the Company to borrow up to thirty-five thousand dollars ($35,000).  The balance of this Line of Credit at June 30, 2011 is $33,131.

XML



CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Mar. 31, 2011
Cash	$ 16,652	$ 43,989
Prepaids	96,645	211,181
Receivables	1,435	703
Total current assets	114,732	255,873
Geothermal Leases, net	2,800,000	2,877,500
Total Assets	2,914,732	3,133,373
Accounts payable and accrued liabilities	636,169	583,345
Due to related party	22,500	22,500
Line of credit	33,131	33,403
Notes payable to related party	455,550	355,550
Convertible notes payable	100,000	100,000
Total current liabilities	1,247,350	1,094,798
Common stock, $0.001 par value 300,000,000 shares authorized 33,492,057 shares issued and outstanding,	33,492	33,492
Preferred stock, $0.001 par value. 10,000,000 shares authorized. No shares outstanding and issued.	0	0
Additional paid-in capital	13,781,508	13,781,508
Deficit accumulated during the exploration stage	(12,145,096)	(11,776,425)
Total Comprehensive income	(2,522)	0
Total stockholders' equity	1,667,382	2,038,575
Total Liabilities and Stockholders' Equity	$ 2,914,732	$ 3,133,373