Caliber Energy, Inc. (formerly Rincon Resources, Inc.) (formerly Twin Ventures, Ltd.) (the Company), an exploration state company, was incorporated on November 6, 2002 in the State of Delaware as Twin Ventures, Ltd. On June 18, 2004, the Company's name was changed to Rincon Resources, Inc. On March 14, 2005, the Company changed its name to Caliber Energy Inc. The Company is headquartered in Tucson, Arizona.

The Company is an exploration state mining and mineral company. On November 21, 2002 the Company became actively engaged in acquiring mineral properties, raising capital, and exploring and developing properties for production. The Company has not conducted any significant mining operations or mining activities from inception; accordingly, the Company is deemed to be in the exploration state.

On November 21, 2002, the Company acquired mineral claims (the "Ritz Claims") located in the Lillooet Lake Region of Southwest British Columbia, Canada. The property consists of twenty unpatented two post mineral claims and one unpatented four post mineral claim representing forty units that have been staked and recorded in the Lillooet mining division. For purposes of recording the Ritz Claims the Company acquired New Heights Capital Corporation (a Canadian corporation) and transferred the claims the subsidiary in exchange for 100% of the subsidiary's outstanding stock. These claims have since lapsed

On July 26, 2004, the Company executed an agreement and made the 1st statutory payment of $55,000 to acquire a 75% interest in the Tudor Gold Property. The Tudor Gold Property is located in eastern Ontario, Canada approximately 100 miles northeast of Toronto. The property lies within Tudor and Grimsthorpe Townships. The property consists of twenty-two contiguous unpatented mining claims containing sixty units covering approximately 2,965 acres of land. The Company in 2004 launched a comprehensive, property wide, surface exploration program. The results of the surface work were encouraging however, not outstanding as to allow the Company to raise the required capital. Although the Company intended to follow-up with drill testing of the mineralized zones of the property, this program was not funded.

After careful consideration as to the results of the Tudor Project and the gereral gold market in general, management on March 2, 2005 decided to change direction from gold exploration into the energy sector. With the current near record prices for most energy commodities, management is of the opinion that in order to increase shareholder value, the Company would benefit from energy projects that have a low risk, high rate of return and could provide the Company cash flow under time frames that are more favorable than metals.

The Company name change and CUSIP number more adequately reflect that move into the energy sector. Projects in oil & gas and coal are now the focus of the

Company. Oil and gas projects in California and Canada as well as three advanced coal projects of outstanding merit in Eastern Europe and Canada were reviewed and two acquisitions were made, these being the Bolloque Oil Project in Alberta, Canada and the new coal project in the Yakutia region of eastern Russia that includes large undeveloped resources of high demand metallurgical grade coal. By providing project financing, equipment and technology, the Company will be granted a portion of revenue from sales contracts already in place to supply metallurgical grade coal to existing buyers in the Far East.

INDUSTRY OVERVIEW

CANADA

According to Alberta Energy & Utilities Board Report "ALBERTA'S RESERVES 2002 & SUPPLY/OUTLOOK 2003-2012": The Western Canadian province of Alberta holds tremendous potential for oil and gas production and is ranked as the ninth largest oil producer and third largest natural gas producer in the world. Additionally, Alberta's oil sands contain the largest crude bitumen resource in the world, consisting of approximately 315 billion barrels of potentially recoverable crude. Alberta's 2002 production from all sources was 1.54 million barrels/day and is forecast to reach 2.7 million barrels/day by 2012. Additionally, Alberta's remaining established reserves of natural gas at the end of 2003 stood at 42 Tcf. To-date, much of Alberta's gas development has centered on shallow gas within southeastern Alberta, where over half of the province's gas-producing wells are located but only sixteen percent of natural gas is currently produced.

KANSAS

The oil and gas boom returned to Kansas in 2005. Its impact on the state economy depends on how long it lasts. Kansas oil and gas production was worth $4.7 billion in 2005, according to estimates by the Kansas Geological Survey at the University of Kansas. The total value of oil produced in the state in 2005 was estimated at about $1.8 billion, up from about $500 million in 2004. The total value of natural gas production was more than $2.8 billion in 2005, up from $2.2 billion the previous year. Natural gas production in 2005 is estimated at 380 billion cubic feet, down about 20 billion cubic feet from the previous year. The statewide peak was 990 billion cubic feet in 1970.

COAL

As the demand for electricity continues to grow here in North America, and around the world, coal continues to make low-cost electricity possible. Low-cost electricity is primarily a factor of fuel prices, and coal is and will continue to be the least expensive option for generating electricity. Electricity consumption in the United States is projected to grow 44 percent by 2020. Coal has enabled America's electric utilities to keep up with this increasing demand. The use of coal for generating electricity has nearly tripled in the last 30 years. Coal will remain the largest single source of electricity--accounting for 51 percent of power generation in 2025. Energy demand continues to pressure the US to seek out alternative sources and new technologies as political struggles in the Middle East continue to raise concern over oil supplies. With Energy consumption and demand continually increasing, the coal-based electricity

industry has a strong commitment to the environment and to producing electricity that is increasingly clean.

EMPLOYEES

As of the date of this Report, we do not have any employees other than our directors and officers.

We have executed a Consulting Agreement with our Chief Executive Officer, Graeme Scott whereby he will provide us with general management consulting services for a monthly retainer of $5,000. This agreement can be cancelled by either party with a month's notice of termination.

On March 10, 2005 we executed a consulting agreement with our Chief Financial Officer and Director, David Nalyor whereby he will provide us with general financial and administrative consulting services for a monthly retainer of $2,500. Mr. Rhodes resigned his positions with the Company effective January 8, 2005.

RISK FACTORS

In addition to the other information in this current report, the following factors should be carefully considered in evaluating our business and prospects:

UNSUCCESSFUL OPERATING HISTORY

We have a limited operating history upon which an evaluation of our future prospects can be made. We have entered into the business of evaluation, acquisition, exploration, and development of Gold mining prospects. We will be reviewing additional business acquisition opportunities in this field if and when they become available. We do not have any operating history in the Oil and Gas acquisition, exploration and development industry and can not give assurances that we will be successful in securing revenues from results of any future Oil and Gas exploration and development activities.

Even though we have partially completed subscriptions to an Equity Financing and secured loans from a director of the Company, there is no guarantee that we will be able to raise the additional financing necessary to develop our business plan or acquire new business assets.

IF WE DO NOT OBTAIN ADDITIONAL FINANCING, WE WILL NOT BE ABLE TO ACQUIRE ANY ASSETS

As of December 31, 2005, we had insufficient funds to meet our obligations in connection to the mining exploration and development interests that we purchased. In order to meet these obligations or acquire any additional business interest, we will have to raise funds necessary to meet our present Business obligations or to finance new operations. If we are not able to raise the funds necessary to fund our business objectives, we may have to delay the implementation of any future business plan.

We have arrangements for limited financing and we can provide no assurance that we will be able to obtain the additional required financing when needed. Obtaining additional financing will be subject to a number of factors, including:

o Market conditions; o Investor acceptance of potential business assets; and o Investor sentiment.

These factors may make the timing, amount, terms and conditions of additional financing unattractive or unavailable to us. If we are not successful in achieving financing in the amount necessary to meet our present obligations in connection with the mining interests that we acquired or business interests that we may acquire, implementation of our business plan may fail or be delayed.

IF WE ARE UNABLE TO GENERATE SIGNIFICANT REVENUES FROM OUR OPERATIONS, OUR BUSINESS WILL FAIL.

If we are unable to generate significant revenues from any operations resulting from our Mining exploration and development activities or any business interest we acquire, we will not be able to achieve profitability or continue operations.

BECAUSE THE TRADING MARKET FOR OUR SHARES IS SPECULATIVE AND VOLATILE, SHAREHOLDERS MAY NOT BE ABLE TO SELL THEIR SHARES.

Our shares of common stock are quoted for trading on the OTC Bulletin Board and have been trading through the facilities of that quotation system. Due to the volatile and speculative nature of our trading market, we cannot assure you that you will be able to sell your shares for a reasonable price.

OUR SECURITIES MAY BE SUBJECT TO PENNY STOCK REGULATION.

If the trading market for our securities remains volatile and the price of our common shares remains below $5.00 per share, then we will be subject to "penny stock" regulation. "Penny stock" rules impose additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors (generally those with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with a spouse). For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchase of such securities and have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule prescribed by the Commission relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly

statements must be sent disclosing recent price information on the limited market in penny stocks. Consequently, the "penny stock" rules may restrict the ability of broker-dealers to sell our shares of common stock. The market price of our shares would likely suffer as a result.

FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate, believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not place too much reliance on these forward-looking statements. Our actual results are most likely to differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us described in the Risk Factors section and elsewhere in this Report.