`                          FORM 10-KSB
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

(Mark One)
[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 1999

                                OR

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

For the transition period from 1/1/99 to 12/31/99
Commission file number 33-3492-D

EUROPEAN AMERICAN RESOURCES, INC. (Formerly Merlin Mining Company)
      (Exact name of registrant as specified in its charter)

       Delaware                                    87-0443214
(State or other jurisdiction of               (I.R.S. Employer
 incorporation of organization)               Identification No.)

400 Cleveland Street, Suite 901, Clearwater, FL           33755
(Address of principal executive offices)               (Zip Code)

Registrant's telephone number, including area code: (727) 298-0636

Securities registered pursuant to Section 12(g) of the Act:

                               NONE
                         (Title of Class)

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 requirement for the past 90 days.  Yes X   No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definite proxy or information statements
incorporated by reference in Part III of this Form 10-KB or any amendment to
it. [X]

As of December 31, 1999, the Issuer had outstanding 16,314,908 shares of its
common stock, as adjusted, par value $0.0001 per share.  As of December 31,
1999, 9,113,813 shares were held by non affiliates with an aggregate market
value of $7,382,188.










                                1
<PAGE>
                             PART I

Item 1. Business.

         General Development of Business

         The Company was incorporated in the State of Delaware on July 6,
1987.  We are a Junior Mining Company.  Since inception, the Company, which
considersitself a Junior Mining Company,  has acquired various mining rights and
has held up to as many as approximately 6,700 patented, unpatented lode, mill
sites andplacer claims on certain properties located throughout the State of
Nevada.Presently the Company controls 830 of such claims, approximately 192 of
which were subject to an appeal with the IBLA for the "overstaking" by the same
mining company in which the Company has entered into an "Earn-In," exploration
joint venture agreement,  Homestake Mining Company.  The joint venture agreement
included provisions whereby we agreed to drop our appeal and we have agreed to
forego the 192 claims in the Spring Valley region.  The Company has recorded a
reduction to resource properties of $116,736 in 1999, to reflect the removal of
these claims. (See Table under this Section). Certain of these rights were
acquired by agreements to pay an aggregate total royalty based upon various
percentages of the net profits delivered from the properties computed by a
predefined formula. Since acquisition of these properties, the Company has not
commenced any extractive mining operations.

         Our current inventory of claims we now control, subject to the IBLA
appeal discussed above, 768 unpatented and 62 patented claims and mill sites
(see Table under this Section); primarily concentrating these efforts on the 62
patented claims and mill sites and 47 unpatented claims in the Prospect Mountain
region, which in May of 1998 the Company renegotiated and closed title to these
claims.
The Company's claim sites in this region are within approximately one mile of
the Archimedes (Ruby Hill) open pit, an actively producing gold mining
operation, which is owned by Homestake Mining Company.  On February 18th the
Company agreed with Homestake to a joint venture agreement whereby Homestake
has committed to invest a minimum of $2,000,000 to maintain, explore or develop
the area of interest which includes 56 of our 62 patented claims and 47 of our
unpatented claims as well as approximately 30 claims they control.  In addition
to the excitement over the quantities of resources exhibited at Archimedes Open
Pit, the extraction costs are some of the lowest reported in the industry ($104
per ounce in 1999).  Although this provides no assurance in itself that the
joint venture claims in this region can provide similar results, management
considers this to be our best action to exploit its claims in this region. It
should be noted that
these claims are subject to a net smelter agreement with the former sellers (see
Commitments under this Section and in the financial statements; see Item 13).

         The patented and unpatented lode and placer mining claims are in
numerous separate claim groups throughout Nevada.  Although several of the
claims are contiguous, many are not, therefore the Issuer has been required to
conduct exploration and other field work to satisfy the annual assessment work
on the claims in numerous separate locations.

         The validity of all unpatented mining claims, which constitutes most
of the Issuer's property holdings, is subject to inherent uncertainties.  Apart
from 62 patented lode claims in the Prospect Mountain region, most of the
unpatented claims, if retained (also subject to an expected IBLA decision),
will be leased from the Bureau of Land Management.  Such claims are located on
federal land pursuant to procedures established by the General Mining Law of
1872, as amended. Unpatented claims, when properly located, staked, and posted
according to regulation, give the claimant possessory rights only.


 .                               2
Possessory title to an unpatented claim, when validly initiated, endures unless
lost through abandonment due to failure to perform and file proof of
required annual assessment work, through failure to timely record conveyances,
or through a forfeiture which results from an adverse location made while the
prior location is in default with respect to the performance of annual
assessment work.  Because many of these factors involve findings of fact, title
validitycannot be determined solely from an examination of the record.
The continuing validity of these claims is subject to many contingencies,
including the availability of land for location at the time the location was
made, the making of valid mineral discoveries within the boundary of each claim
compliance with all regulations, both state and federal, for locating claims,
the performance of annual assessment work of $100 per year per claim, and the
making of required annual and other filings with the Bureau of Land Management
(BLM) and the county in which the claims are located.  Failure to perform
annual assessment work and failure to make required filings subjects the
claimant to forfeiture of rights through valued subsequent locations by others
or through cancellation by the government agency involved.

         Title to unpatented claims and other mining properties in the western
United States typically involves certain other inherent risks due to the
frequently ambiguous conveyancing history characteristics of such properties as
well as the frequently ambiguous or imprecise language of mineral leases,
agreements, and royalty obligations.  The Issuer has not obtained title opinions
on all of its claims, during 1998 the Company did obtain title opinions in
connection with the 62 patented and 47 unpatented claim sites, acquired in May
of 1998.  With respect to the remaining 721 leased claims the Company has yet to
obtain title opinions and has to expect an IBLA decision if the Issuer should
experience a failure of title, then costs of action, acquisition, and initial
investigation may be lost.

         The following chart sets forth the mining claims now retained by the
Issuer:
                              TABLE
EUROPEAN AMERICAN RESOURCES, INC. - MINING CLAIMS RETAINED AS OF
                        DECEMBER 31, 1999

                       Mining Approx.   State of Nevada             Number of
Project Name             District         County                     Claims

Bellehelen         Bellehelen      Nye                                39

Ellendale          Ellendale       Nye                                50

*Diamond Silverado
 (includes Dugout
 Canyon & Robinson
 Canyon)           Eureka          Eureka                   264 (Plus 62
                                                               Patents &
                                                             Mill Sites)
Mahogany Hills     Eureka          Eureka                             28

Klondike           Klondike        Esmeralda                          45

Ruby Hills         Ruby Hills      White Pine                         75

Siegel Canyon      Aurum           White Pine                         75

                                   TOTAL                             638


                                3
*56 patented claims and 47 unpatented claims in the Diamond Silverado Project in
Eureka have been contributed to the "Earn-In," exploration joint venture.

    During the year, geological results indicate that the Company has yet to
prove its reserves, however results have indicated the Company's claims do have
indications that productive reserves for certain claims are probable.  Since
these claims are not proven, estimates of their potential value are not
available at this time.

    Description of Securities

    The Issuer has 250,000,000 shares of common stock authorized at a par value
of $.0001; and 25,000,000 shares of convertible preferred stock authorized at a
par value of $.0001, of which none are issued or outstanding.

    Competition

    The Issuer faces competition in the mining field by companies in the same
sector of the business and in the same regions where the Issuer maintains its
claims.  However, such competition, as fierce as it may be, does not directly
effect the operations or profitability of the Company as long as the claims are
maintained with the BLM and the Issuer proceeds with the acquisition or joint
venture agreements in order to actively mine such claims.

    Employees

    During 1998 the Company employed directly as consultants 8 individuals. In
1999 the Company employed 2 people.  Until active mining operations are
commenced, the present management has made a concerted effort to keep employee
compensation at a minimum.

Item 2.  Properties.

    The Company maintained its offices at 400 Cleveland Street Suite 901,
Clearwater, Florida 33755 and at 91 South Main Street, P.O. Box 1066, Eureka, NV
89316.

Item 3.  Legal Proceedings.

    The Company instituted legal proceedings in Nevada on July 9, 1998 with its
former president.  On October 16, 1998, the Company's former president and the
Company agreed to mutual releases and the former president agreed to return to
the Company's treasury 350,000 shares, net of an assignment of 50,000 shares,
upon acceptance of this stipulation by the court in Nevada.

    In 1999 the shareholder waived the assignment and the additional 50,000
shares were returned to the treasury.

    During 1997, the Company entered into net smelting agreements for up to
$7,000,000 with former shareholders in exchange for the retirement of 2,187,500
shares.  In August 1998, a lawsuit was commenced against the Company by German
American Investments Limited ("GAI").  GAI was the assignor of the above
distribution rights granted by the Company to eight of its shareholders in 1997,
including its current CEO, Martin Sportschuetz.  The suit alleged that EPAR's
former president, Michael Ogilvie had fraudulently induced the shareholders to
enter into the distribution agreements and sought rescission of the distribution
agreements and return of the shares, along with damages.  At the time of the
suit the Company's current CEO was neither a shareholder of "GAI", nor did he
have a financial interest in GAI.  This lawsuit was subsequently settled. The
settlement
                                4
was amended whereas the Company is to issue 1,312,500 unrestricted shares and
1,750,000 restricted shares to rescind the distribution agreement and these were
recorded at the original value ascribed to the distribution rights, an increase
of $437,500 in common stock and additional paid in capital in 1998.  The Company
also agreed to issue 1,093,500 restricted shares, valued at one-half of the
market price of the Company's common stock on December 31, 1998, or $.3625 per
share, totaling $396,485, consistent with the value of restricted stock agreed
to by the parties for the recision, which was charged to settlement expense in
1998.

    In December, 1998, a subcontractor filed a lawsuit in Utah state court
against the Company seeking $60,000 for the breach of an alleged oral employment
agreement.  The Company continues to defend the case vigorously.  No amounts
were recorded in the financial statement.

Item 4.  Submission of Matters to a Vote of Security Holders.

    None.











































                                5
                             PART II



Item 5.  Market for Registrant's Common Equity and Related Stockholder
         Matters.

    (a) Market Information.  The Company's Common Stock is traded in the over-
the-counter market with the trading symbol "EPAR".

    The following table sets forth the high and low bid quotations for each
quarter for the two-year period through December 31, 1999, based upon
information received from the National Quotation Bureau.  Such quotations
reflect inter-dealer prices, and do not include retail mark-up, mark-down or
commission.  They may not represent actual transactions.

1999     First Quarter                    $0.63          $2.00
         Second Quarter                   $0.66          $1.63
         Third Quarter                    $0.69          $1.03
         Fourth Quarter                   $0.73          $1.43

1998     First Quarter                    $1.72          $0.84
         Second Quarter                   $1.66          $1.00
         Third Quarter                    $1.40          $0.78
         Fourth Quarter                   $1.22          $0.56

    (b) Shareholders.  As of December 31, 1999 the Company had 16,315,158
shares of common stock outstanding, held by individual shareholders and
brokerage firms and/or clearing houses, holding the Company's common shares in
street names for their clients.  The Company believes that there are
approximately 952 beneficial owners of its common stock.

    (c) Dividends.  The Company has not paid or declared any dividends upon its
Common Stock since its inception and does not contemplate or anticipate paying
any dividends upon its Common Stock in the foreseeable future.

Item 6.  Management's Discussion and Analysis of Financial Condition and
Results and Plan of Operations

    The following is management's discussion and analysis of certain
significant factors which have affected the Company' financial position and
operating results during the periods included in the accompanying consolidated
financial statements, as well as information relating to the plans of the
Company's current management.

                     RESULTS OF OPERATIONS

Twelve Months Ended December 31, 1999 vs. December 31, 1998

    The Company recorded a net loss of $849,812 for the year ended December 31,
1999 as compared to a loss of $1,167,790 for the year ended December 31, 1998.
This represents a loss per common share of $.05 for 1999 vs. $.10 for 1998.  The
primary fluctuations were the decreases in stock based compensation from
$310,275 in '98 to $112,350 in '99 and total other expenses from $193,481 in '98
to $31,839 in '99.  Included in operating costs for 1999 were $116,736 of
reductions in resource property costs previously capitalized which were
charged to operations as a result of the Company agreeing to forego 192 claims
in the Spring Valley region of Eureka in connection with the joint venture
agreement.



                                6
    The Company spent most of 1999 negotiating the "Earn-In", exploration joint
venture agreement, executed in February, 2000 with Homestake Mining Company.
The Company maintained its patented and unpatented claims with the BLM  while
it negotiated to attract the joint venture partner for all of its mining
operations On May 8, 1998, the Company entered into a significant commitment in
connection with its acquisition of 62 patented and 47 unpatented claims in the
Prospect Mountain region. The Company's geological efforts focused on these
claims due to the success of it 1997 drilling program and Homestake's Archimedes
(Ruby Hill) pit (operation), which is within approximately one mile from these
claims of the Company.  The Company is as excited about its proximity to the
Ruby Hill Pit as it is with the extractive costs cited by Homestake in the
region.

Plan of Operations

    In October of 1999, the Company entered into the letter of
intent/understanding with Homestake Mining Company, which led to the terms for
the exploration, earn-in joint venture agreement.  As of February 18, 2000, the
earn-in and joint venture agreements with Homestake Mining for an area of
interest, which contains 103 of EPAR's Prospect Mountain claims were finalized.
Homestake also agreed to contribute approximately 30 claims in the area of
interest. The joint venture plans to obtain mining rights for additional claims
within the area of interest from third parties.  Homestake is the manager of the
joint venture and has committed to expend a $300,000 minimum on exploratory and
development costs in the first round of the agreement by the end of 2000.  In
total, Homestake has committed to spend a minimum of $2,000,000 by the end of
2002 and in turn will be vested with 51% in the joint venture. Upon the
completion of a feasibility study with the recommendation to enter mining,
Homestake will become then 70% vested.

Liquidity and Capital Resources

    At December 31, 1999 the Company had a working capital deficit of $686,764.

    As a result of anticipated capital expenditures and operating losses, we
may raise additional capital through the issuance of common stock to
sophisticated investors in a transaction exempt from registration pursuant to
Rule 506 of Regulation D promulgated by the Securities and Exchange Commission
under the Securities Act of 1933.  As a result of existing credit facilities and
potential private offerings, we anticipate having sufficient working capital
through the end of fiscal year ending 2000 and beyond.  We believe the co-
venture with Homestake gives this project the substantial backing needed to
exploit the Company's claims.

Forward looking and other statement

    We have made statements in this document that are forward-looking
statements that involve substantial risks and uncertainties.  You can identify
these statements y forward-looking words such as "may," "will," "expect,"
"anticipate," "believe," "estimate," and "continue" or similar words.  You
should read statements that contain these words carefully because they:  (1)
discuss our future expectations; (2)  contain projections of our future results
of operations or of our fiscal condition; or (3)  state other "forward looking"
information.

    We believe it is important to communicate our expectations to our
investors.  However, there may be events in the future that we are not able to
accurately predict or which we do not fully control.  Important factors that
could cause actual results to differ materially from these expressed ;or implied
by our forward-looking statements, include, but are not limited to those risks,
uncertainties and other factors discussed in this document.
                                7
    For further information visit the Company's website at "EPAR-GOLD.COM" or
"EPAR.COM" and we can also be contacted at our E-mail address;
 "EPAR@INTNET.NET".

    Inflation

    The rate of inflation has had little impact on the Company's results of
operations and is expected to not have a significant impact on continuing
operations.

Item 7.  Financial Statement and Supplementary Data.

         See Item 13.

Item 8.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure.

         None.
                            PART III

Item 9.  Directors and Executive Officers of Registrant.

    (a) Directors and Officers.  The following schedule sets forth the name of
each director and officer of the Company and the nature of all positions, and
offices with the Company presently held by them.  Each director and officer, has
been elected as of the shareholders's meeting in Clearwater, Florida on July 29,
1999.

    The executive officers and directors of the Company are as follows:

Name                           Position Held

Martin Sportschuetz            President & CEO
Dale M. Hendrick, P.Eng.       Chairman & Technical Director
Carl Leaman                    Director
John Sgarlat                   Director
Evangelos Kechayans            Director

    Dale M. Hendrick, P. Eng., is a geologist, born in Ottawa, Ontario,
educated in Ottawa University and Queen's University, and is now the President
of Dale M. Hendrick and Associates.  He has 41 years of experience in
exploration and mining having worked as a Mine Geologist at Rio Algom Mines
(Milliken) at Elliot Lake and Quemont Mines Ltd.  At Noranda, P.Q.  He joined
Herr Addison in 1964 and was Chief Geologist, Exploration from 1973 to 1988.
Since 1989 through Dale M. Hendrick and Associates, he has demonstrated an
excellent and strong track record as a corporate technical and financial
advisor to growth oriented junior resource companies on a global basis.  On
February 7, 2000 Mr. Hendrick resigned after accepting a new position with
Gammon Lake Resources, Inc.
    Martin Sportschuetz has held several executive positions in Germany,
including the Export Director of Reisser GMBH (LTD.), a company with a large
concentration of sales in the Middle East and Central Africa.  He was the
Managing Director of GVA MBH (LTD.), a Financial Consulting Concern.  He is also
the Managing Director of GVA IMMOBILIEN GMBH (LTD.).  He had a tour of military
service in Munich. He has also studied law and economics in Tuebingen, Germany.

    Carl Leaman is the president and founder of Paradise Construction Inc. He
is a resident of Georgia.  He attended Lancaster Architectural School where he
studied drafting and design.  He also studied business administration at
Kennesaw College.  He also worked as a hydraulic engineer for Morgan Corporation


                                8
    John Sgarlat is a graduate of Villanova University, Magnum Cum Laude, with
a Bachelor of Arts in Philosophy.  He also attended a three year graduate
program at the University of Pennsylvania/Wharton School of Finance.  Mr.
Sgarlat is presently the president of e-Content Inc., a producer of childrens'
television programs and educational marketing programs for public broadcasting
stations. He also worked as a registered representative with Hornblower and
Wheels.  In 1974, he became Director of Marketing for Elkins and Company, a New
York Stock Exchange firm.  Two years later he became a partner of the firm and
headed several departments.  In 1985, Mr. Sgarlat helped restructure a failing
company with a new name, National Media Corporation.  He is the founder and
chairman of the company where he served as the president and chief executive
officer.  Mr. Sgarlat has extensive experience in investment banking and the
media industries.

    Evangelos Kechayans, is a mechanical/marine engineer who resides in Athens
Greece, educated at Brooklyn Polytechnic Institute and is currently the
president and managing director of Metrix Systems S.A.  He has also worked in
Greece as a project management consultant for major projects such as the
Kavalla Oil Refinery Project and Salarris Navy Underground Tanks.  Mr. Kechayans
has also worked for Pelasgus Corp. and Martechnics Ltd where he was the general
manager for both companies.

Item 10. Executive Compensation.

    The following table sets forth the renumeration paid or accrued by the
Company during the fiscal year ending December 31, 1999, to each of its Chief
Executive Officer, its officers and directors, and to all officers and
directors as a group.
                                                             Securities of
                                             Salaries           Property
                                           Management Fees      Insurance
Name of Individual                         Directors' Fees    Benefits or
or Number of Persons       Capacities in   Commission and     Repayment of
in Group                   Which Served       Bonuses       Personal Benefits

Martin Sportschuetz   Director/CEO/           $ 85,000     105,000 shares
                      President/Officer

Dale M. Hendrick      Director/Chairman              -

Carl Leaman           Director

John Sgarlat          Director                       -     -

Evangelos Kechayans   Director                       -     -

Officers and Directors
as a group            -                       $ 85,000     105,000 shares

                                                           $ 5,000 Health
                                                                   Benefits











                                9
Item 11. Security Ownership of Certain Beneficial Owners and Management.

    The following table sets forth the number of Common Shares of the Company
owned by record, or to the knowledge of the Company, beneficially, by each
Director of the Company and by each person owning five percent or more of the
Company's outstanding shares, as of December 31, 1999.

                                 Amount and
                                 Nature of
                                 Beneficial                   Percentage of
Name and Address                 Ownership                     Class Owned


Martin Sportschuetz               610,000   President & CEO        3.74%
Florida Resident

Dale M. Hendrick, P. Eng.         400,000   Chairman &             2.45%
Canadian Resident                            Technical Director

Carl Leaman (1)                   111,400   Director                .68%
Georgia Resident

John Sgarlat                            0   Director                -0-
Florida Resident

Evangelos Kechayans                     0   Director                -0-
Athens, Greece

George Whitney (2)              1,370,000   Shareholder            8.40%
Florida Resident

Total                           2,091,400                         12.82%


(1)      Includes 90,000 shares held by First Leaman Family Trust

(2)      Includes 670,000 held by Hi Point Corp., a company owned 100% by Mr.
         Whitney.

Item 12. Certain Relationships and Related Transactions

         Amounts due to related party at December 31, 1997 represented cash and
expense advances by a company affiliated with a stockholder and director of the
Company totaling $134,093 after the reduction of $250,000 for 357,143 shares to
be issued. During 1997 the company paid $30,480 for interest on this
obligation.

During 1997, the Company retired 2,187,500 shares of common stock in exchange
for distribution rights valued at $437,500.

Additionally, in 1997 the Company sold 2,075,000 shares during the year in
private transactions for $1.00 a share, which, net of offering costs of
$109,925, generated net proceeds to the Company of $1,265,075 and a $700,000
stock subscription receivable, which was collected on March 4, 1998.

Also in 1997, the company issued 400,000 shares to the president in connection
with his employment agreement.

In 1997, the Company issued 250,000 shares to an affiliate for investment
banking services which were valued at $1.16 or $290,000.


                                10
In 1997, the Company issued 25,000 shares to a finder, valued at $1.00 per
share, with a like amount charged to additional paid in capital.

In March 1998, the Company issued 750,000 shares to an affiliate for
exploration and reactivation services performed through December 31, 1997
valued at $.70 per share.

The Company issued 105,000 shares of common stock to the President in May of
1998 valued at $.85 per share, or $89,250, based upon their market value
subject to Rule "144" restrictions.  Of this amount $44,625 was added to
resource properties and $44,625 was recorded as stock based compensation based
upon the Company's estimate of where the president directed his efforts.

The Company also agreed to issue 105,000 shares to a director, provided he
remained employed by the Company through April 30, 1999.  The director resigned
from employment in an effort to curtail expenses, and remains as a director
today.  The Company issued 90,000 restricted shares, valued at $.85 per share,
or $69,300, based upon their market value subject to Rule "144" restrictions.
Of this amount, $34,650 was added to resource properties and $34,650 was
recorded as stock based compensation.

During June of 1998 the Company advanced this investor $60,000 at 8% interest of
which $50,000 was repaid during the year leaving a balance of $12,234 including
accrued interest.  During the year ended December 31, 1998 the Company recorded
$2,234 of interest income from this loan.

The Company issued 400,000 restricted shares to the chairman and director for
services during the year ended December 31, 1998, valued at $.77 per share or
$308,000, based upon their market value subject to Rule "144" restrictions.  Of
this amount $154,000 was added to resource properties and $154,000 was recorded
as stock based compensation.

Effective May 1999, the Company issued 105,000 shares of common stock to the
president valued at $1.08 per share or $112,350, which as included in stock
based compensation expense for 1999.


























                                11
                             PART IV



Item 13. Exhibits, Financial Statement Schedules.

         (1) The following financial statements are included herein at pages
              F-1 through F-17 as follows:

Independent Auditors' Report - Schuhalter, Coughlin & Suozzo, LLCF-1

Balance Sheet, December 31, 1999                                           F-2

Statement of Operations, for the Two Years Ended December 31, 1999
         and From July 6, 1987 (Date of Inception) to December 31, 1999     F-3

Statements of Changes in Stockholders' Equity From Inception on
         July 6, 1987 through December 31, 1999                            F-4


Statement of Cash Flows for the Two Years Ended December 31, 1999
         and from July 6, 1987 (Date of Inception) to December 31, 1999    F-8

Notes to Consolidated Financial Statements                                F-10





































                                12

                   INDEPENDENT AUDITORS' REPORT





Board of Directors
European American Resources, Inc.
400 Cleveland Street, Suite 901
Clearwater, Florida 33755


We have audited the accompanying balance sheet of European American Resources,
Inc. (an Exploration Stage Company) as of December 31, 1999 and the related
statements of operations for the two years then ended, shareholders' deficit
accumulated during the Exploration Stage, and for the period from July 6, 1987
(Date of Inception) through December 31, 1999 and the statements of cash flows
for the two years ended December 31, 1999.  These financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
from material misstatement.  An audit includes examining, on a test basis,
evidence supporting the accounting principals used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of European American Resources,
Inc. at December 31, 1999 and the results of their operations and cash flows
for the year then ended in conformity with generally accepted accounting
principles.

As discussed in Note 1, the Company is in the exploration stage as of December
31, 1999.  Recovery of the Company's assets is dependent upon future events,
the outcome of which is indeterminable.  In addition, successful completion of
the Company's exploration program and its transition, ultimately, to attaining
profitable operations is dependent upon obtaining adequate financing to fulfill
its exploration activities and achieving a level of sales adequate to support
the Company's cost structure.


                                    /s/ Schuhalter, Coughlin & Suozzo, LLC
                                        Schuhalter, Coughlin & Suozzo, LLC


Raritan, New Jersey

April 13, 2000












                                                              F-1
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
                         BALANCE SHEET
                       DECEMBER 31, 1999


      Assets

Current Assets
 Cash and cash equivalents                                     $    2,228
 Prepaid rent on mining claims                                     52,533

      Total Current Assets                                         54,761

Exploration joint venture                                       2,275,753

Other resource properties                                         519,590

Property and equipment, at cost, net of accumulated
 depreciation of $4,701                                             7,819

Other Assets
 Claim receivable, net of valuation reserve of $1,018,292         267,500
 Other Assets                                                      52,164

      Total Other Assets                                          319,664

      Total Assets                                              3,177,587


     Liabilities and Stockholders' Equity

Current Liabilities
 Accounts payable and accrued expenses                            231,850
 Notes payable to related parties                                 509,675

      Total Current Liabilities                                   741,525

Commitments                                                             -

Stockholders' Equity
 Preferred stock; $.0001 par value, 25,000,000 shares
    authorized, no shares issued or outstanding                         -
 Common stock; $.0001 par value, 250,000,000 shares
    authorized, 16,314,908 shares issued                            1,632
    and outstanding
 Additional paid in capital                                    10,889,431
 Deficit accumulated during the exploration stage              (8,455,001)

      Total Stockholders' Equity                                2,436,062

      Total Liabilities and Stockholders' Equity               $3,177,587











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

<PAGE>
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
                    STATEMENTS OF OPERATIONS

                                                                From
                                                                July 6,
                                                                  1987
                                                               (Date of
                                       For the Years Ended     Inception) to
                                            December 31,       December 31,
                                        1998           1999        1999
Revenues

  Sales                                 $        -  $        - $   29,028

Operating Expenses
 Operating costs                            78,800     193,536  3,862,720
 General and administration                576,433     505,520  2,557,527
 Depreciation and amortization               8,801       6,567    324,027
 Stock based compensation                  310,275     112,350  1,262,625
 Royalty Expense                                 -           -     43,960

   Total Operating Expenses                974,309     817,973  8,050,859

Loss from operations                      (974,309)   (817,973)(8,021,831)


Other Income (Expense)
 Interest income                            20,862           -    316,963
 Interest expense                           (7,192)    (25,423)  (138,523)
 Settlement (expense) income               (46,484)     50,000      3,516
 Loss on the sale of assets                      -      (2,583)   (14,755)
 Earnings on managed foreign investment          -           -    190,569
 Net realized losses on marketable
   securities                                    -           -   (256,668)
 Gain on cancellation of long term
   debt-related party                            -           -    500,000
 Loss on write off related party
   receivable                                    -           -    (15,980)
 Reserve for claim on foreign
   investment                             (160,667)    (53,833)(1,018,292)

    Total Other Income (Expense)          (193,481)    (31,839)  (433,170)

Loss before income taxes                (1,167,790)   (849,812)(8,455,001)

Income tax expense                               -           -          -

Net Loss                               $(1,167,790) $ (849,812)$(8,455,001)

Basic Loss Per Common Share            $      (.10) $     (.05)

Average Common Shares Outstanding       11,851,389  16,297,295








The accompanying notes are an integral part of these financial statements.
                                                              F-3
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
               STATEMENT OF STOCKHOLDERS' EQUITY
    FROM INCEPTION ON JULY 6, 1987 THROUGH DECEMBER 31, 1999

                                                                  Deficit
                                                                Accumulated
                                                    Additional   During the
                                  Common Stock       Paid In     Exploration
                                Shares    Amount     Capital        Stage

Balance, July 6, 1987           -         $   -  $        -     $         -

Shares issued to officers
 and directors of the
 Company and other
 individuals, for cash July
 through September, 1997     1,000,000       100     371,783              -

Net loss for the period
 ended December 31, 1987            -          -           -        (95,060)

Balance, December 31, 1987   1,000,000       100     371,783        (95,060)

Effect of recapitalization
 of Paradise Valley Mining,
 Inc. on March 11, 1988      1,000,000       100     200,418              -

Shares sold by private
 placement for cash at $1.00
 per share in July, 1988,
 net of $4,808 in offering
 costs                         151,000        15     146,177               -

Shares sold by private
 placement for cast at $0.33
 per share in October, 1988    150,000        15      49,985               -

Net loss for the year ended
 December 31, 1988                   -          -           -        (275,547)

Balance, December 31, 1988   2,301,000         230     768,363       (370,607)

Shares sold by private
 placement for cash at
 $10.00 per share during
 April through June 1989,
 net of $518,576 in
 offering costs                429,374           43   3,774,785              -

Shares issued in payment of
 interest at $10.00 per
 share during April and May
 1989                            2,991             -     29,918               -

Net loss for the year ended
 December 31, 1989                   -             -           -     (463,583)

Balance, December 31, 1989   2,733,365         $ 273 $ 4,573,066   $ (834,190)




The accompanying notes are an integral part of these financial statements.
                                                              F-4
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
               STATEMENT OF STOCKHOLDERS' EQUITY
    FROM INCEPTION ON JULY 6, 1987 THROUGH DECEMBER 31, 1999

                                                                  Deficit
                                                                Accumulated
                                                    Additional   During the
                                  Common Stock       Paid In     Exploration
                               Shares    Amount     Capital        Stage

Balance, January 1, 1990    2,733,365   $   273  $ 4,573,066     $  (834,190)

Net loss for the year ended
 December 31, 1990                  -         -           -       (1,620,689)

Balance, December 31, 1990   2,733,365      273   4,573,066       (2,454,879)

Net loss for the year ended
 December 31, 1991                  -         -           -          (477,967)

Balance, December 31, 1991   2,733,365       273   4,573,066       (2,932,846)

Shares sold by private
 placement for cash at
 $.2714 per share during
 September, 1992             7,000,000       700   1,899,300                -

Net loss for the year ended
 December 31, 1992                   -         -           -         (694,935)

Balance, December 31, 1992   9,733,365       973   6,472,366       (3,627,781)

Net loss for the year ended
 December 31, 1993                  -          -           -         (730,281)

Balance, December 31, 1993   9,733,365       973   6,472,366       (4,358,062)

Net loss for the year ended
 December 31, 1994                   -         -           -         (332,383)

Balance, December 31, 1994   9,733,365        973   6,472,366      (4,690,445)

Net loss for the year ended
 December 31, 1995                   -          -           -        (249,838)

Balance, December 31, 1995   9,733,365        973   6,472,366      (4,940,283)
 net loss for the year ended
 December 31, 1996                   -          -           -        (116,786)

Balance, December 31, 1996   9,733,365    $   973 $ 6,472,366      $ 5,057,069












The accompanying notes are an integral part of these financial statements.
                                                              F-5
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
               STATEMENT OF STOCKHOLDERS' EQUITY
    FROM INCEPTION ON JULY 6, 1987 THROUGH DECEMBER 31, 1999

                                                                  Deficit
                                                                Accumulated
                                                    Additional   During the
                                  Common Stock       Paid In     Exploration
                                Shares    Amount     Capital        Stage

Balance, January 1, 1997     9,733,365    $ 973    $ 6,472,366    $(5,057,069)

Retirement of shares for
 distribution rights        (2,187,500)    (219)      (437,281)             -

Shares sold for $1.00 per
 share in private place-
 ments during the year,
 net of $109,925 offering
 costs                        2,075,000     208      1,964,867               -

Shares issued for services
 in connection with the
 employment agreement of
 the former president
 valued at $1.00                400,000      40        399,960                -

Shares issued for
 cancellation of debt to
 related party, valued at
 $.70 per share                 357,143      36        249,963                -

Shares issued for exploration,
 market making services and
 reactivation services
 rendered through December
 31, 1997, valued at, $1.16,
 $1.00 and $.70 per share    1,025,000      102        814,898                 -

Net loss for the year
 ended December 31, 1997             -        -             -      (1,380,330)

Balance, December 31, 1997   11,403,008    1,140  $ 9,464,773    $ (6,437,399)



















The accompanying notes are an integral part of these financial statements.
                                                              F-6
               EUROPEAN AMERICAN RESOURCES, INC.
                 (AN EXPLORATION STAGE COMPANY)
               STATEMENT OF STOCKHOLDERS' EQUITY
    FROM INCEPTION ON JULY 6, 1987 THROUGH DECEMBER 31, 1999

                                                                  Deficit
                                                                Accumulated
                                                    Additional   During the
                                  Common Stock       Paid In     Exploration
                                Shares    Amount     Capital        Stage

Balance, January 1, 1998    11,403,008  $ 1,140    $ 9,464,773  $ (6,437,399)

Shares issued for services
 and additions to resource
 properties at $1.21,  $.85
 and $.77                      995,900      100        834,715               -

Shares issued to retire
 distribution rights and
 settlement                  4,156,250      416        833,569                 -

Retirement of shares in
 connection with termination
 of employment agreement with
 the former president         (350,000)     (35)      (349,965)                -

Net loss for the year ended
 December 31, 1998                   -         -            -      (1,167,790)

Balance, December 31, 1998  16,205,158     1,621    10,783,092     (7,605,189)

Shares issued for services
 and additions to resource
 properties at $1.08 and
 $80                           160,000        16       156,334              -

Retirement of shares in
 connection with termination
 of employment agreement
 with the former president     (49,750)       (5)      (49,995)              -

Net loss for the year ended
  December 31, 1999                  -          -             -      (849,812)

Balance, December 31, 1999  16,314,908    $ 1,632   $10,889,431    $(8,455,001)

















The accompanying notes are an integral part of these financial statements.
                                                              F-7
               EUROPEAN AMERICAN RESOURCES, INC.
                    STATEMENTS OF CASH FLOWS
                 (AN EXPLORATION STAGE COMPANY)
        INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS



                                                                 From
                                                                 July 6,
                                                                  1987
                                                               (Date of
                                       For the Years Ended     Inception) to
                                            December 31,       December 31,
                                        1998           1999        1999

Cash Flows Operating Activities

  Net Loss                             $(1,167,790) $ (849,812)   $(8,455,001)

Adjustments to reconcile net loss
 to net cash provided (used) by
 operating activities:
 Depreciation and amortization               8,801       6,567    324,027
 Reserve for claim compensation and
  settlement                               160,667      53,833  1,018,292
 Issuance of common stock charged
  to expense                               356,759     112,350  1,409,109
 Adjustments to resource properties
  charged to operations                          -     116,736  1,741,046
 Loss on the sale of fixed assets                -       2,573     14,755
 Earnings on managed foreign
  investment                                     -           -   (190,569)
 Losses on marketable securities                 -           -    156,668
 Gain on cancellation of long term
  debt - related party                           -           -   (500,000)
 Loss on write off - related party
  receivable                                     -           -     15,980

 Changes in assets and liabilities:
   (Increase) decrease in prepaid
     rent                                    2,667           -    (52,533)
   (Decrease) increase in accounts
      payable and accrued expenses        (207,714)     76,163    231,850
    (Increase) in other assets             (11,955)     (7,356)   (52,164)
    (Increase) in deferred offering
      costs                                (62,500)     62,500          -
    (Increase) in interest receivable
      - affiliate                           (3,439)      1,821     (1,618)
      Total Adjustments                    243,286     425,187  4,114,843

Net Cash Used by Operating Activities     (924,504)   (424,625)  (4,340,158)












The accompanying notes are an integral part of these financial statements.
                                                              F-8
               EUROPEAN AMERICAN RESOURCES, INC.
             STATEMENTS OF CASH FLOWS - (CONTINUED)
                 (AN EXPLORATION STAGE COMPANY)
        INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS



                                                                From
                                                                July 6,
                                                                  1987
                                                               (Date of
                                       For the Years Ended     Inception) to
                                            December 31,       December 31,
                                        1998           1999        1999

Cash Flows From (Used In) Investing
  Activities
 Investment in foreign managed funds             -           - (2,250,000)
 Foreign investment withdrawals                  -           -    964,208
 Investment in marketable securities             -           -   (256,668)
 Proceeds from sale of assets                    -      14,100    188,251
 Advance to affiliate                      (60,000)          -    (75,980)
 Repayment from affiliate                   50,000           -     50,000
 Resource properties                      (258,770)   (103,341) (3,720,372)
 Purchase of fixed assets                  (12,520)          -   (359,980)
      Net Cash Provided (Used In)
        Investing Activities              (281,290)  (117,441)   (5,460,541)


Cash Flows from Financing Activities
 Proceeds from issuance of common
   stock, net of offering costs of
   $622,309 from inception                 700,000           -  8,543,252
 Proceeds from issuance of notes
  payable to related parties                15,000           -    399,093
 (Repayment) proceeds of notes
   payable - related party                (134,093)    494,675    360,582
 Proceeds from long term debt -
  related parties                                -           -    500,000
      Net Cash Provided By Financing
        Activities                         580,907     494,675  9,802,927

Net Increase in Cash and Cash
  Equivalents                             (624,887)    (19,191)      2,228
Cash and Cash Equivalents at Beginning
  of Period                                646,306      21,419          -
Cash and Cash Equivalents at End of
  Period                                $   21,419  $    2,228 $    2,228















The accompanying notes are an integral part of these financial statements.
                                                              F-9
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION (AN EXPLORATION STAGE
         COMPANY)

     The Company was incorporated in the state of Delaware on July 6, 1987.
     Since inception, the Company acquired mining rights to mine precious
     metals for as many as approximately 6,700 claims; as of December 31, 1999
     the Company is the holder of approximately 830 patented, unpatented lode,
     mill sites and placer claims on certain properties located throughout the
     state of Nevada.  The Company is a Junior Mining Company.  Since the
     acquisition of these properties, the Company has not commenced planned
     principal operations and accordingly has been considered an exploratory
     stage company as defined in SFAS No. 7, "Accounting and Reporting for
     Development Stage Companies", and it is in the exploration state as
     defined in the SEC Guide 7.  These financial statements  present the
     Company as an exploration stage company.

     The Company has incurred over $4,400,000 in expenditures on resource
     properties since inception which, after adjusting for claims the Company
     no longer controlled and geological determinations, were adjusted downward
     by $1,624,310 through December 31, 1995.  During 1999 the Company further
     adjusted other resource properties downward by $116,736 to reflect 192
     claims the Company agreed to forego with its joint venture partner
     discussed in Note 10.  The amounts capitalized as resource properties
     include direct exploratory costs since the acquisition of the right to
     mine these properties.  In accounting for these costs the Company selected
     an accounting policy which capitalizes exploratory costs rather than
     expensing them as incurred.  Amortization of these costs is to be
     calculated by the units of production method based upon proven or probable
     reserves, upon the commencement of the production phase.  Costs incurred
     on properties later determined to be unproductive are expensed by the
     Company as that determination is made.  As of December 31, 1999, the
     Company has a total $2,795,343 of capitalized resource properties.  If
     these costs had been expensed rather than capitalized, the deficit
     accumulated during the exploration stage at December 31, 1999 would have
     been $11,250,344 rather than $8,455,001.

     The Company has been in the exploration stage to determine the amount of
     proven and/or probable reserves of its resource properties, if any.
     During 1997, geological testing indicated that certain reserves of the
     Company are probable and in excess of the amounts capitalized.  They are
     not proven as of December 31, 1999, and estimates of their potential value
     are not available at this time.  Sufficient capital resources and credit
     facilities are available for the Company to maintain its mining claims and
     the existing cost structure for personnel and administrative offices for
     the near term (defined as one year).  Additional capital or financing is
     required to complete the Company's exploration program, and its
     transition, ultimately, to obtaining profitable operations, is dependent
     on future events, the outcome of which is indeterminable.












                                                             F-10
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Property and Equipment

     Property and equipment is recorded at cost.  Depreciation is computed for
     financial statement purposes using the straight line method over the
     estimated useful lives of the related assets.  The useful related lives of
     property and equipment range from 3 to 5 years.  For federal income tax
     purposes, depreciation is computed under the modified acceleration cost
     recovery system.

     Statement of Cash Flows

     For the purposes of the statement of cash flows, the Company considers all
     highly liquid debt investments purchased with a maturity of three months
     or less to be cash equivalents.

     The following items represent a schedule of non-cash investing and
     financing activities:

                                                         1999        1998
     Issuance of common stock for services
     relating to capitalized resource properties      $  44,000     $ 524,540

     Issuance of common stock for the
     retirement of distribution rights                $       -     $ 437,500

     Operating activities include interest paid of $10,742 and $37,672 for the
     years ended December 31, 1999 and 1998 respectively.

     Loss per Common Share

     The Company accounts for net loss per common share in accordance with the
     provisions of Statements of Financial Accounting Standards ("SFAS") No.
     128, "Earnings per Share" ("EPS").  SFAS No. 128 reflects the potential
     dilution that could occur if securities or other contracts to issue common
     stock were exercised or converted into common stock or resulted in the
     issuance of common stock that then shared in the earnings of the entity.
     Common equivalent shares have been excluded from the computation of
     diluted EPS since their effect is antidilutive.

     Dividends

     The Company has not paid any dividends and any dividends which might be
     paid in the future will depend upon the financial requirements of the
     Company and other relevant factors.

     Reclassification

     The financial statements presented for 1997 and from Inception on July 6,
     1987 through December 31, 1999 have been reclassified to conform to the
     current year's presentation.







                                                             F-11
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     Use of Estimates

     The preparation of financial statements in conformity with generally
     accepted accounting principles requires management to make estimates and
     assumptions that affect the reported amounts of assets and liabilities and
     disclosure of contingent assets and liabilities at the date of the
     financial statements and the reported amounts of revenue and expense
     during the reporting period.  Actual results could differ from those
     estimates. These estimates include property and equipment, depreciation,
     the carrying value of resource properties and distribution rights payable.

     Stock-Based Compensation

     The Company accounts for stock based compensation in accordance with SFAS
     No. 123, "Accounting for "Stock-Based Compensation," which permits
     entities to recognize as expense over the vesting period the fair value of
     all stock-based awards on the date of grant.  Alternatively, SFAS No. 123
     also allows entities to continue to apply the provisions of the Accounting
     Principles Board (APB) Opinion No. 25 and provide pro forma net income and
     pro forma earnings per share disclosures for employee stock option grants
     made in 1995 and future years as if the fair value-based method, as
     defined in SFAS No. 123, had been applied.  The Company has elected to
     continue to apply the provisions of APB Opinion No. 25 and provide the pro
     forma disclosure required by SFAS No. 123.  As such, compensation expense
     is generally recorded on the date of grant only if the current market
     price of the underlying stock exceeded the exercise price.

     Resource properties

     The Company records its interest in resource properties at cost.
     Producing properties will be amortized on the unit-of-production basis.
     The ultimate recovery of costs associated with non-producing properties is
     dependent upon the discovery and development of economic reserves or the
     profitable sale of the properties.  If a property is abandoned or sold,
     the proceeds on the sale, less the cost of the property and any related
     deferred expenditures, will be included in operations at that time.  The
     Company periodically reviews its mineral properties to ascertain whether
     an impairment in value has occurred.  Where a property is considered
     uneconomic it is written off. At December 31, 1998 the Company had owned
     and/or leased the rights to control a total of 850 claims, which are
     considered probable and have a value based upon geological determinations
     greater than the amount capitalized; yet no reserves are proven.

     Income Taxes

     The Company accounts for income taxes using the asset and liability
     method.  Under this method, deferred tax assets and liabilities are
     recognized for the future tax consequences attributable to differences
     between the financial statement carrying amounts of existing assets and
     liabilities and their respective tax bases and operating loss and tax
     credit carryforwards.  Deferred tax assets and liabilities are measured
     using currently enacted tax rates.  The effect on deferred tax assets and
     liabilities of a change in tax rates is recognized in results of
     operations in the period that includes the enactment date.  Because of the
     uncertainty regarding the Company's future profitability, the future tax
     benefits of its losses have been fully reserved for.  Therefore, no
     benefit for the net operating loss has been recorded in the accompanying
     consolidated financial statements.

                                                             F-12
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     Fair Value of Financial Instruments

     SFAS No. 107, "Disclosure About Fair Value of Financial Instruments",
     requires the determination of fair value for certain of the Company's
     assets and liabilities.  The Company estimates that the carrying values of
     its financial instruments approximate fair value.

     Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

     In accordance with SFAS No. 121 "Accounting for the Impairment of Long-
     Lived Assets and for Long-Lived Assets to Be Disposed Of," the Company
     reviews for the impairment of long-lived assets and certain identifiable
     intangibles to be held and used by the Company whenever events and changes
     in circumstances indicate that the carrying value of an asset may not be
     recoverable.

     Other Accounting Pronouncements

     The FASB has issued SFAS No. 130, Reporting Comprehensive Income effective
     for fiscal years beginning after December 15, 1997, which establishes
     standards for the reporting of comprehensive income and its components.
     The Company implemented SFAS No. 130 during the year ended December 31,
     1998 and as such the effect was not material to its financial position or
     results of operations for 1998 or 1999.

NOTE 3 -CLAIM RECEIVABLE

     The Company had previously entered into a managed investment agreement
     with Schwabische Finanz-und Unternehmensberatung Gmbh (SFU). The
     investment consisted of USD $2,250,000 which was being managed by SFU and
     was being held in accounts at Dominick & Dominick AG.  The agreement
     commenced on September 25, 1992 and the funds were restricted from
     withdrawal until October 1993.  SFU had been notified of the Company's
     intent to withdraw the funds and had indicated the funds would be wire
     transferred in October 1993.  SFU defaulted and did not liquidate the
     account as instructed.  SFU sent various payments in partial liquidation
     totaling US $964,208 which payments were received sporadically through
     December 22, 1995.  After 1993, the Company increased its effort to
     obtain the return of its investment and received confirmation from the
     fiduciary of SFU that the funds were still intact. Subsequently the
     fiduciary representation has been unsupported and the company believes it
     was fraudulent and no underlying funds from the original investment remain
     at that time under his control, and furthermore the Company believes its
     prospects for collection were materially damaged by the fiduciary's
     actions.  The Company has filed a claim under German law, against the
     fiduciary, for "fraudulent statements" which holds German attorneys
     accountable for certain representations as well as requires minimum and
     annually adjusted amounts of liability insurance for such claims as a
     requirement for licensure.  The Company's counsel has advised management
     that it is probable they will receive an amount greater than the net
     carrying value remaining in the financial statements.  Management has also
     classified this claim as a long term asset and reserved an amount for both
     the recoverability and the costs associated with the claim. The
     possibility does exist that the company may not realize any amount should
     they not prevail in their action against the attorney.  The last records
     obtained which showed the funds intact were in 1993 and were invested with
     Dominick and Dominick AG.  Management has determined to charge the expense
     and record the corresponding reserve in the amount of approximately
     $804,000 to 1993, the earliest period when the Company actually received
                                                             F-13
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     detailed records and statements of its investments.  This is consistent
     with the maturity date of October, 1993 of the original investment
     agreement.  In 1997 the Company retained new counsel in Germany to
     finalize the recovery of these amounts if any, from the German fiduciary.
     The new counsel has advised the Company that the prospects for collection
     have improved due to changes in German laws.  Counsel has also advised the
     Company to reduce the amount of its demand (an amount in excess of the
     remaining carrying value) to accelerate recovery.  Accordingly, during the
     year ended December 31, 1998, the Company has further reserved an
     additional $160,667 against this claim.  During 1999 was advised that
     recovery may be realized within as soon as twelve months and as long as
     thirty six months, and therefore further reserved $53,833 representing the
     time value of money at 9%.

     The Company will record as income any amounts recovered, net of expenses,
     above the remaining carrying value of $267,500, only in such period they
     were actually realized, yet record as additional expense any further
     reserve should the likelihood of recovery diminish.

NOTE 4 - PROPERTY AND EQUIPMENT

     Property and equipment consist of the following:

                                                           December 31, 1999

      Office equipment                                        $ 12,520

      Less:  accumulated depreciation                           (4,701)

                                                              $  7,819

NOTE 5 - INCOME TAXES

     No provision for income taxes have been made for the periods presented as
     the Company incurred losses during those periods.

     Deferred taxes consist of the following at December 31, 1999:

          Total deferred tax assets                           $1,803,360
          Less: Valuation allowance                           (1,803,360)

          Net deferred tax assets                             $        -

     Deferred tax assets are attributable to available net operating loss
     carryforwards.  The valuation allowance was increased by $288,876 and
     $221,124 during the years ended December 31, 1999 and 1998 respectively.

     The Company has net operating loss carry forwards of approximately
     $5,304,000 which expire in various years through the year 2012.  The
     amount of the operating loss carry forwards may be subject to annual
     limitations limited by IRS regulations as a result of the sale of a
     majority interest.







                                                             F-14
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


NOTE 6 - RELATED PARTY TRANSACTIONS

     On September 25, 1992, the Company issued 7,000,000 shares of its
     restricted common stock for $1,900,000 to a foreign investor, Trent, Ltd,
     a Company controlled by a former director, Mr.  Jochen A. Brenner.  At the
     time the shares were issued to Trent they represented approximately 71% of
     the issued and outstanding common stock of the Company.  In addition, the
     Company also issued to Trent a $500,000 convertible debenture bearing
     interest at 8%.  As a result of the issuance of the common stock and the
     convertible debenture, the Company was controlled by Trent.  The
     accompanying financial statements include only the accounts of the Company
     and its subsidiaries and are not consolidated in any way with respect to
     Trent nor do they include any of the accounts of Trent.  The proceeds from
     the stock issuance and debenture  remained in the control of Mr. Brenner
     and were invested in his name or the names of other entities under his
     control in certain pooled investments which were to be invested in foreign
     exchange forward contracts.  All transactions were to be made at the risk
     of Mr. Brenner, relieving the Company and the investment company from any
     and all liability.  The invested funds were restricted as to withdrawal
     until October, 1993.  While the invested funds were in the sole control of
     Mr. Brenner, he had entered into an agreement with the Company  to
     liquidate the foreign investments and deliver the funds to the United
     States for use by the Company beginning in October 1993.  Between January
     1, 1994 and December 31, 1995 the company confirmed the amounts with Mr.
     Brenner and a German fiduciary; and received partial payments totaling $
     964,208.  Mr.  Brenner failed to return these funds.  In 1996 the Company
     determined the debenture should be canceled in conjunction with the
     managed foreign investments and claim receivable, discussed in Note 3,
     retroactively to December 31, 1993.

     The Company received all working capital through September 30, 1987 from
     stockholder/officers.  These parties agreed to have all payments through
     September 30, 1987 amounting to $371,883 credited to equity in exchange
     for 1,000,000 shares of common stock.

     In 1989, pursuant to the private placement of stock, the Company paid
     stock offering fees to related parties, including $30,000 paid to Merlin
     Equities, Inc., a broker-dealer and an affiliate of the president, at that
     time, of the Company.  Canopus, Ltd., a London-based entity and principal
     shareholder of the Company was paid $300,000.  A total of $418,000 was
     paid to two officers of Harrier, Inc., a public corporation, for whom an
     officer of the Company served as financial consultant in raising equity
     funding.

     In 1997, the Company leased office space from an affiliate on a month to
     month basis via the assumption of the affiliates lease to a third party
     from September, 1997 through December 31, 1997.  Rent expense paid to the
     third party was $4,687.

     In 1997 the Company issued 250,000 shares to an affiliate for investment
     banking services valued at $290,000.








                                                             F-15

               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS

     During 1997, the Company signed a note to a director  bearing interest of
     11%. Interest charged to expense for this note in 1997 was $30,480.  In
     March 1998, the Company issued 357,143 shares, valued at $250,000, or $.70
     per share, in cancellation of $250,000 of the note due to the related
     party. The Company also issued 750,000 shares valued at $525,000, or $.70
     per share, which are assignable, for exploration and reactivation
     services, performed through December 31, 1997.  At December 31, 1997,
     $134,093 including interest remained outstanding on this note. The Company
     repaid this amount during the first quarter of 1998.

     On April 22, 1998, the Company entered into a consulting agreement with
     its current CEO which provides for the issuance of common stock in
     addition to annualized fees, as amended, of $96,000 per year.  During the
     year ended December 31, 1998 the president was paid $64,000 under this
     agreement.  The Company issued 105,000 shares of common stock valued at
     $.85 per share, or $89,250, based upon their market value subject to Rule
     "144" restrictions.  Of this amount $44,625 was added to resource
     properties and $44,625 was recorded as stock based compensation based upon
     the Company's estimate of where the president directed his efforts.

     The Company also agreed to issue 105,000 shares to a director, provided he
     remained employed by the Company through April 30, 1999.  The director
     resigned from employment in an effort to curtail expenses, and remains as
     a director today.  The Company issued 90,000 restricted shares, valued at
     $.85 per share, or $69,300, based upon their market value subject to Rule
     "144" restrictions.  Of this amount, $34,650 was added to resource
     properties and $34,650 was recorded as stock based compensation.  The
     agreement initially provided for annualized compensation of $72,000 and
     during the year ended December 31, 1999 he was paid $27,000 under this
     agreement.

     In May of 1998, the Company entered into a management agreement for
     internal accounting services for $3,000 per month and the issuance of
     100,000 restricted shares, valued at $.77 per share, or $77,000 and was
     recorded as stock based compensation.

     During June of 1998 the Company advanced this investor $60,000 at 8%
     interest of which $50,000 was repaid during the year leaving a balance of
     $12,234 including accrued interest.  During the year ended December 31,
     1998 the Company recorded $2,234 of interest income from this loan.

     The Company issued 400,000 restricted shares to the chairman and director
     for services during the year ended December 31, 1998, valued at $.77 per
     share or $308,000, based upon their market value subject to Rule "144"
     restrictions.  Of this amount $154,000 was added to resource properties
     and $154,000 was recorded as stock based compensation.

     Credit Facilities Provided By Affiliates

     In December, 1998 one shareholder agreed to advance up to $40,000 with
     interest at 10% through April 30, 1999, or the completion of the Company's
     offering of common stock, whichever occurs first, and its secured by the
     Company's resource properties.  In 1999 this note was amended to provide
     up to $1,000,000 at 12% indefinitely.  At December 31, 1999, $300,000 of
     principle is outstanding on this note, plus accrued interest of $10,669.




                                                             F-16
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     In December 1998, an affiliate agreed to make a $500,000 revolving credit
     available to the Company  with interest at prime plus 2.5% available to
     the Company, on an as needed basis, secured by the Company's resource
     properties with no specific repayment terms.  At December 31, 1999 $55,766
     was outstanding.  Interest expense on this note was $1,205 during 1999.

     During 1999 another affiliate agreed to advance $139,180 for expenses and
     cash with interest at 9%.  Interest expense was $4,061 under this
     agreement for 1999.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

     In order to maintain the Company's current unpatented mineral lease claims
     [See Note 1], the Company must pay an annual rental fee of $100 per claim
     to the Bureau of Land Management.  The fees have been paid through August
     31, 1999.  During 1997, some of these properties were "overstaked" by a
     third party and the Company has won a stay of decision from the finding of
     the Bureau of Land Management(BLM), which has caused this overstaking,
     pending the review of the Interior Board of Land Appeals(IBLA) relating to
     this claim. The Company does not expect the result of this review,
     regardless of outcome, to have an adverse effect on the carrying value of
     the resource properties.  The Company did however agree to forego its
     rights to 192 claims in connection with its joint venture agreement
     discussed in Note 10, and has reduced resource properties by $116,736
     during 1999.

     Royalty (Claim Rental) Commitment

     On March 19, 1997 the Company's prior president entered into an option to
     purchase previously leased claims from the original lessors of 47
     unpatented claims and owner of 62 patented claims.  This agreement gave
     the Company all patented and unpatented claims for the purchase price of
     100,000 shares of the Company's common stock subject to their restricted
     legend, and certain accelerated payments under a consulting agreement and
     further 10% Net Smelter Return (NSR) less applicable expenses up to
     $100,000,000 million dollars from the properties.  Additionally, on March
     19, 1997 the Company entered into a forty-eight (48) month consulting
     agreement with the geological company owned by the original owner of the
     patented claims with a monthly retainer of $4,000 and a minimum total of
     $192,000 to be paid under this agreement.  During 1997, $36,000 was paid
     under this agreement for geological efforts and recorded as an addition to
     resource properties.

     The preceding agreement was canceled and replaced by the current
     management and on May 26, 1998,  the Company acquired 62 patented claims
     and mill sites and the rights to 47 unpatented claims on Prospect
     Mountain.  In connection with this purchase, the Company paid the seller
     $128,000 to buy out the consulting commitment which is included in
     resource properties, and $19,300 for repayment of additional filing fees
     which may be subject to reimbursement to the Company; this amount is
     included in other assets. The Company also issued 106,000 shares to the
     seller and a company he controls, which were valued at $90,100 or $.85 per
     share, and a like amount was recorded as an addition to resource
     properties.  Additionally, the Company agreed to pay advance minimum
     royalties of up to $100,000,000 as follows:




                                                            F-17
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


          1)   $15,000 on the closing date
          2)   $50,000 on or before the first anniversary
          3)   $90,000 on or before the second anniversary
          4)   $120,000 on or before the third anniversary
          5)   $150,000 on or before the fourth anniversary
          6)   $200,000 on or before the fifth anniversary and $200,000 each
               year thereafter.

     This commitment ends when a total of $100,000,000 has been paid, including
     net smelting returns, or should the Company pay the seller, at the
     Company's discretion, $27,000,000 prior to May 26, 2003.

     The above advance on minimum royalties will be accelerated when the
     Company begins to produce extraction revenues from these properties and
     the net smelting returns, which are 4% in the case when the average price
     of gold (London quote) in each production quarter exceeds $400 per ounce
     and 3% in the case when the average price is less than $400 per ounce;
     exceeds the annual minimum.  In connection with the earn-in and joint
     venture agreement, the Company assigned those claims to the seller with
     the same commitment as the royalty commitment in the form of a rental
     commitment.

     Other Commitments

     During 1997, the Company entered into net smelting agreements for up to
     $7,000,000 with former shareholders in exchange for the retirement of
     2,187,500 shares.  The Company charged $437,500 to common stock and
     additional paid in capital as this represented the net estimated value of
     the distribution rights based upon the anticipated payments, if any, that
     would have been made under the agreement.

     In August 1998, a lawsuit was commenced against the Company by German
     American Investments Limited ("GAI").  GAI was the assignor of the above
     distribution rights granted by the Company to eight of its shareholders in
     1997, including its current CEO, Martin Sportschuetz.  The settlement was
     finalized whereas the Company is to issue 1,312,500 unrestricted shares
     and 1,750,000 restricted shares to rescind the distribution agreement and
     these were recorded at the original value ascribed to the distribution
     rights, an increase of $437,500 in common stock and additional paid in
     capital through December 31, 1998.  The Company also agreed to issue
     1,093,500 restricted shares, valued at one-half of the market price of the
     Company's common stock on December 31, 1998, or $.3625 per share, totaling
     $396,485  consistent with the value of restricted stock agreed to by the
     parties for the recission, which was charged to settlement expense.

     On May 8, 1997, the Company entered into an employment agreement with the
     former president for a period of seven (7) years, which provided former
     annual cash compensation of $144,000, subject to a ten percent (10%)
     increase per year and such other increases as the Board of Directors may
     determine from time to time at its sole discretion and employee stock
     bonuses, including 400,000 shares of common stock, issued to the former
     president upon signing, subject to the restrictions of Rule 144 and
     thereafter 210,000 shares of common stock were to be issued on each
     anniversary for the first, second, third and fourth yearly anniversary of
     the contract.  Additionally, the agreement called for stock options
     entitling the president to purchase up to 1,000,000 shares from 1999
     through 2005 at prices ranging $5.00 per shares increasing annually to
     $8.50 per share.

                                                             F-18
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     On April 22, 1998, the Company terminated the former president.  In July
     1998, EPAR filed a lawsuit against its former president.  This lawsuit was
     subsequently settled.  The settlement required Mr. Ogilvie to return
     400,000 shares of the Company's common stock which he received as a result
     of his employment by EPAR, 50,000 of the shares were assigned to the
     shareholder who made a significant investment in the Company during 1997.
     The Company recorded settlement income of $350,000 based upon the original
     value ascribed to these shares.  In 1999 the significant shareholder
     waived any rights to the assigned shares and the Company recorded $50,000
     of settlement income.

     In December, 1998 a subcontractor filed a lawsuit in Utah state court
     against the Company seeking $60,000 for the breach of an alleged oral
     employment agreement.  The Company has filed a motion to dismiss for lack
     of personal jurisdiction. The Company intends to defend the case
     vigorously.  At December 31, 1999 this suit remains outstanding.  No
     amounts were recorded in the financial statement.

     The Company's mining and exploration activities are subject to various
     federal, state and local laws and regulations governing the protection of
     the environment. These laws and regulations are continually changing and
     generally becoming more restrictive. The Company conducts its operation so
     as to protect the public health and environment and believes its
     operations are materially in compliance with all applicable laws and
     regulations. The Company has made, and expects to make in the future,
     expenditures to comply with such laws and regulations.

     The Company is from time to time involved in various claims, legal
     proceedings and complaints arising in the ordinary course of business.  It
     does not believe that any pending or threatened proceeding related or
     other matters, or any amount which it may be required to pay by reason
     thereof, will have a material adverse effect on the financial condition or
     future results of operations of the Company.

NOTE 8 - COMMON STOCK

     During 1997, the Company retired 2,187,500 shares of common stock in
     exchange for distribution rights, valued at $437,500.

     Effective for December 31, 1998 the Company agreed to issue 1,312,500
     unrestricted shares and 1,750,000 restricted shares to rescind the
     distribution agreement.  Additionally, 1,093,500 restricted shares valued
     at one-half of the market price of the Company's common stock consistent
     with the value of restricted stock agreed to by the parties, which
     resulted in a $396,485 charge to settlement expense.

     In 1997 the Company sold 2,075,000 shares during the year in exempt
     transactions for $1.00 a share, which, net of offering costs of $109,925,
     generated net proceeds to the Company of $1,265,075 and a $700,000 stock
     subscription receivable, which was collected on March 4, 1998.

     Also in 1997, the Company issued 400,000 shares to the president in
     connection with his employment agreement as discussed in Note 7.  At
     December 31, 1997 resource properties were increased $200,000 and $200,000
     was charged to the statement of operations for the year ended December 31,
     1997.  These shares were valued at $1.00, which represented the most
     recent selling price of restricted shares.


                                                             F-19
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     In 1998 the Company terminated the president and both parties commenced
     legal action which resulted in the return to the Company of 350,000
     shares.  The Company recorded settlement income of $350,000 based upon the
     original value ascribed to the shares.

     In 1997, the Company issued 250,000 shares to an affiliate for investment
     banking services which were valued at $1.16 or $290,000, which represented
     the same proportionate discount for recent sales of restricted shares to
     the market price at the time of the transaction.

     In 1997, the Company issued 25,000 shares to a finder, valued at $1,00 per
     share, with a like amount charged to additional paid in capital. These
     shares were valued at the most recent selling price of restricted shares.

     In March, 1998, the Company issued 357,143 shares valued at $.70 in
     cancellation of $250,000 debt with an affiliate.  The shares outstanding
     and the amounts "Due to Related Party" at December 31, 1997 have been
     adjusted to reflect his transaction. The value ascribed to these shares
     was adjusted for the same proportionate discount for restricted shares in
     relation to the market price at the time of the transaction.

     In March 1998, the Company issued 750,000 shares to an affiliate for
     exploration and reactivation services performed through December 31, 1997
     valued at $.70 per share or $525,000.  At December 31, 1997 resource
     properties were increased $175,000 and $350,000 was charged to general and
     administrative expenses in the statement of operations for the year ended
     December 31, 1997.  The value ascribed to these shares was adjusted for
     the same proportionate discount for restricted shares in relation to the
     market price at the time of the transaction.

     As discussed in Note 6, the Company issued 100,000 restricted shares
     valued at $.77 per share, or $77,000; 105,000 restricted shares valued at
     $.85 per share, or $89,250; 90,000 restricted shares valued at $.85 per
     share, or $69,300 and 400,000 restricted shares valued at $.77 per share,
     or $308,000 to various members of the Company's management team.  Of these
     amounts $233,275 was added to resource properties and $310,275 was
     recorded as stock based compensation.

     Pursuant to a 1997 agreement, the Company issued 194,900 unrestricted
     shares valued at $1.21 per share, or $201,165, which was recorded as an
     addition to resource properties in 1998.

     In 1999 the Company issued 55,000 shares valued at .80 per share of
     $44,000 for geological services and advanced royalties which were recorded
     as additions to resource properties.

     In 1999 the Company issued 105,000 shares valued at $1.08 to the president
     consistent with his employment agreement and recorded the same as stock
     based compensation.

     Reserved Shares

     The Company granted options to an accredited investor to purchase, at $.50
     per share, up to 1,225,000 shares of restricted common stock. The option
     period begins on September 3, 1999 and runs through September 3, 2000 or
     sooner, should the Company sell the control of either its 62 patented
     claims or a majority of its outstanding common stock to a single
     purchaser.

                                                             F-20
               EUROPEAN AMERICAN RESOURCES, INC.
                  (AN EXPLORATION STAGE COMPANY)
                 NOTES TO FINANCIAL STATEMENTS


     The Company also granted an accredited investment firm options to
     purchase, also at $.50 per share up to 675,000 shares of restricted common
     stock. The option period begins on September 3, 1999 and runs through
     September 3, 2000 or sooner, should the Company sell the control of either
     its 62 patented claims or a majority of its outstanding common stock to a
     single purchaser.

     Pursuant to a 1997 agreement, 242,600 shares are expected to be issued in
     1999 for services in connection with the Company's resource properties.

     In the case of a change in control, whereby the current management would
     be eliminated, the company agrees to first issue an option to the
     president to purchase from 189,000 to 201,000 shares of the Company's
     common stock at an exercise price of $.25.

     In February 2000 in connection with the earn-in joint venture agreement
     the Company pledged 1,000,000 shares as collateral to the holder of the
     royalty/rental commitment.

NOTE 9 - FAIR VALUE OF FINANCIAL INSTRUMENTS

     The estimated fair values of the Company's financial instruments as of
     December 31, 1999, are as follows:

                                                              1999
                                                       Carrying     Fair
      Assets:                                           Amount      Value
     Cash and Equivalents                             $  2,228        $  2,228
     Claim receivable                                  267,500         267,500

     Liabilities:
     Accounts payable and accrued expenses            $231,850         $231,850
     Notes payable to related parties                 $509,675         $509,675

NOTE 10 - SUBSEQUENT EVENTS

     Earn-in and Joint Venture Agreement

     On February 18, 2000, the Company entered into certain earn-in and joint
     venture agreements with Homestake Mining for an area of interest, which
     contains 103 of EPAR's Prospect Mountain claims pursuant to a letter of
     intent signed in October, 1999.  Homestake agreed to contribute
     approximately 30 claims in the area of interest.  Homestake is the manager
     of the joint venture and committed in stage one to expend  a minimum of
     $300,000 through the end of 2000.  In total, Homestake has committed to
     spend a minimum of $2,000,000 through 2002 and in turn will be vested with
     51% in the joint venture at that juncture.  After completion of a
     feasibility study with the recommendation to enter mining, Homestake will
     become 70% vested.










                                                             F-21





                           SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) 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.





                 European American Resources, Inc.
                           (Registrant)




By:      /s/ Martin R. Sportschuetz
             Martin R. Sportschuetz, President & CEO


Dated:  April 14, 2000



     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.


     NAME                               CAPACITY




/s/ Martin R. Sportschuetz
Martin R. Sportschuetz             President & CEO


Dated:  April 14, 2000



















                                                             F-23