EXHIBIT 13(A) - FORM 10-Q FOR THE PERIOD ENDING MARCH 31, 1997
--------------------------------------------------------------

                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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

     FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 1997

                                                        OR

(    )  TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15 (D) OF THE  SECURITIES
     EXCHANGE ACT OF 1935

     FOR THE TRANSITION PERIOD FROM N/A to N/A 
                                   -------------
                          Commission File No.: 0-15543

                        METAL RECOVERY TECHNOLOGIES, INC.

             (Exact name of Registrant as specified in its charter)

               415 East 151st Street, East Chicago, Indiana 46312

                            Telephone: (219) 397-6261

A Delaware Corporation                  Employer Identification No.:  71-0628061

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12, 13 or 15 (d) of the  Securities  Exchange Act of 1939
during the  proceeding 12 months (or for such shorter period that the Registrant
was  required to file such  report(s),  and (2) has been  subject to such filing
requirements for the past 90 days:


                                 Yes (X) No ( )

Number of shares  outstanding of the  Registrant's  Common Stock as of March 31,
1997: 25,635,487

The Securities and Exchange  commission has not approved or disapproved the Form
10-Q, or passed on the accuracy or adequacy or of this report.

<PAGE>


TABLE OF CONTENTS


                                                                            PAGE
PART I - Financial Data

    Item 1 -- Financial Statements:

             Consolidated Balance Sheets
                      as of March 31, 1997 and December 31, 1996               1

             Consolidated Statement of Operations:
                      for the Three (3) Months ended March 31, 1997 & 1996     3

             Consolidated Statement of Cash Flows for the Three (3) Months
                      ended March 31, 1997 & 1996                              4

             Notes to consolidated financial statements                        5


    Item 2 - Management's discussion and analysis of
             financial condition and results of operations.                    7


PART II - Other Information

    Item 1 - Legal Proceedings                                                 8

    Item 2 - Changes in Securities                                             9

    Item 3 -- Defaults on Senior Securities                                    9

    Item 4 - Submissions of Matters to a Vote of Security Holders             10

    Item 6 - Exhibits and Reports on Form 8-K                                 10

    Item 27 - Financial Data Schedule                                         11


<PAGE>
<TABLE>

<CAPTION>



                        METAL RECOVERY TECHNOLOGIES, INC

                           Consolidated Balance Sheets
                                      as of
                      March 31, 1997 and December 31, 1996


                                                                             Mar 31           Dec 31
                                                                              1997             1996
                                                                                   (Unaudited)

<S>                                                                           <C>               <C>   
ASSETS:
Current Assets:
      Cash & equivalents                                                               $                $
                                                                                   2,535            6,778
      Accounts Receivable
                                                                                  30,801                -
      Inventories                                                                291,106
                                                                                                   65,370
      Other current assets
                                                                                       -           97,355
                                                                        ----------------------------------

            Total current assets                                                 324,442          169,503
                                                                        ----------------------------------

 Property & equipment:
      Leasehold improvements                                                     348,255          348,255
      Equipment                                                                2,239,858        2,178,823
      Vehicles
                                                                                  31,062           31,062
      Furniture & Fixtures
                                                                                  33,845           33,845
                                                                        ----------------------------------

Total property and equipment                                                   2,653,020        2,591,985
Less accumulated depreciation, depletion
            and amortization
                                                                                       -                -
                                                                        ----------------------------------

                    Net property & equipment                                   2,653,020        2,591,985
                                                                        ----------------------------------

Other assets:
      Concessions, rights, patents, goodwill                                  12,905,749       12,905,749
      Organization costs                                                       2,855,888        2,112,367
      Other assets
                                                                                  22,900           53,400
                                                                        ----------------------------------

            Total other assets                                                15,784,537       15,071,516
                                                                        ----------------------------------

             TOTAL ASSETS                                                   $ 18,761,999     $ 17,833,004
                                                                        ==================================


</TABLE>







                                       -1-

<PAGE>



                        METAL RECOVERY TECHNOLOGIES, INC

                     Consolidated Balance Sheets - continued
<TABLE>
<CAPTION>

                                                                             Mar 31           Dec 31
                                                                              1997             1996
                                                                                   (Unaudited)
<S>                                                                           <C>              <C> 
LIABILITIES:
Current liabilities:
      Current maturities of long-term indebtedness                                     $                $
                                                                                   4,550            4,580
      Notes payable
                                                                                  36,026           49,894
      Accounts payable                                                         2,050,180        1,503,991
      Due to Former officer & director
                                                                                  68,037           55,098
      Convertible loans                                                        2,899,011        3,288,010
                                                                        ----------------------------------

            Total current liabilities                                          5,057,804        4,901,573
                                                                        ----------------------------------

Long-term liabilities:
      Long-term debt                                                             505,000          505,000
      Capital lease
                                                                                   3,108            4,182
                                                                        ----------------------------------

            Total long-term liabilities                                          508,108          509,182
                                                                        ----------------------------------

            TOTAL LIABILITIES                                                  5,565,912        5,410,755
                                                                        ----------------------------------

STOCKHOLDERS' EQUITY:
      "Series A" Preferred stock, $10 par value
            100,000 shares authorized 46,965
            shares outstanding                                                   469,650          469,650
      "Series B" Preferred stock, $10 par value
            2,500,000 shares authorized, 21,375
            shares outstanding
                                                                                  44,373           44,373
      Commonstock,   par  value  of  $.001;   100,000,000   shares   authorized;
            25,635,487 and 20,707,597  issued and  outstanding at March 31, 1997
            and December 31, 1996, respectively
                                                                                  25,635           20,707
      Additional paid-in capital                                              63,450,270       62,355,161
      Retained deficit                                                      (50,793,841)     (50,467,642)
                                                                        ----------------------------------

            TOTAL STOCKHOLDERS' EQUITY                                        13,196,087       12,422,249
                                                                        ----------------------------------

            TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                        $ 18,761,999     $ 17,833,004
                                                                        ==================================

</TABLE>

      See accompanying notes which are an integral part of these statements





                                       -2-

<PAGE>


<TABLE>
<CAPTION>

                        METAL RECOVERY TECHNOLOGIES, INC

                      Consolidated Statement of Operations
                                     for the
                  Three (3) Months ended March 31, 1997 & 1996

                                                                             Mar 31           Mar 31
                                                                              1997             1996
                                                                                   (Unaudited)

<S>                                                                              <C>              <C>            
Sales                                                                                  $                $
                                                                                       -                -
Cost of sales
                                                                                       -                -
                                                                        ----------------------------------

      Gross profit
                                                                                       -                -
                                                                        ----------------------------------

Operating expenses:
      Selling, general & administrative                                          313,260            88,678
                                                                        ----------------------------------

            Total operating expenses                                             313,260            88,678
                                                                        ----------------------------------

            Income (loss) from operations                                      (313,260)           (88,678)
                                                                        ----------------------------------

Non operating income (expense):
      Interest expense
                                                                                (12,939)         (13,750)
                                                                        ----------------------------------

            Total non operating income (expense)
                                                                                (12,939)         (13,750)
                                                                        ----------------------------------

             Net Income (loss)                                            $    (326,199)   $    (102,428)
                                                                        ==================================

Weighted average number of
      Common shares outstanding                                               23,249,603       13,764,653

      (Loss) per share                                                   $      (0.0140)  $      (0.0074)

</TABLE>

      See accompanying notes which are an integral part of these statements














                                       -3-

<PAGE>

<TABLE>
<CAPTION>


                        METAL RECOVERY TECHNOLOGIES, INC

                      Consolidated Statements of Cash Flows
                                     for the
                  Three (3) Months ended March 31, 1997 & 1996

                                                                             Mar 31           Mar 31
                                                                              1997             1996
                                                                                   (Unaudited)

Cash flows provided by (used for)
      operations:

<S>                                                                       <C>              <C>           
      Net loss                                                            $    (326,199)   $    (102,428)
      Net changes in current assets
            and liabilities excluding long-term indebtedness
                                                                                 (2,921)           35,581
                                                                        ----------------------------------

            Net cash used by operating activities                              (329,120)          (66,847)
                                                                        ----------------------------------

Cash flows provided by (used for)
      investment activities:

      Net changes to plant & equipment                                          (61,035)         (327,387)
                                                                                
      Additions, deletions to concessions,
            rights, patents & goodwill
                                                                                       -                -
      Additions, deletions to Organization costs                               (743,521)
      Decrease (increase) in Other assets
                                                                                  30,500                -
                                                                        ----------------------------------

            Net cash used by investing activities                              (774,056)         (327,387)
                                                                        ----------------------------------

Cash flows provided by (used for)
      financing activities:

      Increase (decrease) in long term &
            convertible debt                                                     (1,104)           207,209
                                                                                 
      Issued common stock
                                                                                   4,928                -
      Received from additional
            paid-in capital                                                    1,095,109
                                                                                                        -
                                                                        ----------------------------------

            Net cash provided by financing activities                          1,098,933           207,209
                                                                        ----------------------------------

            Decrease in cash                                                     (4,243)         (187,025)
                                                                                 
            Cash & equivalents at beginning of year                                6,778           200,855
                                                                                   
                                                                        ----------------------------------

            Cash & equivalents at March 31, 1997 & 1996                          $ 2,535      $     13,830
                                                                                  
                                                                        ==================================

</TABLE>

      See accompanying notes which are an integral part of these statements

                                       -4-

<PAGE>



                        METAL RECOVERY TECHNOLOGIES, INC.

                          NOTES TO FINANCIAL STATEMENTS

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)  Basis of presentation
Metal Recovery Technologies, Inc., ("MRTI") presents all financial statements in
United States  dollars and under  generally  accepted  accounting  principles as
practiced in the United States.

Metal  Recovery  Technologies,  Inc.  (formerly  Malvy  Technology,  Inc.  - the
Company),  was from 1993 to the  latter  part of 1995  primarily  engaged in the
development and testing of the Malvy anti-theft  device and the marketing of the
Malvy device concept to the public and automotive manufacturers.  This division,
however, went into receivership in October, 1995. Prior thereto, the Company was
engaged  primarily in the business of mining and developing  precious  metals in
Alaska,  the  production  of oil and gas in  Oklahoma  and  New  Mexico  and the
transmission of gas through a pipeline  operating in Oklahoma.  These operations
were disposed of during 1995.

On April 27, 1995, the Company  completed the  acquisition of all of the capital
of  Metal  Recovery  Industries  (International),  Inc.  and  its  wholly  owned
subsidiary,  Metal Recovery  Industries  (US),  Inc.  (hereafter  referred to as
"MRI(US)"),  a US  corporation  engaged in the recovery of zinc from  galvanized
steel.  To reflect the  importance  of the  acquisition  of this  business,  the
company's  name was  changed  from  Malvy  Technology,  Inc.  to Metal  Recovery
Technologies,  Inc. Dr. William Morgan, the inventor of the process,  joined the
Board of Directors on May 10, 1995.

(b)  Interim financial statements
The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
financial  information  and the  instructions  to Form  10-Q.  Accordingly,  the
consolidated  financial  statements  do not  include  all  the  information  and
disclosures  required by generally accepted  accounting  principles for complete
financial statements.  In management's  opinion, all adjustments  (consisting of
normal recurring  accruals)  considered  necessary for a fair  presentation have
been  included.  Operating  results  for  interim  periods  are not  necessarily
indicative  of  results to be  expected  for the full  year.  While the  Company
believes that the disclosures presented are adequate to make the information not
misleading, it is suggested that these consolidated financial statements be read
in conjunction with the latest audited  financial  statements and notes included
in the Company's Form 10-K.

(c)  Inventories
Inventories  consist of zinc bearing solutions,  other chemicals and scrap steel
at the company's plant in East Chicago.

(d)  Organization Costs
The  company has elected to continue  its  practice of  capitalizing  all of its
expenses associated with the raising of capital,  obtaining financing,  locating
and acquiring  equipment,  obtaining  customers and  suppliers,  installing  and
testing equipment, and certain other administrative activities through the first
quarter of 1997.

(e)  Depreciation and Amortization 
Metal Recovery Industries (US), Inc. is in the developmental stage and therefore
no depreciation nor  amortization  was taken in the accounting  periods shown in
this report.







                                       -5-


<PAGE>


(f)  Convertible Loans
Continued operations have, and will (see "Liquidity" below),  require loans from
various  entities.  During 1995, 1996 and 1997 MRTI issued  convertible  debt in
exchange for funds used to administer and construct its operations.  As of March
31, 1997, this indebtedness,  including interest, amounted to $2,899,011.  These
loans are exercisable at various rates,  from 25 cents to 43.33 cents per share,
and at  various  times.  They  also  contain  anti-dilution  provisions  and are
secured,  pro rata,  by liens on the shares of  MRI(US),  as well as its assets.
During the  reporting  quarter,  $850,000  of  convertible  debt and  $65,036 of
accrued interest was converted into 4,356,462 shares of stock.
<TABLE>
<CAPTION>

At March 31, 1997 the convertible loans consisted of the following:

                                   Loan      Conversion
           Lender                 Amount         Price       Interest      Subtotal      Converted       Total
--------------------------------------------------------------------------------------------------------------------

<S>                              <C>             <C>          <C>          <C>            <C>               <C>
Sovereign Trust Services         $   650,000     $  0.3900    $  43,606    $   693,606    $(693,606)              $
                                                                                                                  -

Sundorn Holding, SA                  650,000        0.4333       83,032        733,032                      733,032

Osbourne Ltd.                        200,000        0.2000       21,430        221,430     (221,430)
                                                                                                                  -

Plenbrick Ltd.                       550,000        0.2750       69,805        619,805                      619,805

Alcaria Investments, Ltd.             83,334        0.2500       19,574        102,908                      102,908

Jepherson Ltd.                        83,334        0.2500       17,650        100,984                      100,984

Antheims Ltd.                         83,334        0.2500       15,460         98,794                       98,794

Pangea Ltd.                          500,000        0.3000       17,323        517,323                      517,323

Quested Ltd.                         500,000        0.3000        6,703        506,703                      506,703

Dorrance Ltd.                        219,462        0.3000                     219,462                      219,462
                                                                      -

                                  $3,519,464                   $294,583     $3,814,047    $(915,036)     $2,899,011

</TABLE>
All of the  foregoing  loans are  secured,  pro-rata,  by liens on the shares of
Metal Recovery Industries (US), Inc., as well as its assets and are protected by
anti-dilution provisions.
















                                       -6-

<PAGE>


                         PART I - Financial Information
                                     ITEM 2
                     Management's Discussion and Analysis of
          Consolidated Financial Condition and Statement of Operations

                               Financial Condition
                               -------------------

The  increase in property  and  equipment  and other  assets at March 31,  1997,
compared  to  December  31,  1996  is due to  additional  cash  expended  in the
development of the Company's facility in East Chicago.

                                    Liquidity
                                    ---------

As of December  31, 1996,  the Company had, in addition to its existing  cash on
hand, unused convertible loan facilities aggregating approximately $1.2 million.
During the reporting quarter, $520,000 of this unused facility was draw down and
used  to  administer  and  construct  the  Company's  operations.  Additionally,
$200,000  was raised by a  subscription  under  Regulation  S  resulting  in the
issuance of 571,428 shares at $0.35 per share to an offshore entity. The Company
believes  that it has  sufficient  working  capital,  existing,  or proposed new
facilities  available to allow the Company to reach full  production  and to pay
off all trade creditors.

                            Statements of Operations
                      Three Months Ended March 31, 1997 vs.
                        Three Months Ended March 31, 1996
                        ---------------------------------

There was no change in  "Revenues"  compared to the same period a year ago.  The
company had  sales/revenues  of $108,945 during the current reporting period but
because  of the  election  to  capitalize  all  organization  costs  during  the
development  stage of the Company,  these revenues were offset against the costs
capitalized.

The increase in "operating  expenses" is mainly due to  litigation  expenses and
the  non-capitalized  expenditures of the officers.  The Company had adopted the
policy of  capitalizing  all costs  associated  with the development of its East
Chicago  facility until the plant reached full  production  levels.  These costs
included  the  development,  marketing,  installing  and testing  equipment  and
administrative  activities.  Because the officers are involved in matters  other
than those  costs  applicable  to be  capitalized,  an  increase  in the current
period's operating expenses has occurred.

Owing to delays  and  problems  with  production,  the  Company  has  decided to
continue,  for the first  quarter  of 1997,  its  policy of  capitalizing  costs
associated with the  commissioning  of the plant in East Chicago.  For the three
month's  ended March 31, 1997 these  organization  costs  amounted to  $743,521.
Management  will review this policy on an ongoing basis but has set a target for
the  second  quarter  of 1997 to  discontinue  this  policy  when  the  plant is
processing steel scrap at an operating level of 1,000 tons per month.

The  Company  reported a net loss for the three  months of $0.014  per  weighted
average number of shares outstanding  compared to a loss of $0.0074 per weighted
average number of shares outstanding for the same period the previous year.

During  the first  three  months of 1997,  the  Company  capitalized  $61,035 of
equipment relating to the recommissioning of the plant at East Chicago.









                                       -7-


<PAGE>


                           PART II - Other Information

Item 1 - Legal Proceedings

(a)  Mr. Jack Alexander and "Morton Blue"
In September,  1994, the Company reached a settlement with a former chairman and
chief executive  officer of the Company,  Jack Alexander,  and certain  entities
related to him, in respect of amounts  claimed to be owed to them by the Company
on accounts of notes payable, loans and the redemption price of preferred stock.
Under the terms of the  settlement,  Mr.  Alexander  was to be paid $1.3 million
over a period ending May, 1995. The Company has  renegotiated  several times the
terms of payment to Mr.  Alexander.  At March 31,  1997,  the  Company  owed Mr.
Alexander a total of  approximately  $537,687  regarding  this  settlement.  Mr.
Alexander also owned all of the shares of a class of preferred  stock which gave
Mr.  Alexander  the right to elect the majority of the board of directors of the
Company.

During 1996, Mr.  Alexander  assigned his interest in the settlement,  including
the shares of preferred stock to an entity  identified as "Morton Blue" (with an
address  in the  British  Virgin  Islands).  During  the first  quarter of 1997,
"Morton Blue" demanded that the Company call a shareholders'  meeting at which a
majority of the  directors are to be elected by the holder of the said shares of
preferred  stock.  The  Company  does not  believe  that Mr.  Alexander,  or his
assignee,  has the  right to call such a meeting  (although  the  holder of such
shares of  preferred  stock may be  entitled  to  designate  a  majority  of the
directors).

The Company's convertible debt lenders, under the pledge and security agreement,
have the right,  should Mr. Alexander or his assignee continue to assert a right
to control the Company, to exchange such loans, provided they aggregate at least
$2 million in  principal  amount,  for  outright  ownership of a majority of the
common  shares of  MRI(US).  The  amount  owed to Morton  Blue is  $537,687  and
$524,748 at March 31, 1997 and December 31, 1996, respectively. The amounts owed
to the  convertible  debt lenders are  $2,899,011  and  $3,288,010  for the same
periods, respectively.

The  Company  has no ability to settle the amount  owed to Morton  Blue in cash.
Therefore,  after  extensive  negotiations  an  agreement  has now been  reached
between the Company  and Morton  Blue to settle the  liability  and redeem the A
Preferred  shares.  This will occur by the issuance of  2,550,000  shares of the
Company's  common  stock  under  Regulation  S of the  Securities  and  Exchange
Commission.  This  amounts to  approximately  21 per  share.  Based on the total
number  of  shares  outstanding  at  March  31,  1997,  Morton  Blue  will  hold
approximately 9% of the Company's issued share capital.

Completion of this agreement has not yet taken place.

(b)  Levine/Class Action

On November 6, 1995, an action entitled Levine vs. Metal Recovery  Technologies,
Inc., was filed in the United States District Court of Delaware by a shareholder
against the Company and certain present and former directors,  alleging breaches
of the federal securities laws, by reason of alleged material misrepresentations
by the  Company and the  Company's  alleged  failure to make  timely  disclosure
relating to its Malvy  operations.  In November,  1996, the Court  certified the
proposed  class.  On October 31, 1996, a second action was commenced by the same
plaintiff  against  the same  defendants  and  others,  including  a  number  of
brokerage  firms and their  representatives,  alleging a  conspiracy  to inflate
prices at which the  shares of the  Company's  common  stock  traded  during the
period specified therein.

Without admitting liability,  the Company has reluctantly agreed to settle these
actions.  This decision was primarily  taken to avoid mounting  legal costs,  to
free  management  from the burdensome time involved in dealing with this matter,
and to achieve  certainty as to the outcome of the proceedings.  The uncertainty
of these  proceedings  has  been  negatively  affecting  or  delaying  potential
business  transactions by the Company's  subsidiary,  Metal Recovery  Industries
(US), Inc.







                                       -8-

<PAGE>


                The agreed settlement is $3.25 million payable as
follows:

          $500,000 in cash to be paid on October 15, 1997 (the effective date).
               
          $550,000,  in the  form of cash or  unrestricted  common  stock of the
          Company,  to be paid on the effective  date. If the Company  elects in
          its sole discretion not to make this payment in the form of cash , the
          number of shares of unrestricted common stock of the Company necessary
          to satisfy the obligation of this subparagraph  shall be determined by
          dividing  $550,000 by the market price of the Company's  common stock.
          The market  price of the  Company's  common stock will be deemed to be
          the  average of the  closing  bid prices of that stock  during the ten
          trading days preceding the effective  date.  Should the effective date
          not have  occurred by October 15, 1997,  the Company will deposit into
          escrow  on that date an  amount  of stock  equal to twice its  payment
          obligation.  Should the Company's stock  thereafter  decline by 30% or
          more from the market price,  the escrow agent, as promptly as possible
          without  unduly  depressing  the price of the  Company's  stock,  will
          liquidate  sufficient  shares  to yield the sum of  $550,000  in cash,
          whereupon  the balance of the shares will be returned to the  Company.
          The funds obtained shall then be held in escrow,  bearing interest for
          the benefit of the class,  until the effective  date. 

          The  Company  will  pay the  remaining  $2.2  million  in four  annual
          installments  in the  amount  of  $550,000,  beginning  on  the  first
          anniversary of the effective  date. The Company shall have the option,
          in  its  sole  discretion,  to  satisfy  all  or  any  portion  of the
          installment  payment  obligation  in  the  form  of  cash,  shares  of
          unrestricted common stock of the Company, or any combination  thereof.
          If  the  Company  decides  not  to  satisfy  the  installment  payment
          obligation  solely with cash,  then the Company  shall be obligated to
          pay in the form of unrestricted common stock of the Company the amount
          of the  installment  payment  obligation  less the amount paid in cash
          (the  "Non-Cash  Obligation").  The  number of shares of  unrestricted
          common  stock  of  the  Company  necessary  to  satisfy  the  Non-Cash
          Obligation shall be calculated as follows:  (a) if the market price of
          the  unrestricted  common  stock of the  Company  is less  than $1 per
          share, then the Non-Cash  Obligation  divided by the market price; (b)
          if the market  price of the  unrestricted  common stock is equal to or
          greater  than  $1,  but in no event  greater  than  $1.4545,  then the
          Non-Cash  Obligation  divided  by $1 per  share;  or (c) if the market
          price is  greater  than  $1.4545,  then the  product  of the  Non-Cash
          Obligation and 1.4545 divided by the market price. The market price of
          the  Company's  stock will be deemed to be the  average of the closing
          bid prices of that stock  during the ten trading days  preceding  each
          installment payment date.

Completion of this agreement has not yet taken place.

The Company has made no provisions in the financial  statements  presented  with
this filing for either of the legal matters  presented above. Upon final signing
of  these  agreements,  expected  to  occur  subsequent  to the  filing  of this
document,   the  Company  will  reflect  these   settlements  in  its  financial
statements.

The Company is involved in other  matters of  litigation in the normal course of
business.  Management  believes that none of these matters,  upon their ultimate
resolution, will involve amounts material to the Company's statements.

Item 2 - Changes in Securities

The Company did not have any transactions  which materially  modified the rights
of any holders of any class of registered securities

Item 3 - Defaults upon Senior Securities

The Company  has not been  involved  in any  material  default in the payment of
principal or interest with respect to any indebtedness.





                                       -9-

<PAGE>



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

No matters  were  submitted  to a vote of  security  holders  during the quarter
covered by this report.

Item 6 - Exhibits and Reports on Form 8-K

The Company  did not file any reports on Form 8-K during the three month  period
ended March 31, 1997.

Item 27 - Financial Data Schedule

                                   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.



                                         Metal Recovery Technologies, Inc.




                                               \s\ Michael S. Lucas
                                       By: ________________________________
                                        Michael S. Lucas, Chairman and CEO


                                       Date: _______April 12, 1997_________




                                                  \s\ Roy Pearce
                                       By: _________________________________
                                        Roy Pearce, Chief Financial Officer


                                       Date: _______April 12, 1997_________
















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