----

| x      | Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934  |
|--------|------------------------------------------------------------------------------------------|
|   | For the quarter ended March 31, 2010 or                                                  |
|   |                                                                                     |
| o      | Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
|   | For the transition period from ___________ to ____________                               |

| U.S. ENERGY CORP.                                      |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Wyoming                                             |   | 83-0205516          |
|-----------------------------------------------------|--------|---------------------|
| (State or other jurisdiction of                     |   | (I.R.S. Employer    |
| incorporation or organization)                      |   | Identification No.) |
|                                                |   |                |
| 877 North 8th West, Riverton, WY                    |   | 82501               |
| (Address of principal executive offices)            |   | (Zip Code)          |
|                                                |   |                |
| Registrant's telephone number, including area code: |   | (307) 856-9271      |

| Not Applicable                                                       |
|----------------------------------------------------------------------|
| (Former name, address and fiscal year, if changed since last report) |

----

----

|     |                                                                                              | Page No.     |
|----------|---------------------------------------------------------------------------------------------------|--------------|
| PART I.  | FINANCIAL INFORMATION                                                                             |         |
|     |                                                                                              |         |
| Item 1.  | Financial Statements.                                                                             |         |
|     |                                                                                              |         |
|     | Condensed Balance Sheet as of March 31, 2010 (unaudited) and December 31, 2009 (unaudited)        | 4-5          |
|     |                                                                                              |         |
|     | Condensed Statements of Operations for the Three Months Ended March 31, 2010 and 2009 (unaudited) | 6            |
|     |                                                                                              |         |
|     | Condensed Statements of Cash Flows for the Three Months Ended March 31, 2010 and 2009 (unaudited) | 7-8          |
|     |                                                                                              |         |
|     | Notes to Condensed Financial Statements (unaudited)                                               | 9-22         |
|     |                                                                                              |         |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations       | 23-35        |
|     |                                                                                              |         |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                        | 35           |
|     |                                                                                              |         |
| Item 4.  | Controls and Procedures                                                                           | 35           |
|     |                                                                                              |         |
| PART II. | OTHER INFORMATION                                                                                 |         |
|     |                                                                                              |         |
| Item 1.  | Legal Proceedings                                                                                 | 36-37        |
|     |                                                                                              |         |
| Item 1A. | Risk Factors                                                                                      | 37           |
|     |                                                                                              |         |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                       | 37           |
|     |                                                                                              |         |
| Item 3.  | Defaults Upon Senior Securities                                                                   | 37           |
|     |                                                                                              |         |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                               | 37           |
|     |                                                                                              |         |
| Item 5.  | Other Information                                                                                 | 37           |
|     |                                                                                              |         |
| Item 6.  | Exhibits and Reports on Form 8-K                                                                  | 38           |
|     |                                                                                              |         |
|     | Signatures                                                                                        | 39           |
|     |                                                                                              |         |
|     | Certifications                                                                                    | See Exhibits |

----

| U.S. ENERGY CORP.                                  |   |
|----------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                           |   |
| ASSETS                                             |   |
| (Unaudited)                                        |   |
| (In thousands)                                     |   |
|                                               |   |   |   |   |   |   |
|                                               |   | March 31, |   |   | December 31, |   |
|                                               |   | 2010 |   |   | 2009 |   |
| CURRENT ASSETS:                                    |   |   |   |   |   |   |
| Cash and cash equivalents                          |   | $ | 19,350 |   |   | $ | 33,403 |   |
| Marketable securities                              |   |   |   |   |   |   |   |   |
| Held to maturity - treasuries                      |   |   | 25,480 |   |   |   | 22,059 |   |
| Available for sale securities                      |   |   | 855 |   |   |   | 1,178 |   |
| Accounts receivable                                |   |   |   |   |   |   |   |   |
| Trade                                              |   |   | 4,248 |   |   |   | 3,882 |   |
| Reimbursable project costs                         |   |   | 2 |   |   |   | 2 |   |
| Income taxes                                       |   |   | 353 |   |   |   | 353 |   |
| Other current assets                               |   |   | 1,105 |   |   |   | 1,223 |   |
| Total current assets                               |   |   | 51,393 |   |   |   | 62,100 |   |
|                                               |   |   |   |   |   |   |   |   |
| INVESTMENT                                         |   |   | 3,921 |   |   |   | 2,958 |   |
|                                               |   |   |   |   |   |   |   |   |
| PROPERTIES AND EQUIPMENT:                          |   |   |   |   |   |   |   |   |
| Oil and gas properties under full cost method, net |   |   | 33,311 |   |   |   | 26,002 |   |
| Undeveloped mining claims                          |   |   | 21,969 |   |   |   | 21,969 |   |
| Commercial real estate, net                        |   |   | 22,985 |   |   |   | 23,200 |   |
| Property, plant and equipment, net                 |   |   | 9,309 |   |   |   | 9,301 |   |
| Net properties and equipment                       |   |   | 87,574 |   |   |   | 80,472 |   |
|                                               |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                       |   |   | 1,213 |   |   |   | 1,193 |   |
| Total assets                                       |   | $ | 144,101 |   |   | $ | 146,723 |   |
|                                               |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                              |   |
|------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                       |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY           |   |
| (Unaudited)                                    |   |
| (In thousands, except shares)                  |   |
|                                           |   |   |   |   |   |   |
|                                           |   | March 31, |   |   | December 31, |   |
|                                           |   | 2010 |   |   | 2009 |   |
| CURRENT LIABILITIES:                           |   |   |   |   |   |   |
| Accounts payable                               |   | $ | 2,055 |   |   | $ | 6,500 |   |
| Accrued compensation                           |   |   | 784 |   |   |   | 1,748 |   |
| Current portion of long-term debt              |   |   | 200 |   |   |   | 200 |   |
| Other current liabilities                      |   |   | 213 |   |   |   | 224 |   |
| Total current liabilities                      |   |   | 3,252 |   |   |   | 8,672 |   |
|                                           |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, net of current portion         |   |   | 600 |   |   |   | 600 |   |
|                                           |   |   |   |   |   |   |   |   |
| DEFERRED TAX LIABILITY                         |   |   | 8,158 |   |   |   | 7,345 |   |
|                                           |   |   |   |   |   |   |   |   |
| ASSET RETIREMENT OBLIGATIONS                   |   |   | 228 |   |   |   | 211 |   |
|                                           |   |   |   |   |   |   |   |   |
| OTHER ACCRUED LIABILITIES                      |   |   | 799 |   |   |   | 762 |   |
|                                           |   |   |   |   |   |   |   |   |
| SHAREHOLDERS' EQUITY:                          |   |   |   |   |   |   |   |   |
| Common stock, $.01 par value; unlimited shares |   |   |   |   |   |   |   |   |
| authorized; 26,502,658 and 26,418,713          |   |   |   |   |   |   |   |   |
| shares issued, respectively                    |   |   | 265 |   |   |   | 264 |   |
| Additional paid-in capital                     |   |   | 119,608 |   |   |   | 118,998 |   |
| Accumulated surplus                            |   |   | 11,012 |   |   |   | 9,485 |   |
| Unrealized gain on marketable securities       |   |   | 179 |   |   |   | 386 |   |
| Total shareholders' equity                     |   |   | 131,064 |   |   |   | 129,133 |   |
| Total liabilities and shareholders' equity     |   | $ | 144,101 |   |   | $ | 146,723 |   |
|                                           |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                                |   |
|--------------------------------------------------|--------|
| CONDENSED STATEMENTS OF OPERATIONS               |   |
| (Unaudited)                                      |   |
| (In thousands, except shares and per share data) |   |
|                                             |   | Three months ended March 31, |   |
|                                             |   | 2010 |   |   | 2009 |   |
| OPERATING REVENUES:                              |   |   |   |   |   |   |
| Oil and gas                                      |   | $ | 6,824 |   |   | $ | 674 |   |
| Real estate                                      |   |   | 639 |   |   |   | 734 |   |
|                                             |   |   | 7,463 |   |   |   | 1,408 |   |
| OPERATING COSTS AND EXPENSES:                    |   |   |   |   |   |   |   |   |
| Oil and gas                                      |   |   | 2,500 |   |   |   | 812 |   |
| Impairment of oil and gas properties             |   |   | -- |   |   |   | 1,063 |   |
| Real estate                                      |   |   | 553 |   |   |   | 512 |   |
| Water treatment plant                            |   |   | 349 |   |   |   | 443 |   |
| Mineral holding costs                            |   |   | 57 |   |   |   | -- |   |
| General and administrative                       |   |   | 2,668 |   |   |   | 2,005 |   |
|                                             |   |   | 6,127 |   |   |   | 4,835 |   |
| OPERATING INCOME (LOSS)                          |   |   | 1,336 |   |   |   | (3,427 | ) |
| OTHER INCOME AND (EXPENSES):                     |   |   |   |   |   |   |   |   |
| Gain on sales of assets                          |   |   | 115 |   |   |   | 5 |   |
| Equity gain/(loss) from                          |   |   |   |   |   |   |   |   |
| unconsolidated investment                        |   |   | 963 |   |   |   | (91 | ) |
| Miscellaneous income                             |   |   | 1 |   |   |   | 5 |   |
| Interest income                                  |   |   | 59 |   |   |   | 87 |   |
| Interest expense                                 |   |   | (17 | ) |   |   | (38 | ) |
|                                             |   |   | 1,121 |   |   |   | (32 | ) |
| INCOME (LOSS) BEFORE                             |   |   |   |   |   |   |   |   |
| INCOME TAXES                                     |   |   | 2,457 |   |   |   | (3,459 | ) |
| INCOME TAXES:                                    |   |   |   |   |   |   |   |   |
|  Current (provision for) benefit from       |   |   | -- |   |   |   | 677 |   |
|  Deferred (provision for) benefit from      |   |   | (930 | ) |   |   | 435 |   |
|                                             |   |   | (930 | ) |   |   | 1,112 |   |
| NET INCOME (LOSS)                                |   | $ | 1,527 |   |   | $ | (2,347 | ) |
| NET INCOME (LOSS) PER SHARE                      |   |   |   |   |   |   |   |   |
| Basic                                            |   | $ | 0.06 |   |   | $ | (0.11 | ) |
| Diluted                                          |   | $ | 0.05 |   |   | $ | (0.11 | ) |
| Weighted average shares outstanding              |   |   |   |   |   |   |   |   |
| Basic                                            |   |   | 26,487,162 |   |   |   | 21,654,519 |   |
| Diluted                                          |   |   | 27,785,572 |   |   |   | 21,654,519 |   |
|                                             |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                                      |   |
|--------------------------------------------------------|--------|
| CONDENSED STATEMENTS OF CASH FLOWS                     |   |
| (Unaudited)                                            |   |
|                                                   |   |   |   |   |   |   |
|                                                   |   | (In thousands) |   |
|                                                   |   | Three months ended March 31, |   |
|                                                   |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                  |   |   |   |   |   |   |
| Net income (loss)                                      |   | $ | 1,527 |   |   | $ | (2,347 | ) |
| Adjustments to reconcile net income (loss)             |   |   |   |   |   |   |   |   |
| to net cash provided by (used in) operations           |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization               |   |   | 2,634 |   |   |   | 1,089 |   |
| Accretion of discount on treasury investment           |   |   | (22 | ) |   |   | (94 | ) |
| Impairment of oil and gas properties                   |   |   | -- |   |   |   | 1,063 |   |
| Equity (gain)/loss from unconsolidated investment      |   |   | (963 | ) |   |   | 91 |   |
| Deferred income taxes                                  |   |   | 930 |   |   |   | (435 | ) |
| Gain on sale of assets                                 |   |   | (115 | ) |   |   | (5 | ) |
| Noncash compensation                                   |   |   | 376 |   |   |   | 387 |   |
| Noncash services                                       |   |   | 15 |   |   |   | 19 |   |
| Net changes in assets and liabilities                  |   |   | (1,362 | ) |   |   | (994 | ) |
| NET CASH PROVIDED BY                                   |   |   |   |   |   |   |   |   |
| (USED IN) OPERATING ACTIVITIES                         |   |   | 3,020 |   |   |   | (1,226 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES:                  |   |   |   |   |   |   |   |   |
| Acquisition and development of oil and gas properties  |   | $ | (13,803 | ) |   | $ | (1,149 | ) |
| Net (investment in) redemption of treasury investments |   |   | (3,398 | ) |   |   | 9,475 |   |
| Development of real estate                             |   |   | -- |   |   |   | (90 | ) |
| Minining property option payment                       |   |   | -- |   |   |   | 1,000 |   |
| Acquisition of property and equipment                  |   |   | (189 | ) |   |   | (66 | ) |
| Proceeds from sale of property and equipment           |   |   | 118 |   |   |   | 5 |   |
| Net change in restricted investments                   |   |   | (20 | ) |   |   | 5,298 |   |
| NET CASH (USED IN) PROVIDED                            |   |   |   |   |   |   |   |   |
| BY INVESTING ACTIVITIES                                |   |   | (17,292 | ) |   |   | 14,473 |   |
|                                                   |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                            |   |
|----------------------------------------------|--------|
| CONDENSED STATEMENTS OF CASH FLOWS           |   |
| (Unaudited)                                  |   |
|                                         |   |   |   |   |   |   |
|                                         |   | (In thousands) |   |
|                                         |   | Three months ended March 31, |   |
|                                         |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:        |   |   |   |   |   |   |
| Issuance of common stock                     |   | $ | 219 |   |   | $ | -- |   |
| Repayments of debt                           |   |   | -- |   |   |   | (17,888 | ) |
| Stock buyback program                        |   |   | -- |   |   |   | (1,008 | ) |
| NET CASH PROVIDED BY (USED IN)               |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                         |   |   | 219 |   |   |   | (18,696 | ) |
| NET DECREASE IN CASH AND CASH EQUIVALENTS    |   |   | (14,053 | ) |   |   | (5,449 | ) |
| CASH AND CASH EQUIVALENTS                    |   |   |   |   |   |   |   |   |
|  AT BEGINNING OF PERIOD                 |   |   | 33,403 |   |   |   | 8,434 |   |
| CASH AND CASH EQUIVALENTS                    |   |   |   |   |   |   |   |   |
| AT END OF PERIOD                             |   | $ | 19,350 |   |   | $ | 2,985 |   |
|                                         |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES:                    |   |   |   |   |   |   |   |   |
| Interest paid                                |   | $ | 5 |   |   | $ | 19 |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |   |   |   |   |   |   |   |
| Unrealized gain                              |   | $ | 62 |   |   | $ | 454 |   |
| Acquisiton and development of oil and gas    |   |   |   |   |   |   |   |   |
| properties through accounts payable          |   | $ | 1,269 |   |   | $ | -- |   |
| Acquisiton and development of oil and gas    |   |   |   |   |   |   |   |   |
| through asset retirement obligation          |   | $ | 13 |   |   | $ | -- |   |
|                                         |   |   |   |   |   |   |   |   |

----

----

----

|                                |   | (In thousands) |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | March 31,      |   |   | December 31, |   |
|                                |   | 2010           |   |   | 2009 |   |
|  Oil and Gas properties        |   |           |   |   |   |   |
|  Unevaluated                   |   | $              | 4,273  |   |   | $ | 3,993 |   |
|  Well in progress              |   |           | 4,449  |   |   |   | 1,367 |   |
|  Evaluated                     |   |           | 30,797 |   |   |   | 24,595 |   |
|                                |   |           | 39,519 |   |   |   | 29,955 |   |
|  Less accumulated depreciation |   |           |   |   |   |   |   |   |
|  depletion and amortization    |   |           | (6,208 | ) |   |   | (3,953 | ) |
|  Net book value                |   |           | 33,311 |   |   |   | 26,002 |   |
|                                |   |           |   |   |   |   |   |   |
|  Mining properties             |   |           | 21,969 |   |   |   | 21,969 |   |
|                                |   |           |   |   |   |   |   |   |
|  Commercial real estate        |   |           | 24,622 |   |   |   | 24,600 |   |
|  Less Accumulated depreciation |   |           |   |   |   |   |   |   |
|  depletion and mortization     |   |           | (1,637 | ) |   |   | (1,400 | ) |
|  Net book value                |   |           | 22,985 |   |   |   | 23,200 |   |
|                                |   |           |   |   |   |   |   |   |
|  Building, land and equipment  |   |           | 14,112 |   |   |   | 14,196 |   |
|  Less accumulated depreciation |   |           |   |   |   |   |   |   |
|  depletion and amortization    |   |           | (4,803 | ) |   |   | (4,895 | ) |
|  Net book value                |   |           | 9,309  |   |   |   | 9,301 |   |
|  Totals                        |   | $              | 87,574 |   |   | $ | 80,472 |   |

----

----

|                                       |   | (In thousands) |   |
|--------------------------------------------|--------|----------------|--------|
|  Costs associated with Mount Emmons   |   |           |   |
|  at December 31, 2009                 |   | $              | 21,969 |   |
|  Development costs during the quarter |   |           |   |   |
|  ended March 31, 2010                 |   |           | --     |   |
|  Costs at March 31, 2010              |   | $              | 21,969 |   |
|                                       |   |           |   |   |

----

|                                  |   | (In thousands) |   |
|---------------------------------------|--------|----------------|--------|
|                                  |   | March 31,      |   |   | December 31, |   |
|                                  |   | 2010           |   |   | 2009 |   |
| Beginning asset retirement obligation |   | $              | 211    |   |   | $ | 144 |   |
| Accretion of discount                 |   |           | 4      |   |   |   | 12 |   |
| Liabilities incurred                  |   |           | 13     |   |   |   | 55 |   |
| Ending asset retirement obligation    |   | $              | 228    |   |   | $ | 211 |   |
|                                  |   |           |   |   |   |   |   |   |
| Mining properties                     |   | $              | 131    |   |   | $ | 128 |   |
| Oil and gas wells                     |   |           | 97     |   |   |   | 83 |   |
| Ending asset retirement obligation    |   | $              | 228    |   |   | $ | 211 |   |
|                                  |   |           |   |   |   |   |   |   |

----

| ·   | Level 1 — Unadjusted quoted prices is available in active markets for identical assets or liabilities. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 — Pricing inputs, other than quoted prices within Level 1, which are either directly or indirectly observable. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 — Pricing inputs that are unobservable requiring the Company of valuation methodologies that result in management’s best estimate of fair value. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | (In thousands) |   |
|---------------------------|--------|----------------|--------|
|                      |   |           |   |   | Fair Value Measurements at March 31, 2010 Using |   |
|                      |   | March 31,      |   |   | Quoted Prices in Active Markets for Identical Assets |   | Significant Other Observable Inputs |   | Significant Unobservable Inputs |   |
| Description               |   | 2010           |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |
| Other accrued liabilities |   | $              | 799    |   |   |   | -- |   |   |   | -- |   |   | $ | 799 |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                     |   | $              | 799    |   |   | $ | -- |   |   | $ | -- |   |   | $ | 799 |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |           |   |   |   | Fair Value Measurements at December 31, 2009 Using |   |
|                      |   | December 31,   |   |   | Quoted Prices in Active Markets for Identical Assets |   | Significant Other Observable Inputs |   | Significant Unobservable Inputs |   |
| Description               |   |           | 2009   |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other accrued liabilities |   | $              | 762    |   |   |   | -- |   |   |   | -- |   |   | $ | 762 |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                     |   | $              | 762    |   |   | $ | -- |   |   | $ | -- |   |   | $ | 762 |   |
|                      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                          |   | (In thousands) |   |
|-------------------------------|--------|----------------|--------|
|                          |   |           |   |   | Fair Value Measurements at March 31, 2010 Using |   |
|                          |   | March 31,      |   |   | Quoted Prices in Active Markets for Identical Assets |   | Significant Other Observable Inputs |   | Significant Unobservable Inputs |   |
| Description                   |   | 2010           |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |
| Held to maturity - treasuries |   | $              | 25,480 |   |   | $ | 25,480 |   |   | $ | -- |   |   | $ | -- |   |
| Available for sale securities |   |           | 855    |   |   |   | 855 |   |   |   | -- |   |   |   | -- |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                         |   | $              | 26,335 |   |   | $ | 26,335 |   |   | $ | -- |   |   | $ | -- |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |           |   |   |   | Fair Value Measurements at December 31, 2009 Using |   |
|                          |   | December 31,   |   |   | Quoted Prices in Active Markets for Identical Assets |   | Significant Other Observable Inputs |   | Significant Unobservable Inputs |   |
| Description                   |   |           | 2009   |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to maturity - treasuries |   | $              | 22,059 |   |   | $ | 22,059 |   |   | $ | -- |   |   | $ | -- |   |
| Available for sale securities |   |           | 1,178  |   |   |   | 1,178 |   |   |   | -- |   |   |   | -- |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                         |   | $              | 23,237 |   |   | $ | 23,237 |   |   | $ | -- |   |   | $ | -- |   |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |
|-------------------------------|--------|---------------------|--------|--------|----------------------|------------|--------|------------|--------|--------|------------|--------|------------|------------|--------|--------|------------|--------|
|                          |   | (In thousands)      |   |
| March 31, 2010                |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |
|                          |   | Less Than 12 Months |   |   | 12 Months or Greater |       |   | Total      |   |
|                          |   |                |   |   | Unrealized           |       |   |       |   |   | Unrealized |   |       |       |   |   | Unrealized |   |
| Description of Securities     |   | Fair Value          |   |   | Gain                 |       |   | Fair Value |   |   | Gain       |   |       | Fair Value |   |   | Gain       |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |
| Held to maturity - treasuries |   | $                   | 25,480 |   |                 | $          | --     |       |   | $      | --         |   |       | $          | --     |   |       | $      | 25,480 |   |   | $ | -- |   |
| Available for sale securities |   |                | 855    |   |                 |       | 279    |       |   |   | --         |   |       |       | --     |   |       |   | 855 |   |   |   | 279 |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |
| Total                         |   | $                   | 26,335 |   |                 | $          | 279    |       |   | $      | --         |   |       | $          | --     |   |       | $      | 26,335 |   |   | $ | 279 |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |
| December 31, 2009             |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |
|                          |   | Less Than 12 Months |   |   | 12 Months or Greater |       |   | Total      |   |
|                          |   |                |   |   |                 | Unrealized |   |       |   |   |       |   | Unrealized |       |   |   |       |   |   | Unrealized |   |
| Description of Securities     |   | Fair Value          |   |   | Gain                 |       |   | Fair Value |   |   | Gain       |   |       | Fair Value |   |   | Gain       |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |
| Held to maturity - treasuries |   | $                   | 22,059 |   |                 | $          | --     |       |   | $      | --         |   |       | $          | --     |   |       | $      | 22,059 |   |   | $ | -- |   |
| Available for sale securities |   |                | 1,178  |   |                 |       | 602    |       |   |   | --         |   |       |       | --     |   |       |   | 1,178 |   |   |   | 602 |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |
| Total                         |   | $                   | 23,237 |   |                 | $          | 602    |       |   | $      | --         |   |       | $          | --     |   |       | $      | 23,237 |   |   | $ | 602 |   |
|                          |   |                |   |   |                 |       |   |       |   |   |       |   |       |       |   |   |       |   |   |   |   |   |   |   |

|           |   | (In thousands) |   |
|----------------|--------|----------------|--------|
|           |   | March 31, 2010 |   |   | December 31, 2009 |   |
| Description    |   | Carry Amount   |   |   | Fair Value |   |   | Carry Amount |   |   | Fair Value |   |
|           |   |           |   |   |   |   |   |   |   |   |   |   |
| Long-term debt |   | $              | 800    |   |   | $ | 800 |   |   | $ | 800 |   |   | $ | 800 |   |

----

|                                       |   | (In thousands) |   |
|--------------------------------------------|--------|----------------|--------|
|                                       |   | March 31,      |   |   | December 31, |   |
|                                       |   | 2010           |   |   | 2009 |   |
|  Debt:                                |   |           |   |   |   |   |
|  Long-term Debt                       |   |           |   |   |   |   |
|  Real estate note - collateralized by |   |           |   |   |   |   |
|  property, interest at 6%             |   | $              | 800    |   |   | $ | 800 |   |
|                                       |   |           |   |   |   |   |   |   |
|  Less current portion                 |   |           | (200   | ) |   |   | (200 | ) |
|  Totals                               |   | $              | 600    |   |   | $ | 600 |   |
|                                       |   |           |   |   |   |   |   |   |
|                                       |   |           |   |   |   |   |   |   |

| (Amounts in thousands, except for shares)       |   |
|-------------------------------------------------|--------|
|                                            |   |   |   |   |   |   |   | Additional |   |
|                                            |   | Common Stock |   |   | Paid-In |   |
|                                            |   | Shares |   |   | Amount |   |   | Capital |   |
|  Balance December 31, 2009                 |   |   | 26,418,713 |   |   | $ | 264 |   |   | $ | 118,998 |   |
|  2001 stock compensation plan              |   |   | 20,000 |   |   |   | -- |   |   |   | 124 |   |
|  Exercise of employee stock options        |   |   | 20,033 |   |   |   | -- |   |   |   | 49 |   |
|  Exercise of stock warrants                |   |   | 43,912 |   |   |   | 1 |   |   |   | 169 |   |
|  Expense of employee options vesting       |   |   | -- |   |   |   | -- |   |   |   | 253 |   |
|  Stock options issued to outside directors |   |   | -- |   |   |   | -- |   |   |   | 14 |   |
|  Expense of company warrants issued        |   |   | -- |   |   |   | -- |   |   |   | 1 |   |
|  Balance March 31, 2010                    |   |   | 26,502,658 |   |   | $ | 265 |   |   | $ | 119,608 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |   | March 31, 2010         |      |
|-------------------------------------------------------------|--------|------------------------|-----------|
|                                                        |   | Employee Stock Options |      |   | Stock Purchase Warrants |   |
|                                                        |   |                   |      |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                        |   |                   |      |   | Average |   |   |   |   |   | Average |   |
|                                                        |   |                   |      |   | Exercise |   |   |   |   |   | Exercise |   |
|                                                        |   | Options                |      |   | Price |   |   | Warrants |   |   | Price |   |
| Outstanding at beginning                                    |   |                   |      |   |   |   |   |   |   |   |   |   |
| Outstanding balance at December 31, 2009                    |   |                   | 3,711,114 |   |   | $ | 3.64 |   |   |   | 581,367 |   |   | $ | 2.91 |   |
| Granted                                                     |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Forfeited                                                   |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Expired                                                     |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Exercised                                                   |   |                   | (20,233   | ) |   | $ | 2.52 |   |   |   | (43,912 | ) |   | $ | 3.86 |   |
| Outstanding at March 31, 2010                               |   |                   | 3,690,881 |   |   | $ | 3.64 |   |   |   | 537,455 |   |   | $ | 2.83 |   |
| Exercisable at March 31, 2010                               |   |                   | 2,895,886 |   |   | $ | 3.59 |   |   |   | 450,789 |   |   | $ | 2.89 |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Remaining Contractual Life - Years         |   |                   |      |   |   |   | 5.31 |   |   |   |   |   |   |   | 3.75 |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Aggregate intrinsic value of options / warrants outstanding |   |                   | $         | 8,556,000 |   |   |   |   |   |   | $ | 1,683,000 |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                 |   | (In thousands)       |   |
|--------------------------------------|--------|----------------------|--------|
|                                 |   | For the three months |   |
|                                 |   | ended March 31,      |   |
|                                 |   | 2010                 |   |   | 2009 |   |
| Revenues:                            |   |                 |   |   |   |   |
| Oil and gas                          |   | $                    | 6,824  |   |   | $ | 674 |   |
| Real estate                          |   |                 | 639    |   |   |   | 734 |   |
| Total revenues:                      |   |                 | 7,463  |   |   |   | 1,408 |   |
| Operating expenses:                  |   |                 |   |   |   |   |   |   |
| Oil and gas                          |   | $                    | 2,500  |   |   | $ | 812 |   |
| Impairment of oil and gas properties |   |                 | --     |   |   |   | 1,063 |   |
| Real estate                          |   |                 | 553    |   |   |   | 512 |   |
| Mineral properties                   |   |                 | 406    |   |   |   | 443 |   |
| Total operating expenses:            |   |                 | 3,459  |   |   |   | 2,830 |   |
| Interest expense                     |   |                 |   |   |   |   |   |   |
| Oil and gas                          |   | $                    | --     |   |   | $ | -- |   |
| Real estate                          |   |                 | --     |   |   |   | 19 |   |
| Mineral properties                   |   |                 | 12     |   |   |   | -- |   |
| Total interest expense:              |   |                 | 12     |   |   |   | 19 |   |
| Operating income/(loss)              |   |                 |   |   |   |   |   |   |
| Oil and gas                          |   | $                    | 4,324  |   |   | $ | (1,201 | ) |
| Real estate                          |   |                 | 86     |   |   |   | 203 |   |
| Mineral properties                   |   |                 | (418   | ) |   |   | (443 | ) |
| Operating income/(loss)              |   |                 | 3,992  |   |   |   | (1,441 | ) |
| Other revenues and expenses:         |   |                 | (1,535 | ) |   |   | (2,018 | ) |
| Income/(loss) before                 |   |                 |   |   |   |   |   |   |
| income taxes                         |   | $                    | 2,457  |   |   | $ | (3,459 | ) |
| Depreciation expense:                |   |                 |   |   |   |   |   |   |
| Oil and gas                          |   | $                    | 2,255  |   |   | $ | 713 |   |
| Real estate                          |   |                 | 265    |   |   |   | 232 |   |
| Mineral properties                   |   |                 | 18     |   |   |   | 15 |   |
| Corporate                            |   |                 | 96     |   |   |   | 129 |   |
| Total depreciation expense           |   | $                    | 2,634  |   |   | $ | 1,089 |   |
|                                 |   |                 |   |   |   |   |   |   |

----

|                   |   | (In thousands) |    |
|------------------------|--------|----------------|---------|
|                   |   | March 31,      |    |   | December 31, |   |
|                   |   | 2010           |    |   | 2009 |   |
| Assets by segment      |   |           |    |   |   |   |
| Oil and Gas properties |   | $              | 37,521  |   |   | $ | 30,016 |   |
| Real estate            |   |           | 23,250  |   |   |   | 23,450 |   |
| Mineral properties     |   |           | 21,998  |   |   |   | 21,998 |   |
| Corporate assets       |   |           | 61,332  |   |   |   | 71,259 |   |
| Total assets           |   | $              | 144,101 |   |   | $ | 146,723 |   |
|                   |   |           |    |   |   |   |   |   |

----

----

| ·  | Operations provided $3.0 million, Investing Activities consumed $17.3 million and Financing Activities provided $219,000 for a net decrease in cash of $14.1 million during the three months ended March 31, 2010.   During the three months ended March 31, 2009, Operations consumed $1.2 million, Investing Activities provided $14.5 million and Financing activities consumed $18.7 million. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investing activities consumed cash through the acquisition and development of oil and gas properties, $13.8 million, net investment in treasury investments, $3.4 million, acquisition of property and equipment, $189,000, and $20,000 in net change in restricted investments |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cash was provided by investing activities as a result of the Company’s sale of a commercial office property, $118,000. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company received $219,000 for the issuance of shares related to the exercise of employee options and warrants to third party consultants. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                     |   | (In thousands) |   |
|------------------------------------------|--------|----------------|--------|
|                                     |   | Quarter Ending |   |
|                                     |   | March 31, 2010 |   |   | March 31, 2009 |   |
|                                     |   |           |   |   |   |   |
| Revenues                                 |   | $              | 7,463  |   |   | $ | 1,408 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating expenses                       |   |           | 3,493  |   |   |   | 2,683 |   |
| Depreciation, depletion and amortization |   |           | 2,634  |   |   |   | 1,089 |   |
| Impairment                               |   |           | -      |   |   |   | 1,063 |   |
|                                     |   |           | 6,127  |   |   |   | 4,835 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating income (loss)                  |   | $              | 1,336  |   |   | $ | (3,427 | ) |
|                                     |   |           |   |   |   |   |   |   |

|                                     |   | (In thousands) |   |
|------------------------------------------|--------|----------------|--------|
|                                     |   | Quarter Ending |   |
|                                     |   | March 31, 2010 |   |   | March 31, 2009 |   |
| Oil & Gas                            |   |           |   |   |   |   |
| Revenues                                 |   | $              | 6,824  |   |   | $ | 674 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating expenses                       |   |           | 245    |   |   |   | 99 |   |
| Depreciation, depletion and amortization |   |           | 2,255  |   |   |   | 713 |   |
| Impairment                               |   |           | -      |   |   |   | 1,063 |   |
|                                     |   |           | 2,500  |   |   |   | 1,875 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating income (loss)                  |   | $              | 4,324  |   |   | $ | (1,201 | ) |
|                                     |   |           |   |   |   |   |   |   |

----

|                              |   |               |    |   |     |   |    | 2010 Period Compared to 2009 Period |   |
|-----------------------------------|--------|--------------------|---------|--------|----------|--------|---------|-------------------------------------|--------|
|                              |   | Three Months Ended |    |   |     |   |    | %                                   |   |
|                              |   | March 31,          |    |   | Increase |   |    | Increase                            |   |
|                              |   | 2010               |    |   | 2009     |   |    | (Decrease)                          |   |   | (Decrease) |   |
| Production volumes                |   |               |    |   |     |   |    |                                |   |   |   |   |
| Oil and condensate (Bbls)         |   |               | 88,326  |   |     |   | 3,618   |                                |   |   | 84,708 |   |   |   | 2341 | % |
| Natural gas (Mcf)                 |   |               | 166,402 |   |     |   | 119,259 |                                |   |   | 47,143 |   |   |   | 40 | % |
| Average sales prices              |   |               |    |   |     |   |    |                                |   |   |   |   |   |   |   |   |
| Oil and condensate (per Bbl)      |   | $                  | 65.62   |   |     | $      | 38.15   |                                |   | $ | 27.47 |   |   |   | 72 | % |
| Natural gas (per Mcf)             |   |               | 6.18    |   |     |   | 4.94    |                                |   |   | 1.24 |   |   |   | 25 | % |
| Operating revenues (in thousands) |   |               |    |   |     |   |    |                                |   |   |   |   |   |   |   |   |
| Oil and condensate                |   | $                  | 5,796   |   |     | $      | 121     |                                |   | $ | 5,675 |   |   |   | 4690 | % |
| Natural gas                       |   |               | 1,028   |   |     |   | 553     |                                |   |   | 475 |   |   |   | 86 | % |
| Total operating revenue           |   |               | 6,824   |   |     |   | 674     |                                |   |   | 6,150 |   |   |   | 912 | % |
| Lease operating expense           |   |               | (245    | )      |     |   | (99     | )                                   |   |   | (146 | ) |   |   | 147 | % |
| Impairment                        |   |               | --      |   |     |   | (1,063  | )                                   |   |   | 1,063 |   |   |   | -100 | % |
| Income before DD&A            |   |               | 6,579   |   |     |   | (488    | )                                   |   |   | 7,067 |   |   |   | 1448 | % |
| DD&A                          |   |               | (2,255  | )      |     |   | (713    | )                                   |   |   | 1,542 |   |   |   | 216 | % |
| Income (loss)                     |   | $                  | 4,324   |   |     | $      | (1,201  | )                                   |   | $ | 5,525 |   |   |   | 460 | % |
|                              |   |               |    |   |     |   |    |                                |   |   |   |   |   |   |   |   |

----

|                                     |   | (In thousands) |   |
|------------------------------------------|--------|----------------|--------|
|                                     |   | Quarter Ending |   |
|                                     |   | March 31, 2010 |   |   | March 31, 2009 |   |
| Real Estate                              |   |           |   |   |   |   |
| Revenues                                 |   | $              | 639    |   |   | $ | 734 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating expenses                       |   |           | 288    |   |   |   | 280 |   |
| Interest expense                         |   |           | -      |   |   |   | 19 |   |
| Depreciation, depletion and amortization |   |           | 265    |   |   |   | 232 |   |
|                                     |   |           | 553    |   |   |   | 531 |   |
|                                     |   |           |   |   |   |   |   |   |
| Operating income                         |   | $              | 86     |   |   | $ | 203 |   |
|                                     |   |           |   |   |   |   |   |   |

| ·   | $314,000 accrual of a 2010 year-end bonus to all employees of the Company which is subject to meeting corporate and personal goals, meeting annual budget goals, increased share price and cash flow from operations.  Under the Performance Compensation Plan (“PCP”) adopted by the board of directors, employees can earn from 33% to 100% of their base compensation as bonuses if the terms of the PCP are met.  The PCP was proposed by the Company’s Compensation Committee and adopted by the full Board in April 2009.  Details of the PCP are disclosed in the Company’s annual proxy statement for the annual meeting to be held in June of 2010.  Any bonus earned for 2010 performance will be paid during the first quarter of 2011.  The PCP is being reevaluated by the Board of Directors and is subject to change.  Any change to the PCP may affect the accrued amounts; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $184,000 noncash increase in stock compensation expense.  The increase is primarily due to shares issued officers of the Company pursuant to the 2001 Stock Compensation Plan being issued at a higher price than those issued in the first quarter of 2009; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | $118,000 increase in professional services.  This increase is primarily due to professional services fees related to our participation in the Williston Basin wells with Brigham. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Contractual Obligations           |   |
|-----------------------------------|--------|
| March 31, 2010                    |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | (In thousands) |   |
|                              |   | Payments due by period |   |
|                              |   |   |   |   | Less |   |   | One to |   |   | Three to |   |   | More than |   |
|                              |   |   |   |   | than one |   |   | Three |   |   | Five |   |   | Five |   |
|                              |   | Total |   |   | Year |   |   | Years |   |   | Years |   |   | Years |   |
|  Long-term debt obligations  |   | $ | 800 |   |   | $ | 200 |   |   | $ | 600 |   |   | $ | -- |   |   | $ | -- |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Executive retirement        |   | $ | 951 |   |   |   | 153 |   |   |   | 130 |   |   |   | -- |   |   |   | 668 |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Asset retirement obligation |   | $ | 228 |   |   |   | -- |   |   |   | -- |   |   |   | 26 |   |   |   | 202 |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Totals                      |   | $ | 1,979 |   |   | $ | 353 |   |   | $ | 730 |   |   | $ | 26 |   |   | $ | 870 |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| i.   | That the Company’s disclosure controls and procedures are designed to ensure (a) that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and (b) that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | That the Company’s disclosure controls and procedures are effective. |
|-----------------|----------------------------------------------------------------------------|

----

----

----

|   | (a)    | Exhibits                                                                                                                                                        |                                                                                                                                                                |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 31.1                                                                                                                                                            | Certification of Chief Executive Officer Pursuant to Rule 13a-15(e) / Rule 15d-15(e)                                                                                |
|   |   | 31.2                                                                                                                                                            | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) / Rule 15(e)/15d-15(e)                                                                          |
|   |   | 32.1                                                                                                                                                            | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002                            |
|   |   | 32.2                                                                                                                                                            | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002                            |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   | (b)    | Reports on Form 8-K.  The Company filed six reports on Form 8-K for the quarter ended March 31, 2010.  The events reported were as follows: |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 1.                                                                                                                                                              | The report filed on January 6, 2010, under Item 7.01 referenced the announcement of the initial production rate from its State 36-1 #1H well.                       |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 2.                                                                                                                                                              | The report filed on January 6, 2010, under Item 7.01 referenced the $1 million option payment by Thompson Creek Metals Company.                                     |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 3.                                                                                                                                                              | The report filed on January 21, 2010, under Item 7.01 referenced the announcement to participate in the third group of five wells with Brigham Exploration Company. |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 4.                                                                                                                                                              | The report filed on January 26, 2010, under Item 7.01 referenced the announcement to participate in two Gulf Coast prospects.                                       |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 5.                                                                                                                                                              | The report filed on March 16, 2010, under Item 7.01 referenced the highlights and financial results for the year ended December 31, 2009.                           |
|   |   |                                                                                                                                                            |                                                                                                                                                                |
|   |   | 6.                                                                                                                                                              | The report filed on March 31, 2010, under Item 7.01 referenced the announcement of the presentation at the Capital Conference in Southern California.               |

----

|                    |   | U.S. ENERGY CORP. |
|-------------------------|--------|-------------------|
|                    |   | (Registrant)      |
|                    |   |              |
|                    |   |              |
|                    |   |              |
| Date: May 10, 2010 |   | By:               | /s/ Keith G. Larsen |
|                    |   |              | KEITH G. LARSEN, |
|                    |   |              | Chairman and CEO |
|                    |   |              |   |
|                    |   |              |   |
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| Date: May 10, 2010      |   | By:               | /s/ Robert Scott Lorimer |
|                    |   |              | ROBERT SCOTT LORIMER |
|                    |   |              | Principal Financial Officer and |
|                    |   |              | Chief Accounting Officer |

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