----

| x      | Quarterly      report pursuant to section 13 or 15(d) of the Securities Exchange Act of      1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   | For      the quarter ended March 31, 2008 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 Company as Specified in itsCharter) |

| 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)          |
|                                                  |   |                     |
| Company's      telephone number, including area code: |   | (307)      856-9271      |

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

----

| Class                             |   | Outstanding      Shares at May 9, 2008 |
|-----------------------------------|--------|----------------------------------------|
| Common      stock, $.01 par value |   | 23,658,196                             |

----

|          |                                                                                                                     | Page      No.     |
|---------------|--------------------------------------------------------------------------------------------------------------------------|-------------------|
| PART      I.  | FINANCIAL      INFORMATION                                                                                               |              |
|          |                                                                                                                     |              |
| ITEM      1.  | Financial      Statements                                                                                                |              |
|          |                                                                                                                     |              |
|          | Condensed      Consolidated Balance Sheets March 31, 2008      and  December  31, 2007 (unaudited)   | 4-5               |
|          |                                                                                                                     |              |
|          | Condensed      Consolidated Statements of Operations for the Three months Ended March 31,      2008 and 2007 (unaudited) | 6                 |
|          |                                                                                                                     |              |
|          | Condensed      Consolidated Statements of Cash Flows Three Months Ended March 31, 2008      and 2007 (unaudited)         | 7-8               |
|          |                                                                                                                     |              |
|          | Notes      to Condensed Consolidated Financial Statements (unaudited)                                                    | 9-20              |
|          |                                                                                                                     |              |
| ITEM      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                    | 21-30             |
|          |                                                                                                                     |              |
| ITEM      3.  | Quantitative      and Qualitative Disclosures about Market Risk                                                          | 30                |
|          |                                                                                                                     |              |
| ITEM      4.  | Controls      and Procedures                                                                                             | 30-31             |
|          |                                                                                                                     |              |
| PART      II. | OTHER      INFORMATION                                                                                                   |              |
|          |                                                                                                                     |              |
| ITEM      1.  | Legal      Proceedings                                                                                                   | 32-33             |
|          |                                                                                                                     |              |
| ITEM      1A. | Risk      Factors                                                                                                        | 34                |
|          |                                                                                                                     |              |
| ITEM      2.  | Changes      in Securities and Use of Proceeds                                                                           | 34                |
|          |                                                                                                                     |              |
| ITEM      3.  | Defaults      Upon Senior Securities                                                                                     | 35                |
|          |                                                                                                                     |              |
| ITEM      4.  | Submission      of Matters to a Vote of Shareholders                                                                     | 35                |
|          |                                                                                                                     |              |
| ITEM      5.  | Other      Information                                                                                                   | 35                |
|          |                                                                                                                     |              |
| ITEM      6.  | Exhibits      and Reports on Form 8-K                                                                                    | 36                |
|          |                                                                                                                     |              |
|          | Signatures                                                                                                               | 37                |
|          |                                                                                                                     |              |
|          | Certifications                                                                                                           | See      Exhibits |

----

| U.S.      ENERGY CORP. AND SUBSIDIARIES        |   |
|------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS     |   |
| ASSETS                                         |   |
| (Unaudited)                                    |   |
|                                           |   |   |   |   |   |   |
|                                           |   | March      31, |   |   | December      31, |   |
|                                           |   | 2008 |   |   | 2007 |   |
| CURRENT      ASSETS:                           |   |   |   |   |   |   |
| Cash      and cash equivalents                 |   | $ | 48,806,700 |   |   | $ | 72,292,200 |   |
| Marketable      securities                     |   |   |   |   |   |   |   |   |
| Held      to maturity - treasury bills         |   |   | 24,886,000 |   |   |   | -- |   |
| Available      for sale securities             |   |   | 252,100 |   |   |   | 480,200 |   |
| Accounts      receivable                       |   |   |   |   |   |   |   |   |
| Trade                                          |   |   | 49,100 |   |   |   | 171,700 |   |
| Reimbursable      project costs                |   |   | 698,300 |   |   |   | 782,100 |   |
| Dissolution      of subsidiaries               |   |   | -- |   |   |   | 197,600 |   |
| Income      taxes                              |   |   | 749,600 |   |   |   | 902,900 |   |
| Restricted      investments                    |   |   | 4,830,900 |   |   |   | 6,624,700 |   |
| Assets      held for sale                      |   |   | 1,112,600 |   |   |   | 1,112,600 |   |
| Deferred      tax assets                       |   |   | 248,000 |   |   |   | 59,700 |   |
| Prepaid      expenses and other current assets |   |   | 204,700 |   |   |   | 105,200 |   |
| Total      current assets                      |   |   | 81,838,000 |   |   |   | 82,728,900 |   |
|                                           |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |
| PROPERTIES      AND EQUIPMENT:                 |   |   | 57,344,200 |   |   |   | 52,785,200 |   |
| Less      accumulated depreciation,            |   |   |   |   |   |   |   |   |
| depletion      and amortization                |   |   | (4,876,400 | ) |   |   | (4,691,700 | ) |
| Net      properties and equipment              |   |   | 52,467,800 |   |   |   | 48,093,500 |   |
|                                           |   |   |   |   |   |   |   |   |
| OTHER      ASSETS:                             |   |   |   |   |   |   |   |   |
| Restricted      investments                    |   |   | 376,900 |   |   |   | 375,500 |   |
| Deposits      and other                        |   |   | 656,600 |   |   |   | 206,500 |   |
| Total      other assets                        |   |   | 1,033,500 |   |   |   | 582,000 |   |
| Total      assets                              |   | $ | 135,339,300 |   |   | $ | 131,404,400 |   |
|                                           |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP. AND SUBSIDIARIES                  |   |
|----------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS               |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                |   |
| (Unaudited)                                              |   |
|                                                     |   |   |   |   |   |   |
|                                                     |   | March      31, |   |   | December      31, |   |
|                                                     |   | 2008 |   |   | 2007 |   |
| CURRENT      LIABILITIES:                                |   |   |   |   |   |   |
| Accounts      payable                                    |   | $ | 499,200 |   |   | $ | 1,589,600 |   |
| Accrued      compensation expense                        |   |   | 736,300 |   |   |   | 275,200 |   |
| Current      portion of long-term debt                   |   |   | 10,349,900 |   |   |   | 5,560,900 |   |
| Other      current liabilities                           |   |   | 859,100 |   |   |   | 667,500 |   |
| Total      current liabilities                           |   |   | 12,444,500 |   |   |   | 8,093,200 |   |
|                                                     |   |   |   |   |   |   |   |   |
| LONG-TERM      DEBT, net of current portion              |   |   | 171,200 |   |   |   | 190,500 |   |
|                                                     |   |   |   |   |   |   |   |   |
| DEFERRED      TAX LIABILITY                              |   |   | 7,048,400 |   |   |   | 6,928,800 |   |
|                                                     |   |   |   |   |   |   |   |   |
| ASSET      RETIREMENT OBLIGATIONS                        |   |   | 135,600 |   |   |   | 133,400 |   |
|                                                     |   |   |   |   |   |   |   |   |
| OTHER      ACCRUED LIABILITIES                           |   |   | 1,252,000 |   |   |   | 958,600 |   |
|                                                     |   |   |   |   |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES SHAREHOLDERS' EQUITY: |   |   |   |   |
| Preferred      stock, $.01 par value; 100,000 shares     |   |   |   |   |   |   |   |   |
| authorized      no shares issued or outstanding          |   |   | -- |   |   |   | -- |   |
|                                                     |   |   |   |   |   |   |   |   |
| Common      stock, $.01 par value; unlimited shares      |   |   |   |   |   |   |   |   |
| authorized;      23,814,570 and 23,592,493               |   |   |   |   |   |   |   |   |
| shares      issued, respectively                         |   |   | 238,100 |   |   |   | 235,900 |   |
| Additional      paid-in capital                          |   |   | 97,557,900 |   |   |   | 96,560,100 |   |
| Accumulated      surplus                                 |   |   | 17,334,300 |   |   |   | 19,050,900 |   |
| Unrealized      loss on marketable securities            |   |   | (352,200 | ) |   |   | (256,500 | ) |
| Unallocated      ESOP contribution                       |   |   | (490,500 | ) |   |   | (490,500 | ) |
| Total      shareholders' equity                          |   |   | 114,287,600 |   |   |   | 115,099,900 |   |
| Total      liabilities and shareholders' equity          |   | $ | 135,339,300 |   |   | $ | 131,404,400 |   |
|                                                     |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP. AND SUBSIDIARIES              |   |
|------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS |   |
| (Unaudited)                                          |   |
|                                                 |   | For      the three months ended March 31, |   |
|                                                 |   | 2008 |   |   | 2007 |   |
| OPERATING      REVENUES:                             |   |   |   |   |   |   |
| Remington      Village real estate                   |   | $ | 87,400 |   |   | $ | -- |   |
| Other      real estate                               |   |   | 39,100 |   |   |   | 33,000 |   |
| Management      fees and other                       |   |   | 24,600 |   |   |   | 39,000 |   |
|                                                 |   |   | 151,100 |   |   |   | 72,000 |   |
|                                                 |   |   |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                   |   |   |   |   |   |   |   |   |
| Remington      Village real estate                   |   |   | 91,000 |   |   |   | -- |   |
| Other      real estate                               |   |   | 77,200 |   |   |   | 165,900 |   |
| Mineral      holding costs                           |   |   | 233,500 |   |   |   | 796,700 |   |
| General      and administrative                      |   |   | 2,692,000 |   |   |   | 1,705,600 |   |
|                                                 |   |   | 3,093,700 |   |   |   | 2,668,200 |   |
|                                                 |   |   |   |   |   |   |   |   |
| LOSS      BEFORE INVESTMENT AND                      |   |   |   |   |   |   |   |   |
| PROPERTY      TRANSACTIONS                           |   |   | (2,942,600 | ) |   |   | (2,596,200 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| OTHER      INCOME & (EXPENSES):                  |   |   |   |   |   |   |   |   |
| (Loss)      gain on sales of assets                  |   |   | -- |   |   |   | 1,000 |   |
| Gain      on sale of marketable securities           |   |   | 16,200 |   |   |   | 737,400 |   |
| Dividends                                            |   |   | -- |   |   |   | 2,900 |   |
| Interest      income                                 |   |   | 553,600 |   |   |   | 226,000 |   |
| Interest      expense                                |   |   | (17,500 | ) |   |   | (55,800 | ) |
|                                                 |   |   | 552,300 |   |   |   | 911,500 |   |
|                                                 |   |   |   |   |   |   |   |   |
| LOSS      BEFORE MINORITY INTEREST AND               |   |   |   |   |   |   |   |   |
| PROVISION      FOR INCOME TAXES                      |   |   | (2,390,300 | ) |   |   | (1,684,700 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| MINORITY      INTEREST IN LOSS OF                    |   |   |   |   |   |   |   |   |
| CONSOLIDATED      SUBSIDIARIES                       |   |   | -- |   |   |   | 18,200 |   |
|                                                 |   |   |   |   |   |   |   |   |
| LOSS      BEFORE PROVISION                           |   |   |   |   |   |   |   |   |
| FOR      INCOME TAXES                                |   |   | (2,390,300 | ) |   |   | (1,666,500 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| INCOME      TAXES:                                   |   |   |   |   |   |   |   |   |
|  Current      benefit from                      |   |   | 628,000 |   |   |   | 348,300 |   |
|  Deferred      benefit from                     |   |   | 45,700 |   |   |   | -- |   |
|                                                 |   |   | 673,700 |   |   |   | 348,300 |   |
|                                                 |   |   |   |   |   |   |   |   |
| NET      LOSS                                        |   | $ | (1,716,600 | ) |   | $ | (1,318,200 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| PER      SHARE DATA                                  |   |   |   |   |   |   |   |   |
| Basic      and diluted loss per share                |   | $ | (0.07 | ) |   | $ | (0.07 | ) |
|                                                 |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED WEIGHTED                      |   |   |   |   |   |   |   |   |
| AVERAGE      SHARES OUTSTANDING                      |   |   | 23,749,056 |   |   |   | 19,413,931 |   |
|                                                 |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP. AND SUBSIDIARIES                |   |
|--------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS             |   |
| (Unaudited)                                            |   |
|                                                   |   |   |   |   |   |   |
|                                                   |   | For      the three months ended March 31, |   |
|                                                   |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:             |   |   |   |   |   |   |
| Net      loss                                          |   | $ | (1,716,600 | ) |   | $ | (1,318,200 | ) |
| Reconcile      net loss to net cash used in operations |   |   |   |   |   |   |   |   |
| Minority      interest in the loss of                  |   |   |   |   |   |   |   |   |
| consolidated      subsidiaries                         |   |   | -- |   |   |   | (18,200 | ) |
| Depreciation                                           |   |   | 184,800 |   |   |   | 120,300 |   |
| Accretion      of asset retirement obligations         |   |   | 2,200 |   |   |   | 2,100 |   |
| Income      tax payable                                |   |   | 153,300 |   |   |   | -- |   |
| Deferred      income taxes                             |   |   | (45,700 | ) |   |   | (348,300 | ) |
| Gain      on sale of assets                            |   |   | -- |   |   |   | (1,000 | ) |
| Gain      on sales of marketable securities            |   |   | (16,200 | ) |   |   | (737,300 | ) |
| Noncash      compensation                              |   |   | 1,161,200 |   |   |   | 128,400 |   |
| Net      changes in assets and liabilities:            |   |   | (492,400 | ) |   |   | (1,464,200 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| NET      CASH USED IN OPERATING ACTIVITIES             |   |   | (769,400 | ) |   |   | (3,636,400 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:             |   |   |   |   |   |   |   |   |
| Proceeds      from sale of marketable securities       |   | $ | 124,600 |   |   | $ | 1,452,400 |   |
| Proceeds      from sale of property and equipment      |   |   | -- |   |   |   | 1,000 |   |
| Acquisition      & development of real estate      |   |   | (4,913,600 | ) |   |   | -- |   |
| Acquisition      of unproved oil & gas properties  |   |   | (82,200 | ) |   |   | -- |   |
| Acquisition      of unproved mining claims             |   |   | (10,900 | ) |   |   | (253,300 | ) |
| Acquisition      of property and equipment             |   |   | (4,600 | ) |   |   | (51,700 | ) |
| Investment      in marketable securities               |   |   | (24,886,000 | ) |   |   | -- |   |
| Net      change in restricted investments              |   |   | 1,792,400 |   |   |   | (52,900 | ) |
| Net      change in notes receivable                    |   |   | -- |   |   |   | 560,900 |   |
| Net      change in investments in affiliates           |   |   | -- |   |   |   | 34,700 |   |
| NET      CASH (USED IN)                                |   |   |   |   |   |   |   |   |
| BY      INVESTING ACTIVITIES                           |   |   | (27,980,300 | ) |   |   | 1,691,100 |   |
|                                                   |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP. AND SUBSIDIARIES             |   |
|-----------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS          |   |
| (Unaudited)                                         |   |
|                                                |   |   |   |   |   |   |
|                                                |   | For      the three months ended March 31, |   |
|                                                |   | 2008 |   |   | 2007 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:          |   |   |   |   |   |   |
| Issuance      of common stock                       |   |   | 1,527,500 |   |   |   | 393,100 |   |
| Proceeds      from long term debt                   |   |   | 4,765,800 |   |   |   | 164,100 |   |
| Repayments      of long term debt                   |   |   | (30,900 | ) |   |   | (183,100 | ) |
| Purchase      of treasury stock                     |   |   | (998,200 | ) |   |   | -- |   |
| NET      CASH PROVIDED BY                           |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                           |   |   | 5,264,200 |   |   |   | 374,100 |   |
|                                                |   |   |   |   |   |   |   |   |
| NET DECREASE      IN                           |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   | (23,485,500 | )  |   |   | (1,571,200 | ) |
|                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
|  AT      BEGINNING OF PERIOD                   |   |   | 72,292,200 |   |   |   | 16,973,500 |   |
|                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
| AT      END OF PERIOD                               |   | $ | 48,806,700 |   |   | $ | 15,402,300 |   |
|                                                |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES:                      |   |   |   |   |   |   |   |   |
| Income      tax paid                                |   | $ | -- |   |   | $ | -- |   |
|                                                |   |   |   |   |   |   |   |   |
| Interest      paid                                  |   | $ | 17,500 |   |   | $ | 55,800 |   |
|                                                |   |   |   |   |   |   |   |   |
| NON-CASH      INVESTING AND FINANCING ACTIVITIES:   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |
| Development      of assets through issuance of debt |   | $ | 34,800 |   |   | $ | -- |   |
|                                                |   |   |   |   |   |   |   |   |
| Issuance      of subsidiary stock to acquire        |   |   |   |   |   |   |   |   |
| mining      claims                                  |   | $ | -- |   |   | $ | 33,700 |   |
|                                                |   |   |   |   |   |   |   |   |
| Unrealized      loss/gain                           |   | $ | 95,700 |   |   | $ | -- |   |
|                                                |   |   |   |   |   |   |   |   |

----

----

----

|                                     |   |   |       |   | Accumulated        |   |       |            |   |
|------------------------------------------|--------|--------|------------|--------|--------------------|--------|------------|-----------------|--------|
|                                     |   |   |       |   | Amortization       |   |       |            |   |
|                                     |   |   |       |   | Depletion      and |   |       | Net             |   |
|                                     |   | Cost   |       |   | Depreciation       |   |       | Book      Value |   |
|                                     |   |   |       |   |               |   |       |            |   |
|  Oil      & Gas properties      |   | $      | 2,992,400  |   |               | $      | -          |            |   | $ | 2,992,400 |   |
|  Mining      properties             |   |   | 21,417,700 |   |               |   | -          |            |   |   | 21,417,700 |   |
|  Buildings,      land and equipment |   |   | 32,934,100 |   |               |   | (4,876,400 | )               |   |   | 28,057,700 |   |
|  Totals                             |   | $      | 57,344,200 |   |               | $      | (4,876,400 | )               |   | $ | 52,467,800 |   |
|                                     |   |   |       |   |               |   |       |            |   |   |   |   |

----

| Machinery      and equipment    |                                            |
|---------------------------------|-------------------------------------------------|
|                            | Office      Equipment                           | 3      to 5 years |
|                            | Aircraft                                        | 10      years |
|                            | Field      Tools and Hand Equipment             | 5      to 7 years |
|                            | Vehicles      and Trucks                        | 3      to 7 years |
|                            | Heavy      Equipment                            | 7      to 10 years |
| Buildings      and improvements |                                            |
|                            | Service      BuildingsMulti-Family      Housing | 20      years25      years |
|                            | Corporate      Headquarters' Building           | 45      years |

|                                                |   | For      the three months ending March 31, |       |
|-----------------------------------------------------|--------|--------------------------------------------|------------|
|                                                |   | 2008                                       |       |   | 2007 |   |
| Net      loss                                       |   | $                                          | (1,716,600 | ) |   | $ | (1,318,200 | ) |
|                                                |   |                                       |       |   |   |   |   |   |
| Other      comprehensive loss from the              |   |                                       |       |   |   |   |   |   |
| unrealized      loss on marketable securities       |   |                                       | (282,200   | ) |   |   | -- |   |
|                                                |   |                                       |       |   |   |   |   |   |
| Deferred      income taxes on marketable securities |   |                                       | 186,500    |   |   |   | -- |   |
|                                                |   |                                       |       |   |   |   |   |   |
| Comprehensive      loss                             |   | $                                          | (1,812,300 | ) |   | $ | (1,318,200 | ) |
|                                                |   |                                       |       |   |   |   |   |   |

----

|                                                                     |   | Three      Months   |       |   | Year                   |   |
|--------------------------------------------------------------------------|--------|---------------------|------------|--------|------------------------|--------|
|                                                                     |   | Ended               |       |   | Ended                  |   |
|                                                                     |   | March      31, 2008 |       |   | December      31, 2007 |   |
| Consolidated      book income before income tax                          |   | $                   | (2,390,200 | )      |                   | $      | 88,730,000 |   |
| Minority      loss from non consolidated tax subsidiary                  |   |                | -          |   |                   |   | 3,551,400 |   |
| Add      back losses from non consolidated tax subsidiaries              |   |                | 156,600    |   |                   |   | 2,009,700 |   |
| Prior      year true-up and rate change                                  |   |                | -          |   |                   |   | (265,100 | ) |
| Permanent      differences                                               |   |                | 308,700    |   |                   |   | (2,549,300 | ) |
| Taxable      income before temporary differences                         |   | $                   | (1,924,900 | )      |                   | $      | 91,476,700 |   |
|                                                                     |   |                |       |   |                   |   |   |   |
| Expected      federal income tax expense (benefit)35%                    |   | $                   | (673,600   | )      |                   | $      | 32,016,800 |   |
|                                                                     |   |                |       |   |                   |   |   |   |
| Federal      deferred income tax expense (benefit)                       |   |                | (45,700    | )      |                   |   | 14,777,600 |   |
| Federal      current expense (benefit)                                   |   |                | (628,000   | )      |                   |   | 17,239,200 |   |
| Total      federal income tax expense (benefit)                          |   |                | (673,700   | )      |                   |   | 32,016,800 |   |
| Current      state income tax expense net of                             |   |                |       |   |                   |   |   |   |
| federal      tax benefit                                                 |   |                | -          |   |                   |   | 350,000 |   |
|        Total      provision (benefit) |   | $                   | (673,700   | )      |                   | $      | 32,366,800 |   |
|                                                                     |   |                |       |   |                   |   |   |   |

|                                                         |   | March      31, |       |   | December      31, |   |
|--------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                         |   | 2008           |       |   | 2007              |   |
|                                                         |   |           |       |   |              |   |
| Current      deferred tax assets:                            |   |           |       |   |              |   |
| Tax      basis in excess of book                             |   | $              | 186,500    |   |              | $      | - |   |
| Non-deductible      reserves and other                       |   |           | 61,500     |   |              |   | 59,700 |   |
| Total      net current deferred tax assets/(liabilities)     |   | $              | 248,000    |   |              | $      | 59,700 |   |
|                                                         |   |           |       |   |              |   |   |   |
| Non-current      deferred tax assets:                        |   |           |       |   |              |   |   |   |
| Deferred      compensation                                   |   | $              | 590,900    |   |              | $      | 436,300 |   |
| Accrued      reclamation                                     |   |           | 39,300     |   |              |   | 38,500 |   |
| Tax      basis in excess of book                             |   |           | -          |   |              |   | 200,400 |   |
| Total      noncurrent deferred tax assets                    |   |           | 630,200    |   |              |   | 675,200 |   |
|                                                         |   |           |       |   |              |   |   |   |
| Non-current      deferred tax liabilities:                   |   |           |       |   |              |   |   |   |
| Book      basis in excess of tax basis                       |   |           | (7,678,600 | )      |              |   | (7,604,000 | ) |
| Total      deferred tax liabilities                          |   |           | (7,678,600 | )      |              |   | (7,604,000 | ) |
|                                                         |   |           |       |   |              |   |   |   |
| Total      net non-current deferred tax assets/(liabilities) |   | $              | (7,048,400 | )      |              | $      | (6,928,800 | ) |
|                                                         |   |           |       |   |              |   |   |   |

----

----

| Current      portion of long term debt |   | $      | 10,349,900 |   |
|----------------------------------------|--------|--------|------------|--------|
| Long      term portion of debt         |   |   | 171,200    |   |
|                                   |   | $      | 10,521,100 |   |
|                                   |   |   |       |   |

|                    |   | For      the three months ending March 31, |    |
|-------------------------|--------|--------------------------------------------|---------|
|                    |   | 2008                                       |    |   | 2007 |   |
| Balance      January 1, |   | $                                          | 133,400 |   |   | $ | 124,400 |   |
| Accretion      Expense  |   |                                       | 2,200   |   |   |   | 2,100 |   |
| Balance      March 31,  |   | $                                          | 135,600 |   |   | $ | 126,500 |   |
|                    |   |                                       |    |   |   |   |   |   |

----

|                                                             |   |                        |      |   |                         |   |      |     |   |   |      |   |
|------------------------------------------------------------------|--------|-----------------------------|-----------|--------|------------------------------|--------|-----------|----------|--------|--------|-----------|--------|
|                                                             |   | March      31, 2008         |      |
|                                                             |   | Employee      Stock Options |      |   | Stock      Purchase Warrants |   |
|                                                             |   |                        |      |   | Weighted                     |   |      |     |   |   | Weighted  |   |
|                                                             |   |                        |      |   | Average                      |   |      |     |   |   | Average   |   |
|                                                             |   |                        |      |   | Exercise                     |   |      |     |   |   | Exercise  |   |
|                                                             |   | Options                     |      |   | Price                        |   |      | Warrants |   |   | Price     |   |
| Outstanding      at beginning                                    |   |                        |      |   |                         |   |      |     |   |   |      |   |
| Outstanding      balance at December 31, 2007                    |   |                        | 3,819,927 |   |                         | $      | 3.75      |     |   |   | 1,445,585 |   |   | $ | 3.58 |   |
| Granted                                                          |   |                        | -         |   |                         | $      | -         |     |   |   | -         |   |   | $ | - |   |
| Forfeited                                                        |   |                        | -         |   |                         | $      | -         |     |   |   | -         |   |   | $ | - |   |
| Expired                                                          |   |                        | (208,904  | )      |                         | $      | 3.91      |     |   |   | (45,000   | )      |   | $ | 3.88 |   |
| Exercised                                                        |   |                        | -         |   |                         | $      | -         |     |   |   | (446,698  | )      |   | $ | 3.42 |   |
| Outstanding      at March 31, 2008                               |   |                        | 3,611,023 |   |                         | $      | 3.75      |     |   |   | 953,887   |   |   | $ | 3.64 |   |
| Exercisable      at March 31, 2008                               |   |                        | 2,587,694 |   |                         | $      | 3.26      |     |   |   | 953,887   |   |   | $ | 3.64 |   |
|                                                             |   |                        |      |   |                         |   |      |     |   |   |      |   |   |   |   |   |
| Weighted      Average Remaining Contractual Life - Years         |   |                        |      |   |                         |   | 6.03      |     |   |   |      |   |   |   | 2.61 |   |
|                                                             |   |                        |      |   |                         |   |      |     |   |   |      |   |   |   |   |   |
| Aggregate      intrinsic value of options / warrants outstanding |   |                        |      |   |                         | $      | 1,226,000 |     |   |   |      |   |   | $ | 273,490 |   |
|                                                             |   |                        |      |   |                         |   |      |     |   |   |      |   |   |   |   |   |

----

|                                               |   |              |       |   |    |   |    | Additional |   |
|----------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|------------|--------|
|                                               |   | Common      Stock |       |   | Paid-In |   |
|                                               |   | Shares            |       |   | Amount  |   |    | Capital    |   |
|                                               |   |              |       |   |    |   |    |       |   |
|  Balance      December 31, 2007               |   |              | 23,592,493 |   |    | $      | 235,900 |       |   | $ | 96,560,100 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|  2001      stock compensation plan            |   |              | 25,000     |   |    |   | 200     |       |   |   | 107,800 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|  Exercise      of warrants                    |   |              | 446,698    |   |    |   | 4,500   |       |   |   | 1,523,000 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|  Expense      of employee options             |   |              | -          |   |    |   | -       |       |   |   | 344,000 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|  Deferred      taxes on FAS 123R compensation |   |              | -          |   |    |   | -       |       |   |   | 18,700 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|  Cancelation      of common stock             |   |              | (249,621   | )      |    |   | (2,500  | )          |   |   | (995,700 | ) |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |
|                                               |   |              | 23,814,570 |   |    | $      | 238,100 |       |   | $ | 97,557,900 |   |
|                                               |   |              |       |   |    |   |    |       |   |   |   |   |

----

----

----

|                                                         |   | For      the three months ended March 31, |        |
|--------------------------------------------------------------|--------|-------------------------------------------|-------------|
|                                                         |   | 2008                                      |        |   | 2007 |   |
| Revenues:                                                    |   |                                      |        |   |   |   |
| Real      estate                                             |   | $                                         | 126,500     |   |   | $ | 33,000 |   |
| Mineral      properties, management fees & other         |   |                                      | 24,600      |   |   |   | 39,000 |   |
| Total      revenues:                                         |   |                                      | 151,100     |   |   |   | 72,000 |   |
|                                                         |   |                                      |        |   |   |   |   |   |
| Operating      expenses:                                     |   |                                      |        |   |   |   |   |   |
| Real      estate                                             |   |                                      | 168,200     |   |   |   | 165,900 |   |
| Mineral      properties                                      |   |                                      | 233,500     |   |   |   | 796,700 |   |
| Total      operating expenses:                               |   |                                      | 401,700     |   |   |   | 962,600 |   |
|                                                         |   |                                      |        |   |   |   |   |   |
| Loss      before investment and property transactions:       |   |                                      |        |   |   |   |   |   |
| Real      estate                                             |   |                                      | (41,700     | ) |   |   | (132,900 | ) |
| Mineral      properties                                      |   |                                      | (208,900    | ) |   |   | (757,700 | ) |
| Total      loss before investment and property transactions: |   |                                      | (250,600    | ) |   |   | (890,600 | ) |
|                                                         |   |                                      |        |   |   |   |   |   |
| Corporate      other revenues and expenses:                  |   |                                      | (2,139,700  | ) |   |   | (775,900 | ) |
|                                                         |   |                                      |        |   |   |   |   |   |
| U.S.      Energy loss before provision for income taxes      |   | $                                         | (2,390,300  | ) |   | $ | (1,666,500 | ) |
|                                                         |   |                                      |        |   |   |   |   |   |
| Depreciation      expense:                                   |   |                                      |        |   |   |   |   |   |
| Real      estate                                             |   | $                                         | 50,700      |   |   | $ | 10,100 |   |
| Mineral      properties, management fees & other         |   |                                      | 10,400      |   |   |   | 5,700 |   |
| Corporate                                                    |   |                                      | 123,700     |   |   |   | 104,500 |   |
| Total      depreciation expense                              |   | $                                         | 184,800     |   |   | $ | 120,300 |   |
|                                                         |   |                                      |        |   |   |   |   |   |
|                                                         |   | As      of                                |        |
|                                                         |   | March      31,                            |        |   | December      31, |   |
|                                                         |   | 2008                                      |        |   | 2007 |   |
| Assets      by segment                                       |   |                                      |        |   |   |   |   |   |
| Real      estate                                             |   | $                                         | 23,752,200  |   |   | $ | 18,951,700 |   |
| Mineral      / Oil & Gas properties                      |   |                                      | 26,363,500  |   |   |   | 26,817,100 |   |
| Corporate      assets                                        |   |                                      | 85,223,600  |   |   |   | 85,635,600 |   |
| Total      assets                                       |   | $                                         | 135,339,300 |   |   | $ | 131,404,400 |   |
|                                                         |   |                                      |        |   |   |   |   |   |

----

----

|   | · | Cash      decreased by $23,485,500 as a result of investing $24,886,000 in      marketable securities, U.S. Treasury Bills, with maturities greater than      three months.   Cash and U.S. Treasury Bills therefore      increased by $1,400,500. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Aggregate      Accounts Receivable decreased by $557,300.  Major changes in      accounts receivable were the result of the collection of amounts due the      Company at December 31, 2007.  Reimbursable project costs      related to the Lucky Jack molybdenum project were reduced by $83,800 from      $782,100 at December 31, 2007 to $698,300 at March 31,      2007.  The amount at March 31, 2008 represents the amount      unpaid, but current, from Kobex at the time it elected to no longer      participate in the project.  Kobex has indicated it will pay all      costs through March 31, 2008 pursuant to the terms of the      agreement.  During the quarter ended March 31, 2008, the Company      received amounts due from subsidiary companies which had been dissolved      during 2007 as well as partial payment of $800,000 of the amount due from      the Internal Revenue Service at December 31, 2007.  The Loss      incurred during the quarter ended March 31, 2008 resulted in an increase      in the amount of the account receivable from the Internal Revenue Service      as a result of that loss being carried back against taxes paid during      2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company’s restricted investments, cash held in an interest bearing      account, decreased by $1,793,800 due to the release of funds held in      escrow at December 31, 2007 for a potential tax fee exchange real estate      transaction.  The contemplated transaction did not occur within      the time frame allowed by the Internal Revenue Code so it was therefore      released from restricted investments tocash. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company reported $1,112,600 in assets held for sale at March 31, 2008 and      December 31, 2007, which was a used corporate aircraft.  We      anticipate that the aircraft will be sold during  2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accounts      payable decreased by $1,090,400 during the quarter ended March 31,      2008.  The decrease was a result of the Company funding an early      retirement benefit in the amount of $600,000, the payment of $285,100 in      sales taxes due on the purchase of an aircraft, and the payment of accrued      accounts payable. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accrued      compensation expense increased by $461,100 during the quarter ended March      31, 2008.  This increase reflects a onetime bonus paid to an      officer of the company for past performance in the amount of $500,000 plus      taxes, which is to be paid out quarterly over a two year period beginning      in March 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      current portion of long term debt increased by $4,789,000 to $10,349,900      at March 31, 2008.  The majority of the current debt,      $10,254,900, was for the construction loan associated with the multifamily      housing project in Gillette,Wyoming. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      current liabilities increased by $191,600 primarily as a result of the      retainage amounts related to the Gillette, Wyoming multifamily housing      project. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operations      consumed $769,400, Investing Activities consumed $27,980,300 and Financing      Activities provided $5,264,200 for a net decrease in cash of      $23,485,500. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For      a discussion on cash consumed in Operations please refer to Results of      Operations below. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

----

|   | · | Cash      provided by investing activities: |
|--------|--------|---------------------------------------------|

|   | · | The      sale of marketable securities – 55,000 shares of Premier by SGMI for      $124,600. |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | $1,792,400      in cash, held as restricted investments at December 31, 2007 was released      to the Company due to a tax free exchange real estate transaction not      being concluded. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cash      consumed in investing activities: |
|--------|--------|---------------------------------------------|

|   | · | The      Company invested $147,800 in a prospective real estate property to prepare      it for future development and $4,765,800 in the multi-family housing      development in Gillette, Wyoming for a total investment of $4,913,600 in      real estate. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company paid $82,200 as its portion of oil and gas acquisition costs      subject to its agreement on properties in the U.S. gulf      coast.  The Company plans on beginning drilling these properties      in 2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company invested $10,900 in unproven mining claims through its subsidiary      SGMI on its gold prospectproperties. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Company invested $24,886,000 in U.S. Treasury Bills.  The      Treasury Bills are classified as marketable securities rather than cash as      they have maturities longer than three months from the date of      purchase. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cash      provided by FinancingActivities: |
|--------|--------|--------------------------------------------|

| ·   | $4,765,800      additional funds were drawn against the construction loan for the      multi-family housing project in Gillette,  Wyoming. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      total of $1,527,500 was received from the issuance of the Company’s common      stock as the result of the cash exercise of 446,698    warrants. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cash      consumed in Financing Activities: |
|--------|--------|---------------------------------------------|

|   | · | Payment      of long term debt of $30,900 which related primarily to the payment on      notes related to various pieces ofequipment. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On June 22, 2007 the Company      announced a stock buyback plan to purchase up to $5.0 million of its      common stock.  During the quarter ended March 31, 2008 the      Company purchased 249,621 shares under the buyback plan for $998,200 or an      average price of $4.00 per share.  From inception of the stock      buyback plan through March 31, 2008, the Company has purchased 477,621      shares at an average price per share of $4.28 or      $2,045,500. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|                                   |   |   |       |   | Less          |   |       | One      to |   |   | Three      to |   |   | More      than |   |
|----------------------------------------|--------|--------|------------|--------|---------------|--------|------------|-------------|--------|--------|---------------|--------|--------|----------------|--------|
|                                   |   |   |       |   | than      one |   |       | Three       |   |   | Five          |   |   | Five           |   |
|                                   |   | Total  |       |   | Year          |   |       | Years       |   |   | Years         |   |   | Years          |   |
|  Long-term      debt obligations  |   | $      | 10,521,100 |   |          | $      | 10,349,900 |        |   | $      | 171,200       |   |   | $              | -      |   |   |   | - |   |
|                                   |   |   |       |   |          |   |       |        |   |   |          |   |   |           |   |   |   |   |   |   |
|  Other      long-term liabilities |   |   | 135,600    |   |          |   | -          |        |   |   | -             |   |   |           | -      |   |   |   | 135,600 |   |
|  Totals                           |   | $      | 10,656,700 |   |          | $      | 10,349,900 |        |   | $      | 171,200       |   |   | $              | -      |   |   | $ | 135,600 |   |
|                                   |   |   |       |   |          |   |       |        |   |   |          |   |   |           |   |   |   |   |   |   |

----

----

 

| 1. | Concerning      the Application for Water Rights of Virgil and Lee Spann Ranches, Inc.,      Case No. 03CW033, 03CW034, 03CW035, 03CW036 and      03CW037.  These related cases involve the Spann Ranches, Inc.’s      Water Court applications to change the point of diversion through      alternative points for the purpose of rotating a portion of their senior      water rights between ditches to maximize beneficial use in the event of a      major downstream senior call.  MEMCO filed Statements of      Opposition to ensure that the final decrees to be issued by the Water      Court contain terms and conditions sufficient to protect MEMCO’s water      rights from material injury.  These cases are pending and USE is      awaiting proposed decrees from Applicant Spann Ranches, Inc. for      consideration. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Concerning      the Application for Water Rights of the Town of Crested Butte,      Case No. 02CW63.  This case involves an application filed by the      Town of Crested Butte to provide for an alternative point of      diversion.  MEMCO filed a Statement of Opposition to ensure that      the final decree to be issued by the Water Court contains terms and      conditions sufficient to protect MEMCO’s water rights from material      injury.  The Town of Crested Butte and USE have reached a      settlement to protect USE’s water rights pursuant to a proposed final      decree, which will be submitted with a Stipulation signed by the parties      to the Water Court for its  approval. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Concerning      the Application of the United      States of America in      the Gunnison River,      Gunnison County,      Case No. 99CW267.  This case involves an application filed by      the United States of America to appropriate 0.033 cubic feet per second of      water for wildlife use and for incidental irrigation of riparian      vegetation at the Mt. Emmons Iron Bog Spring, located in the vicinity of      the Lucky Jack property.  MEMCO filed a Statement of Opposition      to protect proposed mining operations against any adverse impacts by the      water requirements of the Iron Bog on such operations.  This      case is pending while the parties attempt to reach a settlement on the      proposed decree terms and  conditions. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Concerning      the Application for Water Rights of the United      States of America for      Quantification of Reserved Right for Black Canyon of      Gunnison National      Park, Case No. 01CW05.  This case involves an application      filed by the United States of America to make absolute conditional water      rights claimed in the Gunnison River in relation to the Black Canyon of      the Gunnison National Park for, and to quantify in-stream flows for the      protection and reproduction of fish and to preserve the recreational,      scenic and aesthetic conditions.  MEMCO and over 350 other      parties filed Statements of Opposition to protect their existing water      rights.  USECC and most other Opposers have taken the position      that the flows claimed by the United States should be subordinated to the      historical operations of the federally owned and operated Aspinall Unit,      and are subject to the provisions contained in the Aspinall Unit      Subordination Agreement between the federal government and water districts      which protect junior water users in the Upper Gunnison River      Basin.  This case is pending while the parties negotiate terms      and conditions for incorporation into Stipulations among the parties and      into the future final decree to be issued by the Water      Court.  Future Water Court proceedings in this case will involve      quantification of the in-stream flows claimed for the      Black Canyon Park. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                             |   | Number         |    |   | Average        |   |   | Total      shares |   |   | Maximum              |      |
|--------------------------------------------------|--------|----------------|---------|--------|----------------|--------|--------|-------------------|--------|--------|----------------------|-----------|
|                                             |   | of      shares |    |   | per      share |   |   | purchased         |   |   | value      of shares |      |
|  Period                                     |   | purchased      |    |   | price          |   |   | under      plan   |   |   | to      be purchased |      |
| Inception      - June 22, 2007                   |   |           |    |   |           |   |   |              |   |   | $                    | 5,000,000 |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |
|  July      1, through December 31, 2007     |   |           | 228,000 |   |           | $      | 4.59   |              |   |   | 228,000              |      |   | $ | 3,952,700 |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |   |   |   |
|  January      1, through January 31, 2008   |   |           | 161,260 |   |           | $      | 4.36   |              |   |   | 389,260              |      |   | $ | 3,249,200 |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |   |   |   |
|  February      1, through February 28, 2008 |   |           | -       |   |           | $      | -      |              |   |   | 389,260              |      |   | $ | 3,249,200 |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |   |   |   |
|  March      1, through March 31, 2008       |   |           | 88,361  |   |           | $      | 3.33   |              |   |   | 477,621              |      |   | $ | 2,954,500 |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |   |   |   |
|  Totals                                     |   |           | 477,621 |   |           | $      | 4.28   |              |   |   |                 |      |   |   |   |   |
|                                             |   |           |    |   |           |   |   |              |   |   |                 |      |   |   |   |   |

----

|   | (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 four reports on Form 8-K for the      quarter ended March 31, 2008.  The events reported were as      follows: |
|   |   |                                                                                                                                                                            |                                                                                                                                               |
|   |   | 1.                                                                                                                                                                              | The      report filed on January 23, 2008, under Item 5.02 referenced the changed      in corporate officers.                                      |
|   |   |                                                                                                                                                                            |                                                                                                                                               |
|   |   | 2.                                                                                                                                                                              | The      report filed on February 15, 2008, under Item 8.01 referenced the approval      of amended work program for the Lucky Jack Project.       |
|   |   |                                                                                                                                                                            |                                                                                                                                               |
|   |   | 3.                                                                                                                                                                              | The      report filed on February 25, 3008, under Item 8.01 referenced the results      of metallurgical testing at the Lucky Jack Project.        |
|   |   |                                                                                                                                                                            |                                                                                                                                               |
|   |   | 4.                                                                                                                                                                              | The      report filed on March 14 2008, under Item 8 referenced the amendment of      Bylaws and setting of annual meetingdates.                   |

----

|                   |   | U.S.      ENERGY CORP. |
|------------------------|--------|------------------------|
|                   |   | (Company)              |
|                   |   |                   |   |   |
|                   |   |                   |   |   |
|                   |   |                   |   |   |
| Date:      May 9, 2008 |   | By:                    | /s/      Keith G. Larsen |   |
|                   |   |                   | KEITH      G. LARSEN, |   |
|                   |   |                   | Chairman      and CEO |   |
|                   |   |                   |   |   |
|                   |   |                   |   |   |
|                   |   |                   |   |   |
|                   |   |                   |   |   |
| Date:      May 9, 2008 |   | By:                    | /s/      Robert Scott Lorimer |   |
|                   |   |                   | ROBERT      SCOTT LORIMER |   |
|                   |   |                   | Principal      Financial Officer and |   |
|                   |   |                   | Chief      Accounting Officer |   |

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