----

| x      | Quarterly                  report pursuant to section 13 or 15(d) of the Securities Exchange                  Act of                  1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   | For                  the quarter ended March 31, 2006 or                                                                                    |
|   |                                                                                                                                        |
| o      | Transition                  report pursuant to section 13 or 15(d) of the Securities Exchange                  Act of                  1934 |
|   | For                  the transition period from ___________ to                  ____________                                                |

| **CRESTED                  CORP.**                                                    |
|---------------------------------------------------------------------------------------|
| (Exact                  Name of Company as Specified in its                  Charter) |

| **Colorado**                                                      |   | **84-0608126**                       |
|-------------------------------------------------------------------|--------|--------------------------------------|
| (State                  or other jurisdiction of                  |   | (I.R.S.                  Employer    |
| incorporation                  or organization)                   |   | Identification                  No.) |
|                                                              |   |                                 |
| **877                  North 8****th****West, Riverton, WY**      |   | **82501**                            |
| (Address                  of principal executive offices)         |   | (Zip                  Code)          |
|                                                              |   |                                 |
| Company's                  telephone number, including area code: |   | **(307)                  856-9271**  |

----

| Class                                          |   | Outstanding                  Shares at May 15, 2006 |
|------------------------------------------------|--------|-----------------------------------------------------|
| Common                  stock, $.001 par value |   | 17,164,298                                          |

----

**CRESTED        CORP.**

**INDEX**

|                          |                                                                        | Page                  No.     |
|-------------------------------|-----------------------------------------------------------------------------|-------------------------------|
| **PART                  I.**  | **FINANCIAL                  INFORMATION**                                  |                          |
|                          |                                                                        |                          |
| ITEM                  1.      | Financial                  Statements.                                      |                          |
|                          |                                                                        |                          |
|                          | Condensed                  Balance Sheets (Unaudited)                       |                          |
|                          | March                  31, 2006 and December 31, 2005                       | 4                             |
|                          |                                                                        |                          |
|                          | Condensed                  Statements of Operations (Unaudited)             |                          |
|                          | Three                  Months Ended March 31, 2006 and 2005                 | 5                             |
|                          |                                                                        |                          |
|                          | Condensed                  Statements of Cash Flows (Unaudited)             |                          |
|                          | Three                  Months Ended March 31, 2006 and 2005                 | 6                             |
|                          |                                                                        |                          |
|                          | Notes                  to Condensed Financial Statements (Unaudited)        | 7-9                           |
|                          |                                                                        |                          |
| ITEM                  2.      | Management’s                  Discussion and Analysis of              |                          |
|                          | Financial                  Condition and Results of Operations              | 10-17                         |
|                          |                                                                        |                          |
| ITEM                  3.      | Quantitative                  and Qualitative Disclosures About Market Risk | 17-19                         |
|                          |                                                                        |                          |
| ITEM                  4.      | Controls                  and Procedures                                    | 19                            |
|                          |                                                                        |                          |
| **PART                  II.** | **OTHER                  INFORMATION**                                      |                          |
|                          |                                                                        |                          |
| ITEM                  1.      | Legal                  Proceedings                                          | 20                            |
|                          |                                                                        |                          |
| ITEM                  2.      | Changes                  in Securities and Use of Proceeds                  | 20                            |
|                          |                                                                        |                          |
| ITEM                  3.      | Defaults                  upon Senior Securities                            | 20                            |
|                          |                                                                        |                          |
| ITEM                  4.      | Submission                  of Matters to a Vote of Security Holders        | 20                            |
|                          |                                                                        |                          |
| ITEM                  5.      | Other                  Information                                          | 20                            |
|                          |                                                                        |                          |
| ITEM                  6.      | Exhibits                  and Reports on Form 8-K                           | 21                            |
|                          |                                                                        |                          |
|                          | Signatures                                                                  | 22                            |
|                          |                                                                        |                          |
|                          | Certifications                                                              | See                  Exhibits |

----

**PART        I. FINANCIAL INFORMATION**

**ITEM        1. Financial Statements**

| **CRESTED                    CORP.**                                                                      |
|-----------------------------------------------------------------------------------------------------------|
| **BALANCE                    SHEETS**                                                                     |
| **ASSETS**                                                                                                |
|                                                                                                      |   |   |   |   |   |
|                                                                                                      |   | March                    31, |   | December                    31, |   |
|                                                                                                      |   | 2006 |   | 2005 |   |
|                                                                                                      |   | (Unaudited) |   |   |   |
| CURRENT                    ASSETS:                                                                        |   |   |   |   |   |
| Cash                    and cash equivalents                                                         |   | $ | 85,600 |   | $ | 95,100 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| INVESTMENTS                    IN AFFILIATES                                                              |   |   |   |   |   |   |   |
| Affiliated                    companies                                                              |   |   | 4,147,800 |   |   | 3,348,800 |   |
| Non-affiliated                    companies                                                          |   |   | 5,020,800 |   |   | 5,228,300 |   |
|                                                                                                      |   |   | 9,168,600 |   |   | 8,577,100 |   |
| PROPERTIES                    AND EQUIPMENT                                                               |   |   |   |   |   |   |   |
| Machinery                    and other equipment                                                     |   |   | 10,000 |   |   | 10,000 |   |
| Developed                    oil properties, full cost method                                        |   |   | 886,800 |   |   | 886,800 |   |
|                                                                                                      |   |   | 896,800 |   |   | 896,800 |   |
| Less                    accumulated depreciation, depletion and amortization                         |   |   | (886,800 | ) |   | (886,800 | ) |
|                                                                                                      |   |   | 10,000 |   |   | 10,000 |   |
|                                                                                                      |   | $ | 9,264,200 |   | $ | 8,682,200 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| **LIABILITIES                    AND SHAREHOLDERS' DEFICIT**                                              |
|                                                                                                      |   |   |   |   |   |   |   |
| CURRENT                    LIABILITIES:                                                                   |   |   |   |   |   |   |   |
| Current                    debt to affiliate                                                         |   | $ | 11,410,000 |   | $ | 10,821,800 |   |
| Asset                    retirement obligation                                                       |   |   | 106,200 |   |   | 106,200 |   |
|                                                                                                      |   |   | 11,516,200 |   |   | 10,928,000 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| COMMITMENT                    TO FUND EQUITY INVESTEES                                                    |   |   | 215,600 |   |   | 215,600 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| ASSET                    RETIREMENT OBLIGATION                                                            |   |   | 1,115,700 |   |   | 1,045,200 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| COMMITMENTS                    AND CONTINGENCIES                                                          |   |   |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |   |
| FORFEITABLE                    COMMON STOCK, $.001 par value                                              |   |   |   |   |   |   |   |
| 15,000                    shares issued, forfeitable until earned                                    |   |   | 10,100 |   |   | 10,100 |   |
|                                                                                                      |   |   |   |   |   |   |   |
| SHAREHOLDERS'                    DEFICIT                                                                  |   |   |   |   |   |   |   |
| Preferred                    stock, $.001 par value;                                                 |   |   |   |   |   |   |   |
|  100,000                    shares authorized none issued or outstanding                             |   |   | -- |   |   | -- |   |
| Common                    stock, $.001 par value; 100,000,000 shares                    authorized;  |   |   |   |   |   |   |   |
|  17,149,298                    shares issued and outstanding each period                             |   |   | 17,200 |   |   | 17,200 |   |
| Additional                    paid-in capital                                                        |   |   | 11,814,400 |   |   | 11,814,400 |   |
| Accumulated                    deficit                                                               |   |   | (15,425,000 | ) |   | (15,348,300 | ) |
|                                                                                                      |   |   | (3,593,400 | ) |   | (3,516,700 | ) |
|                                                                                                      |   | $ | 9,264,200 |   | $ | 8,682,200 |   |
|                                                                                                      |   |   |   |   |   |   |   |

----

| **CRESTED                    CORP.**                               |
|--------------------------------------------------------------------|
| **CONDENSED                    STATEMENTS OF OPERATIONS**          |
| **(Unaudited)**                                                    |
|                                                               |   |   |   |   |   |
|                                                               |   | Three                    months ended March 31, |   |
|                                                               |   | 2006 |   | 2005 |   |
|                                                               |   |   |   |   |   |
| REVENUES:                                                          |   | $ | -- |   | $ | -- |   |
|                                                               |   |   |   |   |   |   |   |
| COSTS                    AND EXPENSES:                             |   |   |   |   |   |   |   |
| Accretion                    of asset retirement obligation   |   |   | 70,600 |   |   | 22,700 |   |
| General                    and administrative                 |   |   | 88,300 |   |   | 28,900 |   |
|                                                               |   |   | 158,900 |   |   | 51,600 |   |
| LOSS                    FROM CONTINUING OPERATIONS                 |   |   | (158,900 | ) |   | (51,600 | ) |
|                                                               |   |   |   |   |   |   |   |
| OTHER                    REVENUES AND (EXPENSES):                  |   |   |   |   |   |   |   |
| Interest                                                      |   |   | 400 |   |   | -- |   |
| Loss                    on valuation of derivatives           |   |   | (207,500 | ) |   | -- |   |
|                                                               |   |   | (207,100 | ) |   | -- |   |
|                                                               |   |   |   |   |   |   |   |
| LOSS                    BEFORE EQUITY GAIN (LOSS),                 |   |   |   |   |   |   |   |
| AND                    PROVISION FOR INCOME TAXES             |   |   | (366,000 | ) |   | (51,600 | ) |
|                                                               |   |   |   |   |   |   |   |
| EQUITY                    IN GAIN (LOSS) OF AFFILIATE              |   |   | 289,300 |   |   | (372,900 | ) |
|                                                               |   |   |   |   |   |   |   |
| LOSS                    BEFORE PROVISION                           |   |   |   |   |   |   |   |
| FOR                    INCOME TAXES                           |   |   | (76,700 | ) |   | (424,500 | ) |
|                                                               |   |   |   |   |   |   |   |
| PROVISION                    FOR INCOME TAXES                      |   |   | -- |   |   | -- |   |
|                                                               |   |   |   |   |   |   |   |
| NET                    LOSS                                        |   | $ | (76,700 | ) | $ | (424,500 | ) |
|                                                               |   |   |   |   |   |   |   |
| PER                    SHARE DATA                                  |   |   |   |   |   |   |   |
| NET                    LOSS PER SHARE, BASIC AND DILUTED           |   |   | * |   | $ | (0.02 | ) |
|                                                               |   |   |   |   |   |   |   |
| BASIC                    AND DILUTED WEIGHTED AVERAGE              |   |   |   |   |   |   |   |
| SHARES                    OUTSTANDING                         |   |   | 17,149,298 |   |   | 17,137,298 |   |
|                                                               |   |   |   |   |   |   |   |
| *                    Less than $0.01 per share                     |   |   |   |   |   |   |   |

----

| **CRESTED                    CORP.**                             |
|------------------------------------------------------------------|
| **STATEMENTS                    OF CASH FLOWS**                  |
| **(Unaudited)**                                                  |
|                                                             |   |   |   |   |   |
|                                                             |   | Three                    months ended March 31, |   |
|                                                             |   | 2006 |   | 2005 |   |
|                                                             |   |   |   |   |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:         |   |   |   |   |   |
| Net                    loss                                      |   | $ | (76,700 | ) | $ | (424,500 | ) |
| Adjustments                    to reconcile net loss to net cash |   |   |   |   |   |   |   |
| used                    in by operating activities:              |   |   |   |   |   |   |   |
| Equity                    in (gain) loss of affiliate            |   |   | (289,300 | ) |   | 372,900 |   |
| Noncash                    compensation                          |   |   | 62,300 |   |   | -- |   |
| Change                    in valuation of derivatives            |   |   | 207,500 |   |   | -- |   |
| Accretion                    of asset retirement obligation      |   |   | 70,500 |   |   | 22,700 |   |
| NET                    CASH USED IN OPERATING ACTIVITIES         |   |   | (25,700 | ) |   | (28,900 | ) |
|                                                             |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:         |   |   |   |   |   |   |   |
| Investment                    in affiliates                      |   |   | (509,700 | ) |   | (941,200 | ) |
|                                                             |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVATES:          |   |   |   |   |   |   |   |
| Net                    activity on debt to affiliate             |   |   | 525,900 |   |   | 970,100 |   |
|                                                             |   |   |   |   |   |   |   |
| NET                    DECREASE IN                               |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS                     |   |   | (9,500 | ) |   | -- |   |
|                                                             |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT                  |   |   |   |   |   |   |   |
| BEGINNING                    OF PERIOD                           |   |   | 95,100 |   |   | 3,800 |   |
|                                                             |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT                  |   |   |   |   |   |   |   |
| END                    OF PERIOD                                 |   | $ | 85,600 |   | $ | 3,800 |   |
|                                                             |   |   |   |   |   |   |   |
| SUPPLEMENTAL                    DISCLOSURES:                     |   |   |   |   |   |   |   |
| Interest                    paid                                 |   | $ | -- |   | $ | -- |   |
|                                                             |   |   |   |   |   |   |   |
| Income                    tax paid                               |   | $ | -- |   | $ | -- |   |
|                                                             |   |   |   |   |   |   |   |

----

**CRESTED              CORP.**

**Notes              to Condensed Financial Statements              (Unaudited)**

| ·   | Successfully                conclude the litigation with Nukem, Inc. (“Nukem”). |
|--------------------|---------------------------------------------------------------------------------------------|
| ·   | Continue                working with Uranium Power Corp. (“UPC”) and USE to explore and develop                jointly held uranium properties along with seeking a joint venture                partner. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Seek                joint venture partners on other mineral properties which the Company                owns                an interest in. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Convert                its shares of Acquisitions into shares of Enterra which will be                sold. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

----

**CRESTED              CORP.**

**Notes              to Condensed Financial Statements (Unaudited)**

----

**CRESTED            CORP.**

| Balance                  December 31, 2005            |   | $      | 1,151,400 |   |
|-------------------------------------------------------|--------|--------|-----------|--------|
| Addition                  to Liability                |   |   | --        |   |
| Liability                  Settled                    |   |   | --        |   |
| Accretion                  Expense - 8% discount rate |   |   | 70,500    |   |
| Balance                  March 31, 2006               |   | $      | 1,221,900 |   |

----

**CRESTED        CORP.**

**ITEM        2. **
**Management's        Discussion and Analysis of Financial Condition and Results of        Operations**
**.**

**General        Overview**

**Uranium**

**Gold**

**Molybdenum**

----

| ·   | Whether                the feasibility studies will show, for any of the properties, that                the                minerals can be mined and processed profitably. For some of the properties                (like uranium and gold), commodity prices will have to be sustained                at                levels not materially less than current prices; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Whether                the feasibility studies will show volume and grades of mineralization,                and                manageable costs of mining and processing, which are sufficient to                bring                industry partners to the point of investment;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Whether                we can negotiate terms with industry partners which will return a                substantial profit to the Company for its retained interest and the                project’s development costs to that point in                time. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Forward        Looking Statements**

----

**Critical        Accounting Policies**

*Asset        Impairments*

*Asset        Retirement Obligations*

*Use        of Accounting Estimates*

*Income        Taxes*

*Marketable        Securities*

----

**Recent        Accounting Pronouncements**

**SFAS        123(R)**

**Liquidity        and Capital Resources**

**Capital        Resources**

----

| ·   | The                original agreement required UPC to pay USECC $800,000 and issue 750,000                shares of UPC stock on June 29, 2006, and pay an additional $800,000                and                issue 750,000 more shares of UPC stock on December 29, 2006. UPC                has paid                the $1.6 million cash and has delivered the 1.5 million shares to                USE and                Crested in equal amounts of 750,000                shares. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                original agreement required UPC to pay to USECC $1.5 million on April                29,                2006, and an additional $1.5 million on October 29, 2006. This payment                schedule has been extended one year, to require the payments on April                29,                2007 and October 29, 2007, provided that UPC is required to pay 50%                of all                money it raises after January 13, 2006 until the two $1.5 million                payments                are made, regardless of the one year extension. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                amendment requires UPC to pay USECC the $152,000 outstanding balance                for                the 2005 uranium property drilling program and an additional $400,000                of                $775,400 budgeted for the first half of the 2006 drilling program.                UPC has                paid this $552,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                original agreement required UPC to pay a total of $4,050,000 and                4 million                shares of UPC stock. However, the cash portion was subject to increase                by                $3 million (in two $1.5 million installments) if the uranium oxide                price                (long term indicator) attained or exceeded $30.00/lb for four consecutive                weeks. This price benchmark was achieved on June 20, 2005, which                resulted                in the two $1.5 million payments being required on April 29 and October                29, 2006. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                original agreement required two additional payments each of $800,000                cash                and 750,000 UPC shares (total $1,600,000 cash and 1,500,000 UPC shares)                due on June 29, 2007 and December 29, 2007. These payment requirements                have not been amended and remain due in accordance with the original                agreement. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Line        of Credit**

----

**Capital        Requirements**

----

**Results        of Operations**

**Quarter        Ended March 31, 2006 compared with the Quarter Ended March 31,        2005**

**Quarter        Ended March 31, 2005 compared with the Quarter Ended March 31,        2004**

----

**Contractual        Obligations**

**Subsequent        Event**

**ITEM        3. Quantitative and Qualitative Disclosures About Market        Risk**

**Risk        Factors **

**The        following risk factors should be considered in evaluating the information        in        this Form 10-Q.**

**We        have a history of operating losses, current working capital deficits and        future        receipt of funds from liquidating investments may be insufficient to develop        our        mineral properties, none of which have proved reserves.**
** **

----

**Uncertainties        in the value of the mineral properties**

| ·   | The                profitable mining and processing of uranium and vanadium at and in                the                vicinity of Plateau’s properties in Utah will depend on many factors:                obtaining properties in proximity to the Shootaring Mill to keep                transportation costs economic; delineation through extensive drilling                and                sampling of sufficient volumes of mineralized material, with sufficient                grades, to make mining and processing economic over time; continued                sustained high prices for uranium oxide and vanadium; obtaining the                capital required to upgrade the Shootaring Mill and add a vanadium                circuit, and obtaining and continued compliance with operating permits. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                profitable mining at the Sheep Mountain properties in Wyoming will                depend                on: Evaluation of existing data to delineate sufficient volumes of                mineralized material, with sufficient grades, to make mining and                processing economic over time; continued sustained high prices for                uranium                oxide; and UPC and the Company having sufficient capital to complete                the                drilling and sampling work. In addition, there is no operating mill                near                Sheep Mountain although the Sweetwater Mill (which is on standby)                is                located 30 miles south of Sheep Mountain; the ultimate economics                of mining                the Sheep Mountain properties will depend on access to a mill or                sufficiently high uranium oxide prices to warrant shipments to faraway                mills. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   |   |
|--------------------|--------|
| ·   | The                profitable mining and processing of gold by Sutter Gold Mining Inc.                (in                which the Company owns a substantial stake) will depend on many factors,                including compliance with permit conditions; delineation through                extensive                drilling and sampling of sufficient volumes of mineralized material,                with                sufficient grades, to make mining and processing economic over time;                continued sustained high prices for gold; and obtaining the capital                required to initiate and sustain mining operations and build and                operate a                gold processing mill |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | We                have not yet obtained feasibility studies on any of our mineral                properties. These studies would establish the economic viability,                or not,                of the different properties based on extensive drilling and sampling,                the                design and costs to build and operate gold and uranium/vanadium mills,                the                cost of capital, and other factors. Feasibility studies can take                many                months to complete. These studies are conducted by professional third                party consulting and engineering firms, and will have to be completed,                at                considerable cost, to determine if the deposits contain proved reserves                (amounts of minerals in sufficient grades that can be extracted profitably                under current pricing assumptions for development and operating costs                and                commodity prices). A feasibility study usually must be completed                in order                to raise the substantial capital needed to put a property into production.                We have not established any reserves (economic deposits of mineralized                materials) on any of our uranium/vanadium or gold properties, and                future                studies may indicate that some or all of the properties will not                be                economic to put into production. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The                Lucky Jack molybdenum property has had extensive work conducted by                prior                owners, but this data will have to be updated to the level of a current                feasibility study to determine the viability of starting mining                operations. Obtaining mining and other permits to begin mining the                molybdenum property may be very difficult, and, like any mining operation,                capital requirements for a molybdenum mine/mill operation will be                substantial. There is a history of opposition by local government                entities                and environmental organizations to the prior owners seeking permits                to                mine this property. This opposition has been expressed in litigation                from                time to time. Continued legal challenges may delay putting the Lucky                Jack                Project into production. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Compliance        with environmental regulations may be costly**

**ITEM        4. **
**Controls        and Procedures**

----

**PART        II. OTHER INFORMATION**

**ITEM        1. **
**Legal        Proceedings**

**Sheep        Mountain Partners Arbitration/Litigation**

**Phelps        Dodge Litigation**

**ITEM        2. **
**Changes        in Securities and Use of Proceeds**

**ITEM        3. **
**Defaults        upon Senior Securities**

**ITEM        4. **
**Submission        of Matters to a Vote of Security Holders**

**ITEM        5. **
**Other        Information**

----

**ITEM        6. **
**Exhibits        and reports on Form 8-K**

|   | (a)    | Exhibits.                                                                                                                                                                                                          |                                                                                                                                                                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                               |
|   |   | 31.1                                                                                                                                                                                                               | Certification                  of President 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 President 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,                  2006. The events reported were as follows: |
|   |   |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                               |
|   |   | 1.                                                                                                                                                                                                                 | The                  report filed on January 17, 2006, under Item 1.01 referenced the                  January                  13, 2006 amended agreement between USECC and UPC.                                                                                  |
|   |   |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                               |
|   |   | 2.                                                                                                                                                                                                                 | The                  report filed on February 28, 2006, under Item 8.01 referenced the                  re-acquisition by Foreclosure Sale of the Ticaboo townsite                  operations.                                                                    |
|   |   |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                               |
|   |   | 3.                                                                                                                                                                                                                 | The                  report filed on March 2, 2006, under Item 8.01 referenced the                  re-acquisition of the Mount Emmons molybdenum property.                                                                                                        |
|   |   |                                                                                                                                                                                                               |                                                                                                                                                                                                                                                               |
|   |   | 4.                                                                                                                                                                                                                 | The                  report filed on March 24, 2006, under Item 8.01 referenced the                  Memorandum                  of Agreement for the Shootaring Mill License and drilling results                  for the                  Burro Canyon Project. |

----

**SIGNATURES**

|                                |   | CRESTED                  CORP.                   |   |
|-------------------------------------|--------|--------------------------------------------------|--------|
|                                |   | (Company)                                        |   |
|                                |   |                                             |   |
|                                |   |                                             |   |
|                                |   |                                             |   |
| Date:                  May 15, 2006 | By:    | /s/Harold                  F. Herron             |   |
|                                |   | HEROLD                  F. HERRON,               |   |
|                                |   | CHAIRMAN                  and President          |   |
|                                |   |                                             |   |
|                                |   |                                             |   |
|                                |   |                                             |   |
|                                |   |                                             |   |
| Date:                  May 15, 2006 | By:    | /s/Robert                  Scott Lorimer         |   |
|                                |   | ROBERT                  SCOTT LORIMER            |   |
|                                |   | Principal                  Financial Officer and |   |
|                                |   | Chief                  Accounting Officer        |   |

----