----

| x      | Quarterly                  report pursuant to section 13 or 15(d) of the Securities Exchange                  Act of                  1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   | For                  the quarter ended June 30, 2007 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 8th                  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 August 14, 2007 |
|------------------------------------------------|--------|--------------------------------------------------------|
| Common                  stock, $.001 par value |   | 17,182,704                                             |

----

**CRESTED        CORP.**

**INDEX**

|                          |                                                                                 | Page                  No.     |
|-------------------------------|--------------------------------------------------------------------------------------|-------------------------------|
| **PART                  I.**  | **FINANCIAL                  INFORMATION**                                           |                          |
|                          |                                                                                 |                          |
| ITEM                  1.      | Financial                  Statements.                                               |                          |
|                          |                                                                                 |                          |
|                          | Balance                  Sheets (Unaudited) June 30, 2007                            |                          |
|                          |    and                  December 31, 2006                             | 4                             |
|                          |                                                                                 |                          |
|                          | Statements                  of Operations (Unaudited)                                |                          |
|                          |    Three                  and Six Months Ended June 30, 2007 and 2006 | 5                             |
|                          |                                                                                 |                          |
|                          | Statements                  of Cash Flows (Unaudited)                                |                          |
|                          |    Six                  Months Ended June 30, 2007 and 2006           | 6-7                           |
|                          |                                                                                 |                          |
|                          | Notes                  to Financial Statements (Unaudited)                           | 8-16                          |
|                          |                                                                                 |                          |
| ITEM                  2.      | Management’s                  Discussion and Analysis of                       | 17-24                         |
|                          |    Financial                  Condition and Results of Operations     |                          |
|                          |                                                                                 |                          |
| ITEM                  3.      | Quantitative                  and Qualitative Disclosures About Market Risk          | 25                            |
|                          |                                                                                 |                          |
| ITEM                  4.      | Controls                  and Procedures                                             | 25                            |
|                          |                                                                                 |                          |
| **PART                  II.** | **OTHER                  INFORMATION**                                               |                          |
|                          |                                                                                 |                          |
| ITEM                  1.      | Legal                  Proceedings                                                   | 25-27                         |
|                          |                                                                                 |                          |
| ITEM                  1A.     | Risk                  Factors                                                        | 27-28                         |
|                          |                                                                                 |                          |
| ITEM                  2.      | Changes                  in Securities and Use of Proceeds                           | 28                            |
|                          |                                                                                 |                          |
| ITEM                  3.      | Defaults                  upon Senior Securities                                     | 28                            |
|                          |                                                                                 |                          |
| ITEM                  4.      | Submission                  of Matters to a Vote of Security Holders                 | 28                            |
|                          |                                                                                 |                          |
| ITEM                  5.      | Other                  Information                                                   | 28                            |
|                          |                                                                                 |                          |
| ITEM                  6.      | Exhibits                  and Reports on Form 8-K                                    | 28-29                         |
|                          |                                                                                 |                          |
|                          | Signatures                                                                           | 30                            |
|                          |                                                                                 |                          |
|                          | Certifications                                                                       | See                  Exhibits |

----

**PART        I.  FINANCIAL INFORMATION**

**ITEM        1.  Financial Statements**

| **CRESTED                  CORP.**                                          |   |
|-----------------------------------------------------------------------------|--------|
| **BALANCE                  SHEETS**                                         |   |
| **(Unaudited)**                                                             |   |
| **ASSETS**                                                                  |   |
|                                                                        |   |   |   |   |   |   |
|                                                                        |   | June                  30, |   |   | December                  31, |   |
|                                                                        |   | 2007 |   |   | 2006 |   |
| CURRENT                  ASSETS:                                            |   |   |   |   |   |   |
| Cash                  and cash equivalents                                  |   | $ | 4,521,900 |   |   | $ | 3,236,600 |   |
| Marketable                  securities                                      |   |   |   |   |   |   |   |   |
| Held                  to maturity - treasury bills                          |   |   | 20,093,700 |   |   |   | -- |   |
| Available                  for sale                                         |   |   | 11,205,000 |   |   |   | -- |   |
| Accounts                  receivable                                        |   |   |   |   |   |   |   |   |
| Sale                  of marketable securities                              |   |   | 3,111,600 |   |   |   | -- |   |
| Reimbursement                  of costs                                     |   |   | -- |   |   |   | 72,200 |   |
| Deferred                  tax asset                                         |   |   | 705,200 |   |   |   | 7,442,500 |   |
|                                                                        |   |   | 39,637,400 |   |   |   | 10,751,300 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| INVESTMENT                  IN AFFILIATE                                    |   |   | 4,737,100 |   |   |   | 4,280,400 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| DEFERRED                  TAX ASSETS                                        |   |   | 96,300 |   |   |   | 91,300 |   |
|                                                                        |   | $ | 44,470,800 |   |   | $ | 15,123,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                   |   |
|                                                                        |   |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES:                                       |   |   |   |   |   |   |   |   |
| Current                  debt to affiliate                                  |   | $ | 3,250,800 |   |   | $ | 13,277,200 |   |
| Liabilities                  held for sale                                  |   |   | -- |   |   |   | 1,204,900 |   |
| Income                  taxes payable                                       |   |   | 10,404,100 |   |   |   | -- |   |
|                                                                        |   |   | 13,654,900 |   |   |   | 14,482,100 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| COMMITMENT                  TO FUND EQUITY INVESTEES                        |   |   | 215,600 |   |   |   | 215,600 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| ASSET                  RETIREMENT OBLIGATION                                |   |   | 53,000 |   |   |   | 51,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES                              |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |   |
| FORFEITABLE                  COMMON STOCK, $.001 par value                  |   |   |   |   |   |   |   |   |
| 15,000                  shares issued, forfeitable until earned             |   |   | 10,100 |   |   |   | 10,100 |   |
|                                                                        |   |   |   |   |   |   |   |   |
| SHAREHOLDERS'                  EQUITY                                       |   |   |   |   |   |   |   |   |
| Preferred                  stock, $.001 par value;                          |   |   |   |   |   |   |   |   |
|  100,000                  shares authorized none issued or outstanding |   |   | -- |   |   |   | -- |   |
| Common                  stock, $.001 par value; 100,000,000 shares          |   |   |   |   |   |   |   |   |
| authorized;                  17,167,704                                     |   |   |   |   |   |   |   |   |
| shares                  issued and outstanding                              |   |   | 17,200 |   |   |   | 17,200 |   |
| Additional                  paid-in capital                                 |   |   | 11,844,400 |   |   |   | 11,844,400 |   |
| Unrealized                  loss                                            |   |   | (1,309,700 | ) |   |   | -- |   |
| Retained                  earnings (accumulated deficit)                    |   |   | 19,985,300 |   |   |   | (11,497,400 | ) |
|                                                                        |   |   | 30,537,200 |   |   |   | 364,200 |   |
|                                                                        |   | $ | 44,470,800 |   |   | $ | 15,123,000 |   |
|                                                                        |   |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                    |   |
|-----------------------------------------------------------------------|--------|
| **STATEMENTS                  OF OPERATIONS**                         |   |
| **(Unaudited)**                                                       |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three                  months ended June 30, |   |   | Six                  months ended June 30, |   |
|                                                                  |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|  REVENUES:                                                       |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COSTS                  AND EXPENSES:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accretion                  of asset retirement obligation       |   |   | (24,000 | ) |   |   | 29,200 |   |   |   | 1,100 |   |   |   | 99,800 |   |
|  General                  and administrative                     |   |   | 173,500 |   |   |   | 61,100 |   |   |   | 268,500 |   |   |   | 149,400 |   |
|                                                                  |   |   | 149,500 |   |   |   | 90,300 |   |   |   | 269,600 |   |   |   | 249,200 |   |
| LOSS                  FROM CONTINUING OPERATIONS                      |   |   | (149,500 | ) |   |   | (90,300 | ) |   |   | (269,600 | ) |   |   | (249,200 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  REVENUES AND (EXPENSES):                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                                                        |   |   | 156,500 |   |   |   | 500 |   |   |   | 183,400 |   |   |   | 900 |   |
|  Loss                  on sale of marketable securities          |   |   | (3,418,600 | ) |   |   | (53,500 | ) |   |   | (3,418,600 | ) |   |   | (53,500 | ) |
|  Loss                  on exchange of Enterra Acquisition shares |   |   | -- |   |   |   | (1,354,200 | ) |   |   | -- |   |   |   | (1,354,200 | ) |
|  Loss                  on valuation of derivatives               |   |   | -- |   |   |   | (16,100 | ) |   |   | -- |   |   |   | (223,600 | ) |
|  Gain                  on sale of uranium assets                 |   |   | 55,905,400 |   |   |   | -- |   |   |   | 55,905,400 |   |   |   | -- |   |
|  Gain                  on sale of assets                         |   |   | 400,000 |   |   |   | -- |   |   |   | 400,000 |   |   |   | -- |   |
|  Gain                  on foreign exchange                       |   |   | 251,300 |   |   |   | -- |   |   |   | 251,300 |   |   |   | -- |   |
|                                                                  |   |   | 53,294,600 |   |   |   | (1,423,300 | ) |   |   | 53,321,500 |   |   |   | (1,630,400 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                  (LOSS) BEFORE EQUITY LOSS,              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  AND                  INCOME TAXES                               |   |   | 53,145,100 |   |   |   | (1,513,600 | ) |   |   | 53,051,900 |   |   |   | (1,879,600 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  EQUITY                  IN LOSS OF AFFILIATE                    |   |   | (3,453,700 | ) |   |   | (633,600 | ) |   |   | (3,727,500 | ) |   |   | (344,300 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                  (LOSS) BEFORE                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                  TAXES                                   |   |   | 49,691,400 |   |   |   | (2,147,200 | ) |   |   | 49,324,400 |   |   |   | (2,223,900 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                  TAXES:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current                  provision for                          |   |   | (10,532,600 | ) |   |   | -- |   |   |   | (10,404,100 | ) |   |   | -- |   |
|  Deferred                  provision for                         |   |   | (7,437,600 | ) |   |   | -- |   |   |   | (7,437,600 | ) |   |   | -- |   |
|                                                                  |   |   | (17,970,200 | ) |   |   | -- |   |   |   | (17,841,700 | ) |   |   | -- |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                  INCOME (LOSS)                              |   | $ | 31,721,200 |   |   | $ | (2,147,200 | ) |   | $ | 31,482,700 |   |   | $ | (2,223,900 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  PER                  SHARE DATA                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                  INCOME (LOSS) PER SHARE, BASIC             |   | $ | 1.85 |   |   | $ | (0.13 | ) |   | $ | 1.83 |   |   | $ | (0.13 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                  INCOME (LOSS) PER SHARE, DILUTED           |   | $ | 1.78 |   |   | $ | (0.13 | ) |   | $ | 1.77 |   |   | $ | (0.13 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  BASIC                  WEIGHTED AVERAGE                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES                  OUTSTANDING                             |   |   | 17,167,704 |   |   |   | 17,149,298 |   |   |   | 17,167,704 |   |   |   | 17,149,298 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  DILUTED                  WEIGHTED AVERAGE                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES                  OUTSTANDING                             |   |   | 17,860,740 |   |   |   | 17,164,298 |   |   |   | 17,794,293 |   |   |   | 17,149,298 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                      |   |
|-------------------------------------------------------------------------|--------|
| **STATEMENTS                  OF CASH FLOWS**                           |   |
| **(Unaudited)**                                                         |   |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   | For                  six months ended June 30, |   |
|                                                                    |   | 2007 |   |   | 2006 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                  |   |   |   |   |   |   |
| Net                  income (loss)                                      |   | $ | 31,482,700 |   |   | $ | (2,223,900 | ) |
| Adjustments                  to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |
| used                  in by operating activities:                       |   |   |   |   |   |   |   |   |
| Equity                  in loss of affiliate                            |   |   | 3,727,500 |   |   |   | 344,300 |   |
| Loss                  on exchange of Enterra units                      |   |   | -- |   |   |   | 1,354,200 |   |
| Loss                  on sale of marketable securities                  |   |   | 3,418,600 |   |   |   | 53,500 |   |
| Proceeds                  from sale of trading securities               |   |   | -- |   |   |   | 1,295,500 |   |
| Gain                  on sale of assets                                 |   |   | (400,000 | ) |   |   | -- |   |
| Gain                  on sale of assets to sxr                          |   |   | (55,905,400 | ) |   |   | -- |   |
| Gain                  on foreign exchange rates                         |   |   | (251,300 | ) |   |   | -- |   |
| Income                  taxes payable                                   |   |   | 10,404,100 |   |   |   | -- |   |
| Deferred                  income taxes                                  |   |   | 7,437,500 |   |   |   | -- |   |
| Noncash                  compensation                                   |   |   | 157,000 |   |   |   | 94,200 |   |
| Change                  in valuation of derivatives                     |   |   | -- |   |   |   | 223,600 |   |
| Accretion                  of asset retirement obligation               |   |   | 1,100 |   |   |   | 99,800 |   |
| Change                  in accounts receivable                          |   |   | 72,200 |   |   |   | -- |   |
| NET                  CASH PROVIDED BY                                   |   |   |   |   |   |   |   |   |
| OPERATING                  ACTIVITIES                                   |   |   | 144,000 |   |   |   | 1,241,200 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                  |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of marketable securities            |   |   | 30,522,300 |   |   |   | -- |   |
| Proceeds                  from sale of fixed assets                     |   |   | 25,000 |   |   |   | -- |   |
| Purchase                  of treasury bills                             |   |   | (20,093,700 | ) |   |   | -- |   |
| Investment                  in affiliate                                |   |   | (2,430,200 | ) |   |   | (1,331,000 | ) |
| NET                  CASH PROVIDED BY (USED IN)                         |   |   |   |   |   |   |   |   |
| INVESTING                  ACTIVITIES                                   |   |   | 8,023,400 |   |   |   | (1,331,000 | ) |
|                                                                    |   |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVATES:                   |   |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate                      |   |   | (6,882,100 | ) |   |   | 1,413,600 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| NET                  INCREASE IN                                        |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS                              |   |   | 1,285,300 |   |   |   | 1,323,800 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |   |
| BEGINNING                  OF PERIOD                                    |   |   | 3,236,600 |   |   |   | 95,100 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |   |
| END                  OF PERIOD                                          |   | $ | 4,521,900 |   |   | $ | 1,418,900 |   |
|                                                                    |   |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                           |   |
|--------------------------------------------------------------|--------|
| **STATEMENTS                  OF CASH FLOWS**                |   |
| **(Unaudited)**                                              |   |
|                                                         |   |   |   |   |   |   |
|                                                         |   | For                  six months ended June 30, |   |
|                                                         |   | 2007 |   |   | 2006 |   |
|                                                         |   |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES:                   |   |   |   |   |   |   |
| Interest                  paid                               |   | $ | -- |   |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |   |
| Income                  tax paid                             |   | $ | -- |   |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |   |
| NONCASH                  INVESTING AND FINANCING ACTIVITIES: |   |   |   |   |   |   |   |   |
| Receipt                  of marketable securities from       |   |   |   |   |   |   |   |   |
| the                  sale of assets                          |   | $ | 49,700,300 |   |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |   |
| Unrealized                  loss                             |   | $ | 1,309,700 |   |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |   |
| Exchange                  of Enterra Acquisition Shares for  |   |   |   |   |   |   |   |   |
| Enterra                  Trust Units                         |   | $ | -- |   |   | $ | 3,315,300 |   |
|                                                         |   |   |   |   |   |   |   |   |

----

**CRESTED            CORP.**

**Notes            to Financial Statements (Unaudited) **

**Basis        of Presentation**

**Recent        Accounting Pronouncements**

**FIN        48   **

**FAS        157   **

----

**CRESTED                CORP.**

**Notes                to Financial Statements (Unaudited) **

**SAB          108**
*Considering          the Effects of Prior Year Misstatements when Quantifying Misstatements          in          Current Year Financial Statements *

**SFAS        159   **
*The        Fair Value Option for Financial Assets and Financial Liabilities *

**Marketable        Securities**

|                                                 |   |   |       |   | Market |       |       | Unrealized |   |
|------------------------------------------------------|--------|--------|------------|--------|--------|------------|------------|------------|--------|
|                                                 |   | Cost   |       |   | Value  |       |       | Loss       |   |
|                                                 |   |   |       |   |   |       |       |       |   |
| Held                    to maturity - treasury bills |   |   |       |   | $      | 20,093,700 |       |       |   |   |
|                                                 |   |   |       |   |   |       |       |       |   |   |
| Available                    for sale securities     |   |   |       |   |   |       |       |       |   |   |
|  sxr                    shares                  |   | $      | 12,844,900 |   |   | $          | 10,884,400 |       |   | $ | 1,960,500 |   |
|  Kobex                    shares                |   |   | 375,000    |   |   |       | 320,600    |       |   |   | 54,500 |   |
|                                                 |   | $      | 13,219,900 |   |   | $          | 11,205,000 |       |   | $ | 2,015,000 |   |
|                                                 |   |   |       |   |   |       |       |       |   |   |   |   |

**Long        Term Debt**

----

**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

**Other        Comprehensive Income (Loss)**

|                                                        |                             |   | Six                    months ending June 30, |    |
|-------------------------------------------------------------|----------------------------------|--------|-----------------------------------------------|---------|
|                                                        |                             |   | 2007                                          |    |   | 2006 |   |
| Net                    income/(loss)                        |                             | $      | 31,482,700                                    |    |   | $ | (2,223,900 | ) |
|                                                        |                             |   |                                          |    |   |   |   |   |   |
| Comprehensive                    loss from the              |                             |   |                                          |    |   |   |   |   |
| unrealized                    loss on marketable securities |                             |   | (2,015,000                                    | )       |   |   | -- |   |
|                                                        |                             |   |                                          |    |   |   |   |   |   |
| Deferred                    income taxes on                 |                             |   |                                          |    |   |   |   |   |
|                                                        | stock                    options |   |                                          | 705,300 |   |   |   | -- |   |
|                                                        |                             |   |                                          |    |   |   |   |   |   |
| Comprehensive                    income/(loss)              |                             | $      | 30,173,000                                    |    |   | $ | (2,223,900 | ) |
|                                                        |                             |   |                                          |    |   |   |   |   |   |

**Earnings        Per Share**

**Stock        Based Compensation**

----

**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

**Income        Taxes**

|                                                                                       |   | Three                    Months  |       |   | Six                    Months    |   |
|--------------------------------------------------------------------------------------------|--------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                       |   | Ended                            |       |   | Ended                            |   |
|                                                                                       |   | June                    30, 2007 |       |   | June                    30, 2007 |   |
| Consolidated                    book income before income tax                              |   | $                                | 49,691,400 |   |                             | $      | 49,324,400 |   |
| Permanent                    differences                                                   |   |                             | --    |   |                             |   | (205,400 | ) |
| Taxable                    income before temporary differrences                            |   | $                                | 49,691,400 |   |                             | $      | 49,119,000 |   |
|                                                                                       |   |                             |       |   |                             |   |   |   |
| Expected                    federal income tax expense (benefit) 35%                       |   | $                                | 17,320,200 |   |                             | $      | 17,191,600 |   |
|                                                                                       |   |                             |       |   |                             |   |   |   |
| Increase                    (decrease) in valuation allowance                              |   |                             |       |   |                             |   |   |   |
| Deferred                    income tax provision (benefit)                                 |   | $                                | 7,566,100  |   |                             | $      | 7,437,600 |   |
|       Current                    tax provision (refund)      |   |                             | 9,754,100  |   |                             |   | 9,754,100 |   |
| Total                    federal tax expense                                               |   |                             | 17,320,200 |   |                             |   | 17,191,700 |   |
|       State                    income tax net of fed benefit |   |                             | 650,000    |   |                             |   | 650,000 |   |
|                                                                                       |   |                             |       |   |                             |   |   |   |
|       Total                    provision                     |   | $                                | 17,970,200 |   |                             | $      | 17,841,700 |   |
|                                                                                       |   |                             |       |   |                             |   |   |   |

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**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

|                                                                 |   | June                    30, |     |   | December                    31, |   |
|----------------------------------------------------------------------|--------|-----------------------------|----------|--------|---------------------------------|--------|
|                                                                 |   | 2007                        |     |   | 2006                            |   |
| Deferred                    tax assets:                              |   |                        |     |   |                            |   |
| Deferred                    compensation                             |   | $                           | 85,100   |   |                            | $      | 81,000 |   |
| Accrued                    reclamation                               |   |                        | 18,600   |   |                            |   | 439,600 |   |
| Tax                    basis in excess of book                       |   |                        | 705,200  |   |                            |   | -- |   |
| Net                    operating loss carryforwards                  |   |                        | --  |   |                            |   | 6,976,600 |   |
| Tax                    credits (AMT credit carryover)                |   |                        | --  |   |                            |   | 44,200 |   |
| Other                                                                |   |                        | 200      |   |                            |   | --  |   |
| Total                    deferred tax assets                         |   |                        | 809,100  |   |                            |   | 7,541,400 |   |
|                                                                 |   |                        |     |   |                            |   |   |   |
| Deferred                    tax liabilities:                         |   |                        |     |   |                            |   |   |   |
| Book                    basis in excess of tax basis - Enterra Units |   |                        | --  |   |                            |   | -- |   |
| Depreciable                    assets                                |   |                        | (7,600   | )      |                            |   | (7,600 | ) |
| Total                    deferred tax liabilities                    |   |                        | (7,600   | )      |                            |   | (7,600 | ) |
|                                                                 |   |                        |     |   |                            |   |   |   |
| Net                    deferred tax assets                           |   |                        | 801,500  |   |                            |   | 7,533,800 |   |
| Valuation                    allowance                               |   |                        | --  |   |                            |   | --  |   |
| Deferred                    tax assets net of valuation allowance    |   | $                           | 801,500  |   |                            | $      | 7,533,800 |   |
|                                                                 |   |                        |     |   |                            |   |   |   |

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**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

**Sale        of Marketable Securities**

**Asset        Retirement Obligations**

| Balance                    December 31, 2006 |   | $      | 51,000 |   |
|----------------------------------------------|--------|--------|--------|--------|
| Revaluation                    of liability  |   |   | 900    |   |
| Accretion                    Expense         |   |   | 1,100  |   |
| Balance                    June 30, 2007     |   | $      | 53,000 |   |
|                                         |   |   |   |   |

**Merger        Agreement**

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**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

**Real        Estate Investment**

**Sutter        Gold Mining, Inc.**

**Uranium        One Asset Purchase Agreement Closing**

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**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

| **Revenues                    from sale of assets to sxr Uranium One** |   |   |       |
|------------------------------------------------------------------------|--------|--------|------------|
| Release                    of refundable deposit                       |   | $      | 375,000    |   |
| Relief                    from Asset Retirement Obligations            |   |   | 3,729,200  |   |
| sxr                    Uranium One purchase of UPC position            |   |   | 2,510,500  |   |
| Reimbursable                    Costs                                  |   |   | 792,600    |   |
| Receipt                    of sxr Uranium One common stock             |   |   | 49,700,300 |   |
|                                                                   |   |   | 57,107,600 |   |
|                                                                   |   |   |       |   |
| **Cost                    of sale of assets to sxr Uranium One**       |   |   |       |   |
|                                                                   |   |   |       |   |
| Reimbursable                    Costs                                  |   |   | 1,200,500  |   |
| Pro-ration                    of property taxes                        |   |   | 1,700      |   |
|                                                                   |   |   | 1,202,200  |   |
|                                                                   |   |   |       |   |
| Net                    gain before income taxes                        |   |   | 55,905,400 |   |
|                                                                   |   |   |       |   |
| Provision                    for income taxes                          |   |   | 21,395,400 |   |
|                                                                   |   |   |       |   |
| Net                    gain on sale of assets to sxr Uranium One       |   | $      | 34,510,000 |   |
|                                                                   |   |   |       |   |

**Payment        of Cash Bonus and Related Matters**

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**CRESTED              CORP.**

**Notes              to Financial Statements (Unaudited) **

**Lucky        Jack Molybdenum Property – Kobex Resources Ltd.**

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**CRESTED        CORP.**

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

**Forward        Looking Statements**

**Overview        of Business**

**Recent        Developments**

**Sale        of Uranium Assets**

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**Lucky        Jack Molybdenum Property – Kobex Resources Ltd.**

----

**Merger        Agreement**

**Mineral        Prices**

**Results        of Operations**

**Three        and Six Months Ended June 30, 2007 compared with the Three and Six Months        Ended        June 30, 2006**

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**Liquidity        and Capital Resources**

**Capital        Resources**

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**Capital        Requirements                                                      **

----

----

**Contractual        Obligations**

**Critical        Accounting Policies**

*Investments*

*Cash        Equivalents*

*Marketable        Securities*

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*Fair        Value of Financial Instruments*

*Stock        Based Compensation*

*Asset        Retirement Obligations*

*Liabilities        Held for Sale*

*Revenue        Recognition*

*Income        Taxes*

*Use        of Accounting Estimates*

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

**ITEM        4.  Controls and Procedures**

**PART        II.  OTHER INFORMATION**

**ITEM        1.  Legal Proceedings**

***Water        Rights Litigation –Lucky Jack Molybdenum Property***

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| 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, the                  Company and USE 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 USECC have reached a                  settlement and signed a Stipulation to protect USECC’s water rights                  pursuant to a proposed final decree.  This Stipulation has been                  signed by the Water Referee and has been submitted 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.  On August 3, 2007, the Parties signed a                  Stipulation recognizing USECC and most other Opposers position                  is 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 Stipulation has been submitted to the Water Court                  for approval.  Although future Water Court proceedings in this                  case will involve quantification of the in-stream flows claimed                  the United                  States of America for the Black Canyon Park, USECC’s water rights will be                  protected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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***Quiet        Title Litigation – Sutter Gold Mining Inc.***

**ITEM        1A. Risk Factors**

**The        following risk factors should be considered in evaluating the information        in        this Form 10-Q.  The reader should also consider risk factors        discussed in our annual report for the year ended December 31, 2006 filed        on        Form 10-K.**

***We        may be classified as an inadvertent investment        company***

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**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 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 |
|   |   |      |                                                                                                                                                                                        |

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|   | (b)    | **Reports                  on Form 8-K.**  The Company filed four reports on Form                  8-K for the quarter ended June 30, 2007.  The events reported                  were as follows: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                   |   |
|   |   | 1.                                                                                                                                                                                                                     | The                  report filed on April 9, 2007, under Item 1.01 referenced the formal                  Exploration, Development and Mine Operating Agreement with Kobex                  Resources                  Ltd. |
|   |   |                                                                                                                                                                                                                   |   |
|   |   | 2.                                                                                                                                                                                                                     | The                  report filed on May 4, 2007, under Items 2.01, 9.01, 5.01 and 8.01                  referenced the sale of uranium assets to sxr Uranium One Inc. including                  Pro Forma Financial Information, the approval of Compensation Committee                  recommendations and tax obligation. |
|   |   |                                                                                                                                                                                                                   |   |
|   |   | 3.                                                                                                                                                                                                                     | The                  report filed on June 4, 2007, under Item 8.01 referenced the TSX-V                  approval of the Exploration, Development and Mine Operating Agreement                  with                  Kobex Resources Ltd. |
|   |   |                                                                                                                                                                                                                   |   |
|   |   | 4.                                                                                                                                                                                                                     | The                  report filed on June 27, 2007 under Item 8.01 referenced the Credit                  Facility for Sutter Gold Mining                  Inc. |

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**SIGNATURES**

|                                   |   | CRESTED                  CORP.                   |
|----------------------------------------|--------|--------------------------------------------------|
|                                   |   | (Company)                                        |
|                                   |   |                                             |
|                                   |   |                                             |
|                                   |   |                                             |
| Date:                  August 16, 2007 | By:    |  /s/Harold                  F. Herron       |
|                                   |   | HAROLD                  F. HERRON,               |
|                                   |   | Co-Chairman                  and President       |
|                                   |   |                                             |
|                                   |   |                                             |
|                                   |   |                                             |
|                                   |   |                                             |
| Date:                  August 16, 2007 | By:    |  /s/Robert                  Scott Lorimer   |
|                                   |   | ROBERT                  SCOTT LORIMER            |
|                                   |   | Principal                  Financial Officer and |
|                                   |   | Chief                  Accounting Officer        |

----