----

| x      | Quarterly                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   | For                the quarter and nine months ended September 30, 2005 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 November 11, 2005 |
|----------------------------------------------|--------|--------------------------------------------------------|
| Common                stock, $.001 par value |   | 17,164,298                                             |

----

**CRESTED      CORP.**

**INDEX**

|                        |                                                                                                      | Page                No.     |
|-----------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------|
| **PART                I.**  | **FINANCIAL                INFORMATION**                                                                  |                        |
|                        |                                                                                                      |                        |
| ITEM                1.      | Financial                Statements:                                                                      |                        |
|                        |                                                                                                      |                        |
|                        | Condensed                Balance Sheets                                                                   |                        |
|                        |                   September 30, 2005 (Unaudited) and December 31, 2004                (Audited) | 3-4                         |
|                        |                                                                                                      |                        |
|                        | Condensed                Statements of Operations                (Unaudited)                              |                        |
|                        |                   Three and Nine Months Ended September 30, 2005 and 2004                       | 5                           |
|                        |                                                                                                      |                        |
|                        | Condensed                Statements of Cash Flows                (Unaudited)                              |                        |
|                        |                   Nine Months Ended September 30, 2005 and 2004                                 | 6                           |
|                        |                                                                                                      |                        |
|                        | Notes                to Condensed Financial Statements                (Unaudited)                         | 8-11                        |
|                        |                                                                                                      |                        |
| ITEM                2.      | Management’s                Discussion and Analysis                of                               |                        |
|                        |                   Financial Condition and Results of Operations                                 | 12-17                       |
|                        |                                                                                                      |                        |
| ITEM              3.        | Quantitative              and Qualitative Disclosures About Market              Risk                 | 18-19                       |
|                        |                                                                                                      |                        |
| ITEM                4.      | Controls                and Procedures                                                                    | 20                          |
|                        |                                                                                                      |                        |
| **PART                II.** | **OTHER                INFORMATION**                                                                      |                        |
|                        |                                                                                                      |                        |
| ITEM                1.      | Legal                Proceedings                                                                          | 21-22                       |
|                        |                                                                                                      |                        |
| ITEM                2.      | Changes                in Securities and Use of Proceeds                                                  | 22                          |
|                        |                                                                                                      |                        |
| ITEM                3.      | Defaults                upon Senior Securities                                                            | 22                          |
|                        |                                                                                                      |                        |
| ITEM                4.      | Submission                of Matters to a Vote of Security                Holders                         | 23                          |
|                        |                                                                                                      |                        |
| ITEM                5.      | Other                Information                                                                          | 23                          |
|                        |                                                                                                      |                        |
| ITEM                6.      | Exhibits                and Reports on Form 8-K                                                           | 24                          |
|                        |                                                                                                      |                        |
|                        | Signatures                                                                                                | 25                          |
|                        |                                                                                                      |                        |
|                        | Certifications                                                                                            | See                Exhibits |

----

| **CRESTED                  CORP.**                                         |   |
|----------------------------------------------------------------------------|--------|
| **CONDENSED                  BALANCE SHEETS**                              |   |
| **ASSETS**                                                                 |   |
|                                                                       |   |   |   |   |   |   |   |
|                                                                            |   |   | September                  30,  |   |   | December                  31, |   |
|                                                                       |   |   | 2005 |   |   | 2004 |   |
|                                                                            |   |   | (Unaudited)  |   |   | (Audited) |   |
| CURRENT                  ASSETS:                                           |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                 |   | $ | 94,800 |   | $ | 3,800 |   |
| Marketable                  securities                                     |   |   | -- |   |   | -- |   |
|                                                                       |   |   | 94,800 |   |   | 3,800 |   |
|                                                                       |   |   |   |   |   |   |   |
| INVESTMENTS:                                                               |   |   |   |   |   |   |   |
| Affiliates                                                                 |   |   | 3,321,600 |   |   | 2,969,800 |   |
| Non-affiliated                  companies                                  |   |   | 5,004,700 |   |   | -- |   |
|                                                                       |   |   | 8,326,300 |   |   | 2,969,800 |   |
|                                                                       |   |   |   |   |   |   |   |
| 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 |   |
|                                                                       |   | $ | 8,431,100 |   | $ | 2,983,600 |   |
|                                                                       |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                          |
|-----------------------------------------------------------------------------|
| **CONDENSED                  BALANCE SHEETS**                               |
| **LIABILITIES                  AND SHAREHOLDERS' DEFICIT**                  |
|                                                                        |   |   |   |   |   |   |   |
|                                                                             |   |   | September                  30,  |   |   | December                  31, |   |
|                                                                        |   |   | 2005 |   |   | 2004 |   |
|                                                                             |   |   | (Unaudited)  |   |   | (Audited) |   |
| CURRENT                  LIABILITIES:                                       |   |   |   |   |   |   |   |
| Current                  debt to affiliate                                  |   | $ | 9,979,600 |   | $ | 9,650,900 |   |
| Deferred                  income                                            |   |   | 424,500 |   |   | -- |   |
| Taxes                  payable                                              |   |   | - |   |   | -- |   |
| Asset                  retirement obligation                                |   |   | 96,400 |   |   | 96,400 |   |
|                                                                        |   |   | 10,500,500 |   |   | 9,747,300 |   |
|                                                                        |   |   |   |   |   |   |   |
| COMMITMENT                  TO FUND EQUITY INVESTEES                        |   |   | 215,600 |   |   | 215,600 |   |
|                                                                        |   |   |   |   |   |   |   |
| ASSET                  RETIREMENT OBLIGATION                                |   |   | 1,141,600 |   |   | 1,073,500 |   |
|                                                                        |   |   |   |   |   |   |   |
| 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; unlimited shares            |   |   |   |   |   |   |   |
|  authorized;                  17,149,298 and 17,137,298 shares         |   |   |   |   |   |   |   |
|  issued                  and outstanding                               |   |   | 17,200 |   |   | 17,200 |   |
| Additional                  paid-in capital                                 |   |   | 11,814,400 |   |   | 11,809,600 |   |
| Accumulated                  deficit                                        |   |   | (15,268,300 | ) |   | (19,889,700 | ) |
|                                                                        |   |   | (3,436,700 | ) |   | (8,062,900 | ) |
|                                                                        |   | $ | 8,431,100 |   | $ | 2,983,600 |   |
|                                                                        |   |   |   |   |   |   |   |

Index

----

| **CRESTED                  CORP.**                                 |   |
|--------------------------------------------------------------------|--------|
| **CONDENSED                  STATEMENTS OF OPERATIONS**            |   |
| **(Unaudited)**                                                    |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | Three                  months ended September 30,  | Nine                  months ended September 30, |
|                                                               |   |   | 2005 |   |   | 2004 |   |   | 2005 |   |   | 2004 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                          |   | $ | -- |   | $ | -- |   | $ | -- |   | $ | -- |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS                  AND EXPENSES:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accretion                  of asset retirement obligation          |   |   | 22,700 |   |   | 22,800 |   |   | 68,100 |   |   | 68,100 |   |
| Change                  in estimate of asset retirement obligation |   |   | -- |   |   | -- |   |   | -- |   |   | 25,800 |   |
| General                  and administrative                        |   |   | 50,700 |   |   | 50,600 |   |   | 161,500 |   |   | 183,600 |   |
|                                                               |   |   | 73,400 |   |   | 73,400 |   |   | 229,600 |   |   | 277,500 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING                  LOSS                                    |   |   | (73,400 | ) |   | (73,400 | ) |   | (229,600 | ) |   | (277,500 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  INCOME & ESPENSES:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                  income                                   |   |   | 12,400 |   |   | -- |   |   | 12,400 |   |   | -- |   |
| Interest                  income                                   |   |   | 800 |   |   | -- |   |   | 800 |   |   | -- |   |
| Gain                  on sale of marketable securities             |   |   | 448,300 |   |   | -- |   |   | 448,300 |   |   | -- |   |
| Gain                  (loss) on sale of investments                |   |   | (65,800 | ) |   | -- |   |   | 5,392,200 |   |   | -- |   |
|                                                               |   |   | 395,700 |   |   | -- |   |   | 5,853,700 |   |   | -- |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GAIN                  (LOSS) BEFORE EQUITY LOSS, AND               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES                        |   |   | 322,300 |   |   | (73,400 | ) |   | 5,624,100 |   |   | (277,500 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY                  IN GAIN (LOSS) OF AFFILIATE                |   |   | 187,600 |   |   | (300,600 | ) |   | (902,700 | ) |   | (1,089,300 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GAIN                  (LOSS) BEFORE PROVISION                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR                  INCOME TAXES                                  |   |   | 509,900 |   |   | (374,000 | ) |   | 4,721,400 |   |   | (1,366,800 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES                        |   |   | -- |   |   | -- |   |   | (100,000 | ) |   | -- |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  GAIN (LOSS)                                   |   | $ | 509,900 |   | $ | (374,000 | ) | $ | 4,621,400 |   | $ | (1,366,800 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER                  SHARE DATA                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  GAIN (LOSS) PER SHARE, BASIC                  |   | $ | 0.03 |   | $ | (0.02 | ) | $ | 0.27 |   | $ | (0.08 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  GAIN (LOSS) PER SHARE, DILUTED                |   | $ | 0.03 |   | $ | (0.02 | ) | $ | 0.27 |   | $ | (0.08 | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                  WEIGHTED AVERAGE                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                  OUTSTANDING                                |   |   | 17,149,298 |   |   | 17,124,639 |   |   | 17,145,298 |   |   | 17,120,278 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED                  WEIGHTED AVERAGE                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                  OUTSTANDING                                |   |   | 17,164,298 |   |   | 17,124,639 |   |   | 17,160,298 |   |   | 17,120,278 |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |

Index

----

| **CRESTED                  CORP.**                                    |   |
|-----------------------------------------------------------------------|--------|
| **CONDENSED                  STATEMENTS OF CASH FLOWS**               |   |
| **(Unaudited)**                                                       |   |
|                                                                  |   |   |   |   |   |
|                                                                  |   | Nine                  months ended September 30, |   |
|                                                                  |   | 2005 |   | 2004 |   |
|                                                                  |   |   |   |   |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                |   |   |   |   |   |   |   |
| Net                  gain (loss)                                      |   | $ | 4,621,400 |   | $ | (1,366,800 | ) |
| Adjustments                  to reconcile net gain (loss) to net cash |   |   |   |   |   |   |   |
| used                  in operating activities:                        |   |   |   |   |   |   |   |
| Equity                  in loss of affiliate                          |   |   | 902,700 |   |   | 1,089,300 |   |
| Gain                  on sale of investments                          |   |   | (5,392,200 | ) |   | -- |   |
| Gain                  on sale of marketable securities                |   |   | (448,300 | ) |   | -- |   |
| Change                  in asset retirement obligation                |   |   | -- |   |   | 25,800 |   |
| Accretion                  of asset retirement obligation             |   |   | 68,100 |   |   | 68,100 |   |
| Noncash                  compensation                                 |   |   | 4,800 |   |   | 4,800 |   |
| NET                  CASH USED IN OPERATING ACTIVITIES                |   |   | (243,500 | ) |   | (178,800 | ) |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                |   |   |   |   |   |   |   |
| Investment                  in non-affiliated companies               |   |   | (65,800 | ) |   | -- |   |
| Proceeds                  from sale of marketable securities          |   |   | 2,177,800 |   |   | -- |   |
| Investment                  in affiliate                              |   |   | (1,905,800 | ) |   | (2,063,800 | ) |
| NET                  CASH PROVIDED BY (USED IN)                       |   |   |   |   |   |   |   |
| INVESTING                  ACTIVITIES                                 |   |   | 206,200 |   |   | (2,063,800 | ) |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate                    |   |   | 128,300 |   |   | 2,243,100 |   |
|                                                                  |   |   |   |   |   |   |   |
| NET                  INCREASE IN                                      |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS                            |   |   | 91,000 |   |   | 500 |   |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                         |   |   |   |   |   |   |   |
| BEGINNING                  OF PERIOD                                  |   |   | 3,800 |   |   | 3,300 |   |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                         |   |   |   |   |   |   |   |
| END                  OF PERIOD                                        |   | $ | 94,800 |   | $ | 3,800 |   |
|                                                                  |   |   |   |   |   |   |   |

Index

----

| **CRESTED                  CORP.**                           |   |
|--------------------------------------------------------------|--------|
| **CONDENSED                  STATEMENTS OF CASH FLOWS**      |   |
| **(Unaudited)**                                              |   |
| (continued)                                                  |   |   |   |   |   |
|                                                         |   | Nine                  months ended September 30, |   |
|                                                         |   | 2005 |   | 2004 |   |
|                                                         |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES:                   |   |   |   |   |   |
| Interest                  paid                               |   | $ | -- |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Income                  tax paid                             |   | $ | -- |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| NONCASH                  INVESTING AND FINANCING ACTIVITIES: |   |   |   |
| Issuance                  of stock to outside directors      |   | $ | 4,800 |   | $ | 4,800 |   |
|                                                         |   |   |   |   |   |   |   |
| Investment                  in Non-affiliated companies      |   | $ | 6,734,200 |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Deferred                  gain on sale of Rocky Mountain Gas |   | $ | 424,500 |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate           |   | $ | 200,400 |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Investment                  in affiliate                     |   | $ | 651,300 |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |

Index

----

**CRESTED            CORP.**

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

1)

----

**CRESTED            CORP.**

|                                                     |   | September                30, 2005 |       |
|----------------------------------------------------------|--------|-----------------------------------|------------|
| Deferred                tax assets:                      |   |                              |       |   |
| Deferred                compensation                     |   | $                                 | 3,500      |   |
| Deferred                gains                            |   |                              | 109,300    |   |
| Allowances                and impairments                |   |                              | 254,600    |   |
| Net                operating loss carry-forwards         |   |                              | 4,377,500  |   |
| Tax                credits including AMT                 |   |                              | 115,400    |   |
| Total                deferred tax assets                 |   |                              | 4,860,300  |   |
|                                                     |   |                              |       |   |
| Deferred                tax liabilities:                 |   |                              |       |   |
| Basis                difference of investments           |   |                              | (789,700   | ) |
| Development                and exploration costs         |   |                              | (37,200    | ) |
| Total                deferred tax liabilities            |   |                              | (826,900   | ) |
| Net                deferred tax assets - all non-current |   |                              | 4,033,400  |   |
|                                                     |   |                              |       |   |
| Valuation                allowance                       |   |                              | (4,033,400 | ) |
| Net                deferred tax asset                    |   | $                                 | --         |   |

|                                                                                                                                                                  |   | Nine                Months Ended  |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                                                                  |   | September                30, 2005 |       |
| Expected                federal income tax expense                                                                                                                    |   | $                                 | 1,547,000  |   |
| Losses                from subsidiaries not consolidated                for tax purposes, utilization                of net operating losses                and other |   |                              | (74,000    | ) |
| Valuation                allowance (decrease)                                                                                                                         |   |                              | (1,373,000 | ) |
| Income                taxes                                                                                                                                           |   | $                                 | 100,000    |   |

----

**CRESTED            CORP.**

|                                                                                                                                                                                                   |   | Nine                months Ended |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|------------|
|                                                                                                                                                                                                   |   | September                30,     |       |
|                                                                                                                                                                                                   |   | 2005                             |       | 2004 |   |
| Net                Gain (Loss), as reported                                                                                                                                                            |   | $                                | 4,621,400  |   | $ | (                1,366,800 | ) |
| Deduct:                Total stock-based employee compensation expense determined under                fair                value based method for all award, net of related tax                effects |   | $                                | (1,956,400 | ) |   | -- |   |
| Pro                forma net profit (loss)                                                                                                                                                             |   | $                                | 2,665,000  |   | $ | (                1,366,800 | ) |
|                                                                                                                                                                                                   |   |                             |       |   |   |   |   |
| Earnings                per share:                                                                                                                                                                     |   |                             |       |   |   |   |   |
| Basic                - as reported                                                                                                                                                                     |   | $                                | 0.27       |   | $ | (0.08 | ) |
| Basic                - pro forma                                                                                                                                                                       |   | $                                | 0.16       |   | $ | (0.08 | ) |
| Diluted                - as reported                                                                                                                                                                   |   | $                                | 0.27       |   | $ | (0.08 | ) |
| Diluted                - pro forma                                                                                                                                                                     |   | $                                | 0.16       |   | $ | (0.08 | ) |
|                                                                                                                                                                                                   |   |                             |       |   |   |   |   |
| Basic                weighted average shares outstanding                                                                                                                                               |   |                             | 17,145,298 |   |   | 17,120,278 |   |
|                                                                                                                                                                                                   |   |                             |       |   |   |   |   |
| Diluted                weighted shares outstanding                                                                                                                                                     |   |                             | 17,160,298 |   |   | 17,120,278 |   |

----

**CRESTED            CORP.**

| Balance                December 31, 2004            |   | $      | 1,169,900 |   |
|-----------------------------------------------------|--------|--------|-----------|--------|
| Addition                to Liability                |   |   | --        |   |
| Liability                Settled                    |   |   | --        |   |
| Accretion                Expense - 8% discount rate |   |   | 68,100    |   |
| Balance September                30, 2005      |   | $      | 1,238,000 |   |

Index

----

**CRESTED      CORP.**

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

**General      Overview**

**Liquidity      and Capital Resources**

----

**Capital      Resources**

----

**Capital      Requirements**

----

**Results      of Operations**

**Quarter      and Nine Months Ended September 30, 2005 compared with the Quarter and Nine      Months Ended September 30, 2004**

----

**Nine      Months Ended September 30, 2004 compared with the Nine Months Ended September      30, 2003**

----

**Forward      Looking Statements**

**Critical      Accounting Policies**

**Employee      Stock-Based Compensation**
*      Accounting for Stock-Based Compensation,*
*Accounting      for Stock-Based Compensation*
*Accounting      for Stock Issued to Employees*

**Asset      Retirement Obligation**

**Contractual      Obligations**

**Recent      Accounting Pronouncements**

Index

----

**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.**

** **

**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; 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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | 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                molybdenum property (in which the Company will have a substantial                interest                at such time as Phelps-Dodge conveys the Mt. Emmons properties back                to USE                and the Company) 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 mining operation will be                substantial. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Compliance      with environmental regulations may be costly**

Index

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

Index

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**PART      II. OTHER INFORMATION**

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

**Sheep      Mountain Partners**

**Phelps      Dodge**

----

**Coastline      Capital Partners**

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

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

Index

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

| Name                of Director |   | Term                Expires |   | For        |   | Abstain |
|---------------------------------|--------|-----------------------------|--------|------------|--------|---------|
|                            |   |                        |   |       |   |    |
| Daniel                P. Svilar |   | 2008                        |   | 15,877,442 |   | 6,275   |
|                            |   |                        |   |       |   |    |

|                                                                                                                     |   | Votes                For |   | Votes                Against |   | Abstain |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|------------------------------|--------|---------|
|                                                                                                                     |   |                     |   |                         |   |    |
| Appointment                of Epstein, Weber & Conover, PLC as independent                auditors for calendar 2005 |   | 15,877,467               |   | 1,350                        |   | 4,900   |

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

Index

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**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 three reports on Form 8-K for the quarter ended                September 30, 2005. The events reported were as follows: |
|   |   |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                    |
|   |   | 1.                                                                                                                                                                                               | The                report filed on August 5, 2005, under Item 8.01 referenced the Company                and                U.S. Energy resuming exploratory drilling at its Sheep Mountain uranium                property.                                            |
|   |   |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                    |
|   |   | 2.                                                                                                                                                                                               | The                report filed on September 1, 2005, under Item 8.01 referenced the                outcome                of a Status Hearing in the litigation/arbitration with Nukem,                Inc.                                                            |
|   |   |                                                                                                                                                                                             |                                                                                                                                                                                                                                                                    |
|   |   | 3.                                                                                                                                                                                               | The                report filed on September 7, 2005, under Item 8.01 referenced an                additional Agreement between the Company, U.S. Energy and Uranium                Power                Corp. to acquire additional uranium                properties. |

Index

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**SIGNATURES**

|                                   |   | CRESTED                CORP.                   |   |
|----------------------------------------|--------|------------------------------------------------|--------|
|                                   |   | (Company)                                      |   |
|                                   |   |                                           |   |
|                                   |   |                                           |   |
|                                   |   |                                           |   |
| Date:                November 14, 2005 | By:    | /s/Harold                F. Herron             |   |
|                                   |   | HAROLD                F. HERRON,               |   |
|                                   |   | President                                      |   |
|                                   |   |                                           |   |
|                                   |   |                                           |   |
|                                   |   |                                           |   |
|                                   |   |                                           |   |
| Date:                November 14, 2005 | By:    | /s/Robert                Scott Lorimer         |   |
|                                   |   | ROBERT                SCOTT LORIMER            |   |
|                                   |   | Principal                Financial Officer and |   |
|                                   |   | Chief                Accounting Officer        |   |

Index

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