----

| x      | Quarterly                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   | For                the quarter ended March 31, 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 8****th****West, Riverton, WY**      |   | **82501**                          |
| (Address                of principal executive offices)         |   | (Zip                Code)          |
|                                                            |   |                               |
| Company's                telephone number, including area code: |   | **(307)                856-9271**  |

----

| Class                                        |   | Outstanding                Shares at May 15, 2007 |
|----------------------------------------------|--------|---------------------------------------------------|
| Common                stock, $.001 par value |   | 17,182,704                                        |

----

**CRESTED      CORP.**

**INDEX**

|                        |                                                                      | Page                No.     |
|-----------------------------|---------------------------------------------------------------------------|-----------------------------|
| **PART                I.**  | **FINANCIAL                INFORMATION**                                  |                        |
|                        |                                                                      |                        |
| ITEM                1.      | Financial                Statements.                                      |                        |
|                        |                                                                      |                        |
|                        | Condensed                Balance Sheets (Unaudited)                       |                        |
|                        | March                31, 2007 and December 31, 2006                       | 4                           |
|                        |                                                                      |                        |
|                        | Condensed                Statements of Operations (Unaudited)             |                        |
|                        | Three                Months Ended March 31, 2007 and 2006                 | 5                           |
|                        |                                                                      |                        |
|                        | Condensed                Statements of Cash Flows (Unaudited)             |                        |
|                        | Three                Months Ended March 31, 2007 and 2006                 | 6                           |
|                        |                                                                      |                        |
|                        | Notes                to Condensed Financial Statements (Unaudited)        | 7-19                        |
|                        |                                                                      |                        |
| ITEM                2.      | Management’s                Discussion and Analysis of              | 20-26                       |
|                        | Financial                Condition and Results of Operations              |                        |
|                        |                                                                      |                        |
| ITEM                3.      | Quantitative                and Qualitative Disclosures About Market Risk | 26                          |
|                        |                                                                      |                        |
| ITEM                4.      | Controls                and Procedures                                    | 27                          |
|                        |                                                                      |                        |
| **PART                II.** | **OTHER                INFORMATION**                                      |                        |
|                        |                                                                      |                        |
| ITEM                1.      | Legal                Proceedings                                          | 27-29                       |
|                        |                                                                      |                        |
| ITEM                2.      | Changes                in Securities and Use of Proceeds                  | 29                          |
|                        |                                                                      |                        |
| ITEM                3.      | Defaults                upon Senior Securities                            | 29                          |
|                        |                                                                      |                        |
| ITEM                4.      | Submission                of Matters to a Vote of Security Holders        | 29                          |
|                        |                                                                      |                        |
| ITEM                5.      | Other                Information                                          | 29                          |
|                        |                                                                      |                        |
| ITEM                6.      | Exhibits                and Reports on Form 8-K                           | 30                          |
|                        |                                                                      |                        |
|                        | Signatures                                                                | 31                          |
|                        |                                                                      |                        |
|                        | Certifications                                                            | See                Exhibits |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1. Financial Statements**

| **CRESTED                  CORP.**                                          |   |
|-----------------------------------------------------------------------------|--------|
| **BALANCE                  SHEETS**                                         |   |
| **ASSETS**                                                                  |   |
|                                                                        |   |   |   |   |   |
|                                                                        |   | March                  31, |   | December                  31, |   |
|                                                                        |   | 2007 |   | 2006 |   |
|                                                                        |   | (Unaudited) |   | (Unaudited) |   |
| CURRENT                  ASSETS:                                            |   |   |   |   |   |
| Cash                  and cash equivalents                             |   | $ | 1,657,500 |   | $ | 3,236,600 |   |
| Accounts                  receivable                                   |   |   | -- |   |   | 72,200 |   |
| Deferred                  tax asset                                    |   |   | 7,571,000 |   |   | 7,442,500 |   |
|                                                                        |   |   | 9,228,500 |   |   | 10,751,300 |   |
|                                                                        |   |   |   |   |   |   |   |
| INVESTMENT                  IN AFFILIATE                                    |   |   | 5,276,500 |   |   | 4,280,400 |   |
|                                                                        |   |   |   |   |   |   |   |
| DEFERRED                  TAX ASSETS                                        |   |   | 91,300 |   |   | 91,300 |   |
|                                                                        |   |   |   |   |   |   |   |
|                                                                        |   | $ | 14,596,300 |   | $ | 15,123,000 |   |
|                                                                        |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS' EQUITY**                   |   |
|                                                                        |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES:                                       |   |   |   |   |   |   |   |
| Current                  debt to affiliate                             |   | $ | 12,963,900 |   | $ | 13,277,200 |   |
| Liabilities                  held for sale                             |   |   | 1,229,000 |   |   | 1,204,900 |   |
|                                                                        |   |   | 14,192,900 |   |   | 14,482,100 |   |
|                                                                        |   |   |   |   |   |   |   |
| COMMITMENT                  TO FUND EQUITY INVESTEES                        |   |   | 215,600 |   |   | 215,600 |   |
|                                                                        |   |   |   |   |   |   |   |
| ASSET                  RETIREMENT OBLIGATION                                |   |   | 52,000 |   |   | 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 |   |
| Accumulated                  deficit                                   |   |   | (11,735,900 | ) |   | (11,497,400 | ) |
|                                                                        |   |   | 125,700 |   |   | 364,200 |   |
|                                                                        |   | $ | 14,596,300 |   | $ | 15,123,000 |   |
|                                                                        |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                               |   |
|------------------------------------------------------------------|--------|
| **STATEMENTS                  OF OPERATIONS**                    |   |
| **(Unaudited)**                                                  |   |
|                                                             |   |   |   |   |   |
|                                                             |   | Three                  months ended March 31, |   |
|                                                             |   | 2007 |   | 2006 |   |
|                                                             |   |   |   |   |   |
| REVENUES:                                                        |   | $ | -- |   | $ | -- |   |
|                                                             |   |   |   |   |   |   |   |
| COSTS                  AND EXPENSES:                             |   |   |   |   |   |   |   |
| Accretion                  of asset retirement obligation   |   |   | 25,100 |   |   | 70,600 |   |
| General                  and administrative                 |   |   | 95,000 |   |   | 88,300 |   |
|                                                             |   |   | 120,100 |   |   | 158,900 |   |
| LOSS                  FROM CONTINUING OPERATIONS                 |   |   | (120,100 | ) |   | (158,900 | ) |
|                                                             |   |   |   |   |   |   |   |
| OTHER                  REVENUES AND (EXPENSES):                  |   |   |   |   |   |   |   |
| Interest                                                    |   |   | 26,900 |   |   | 400 |   |
| Loss                  on valuation of derivatives           |   |   | -- |   |   | (207,500 | ) |
|                                                             |   |   | 26,900 |   |   | (207,100 | ) |
|                                                             |   |   |   |   |   |   |   |
| LOSS                  BEFORE EQUITY LOSS,                        |   |   |   |   |   |   |   |
| AND                  INCOME TAXES                           |   |   | (93,200 | ) |   | (366,000 | ) |
|                                                             |   |   |   |   |   |   |   |
| EQUITY                  IN (LOSS) GAIN OF AFFILIATE              |   |   | (273,800 | ) |   | 289,300 |   |
|                                                             |   |   |   |   |   |   |   |
| LOSS                  BEFORE INCOME TAXES                        |   |   | (367,000 | ) |   | (76,700 | ) |
|                                                             |   |   |   |   |   |   |   |
| BENEFIT                  FROM INCOME TAXES                       |   |   | 128,500 |   |   | -- |   |
|                                                             |   |   |   |   |   |   |   |
| NET                  LOSS                                        |   | $ | (238,500 | ) | $ | (76,700 | ) |
|                                                             |   |   |   |   |   |   |   |
| PER                  SHARE DATA                                  |   |   |   |   |   |   |   |
| NET                  LOSS PER SHARE,                        |   |   |   |   |   |   |   |
|  BASIC                  AND DILUTED                         |   | $ | (0.01 | ) |   | * |   |
|                                                             |   |   |   |   |   |   |   |
| WEIGHTED                  AVERAGE                                |   |   |   |   |   |   |   |
| SHARES                  OUTSTANDING                         |   |   | 17,167,704 |   |   | 17,149,298 |   |
|                                                             |   |   |   |   |   |   |   |
|  *                  Less than $0.01 per share               |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                             |   |
|----------------------------------------------------------------|--------|
| **STATEMENTS                  OF CASH FLOWS**                  |   |
| **(Unaudited)**                                                |   |
|                                                           |   |   |   |   |   |
|                                                           |   | Three                  months ended March 31, |   |
|                                                           |   | 2007 |   | 2006 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:         |   |   |   |   |   |
| Net                  loss                                      |   | $ | (238,500 | ) | $ | (76,700 | ) |
| Adjustments                  to reconcile net loss to net cash |   |   |   |   |   |   |   |
| provided                  by (used in) operating activities:   |   |   |   |   |   |   |   |
| Equity                  in loss of affiliate                   |   |   | 273,800 |   |   | (289,300 | ) |
| Benefit                  from deferred taxes                   |   |   | (128,500 | ) |   | -- |   |
| Noncash                  compensation                          |   |   | 36,800 |   |   | 62,300 |   |
| Change                  in valuation of derivatives            |   |   | -- |   |   | 207,500 |   |
| Accretion                  of asset retirement obligation      |   |   | 25,100 |   |   | 70,500 |   |
| Change                  in accounts receivable                 |   |   | 72,200 |   |   | -- |   |
| NET                  CASH PROVIDED BY (USED IN)                |   |   |   |   |   |   |   |
| OPERATING                  ACTIVITIES                          |   |   | 40,900 |   |   | (25,700 | ) |
|                                                           |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:         |   |   |   |   |   |   |   |
| Investment                  in affiliate                       |   |   | (1,700,000 | ) |   | (509,700 | ) |
|                                                           |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVATES:          |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate             |   |   | 80,000 |   |   | 525,900 |   |
|                                                           |   |   |   |   |   |   |   |
| NET                  INCREASE IN                               |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS                     |   |   | (1,579,100 | ) |   | (9,500 | ) |
|                                                           |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                  |   |   |   |   |   |   |   |
| BEGINNING                  OF PERIOD                           |   |   | 3,236,600 |   |   | 95,100 |   |
|                                                           |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                  |   |   |   |   |   |   |   |
| END                  OF PERIOD                                 |   | $ | 1,657,500 |   | $ | 85,600 |   |
|                                                           |   |   |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES:                     |   |   |   |   |   |   |   |
| Interest                  paid                                 |   | $ | -- |   | $ | -- |   |
|                                                           |   |   |   |   |   |   |   |
| Income                  tax paid                               |   | $ | -- |   | $ | -- |   |
|                                                           |   |   |   |   |   |   |   |

----

**CRESTED            CORP.**

**FIN      48**

**FAS      157**

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

----

**CRESTED            CORP**

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

----

**CRESTED              CORP**

|                                                            |   | **March                  31,** |      | **December                  31,** |   |
|-----------------------------------------------------------------|--------|--------------------------------|-----------|-----------------------------------|--------|
|                                                            |   | **2007**                       |      | **2006**                          |   |
| Deferred                  tax assets:                           |   |                           |      |                              |   |
| Deferred                  compensation                          |   | $                              | 81,000    |                              | $      | 81,000 |   |
| Accrued                  reclamation                            |   |                           | 448,400   |                              |   | 439,600 |   |
| Tax                  basis in excess of book                    |   |                           | -         |                              |   | - |   |
| Net                  operating loss carryforwards               |   |                           | 7,096,300 |                              |   | 6,976,600 |   |
| Tax                  credits (AMT credit carryover)             |   |                           | 44,200    |                              |   | 44,200 |   |
| Total                  deferred tax assets                      |   |                           | 7,669,900 |                              |   | 7,541,400 |   |
|                                                            |   |                           |      |                              |   |   |   |
| Non-deductible                  reserves and other              |   |                           | (7,600    | )                                 |   | (7,600 | ) |
| Total                  deferred tax liabilities                 |   |                           | (7,600    | )                                 |   | (7,600 | ) |
|                                                            |   |                           |      |                              |   |   |   |
| Net                  deferred tax assets                        |   |                           | 7,662,300 |                              |   | 7,533,800 |   |
| Valuation                  allowance                            |   |                           | -         |                              |   | - |   |
| Deferred                  tax assets net of valuation allowance |   | $                              | 7,662,300 |                              | $      | 7,533,800 |   |
|                                                            |   |                           |      |                              |   |   |   |

----

**CRESTED              CORP**

| Balance                    December 31, 2006                |   | $      | 51,000  |   |
|-------------------------------------------------------------|--------|--------|---------|--------|
| Accretion                    Expense                        |   |   | 25,100  |   |
| Reclassification                    to liabilities for sale |   |   | (24,100 | )      |
| Balance                    March 31, 2007                   |   | $      | 52,000  |   |
|                                                        |   |   |    |   |

----

**CRESTED              CORP**

----

**CRESTED              CORP**

**Subsequent        Events**

**Uranium        One Asset Purchase Agreement Closing - See Form 8K filed on May 4,        2007**

----

**CRESTED              CORP**

| ·   | $750,000                cash (paid in advance on July 13,                2006). |
|--------------------|---------------------------------------------------------------------------------|

| ·   | 6,607,605                Uranium One common shares. On the April 30, 2007, the Uranium One                common                shares closed at CAD$16.65 per share on the TSX (approximately                USD$15.04). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $6,606,000,                comprised of (i) $5,020,900 as a “UPC-Related Payment” to pay the Company                and USE for transferring to Uranium One their contractual rights                with UPC;                and (ii) $1,585,100 in reimbursements for the Company’s and USE’s property                expenditures from July 10, 2006. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CRESTED            CORP**

| **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**       |   |   |       |   |
|                                                                 |   |   |       |   |
| Rembursable                  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 |   |
|                                                                 |   |   |       |   |

| ·   | Uranium                One has assumed certain specific liabilities associated with the                sold                assets, including (but not limited to) those future reclamation                liabilities associated with the Shootaring Canyon Mill in Utah, and                the                Sheep Mountain properties. The cash bonds that USE through its subsidiary                Plateau Resources in the approximate amount of $6,883,300 will be                released                and the cash will be returned by the regulatory authorities. The                Company                will receive the benefit of one half of this cash bond                release. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $20,000,000                cash when commercial production occurs at the Shootaring Canyon Mill                (when                the Shootaring Canyon Mill has been operating at 60% or more of its                design                capacity of 750 short tons per day for 60 consecutive                days). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $7,500,000                cash on the first delivery (after commercial production has occurred)                of                mineralized material from any of the claims sold to Uranium One on                April                30, 2007 (excluding existing ore stockpiles on the                properties). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | From                  and after commercial production occurs at the Shootaring Canyon                  Mill, a                  production payment royalty (up to but not more than $12,500,000)                  equal to                  five percent of (i) the gross value of uranium and vanadium products                  produced at and sold from the mill; or (ii) mill fees received                  by Uranium                  One from third parties for custom milling or tolling arrangements,                  as                  applicable. If production is sold to a Uranium One affiliate, partner,                  or                  joint venturer, gross value shall be determined by reference to                  mining                  industry publications or data. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CRESTED            CORP**

----

**CRESTED              CORP**

**Lucky        Jack Molybdenum Property - Kobex Resources, Ltd.**

----

**CRESTED              CORP**

*Expenditures      and Option payments*

| Date                  by When Expenditures and Options Must be Paid(1) |   | Expenditures                  Amount(2)                  -                  $ |   | Option                  Payment Amount (3)                  -                  $ |   | Total                  Expenditure and Option PaymentAmount                  - $ |   | Cumulative                  Total for Expenditures Amounts and Option Payments - $ |
|------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|
| Later                  of April 13, 2007 or TSX-V Approval(4)          |   | -0-                                                                           |   | 750,000                                                                          |   | 750,000                                                                          |   | 750,000                                                                            |
| March                  31, 2008                                        |   | 3,500,000(5)                                                                  |   | 1,200,000(5)                                                                     |   | 4,200,000                                                                        |   | 4,950,000                                                                          |
| Dec.                  31, 2008                                         |   | 5,000,000                                                                     |   | 500,000                                                                          |   | 5,500,000                                                                        |   | 10,450,000                                                                         |
| Dec.                  31, 2009                                         |   | 5,000,000                                                                     |   | 500,000                                                                          |   | 5,500,000                                                                        |   | 15,950,000                                                                         |
| Dec.                  31, 2010                                         |   | 2,500,000                                                                     |   | 500,000                                                                          |   | 3,000,000                                                                        |   | 18,950,000                                                                         |
| Dec.                  31, 2011                                         |   | -0-                                                                           |   | 500,000                                                                          |   | 500,000                                                                          |   | 19,450,000                                                                         |
| Totals                                                                 |   | 16,000,000                                                                    |   | 3,950,000                                                                        |   | 19,450,000                                                                       |   | 19,450,000                                                                         |

| (1)   | Any                shortfall in expenditures may be paid direct, in cash, to USE/CC.                Except                for the initial payment of $3,500,000 in expenditures by March 31,                2008                (which is a firm commitment of Kobex), if any expenditures amount                is not                fulfilled and/or option payment is not made by 90 days after the                due date,                the agreement will be deemed to have been terminated by Kobex. However,                if                Kobex fails to incur an expenditures amount and/or does not make                an option                payment after the date when Kobex has earned a 15% interest, U.S.                Moly                will replace Kobex as manager of the                property. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Expenditures                  include (but are not limited to) holding and permitting costs for                  the                  Property; geological, geophysical, metallurgical, and related work;                  salaries and wages; and water treatment plant capital and operating                  costs. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | At                Kobex’ election, option payments may be made in cash or Kobex common stock                at market price on issue date. Kobex may accelerate these payments                in                advance of the scheduled dates. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)   | The                agreement is subject to approval by the TSX Venture Exchange. If                not                approved by July 2, 2007, the agreement will immediately terminate                unless                the parties agree otherwise. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)   | For                this period, Kobex may reduce the option payment by $700,000 by increasing                expenditures by that amount, or apportioning the $700,000 between                the                option payment and expenditures. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Bankable        Feasibility Study*

----

**CRESTED            CORP**

*Exercise      of the Option*

*First      Stage*

*Second      Stage*

*Management      During the Option Period*

*The        Joint Venture*

----

**CRESTED              CORP**

*Broker’s      Fee*

*Continuing      Royalty held by USE/CC*

----

**CRESTED      CORP.**

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

**General      Overview**

**Uranium**

**Molybdenum**

----

**Forward      Looking Statements**

**Critical      Accounting Policies**

*Investments*

*Cash      Equivalents*

*Marketable      Securities *

----

*Fair      Value of Financial Instruments*

*Stock      Based Compensation*

*Asset      Retirement Obligations*

*Liabilities      Held for Sale*

*Revenue      Recognition*

*Income      Taxes*

----

*Use      of Accounting Estimates*

**Liquidity      and Capital Resources**

**Capital      Resources**

----

**Capital      Requirements**

**Maintaining      Mineral Properties**

**Lucky      Jack Molybdenum Property**

----

**Results      of Operations**

**Quarter      Ended March 31, 2007 compared with the Quarter Ended March 31,      2006**

----

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

**Contractual      Obligations**

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

----

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

**PART        II. OTHER INFORMATION**

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

***Patent        Claims Litigation - Lucky Jack Molybdenum Property***

----

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

**ITEM        1A. Rick Factors**

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

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

----

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

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

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

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

----

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

|   | (a)    | Exhibits.                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 31.1                                                                                                                                                                                                       | Certification                of President Pursuant to Rule 13a-15(e) / Rule                15d-15(e)                                                                                                                                                                   |
|   |   | 31.2                                                                                                                                                                                                       | Certification                of Chief Financial Officer Pursuant to Rule 13a-14(a) / Rule                15(e)/15d-15(e)                                                                                                                                               |
|   |   | 32.1                                                                                                                                                                                                       | Certification                of President Pursuant to 18 U.S.C. Section 1350, as adopted by Section                906                of the Sarbanes-Oxley Act of 2002                                                                                                |
|   |   | 32.2                                                                                                                                                                                                       | Certification                of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as                adopted                by Section 906 of the Sarbanes-Oxley Act of 2002                                                                                  |
|   |   | 10.1                                                                                                                                                                                                       | Kobex                Agreement of 4-3-07 (without Exhibits)                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   | (b)    | **Reports                on Form 8-K.**                The Company filed five reports on Form 8-K for the quarter ended                March 31,                2007. The events reported were as follows: |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 1.                                                                                                                                                                                                         | The                report filed on January 8, 2007, under Item 8.01 referenced the January                2,                2007 Amended Exclusivity Agreement between USECC and sxr Uranium                One.                                                       |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 2.                                                                                                                                                                                                         | The                report filed on January 24, 2007, under Items 1.01, 4.01 and 5.01                referenced the Plan and Agreement of Merger for Crested Corp. signed                1-23-07, Change of Accountant and Change of                Directors/Officers. |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 3.                                                                                                                                                                                                         | The                report filed on February 1, 2007, amending Item 4.01 of the 8-K filed                January 24, 2007.                                                                                                                                              |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 4.                                                                                                                                                                                                         | The                report filed on February 5, 2007, under Item 4.01 referencing the                engagement of Moss Adams LLP as independent                accountants.                                                                                            |
|   |   |                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                   |
|   |   | 5.                                                                                                                                                                                                         | The                report filed on February 23, 2007 under Item 1.01 referenced the                signing                of the Asset Purchase Agreement between USECC and sxr Uranium                One.                                                            |

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**SIGNATURES**

|                              |   | CRESTED                CORP.                   |   |
|-----------------------------------|--------|------------------------------------------------|--------|
|                              |   | (Company)                                      |   |
|                              |   |                                           |   |
|                              |   |                                           |   |
|                              |   |                                           |   |
| Date:                May 17, 2007 | By:    | /s/Harold                F. Herron             |   |
|                              |   | HEROLD                F. HERRON,               |   |
|                              |   | Co-Chairman                and President       |   |
|                              |   |                                           |   |
|                              |   |                                           |   |
|                              |   |                                           |   |
|                              |   |                                           |   |
| Date:                May 17, 2007 | By:    | /s/Robert                Scott Lorimer         |   |
|                              |   | ROBERT                SCOTT LORIMER            |   |
|                              |   | Principal                Financial Officer and |   |
|                              |   | Chief                Accounting Officer        |   |

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