----

| x      | Quarterly                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|
|   | For                the quarter ended June 30, 2006 or                                                                                 |
|   |                                                                                                                                  |
| o      | Transition                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|   | For                the transition period from ___________ to                ____________                                              |

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

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

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

----

| Class                                        |   | Outstanding                Shares at August 11, 2006 |
|----------------------------------------------|--------|------------------------------------------------------|
| Common                stock, $.001 par value |   | 17,164,298                                           |

----

**CRESTED      CORP.**

**INDEX**

|                        |                                                                      | Page                No.     |
|-----------------------------|---------------------------------------------------------------------------|-----------------------------|
| **PART                I.**  | **FINANCIAL                INFORMATION**                                  |                        |
|                        |                                                                      |                        |
| ITEM                1.      | Financial                Statements.                                      |                        |
|                        |                                                                      |                        |
|                        | Condensed                Balance Sheets (Unaudited)                       |                        |
|                        | June                30, 2006 and December 31, 2005                        | 4-5                         |
|                        |                                                                      |                        |
|                        | Condensed                Statements of Operations (Unaudited)             |                        |
|                        | Three                and Six Months Ended June 30, 2006 and 2005          | 6                           |
|                        |                                                                      |                        |
|                        | Condensed                Statements of Cash Flows (Unaudited)             |                        |
|                        | Six                Months Ended June 30, 2006 and 2005                    | 7-8                         |
|                        |                                                                      |                        |
|                        | Notes                to Condensed Financial Statements (Unaudited)        | 9-11                        |
|                        |                                                                      |                        |
| ITEM                2.      | Management’s                Discussion and Analysis of              |                        |
|                        | Financial                Condition and Results of Operations              | 12-24                       |
|                        |                                                                      |                        |
| ITEM                3.      | Quantitative                and Qualitative Disclosures About Market Risk | 24-26                       |
|                        |                                                                      |                        |
| ITEM                4.      | Controls                and Procedures                                    | 26                          |
|                        |                                                                      |                        |
| **PART                II.** | **OTHER                INFORMATION**                                      | 27                          |
|                        |                                                                      |                        |
| ITEM                1.      | Legal                Proceedings                                          | 27-28                       |
|                        |                                                                      |                        |
| ITEM                2.      | Changes                in Securities and Use of Proceeds                  | 28                          |
|                        |                                                                      |                        |
| ITEM                3.      | Defaults                upon Senior Securities                            | 28                          |
|                        |                                                                      |                        |
| ITEM                4.      | Submission                of Matters to a Vote of Security Holders        | 29                          |
|                        |                                                                      |                        |
| ITEM                5.      | Other                Information                                          | 29                          |
|                        |                                                                      |                        |
| ITEM                6.      | Exhibits                and Reports on Form 8-K                           | 29-30                       |
|                        |                                                                      |                        |
|                        | Signatures                                                                | 31                          |
|                        |                                                                      |                        |
|                        | Certifications                                                            | See                Exhibits |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1. Financial Statements**

| **CRESTED                  CORP.**                                               |   |
|----------------------------------------------------------------------------------|--------|
| **BALANCE                  SHEETS**                                              |   |
| **ASSETS**                                                                       |   |
|                                                                             |   |   |   |   |   |
|                                                                             |   | June                  30, |   | December                  31, |   |
|                                                                             |   | 2006 |   | 2005 |   |
|                                                                             |   | (Unaudited) |   |   |   |
| CURRENT                  ASSETS:                                                 |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                  |   | $ | 1,418,900 |   | $ | 95,100 |   |
| Trading                  securities                                         |   |   | 1,966,300 |   |   | - |   |
|                                                                             |   |   | 3,385,200 |   |   | 95,100 |   |
| INVESTMENTS                  IN AFFILIATES                                       |   |   |   |   |   |   |   |
| Affiliated                  companies                                       |   |   | 4,335,500 |   |   | 3,348,800 |   |
| Non-affiliated                  companies                                   |   |   | 335,200 |   |   | 5,228,300 |   |
|                                                                             |   |   | 4,670,700 |   |   | 8,577,100 |   |
| PROPERTIES                  AND EQUIPMENT                                        |   |   |   |   |   |   |   |
| Machinery                  and other equipment                              |   |   | 10,000 |   |   | 10,000 |   |
| Developed                  oil properties, full cost method                 |   |   | 886,800 |   |   | 886,800 |   |
|                                                                             |   |   | 896,800 |   |   | 896,800 |   |
| Less                  accumulated depreciation, depletion and amortization  |   |   | (886,800 | ) |   | (886,800 | ) |
|                                                                             |   |   | 10,000 |   |   | 10,000 |   |
|                                                                             |   | $ | 8,065,900 |   | $ | 8,682,200 |   |
|                                                                             |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                                                    |   |
|-------------------------------------------------------------------------------------------------------|--------|
| **BALANCE                  SHEETS**                                                                   |   |
| **LIABILITIES                  AND SHAREHOLDERS' DEFICIT**                                            |   |
|                                                                                                  |   |   |   |   |   |
|                                                                                                  |   | June                  30, |   | December                  31, |   |
|                                                                                                  |   | 2006 |   | 2005 |   |
|                                                                                                  |   | (Unaudited) |   |   |   |
| CURRENT                  LIABILITIES:                                                                 |   |   |   |   |   |   |   |
| Current                  debt to affiliate                                                       |   | $ | 12,329,600 |   | $ | 10,821,800 |   |
| Asset                  retirement obligation                                                     |   |   | 106,200 |   |   | 106,200 |   |
|                                                                                                  |   |   | 12,435,800 |   |   | 10,928,000 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| COMMITMENT                  TO FUND EQUITY INVESTEES                                                  |   |   | 215,600 |   |   | 215,600 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| ASSET                  RETIREMENT OBLIGATION                                                          |   |   | 1,145,000 |   |   | 1,045,200 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES                                                        |   |   | -- |   |   | -- |   |
|                                                                                                  |   |   |   |   |   |   |   |
| FORFEITABLE                  COMMON STOCK, $.001 par value                                            |   |   |   |   |   |   |   |
| 15,000                  shares issued, forfeitable until earned                                  |   |   | 10,100 |   |   | 10,100 |   |
|                                                                                                  |   |   |   |   |   |   |   |
| SHAREHOLDERS'                  DEFICIT                                                                |   |   |   |   |   |   |   |
| Preferred                  stock, $.001 par value;                                               |   |   |   |   |   |   |   |
|  100,000                  shares authorized none issued or outstanding                           |   |   | -- |   |   | -- |   |
| Common                  stock, $.001 par value; 100,000,000 shares                  authorized;  |   |   |   |   |   |   |   |
|  17,149,298                  shares issued and outstanding each period                           |   |   |   |   |   |   |   |
|  shares                  issued and outstanding                                                  |   |   | 17,200 |   |   | 17,200 |   |
| Additional                  paid-in capital                                                      |   |   | 11,814,400 |   |   | 11,814,400 |   |
| Accumulated                  deficit                                                             |   |   | (17,572,200 | ) |   | (15,348,300 | ) |
|                                                                                                  |   |   | (5,740,600 | ) |   | (3,516,700 | ) |
|                                                                                                  |   | $ | 8,065,900 |   | $ | 8,682,200 |   |
|                                                                                                  |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                     |   |
|------------------------------------------------------------------------|--------|
| **CONDENSED                  STATEMENTS OF OPERATIONS**                |   |
| **(Unaudited)**                                                        |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                   |   | Three                  months ended June 30, |   | Six                  months ended June 30, |   |
|                                                                   |   | 2006 |   | 2005 |   | 2006 |   | 2005 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| REVENUES:                                                              |   | $ | -- |   | $ | -- |   | $ | -- |   | $ | -- |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COSTS                  AND EXPENSES:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accretion                  of asset retirement obligation         |   |   | 29,200 |   |   | 22,700 |   |   | 99,800 |   |   | 45,400 |   |
| General                  and administrative                       |   |   | 61,100 |   |   | 81,900 |   |   | 149,400 |   |   | 110,800 |   |
|                                                                   |   |   | 90,300 |   |   | 104,600 |   |   | 249,200 |   |   | 156,200 |   |
| LOSS                  FROM CONTINUING OPERATIONS                       |   |   | (90,300 | ) |   | (104,600 | ) |   | (249,200 | ) |   | (156,200 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                  REVENUES AND (EXPENSES):                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                          |   |   | 500 |   |   | -- |   |   | 900 |   |   | -- |   |
| Loss                  on exchange of Enterra Acquisition shares   |   |   | (1,354,200 | ) |   | -- |   |   | (1,354,200 | ) |   | -- |   |
| Loss                  on sale of marketable securities            |   |   | (53,500 | ) |   | -- |   |   | (53,500 | ) |   | -- |   |
| Gain                  (loss) on valuation of derivatives          |   |   | (16,100 | ) |   | 1,228,800 |   |   | (223,600 | ) |   | 1,228,800 |   |
| Gain                  on sale of investment                       |   |   | -- |   |   | 5,882,500 |   |   | -- |   |   | 5,882,500 |   |
|                                                                   |   |   | (1,423,300 | ) |   | 7,111,300 |   |   | (1,630,400 | ) |   | 7,111,300 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS)                  GAIN BEFORE EQUITY LOSS,                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AND                  PROVISION FOR INCOME TAXES                   |   |   | (1,513,600 | ) |   | 7,006,700 |   |   | (1,879,600 | ) |   | 6,955,100 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY                  IN LOSS OF AFFILIATE                           |   |   | (633,600 | ) |   | (717,400 | ) |   | (344,300 | ) |   | (1,090,300 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS)                  GAIN BEFORE PROVISION                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR                  INCOME TAXES                                 |   |   | (2,147,200 | ) |   | 6,289,300 |   |   | (2,223,900 | ) |   | 5,864,800 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION                  FOR INCOME TAXES                            |   |   |   |   |   | (100,000 | ) |   |   |   |   | (100,000 | ) |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  (LOSS) GAIN                                       |   | $ | (2,147,200 | ) | $ | 6,189,300 |   | $ | (2,223,900 | ) | $ | 5,764,800 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PER                  SHARE DATA                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  (LOSS) GAIN PER SHARE, BASIC                 |   | $ | (0.13 | ) | $ | 0.36 |   | $ | (0.13 | ) | $ | 0.34 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET                  (LOSS) GAIN PER SHARE, DILUTED               |   | $ | (0.13 | ) | $ | 0.36 |   | $ | (0.13 | ) | $ | 0.34 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                  WEIGHTED AVERAGE                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                  OUTSTANDING                               |   |   | 17,149,298 |   |   | 17,137,298 |   |   | 17,149,298 |   |   | 17,143,265 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED                  WEIGHTED AVERAGE                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES                  OUTSTANDING                               |   |   | 17,149,298 |   |   | 17,152,298 |   |   | 17,149,298 |   |   | 17,158,265 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                                      |   |
|-------------------------------------------------------------------------|--------|
| **STATEMENTS                  OF CASH FLOWS**                           |   |
| **(Unaudited)**                                                         |   |
|                                                                    |   | Six                  months ended June 30, |   |
|                                                                    |   | 2006 |   | 2005 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                  |   |   |   |   |   |   |   |
| Net                  (loss) income                                      |   | $ | (2,223,900 | ) | $ | 5,764,800 |   |
| Adjustments                  to reconcile net (loss) income to net cash |   |   |   |   |   |   |   |
| used                  in by operating activities:                       |   |   |   |   |   |   |   |
| Equity                  in loss of affiliate                            |   |   | 344,300 |   |   | 1,090,300 |   |
| Loss                  on exchange of Enterra units                      |   |   | 1,354,200 |   |   | -- |   |
| Loss                  on sale of marketable securities                  |   |   | 53,500 |   |   | -- |   |
| Gain                  on sale of affiliate                              |   |   | -- |   |   | (5,882,500 | ) |
| Noncash                  compensation                                   |   |   | 94,200 |   |   | 4,800 |   |
| Change                  in valuation of derivatives                     |   |   | 223,600 |   |   | (1,228,800 | ) |
| Accretion                  of asset retirement obligation               |   |   | 99,800 |   |   | 45,400 |   |
| Proceeds                  from sale of trading securities               |   |   | 1,295,500 |   |   | -- |   |
| Taxes                  payable                                          |   |   | -- |   |   | 100,000 |   |
| NET                  CASH PROVIDED BY                                   |   |   |   |   |   |   |   |
| (USED                  IN) OPERATING ACTIVITIES                         |   |   | 1,241,200 |   |   | (106,000 | ) |
|                                                                    |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                  |   |   |   |   |   |   |   |
| Investment                  in affiliate                                |   |   | (1,331,000 | ) |   | (1,582,700 | ) |
| NET                  CASH USED IN INVESTING ACTIVITIES                  |   |   | (1,331,000 | ) |   | (1,582,700 | ) |
|                                                                    |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                  |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate                      |   |   | 1,413,600 |   |   | 1,688,700 |   |
| NET                  CASH PROVIDED BY FINANCING ACTIVITIES              |   |   | 1,413,600 |   |   | 1,688,700 |   |
|                                                                    |   |   |   |   |   |   |   |
| NET                  INCREASE IN                                        |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS                              |   |   | 1,323,800 |   |   | -- |   |
|                                                                    |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |
| BEGINNING                  OF PERIOD                                    |   |   | 95,100 |   |   | 3,800 |   |
|                                                                    |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |
| END                  OF PERIOD                                          |   | $ | 1,418,900 |   | $ | 3,800 |   |
|                                                                    |   |   |   |   |   |   |   |

----

| **CRESTED                  CORP.**                           |   |
|--------------------------------------------------------------|--------|
| **STATEMENTS                  OF CASH FLOWS**                |   |
| **(Unaudited)**                                              |   |
|                                                         |   | Six                  months ended June 30, |   |
|                                                         |   | 2006 |   | 2005 |   |
|                                                         |   |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES:                   |   |   |   |   |   |   |   |
| Interest                  paid                               |   | $ | -- |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Income                  tax paid                             |   | $ | -- |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| NONCASH                  INVESTING AND FINANCING ACTIVITIES: |   |   |   |   |   |   |   |
| Exchange                  of Enterra Acquisition Shares for  |   |   |   |   |   |   |   |
| Enterra                  Trust Units                         |   | $ | 3,315,300 |   | $ | -- |   |
|                                                         |   |   |   |   |   |   |   |
| Issuance                  of stock to outside directors      |   | $ | -- |   | $ | 4,800 |   |
|                                                         |   |   |   |   |   |   |   |
| Investment                  in Non-affiliated companes       |   | $ | -- |   | $ | 6,734,200 |   |
|                                                         |   |   |   |   |   |   |   |
| Investment                  in affiliate                     |   | $ | -- |   | $ | 651,300 |   |
|                                                         |   |   |   |   |   |   |   |
| Deferred                  gain on sale of Rocky Mountain Gas |   | $ | -- |   | $ | 424,500 |   |
|                                                         |   |   |   |   |   |   |   |
| Net                  activity on debt to affiliate           |   | $ | -- |   | $ | 200,400 |   |
|                                                         |   |   |   |   |   |   |   |

----

**CRESTED            CORP.**

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

| ·   | Continue                working with Uranium Power Corp. (“UPC”) and USE to explore and develop                jointly held uranium properties along with seeking a joint venture                partner. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Seek                joint venture partners on other mineral properties which the Company                owns                an interest in. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Sell                its holdings in Enterra Entergy Trust                (“Enterra”). |
|--------------------|---------------------------------------------------------------------------------------------------|

----

**CRESTED              CORP.**

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

----

**CRESTED            CORP.**

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

| Balance                  December 31, 2005            |   | $      | 1,151,400 |   |
|-------------------------------------------------------|--------|--------|-----------|--------|
| Addition                  to Liability                |   |   | 99,800    |   |
| Liability                  Settled                    |   |   | --        |   |
| Accretion                  Expense - 8% discount rate |   |   |      |   |
| Balance                  June 30, 2006                |   | $      | 1,251,200 |   |

*Investments:        Non-affiliated companies*

----

**CRESTED              CORP.**

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

**CRESTED        CORP.**

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

**General        Overview**

**Uranium**

**Gold**

**Molybdenum**

----

| ·   | Whether                a feasibility study will show volumes and grades of mineralization                and                manageable costs of mining, transportation and processing, which                are                sufficient to make a profit and to bring industry partners to the                point of                investment; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Whether                USECC can negotiate terms with industry partners which will return                a                substantial profit to the Company for its retained interest and the                project’s development costs to that point in                time. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Forward        Looking Statements**

**Critical        Accounting Policies**

*Asset        Impairments*

*Asset        Retirement Obligations*

----

*Use        of Accounting Estimates*

*Income        Taxes*

*Marketable        Securities*

**Recent        Accounting Pronouncements**

**SFAS        123(R)**

----

**Liquidity        and Capital Resources**

----

**Capital        Resources**

----

----

**Capital        Requirements**

**Maintaining        Mineral Properties**

**Uranium        Properties**

**Plateau        Resources Limited, Inc., Uranium Properties**

----

**Agreement        with Uranium Power Corp**

----

**Sutter        Gold Mining Inc. (SGMI) Properties**

**Lucky        Jack Molybdenum Project**

----

**Results        of Operations**

**Six        Months Ended June 30, 2006 compared with the Six Months Ended June 20,        2005**

**Six        Months Ended June 30, 2005 compared with the Six Months Ended June 30,        2004**

----

**Contractual        Obligations**

**Subsequent        Events**

**Exclusivity        Agreement for potential sale of uranium properties**

----

| ·   | $49,250,000                in Uranium One common stock at a set price at closing (the set price                is                the volume weighted average price of Uranium One stock for the 10                days                prior to signing the Exclusivity Agreement, which is US $7.45 per                share or                Cdn $8.32). This represents the $50 million portion, less the cash                paid                for the Exclusivity Agreement. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | $20                million in cash upon the start of commercial operation of the Shootaring                Canyon uranium mill. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|
| ·   | $7.5                million in cash upon the first delivery of mineralized material to                a                commercial uranium mill from any of the purchased properties that                are                subject to the Agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | A                cash royalty equivalent to 5% of the revenues derived from the sales                value                of any commodity produced from the Shootaring Canyon uranium mill,                to a                maximum royalty payment of $12.5 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Litigation        with Phelps Dodge**

----

**Patent        Mining Claims at Lucky Jack Molybdenum Project **

**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**

| ·   | In                the event that SXR does not purchase the uranium assets owned by                USECC, we                will have to continue to pursue an equity or industry partner to                assist in                the development of the properties. Profitability of the uranium properties                will depend on several factors which include continued sustained                higher                prices for uranium oxide, we need to maintain cost controls at the                Shootaring Uranium property in Southern Utah on the mining, transportation                and milling of ores and successfully finance and commence refurbishment                of                the mill. Additionally we may need to either acquire additional mineral                properties in the vicinity of the Shootaring mill or acquire ore                from                contract miners in the area. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                profitable mining and processing of gold by Sutter Gold Mining Inc.                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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                Lucky Jack molybdenum property has had extensive work conducted by                prior                owners, but this data will have to be updated to the level of a current                feasibility study to determine the viability of starting mining                operations. Obtaining mining and other permits to begin mining the                molybdenum property may be very difficult, and, like any mining operation,                capital requirements for a molybdenum mine/mill operation will be                substantial. There is a history of opposition by local government                entities                and environmental organizations to the prior owners seeking permits                to                mine this property. This opposition has been expressed in litigation                from                time to time. Continued legal challenges may delay putting the Lucky                Jack                Project into production. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | USECC                has 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.                USECC has not established any reserves (economic deposits of mineralized                materials) on any of our molybdenum, 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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Compliance        with environmental regulations may be costly**

**Possible        Dilution to Shareholders.**

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

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**PART        II. OTHER INFORMATION**

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

**Sheep        Mountain Partners Arbitration/Litigation**

**Phelps        Dodge Litigation**

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**United        States Tenth Circuit Court of Appeals Affirmation of Lower Court Dismissal        of        Challenges to Mt. Emmons Patents**
**.        **

**Plateau        Resources Ltd.**

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

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

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

| Name                  of Director |   | Term                  Expires |   | For        |   | Abstain |
|-----------------------------------|--------|-------------------------------|--------|------------|--------|---------|
|                              |   |                          |   |       |   |    |
| Keith                  G. Larsen  |   | 2009                          |   | 15,594,176 |   | 287,566 |
|                              |   |                          |   |       |   |    |
| Harold                  F Herron  |   | 2009                          |   | 15,597,276 |   | 284,466 |

|                                                                                                                         |   | Votes                  For |   | Votes                  Against |   | Abstain |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------------------------------|--------|---------|
|                                                                                                                         |   |                       |   |                           |   |    |
| Appointment                  of Epstein, Weber & Conover, PLC as independent                  auditors for calendar 2006 |   | 15,760,107                 |   | 113,052                        |   | 8,582   |

**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 |

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|   | (b)    | **Reports                  on Form 8-K.**                  The Company filed 5 reports on Form 8-K for the quarter ended June                  30,                  2006. The events reported were as follows: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                           |   |
|   |   | 1.                                                                                                                                                                                                             | The                  report filed on May 12, 2006, under Item 8.01 referenced the May                  9, 2006                  agreement with Uranium Power Corp. on two new uranium                  projects. |
|   |   |                                                                                                                                                                                                           |   |
|   |   | 2.                                                                                                                                                                                                             | The                  report filed on May 19, 2006, under Item 8.01 referenced the receipt                  of                  the May 15, 2006 Clarification of the Arbitration Award in the                  Nukem                  litigation. |
|   |   |                                                                                                                                                                                                           |   |
|   |   | 3.                                                                                                                                                                                                             | The                  report filed on May 31, 2006, under Item 8.01 referenced $3 million                  (Cdn)                  private placement for Sutter Gold Mining, Inc. |
|   |   |                                                                                                                                                                                                           |   |
|   |   | 4.                                                                                                                                                                                                             | The                  report filed on June 8, 2006, under Item 8.01 referenced two amendments                  to                  the May 5, 2006 SEDA. |
|   |   |                                                                                                                                                                                                           |   |
|   |   | 5.                                                                                                                                                                                                             | The                  report filed on June 26, 2006, under Item 8.01 referenced shareholder                  approval of four proposal at the Annual Meeting including; re-election                  of                  two directors, selection of the current audit firm, waiving Nasdaq’s                  MarketPlace Rule 435 (i)(1)(D) and amendment of the Articles of                  Incorporation for removal of direct ors only for                  cause. |

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**SIGNATURES**

|                                   |   | CRESTED                  CORP.                   |   |
|----------------------------------------|--------|--------------------------------------------------|--------|
|                                   |   | (Company)                                        |   |
|                                   |   |                                             |   |
|                                   |   |                                             |   |
|                                   |   |                                             |   |
| Date:                  August 11, 2006 | By:    | /s/Harold                  F. Herron             |   |
|                                   |   | HEROLD                  F. HERRON,               |   |
|                                   |   | CHAIRMAN                  and President          |   |
|                                   |   |                                             |   |
|                                   |   |                                             |   |
|                                   |   |                                             |   |
|                                   |   |                                             |   |
| Date:                  August 11, 2006 | By:    | /s/Robert                  Scott Lorimer         |   |
|                                   |   | ROBERT                  SCOTT LORIMER            |   |
|                                   |   | Principal                  Financial Officer and |   |
|                                   |   | Chief                  Accounting Officer        |   |

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