UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                        For Quarter Ended June 30, 1998
                        -------------------------------

                         Commission File Number 0-25658
                         ------------------------------

                             Kalan Gold Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            COLORADO                                     84-1357927
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)


     Tower I, Suite 340, 12835 E. Arapahoe Road, Englewood, Colorado 80112
     ---------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                                 (303) 706-1606
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


             (Former name, former address and former fiscal year, if
                          changed since last report.)


Indicate by check whether the registrant  (1) has filed all reports  required to
be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes __X__ No _____


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Common stock,  $.00001 par value                     7,290,999
--------------------------------   ---------------------------------------------
            Class                  Number of shares outstanding at June 30, 1998


                     This document is comprised of 9 pages.


<PAGE>


FORM 10-QSB
2ND QUARTER

                                      INDEX

                                                                          Page
                                                                         ------
PART I - FINANCIAL INFORMATION

     Item 1.  Financial Statements *

     Condensed balance sheet as of
         June 30, 1998 (Unaudited)                                         3

     Condensed statements of operations -
         Three  and six months ended
         June 30, 1998 and  1997 (Unaudited)                               4

     Condensed statements of cash flows -
         Six months ended June 30, 1998
         and 1997 (Unaudited)                                              5

     Notes to condensed financial statements
         (Unaudited)                                                       6

     Item 2.  Plan of operation                                            7


PART II - OTHER INFORMATION                                                8

     Item 1.  Legal Proceedings
     Item 2.  Changes In Securities
     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

     Signatures                                                            9


    * The accompanying financial statements are not covered by an independent
                      Certified Public Accountant's report.

<PAGE>


Part I.  Item 1.  Financial information

                             KALAN GOLD CORPORATION
                          (A Development Stage Company)

                             Condensed Balance Sheet
                                   (Unaudited)
                                  June 30, 1998

CASH                                                   $     832
FURNITURE AND EQUIPMENT, NET                               2,514
                                                       ---------
TOTAL ASSETS                                               3,346
                                                       =========

                      LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES

   Accounts payable                                     $ 14,363

   Accrued liabilities                                    21,128
   Advance from affiliate (Note B)                       105,526
   Due to affiliate (Note B)                              10,000
   Deferred gain                                           4,517
                                                       ---------
TOTAL LIABILITIES                                        155,534
                                                       ---------

SHAREHOLDERS' EQUITY (DEFICIT) (Notes C)

   Preferred stock, $.10 par value,
      1,000,000 shares authorized,
      -0- shares issued and outstanding                        -

   Common stock, $.00001 par value,
      100,000,000 shares authorized,
      7,290,999 shares issued and
      outstanding                                             73

   Outstanding common stock options                      129,500

   Additional paid-in capital                             30,383

   Deficit accumulated during development stage         (312,144)
                                                       ---------
TOTAL SHAREHOLDERS' DEFICIT                             (152,188)
                                                       ---------

                                                         $ 3,346
                                                       =========

            See accompanying notes to condensed financial statements

<PAGE>


                             KALAN GOLD CORPORATION
                          (A Development Stage Company)
                       Condensed Statements of Operations
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                               January 1,
                                                                                                                 1993
                                                Three months ended                 Six months ended           (Inception)
                                                     June 30,                          June 30,                 through
                                            --------------------------        -------------------------         June 30,
                                               1998            1997              1998           1997             1998
                                            ----------      ----------        ----------     ----------       ----------
COSTS AND EXPENSES
<S>                                          <C>             <C>               <C>             <C>             <C>     
 General and administrative                  $18,690         $41,008           $37,520         $95,532         $266,078
 Stock option expense                              -               -                 -               -          129,500
 Depreciation.                                   754             126             1,508             580            2,931
                                             -------         -------           -------         -------         --------
                    Operating Loss           (19,444)        (41,134)          (39,028)        (96,112)        (398,509)
NONOPERATING INCOME
 Gain on sale and
 termination of  agreement                         -               -                 -          86,041           98,647
 Interest expense                             (1,871)         (1,674)           (3,812)         (2,417)         (16,259)
                                             -------         -------           -------         -------         --------
                          NET LOSS          $(21,315)       $(42,808)         $(42,840)       $(12,488)       $(316,121)

            Basic weighted average
                shares outstanding         7,290,999       7,065,000         7,244,666       7,058,750        3,240,614

            Basic (Loss) per share                 *               *             $(.01)              *            $(.10)

          Diluted weighted average
                Shares outstanding         7,715,999              NA         7,715,999              NA        3,353,966

          Diluted (Loss) per share                 *              NA             $(.01)             NA           $(.10)
</TABLE>

* Less than $(.01) per share

            See accompanying notes to condensed financial statements

<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                       Condensed Statements of Cash Flows
                                   (Unaudited)
                                                                      January 1,
                                                                        1993
                                               Six Months Ended      (inception)
                                                   June 30,            Through
                                             --------------------     June 30,
                                               1998        1997         1998
                                             --------    --------     --------
                     NET CASH (USED IN)
                   OPERATING ACTIVITIES      (24,736)    $(98,760)    (225,176)
                                           ---------     --------     --------
INVESTING ACTIVITIES
  Purchase of equipment                            -            -       (5,446)

  Proceeds from sale of property                   -      145,945      145,945
                                           ---------     --------     --------
         NET CASH PROVIDED BY (USED IN)
                    INVESTING ACTIVITES            -      145,945      140,499
                                           ---------     --------     --------
FINANCING ACTIVITIES
   Proceeds from stock options exercised       4,000            -        4,750
   Proceeds from advances from affiliate      20,600            -      212,972
   Repayments to affiliate                         -      (54,945)    (107,447)
   Principal payments on long-term debt            -            -      (30,000)
   Capital contribution                            -          750        3,700
                                           ---------     --------     --------
         NET CASH (USED IN) PROVIDED BY
                   FINANCING ACTIVITIES       24,600      (54,195)      83,975
                                           ---------     --------     --------
NET INCREASE (DECREASE) IN CASH                 (136)      (7,010)        (702)
Cash, beginning of period                        968        7,228        1,534
                                           ---------     --------     --------
CASH, END OF PERIOD                        $     832     $    218     $    832
                                           =========     ========     ========
SUPPLEMENTARY DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid for interest and income taxes    $       -     $      -     $      -

NONCASH INVESTING AND FINANCING
Common stock issued for services           $       -     $      -     $     15


            See accompanying notes to condensed financial statements

<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

                                  June 30, 1998


Note A:  Basis of presentation

The financial  statements  presented herein have been prepared by the Company in
accordance  with the  accounting  policies  in its annual  10-KSB  report  dated
December 31, 1997 and should be read in conjunction with the notes thereto.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  which are necessary to provide a fair  presentation  of
operating  results for the interim period  presented have been made. The results
of operations for the periods  presented are not  necessarily  indicative of the
results to be expected for the year.

Interim financial data presented herein are unaudited.

Note B:  Related party transactions

The  Company  entered  into a verbal  agreement  to rent  office  space from the
affiliate  effective September 1, 1997. The agreement calls for monthly payments
of  $1,000.  As of June 30,  1998 the  Company  has  accrued  $10,000,  which is
included in the accompanying financial statements as due to affiliate.

As of December 31, 1997,  the Company owed an affiliate  $84,926 for  short-term
cash  advances  made during 1997 for working  capital  purposes.  The  affiliate
advanced an additional  $12,100 during the first three months of 1998 and $8,500
during the three months ended June 30, 1998,  The total  $105,526 is recorded in
the financial statements as advance from affiliate.

Note C:  Shareholders' equity (deficit)

An ex-officer and a current officer of the Company  exercised a total of 200,000
options  during the three months ended March 31, 1998 for total  proceeds to the
Company of $4,000. The non-compensatory options were granted in 1997 at $.02 per
share. Of the 312,500  non-compensatory  $.02 options granted in 1996, there are
75,000 options  outstanding at June 30, 1998. All 350,000 options granted for an
exercise price of $1.00 per common share,  resulting in compensation  expense in
1997 are still outstanding.

Note D:  Income taxes

The Company  records its income taxes in accordance  with Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes". The Company incurred
net operating  losses during the three months and six months ended June 30, 1998
resulting in a deferred tax asset,  which was fully  allowed for,  therefore the
net benefit and expense result in $0 income taxes. :

<PAGE>


Part I. Item 2. Plan of operation

                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)


PLAN OF OPERATION

The plan of the Company's management, for the next twelve months, is to focus on
developing relationships with potential joint venture partners, in an attempt to
commence  operations.  Upon commencing  operations,  management expects positive
cash flow from  operations,  however there is no assurance that the Company will
achieve profitable operations.  In addition,  from time to time certain officers
infuse cash for working capital purposes on an as-needed basis. At June 30, 1998
the Company had three  employees and does not anticipate  materially  increasing
the number of employees in the next twelve months. On July 6, 1998 the Company's
vice-president resigned.


RESULTS OF OPERATIONS

No income  producing  operations were conducted  during the most recent quarter.
Expenses,  since year end, consisted of rent,  salaries,  legal,  accounting and
audit fees, transfer agent costs, interest and depreciation.


FINANCIAL CONDITION

There have been no material changes to the Company's  financial condition during
the three months ended June 30, 1998.  All  development  stage activity has been
funded, in the form of cash working capital advances, by a major shareholder and
officer of the Company.


PART II - OTHER INFORMATION

Items 1 Through 5 - No response required.

Item 6 - Exhibits and reports on Form 8-K.

         (a)  Exhibits

                  27*  Financial Data Schedule.

         Reports on Form 8-K were filed on:

                  February 9, 1998 - Agreement to provide consulting services to
                  Asean Gold Industries, Inc.

                  July 7, 1998 - Resignation of Robert  Goldman,  Vice President
                  and Director

                  August 7, 1998 - Exploration    option    granted    to  SAMAX
                  Exploration Limited

                  August 14, 1998 - Resignation of Harry B. Ruskowsky, Director

<PAGE>


                                   SIGNATURES



The  financial   information  furnished  herein  has  not  been  audited  by  an
independent accountant;  however, in the opinion of management,  all adjustments
(only consisting of normal recurring accruals) necessary for a fair presentation
of the results of operations  for the three months and six months ended June 30,
1998 have been included.

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                             KALAN GOLD CORPORATION.
                                  (Registrant)


DATE:  August 19, 1998            BY: /s/ Sanford Altberger
     -------------------------            --------------------------------------
                                          Sanford Altberger
                                          President and Chief Executive Officer