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 September 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                      10,290,999
            Class               Number of shares outstanding at November 1, 1998

--------------------------------------------------------------------------------
                     This document is comprised of 10 pages.

<PAGE>


FORM 10-QSB
2ND QUARTER



                                      INDEX

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

     Item 1.  Financial Statements *

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

     Condensed statements of operations - Three  and Nine Months Ended
         September 30, 1998 and  1997 (Unaudited)............................4

     Condensed statements of cash flows - Nine Months Ended
           September 30, 1998 and 1997 (Unaudited)...........................5

     Notes to condensed financial statements (Unaudited).....................6

     Item 2.  Plan of operation..............................................8


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.

                                       2

<PAGE>


Part I.  Item 1.  Financial information

                             KALAN GOLD CORPORATION
                          (A Development Stage Company)

                             Condensed Balance Sheet
                                   (Unaudited)
                               September 30, 1998

CASH.................................................           $           331
FURNITURE AND EQUIPMENT, NET.........................                     1,760
                                                                ---------------
                                         TOTAL ASSETS                     2,091
                                                                ===============


                      LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES
   Accounts payable..................................                  $ 12,377
   Accrued liabilities...............................                    31,710
   Advance from affiliate (Note B)...................                   123,226

   Due to affiliate (Note B).........................                    13,000
                                                                ---------------
                                    TOTAL LIABILITIES                   180,313
                                                                ===============


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......                  (338,178)
                                                                ---------------
                          TOTAL SHAREHOLDERS' DEFICIT                  (178,222)
                                                                ---------------
                                                                        $ 2,091
                                                                ===============


            See accompanying notes to condensed financial statements

                                       3

<PAGE>


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


<TABLE>
<CAPTION>
                                                                                                                        January 1,
                                                                                                                          1993
                                                                                                                       (Inception)
                                                      Three months ended                  Nine Months Ended              through
                                                        September 30,                       September 30,               Sept. 30,
                                                                                                                          1998

                                                      1998            1997             1998             1997
<S>                                                <C>             <C>              <C>              <C>               <C>      
COSTS AND EXPENSES
 General and administrative                        $  27,332       $  38,761        $  64,852        $ 134,292         $ 293,410
 Stock option expense                                      -               -                -                -           129,500
 Depreciation.                                           754             290            2,262              871             3,685
                                                   ---------       ---------        ---------        ---------         ---------
                           Operating Loss            (28,086)        (39,051)         (67,114)        (135,163)         (426,595)
NONOPERATING INCOME
 Gain on sale and
 termination of  agreement                             4,517               -            4,517           86,041           103,164
 Interest expense                                     (2,465)         (1,209)          (6,277)          (3,626)          (18,724)
                                                   ---------       ---------        ---------        ---------         ---------
                                 NET LOSS          $ (26,034)      $ (40,260)       $ (68,874)       $ (52,748)        $(342,155)
                                                   =========       =========        =========        =========         =========
                   Basic weighted average
                       shares outstanding          7,290,999       7,090,000        7,260,110        7,069,167         3,416,717
                                                   =========       =========        =========        =========         =========

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

                 Diluted weighted average
                       Shares outstanding          7,715,999              NA        7,715,999               NA         3,543,619
                                                   =========       =========        =========        =========         =========

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


            See accompanying notes to condensed financial statements

                                       4
<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                       Condensed Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                         January 1, 1993
                                                                                           (inception)
                                                                  Nine Months Ended          Through
                                                                    September 30,           Sept. 30,
                                                                1998             1997         1998
<S>                                                             <C>             <C>            <C>  
                                  NET CASH (USED IN)
                                OPERATING ACTIVITIES        $ (42,937)       $(134,869)     (243,376)
                                                            ---------        ---------     ---------
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............           38,300           37,000       230,671
   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           42,300          (17,195)      101,674
                                                            ---------        ---------     ---------
NET INCREASE (DECREASE) IN CASH.....................             (637)          (6,119)       (1,203)
Cash, beginning of period...........................              968            7,228         1,534
                                                            ---------        ---------     ---------
CASH, END OF PERIOD.................................        $     331        $   1,109     $     331
                                                            =========        =========     =========

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest and income taxes............         $       -        $       -     $       -
                                                            =========        =========     =========

NONCASH INVESTING AND FINANCING
Common stock issued for services...................         $       -        $       -     $      15
                                                            =========        =========     =========
</TABLE>

            See accompanying notes to condensed financial statements

                                       5

<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

                               September 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 September 30, 1998 the Company has accrued  $13,000,  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  $20,600  during the first six months of 1998 and $17,700
during the three months ended September 30, 1998, The total $123,226 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 September 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 nine months ended September 30,
1998 resulting in a deferred tax asset,  which was fully allowed for,  therefore
the net benefit and expense result in $0 income taxes.

Note E:  Gain on termination of agreement

Management  has determined not to pursue its option to extend its agreement with
respect to license  rights  obtained from Esikiman  Mining Company  Limited.  At
December 31, 1997,  the Company had recorded a deferred gain of $4,517 which has
been recognized in the third quarter 1998.

                                       6

<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)

                               September 30, 1998

Note F:  Subsequent events

Subsequent  to September  30, 1998 the Company  issued  1,300,000  shares of its
restricted  common stock in exchange for four licenses to gold properties in the
African country of Burkina Faso. The properties are valued at $434,200.

The Company issued 1,000,000  shares of its restricted  common stock in exchange
for services related to acquisition assistance valued at $334,000.

The Company issued  700,000 shares of its restricted  common stock to affiliates
as payment for debt recorded at $233,800.



                                       7

<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 September 30,
1998 the Company had two employees and, except for any potential  mergers and/or
acquisitions,  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  September 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
         August 19, 1998  - Resignation of Elmer B. Stewart, Director
         November 3, 1998 - Issuance of restricted common shares

                                       8

<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 nine  months  ended
September 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:           November 10, 1998          BY:

                                           Sanford Altberger
                                           President and Chief Executive Officer