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

                                   FORM 10QSB

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


For Quarter Ended March 31, 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 II, Suite 100, 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 March 31, 1998


================================================================================
                     This document is comprised of 9 pages.



<PAGE>


FORM 10QSB
1ST QUARTER





                                      INDEX

                                                                            Page
PART I  FINANCIAL INFORMATION

     Item 1.  Financial Statements *

     Condensed balance sheet - March 31, 1998 (Unaudited)                    3

     Condensed statements of operations  Three months ended
      March 31, 1998 and March 31, 1997  (Unaudited)                         4

     Condensed statements of cash flows  Three months ended
       March 31, 1998 and March 31, 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

                                 March 31, 1998

CASH                                                                 $    2,537
FURNITURE AND EQUIPMENT, NET                                              3,268
                                                                     -----------
                                                TOTAL ASSETS              5,805
                                                                     ===========

                      LIABILITIES AND SHAREHOLDERS' DEFICIT

LIABILITIES

   Accounts payable                                                  $   12,378
   Accrued liabilities                                                   15,757
   Advance from affiliate (Note B)                                       97,026
   Due to affiliate (Note B)                                              7,000
   Deferred gain                                                          4,517
                                                                     -----------
                                           TOTAL LIABILITIES            136,678
                                                                     -----------

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                        (290,829)
                                                                     -----------
                                TOTAL SHAREHOLDERS' DEFICIT            (130,873)
                                                                     -----------
                                                                     $    5,805
                                                                     -----------

            See accompanying notes to condensed financial statements

                                       3

<PAGE>


                             KALAN GOLD CORPORATION
                          -----------------------------
                          (A DEVELOPMENT STAGE COMPANY)

                       Condensed Statements of Operations

                                                               January 1, 1993
                                                                 (inception)
                                            March 31,              Through
                                     -----------------------       March 31,
                                        1998         1997            1998
                                     ----------   ----------      ----------
COSTS AND EXPENSES
   General and administrative        $   18,830   $   54,523      $  247,388
   Stock option expense                       -            -         129,500
   Depreciation                             754          454           2,177
                                     ----------   ----------      ----------
      INCOME (LOSS) FROM OPERATIONS     (19,584)      54,977        (379,065)

OTHER INCOME (EXPENSE)
   Gain on sale and termination
     of agreement.                            -       98,647          86,041
   Interest expense                       1,941          743         (14,388)
                                     ----------   ----------      ----------
                  NET INCOME (LOSS)  $  (21,525)  $   30,321      $ (294,806)
                                     ==========   ==========      ==========
             BASIC WEIGHTED AVERAGE
                SHARES  OUTSTANDING   7,198,333    7,052,500       3,047,738
                                     ==========   ==========      ==========
             BASIC (LOSS) PER SHARE  $        *   $        *      $     (.10)
                                     ==========   ==========      ==========
           DILUTED WEIGHTED AVERAGE
                 SHARES OUTSTANDING   7,198,333    7,052,500       3,146,250
                                     ==========   ==========      ==========
           DILUTED (LOSS) PER SHARE  $        *   $        *      $     (.09)
                                     ==========   ==========      ==========
* Less than $(.01) per share


            See accompanying notes to condensed financial statements

                                       4

<PAGE>


                             KALAN GOLD CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)

                       Condensed Statements of Cash Flows

                                                               January 1, 1993
                                                                 (inception)
                                            March 31,              Through
                                     -----------------------       March 31,
                                        1998         1997            1998
                                     ----------   ----------      ----------
                 NET CASH (USED IN)
               OPERATING ACTIVITIES     (14,531)     (53,445)       (214,971)
                                     ----------   ----------      ----------
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                           12,100            -         204,472
   Repayments to affiliate                    -      (60,945)       (107,447)
   Principal payments on
     long-term debt                           -            -         (30,000)
   Capital contribution                       -            -           3,700
                                     ----------   ----------      ----------
     NET CASH (USED IN) PROVIDED BY
               FINANCING ACTIVITIES      16,100      (60,945)         75,475
                                     ----------   ----------      ----------
NET INCREASE (DECREASE) IN CASH           1,569       31,555           1,003

Cash, beginning of period                   968        7,228           1,534
                                     ----------   ----------      ----------
CASH, END OF PERIOD                  $    2,537   $   38,783      $    2,537
                                     ==========   ==========      ==========

See accompanying notes to condensed financial statements

                                       5

<PAGE>


                             KALAN GOLD CORPORATION
                         -----------------------------
                         (A DEVELOPMENT STAGE COMPANY)

                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (Unaudited)

                                 March 31, 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 March 31,  1998 the  Company  has  accrued  $7,000,  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. The total
$97,026 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 March 31, 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 ended March 31, 1998 resulting in a
deferred tax asset,  which was fully allowed for,  therefore the net benefit and
expense result in $0 income taxes.

                                       6

<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
a new  agreement,  entered  into on February 9, 1998,  whereby the Company  will
provide services related to the gold mining,  smelting and refining  businesses.
This activity is expected to provide 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 March  31,  1998 the  Company  had  three
employees and does not anticipate  materially increasing the number of employees
in the next twelve months.

RESULTS OF OPERATIONS

No income  producing  operations were conducted  during the most recent quarter.
Expenses,  since  year end and in the  current  quarter,  consisted  of rent and
office  offices,  salaries,  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 March 31, 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.

        (b)  Reports on Form 8-K were filed on:

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

                                       7

<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 ended March 31, 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: May 14, 1998                 BY: /s/ Sanford Altberger
      ---------------------                -------------------------------------
                                           Sanford Altberger
                                           President and Chief Executive Officer

                                       8