SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                               ------------------

 

                                   FORM 10-Q

 

   /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities

       Exchange Act of 1934

 

       For the quarterly period ended May 31, 1997

 

                                        OR

 

   / / Transition report pursuant to Section 13 or 15(d) of the Securities

       Exchange Act of 1934



       For the transition period from                 to

 

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                         COMMISSION FILE NUMBER 0-19528

 

                            ------------------------

 

                               AMWEST ENVIRONMENTAL GROUP, INC.

             (Exact name of registrant as specified in its charter)

 

                                    NEVADA

                        (State or other jurisdiction of

                         incorporation or organization)

 

                              10701 LOS ALAMITOS BLVD.

                               LOS ALAMITOS, CA  

                    (Address of principal executive offices)



                                   88-289700

                      (IRS Employer Identification Number)

 

                                     90720

                                   (Zip code)

 

                                 (562) 799-1888

              (Registrant's telephone number, including area code)

 

                                 NOT APPLICABLE

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

                                    report)

 

     Indicate by check mark 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, and (2) has been subject to such filing

requirements for the past 90 days.

 

                         Yes  /X/                    No

 

     Common stock, $0.001 per shares par, 50,000,000 authorized, of which 

18,305,463 shares were issued and outstanding as of  May 31, 1997.

 

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Company Overview

	Amwest Environmental Group, the predecessor of Amwest Environmental Group, 
Inc. was incorporated in the State of Nevada on September 23, 1992, for the 
purpose of engaging in the business of environmental engineering, consulting, 
construction and testing. After its merger with Earth Products Advancement, 
Inc., the business of Amwest Environmental Group has been carried on by Amwest 
Environmental Group, Inc., (the Registrant).

	The Registrants Engineering Group services are standards throughout the 
industry and derived from Super Fund legislation. Environmental studies include
environmental impact, auditing, contamination surveys, potential evaluations, 
remediation (clean-up) and engineering.

	The Registrant is in a highly competitive field, as it competes with other 
similar business on the local, national and international level. The Registrant
will face substantial competition when bidding for contracts in the public 
sector. The Registrant has experience growth in terms of projects finished, 
marketing activities and future contracts.

	The Registrant is dependent is regulated by both the Federal and State 
Governmental Agencies. The principal Federal Laws governing the Registrant 
are the resources Conservation and Recovery Act of 1976 (RCRA, 1976) and the 
Comprehensive Environmental Response, Compensation and Liability Act of 1980 
(CERCLA, 1980). The RCRA, 1976, impacts the Registrant by regulating the 
treatment, storage, transportation and disposal of hazardous wastes which have 
adverse effects on health and the environment.

	The Registrant is dependant on an adequate supply of chemicals to clean-up 
projects. The supply of these chemicals is readily available both in the United 
States and in the Pacific Rim. Twenty of the thirty employees reside in the US, 
the remaining is based in the Pacific Rim.

	The Registrants main marketing activities are conducted in the United States 
with limited activities in Taiwan, Korea, Mexico and the Peoples Republic of 
China. Statistics show that china will require more waste treatment plant than 
the whole world combined. The Registrant is concentrating on the Pacific Rim
and plans to expand in that direction.

	The Registrants is concentrating their efforts in the Pacific Rim and this 
will effect the short term cash flow, but the long term growth potential is 
great.


                         Results of Operations
              Balanced Sheet and Operation Statement for 
                the third quarter ending May 31, 1997

              Amwest Environmental Group and Subsidiaries
                  Consolidated Statement of Operations
                   for the quarter ending May 31, 1997
                               (Unaudited)

SALES			                                         $	272,822.73
COST OF SALES			                                   169,516.24
GROSS INCOME			                                    103,306.49

EXPENSES:
Advertising				                                        537.60
Amortization				                                    15,453.50
Auto					                                            1,918.90
Bank Charges				                                     1,521.98
Bond Job				                                           764.51
Commission				                                       4,500.00
Consultation				                                    53,827.59
Depreciation				                                    23,129.45
Franchise Tax				                                    4,000.00
Insurance				                                        2,449.03
Interest				                                        26,767.83
Legal & Accounting			                               11,619.75
Maintenance & Repair		                               5,434.92
Meals & Entertainment		                              3,664.27
Misc.					                                          36,851.96
Office Supplies			                                   3,170.33
Postage				                                            951.38
Rent					                                           57,602.30
Salaries				                                        76,330.31
Taxes & License			                                   1,426.06
Taxes - Property			                                 26,935.46
Taxes - Payroll			                                  12,582.77
Telephone				                                       21,757.65
Travel					                                          1,662.77
Utilities				                                          323.87

	     Total Expenses		                            $395,184.19

OPERATING INCOME (LOSS):	                        ($291,877.70) 

OTHER INCOME (EXPENSE):
	Interest Income		                                   2,242.49
	Other Income			                                       805.54

NET INCOME (LOSS)		                              ($288,829.67)



                 Amwest Environmental Group and Subs
                     Consolidated Balance Sheet
                            May 31, 1997
                            (Unaudited)

ASSETS

Current Assets:
	Cash and cash equivalents			                   $    84,189.37
	Accounts receivable				                            376,006.45
	Excess of cost and profit over billing		             3,049.00
			     Total current assets	                       463,244.82

	Fixed assets, at cost,
	net of accumulated depreciation	                	1,845,425.79
	Investments					                                 4,631,235.00
	Organization costs,
	net of accumulated amortization		                    9,982.64
	Other assets					                                  167,425.31	
				          Total assets	                      $7,117,313.56

LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities:
	Accounts payable and accrued expenses	         $   367,891.25
	Note payable					                                   93,231.30
	Contract payable				                                12,692.75
			Total current liabilities	                       473,815.30

	Contract payable				                                41,186.60
	Note payable					                                  362,500.00
	Other payable					                                 621,815.78

	Stockholders equity
		Common stock			                                    18,304.92
		Common stock - UNR		                            2,166,000.00
		Paid in capital				                             8,123,847.08
		Deficit				                                   ($4,600,370.70)
                                                 --------------
							                                          $5,617,995.88

							                                          $7,117,313.56

	Net loss for the second quarter ending May 31, 1997, was $288,829.67, an 
increase from the net loss from the second quarter of February 28, 1997. The 
increase in loss is due to the depreciation of the property and the carry cost
to enter the Pacific Rim market.


Part II - OTHER INFORMATION

Item 1.		Legal Proceeding:	None at present

Item 2.		Changes in Securities:		Not Applicable

Item 3.		Default Upon Senior Securities:	Not Applicable

Item 4.		Submission of Matters to vote of Security Holders:	None

Item 5.		Other Information:	Not Applicable

Item 6.		Exhibits and Reports on form 8-K:	No report on form 8-K have been 
filed during the second quarter of May 31, 1997.

SIGNATURE

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

Amwest Environmental Group, Inc.



James C. Lu

Dated:  May 31, 1997