<PAGE> 1

=============================================================================

                                UNITED STATES
                     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 June 30, 1998

[   ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the transition period from       to       
                                                -----    -----

                     Commission File Number:  000-25132

                              ICHOR CORPORATION
           (Exact name of Registrant as specified in its charter)

              Delaware                                 25-1741849
  (State or other jurisdiction of                   (I.R.S. Employer
   incorporation or organization)                  Identification No.)

 Suite 1250, 400 Burrard Street, Vancouver,
          British Columbia, Canada                       V6C 3A6
 (Address of principal executive offices)             (Postal Code)

                              (604) 683-5767
           (Registrant's telephone number, including area code)

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 (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 Registrant's classes 
of common stock, as of the latest practicable date:

             Class                            Outstanding at August 7, 1998
             -----                            -----------------------------
      Common Stock, $0.01                               4,907,520
          par value 

=============================================================================

<PAGE> 2

FORWARD-LOOKING STATEMENTS

Statements in this report, to the extent that they are not based on 
historical events, constitute forward-looking statements.  Forward-looking 
statements include, without limitation, statements regarding the outlook for 
future operations, forecasts of future costs and expenditures, the evaluation 
of market conditions, the outcome of legal proceedings, the adequacy of 
reserves or other business plans.  Investors are cautioned that forward-
looking statements are subject to an inherent risk that actual results may 
vary materially from those described herein.  Factors that may result in such 
variance, in addition to those accompanying the forward-looking statements, 
include changes in interest rates, prices and other economic conditions; 
actions by competitors; natural phenomena; actions by government authorities; 
uncertainties associated with legal proceedings; technological development; 
future decisions by management in response to changing conditions; and 
misjudgments in the course of preparing forward-looking statements.


                      PART I. FINANCIAL INFORMATION
                              ---------------------

ITEM 1. FINANCIAL STATEMENTS



                              ICHOR CORPORATION

                      CONSOLIDATED FINANCIAL STATEMENTS

                   FOR THE SIX MONTHS ENDED JUNE 30, 1998

                                 (Unaudited)

                                     -2-

<PAGE> 3

                              ICHOR CORPORATION
                         Consolidated Balance Sheets
                                 (Unaudited)
                           (dollars in thousands)
<TABLE>
<CAPTION>
                                           June 30, 1998     December 31, 1997
                                           -------------     -----------------
<S>                                        <C>               <C>
                                   ASSETS

Current Assets
  Cash and cash equivalents                $          62       $         127
  Cash held in escrow                                  -                 617
  Accounts receivable, net                           980                 332
  Notes receivable                                 2,080                 680
  Advance to an affiliate                            270                 270
                                           -------------       -------------
      Total current assets                         3,392               2,026

Other Assets                                           2                   2
                                           -------------       -------------
                                           $       3,394       $       2,028
                                           =============       =============

                     LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
  Accounts payable                         $           -       $          39
  Accrued interest and other liabilities             134                 363
  Advance from an affiliate                          780                 780
  Current portion 
    of long-term liabilities                           -                 757
                                           -------------       -------------
      Total liabilities                              914               1,939

Shareholders' Equity
  Common stock                                        50                  50
  Preferred stock                                     27                   2
  Additional paid-in capital                      10,121               7,916
  Retained deficit                                (7,647)             (7,808)
                                           -------------       -------------
                                                   2,551                 160

  Less cost of shares of common stock
    held in treasury                                 (71)                (71)
                                           -------------       -------------
      Total equity                                 2,480                  89
                                           -------------       -------------
                                           $       3,394       $       2,028
                                           =============       =============
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                     -3-

<PAGE> 4

                              ICHOR CORPORATION
                    Consolidated Statements of Operations
                                 (Unaudited)
               (dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
                                          For the Six         For the Six
                                          Months Ended        Months Ended
                                          June 30, 1998       June 30, 1997 
                                          --------------      --------------
                                                                (Restated)
<S>                                       <C>                 <C>
Selling, general and administrative 
  expenses                                $          294      $          182
                                          --------------      --------------

Loss from operations                                (294)               (182)

Other income (expense):
  Interest expense                                  (100)               (380)
  Interest income                                     28                   2
  Bad debt recovery                                  100                   -
  Fee income                                          84                   -
                                          --------------      --------------
                                                    (182)               (560)

Gain on disposal of a subsidiary                     437                   -
                                          --------------      --------------

Income (loss) from continuing 
  operations                                         255                (560)

Discontinued operations:
  Loss from discontinued operations                    -                (463)
  Gain on disposal                                     -                  59
                                          --------------      --------------

Loss from discontinued operations                      -                (404)
                                          --------------      --------------

Net income (loss)                         $          255      $         (964)
                                          ==============      ==============

Basic and diluted earnings (loss) 
  per share:
  Income (loss) from continuing 
    operations                            $         0.03      $        (0.11)
  Loss from discontinued operations                    -               (0.08)
                                          --------------      --------------
                                          $         0.03      $        (0.19)
                                          ==============      ==============
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                     -4-

<PAGE> 5

                              ICHOR CORPORATION
                    Consolidated Statements of Operations
                                 (Unaudited)
               (dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
                                          For the Three       For the Three
                                          Months Ended        Months Ended
                                          June 30, 1998       June 30, 1997  
                                          --------------      --------------
                                                                (Restated)
<S>                                       <C>                 <C>
Selling, general and administrative 
  expenses                                $          186      $            4
                                          --------------      --------------

Loss from operations                                (186)                 (4)

Other income (expense):
  Interest expense                                     -                (200)
  Interest income                                     28                   -
  Bad debt recovery                                  100                   -
  Fee income                                          84                   -
                                          --------------      --------------
                                                      26                (204)
                                          --------------      --------------

Income (loss) from continuing 
  operations                                          26                (204)

Discontinued operations:
  Loss from discontinued operations                    -                (328)
  Gain on disposal                                     -                  59
                                          --------------      --------------

Loss from discontinued operations                      -                (269)
                                          --------------      --------------

Net income (loss)                         $           26      $         (473)
                                          ==============      ==============

Basic and diluted loss per share:
  Loss from continuing operations         $        (0.01)     $        (0.04)
  Loss from discontinued operations                    -               (0.05)
                                          --------------      --------------
                                          $        (0.01)     $        (0.09)
                                          ==============      ==============
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                     -5-

<PAGE> 6

                              ICHOR CORPORATION
                    Consolidated Statements of Cash Flows
                                 (Unaudited)
                           (dollars in thousands)
<TABLE>
<CAPTION>
                                          For the Six         For the Six
                                          Months Ended        Months Ended
                                          June 30, 1998       June 30, 1997  
                                          --------------      --------------
                                                                (Restated)
<S>                                       <C>                 <C>
Cash Flows from Operating Activities:
  Net income (loss) from continuing 
    operations                            $          255      $         (560)
  Adjustments to reconcile net income
    (loss) to cash flows from 
    operating activities
    Gain on disposal of a subsidiary                (437)                  -
    Bad debt recovery                               (100)                  -

  Changes in current assets and 
    liabilities, net of effect of a 
    subsidiary disposed
    Cash held in escrow                              145                 325
    Accounts receivable                             (674)                (42)
    Accounts payable                                 (30)               (197)
    Payable to affiliate                               -                  90
    Other accrued liabilities                        (54)                 24
                                          --------------      --------------
      Net cash used in operating 
      activities of continuing 
      operations                                    (895)               (360)

Cash Flows from Investing Activities:
  Note receivable                                 (1,400)                  -
                                          --------------      --------------
      Net cash used in investing 
      activities of continuing operations         (1,400)                  -

Cash Flows from Financing Activities:
  Proceeds from issuance of preferred 
    shares, net                                    2,230                   -
                                          --------------      --------------
      Net cash provided by financing 
      activities of continuing operations          2,230                   -
                                          --------------      --------------

Net cash used in continuing operations               (65)               (360)
Net cash provided by discontinued 
  operations                                           -                   7
                                          --------------      --------------

Decrease in cash and cash equivalents                (65)               (353)
Cash and cash equivalents, beginning 
  of period                                          127                 524
                                          --------------      --------------
Cash and cash equivalents, end of period  $           62      $          171
                                          ==============      ==============
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                     -6-

<PAGE> 7

                              ICHOR CORPORATION
                 Notes to Consolidated Financial Statements
                               June 30, 1998
                                (Unaudited)

Note 1. Basis of Presentation
-----------------------------

The accompanying financial statements of ICHOR Corporation (the 
"Corporation") are unaudited. However, in the opinion of management, they 
include all adjustments necessary for a fair presentation of the financial 
position, results of operations and cash flows of the Corporation for the 
specified periods.

The Corporation sold its environmental remediation services operations in 
April 1997 and its waste oil recycling facility in December 1997.  In 
addition, the Corporation sold its wholly-owned subsidiary, ICHOR Services, 
Inc., effective March 31, 1998.  These operations have been accounted for as 
discontinued operations for the six months and three months ended June 30, 
1998, respectively. The Corporation's comparative financial statements for 
the six months and three months ended June 30, 1998, respectively, have been 
restated to conform to this method of presentation.

All adjustments made during the six months and three months ended June 30, 
1998, respectively, were of a normal, recurring nature. The amounts presented 
for the six months and three months ended June 30, 1998, respectively, are 
not necessarily indicative of the results of operations for a full year.  
Additional information is contained in the audited consolidated financial 
statements and accompanying notes included in the Corporation's annual report 
on Form 10-K for the fiscal year ended December 31, 1997, and should be read 
in conjunction with such annual report.

Certain reclassifications have been made to the prior year financial 
statements to conform with the current year presentation.


Note 2. Earnings (Loss) Per Share
---------------------------------

Basic earnings (loss) per share is calculated by dividing the net income or 
loss by the weighted average number of common shares outstanding during the 
six months and three months ended June 30, 1998 and 1997, respectively.  The 
weighted average number of shares outstanding was 4,907,520 and 4,917,716 for 
the six months ended June 30, 1998 and 1997, respectively, and 4,907,520 and 
4,912,933 for the three months ended June 30, 1998 and 1997, respectively.

Diluted earnings per share takes into account common shares outstanding, 
potentially dilutive common shares and preferred shares convertible into 
common shares.  Stock options and warrants have not been reflected as 
exercised for purposes of computing the diluted loss per share for the six 
months and three months ended June 30 1997, respectively, since the exercise 
of such options and warrants would be anti-dilutive.


Note 3. Commitments and Contingencies
-------------------------------------

The Corporation has agreed to pay $259,500 in settlement of a class action 
law suit alleging that the Corporation, its former parent, certain of its 
officers and directors, and the underwriters of its initial public offering 
violated certain federal securities laws.  The action was initiated by the 
persons and 

                                     -7-

<PAGE> 8

entities purchasing the Corporation's common stock from February 
9, 1995 through May 23, 1995. The settlement is subject to the execution of 
the settlement documents and court approval.  See "Item 3.  Legal 
Proceedings" contained in the Corporation's annual report on Form 10-K for 
the year ended December 31, 1997 for further details with respect to the 
action.

                                     -8-

<PAGE> 9

                       PART I. FINANCIAL INFORMATION
                               ---------------------

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS

The following discussion and analysis of the results of operations and 
financial condition of ICHOR Corporation (the "Corporation") for the six 
months and three months ended June 30, 1998, respectively, should be read in 
conjunction with the Corporation's consolidated financial statements and 
related notes included elsewhere herein.

Results of Operations - Six Months Ended June 30, 1998
------------------------------------------------------

Selling, general and administrative expenses for the six months ended June 
30, 1998 increased to $0.3 million from $0.2 million in the comparative 
period of 1997, primarily as a result of an increase in legal and consulting 
fees.  Interest expense decreased to $0.1 million in the six months ended 
June 30, 1998 from $0.4 million in the six months ended June 30, 1997, 
primarily as a result of the sale of the Corporation's subsidiary, Ichor 
Services, Inc. ("Ichor Services"), in the first quarter of 1998, which had 
financed certain receivables for work performed under certain Florida State 
rehabilitation programs.  In the six months ended June 30, 1998, the 
Corporation reported income of $0.1 million from consulting fees collected 
for providing certain environmental consulting services and income of $0.1 
million from the recovery of bad debts.

Effective March 31, 1998, the Corporation sold Ichor Services and recognized 
a gain of $0.4 million on the sale as a result of the disposal of net 
liabilities of Ichor Services.

Income from continuing operations was $0.3 million or $0.03 per share in the 
six months ended June 30, 1998, compared to a loss from continuing operations 
of $0.6 million or $0.11 per share in the six months ended June 30, 1997.  

Net income was $0.3 million or $0.03 per share for the six months ended June 
30, 1998, compared to a net loss of $1.0 million or $0.19 per share for the 
six months ended June 30, 1997.

Results of Operations - Three Months Ended June 30, 1998
--------------------------------------------------------

Selling, general and administrative expenses for the three months ended June 
30, 1998 increased to $0.2 million from $4,000 in the comparative period of 
1997, primarily as a result of an increase in legal and consulting fees.  
Interest expense was nil in the three months ended June 30, 1998, compared to 
$0.2 million in the three months ended June 30, 1997, primarily as a result 
of the sale of Ichor Services in the first quarter of 1998.  In the three 
months ended June 30, 1998, the Corporation reported income of $0.1 million 
from consulting fees collected for providing certain environmental consulting 
services and income of $0.1 million from the recovery of bad debts.

Income from continuing operations was $26,000, or a loss of $0.01 per share 
after the accrual of dividends on the Corporation's preferred shares, in the 
three months ended June 30, 1998, compared 

                                     -9-

<PAGE> 10

to a loss from continuing operations of $0.2 million or $0.04 per share in 
the three months ended June 30, 1997.

Net income was $26,000, or a net loss of $0.01 per share after the accrual of 
dividends on the Corporation's preferred shares, for the three months ended 
June 30, 1998, compared to a net loss of $0.5 million or $0.09 per share for 
the three months ended June 30, 1997.

Liquidity and Capital Resources
-------------------------------

The Corporation had cash and cash equivalents of $62,000 at June 30, 1998, 
compared to $0.1 million at December 31, 1997.  The Corporation maintains a 
line of credit with an affiliate in the amount of $0.8 million to fund 
working capital requirements.  The line of credit was fully utilized as at 
June 30, 1998.

Net cash used in continuing operating activities was $0.9 million in the six 
months ended June 30, 1998, compared to $0.4 million for the six months ended 
June 30, 1997.  Operating activities in the six months ended June 30, 1998 
used cash primarily as a result of an increase in accounts receivable. A 
decrease in cash held in escrow provided cash of $0.1 million in the six 
months ended June 30, 1998, compared to $0.3 million in the period ended June 
30, 1997.

Net cash used in investing activities was $1.4 million in the six months 
ended June 30, 1998, as a result of an increase in a note receivable.

Financing activities provided cash of $2.2 million in the six months ended 
June 30, 1998.  In the first quarter of 1998, the Corporation completed the 
issuance of an aggregate of 467,500 shares of 5% Cumulative Redeemable 
Convertible Preferred Stock, Series 1 of the Corporation in consideration of 
debt forgiveness of $2.2 million and cash of $2.5 million.

The Corporation believes that its assets and line of credit should enable the 
Corporation to meet its current ongoing requirements.  The Corporation 
anticipates that it may require substantial capital to pursue current and 
future acquisitions of businesses and/or operating assets and will seek such 
capital through debt and/or equity financing.

                                    -10-

<PAGE> 11

                       PART II. OTHER INFORMATION
                                -----------------

ITEM 1. LEGAL PROCEEDINGS

The Corporation has agreed to pay $259,500 in settlement of a class action 
law suit alleging that the Corporation, its former parent, certain of its 
officers and directors, and the underwriters of its initial public offering 
violated certain federal securities laws.  The action was initiated by the 
persons and entities purchasing the Corporation's common stock from February 
9, 1995 through May 23, 1995. The settlement is subject to the execution of 
the settlement documents and court approval.  See "Item 3.  Legal 
Proceedings" contained in the Corporation's annual report on Form 10-K for 
the year ended December 31, 1997 for further details with respect to the 
action.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

In March 1998, in reliance on exemptions from registration under the Securities
Act of 1933, as amended (the "Securities Act") as transactions not involving
a public offering under Section 4(2) of the Securities Act, the Corporation
issued an aggregate of 467,500 shares of 5% Cumulative Redeemable Convertible
Preferred Stock, Series 1 (the "Preferred Shares") as follows: (i) 317,500 
Preferred Shares were issued to creditors of the Corporation in satisfaction
of indebtedness of $2.4 million and a release of a guarantee of $0.8 million;
and (ii) 150,000 Preferred Shares were issued for proceeds of $1.5 million 
pursuant to an agency placement by MFC Merchant Bank S.A. (the "Agent") for 
which the Agent was paid a fee of $250,000 and reimbursed for certain expenses.
The Preferred Shares may be converted into shares of common stock of the 
Corporation at a price equal to 90% of the 20-day average closing trading price
of the common stock on The NASDAQ SmallCap Market.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

    Exhibit 
    Number                      Description
    -------                     -----------

      27      Article 5 - Financial Data Schedule for the 2nd Quarter 1998 
                          Form 10-Q.

(b) Reports on Form 8-K
    -------------------

    None.

                                   -11-


<PAGE> 12

                                SIGNATURES

Pursuant to the requirements 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.



Dated:  August 11, 1998
                                           ICHOR CORPORATION


                                       By:  /s/ Michael J. Smith 
                                           ----------------------------
                                           Michael J. Smith, President,
                                           Chief Financial Officer and 
                                           Treasurer

                                    -12-

<PAGE> 13
                               EXHIBIT INDEX

   Exhibit 
   Number                       Description
   -------                      -----------

     27      Article 5 - Financial Data Schedule for the 2nd Quarter 1998 
                         Form 10-Q.