FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549


[X] Quarterly report pursuant to section 13 or 15(d) of the Securities  Exchange
    Act of 1934 For the fiscal quarter ended August 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 _____

Commission file number 0-10229

                              NORTHWEST GOLD, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

        WYOMING                                            81-0384984
-------------------------------------------------     --------------------------
        State or other jurisdiction of                     (I.R.S. Employer
        incorporation or organization)                     Identification No.)

        877 NORTH 8TH WEST, RIVERTON, WY                   82501
-------------------------------------------------     --------------------------
        (Address of principal executive offices)          (Zip Code)

Registrant's telephone Number:   (307) 856-9278


                                      NONE
--------------------------------------------------------------------------------
      (Former name, address and 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  and 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  ____

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

               CLASS                          OUTSTANDING AT SEPTEMBER 30, 1997
---------------------------------------     ------------------------------------
     Common stock, $.001 par value                  26,797,500 Shares



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                              NORTHWEST GOLD, INC.


                                      INDEX


PART I.        FINANCIAL INFORMATION

     ITEM 1.  Financial Statements

     Condensed Balance Sheets --  August 31, 1997 ............................3

     Condensed Statements of Operations -- Three Months Ended
        August 31, 1997 and August 31, 1996...................................4

     Condensed Statements of Cash Flows for the Three
       Months Ended August 31, 1997 and August 31, 1996.......................5

     Notes to Condensed Financial Statements .................................6

     ITEM 2.  Management's Discussion and Analysis of
            Financial Condition and Results of Operations.....................7

PART II.     OTHER INFORMATION

     ITEM 6.  Exhibits and Reports on Form 8-K................................7

     Signatures...............................................................8


                                        2

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                              NORTHWEST GOLD, INC.

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                            CONDENSED BALANCE SHEETS
                                 AUGUST 31, 1997


        ASSETS

CURRENT ASSETS:
     Cash and temporary cash investments                         $   10,500
     Marketable securities                                           15,400
                                                                 ----------
        TOTAL CURRENT ASSETS                                         25,900

PROPERTY AND EQUIPMENT, at cost                                      29,000
     Less accumulated depreciation                                  (29,000)
                                                                 ----------
                                                                     --

OTHER ASSETS                                                          1,900
                                                                 ----------
                                                                 $   27,800
                                                                 ==========

     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

     Accounts payable - affiliates                               $   58,300

SHAREHOLDERS' EQUITY
     Common stock, $0.001 par value;
        authorized, 50,000,000 shares;
        issued and outstanding,
        26,797,500                                                   26,700
     Additional paid-in capital                                   1,788,700
     Accumulated deficit                                         (1,855,100)
     Unrealized holding gain on
        marketable equity securities                                  9,200
                                                                 ----------
                                                                    (30,500)
                                                                 ----------
                                                                 $   27,800
                                                                 ==========



            See accompanying notes to condensed financial statements.

                                        3

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                              NORTHWEST GOLD, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


                                                 Three Months Ended
                                                     AUGUST 31,
                                            ----------------------------
                                               1997              1996
                                               ----              ----

REVENUES:
     Interest                               $      100        $      100


COSTS AND EXPENSES:
     General and administrative                  2,900             4,200
                                            ----------        ----------

NET INCOME (LOSS)                           $   (2,800)       $   (4,100)
                                            ==========        ==========

EARNINGS (LOSS) PER SHARE                   $    *            $    *
                                            ==========        ==========

WEIGHTED AVERAGE NUMBER
     OF SHARES OUTSTANDING                  26,797,500        26,797,500
                                            ==========        ==========

*    Less than $0.01 per share.


            See accompanying notes to condensed financial statements.

                                        4

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                              NORTHWEST GOLD, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


                                                       Three Months Ended
                                                           AUGUST 31,
                                                  ----------------------------
                                                    1997               1996
                                                    ----               ----

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Loss                                     $  (2,800)        $  (4,100)
     Adjustments to reconcile
        net loss to net cash used
        in operating activities:
        Increase in accounts
          payable - affiliate                         2,900             4,200
                                                  ---------         ---------

NET CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES                               100               100
                                                  ---------         ---------

NET INCREASE (DECREASE) IN CASH AND
     CASH EQUIVALENTS                                   100               100

CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIOD                             10,400            12,900
                                                  ---------         ---------

CASH AND CASH EQUIVALENTS AT
     END OF PERIOD                                $  10,500         $  13,000
                                                  =========         =========


            See accompanying notes to condensed financial statements.

                                        5

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                              NORTHWEST GOLD, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS


        1) The  Condensed  Balance  Sheet as of August  31,  1997 the  Condensed
Statements  of  Operations  for the three months ended August 31, 1997 and 1996,
and the Condensed Statements of Cash Flows for the three months ended August 31,
1997 and 1996,  have been  prepared  by the  Registrant  without  audit.  In the
opinion of the Registrant,  the accompanying  financial  statements  contain all
adjustments  (consisting of only normal recurring  accruals) necessary to fairly
present the  financial  position of Registrant as of August 31, 1997 the results
of  operations  for the three months  ended  August 31, 1997 and 1996,  and cash
flows for the three months then ended.

        2) Certain  information and footnote  disclosures  normally  included in
financial  statements  prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these financial
statements  be read in  conjunction  with the  Registrant's  May 31,  1997  Form
10-KSB.

        3) The results of  operations  for the periods ended August 31, 1997 and
1996,  are not  necessarily  indicative  of the  operating  results which may be
experienced for the full year.



                                        6

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

LIQUIDITY AND CAPITAL RESOURCES

        The  Registrant's  working  capital  decreased  during the most recently
completed  quarter by $2,800.  This  decrease  was as a result of an increase of
$2,900 in accounts  payable to affiliates which was offset by a $100 increase in
cash.  The increase in accounts  payable was as a result of USECB Joint  Venture
("USECB"),  a joint venture  between U.S.  Energy,  a major  shareholder  of the
Registrant and Crested  Corp.paying  certain  administrative fees for Registrant
and a management  fee of $500 per month due USECB.  The increase in cash is as a
result of interest  earned on funds the  Registrant  has  deposited  in interest
bearing accounts.

        The  Registrant  anticipates  that it will be able to meet  its  capital
requirements  for the  remainder of the year ending May 31, 1998.  However,  the
Registrant  must  secure  drilling  or  construction  contracts  or work  out an
agreement  on its  accounts  due to  affiliates  in order to continue  operating
long-term.

RESULTS OF OPERATIONS

        The Registrant had no revenues from operations  during the most recently
completed  quarter  ended  August 31, 1997 or the  corresponding  quarter of the
prior year ended  August 31,  1996.  In both  periods  however,  the  Registrant
recorded interest revenue of $100 on funds held in interest bearing accounts.

        General and administrative  costs decreased by $1,300 during the quarter
ended August 31, 1997 over the same period of the previous  year.  This decrease
was  primarily in  professional  services that had not yet been billed for audit
fees.

        The  Registrant's   operations   consist   primarily  of  administrative
activities  associated with the preparation of reports and documents required by
law.


                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

        (a) Exhibits.  None.

        (b) Reports on Form 8-K.  There were no reports filed by the  Registrant
on Form 8-K for the quarter ended August 31, 1997.


                                        7

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                                   SIGNATURES


        Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, hereunto duly authorized.

                                                   NORTHWEST GOLD, INC.
                                                   (Registrant)



Date:  September 8, 1997                    By:       /s/  HAROLD F. HERRON
                                                   ----------------------------
                                                   HAROLD F. HERRON,
                                                   Chief Executive Officer



Date:  September 8, 1997                    By:       /s/ ROBERT SCOTT LORIMER
                                                   -----------------------------
                                                   ROBERT SCOTT LORIMER,
                                                   Principal Financial Officer
                                                   and Chief Accounting Officer


                                        8

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