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, 1998 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 OCTOBER 7, 1998
--------------------------------------        ----------------------------------
       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 Sheet --  August 31, 1998 .............................3

    Condensed Statements of Operations -- Three Months Ended
      August 31, 1998 and August 31, 1997....................................4

    Condensed Statements of Cash Flows-Three
      Months Ended August 31, 1998 and August 31, 1997.......................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, 1998
                                   (Unaudited)
<TABLE>

      ASSETS

CURRENT ASSETS:
<S>                                                 <C>     
    Cash and cash equivalents                         $ 10,900
    Marketable Equity securities                        11,900
                                                      --------
      TOTAL CURRENT ASSETS                              22,800

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

OTHER ASSETS                                             1,900
                                                      ---------
                                                      $ 24,700
                                                      =========

    LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

    Accounts payable - affiliates                     $ 73,700

SHAREHOLDERS' EQUITY
    Common stock, $0.001 par value;
      50,000,000 shares authorized,
      26,797,500 shares issued and outstanding,         26,700
    Additional paid-in capital                       1,788,700
    Accumulated deficit                             (1,870,100)
    Unrealized holding gain on
      marketable equity securities                       5,700
                                                    -----------
                                                       (49,000)
                                                    -----------
                                                      $ 24,700
                                                    ===========

</TABLE>

            See accompanying notes to condensed financial statements.

                                        3

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                              NORTHWEST GOLD, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>

                                                   Three Months Ended
                                                       AUGUST 31,
                                                ------------------------
<S>                                             <C>            <C> 
                                                   1998           1997
                                                   ----           ----

REVENUES:
    Interest                                    $    100       $    100


COSTS AND EXPENSES:
    General and administrative                     6,600          2,900
                                                --------       --------

NET INCOME (LOSS)                               $ (6,500)      $ (2,800)
                                                ==========     ==========

LOSS PER SHARE                                  $  *           $  *
                                                ==========     ==========       

WEIGHTED AVERAGE NUMBER
    OF SHARES OUTSTANDING                       26,797,500     26,797,500
                                                ==========     ==========
</TABLE>

*   Less than $0.01 per share.


            See accompanying notes to condensed financial statements.

                                        4

<PAGE>


                                                                
                              NORTHWEST GOLD, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


                                                      Three Months Ended
                                                          AUGUST 31,
                                                   ------------------------
                                                     1998            1997
                                                     ----            ----

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net Loss                                       $ (6,500)      $ (2,800)
    Adjustments to reconcile
      net loss to net cash provided by
      operating activities:
      Increase in accounts
        payable - affiliate                           6,600          2,900
                                                   --------       --------

NET CASH PROVIDED BY
    OPERATING ACTIVITIES                                100            100
                                                   --------       --------

NET INCREASE IN CASH AND
    CASH EQUIVALENTS                                    100            100

CASH AND CASH EQUIVALENTS AT
    BEGINNING OF PERIOD                              10,800         10,400
                                                   --------       --------

CASH AND CASH EQUIVALENTS AT
    END OF PERIOD                                  $ 10,900       $ 10,500
                                                   ========       ========


            See accompanying notes to condensed financial statements.

                                        5

<PAGE>


                                                                 

                              NORTHWEST GOLD, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS


     1) The  Condensed  Balance  Sheet as of August 31,  1998 and the  Condensed
Statements  of  Operations  and cash flow for the three  months ended August 31,
1998 and 1997,  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, 1998 the results
of operations and cash flow for the three months ended August 31, 1998 and 1997.

     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,  1998  Form
10-KSB.

     3) The  results of  operations  for the periods  ended  August 31, 1998 and
1997,  are not  necessarily  indicative  of the  operating  results which may be
experienced for the full year.



                                        6

<PAGE>
                                                                 
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 $6,400 as compared to May 31, 1998. This decrease was as a
result of an  increase  of $6,500 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, 1999.  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, 1998 or the  corresponding  quarter of the
prior year ended  August 31,  1997.  In both  periods  however,  the  Registrant
recorded interest revenue of $100 on funds held in interest bearing accounts.

     General and  administrative  costs  increased by $3,700  during the quarter
ended August 31, 1998 from the same period of the previous  year.  This increase
was  primarily in  professional  services that had not yet been billed for audit
fees during the period ended August 31, 1997.

     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, 1998.                                 

                                        7

<PAGE>


                                                                
      
                                   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: October 7, 1998               By:       /S/  HAROLD F. HERRON
                                          --------------------------------------
                                          HAROLD F. HERRON,
                                          Chief Executive Officer



Date: October 7, 1998               By:       /S/ ROBERT SCOTT LORIMER
                                          --------------------------------------
                                          ROBERT SCOTT LORIMER,
                                          Principal Financial Officer
                                          and Chief Accounting Officer


                                        8

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