<PAGE>       U.S. SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934.

        For the quarterly period ended September 30, 1996

               Commission File Number:  33-9640-LA

                   NORTHERN DANCER CORPORATION
 ----------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)

          Colorado                                          68-0133692
-------------------------------                      ------------------------
(State or Other Jurisdiction of                      (I.R.S. Employer Identi-
 Incorporation or Organization)                           fication Number)    

       370 17th Street, Suite 2300, Denver, Colorado 80202
    ----------------------------------------------------------
    Address of Principal Executive Offices, Including Zip Code

                          (303) 572-5000
                   ---------------------------
                   (Issuer's Telephone Number)

Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 ---            No -X-

As of November 5, 1996, 98,330,000 shares of Common Stock, no par value per
share, were outstanding.

Transitional Small Business Disclosure Format:  Yes ---       No -X-
<PAGE>
                   NORTHERN DANCER CORPORATION

                           FORM 10-QSB


                              INDEX
                                                         Page
PART I:   FINANCIAL INFORMATION                        Number

Item 1.   Financial Information:

          Balance Sheets (Unaudited)                        3

          Statements of Operations (Unaudited)              4

          Statements of Cash Flows (Unaudited)              6

          Note to Financial Statements (Unaudited)          8

Item 2.   Management's Discussion and Analysis
          or Plan of Operations                             8

PART II:  OTHER INFORMATION                                 9

          Signature
                               -2-
<PAGE>
                       NORTHERN DANCER CORPORATION     
                      (A development stage company)
     
                             BALANCE SHEETS
                                             September 30,   March 31,
                                                  1996        1996
                                               ----------   --------
                                              (Unaudited)
ASSETS
------
                         
CURRENT ASSETS:                         
  Cash and cash equivalents                     $105,753    $126,892
  Note receivable, net of allowance                    0           0   
  Other current asset                                777         777
                                                --------    --------
    Total current assets                         106,530     127,669
                         
Office equipment, at cost                          1,634       1,634
Less: accumulated depreciation                     (492)        (328)
                                               --------     --------  
Net Fixed Assets                                  1,142        1,306
                                               --------     --------
                                               $107,672     $128,975
                                               --------     --------
                        
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:                         
  Accounts payable                             $  2,615     $  2,129
                                               --------     --------
    Total current liabilities                     2,615        2,129

STOCKHOLDERS' EQUITY:                        
  Preferred stock, no par value,                       
    10,000,000 shares authorized, none                 
    issued or outstanding                            --           --
  Common stock, no par value,
    1,500,000,000 shares authorized,                   
    98,330,000 shares issued and                       
    outstanding                                 398,409      398,409
  Deficit accumulated during the                       
    development stage                          (293,352)    (271,563)
                                               --------     --------
    Total stockholders' equity                  105,057      126,846
                                               --------     --------
                                               $107,672     $128,975
                                               --------     --------
See note to financial statements.                 
                                  -3-   
<PAGE>
                       NORTHERN DANCER CORPORATION               
                      (A development stage company)              
                         
                        STATEMENTS OF OPERATIONS            
                               (Unaudited)                  
                                                               Cumulative
                                                                  from
                                                               January 16,
                                                               1987 (incor-
                                                                poration)
                                        Three months ended        through
                                           September 30,        September 30,
                                       1996           1995           1996
                                    ----------     ----------    -----------
REVENUE:
  Interest income                   $    1,026     $    2,038     $  110,738
  Interest income - related parties        ---            ---         28,566
                                    ----------     ----------     ----------
                                         1,026          2,038        139,304

EXPENSES:                     
  General and administrative             1,282          1,003        224,104
  General and administrative,
    related parties                        ---            ---         91,100
  Bad debt expense (recovery)           20,000            ---        116,960
  Depreciation expense                      82             82            492
                                    ----------     ----------     ----------
                                        21,364          1,085        432,656
                                    ----------     ----------     ----------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EXTRAORDINARY ITEM          (20,338)           953       (293,352)

Provision for Income Taxes                 --             --             --
                                    ----------     ----------     ----------

INCOME(LOSS) BEFORE EXTRAORDINARY
  ITEM                                 (20,338)           953       (293,352)
Extraordinary Item:
  Reduction of income taxes due to
    utilization of operating loss
    carryforward                            --             --            --
                                    ----------     ----------     ----------
NET INCOME (LOSS)                     ($20,338)     $     953      ($293,352)
                                    ----------     ----------     ----------
NET INCOME(LOSS) PER COMMON SHARE        -- *           -- *        ($0.003)
                                    ----------     ----------     ----------

WEIGHTED AVERAGE NUMBER OF                        
  SHARES OUTSTANDING               98,330,000      98,330,000     92,453,966
                                   ----------      ----------     ----------
* Less than $.001 per share
                         
See note to financial statements.
                                   -4-
<PAGE>
                       NORTHERN DANCER CORPORATION               
                      (A development stage company)              
                         
                        STATEMENTS OF OPERATIONS            
                               (Unaudited)
                                               Six months ended
                                                 September 30,
                                               1996       1995
                                            ---------- ----------
REVENUE:
  Interest income                           $    2,236 $    3,798
  Interest income - related parties                ---        ---
                                            ---------- ----------
                                                 2,236      3,798

EXPENSES:                     
  General and administrative                     3,861      4,340
  General and administrative,
    related parties                                ---        ---
  Bad debt expense (recovery)                   20,000        ---
  Depreciation expense                             164        164
                                            ---------- ----------
                                                24,025      4,504
                                            ---------- ----------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EXTRAORDINARY ITEM                  (21,789)      (706)

Provision for Income Taxes                         ---        ---
                                            ---------- ----------
INCOME(LOSS) BEFORE EXTRAORDINARY
  ITEM                                         (21,789)      (706)
Extraordinary Item:
  Reduction of income taxes due to
    utilization of operating loss
    carryforward                                    ---       ---
                                             ---------- ----------
NET INCOME (LOSS)                              ($21,789) $    (706)
                                             ---------- ----------
NET INCOME(LOSS) PER COMMON SHARE                  -- *       -- *
                                             ---------- ----------
WEIGHTED AVERAGE NUMBER OF                        
  SHARES OUTSTANDING                         98,330,000 98,330,000
                                             ---------- ----------
* Less than $.001 per share
                         
See note to financial statements.
                                   -5-
<PAGE>
                       NORTHERN DANCER CORPORATION
                      (A development stage company)
                        STATEMENTS OF CASH FLOWS       
                              (Unaudited)
                                                              Cumulative from
                                                              January 16,1987
                                                              (incorporation)
                                         Three months ended       through 
                                            September 30,       September 30,
                                          1996         1995         1996
                                        --------     --------   ------------
CASH FROM OPERATING ACTIVITIES:                        
  Net income (loss)                    ($20,338)       ($953)     ($293,352)
  Adjustments to reconcile net
    income (loss) to net cash                
    from operating activities:
      Bad debt expense                   20,000          ---        116,960
      Depreciation expense                   82           82            492
    Changes in operating assets
      and liabilities:
      (Increase) decrease in:
        Accrued interest receivable         ---         (292)       (10,251)
        Other current assets                ---          ---           (777)
      Increase (decrease) in:
        Accounts payable                 (2,093)      (1,372)         2,615)
                                       --------     --------     ----------
  Net cash provided by (used in)
    operating activities                 (2,349)        (629)     (184,313)

CASH FROM INVESTING ACTIVITIES:
  Issuance of notes receivable,
    related parties                          --           --      (236,150)
  Proceeds from collection of notes
    receivable, related parties              --           --       234,441
  Issuance of notes receivable          (20,000)     (50,000)     (230,000)
  Proceeds from collection of      
    notes receivable                         --           --       125,000
  Purchase of office equipment               --           --        (1,634)
                                       --------       --------     ---------
  Net cash provided by (used in)
    investing activities                (20,000)     (50,000)     (108,343)

CASH FROM FINANCING ACTIVITIES:
  Issuance of common stock and
    warrants for cash, net of
    offering costs                           --           --       398,409
                                       --------     --------     ---------
  Net cash provided by financing
    activities                                0            0       398,409

INCREASE (DECREASE) IN CASH AND                        
  CASH EQUIVALENTS                      (22,349)     (50,629)      105,753

CASH AND CASH EQUIVALENTS,
  beginning                             128,102      212,249            --
                                       --------       --------     ---------
CASH AND CASH EQUIVALENTS, ending      $105,753     $161,620     $ 105,753
                                       --------     --------     ---------
See note to financial statements.
                                   -6-
<PAGE>
                       NORTHERN DANCER CORPORATION
                      (A development stage company)
                         
                        STATEMENTS OF CASH FLOWS       
                              (Unaudited)
                                                     Six months ended
                                                       September 30,
                                                    1996         1995 
                                                  --------     --------
CASH FROM OPERATING ACTIVITIES:                        
  Net income (loss)                              ($21,789)      ($706)
  Adjustments to reconcile net
    income (loss) to net cash                
    from operating activities:
      Bad debt expense                             20,000          --- 
      Depreciation expense                            164          164
    Changes in operating assets
      and liabilities:
      (Increase) decrease in:
        Accrued interest receivable                   ---         (292)
        Other current assets                          ---          ---
      Increase (decrease) in:
        Accounts payable                              486       (3,510)
                                                 --------     --------
  Net cash provided by (used in)
    operating activities                           (1,139)      (4,344)

CASH FROM INVESTING ACTIVITIES:
  Issuance of notes receivable,
    related parties                                    --           --
  Proceeds from collection of notes
    receivable, related parties                        --           -- 
  Issuance of notes receivable                    (20,000)     (50,000)
  Proceeds from collection of      
    notes receivable                                   --           -- 
  Purchase of office equipment                         --           --
                                                 --------     --------
  Net cash provided by (used in)
    investing activities                          (20,000)     (50,000)

CASH FROM FINANCING ACTIVITIES:
  Issuance of common stock and
    warrants for cash, net of
    offering costs                                     --           -- 
                                                 --------     --------
  Net cash provided by financing
    activities                                          0            0 

INCREASE (DECREASE) IN CASH AND                        
  CASH EQUIVALENTS                                (21,139)     (54,344)

CASH AND CASH EQUIVALENTS,
  beginning                                       126,892      215,964
                                                 --------     --------
CASH AND CASH EQUIVALENTS, ending                $105,753     $161,620
                                                 --------     --------
See note to financial statements.
                                   -7-
<PAGE>
                       NORTHERN DANCER CORPORATION               
                      (A development stage company)              
                         
                      NOTE TO FINANCIAL STATEMENTS               
                              (Unaudited)
                         
1. The financial statements included herein have been prepared by the Company
without audit except the March 31, 1996 balance sheet which was audited.  The
statements have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission and reflect all adjustments, consisting of
only normal recurring accruals, which are, in the opinion of management,
necessary for a fair statement of the results of operations for the periods
shown.  These statements do not include all information required by generally
accepted accounting principles to be included in a full set of financial
statements.  These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's latest annual 
report on Form 10-KSB.
                               -10-
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

     Northern Dancer Corporation (the "Company") is a development stage enter-
prise formed under the laws of the State of Colorado on May 10, 1988, to
evaluate, structure and complete a merger with, or acquisition of, prospects
consisting of private companies, partnerships or sole proprietorships.  The
Company has not conducted, nor have others made available to it, market
research supporting the viability of the Company's proposed operations.

     The Company sold 23,915,000 Units of no par value common stock at $.02
per Unit, for net proceeds of $478,300 in a public offering which closed on
March 28, 1988.  Each Unit consists of two shares of common stock and one
Class A Common Stock Purchase Warrant.  Each Class A Warrant entitles the
holder to purchase one share of common stock and one Class B Common Stock
Purchase Warrant for $.02; each Class B Warrant entitles the holder to
purchase one share of common stock and one Class C Common Stock Purchase
Warrant for $.04; and each Class C Warrant entitles the holder to purchase an
additional share of common stock at $.06.  All Class A, Class B and Class C
Warrants have been extended to December 31, 1996.

     The Company has generated no revenue other than interest income since
inception.  Management anticipates the Company will earn only interest income
until following the conclusion of a merger or acquisition, if any, as contem-
plated by the Company's business plan.

     The Company is currently in a liquid position, and as of September 30,
1996, had a total working capital of $103,915 consisting primarily of cash and
cash equivalents, as compared to a total working capital of $125,540 as of
March 31, 1996.  The Company anticipates operational costs will be limited
until such time as significant evaluation work is undertaken regarding
prospective mergers or acquisitions.

     At September 30, 1996, the Company had no material commitments for
capital expenditures.

                       PART II - OTHER INFORMATION

Item 1.     Legal Proceedings.
            Not Applicable.

Item 2.     Changes in Securities.
            Not Applicable.

Item 3.     Defaults Upon Senior Securities.
            Not Applicable.

Item 4.     Submission of Matters to a Vote of Security Holders.
            Not Applicable.

Item 5.     Other Information.
            Not Applicable.

Item 6.     Exhibits and Reports on Form 8-K.
            Not Applicable.
                               -8-
<PAGE>
                               SIGNATURES

     In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.

                                    NORTHERN DANCER CORPORATION


Dated: November 5, 1996             By /s/ Joseph E. O'Connor
                                       Joseph E. O'Connor, President and
                                       Treasurer (Principal Financial
                                       and Accounting Officer)