<PAGE>   1
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                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 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: 0-12185

                          ALASKA APOLLO RESOURCES INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

        PROVINCE OF BRITISH COLUMBIA                          NOT APPLICABLE
(STATE OR OTHER JURISDICTION OF INCORPORATION OR             (I.R.S. EMPLOYER
                ORGANIZATION)                               IDENTIFICATION NO.)

      131 PROSPEROUS PLACE, SUITE 17
           LEXINGTON, KENTUCKY                                   40509-1844
 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                        (ZIP CODE)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (606) 263-3948

         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   .
                                             ---  ---
         THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE REGISTRANT'S CLASSES OF
COMMON STOCK, AS OF SEPTEMBER 30, 1997, WAS 9,498,479.

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<PAGE>   2



                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.           FINANCIAL STATEMENTS.

         The information required by this Item 1 appears on pages 8 through 10
of this Report, and is incorporated herein by reference.

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

         In the fourth quarter of 1993, the Registrant acquired its wholly owned
subsidiary, Daugherty Petroleum, Inc. ("DPI"). Since the acquisition, the
Registrant has been aggressively (1) acquiring natural gas and oil properties in
southeastern and western Kentucky, (2) expanding its natural gas production
through joint ventures and drilling programs for its own account, and (3)
diversifying its revenue and asset base to include other segments of natural
resource industry.

         The Company has traditionally realized revenues from its oil and gas
operations. For the nine months ended September 30, 1997, the Registrant drilled
nine natural gas wells and completed nine natural gas wells. This is in contrast
to the same period of 1996 when the Registrant drilled three natural gas wells
and completed seven natural gas wells. The drilling performed in the first nine
months of 1997 is primarily related to a joint venture on the Registrant's
Farmout acreage from Equitable Resources Energy Corporation. Daugherty
Petroleum's interest in four wells on this tract was financed by a subsidiary of
Enron Capital & Trade Resources, Inc. In addition, DPI drilled and completed
three wells in the first nine months of 1997 for a joint venture with Dominion
Resources, Inc. The wells drilled with Dominion Resources were drilled pursuant
to a 15 well drilling program signed in the second quarter of 1995. As of
September 30, 1997, fourteen wells have been drilled pursuant to this contract.
On November 17, 1996, DPI acquired 80% interest in Red River Hardwoods, Inc., a
dimensional hardwood manufacturing company that produces furniture dimension
parts, architectural moulding and industrial flooring.

LIQUIDITY

         The Company continues to acquire natural gas and oil properties in
southeastern and western Kentucky. DPI has provided the Company with a
diversified asset base which includes natural resources other than its
prospective gold and silver mining properties and has also increased the
Company's asset base. During 1996, management continued to invest in areas it
deemed critical in developing an infrastructure suitable to support its future
growth. These areas included ongoing expenses in management, professional and
operational personnel and other expenses deemed necessary to position the
Company for future acquisitions and financing.

         Historically, the Company's revenues have been from its interests in
the producing natural gas and oil wells it operates and owns interest in, and
from its activities as "turnkey driller" and operator for various drilling
programs in its geographic area. In 1996, DPI reduced its dependence on
activities as "turnkey driller" for private investors and instead concentrated
on joint ventures with industry partners. During the first nine months of 1997,
approximately 21% of the Company's revenues were derived from joint venture
drilling. Natural gas and oil operations 






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<PAGE>   3

and revenues accounted for 11% of the revenues. The Company has also begun to
see additional revenues from Red River's activities. Manufacturing sales related
to Red River accounted for 68% of the revenues.

         The Company plans to drill 15 wells during 1997 and will attempt to
earn interests ranging from 12.5% to 50% interest in each well it drills.

         During 1996, the Company held negotiations with several potential
financial institutions and investors with the intent of securing financing
necessary to provide credit facilities for the Company to support existing and
future capital requirements. In December, 1996, DPI signed a loan agreement with
a subsidiary of Enron Capital and Trade Resources, Inc., in the amount of
$340,000 providing financing for one well to be acquired and 50% of the drilling
and completion costs of four natural gas wells. As of September 30, 1997, DPI
had drawn $270,000 on the credit line. It is expected that, in addition to this
credit facility, DPI will acquire additional loans to develop its existing
natural gas leasehold interests.

         Working capital as of September 30, 1997, was a negative $436,378, a
decrease of $316,423 when compared to a negative $119,955 working capital at
September 30, 1996.

         During the first nine months of 1997, and compared to the same period
in 1996, the major changes in the composition of the Company's current assets
were: cash balances increased $213,673 from $102,445 to $316,118; accounts
receivable balances decreased $16,298 from $648,886 to $632,588; and inventories
increased $574,397 from $42,837 to $617,234. Other current assets such as
prepaids and notes receivable decreased $401,780 from $506,585 to $104,805
primarily due to the acquisition of Red River Hardwoods and the resulting
consolidation of Red River's and Daugherty Petroleum's financial statements. The
increase in inventory balances was a result of the Company's acquisition of Red
River during the period. Overall, current assets increased by $369,992 from
$1,300,753 to $1,670,745.

         During the first nine months of 1997, and compared to the same period
in 1996, current liabilities increased $686,415 from $1,420,708 to $2,107,123.
The additional long term debt currently payable relating to the acquisition of
Red River Hardwoods accounted for $100,000 of the increase of $686,415.

         While management believes that the cash flow resulting in its operating
revenues will contribute significantly to its short-term financial commitments
and operating costs, its has developed a plan for the remainder of 1997 to meet
its financial obligations. The plan includes:

         -        Acquisition of revenue producing properties. In March, 1996,
                  DPI acquired working interests in 26 oil wells and six water
                  injection wells which contributed a net increase in revenues
                  of $85,768 during 1996. DPI has made offers for two oil and
                  gas properties which include producing gas wells with
                  developmental acreage for drilling additional wells. As of the
                  date of this document, a Letter of Intent had been signed to
                  acquire oil and gas assets in Kentucky, Louisiana and
                  Tennessee.

                                       3
<PAGE>   4

         -        Sale of non-revenue producing oil properties. The Company has
                  entered into a sale agreement for Niagara Oil, Inc. When
                  successfully completed, this transaction will result in a
                  reduction of debt service. In addition, the purchaser has
                  agreed to contract with Daugherty Petroleum for the
                  development, enhancement, and operation of these wells.

         -        Installation of additional natural gas gathering system. The
                  Company plans to expand its natural gas pipeline by 45,000
                  feet in 1997. The extension will allow for substantially more
                  natural gas to be transported to market.

         -        Obtain addition funding for Red River Hardwoods, Inc.
                  Management believes additional funding will permit Red River
                  increase inventory and fund accounts receivable necessary to
                  sustain substantially increased sales.

RESULTS OF OPERATIONS

         For the period ending September 30, 1997, the Company's gross revenues
increased to $3,582,343 from $1,092,047 for the same period in 1996. The Company
experienced a net loss of $1,066,994 in this period compared to a net loss of
$549,527 for the same period of 1996. $200,095 of the loss for the period ended
September 30, 1997, was a result of the sale of natural gas wells that were not
connected to Daugherty Petroleum's gathering system and other fixed assets.

         The Company's gross revenues were derived from drilling contract
revenues of $756,646 (21%); natural gas and oil operations and production
revenues of $396,891 (11%); and lumber sales and product manufacturing revenues
of $2,428,806 (68%).

         The increase in gross revenues was attributable primarily to the
manufacturing revenues related to Red River Hardwoods. Contract revenues from
drilling activities increased by $346,398 from $410,248 in the first nine months
of 1996 to $756,646 in the first nine months of 1997, an increase of 84%.

         During the first nine months of 1997, total direct costs increased by
$2,254,153 to $2,994,940 compared to $740,787 in the first nine months of 1997.
Direct costs included Red River Hardwoods' expenses and Daugherty Petroleum's
drilling costs for natural gas wells. Depreciation and amortization increased by
$44,901 to $208,028 primarily due to the acquisition of Red River Hardwoods.

         The Company believes there are three key factors that will increase
revenues for the remainder of 1997. First, the prices received for natural gas
produced are up significantly over 1996's overall average price. Second, the
natural gas gathering system expansion planned for 1997 will dramatically
increase Daugherty Petroleum's ability to transport natural gas to the market.
Third, the acquisition of Red River Hardwoods expands the Company's involvement
in Kentucky natural resources to include hardwoods.



                                       4
<PAGE>   5

                                     PART II
                                OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS.

         None.

ITEM 5.           OTHER INFORMATION.

         Not Applicable.

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

         (a)      List of Documents Filed with this Report.
                  -----------------------------------------
<TABLE>
<CAPTION>
                                                                                                       Pages
<S>                                                                                                   <C>
         (1)      Financial Statements, Alaska Apollo Resources Inc., and subsidiary companies--
                  Consolidated Balance Sheet
                       for the period ended September 30, 1997                                            8
                  Consolidated Statement of Profit (Loss)
                       for the period ended September 30, 1997                                            9
                  Consolidated Statement of Cash Flow
                       for the period ended September 30, 1997                                           10
</TABLE>

         All schedules have been omitted since the information required to be
submitted has been included in the financial statements or notes or has been
omitted as not applicable or not required.

         (2)      Exhibits--
                  The exhibits indicated by an asterisk (*) are incorporated by
reference.

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

         3(a)*    Memorandum and Articles for Catalina Energy & Resources Ltd.,
                  a British Columbia corporation, dated January 31, 1979, filed
                  as an exhibit to Form 10 Registration Statement filed May 25,
                  1984. File No. 0-12185.

         3(b)*    Certificate for Catalina Energy & Resources Ltd., a British
                  Columbia corporation, dated November 27, 1981, changing the
                  name of Catalina Energy & Resources Ltd. to Alaska Apollo Gold
                  Mines Ltd., and further changing the authorized capital of the
                  Company from 5,000,000 shares of common stock, without par
                  value per share, to 20,000,000 shares of common stock, without
                  par value per share, filed as an exhibit to Form 10
                  Registration Statement filed May 25, 1984. File No. 0-12185.



                                       5
<PAGE>   6

         3(c)*    Certificate of Change of Name for Alaska Apollo Gold Mines
                  Ltd., a British Columbia corporation, dated October 14, 1992,
                  changing the name of Alaska Apollo Gold Mines Ltd. to Alaska
                  Apollo Resources Inc., and further changing the authorized
                  capital of the Company from 20,000,000 shares of common stock,
                  without par value per share, to 6,000,000 shares of common
                  stock, without par value per share.

         3(d)*    Altered Memorandum of Alaska Apollo Resources Inc., a British
                  Columbia corporation, dated September 9, 1994, changing the
                  authorized capital of the Company from 6,000,000 shares of
                  common stock, without par value per share, to 20,000,000
                  shares of common stock, without par value per share.

         4*       See Exhibit No. 3(a).

         10(a)*   Alaska Apollo Resources Inc. 1997 Stock Option Plan

         10(b)*   Incentive Stock Option Agreement by and between Alaska Apollo
                  Resources Inc. and William S. Daugherty dated March 7, 1997.

         10(c)*   Warrant Agreement by and between Alaska Apollo Resources Inc.
                  and Jayhead Investments Limited dated March 7, 1997.

         10(d)*   Warrant Agreement by and between Alaska Apollo Resources Inc.
                  and Trio Growth Trust dated March 7, 1997.

         10(e)*   Warrant Agreement by and between Alaska Apollo Resources Inc.
                  and Exergon Capital S.A. dated March 7, 1997.

         21       Subsidiaries of the Company:

                  -        Niagara Oil, Inc., a Kentucky corporation
 
                  -        Daugherty Petroleum, Inc., a Kentucky corporation
 
                  -        Red River Hardwoods, Inc., a Kentucky corporation

         27       Financial Data Schedule

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

                  None.



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<PAGE>   7



                                   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 of the
undersigned hereunto duly authorized.

                                      ALASKA APOLLO RESOURCES INC.

                                      By:  /s/ William S. Daugherty
                                         -----------------------------------
                                         William S. Daugherty, President

Dated: November 14, 1997


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<PAGE>   8
                          ALASKA APOLLO RESOURCES, INC.

                           CONSOLIDATED BALANCE SHEET
                           (UNITED STATES DOLLARS)
                           UNAUDITED
<TABLE>
<CAPTION>
                                                  30-SEP-96        30-SEP-97
                                                 ------------     ------------
<S>                                              <C>              <C>         
                                     ASSETS
                                     ------
CURRENT ASSETS

 Cash                                            $    102,445     $    316,118
 Account Receivable                                   648,886          632,588
 Inventory                                             42,837          617,234
 Prepaid Expenses                                       5,659            7,284
 Intercompany and Other Receivable                    500,926                0
 Other Current                                              0           97,521
                                                 ------------     ------------
 Subtotal Current                                   1,300,753        1,670,745

MINING PROPERTY AND
RELATED EXPENDITURES-NET                           11,250,790       11,252,733

OIL AND GAS PROPERTIES - NET                        4,207,582        3,776,068

CAPITAL ASSETS                                        284,987        1,985,415

OTHER ASSETS
 Deferred Tax Benefit                                       0                0
 Bonds and Deposits                                    42,919           68,282
 Related Party Receivable                             107,645           51,612
 Other Assets                                               0          351,885
                                                 ------------     ------------
Subtotal Other Assets                                 150,564          471,779

NOTES RECEIVABLE                                            0                0

GOODWILL (NET OF ACCUMULATED
AMORTIZATION OF $741,610)                           1,252,696        1,362,059

INCORPORATION COSTS                                         0                0
                                                 ------------     ------------
TOTAL ASSETS                                     $ 18,447,372     $ 20,518,799
                                                 ============     ============

                                   LIABILITIES
                                   -----------
CURRENT LIABILITIES
 Bank Loan                                       $      7,000     $     57,000
 Account Payable and Accrued Liabilities            1,138,934        1,497,805
 Long Term Debt                                       274,774          510,000
 Loans Payable                                              0           42,318
                                                 ------------     ------------

Subtotal Current Liabilities                        1,420,708        2,107,123

LONG-TERM DEBT                                      1,557,053        3,857,539

DEFERRED INCOME TAXES                                   8,890                0
NON-CONTROLLING INTEREST                                    0              757
                                                 ------------     ------------
Subtotal Liabilities                                2,986,651        5,965,419

                               SHAREHOLDER EQUITY
                               ------------------
CAPITAL STOCK
Issued                                             20,459,186       20,670,461
Subscribed
Current Period Earnings                              (549,527)      (1,066,994)
Deficit                                            (4,448,938)      (5,050,087)
                                                 ------------     ------------
Subtotal Shareholder Equity                        15,460,721       14,553,380
                                                 ------------     ------------
TOTAL LIABILITIES AND SHAREHOLDER EQUITY         $ 18,447,372     $ 20,518,799
                                                 ============     ============
</TABLE>

                                     Page 8


<PAGE>   9




                          ALASKA APOLLO RESOURCES, INC.

                          CONSOLIDATED STATEMENT OF PROFIT (LOSS)
                          (UNITED STATES DOLLARS)
                          UNAUDITED
<TABLE>
<CAPTION>
                                     FOR THE NINE MONTH PERIOD ENDING
                                          30-SEP-96                          30-SEP-97
                                          ---------                          ---------
<S>                                  <C>              <C>                <C>              <C>   
REVENUE

GROSS REVENUES                           $ 1,092,047             100.0%     $ 3,582,343              100.0%

Direct Costs                                 740,787              67.8%       2,994,940               83.6%
                                         -----------     -------------      -----------      -------------

GROSS PROFIT                                 351,260              32.2%         587,403               16.4%

GENERAL AND ADMINISTRATIVE COSTS

 Salaries and Wages                          198,836              18.2%         251,040                7.0%
 Consulting and Management Fees               74,268               6.8%          98,947                2.8%
 Office and General                           47,605               4.4%          73,165                2.0%
 Legal                                       113,442              10.4%         142,288                4.0%
 Travel and Entertainment                     33,485               3.1%          45,163                1.3%
 Shareholder and Investor Information         69,333               6.3%          66,632                1.9%
 Advertising and Promotion                     6,760               0.6%          32,559                0.9%
 Property and Payroll Taxes                   18,210               1.7%          23,264                0.6%
 Insurance                                    35,152               3.2%          67,491                1.9%
 Depreciation and Amortization               163,127              14.9%         208,028                5.8%
 Rent                                         24,086               2.2%          72,947                2.0%
 Accounting and Audit                         82,510               7.6%          25,394                0.7%
 Repairs and Maintenance                       5,476               0.5%           5,152                0.1%
 Licenses and Fees                            36,242               3.3%          34,894                1.0%
 Bad Debt                                          0                            133,946                3.7%
                                         -----------     -------------      -----------      -------------

SUBTOTAL-G&A COSTS                           908,532              83.2%       1,280,910               35.8%

Gain (Loss) on Asset Sales                         0               0.0%        (200,095)              -5.6%
Interest and Other Income (Expense)            7,745               0.7%        (173,392)              -4.8%
                                         -----------     -------------      -----------      -------------
INCOME BEFORE TAX                           (549,527)           -50.3%       (1,066,994)             -29.8%
 Income Tax Benefit (Expense)                      0               0.0%               0                0.0%
MINORITY PORTION                                   0               0.0%               0                0.0%
                                         -----------     -------------      -----------      -------------
NET PROFIT (LOSS) FOR CURRENT PERIOD        (549,527)           -50.3%       (1,066,994)             -29.8%
                                                         =============                       =============
DEFICIT, beginning of period              (4,448,938)                        (5,050,087)
                                         -----------                        ----------- 
DEFICIT, end of period                   $(4,998,465)                       $(6,117,081)
                                         ===========                        =========== 
Shares Outstanding                         8,504,954                          9,498,479

EARNINGS PER SHARE                       $     (0.06)                       $     (0.11)
                                         ===========                        =========== 
</TABLE>


                                     Page 9

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                          ALASKA APOLLO RESOURCES, INC.

                          CONSOLIDATED STATEMENT OF CASH FLOW
                          (UNITED STATES DOLLARS)
                          UNAUDITED
<TABLE>
<CAPTION>
                                      FOR THE NINE MONTH PERIOD ENDING
                                                             30-SEP-96       30-SEP-97
                                                             ---------       ---------
<S>                                                         <C>          <C>
OPERATING ACTIVITIES
 Net Income (Loss)                                           $(549,527)    $(1,066,994)
 Minority Interest                                                   0               0
 Amortization, Depreciation, Depletion and Non-Cash Items      225,596         518,385
 Change in Accounts Receivable                                (138,943)        (74,206)
 Change in Inventory                                            38,053         (36,919)
 Change in Prepaid Expenses                                      5,762               0
 Change in Intercompany and Other Accounts Receivable         (211,022)              0
 Change in Other Current Assets                                      0         (63,924)
 Change in Accounts Payable and Accrued Expenses              (212,139)         32,129
                                                             ---------     -----------
Net Cash From Operating Activities                            (842,220)       (691,529)

FINANCING ACTIVITIES
 Issue of Capital Stock                                        390,996         149,991
 Change in Notes Payable                                      (147,207)              0
 Change in Loan Payable                                        699,383         395,443
                                                             ---------     -----------
Net Cash from Financing Activities                             943,172         545,434

INVESTING ACTIVITIES
 Change in Related Receivables                                       0            6692
 Change in MiningResourceiProperties                           (39,328)              0
 Change in Oil and Gas Properties                             (212,143)        394,627
 Change in Capital Assets                                       73,886          32,059
 Change in Other Assets                                        (22,769)       (217,733)
 Change in Note Receivable                                      17,556               0
 Change in Retained Earnings                                    45,311               0
                                                             ---------     -----------
Net Cash From Investing Activities                            (137,487)        215,645
                                                             ---------     -----------
CHANGE IN CASH                                                 (36,535)         69,550

CASH, BEGINNING OF PERIOD                                      138,980               0
                                                             ---------     -----------
CASH, END OF PERIOD                                          $ 102,445     $    69,550
                                                             =========     ===========
</TABLE>



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