<PAGE>
                                       

                      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, 1996
                                       
                                      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                      (I.R.S. EMPLOYER
     INCORPORATION OR ORGANIZATION)                     IDENTIFICATION NO.)

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

      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, 1996, WAS 8,504,954 .

<PAGE>
                                       
                                    PART I
                            FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

The information required by this Item 1 appears on pages 11 through 13 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 
the oil and gas industry.

The Registrant has traditionally realized revenues from two primary sources. 
The first is from its interests in the producing natural gas and oil wells it 
operates or in which it owns fractional interests.  The second is derived 
from its activities as a "turnkey driller" and operator for various drilling 
programs within its geographic area.  The Registrant is expanding these 
revenue sources to include pipeline construction and operation and the 
marketing and aggregation of natural gas direct to commercial accounts and 
utility systems.  Revenues from these sources began to be realized during the 
third quarter of 1995.  As discussed below, during the first nine months of 
1996, the Registrant's revenues were derived primarily from proceeds 
attributable to the sale of its natural gas and oil production and its 
turnkey drilling and operating contracts.  The decline in third quarter 
drilling activities resulted from 1) a delay in the completion of a drilling 
program started in July 1995 and normal seasonal fluctuations in these 
activities.  For the nine month period ending September 30, 1996, the 
Registrant drilled three natural gas wells and completed seven wells. This is 
in contrast to 1995 when, during the same period, the Registrant drilled and 
completed nine natural gas wells.  The Registrant earns an interest ranging 
from 7.5 percent to 25 percent net revenue interest in each well it drills as 
a program sponsor or turnkey driller.  During the second quarter of 1995, the 
Registrant completed negotiations with a major joint venture partner to 
develop a minimum of 15 additional wells.  During the period from July 1995 
to September 30, 1996, the Registrant had drilled eleven and completed  five 
of those drilled.

On April 12, 1996, the Registrant entered into a farm out agreement to 
develop 5,400 acres in Bell and Knox counties in southeastern Kentucky.  
Provided drilling commitments are met on the original 5,400 acres, this 
agreement gives the Registrant the right of first refusal on an additional 
block of 8,500 acres contiguous to the original farm out acreage and its 
existing area of interest. In July, 1996, the Registrant entered into a 
partnership agreement for the drilling of the first well necessary to 
maintain the drilling commitment on this farm out acreage.

As of June 30, 1996, the Registrant had entered into and agreement for the 
sale of Niagara Oil, Inc., a wholly owned subsidiary of DPI.  This  
transaction will result in a reduction of debt service and

                                       2

<PAGE>

operating expenses currently being paid by the Registrant.  In addition, the 
purchaser will contract with DPI for the development, enhancement, and 
operation of these wells on a cost plus basis. As of the date of this report, 
this transaction has not been closed.

LIQUIDITY

The Registrant plans to drill five wells during the remainder of 1996 and 
will attempt to earn interests ranging from 7.5 percent to 25 percent net 
revenue interests in each well it drills as a program sponsor or turnkey 
driller.  In addition, the Registrant is currently negotiating with several 
prospective joint venture partners to develop its existing leased acreage as 
well as acreage it has obtained in 1996.  Management believes that these 
negotiations could result in the drilling of three of its five targeted wells 
during the remainder of 1996.

During the third quarter of 1996, the Registrant realized additional revenues 
from the purchase and sale of lumber related to a proposed acquisition of a 
hardwood lumber manufacturing facility.  Year to date revenues related to 
this activity accounted for 26.8 percent of the Registrant's total gross 
revenues.

In addition, production resulting from the acquisition of various natural gas 
and oil reserves, the treatment of wells drilled and completed in 1995 and 
the first three quarters of 1996, as well as projected turnkey drilling 
programs will, in the opinion of management, provide sufficient cash flow to 
meet the short term operating needs and financial commitments of the 
Registrant.  The Registrant's revenues should be further enhanced in 1996 as 
additional revenue sources materialize from agreements reached during 1995 
such as the operation of a natural gas pipeline gathering system and the 
completion of the acquisition of the hardwood lumber manufacturer.

Working capital for the period ending September 30, 1996, was a negative 
$119,955.  Compared to the same period in 1995, working capital was a 
negative $341,950, reflecting an improvement of $221,995.

Compared to the same nine month period in 1995, the major change in the 
composition of the Registrant's current assets consisted of the increase in 
intercompany and other notes receivable  of $500,926 from $0 to $500,926. 
Accounts receivable declined by $108,546 from $757,432 to $648,886.  Lumber 
inventories increased to $42,837 from $0 during the same period.  Prepaid 
expenses, short term investments and other current assets incurred a net 
decrease of $97,458 from $103,117 to $5,659.  Current liabilities increased 
from $180,785 from $1,239,923 to $1,420,708 with the components of this 
change being the decrease of current bank loans of $43,242 and the increase 
in accounts receivable and current portion of long term debt of $53,253 and 
$170,774 respectively.

While management believes that the cash flow resulting from operating 
revenues will contribute significantly to its short term financial 
commitments and operating costs, it has implemented a plan developed in early 
1996 to meet its short term financial obligations.  This plan includes:

    Sale of miscellaneous assets of the Registrant.  The Registrant owns real
    estate in Williamsburg, Kentucky, consisting of a field office and a
    separate office/apartment building.

                                       3

<PAGE>

    As of the date of this report, the Registrant has sold the office/apartment
    building.  It will retain the field office for use in its eastern Kentucky
    natural gas production operations.  The sale of this real estate will reduce
    debt service by approximately $16,000 per year.  The Registrant has also
    identified surplus vehicles and equipment, the sale of which has resulted
    in a reduction of debt service in the amount of $16,740 per year.
    
    Negotiations related to third party loans.  The Registrant is negotiating
    with various third party lenders, including major shareholders, to secure
    short term loans.  If successful, these loans will be available during
    1996.  The Registrant has entered negotiations with two energy lenders to
    secure financing for its drilling and development activities.  These
    negotiations are ongoing and no commitments have been made as to the final
    structure or amount of this financing.
    
    The Registrant has also negotiated extended payment arrangements with
    various vendors.

In July, 1996, the Registrant authorized 683,812 additional shares and issued,
pursuant to a Form S-8 registration statement, 626,998 shares of its common
stock.  The aggregate value of the issued shares was $265,642, and was issued to
various vendors for services rendered and to employees as part of an employee
stock plan.  The details of this stock issue are as follows:

                                       
                STOCK ISSUED TO VENDORS FOR SERVICES RENDERED

<TABLE>
                                                                           VALUE OF
                           # SHARES     # SHARES  # SHARES TO  PRICE PER    SHARES
VENDOR                    AUTHORIZED     ISSUED    BE ISSUED     SHARE      ISSUED
------                    ----------    --------   ---------   ---------   --------
<S>                         <C>         <C>         <C>         <C>        <C>
Robert L. McIntyre          100,775     100,775          0      $0.445     $ 44,800
Norman T. Reynolds          148,245     148,245          0      $0.380       56,333
Fred Mercer & Associates     32,200      32,200          0      $0.500       16,100
CFO Services, Inc.          190,832     134,018     56,814      $0.500       67,009
BCD Softech, Inc.             7,760       7,760          0      $0.500        3,880
                            -------     -------     ------                 --------
Total-Vendors               479,812     422,998     56,814                 $188,122
                                        
                          STOCK ISSUED TO EMPLOYEES

                                                                           VALUE OF
                           # SHARES     # SHARES  # SHARES TO  PRICE PER    SHARES
EMPLOYEE GROUP            AUTHORIZED     ISSUED    BE ISSUED     SHARE      ISSUED
--------------            ----------    --------   ---------   ---------   --------

Officers and Directors
 William S. Daugherty,
  President and Chairman     50,000      50,000          0      $ 0.38    $ 19,000
 Timothy F. Guthrie,
  Chief Financial
  Officer and
  Secretary                  50,000      50,000          0      $ 0.38      19,000
Employees as a Group        104,000     104,000          0      $ 0.38      39,520
                            -------     -------     ------                --------
Total-Employees             204,000     204,000          0                 $77,520
</TABLE>

On August 23, 1996, the Registrant accepted a subscription, pursuant to 
Regulation S, 500,000 shares of its common stock for $125,000 ($0.25 per 
share). These funds were used to meet working capital requirements.

In September, 1996, the Registrant issued 135,246 shares of restricted common 
stock valued at

                                       4

<PAGE>

$61,283 ($0.45 per share) as payment for a judgment lien against the prior 
owner of property located in Williamsburg, Kentucky.


RESULTS OF OPERATIONS

Compared to the same period of 1995, the Registrant's gross revenues declined 
by 24% to $1,092,047 from $1,444,800.  For the period, the Registrant 
experienced a net loss of $549,527 in 1996 compared to a net loss of $552,500 
in 1995.

The Registrant's gross revenues are derived from turnkey contract revenues of 
$410,248 (37.57 percent); natural gas and oil production revenues of $327,115 
(29.95 percent); operating revenues of $57,476 (5.3 percent); lumber sales of 
$293,450 (26.9 percent) and miscellaneous revenues of $3,759 (0.34 percent).

Gross revenues for the period ending September 30 were impacted by the level 
of contract revenue from turnkey drilling activities which declined by 
$621,458 from $1,031,732 in 1995 to $410,248 in 1996.  These revenues are 
derived from partnerships sponsored by the Registrant or others who contract 
with the Registrant to drill and operate wells on a contract basis.  These 
partnerships are, to a large extend, driven by investors' desire for the tax 
benefits associated with oil and gas investments.  Historically, the drilling 
activity generated from these partnerships result in significant year-end 
revenues and drilling activity during the first three to nine months of the 
following year. In 1995, the Registrant sponsored a partnership that was 
intended to provide these revenues but that partnership failed to reach the 
minimum aggregate investment necessary for it to be completed.  In addition, 
other customers of the Registrant, that is other partnerships who would 
typically use the Registrant as a turnkey driller and operator, encountered 
similar problems in closing year-end investments which adversely impacted 
these revenues.

Total operating expenses were $908,532 for the first nine months of 1996 and 
$1,110,699 for the same period in 1995 reflecting a decrease of $202,167. 
Operating expenses for the quarter included non cash items such as 
amortization and depreciation of $167,127.  Non cash items included $134,217 
for the amortization of goodwill related to the Registrant's acquisition of 
DPI.

While the Registrant is successfully achieving its goal of asset growth, it 
has incurred costs and expenses above historical levels as a result of these 
efforts.  Management has implemented cost containment measures to control 
cost and to reduce overhead during the first nine months of 1996.

The Registrant believes there are three factors that will increase the price 
it receives for its natural gas production.  First, the acquisition of gas 
reserves from the Wentzloff Energy and Michigan Southern Energy, Inc. 
partnerships is providing a much larger production base with which to 
negotiate contracts previously unavailable to the Registrant.  Secondly, the 
natural gas gathering systems completed in 1995 and currently under 
construction will allow the Registrant to diversify its customer base and 
access markets where prices are higher.  Thirdly, natural gas prices in 1996 
are up significantly over 1995, and projected market trends indicate that 
higher prices will prevail 

                                       5

<PAGE>

throughout 1996.  The combined effect will be a higher overall price for the 
Registrant's production.  The Registrant intends to aggressively pursue new 
contracts based on its increased reserves, increased production capacity and 
improved distribution.

                                       PART II
                                  OTHER INFORMATION
                                           
ITEM 1.  LEGAL PROCEEDINGS.

Not Applicable.

ITEM 5.  OTHER INFORMATION.

Not Applicable.

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

    (a)  LIST OF DOCUMENTS FILED WITH THIS REPORT.    
                                                                          PAGE
                                                                          ----
    (1)  Financial statements, Alaska Apollo Resources Inc. and 
          subsidiary companies--
         Summary Consolidated Balance Sheet
                for the period ended September 30, 1996                    11
         Summary Consolidated Statement of Profit (Loss)
                for the period ended September 30, 1996                    12
         Consolidated Statement of Change in Financial Position
                for the period ended September 30, 1996                    13

    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.
    
    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 

                                        6


<PAGE>

         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).

  9*     Voting Trust Agreements.  Exhibits 3, 10 and 13 to Form 8-K for the
         Company dated March 6, 1994.  File No. 0-12185.

  10(a)* Letter of Intent dated May 8, 1992 between Alaska Apollo Gold
         Mines Limited and the Alaska Syndicate.  Exhibit 10(f) to Form 10-K
         for the Company for the fiscal year ended December 31, 1992.  File No.
         0-12185.

  10(b)* Letter of Intent between Daugherty Petroleum, Inc. and Michigan
         Southern Energy Corporation dated March 31, 1994 described in Exhibit
         10(b) to Form 10-K for the Company for the fiscal year ended December
         31, 1993.  (File No. 0-12185).

  10(c)* Redevelopment Agreement between the Company and Summit Funding,
         Inc. dated July 1993 described in Exhibit 10(c) to Form 10-K for the
         Company for the fiscal year ended December 31, 1993.  (File No. 
         0-12185).

  10(d)* Agreement dated December 22, 1993 by and between Daugherty
         Petroleum, Inc. and Wentzloff Energy, Inc. with respect to the
         purchase by Daugherty Petroleum, Inc. of 6.5 billion cubic feet of
         natural gas or its equivalent from 29 Kentucky partnerships produced
         since April 1, 1993.  Exhibit "1" to Form 8-K for the Company dated
         March 6, 1994.  File No. 0-12185.

  10(e)* Trust Agreement dated December 22, 1993 by and between the
         various partnerships described in Exhibit "1" to Form 8-K for the
         Company dated March 6, 1994 (File No. 0-12185) and Breeding, McIntyre
         & Cunningham, P.S.C. with respect to the 1,086,108 shares of the
         Common Stock of the Company received by the partnerships in
         consideration of the sale and purchase described in Exhibit "1"
         attached thereto.

  10(f)* Voting Trust Agreement dated December 22, 1993 by and between
         Wentzloff Energy, Inc. and the various partnerships described in
         Exhibit "1" to Form 8-K for the Company dated March 6, 1994 (File No.
         0-12185) and Breeding, McIntyre & Cunningham, P.S.C. with respect to
         the 1,086,108 shares of the Common Stock of the Company received by
         the partnerships in consideration of the sale and purchase described
         in Exhibit "1" attached thereto.

  10(g)* Gas Purchase and Sale Agreement dated December 22, 1993 by and
         between the various partnerships described in Exhibit "1" to Form 8-K
         for the Company dated March 6, 1994 (File No. 0-12185) and Daugherty
         Petroleum, Inc. with respect to the production of gas resulting from
         the sale and purchase of gas pursuant to the sale and purchase
         described in Exhibit "1" attached thereto.

  10(h)* Proxy dated December 22, 1993 by and between Wentzloff Energy,
         Inc. and the various partnerships described in Exhibit "1" to Form 8-K
         for the Company dated March 6, 1994 (File No. 0-12185) in favor of
         Breeding, McIntyre & Cunningham, P.S.C. with respect to the voting of
         the 1,086,108 shares of the Common Stock of the Company received by
         the partnerships in consideration of the sale and purchase described
         in Exhibit "1" attached thereto.

                                       7
<PAGE>

  10(i)* Agreement for Purchase and Sale dated as of September 24, 1993 by
         and between Wentzloff Energy, Inc. and Daugherty Petroleum, Inc. with
         respect to the purchase and sale of the of 6.5 billion cubic feet of
         natural gas or its equivalent from 29 Kentucky partnerships produced
         since April 1, 1993 as described in Exhibit "1" to Form 8-K for the
         Company dated March 6, 1994 (File No. 0-12185), as well as the
         purchase by Daugherty Petroleum, Inc. of undivided working interests
         in oil and gas leases and certain equipment, machinery and personal
         property with respect to such leases from Wentzloff Energy, Inc.

  10(j)* Agreement and Amendment to Agreement dated November 16, 1993 by
         and between Daugherty Petroleum, Inc., Wentzloff Energy, Inc. and
         Wentzloff Partners, Inc. with respect to the amendment of the
         agreement described in Exhibit "6" to Form 8-K for the Company dated
         March 6, 1994 (File No. 0-12185), and the recasting of the agreement
         in its current form.

  10(k)* Agreement and Amendment to Agreement dated November 16, 1993 by
         and between Daugherty Petroleum, Inc., Wentzloff Energy, Inc. and
         Southern Drilling Co., Inc. with respect to the amendment of the
         agreement described in Exhibit "6" to Form 8-K for the Company dated
         March 6, 1994 (File No. 0-12185), and the recasting of the agreement
         in its current form.

  10(l)* Escrow Agreement dated November 15, 1993 by and between Wentzloff
         Energy, Inc., Daugherty Petroleum, Inc., Inc., Alaska Apollo Resources
         Inc., and Breeding, McIntyre & Cunningham, P.S.C. with respect to the
         60,000 shares of the Common Stock of the Company received by Wentzloff
         Energy, Inc. in consideration of the sale and purchase described in
         Exhibit "6" to Form 8-K for the Company dated March 6, 1994.  (File
         No. 0-12185).

  10(m)* Voting Trust Agreement dated November 16, 1993 by and between
         Wentzloff Energy, Inc. and Breeding, McIntyre & Cunningham, P.S.C.
         with respect to the 60,000 shares of the Common Stock of the Company
         received by Wentzloff Energy, Inc. in consideration of the sale and
         purchase described in Exhibit "6" to Form 8-K for the Company dated
         March 6, 1994.  (File No. 0-12185).

  10(n)* Proxy executed by Wentzloff Energy, Inc. covering the 60,000
         shares of the Common Stock of the Company received by Wentzloff
         Energy, Inc. in consideration of the sale and purchase described in
         Exhibit "6" to Form 8-K for the Company dated March 6, 1994.  (File
         No. 0-12185).

  10(o)* Escrow Agreement dated November 15, 1993 by and between Southern
         Drilling Co., Inc., Daugherty Petroleum, Inc., Alaska Apollo Resources
         Inc., and Breeding, McIntyre & Cunningham, P.S.C. with respect to the
         20,000 shares of the Common Stock of the Company received by Southern
         Drilling Co., Inc. in consideration of the sale and purchase described
         in Exhibit "6" to Form 8-K for the Company dated March 6, 1994.  (File
         No. 0-12185).

  10(p)* Voting Trust Agreement dated November 16, 1993 by and between
         Southern Drilling Co., Inc. and Breeding, McIntyre & Cunningham,
         P.S.C. with respect to the 20,000 shares of the Common Stock of the
         Company received by Southern Drilling Co., Inc. in consideration of
         the sale and purchase described in Exhibit "6" to Form 8-K for the
         Company dated March 6, 1994.  (File No. 0-12185).

  10(q)* Proxy executed by Southern Drilling Co., Inc. covering the 20,000
         shares of the Common Stock of the Company received by Southern
         Drilling Co., Inc. in consideration of the sale and purchase described
         in Exhibit "6" to Form 8-K for the Company dated March 6, 1994.  (File
         No. 0-12185).

  10(r)* Stock Purchase Agreement by and between William S. Daugherty,
         Alaska Apollo Resources, Inc. and Daugherty Petroleum, Inc. dated July
         20, 1993.  Reference is made to Form 8-K, dated November 11, 1993,
         filed with the Securities and Exchange Commission on November 12,
         1993.  (File No. 0-12185).

  10(s)* Subscription Agreement dated July 30, 1992 between Alaska Apollo
         Gold Mines Ltd. and Alaska Investments Ltd. described in Exhibit 10(g)
         to Form 20-F for the Company for the fiscal year ended 

                                        8
<PAGE>

         December 31, 1993.  (File No. 0-12185).

  10(t)* Letter of Intent dated March 15, 1993 between Alaska Apollo
         Resources Inc. and Daugherty Petroleum, Inc. described in Exhibit
         10(h) to Form 20-F for the Company for the fiscal year ended December
         31, 1993.  (File No. 0-12185).

  10(u)* Director's Incentive Stock Option Agreement dated January 10,
         1994 between the Company and John R. Bogert.

  10(v)* Director's Incentive Stock Option Agreement dated January 10,
         1994 between the Company and William S. Daugherty.

  10(w)* Director's Incentive Stock Option Agreement dated January 10,
         1994 between the Company and James K. Klyman-Mowczan.

  10(x)* Director's Incentive Stock Option Agreement dated January 10,
         1994 between the Company and Colin R. Bowdidge.

    (b)  REPORTS ON FORM 8-K.

    (1)  Current Report on Form 8-K for the Company dated November 11, 1993,
         File No. 0-12185, reporting the acquisition of Daugherty Petroleum,
         Inc.  (Item 2.  Acquisition or Disposition of Assets.)

    (2)  Current Report on Form 8-K/A for the Company dated November 30, 1993,
         File No. 0-12185, with respect to Financial Statements and Stock
         Purchase Agreement pertaining to the acquisition of Daugherty
         Petroleum, Inc.  (Item 7.  Financial Statements and Exhibits.)

    (3)  Current Report on Form 8-K for the Company dated March 6, 1994, File
         No. 0-12185, reported the acquisition by the Company of 6.5 billion
         cubic feet of gas or its equivalent from 29 Kentucky partnerships, as
         well as 6,500 acres of oil and gas leases and various undivided
         working interests in oil and gas leases and equipment and machinery. 
         The required financial statements and pro forma financial information
         were not filed at the time the report was filed.  Instead, the
         financial statements and pro forma financial information were to be
         filed by March 31, 1994.  (Item 2.  Acquisition or Disposition of
         Assets.)

    (4)  Current Report on Form 8-K for the Company dated March 24, 1994, File
         No. 0-12185, reported the resignation of Milton Klyman as a director
         of the Company on March 24, 1994.  (Item 5.  Other Events.)

    (5)  Current Report on Form 8-K/A, Amendment No. 1, for the Company dated
         March 31, 1994, File No. 0-12185, advising that the required financial
         statements and pro forma financial information with respect to the
         Form 8-K dated March 6, 1994 would be filed by April 15, 1994.  (Item
         7.  Financial Statements and Exhibits.)

    (6)  Current Report on Form 8-K/A, Amendment No. 2, for the Company dated
         April 14, 1994, File No. 0-12185, advising that the required financial
         statements and pro forma financial information with respect to the
         Form 8-K dated March 6, 1994 would be filed by April 29, 1994.  (Item
         7.  Financial Statements and Exhibits.)

    (7)  Current Report on Form 8-K/A, Amendment No. 3, for the Company dated
         May 6, 1994, File No. 0-12185, filing the required financial
         statements and pro forma financial information with respect to the
         Form 8-K dated March 6, 1994.  (Item 7.  Financial Statements and
         Exhibits.)

    (8)  Current Report on Form 8-K for the Company dated August 24, 1995, File
         No. 0-12185, reported he filing of a lawsuit by J. Rudolph Oliver. 
         (Item 5.  Other Events.)

                                           9

<PAGE>

                                      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



                                By  /s/ Timothy F. Guthrie    
                                    --------------------------------
                                    Timothy F. Guthrie, Chief Financial Officer

Dated: November 14, 1996




                                       10

<PAGE>

                        ALASKA APOLLO RESOURCES, INC.
 
                     SUMMARY CONSOLIDATED BALANCE SHEET
                          (UNITED STATES DOLLARS)

                                           UNAUDITED     UNAUDITED
                                           30-SEP-95     30-SEP-96
                                           ---------     ---------

                                   ASSETS
CURRENT ASSETS
  Cash                                       37,424       102,445
  Short Term Investments                     33,820             0
  Account Receivable                        757,432       648,886
  Inventory                                       0        42,837
  Prepaid Expenses                           53,297         5,659
  Intercompany and Other Receivable                       500,926
  Other Current                              16,000             0
                                         ----------    ----------
Subtotal Current                            897,973     1,300,753

MINING PROPERTY AND 
RELATED EXPENDITURES-NET                 11,231,967    11,250,790

OIL AND GAS PROPERTIES - NET              4,156,683     4,207,582

CAPITAL ASSETS                              353,153       284,987

OTHER ASSETS
   Deferred Tax Benefit                     219,805             0
   Bonds and Deposits                        41,919        42,919
   Related Party Receivable                 163,055       107,645

NOTES RECEIVABLE                             30,926             0

GOODWILL (NET OF ACCUMULATED
AMORTIZATION OF $447,390)                 1,431,652     1,252,696

INCORPORATION COSTS                             428             0
                                         ----------    ----------
TOTAL ASSETS                             18,527,561    18,447,372
                                         ----------    ----------
                                         ----------    ----------

                               LIABILITIES
CURRENT LIABILITIES
  Bank Loan                                  50,242         7,000
  Account Payable and Accrued 
   Liabilities                            1,085,681     1,138,934
  Long Term Debt                            104,000       274,774
  Loans Payable                                   0             0
                                         ----------    ----------
Subtotal Current Liabilities              1,239,923     1,420,708

LOANS PAYABLE                               890,822     1,557,053

DEFERRED INCOME TAXES                             0         8,890
                                         ----------    ----------
Subtotal Liabilities                      2,130,745     2,986,651


                            SHAREHOLDER EQUITY
CAPITAL STOCK
Issued                                   20,003,537    20,459,186
Current Period Earnings                                  (549,527)
Deficit                                  (3,606,721)   (4,448,938)
                                         ----------    ----------
Subtotal Shareholder Equity              16,396,816    15,460,721

TOTAL LIABILITIES AND SHAREHOLDER 
 EQUITY                                  18,527,561    18,447,372
                                         ----------    ----------
                                         ----------    ----------
                                                  0             0


             Unaudited-Internally Prepared by Company Management

                                      11
<PAGE>
                                       
                        ALASKA APOLLO RESOURCES, INC.

                            SUMMARY CONSOLIDATED
                          STATEMENT OF PROFIT (LOSS)
                           (UNITED STATES DOLLARS)
                                  UNAUDITED

                          FOR THE NINE MONTHS ENDING 

<TABLE>

                                           UNAUDITED                   UNAUDITED
                                           30-SEP-95                   30-SEP-96
                                           ---------                   ---------
<S>                                        <C>            <C>          <C>           <C>
REVENUE

GROSS REVENUES                             1,444,801      100.0%       1,092,047     100.0%

Direct Costs                               1,112,932       77.0%         740,787      67.8%
                                           ---------                   ---------

GROSS PROFIT                                 331,869       23.0%         351,260      32.2%

GENERAL AND ADMINISTRATIVE COSTS
  Salaries and Wages                         219,486       15.2%         198,836      18.2%
  Consulting and Management Fees             177,774       12.3%          74,268       6.8%
  Office and General                          74,522        5.2%          47,605       4.4%
  Legal                                      107,598        7.4%         113,442      10.4%
  Travel and Entertainment                    43,882        3.0%          33,485       3.1%
  Shareholder and Investor Information        92,955        6.4%          69,333       6.3%
  Advertising and Promotion                        0        0.0%           6,760       0.6%
  Property and Payroll Taxes                  31,365        2.2%          18,210       1.7%
  Insurance                                   30,555        2.1%          35,152       3.2%
  Depreciation and Amortization              176,745       12.2%         163,127      14.9%
  Engineering                                 22,625        1.6%               0       0.0%
  Rent                                        24,352        1.7%          24,086       2.2%
  Accounting and Audit                        46,050        3.2%          82,510       7.6%
  Repairs and Maintenance                      8,719        0.6%           5,476       0.5%
  Licenses and Fees                           33,543        2.3%          36,242       3.3%
  Trust and Stock Exchange Company Fees       20,528        1.4%               0       0.0%
                                           ---------                   ---------
SUBTOTAL-G&A COSTS                         1,110,699       76.9%         908,532      83.2%

Less:  Interest and Other Expense (Income)      (201)      (0.0%)         (7,745)     (0.7%)
                                           ---------                   ---------
INCOME BEFORE TAX AND EXTRAORDINARY ITEMS   (778,629)     (53.9%)       (549,527)    (50.3%)
  Income Tax Expense (Benefit)              (166,812)     (11.5%)              0       0.0%

Extraordinary Item:  Cummulative Effect of
                     Accounting Change        59,318        4.1%               0       0.0%
                                           ---------                   ---------
NET PROFIT (LOSS) FOR CURRENT PERIOD        (552,499)     (38.2%)       (549,527)    (50.3%)
                                           ---------                   ---------
                                           ---------                   ---------

DEFICIT, beginning of period              (3,054,222)                 (4,448,938)
DEFICIT, end of period                    (3,606,721)                 (4,998,465)

Shares Outstanding                         7,065,070                   8,504,954
EARNINGS PER SHARE                            ($0.08)                     ($0.06)
</TABLE>

              Unaudited-Internally Prepared by Company Management

                                      12

<PAGE>
                                       
                        ALASKA APOLLO RESOURCES, INC.

                            CONSOLIDATED STATEMENT
                       OF CHANGE IN FINANCIAL POSITION
                            (UNITED STATES DOLLARS)
                                  UNAUDITED

                     FOR THE NINE MONTH PERIOD ENDING 

<TABLE>
                                                           UNAUDITED    UNAUDITED
                                                           30-SEP-95    30-SEP-96
                                                           ---------    ---------
<S>                                                        <C>          <C>
OPERATING ACTIVITIES
  Net Income (Loss)                                        (552,499)    (549,527)
  Amort., Deprec, Depletion and Non Cash Items              275,624      225,596
  Gain on Sale of Assets                                          0            0
  Change in Accounts Receivable                                   0     (138,943)
  Change in Inventories                                           0       38,053
  Change in Prepaid Expenses                                      0        5,762
  Change in Accounts Payable and Accrued Expenses                 0     (212,139)
  Change in Intercompany and Other Accounts Receivable            0     (211,022)
  Change Other Current Assets                              (142,668)           0
                                                           --------     --------
Net Cash From Operating Activities                         (419,543)    (842,220)


FINANCING ACTIVITIES
  Issue of Capital Stock                                    219,094      390,996
  Change in Notes Payable                                    19,131     (147,207)
  Change in  Loan Payable                                    54,459      699,383
                                                           --------     --------
Net Cash from Financing Activities                          292,684      943,172

INVESTING ACTIVITIES
 Change in  Resource Properties                             (73,386)     (39,328)
 Change in Oil and Gas Properties                           (44,502)    (212,143)
 Change in Capital Assets                                   (87,276)      73,886
 Change in Other Assets                                           0      (22,769)
 Change in Note Receivable                                        0       17,556
 Change in Retained Earnings                                      0       45,311
                                                           --------     --------
Net Cash From Investing Activities                         (205,164)    (137,487)

CHANGE IN CASH                                             (332,023)     (36,535)

CASH, BEGINNING OF PERIOD                                   369,447      138,980
                                                           --------     --------
CASH, END OF PERIOD                                          37,424      102,445
                                                           --------     --------
                                                           --------     --------
</TABLE>

              Unaudited-Internally Prepared by Company Management

                                      13