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 fiscal quarter ended June 30, 1998

    Commission File No. 0-9297


    CRONUS CORPORATION
   a NEVADA corporation
          36-388074
(I.R.S. Employer Identification Number)


7660 E. BROADWAY #210, TUCSON, ARIZONA  85710

Registrant's telephone number, including area code (520) 
885-1220


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 receding 
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.
[X] Yes [  ] No

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

Class               Outstanding as of July 1, 1998
$.001 PAR VALUE          21,864,816  SHARES
  COMMON STOCK

    DOCUMENTS INCORPORATED BY REFERENCE:

1.  Audited Financial Statements for the years ended 
December 31, 1997 and 1996, dated June 10, 1998.  1997 10-
KSB filed June 15, 1998.

     PART 1

ITEM 1.  Financial Statements

J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona  85716

Cronus Corporation
Tucson, Arizona

I have compiled the accompanying balance sheet of Cronus 
Corporation (and subsidiary PetroSun) as of June 30, 1998, 
and the related consolidated statement of income for the 
three and six months ended June 30, 1998 and 1997, in 
accordance with standards established by the American 
Institute of Certified Public Accountants.  

A compilation is limited to presenting in the form of 
financial statements information that is the representation 
of management.  I have not audited or reviewed the 
accompanying financial statements and, accordingly, do not 
express an opinion or any other form of assurance on them.

Management has elected to omit substantially all of the 
disclosures and the statement of cash flows required by 
generally accepted accounting principles.  If the omitted 
disclosures and statement of cash flows were included with 
the financial statements, they might influence the user's 
conclusions about  the Company's financial position, 
results of operations, and cash flows.  Accordingly, these 
financial statements are not designed for those who are not 
informed about such matters.

/s/
J. Dennis Bartlett, P.C.
August 21, 1998


J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona  85716


We hereby consent to the inclusion of our report dated 
August 21, 1998, in the quarter report of Cronus Corporation 
on Form 10-QSB for the period ended June 30, 1998.


/s/
J. Dennis Bartlett, P.C.
Tucson, Arizona
August 21, 1998

<TABLE>
CRONUS CORPORATION
Balance Sheet
As of June 30, 1998

<CAPTION>
                               JUNE            JUNE           DECEMBER
                               1998            1997            1997
<S>                            <C>             <C>            <C>
ASSETS
Current Assets
  Cash                         $    12,341         18,909         1,195      
  Other current assets               2,807              0         3,356
  Accounts receivable                5,111              0        10,338
  Prepaid expenses	               125,000          2,000       125,000

 Total Current Assets          $   145,259         20,909       139,889

Fixed Assets
  Computer equipment                 3,071          3,071         3,071
  Office equipment/furniture         5,342          5,342         5,342  
  Less: accumulated depreciation    (3,062)        (1,094)       (3,062)
  Proved property                  217,728         63,500       217,728
  Unproved properties              130,618         43,793       121,390
  Wells and related eqiup.           5,200              0         5,200
   Less: accumulated depreciation   (1,543)             0        (1,543)

 Total Fixed Assets                357,354        116,612       348,126

Other Assets
  Prepaid consulting                31,250              0        31,250
  Deposits                           1,802          1,802         1,802
  Receivable from related company        0              0        19,212
  Investment in mining claims	     143,530        143,530       143,530
  Other investments                      0         18,918             0
  Goodwill, net of accumulated amortization
   and valuation allowance       1,410,694              0       516,829

Total Other Assets               1,587,276        164,250       712,623

TOTAL ASSETS                     2,089,889        301,771     1,200,638

LIABILITIES & SHAREHOLDERS' EQUITY
<CAPTION>
                               JUNE            JUNE           DECEMBER
                               1998            1997            1997
<S>                            <C>             <C>            <C>
Current Liabilities
  Accounts Payable             $   186,230        162,252       171,347
  Bank overdraft                         0              0         4,518
  Drilling advance                  26,300              0        26,300
  Revenue distribution               1,093              0         4,536
  Due to related party             439,976              0       439,976
  Note payable-officers, shareholders
   And related entitles             58,630              0        80,129
  Notes payable-other net of 
   Curent portion                  277,894         77,430       146,243
  Accrued expenses	               517,042        317,290       393,622
  Payroll taxes payable              2,267          4,185         2,896
  Liability not discharged in bankrutcy  0      2,930,134             0 
 
TOTAL CURRENT LIABILITIES        1,518,242      3,491,291     1,269,567

LONG TERM LIABILITIES
  Notes payable-other               56,000         16,000        16,000
  Investment in joint venture            0              0        40,508

TOTAL LIABILITIES                1,574,242      3,507,291     1,326,075 

STOCKHOLDERS' EQUITY
  Common Stock                      21,865         15,284        15,284
  Additional paid in capital     2,595,627        823,931     1,801,826
  Recievable from sale of stock          0              0      (175,981)
  Treasury stock                      (250)        (3,364)         (250)
  Retained Earnings	            (1,766,316)    (3,857,922)   (3,585,856)
  Net income year to date         (335,279)      (183,449)    1,819,540

  TOTAL STOCKHOLDERS' EQUITY       515,647     (3,205,520)     (125,437)

TOTAL LIABILITIES & 
  SHAREHOLDERS' EQUITY          $2,089,889        301,771     1,200,771


CRONUS CORPORATION
Profit and Loss
January through March 1998
<CAPTION>
                       JAN-JUNE   JAN-JUNE    APRIL-JUNE   APRIL-JUNE
                         1998       1997       1998          1997

<S>                     <C>        <C>           <C>        <C>

INCOME
  Bayou Pierre - Gas    $12,790           0       6,169            0
  Falco - Oil             1,350           0       1,350            0

OPERATING EXPENSES
  Automobile expense        205          50          74           50
  Bank charges              510         112         352           72
  Bonus                   7,400           0           0            0
  Commissions                 0       8,000           0        8,000
  Contributions             200           0           0            0
  Dues & subscriptions    3,458           0       2,645            0
  Education                 100           0         100            0
  Equipment rental          548           0         192            0
  Fees                    2,795       2,446       1,415        1,086
  Insurance                 300         947         300          947
  Interest               29,231           0      14,554            0
  Internet access            88          60          88           60
  Licenses & permits        415           0         360            0
  Maintenance expense     1,874           0           0            0
  Marketing                   0         582           0          492
  Office                  2,717         533       1,003          325
  Operating expense      71,700       5,000      37,425        5,000
  Payroll               144,333     122,500      75,833       65,250
  Payroll taxes           4,426       3,265       2,043        1,885
  Postage & delivery      2,106         616         938          580
  Printing                    0       2,361           0           50
  Professional fees      47,544      27,056      35,576       22,740
  Proxy                      85           0           0            0
  Rent                    6,715       3,914       4,141        1,957
  Royalties               3,939           0       2,154            0
  Supplies                5,733       1,127       3,761          869
  Taxes                      50          50          50           50
  Telephone               3,473       2,734       1,858        1,616
  Travel & entertainment  8,175       1,703       3,762        1,277
  Utilities                 524         390         320          248
  Web site hosting fee      775           0           0            0

TOTAL EXPENSE           349,419     183,449     188,944      112,554

NET INCOME             (335,279)   (183,449)   (181,425)    (112,554)
</TABLE>


Please see Audited Financial Statements and Notes for the 
years ended December 31, 1997 and 1996, dated June 10, 1998, 
filed as an exhibit to the Company's 1997 10-KSB on June 15, 
1998.

ITEM 2.  Management's Discussion and Analysis or Plan of 
Operation.

Disclosure Regarding Forward-Looking Statements.
This report on Form 10-KSQ includes "forward-looking 
statements" within the meaning of Section 27A of the 
Securities Act of 1933, as amended (the  "Securities  Act"), 
and Section 21E of the Securities Exchange Act of 1934, as 
amended (the "Exchange Act").  All statements other than 
statements of historical facts included in this report, 
including, without limitation, statements under  
"Management's Discussion and Analysis or Plan of 
Operations" regarding the Company's financial position, 
reserve quantities and net present values, business 
strategy, plans and objectives of management of the 
Company for future operations and capital expenditures, are 
forward-looking statements and the assumptions upon which 
such forward-looking statements are based are believed to be 
reasonable.  The Company can give no assurance that such 
expectations and assumptions will prove to have been 
correct.  Reserve estimates of oil and gas properties are 
generally different from the quantities of oil and natural 
gas that are ultimately recovered or found.  This is 
particularly true for estimates applied to exploratory 
prospects.  Additionally, any statements contained in this 
report regarding forward-looking statements are subject to 
various known and unknown risks, uncertainties and 
contingencies, many of which are beyond the control of the 
Company.  Such things may cause actual results, performance, 
achievements or expectations to differ materially from the 
anticipated results, performance, achievements or 
expectations.  Factors that may affect such forward-looking 
statements include, but are not limited to, the Company's 
ability to generate additional capital, risks inherent in 
oil and gas acquisitions, exploration, drilling, development 
and production, price volatility of oil and gas, 
competition, shortages of equipment, services and supplies, 
government regulation, environmental matters, financial 
condition of the other companies participating in the  
exploration, development and production of oil and gas 
programs and other matters.  All written and oral forward-
looking statements attributable to the Company or persons 
acting on its behalf subsequent to the date of this report 
are expressly qualified in their entirety by this 
disclosure.

As described more fully below, management expects to receive 
income from PetroSun oil and gas leases in Louisiana during 
1998.

The Company is currently in the process of acquiring Rancho 
El Laurel, S.A., a Costa Rican company whose primary asset 
is ownership of 5,500 acres of hardwood forest in Costa 
Rica.  The Company anticipates closing this acquisition by 
the end of August, 1998.

As can be seen in the financial statements, the Company has 
incurred losses from operations and has deficits in working 
capital.  The Company earned minimal income from its first 
quarter operations do to the ongoing rehab of the Shut-in 
wells in Louisiana, however, it expects to receive 
income in the next quarter from those oil and gas leases. 
The company has five drilling projects funded for the next 
two quarters and expects to raise additional funding as 
needed.  The drilling projects are further explained below.  
There can be no assurance that a cash flow will be generated 
or that funding will be raised.  The Company currently has 
no commitments for any type of funding, and there is no 
assurance that the Company will be able to obtain any such 
financing or that such financing, if obtainable, will be on 
terms necessary to enable the Company to operate profitably.

Future Business Strategy and Operations.

The Company's ongoing business strategy is to create and 
expand its reserve base and cash flow primarily through the 
following:

1.  Raising significant capital to conduct assessments of 
the economical feasibility of extracting minerals from its 
properties, and to take advantage of leading edge  
technologies such as horizontal drilling, pulse plasma 
secondary recovery and 3-D seismic exploration projects.

2.  Position itself with strategic sources of capital and 
partners that can react to opportunities in the oil and gas, 
timber and mining businesses when they present themselves.

3.  Developing alliances with oil and gas industry partners.

4.  Participate in projects that have opportunities 
involving relatively small amounts of capital that could 
potentially generate significant rates of return.  These 
projects include areas with large field potentials in 
Northern Arizona, New Mexico, Louisiana and 
Queensland, Australia.

5.  Implementing the Company's investment strategy to 
carefully consider, analyze, and exploit the potential value 
of the Company's existing assets to increase the rate of 
return to its shareholders.

6.  Reinvesting future operating cash flows into development 
of drilling and recompletion activities.

7.  Acquiring properties that build upon and enhance the 
Company's existing asset base.

8.  Developing a long term track record regarding stock 
price performance and a reasonable rate of return to the 
shareholder.

The Company recognizes that the ability to implement its 
business strategies is largely dependent on the ability to 
increase operating cash flows by raising additional debt or 
equity capital to fund future drilling and developmental 
activities.  Management believes that it will be necessary 
to raise additional equity or debt capital to overcome 
the Company's undercapitalization.

The steps the Company intends to take to assess the 
feasibility of its current projects are described below.  
There can be no assurance that the Company will be able to 
place such oil and gas or timber assets into production or 
to conclude such feasibility assessments, or that if it is 
able to do so, that it will be able to engage in oil and 
gas, timber and/or mining operations profitably.
 
OIL AND GAS PLAN OF OPERATIONS

The Company's primary objective will be to place the oil and 
gas assets of its subsidiary into production.  PetroSun 
controls oil and gas leases on approximately 2,200 acres of 
land in Louisiana referred to as Bayou Pierre Project.  The 
leases contain 17 proven developed oil and gas wells.  These 
wells have been shut-in since the late 1980's due to the 
then low price of oil and gas and due to the property then 
being subject to litigation unrelated to the Company.  It 
will be necessary to change the pumps on the pumping wells 
and conduct related maintenance work that is normal for this 
type operation.  Currently, 13 of the wells have been 
rehabilitated and placed into production. The Company 
estimates that the cost to complete the rehabilitation of 
the wells to be $150,000.  The leases also contain an 
additional 105 proven undeveloped vertical or 30 horizontal 
locations, 4 Puluxy and 4 Glen Rose, which the Company plans 
to drill if economically feasible.

Drilling Projects

Louisiana:
PetroSun has joint ventured with Vector Horizontal Inc. and 
Tiger Exploration & Production Inc. to drill a horizontal 
Nacatoch gas well (William Prince #20) on the Bayou Pierre 
lease.  The drilling is anticipated to begin in September 
1998.  The drilling cost have been funded for this project.  
Also, PetroSun has Joint Ventured with Tedan and Tiger 
Exploration & Production Incorporated to drill a Paluxy / 
Glen Rose test well (William Prince #21) on the Bayou Pierre 
Lease. The drilling is anticipated  to begin in December 
1998.  The drilling cost have been funded for this project.

New Mexico:
On October 22, 1997, PetroSun acquired the Red Dog 
Prospect located in McKinley County, New Mexico, covering 
1,921.18 acres.  The Red Dog Prospect is situated on a 
northeast - southwest trending anticlinal fold on the Chaco 
Slope of the San Juan Basin.  Seismic data indicates a 
feature in the Entrada formation that has been interpreted 
as a reflection from an oil-water contact.  In a homogenous 
sandstone such as the Entrada a 30 foot oil column is needed 
before an oil-water contact can be detected.  Analysis of 
satellite imagery confirmed that there is micro-seepage to 
the surface.  The hydrocarbon reflectance covers 
approximately 1420 acres. The Entrada has excellent 
reservoir quality, with an average porosity of 23.6% and an 
average permeability of 315 millidarcies.  On 40 acre 
spacing, recoverable reserves are estimated to be 456,800 
barrels of oil for a well with 30 feet of pay and a water 
drive recovery of 35%.  The secondary objectives of the Red 
Dog Prospect include the Dakota at 3,300 feet and the Mancos 
at 2,900 feet.  PetroSun anticipates drilling the initial 
test well in the Entrada by the end of 1998.  PetroSun 
has joint ventured with industry partners to raise the funds 
for this prospect.

PetroSun acquired the Cholla Tank Prospect located in 
McKinley County, New Mexico on November 22, 1997.  The 
Cholla Prospect is situated on a northeast - southwest 
trending anticlinal fold on the Chaco Slope of the San Juan 
Basin.

Seismic data indicates a feature in the Entrada formation 
that has been interpreted as a reflection from an oil-water 
contact.  In a homogenous sandstone such as the Entrada a 
30 foot oil column is needed before an oil-water contact can 
be detected.  Analysis of satellite imagery confirmed that 
there is microseepage to the surface.  The Entrada has 
excellent reservoir quality, with an average porosity of 
23.6% and an average permeability of 315 millidarcies.  On 
40 acre spacing, recoverable reserves are estimated to be 
456,800 barrels of oil for a well with 30 feet of pay and a 
water drive recovery of 35%.  The secondary objectives of 
the Cholla Prospect include the Dakota at 3,300 feet and the 
Mancos at 2,900 feet.  PetroSun is currently in the process 
of surveying and permitting the initial test well and 
anticipates drilling to commence by the end of 1998 
with funding from industry partners.  The Cholla Tank 
Prospect is a direct offset to PetroSun's Red Dog Prospect.

Australia:
Triple JJJ Resources Pty., Ltd.
On February 14, 1998, the Company entered into a letter 
agreement to acquire all the outstanding shares of Triple 
"J" Resources Pty., LTD. ("JJJ").  JJJ is the holder of ATP 
594P, a 375,000 acre oil and gas concession located in 
Queensland, Australia within the oil and gas producing 
region of the Eromanga basin.  JJJ has a farmout agreement 
with Icon Oil, NL by which Icon agreed to drill the first 
test well on ATP 594P, and to thereafter provide 50% of the 
costs of any additional wells in return for half of the 
Company's interest in ATP 594P.  The Company has sold a half 
interest in JJJ to Tiger Tool, Inc. and Tiger Exploration & 
Production, Inc., effectively leaving the Company with a 25% 
interest in ATP 594P.

On April 16, 1998, Cronus announced the completion of 
drilling on the first well on ATP 594P, the Taylor Franks 
No. 1 well in the Eromanga Basin of east-central Australia.  
The well reached a total depth of 2,643 meters with gas 
shows from 2,520 to 2,643 meters.  Two drill stem tests were 
performed in the Toolachee and Patchawarra formations in the 
Permian section.  The tests indicated non-commercial gas 
flow rates of approximately 10,000 cubic feet per day with 
no water.

The results of this first well indicate good structure and 
the presence of gas in this province.  The flow results and 
penetration rate confirmed a tight reservoir and lack of 
sufficient porosity at this location, thus the well was 
plugged.  While  proving that there is gas on this 
concession, the next step is to drill a confirmation well in 
the same zone that has greater porosity and provides 
commercially viable flow rates to capitalize on this find.  
Cronus and Icon Oil NL have determining a second location 
for the next well and anticipates the well to be spudded in 
early 1999 on the concession.

Strategic Consulting and Administration, Inc.
On October 17, 1997, the Company entered into an agreement 
to acquire all the outstanding shares of Strategic 
Consulting and Administration, Inc. ("SCI").  SCI is the 
designated company to receive ATP 636P, a 640,000 acre oil 
and gas concession located in Queensland, Australia within 
the oil and gas producing region of the Eromanga basin.  SCI 
cannot receive the Authority To Prospect until the issues 
surrounding the Native Title Claims Act have been resolved 
by the parliament of Queensland, Australia.

With the establishment of commercial production on any 
prospect, further development wells may be drilled during 
the balance of 1998.

Although the Company is currently pursuing prospects within 
the project areas described above, and has budgeted to drill 
the number of wells set forth, there can be no assurance 
that these prospects will be drilled at all or within the 
expected time frame.  In particular, budgeted wells that are 
based upon statistical results of drilling activities in 
other project areas are subject to greater uncertainties 
than wells for which drillsites have been identified.  The 
final determination with respect to the drilling of any 
identified drillsites or budgeted wells will be dependent on 
a number of factors, including (i) the results of 
exploration efforts and the acquisition, review and analysis 
of the seismic data, (ii) the availability of sufficient 
capital resources by the Company and the other participants 
for the drilling of The prospects, (iii) the approval of the 
prospects by other participants after additional data has 
been compiled, (iv) the economic and industry conditions at 
the time of drilling, including prevailing and anticipated 
prices for oil and natural gas and the availability of 
drilling rigs and crews, (v) the financial resources and 
results of the Company and (vi) the availability of leases 
on reasonable terms and permitting for the prospect.  There 
can be no assurance that these projects can be successfully 
developed or that the identified drillsites or budgeted 
wells discussed will, if drilled, encounter reservoirs of 
commercially productive oil or natural gas.
 
The success of the Company will be materially dependent upon 
the success of its exploratory and developmental drilling 
program.  Exploratory drilling involves numerous risks, 
including the risk that no commercially productive oil or 
natural gas reservoirs will be encountered.  The cost of 
drilling, completing and operating wells is often uncertain, 
and drilling operations may be curtailed, delayed or 
canceled as a result of a variety of factors, including 
unexpected drilling conditions, pressure or irregularities 
in formations, equipment failures or accidents, adverse 
weather conditions, compliance with governmental 
requirements and shortages or delays in the availability of 
drilling rigs and the delivery of equipment.  Although the 
Company believes that its use of available data and other 
advanced technologies should increase the probability of 
success of its exploratory wells and should reduce average 
finding costs, exploratory drilling remains a speculative 
activity.  Even when fully utilized and properly 
interpreted, seismic data and other advanced technologies 
only assist geoscientists in identifying subsurface 
structures and do not enable the interpreter to know whether 
hydrocarbons are in fact present in such structures.  In 
addition, the use of seismic data and other advanced 
technologies requires greater predrilling expenditures than 
traditional drilling strategies and the Company could incur 
losses as a result of such expenditures.  The Company's 
future drilling activities may not be successful, and if 
unsuccessful, such failure will have a material adverse 
effect on the Company's results of operations and financial 
condition.  There can be no assurance that the Company's 
overall drilling success rate or its drilling success rate 
for activity within a particular project area will not 
decline.  The Company may choose not to acquire option and 
lease rights prior to acquiring seismic data and, in many 
cases, the Company may identify a prospect or drilling 
location before seeking option or lease rights in the 
prospect or location.  Although the Company has identified 
numerous drilling prospects, there can be no assurance that 
such prospects will ever be drilled (or drilled within the 
scheduled or budgeted time frame) or that oil or natural gas 
will be produced from any such prospects or any other 
prospects.  In addition, prospects may initially be 
identified through a number of methods, some of which do not 
include interpretation of seismic data. Wells that are 
currently included in the Company's capital budget may be 
based upon statistical results of drilling activities in 
other project areas that the Company believes are 
geologically similar, rather than on analysis of seismic or 
other data.  Actual drilling and results are likely to vary 
from such statistical results and such variance may be 
material.  Similarly, the Company's drilling schedule may 
vary from its capital budget because of future 
uncertainties, including those described elsewhere.

MINING

The Company intends to asses the feasibility of potential 
future mining projects, involving the Gila Gold Placer 
mining claims.

Gila Association Placer Mine Project. 

Gila Gold Placer Project:
The Company plans to verify and confirm the existence, 
extend and grade of placer gold located at the Gila Gold 
Placer claims.  First, it intends to asses the presence and 
tenor of placer gold as described in engineering reports of 
past exploration efforts.  Next, the Company will analyze 
the economic viability of such deposit by determining 
optimal production rate and stripping-sorting ratios, 
defining a mining and reclamation technique, generating a 
flow sheet, and isolating processing, mining, capital, 
reclamation and general overhead cost factors.


Financial Requirements and Source of Funds.
The Company is currently rehabilitating the shut-in oil and 
gas wells by setting compressors and pumps which will allow 
PetroSun, to put its revenue producing assets in Louisiana 
into production starting in October, 1997.  The Company 
believes that after an expenditure of $150,000,
PetroSun's oil and gas production in Louisiana should 
produce net revenues sufficient to cover general and 
administrative expenses of the Company of through the next 
six months.
 
Thereafter, the Company believes it will need to raise at 
least $2,000,000 in order to conduct testing and drilling of 
its oil and gas properties.  Such funds may be sought 
through the issuance of additional shares of the Company's 
Common Stock or other equity securities, through debt 
financing, or through various arrangements, including joint 
ventures and/or mergers, with third parties.  However, the 
Company currently has no commitments for any type of 
funding, and there is no assurance that the Company will be 
able to obtain any such financing or that such financing, if 
obtainable, will be on terms necessary to enable the Company 
to operate profitably.  If the Company is unsuccessful in 
completing a private type  placement, or if additional funds 
are necessary either before or after such a transaction, it 
is uncertain at this time what actions the Company will 
take.  Possibilities include other debt or equity financings 
or the sale of existing assets.

Competition - Oil and Gas
The oil and gas industry is highly competitive in all 
phases.  The Company will encounter strong competition from 
other independent oil and gas companies in acquiring 
economically desirable prospects as well as in marketing 
production therefrom and obtaining external financing.  
Substantially all of the Company's competitors have 
financial resources, personnel resources, and facilities 
substantially greater than those of the Company.

Competition - Mining
There is considerable competition for mining prospects on 
federal lands.  Costs of exploration, testing and mining, 
milling, transportation, labor and other costs have risen 
dramatically.  These costs would be a factor in determining 
whether the discovery of minerals, if any, would be 
commercial or not, and could render a discovery 
unprofitable, even if made.

In addition to the uncertainty surrounding the eventual 
development of commercial mineralization on the Company's 
properties, the success of any mining operation which 
might be conducted is dependent upon the price of minerals 
on the domestic and world markets, which is subject to 
fluctuations, in part as a result of actions by central 
banks and government policies.

PART II

ITEM 1.  Legal Proceedings.

From time to time the Company is a party to various legal 
proceedings arising in the ordinary course of business.  The 
Company is not currently a party to any litigation that 
it believes could have a material adverse effect on the 
financial position of the Company.

ITEM 2.  Changes in Securities.

     None

ITEM 3.  Defaults Upon Senior Securities.

     None

ITEM 4.  Submission of Matters to a Vote of Security 
Holders.

     None

ITEM 5.  Other Information

     None

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

During the second quarter of 1998 ending on June 30, 1998, 
no form 8-K reports were filed.

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 by the undersigned, thereunto duly 
authorized.

CRONUS CORPORATION
DATE: August 24, 1998	By:

__/s/_________________
James W. McCabe,
President and Director


15