SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                            FORM 10KSB

[ X ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
           For the fiscal year ended December 31, 2001
                                or
[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

     For the transition period from __________ to __________

                    Commission File No. 0-3802

                   Western Standard Corporation
          (Name of small business issuer in its charter)

            Wyoming                              83-0184378
(State or other jurisdiction                (I.R.S. Employer
of incorporation or organization)            Identification No.)

205 South Broadway
Riverton, Wyoming                                   82501
(Address of principal                             (Zip Code)
executive offices)

  Issuer's telephone number, including area code: (307)856-9288

Securities registered pursuant to Section 12(b) of the Exchange
Act:  None
Securities registered pursuant to Section 12(g) of the Exchange
Act:


                   Common Stock, $.05 par value
                        (Titles of Class)

Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12
months (or for such shorter period that the issuer was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


                       Yes   X    No

Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B contained herein, and no disclosure will
be contained, to the best of registrant's knowledge in definitive
proxy or information statements incorporated by reference in Part
III of this Form 10KSB or any amendment to this Form 10KSB. [X]

Issuer's revenues for the fiscal year ended December 31, 2001 were
$9,600,115.

As of March 15, 2002, there were 9,963,015 shares of the
registrant's common stock outstanding.  The aggregate market value
of the voting stock held by non-affiliates of the registrant was
$67,423 based upon the average of the bid and asked prices of the
common stock on December 31, 2001.

DOCUMENTS INCORPORATED BY REFERENCE:

The exhibit index begins on page 45.

                             PART I.

Item 1.  Description of Business.

Business Development

     Western Standard Corporation ("WSC") was incorporated under
Wyoming law on February 24, 1955.  WSC and its subsidiaries hold
interests in and to mineral, oil and gas, and the Snow King Ski
Area (the "Ski Area"), the Snow King Hotel (the "Hotel"), and the
Snow King Complex (the "Complex") in Jackson, Wyoming.  WSC's
primary business activity is its operation of the Hotel, the Ski
Area, and the Complex through its subsidiary, Snow King Resort,
Inc. ("SKRI").

       The Snow King Complex is managed by Snow King Resort
Management, Inc. ("SKRMI") pursuant to a management agreement with
SKRI providing for a management fee equal to 2% of gross revenues.
SKRMI is entirely owned and controlled by Manuel B. Lopez and
Stanford E. Clark, officers and directors of WSC.  This agreement
expires 3/31/02 and will be renegotiated.

     SKRI

     SKRI is a Wyoming corporation formed on December 28, 1990, by
WSC to serve as a vehicle to accomplish a Restructuring fully
explained in prior Forms 10-K and 10-KSB.  The officers and
directors of SKRI are as follows:

     Manuel B. Lopez, President and Director
     Stanford E. Clark, Vice President, Treasurer and Director
     Clarene Law, Vice President and Director
     Joseph Byron, Vice President and Director
     Creed Law, Secretary
     James Peck, Director
     Peter Wold, Director
     Max C. Chapman, Director

     (a) Mr. Lopez is also Vice President and a Director of Western
Standard Corporation.

     (b) Mr. Clark is also President and a Director of Western
Standard Corporation.

     (c) Mr. Peck is also a Director of Western Standard
Corporation.  Effective March 2, 1999, he was appointed Corporate
Secretary.

     The principal executive offices of SKRI are located at 400
East Snow King Avenue, Jackson Hole, Wyoming, 83001, telephone
number (307) 733-5200.

     The beginning capital structure of SKRI is as follows:

     Common Stock.  The articles of incorporation of SKRI authorize
two classes of common stock, Class A Common Stock and Class B
Common Stock.  The preferences, limitations and relative rights of
both classes of common stock are equivalent in all respects, with
the exception of voting rights with respect to the election of
directors.  The holders of Class A Common Stock are entitled to
elect three directors of SKRI while the holders of Class B Common
Stock are entitled to elect four directors.  There are currently
12,000 shares of Class B Common Stock, outstanding, all of which
are owned by WSC.  Initially, there were 2,150 shares of Class A
Common Stock outstanding, all of which is owned by the investors
who purchased shares in the Offering, and were exchanged for
convertible debentures.  All of these debentures were converted to
Class A Preferred Stock in 1994.

     Preferred Stock.  The articles of incorporation of SKRI
authorize one class of preferred stock, Class A Preferred Stock.
Each share of Class A Preferred Stock is entitled to a cumulative
dividend preference of $7.00 per share per year, has no voting
rights, and is entitled to a liquidation dividend preference of
$140.00 per share.  After payment of the above described dividend
preferences, the Class A Preferred Stock shall participate equally
in any dividends declared.

     Additional Sales of Stock.  SKRI sold, in a private offering,
800 shares of Class A Common Stock of SKRI for $140 per share
($112,000 in the aggregate), and $2,072,000 face amount of
Debentures for 100% of the face amount.  The total amount of funds
raised in the private offering, before expenses of the offering,
was $2,184,000.  Manuel B. Lopez and his wife, Deborah, purchased
10% of the securities sold in the Offering.  Margaret Peck, the
largest shareholder of WSC (26.8%), also purchased 10% of the
securities sold in the Offering.

     In April, 1992, SKRI granted an option to purchase 3,000
shares of Class B Common Stock for a period of ten years at a price
of $140 per share to Mr. Lopez and his wife.

     In March, 1993, the SKRI preferred stockholders purchased
1,350 shares of Class A Common Stock at a price of $140
per share.  In 1994, they purchased 1,550 shares of Class A stock
at $140.00 per share.

     In 1994, all outstanding convertible debentures were converted
into 14,800 shares of Class A preferred stock at $140.00 per share.
At December 31, 1994 and December 31, 2000, 3,700 shares of Class
A, 12,000 shares of Class B, and 14,800 shares of Class A preferred
nonvoting stock, were issued and outstanding.  The issuance of the
Class A preferred nonvoting stock did not reduce Western Standard's
voting power in Snow King Resort, Inc., although preferred Class A
nonvoting stock has certain preferred claims on Snow King Resort,
Inc.'s assets in case of dissolution.

     As a result of the Restructuring, SKRI now owns all of the
assets comprising the Ski Area and the Hotel.  WSC now owns
approximately 76.43% of the outstanding voting stock of SKRI.  SKRI
intends to operate the Complex in the same manner as they have been
operated over the last several years.

     Each shareholder in Snow King Center, Inc. has signed an
option to exchange all of his shares for Snow King Resort, Inc.
shares at the basis of ten Center shares for one Resort share.  If
all of these options are exercised, 98 shares of Snow King Resort,
Inc. Class A stock will be issued.  To date, no options have been
exercised.

     As part of the Restructuring, SKRI entered into a new
operating agreement with SKRMI pursuant to which SKRMI manages the
Snow King Complex.  The operating agreement provides for the
payment to SKRMI of a management fee equal to 2% of the gross
revenues of the Hotel.  Payment of principal and interest on the
Debentures is subordinated to payment of the management fee.
Payment of the management fee is subordinated to the payment of
principal and interest on the First Interstate Bank loan.  The
management agreement expires 3/31/02.  It will be renegotiated.

Competitive Conditions

     Locally, the Ski Area and the Hotel are faced with intense
competition from a newer, bigger, more prestigious and nationally
recognized ski resort, which is in close proximity to its
operations.  Such ski resort, known as Teton Village, is owned and
operated by a company with greater financial resources than WSC and
SKRI.  Nationally, the ski resort industry is extremely competitive
and many of WSC's and SKRI's competitors have more experience and
greater financial resources than does WSC and SKRI.

     Oil and gas exploration and production is a highly competitive
business.  If WSC were to engage in active oil and gas operations,
it would compete with a number of other companies, including major
oil companies and other independent operators, virtually all having
more experience and greater financial resources.  WSC does not hold
a significant competitive position in the oil and gas industry.
WSC's oil and gas interests are operated by others.

Oil and Gas Customers

     WSC believes there is a ready market for its share of oil and
gas produced by operators of properties in which it has an
interest.  However, WSC has no control over worldwide factors
affecting supply and demand for oil and gas which influence oil and
gas prices.  Eighty-Eight Oil Company purchased approximately all
of WSC's share of oil production during 2000.  Kinder/Morgan
purchased the gas.

Patents, Licenses, Franchises and Concessions

     SKRI owns a Resort liquor license which is subject to renewal
each year.  It has been renewed through 2002.


     The Ski Area is operated primarily on land owned by the United
States which SKRI is permitted to use pursuant to a special use
permit expiring October 31, 2011.  The permit is non-transferrable
and is terminable upon 30 days written notice to SKRI if a
determination is made by the Secretary of Agriculture or any
official of the Forest Service that the public interest requires
such termination.  SKRI is required to pay an annual fee for the
permits which is based upon revenues generated by the Ski Area.

Environmental Impact

     WSC's holding and/or development of its oil and gas and SKRI's
recreational properties requires compliance with various
requirements concerning environmental quality; and such compliance
may necessitate significant capital outlays, may materially affect
potential future earnings of WSC, or may cause material changes in
WSC's business.  WSC believes that it is in substantial compliance
with all applicable environmental laws, rules, and regulations.

Number of Persons Employed

     During 2001, WSC, including its subsidiaries, because of the
seasonality of its business, had between 179 and 271 employees,
including its officers.

Seasonality

     The activities of the Hotel and the Ski Area are seasonal in
nature and are highly dependent on the number of tourists visiting
the area and the number of conventions and tour groups booked.
Tourism reaches peaks from May through September and, for skiing,
from December through March.

Financial Information About Industry Segments

     WSC includes in its financial reporting two segments, an oil
and gas segment and a Snow King Hotel segment.  The financial
information relating to segments may be found in the Consolidated
Financial Statements included in this Annual Report on 10KSB as
Item 7.

Item 2.  Description of Property.

                    RECREATION AREA PROPERTIES

Teton County, Wyoming

     The assets and the properties herein referred to as the Hotel
and the Ski Area consist of the following:

     (1)  8.29 acres on which the 204 room hotel with a convention
          center and related facilities are located.

     (2)  43.5 acres and Town of Jackson leases on 27.2 contiguous
          acres.  A lease on the ski shelter and part of the 27.2
          acres expires May 31, 2023.  The lease on the balance
          (the larger portion, including the Ice Rink) of the 27.2
          acres expires May 31, 2033.  During 1992, the Town
          and SKRI agreed to demolish the ski shelter and replace
          it with a larger structure having both a ski shelter and
          a skating rink.  These structures have been completed
          and are in use.  The skating rink is leased by a new
          entity; see Item 12.  "Certain Relationships and Related
          Transactions."

     (3)  A 30-year Forest Service Term Special Use Permit on
          369.51 acres on the adjoining Snow King Mountain, which
          expires October 31, 2011.  This lease has been extended
          to December 31, 2039.

     (4)  A warming hut at the base of Snow King Mountain.

     (5)  A double chair ski lift on Snow King Mountain constructed
          and put into use in 1981.

     (6)  A double chair lift reaching from the base of Snow King
           Mountain to approximately 1/2 the distance to the top of
          the mountain.  This lift was acquired July 14, 1986 and
          is known as the Rafferty Lift.

     (7)  In 1994, a triple chair lift was installed that extends
           approximately half way to the top of Snow King mountain.
           This opens up additional intermediate skiing areas.  The
          cost of the new chair lift, additional lights for night
          skiing, water lines, pump, and additional snow making
          equipment installed, totaled $1,683,997.

     (8)  Mountain grooming and communications equipment.

     (9)  A warming hut and snack shop at the summit of Snow King
          Mountain.

     (10) The Alphorn Motel in Jackson, Wyoming, consisting of 17
           units, a large lodge room, and a small cabin, located on
          six lots of land at the base of Snow King Mountain
          adjacent to the ski lift.  It is closed at present.
          However, 3 lots with buildings were sold on March 20,
          2002 for $1,080,000.00.  The sale of the other 3 lots is
          presently being negotiated.  The net proceeds will be
          used for debt reduction.

     (11) Alpine Slide.

     All of the above properties are subject to the lien of First
Interstate Bank as security for their loan.

     During 1992, SKRI transferred 1.3 acres of land to the town of
Jackson for a location on which to construct an indoor skating
rink.

Fremont County, Wyoming

     WSC, through its subsidiary, Western Recreation Corporation,
sold 40 acres of the Ocean Lake property during 1997 for $65,000.
The remaining 80 acres was sold for $57,500 in August, 1998.


                MINERAL AND OIL AND GAS PROPERTIES


     The following is a brief description of the mineral and oil
and gas properties in which WSC held an interest as of December 31,
2000

Mining Claims
                                 Number      Approximate  Wyoming
Name                  Mineral   of claims       Acreage    County
Such Claim No. 7      Uranium        1             20      Carbon

WSC owns a 5% net profit interest in Patented Such Claim No. 7.


Non-Producing Oil and Gas Interests

Leases
on Which             Approxi-
Royalties are         mate        WSC's      County   Date Leases
Held                 Acreage     Interest   and State    Expire

 Treasure Unit         320         2.0%*    Sweetwater   Held by
 Lease w-28853                               Wyoming   production
                                                         in Unit

 Daly Lease,           400         12.5%**   Campbell    Held by
 Kitty Field                                  Wyoming  production
                                                         in Unit
*     Overriding royalty interest.
**    Working interest.

Producing Oil and Gas Properties

     WSC is not the operator of any of the oil and gas properties
described below from which it received income during 2001.  WSC
does not know of any planned exploration in 2002 on any of the oil
and gas properties operated by others in which it has interest.
WSC does not plan active exploration of any of its oil and gas
properties during 2002.

     To the best of WSC's knowledge, the underlying leases are in
good standing.  Reference is made to pages F-23 and F-24, Note 10
included with the Consolidated Financial Statements for detailed
information concerning WSC's oil and gas operations for its four
fiscal years ended December 31, 2001.

     As a result of WSC's difficult financial position stemming
from its working capital deficit, operating losses and lack of
liquidity, and the fact that WSC holds small non-operating
interests in its oil and gas properties, it has not engaged an
independent petroleum engineering firm to render a report on its
oil and gas reserves.  Further, WSC has no staff or expertise
enabling it to internally estimate its oil and gas reserves.  The
financial statement carrying value of the properties is nominal and
it has recovered its entire investment.  WSC has not engaged in
active oil and gas operations during the past three years and does
not expect to do so during 2002.  The Consolidated Financial
Statements do, however, contain a considerable amount of
information concerning WSC's oil and gas segment and the results of
its operations during the past three years.  The following further
describes WSC's oil and gas properties:

Central Hilight Unit

     WSC owns a 1.0827% royalty interest in Tract #47 of the
Central Hilight Unit located in Campbell County, Wyoming, which
currently produces from the Muddy Formation.  Tract #47 has been
assigned a 6.268% interest in the Central Hilight Unit, which
converts to a 0.0006787 interest to WSC.  The Unit was formed by
the Wyoming Oil and Gas Commission, effective November 1, 1971, and
placed under a water flood program.

Grady Unit

     Effective September 1, 1971, the date these properties were
unitized, WSC purchased a 5.027% working interest (2.721% net
revenue interest) in the Grady Unit, which consists of
approximately 9,440 gross (472 net) acres located in T45N and T46N,
R71W, Campbell County, Wyoming.  In 1993, WSC's working interest
was reduced to 0.029644.  This provides additional revenue to WSC.

     In April, 1998, Western Standard Corporation sold for
$12,837.75, the Grady Unit Shallow Rights to coal methane, which
covers certain property in the Grady Unit to a depth of 2,500 feet
or stratigraphic equivalent of the base of the Tertiary Age Coal
Formation within the lands.

Kitty Field/Daly Lease

     In July 1999, Western Standard sold its interest in 50 net
acres from the surface to a 2,500 foot depth for 2 years, unless
production results, for $10,000 to Kennedy Oil.  Kennedy Oil plans
to drill for methane gas.

Payne Field

     WSC has a 1% OR in the Payne Field which consists of 320 gross
acres, 35.2 net acres, in Campbell County, Wyoming.

Exploratory and Development Wells Drilled

     WSC did not participate in the drilling of any wells during
the last three fiscal years.

Production, Productive Wells and Reserves

     Two of WSC's significant oil and gas properties are subject to
complex unitization agreements involving a large number of wells
with varying ownership interest making any attempt to estimate its
reserves difficult, relatively expensive, and subject to error.
Moreover, WSC is not certain that operators would open their
technical files to any engineer employed by WSC.

Miscellaneous

     WSC is not obligated to provide quantities of oil or gas in
the future under existing contracts or agreements.

     WSC has not filed any reports containing oil or gas reserve
estimates with any federal or foreign governmental authority or
agency within the past 12 months.

Item 3.  Legal Proceedings.

     Previous law suits have been settled by our insurance carrier.
Neither WSC nor SKRI is a party to any lawsuit or legal proceeding
on December 31, 2001 or March 20, 2002, and none are contemplated
or threatened against them.

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

     No matter was submitted to a vote of security holders during
the fourth quarter of the year ended December 31, 2001.

                             PART II.

Item 5.  Market for Registrant's Common Equity and Related
Stockholder Matters.

     WSC's common stock, $0.05 par value, is sporadically traded
over the counter.  Trading in WSC's common stock is reported by the
National Daily Quotation Service ("pink sheets") and the National
Association of Securities Dealers, Inc. Non-NASDAQ OTC Bulletin
Board.  Quotations shown below reflect inter-dealer prices, without
retail mark-up, mark-down or commission and may not necessarily
represent actual transactions.

                                                              Bid Prices
                                                          Low          High
     2001
     First Quarter                                        .02           .04
     Second Quarter                                       .03           .05
     Third Quarter                                        .05           .05
     Fourth Quarter                                      .045           .05

     2000
     First Quarter                                        .01           .01
     Second Quarter                                      .015          .015
     Third Quarter                                       .015          .015
     Fourth Quarter                                      .011           .02


     As of December 31, 2001, there were approximately 3,449
holders of record of WSC's common stock.

     WSC has not paid any dividends on its common stock and does
not expect to do so in the foreseeable future.




Item 6.  Management's Discussion and Analysis or Plan of Operation.

     Management recommends that the discussion below be read in
conjunction with the Financial Statements and Notes thereto
included in this Annual Report on Form 10KSB as Item 7.

Liquidity and Capital Resources

     As explained in Item 1 of this Annual Report on Form 10KSB,
Western Standard Corporation completed a restructuring of
its interests in the entire Snow King Complex in Jackson Hole,
Wyoming, in March, 1992.  This has placed all of the assets of Snow
King, Incorporated and Snow King Partnership in a new company, Snow
King Resort, Inc.

     It is believed that oil and gas revenues, rent, a small amount
of interest and cash reserves, will make it possible for Western
Standard Corporation to meet its expenses in 2002.

     In March 1999, Snow King Resort, Inc. refinanced with First
Interstate Bank of Casper, Wyoming in the amount of $9,370,000 at
beginning interest rate of 7.98%.  These funds were used to pay
ORIX USA and Jackson State Bank in full, other debt and to renovate
the Hotel.  Certain documents relating to this transaction were
attached as exhibits #94.4.17 and #94.4.18 to the 1999 Form 10-KSB.

     At December 31, 2000, Snow King Resort, Inc. failed to comply
with one of the First Interstate Bank note covenants concerning
cash flow.  The bank agreed to waive enforcement of the covenant at
December 31, 2000.  As a condition of the waiver, the bank required
that certain net income levels be met by June 30, 2001, September
30, 2001, and December 31, 2001.  Additional fees of $16,800 were
paid in 2001 because the required income levels were not met.

     At December 31, 2001, Snow King Resort, Inc. failed to comply
with one of the First Interstate Bank note covenants concerning
cash flow.  The bank has consented to waive technical default for
2001.  The interest rate will be adjusted to a floating rate at
March 15, 2002 of the prime rate plus 1.125%.  Snow King Resort,
Inc. will pay a fee to the bank of less than $5,600 for its
noncompliance with the covenant.

     Revenues from the operations of Snow King Resort, Inc., a
$630,000 line of credit from the First Interstate Bank of Casper,
Wyoming who refinanced the Hotel, and limited additional borrowings
are expected to be sufficient to allow Snow King Resort, Inc. to
meet its principal, interest and other operating expenses during
2002.

Results of Operations

     2001 vs. 2000

     Overall - 2001 ended with a net loss of $536,320 compared to
a net loss of $237,353 in 2000.

     Other revenue decreased from $17,779 in 2000 to $14,428 in
2001.

     Oil and Gas Segment

     Operating income of the Oil and Gas Segment decreased from
$42,864 in 2000 to $40,498 in 2001.  Also refer to item 1. above.

     Snow King Resort Segment

     Net loss of the Snow King Resort increased from a loss of
$223,621 in 2000 to a loss of $506,979 in 2001.

     Revenues decreased from $9,964,724 in 2000 to $9,556,337 in
2001.

     2709 fewer hotel rooms were rented in 2001 than in 2000.  The
average room rate in 2000 was $101.90.  In 2001 it was $102.71.
Snow King Resort is very dependent on the airlines to bring
customers.  The September 11 tragedy hurt immensely.
     Room revenue decreased in 2001 in the amount of              $175,601
     Food and beverage decreased                                    94,335
     Ski area decreased                                             22,669
     Condominium rentals increased                               ( 163,465)
     Other departments decreased                                   171,179
     Telephone decreased                                            24,145
     Alpine slide decreased                                         83,923
        Revenue decrease 2001 over 2000                           $408,387

     Operating expenses decreased from $9,513,629 in 2000 to
$9,388,338 in 2001.  Expenses (increased) decreased in 2001 over
2000:
     Wages                                                  `     $551,819
     Utilities                                                      27,113
     Taxes & benefits                                               27,412
     Supplies                                                     ( 70,577)
     Repairs                                                     ( 241,283)
     Advertising                                                  ( 77,367)
     Office                                                         18,472
     Interest                                                     ( 18,309)
     Insurance                                                    ( 80,880)
     Leases                                                         33,458
     Forest Service fees                                          (  2,797)
     Legal and consulting                                              670
     Management and guarantor fees                                   9,281
     Condominium expenses                                         ( 53,455)
     Depreciation                                                   26,010
     Provision for uncollectible accounts                         ( 24,863)
     Retirement plan contributions                                     587
        Decrease in expenses                                      $125,291

     The provision for doubtful accounts pertains to the probable
uncollectible account receivable from the Snow King Center in the
amount of $95,000 plus $7,500 from ordinary accounts receivables.

Impact of Inflation

     For the two most recent fiscal years inflation and changing
prices have not had a detrimental impact on revenues or net income.
WSC has generally been able to raise its prices to counteract cost
increases without adversely affecting demand for its products and
services.

Item 7.  Financial Statements.

Independent Auditor's Report                         F-1 to F-2
Financial Statements:
     Consolidated Balance Sheets                            F-3
     Consolidated Statements of Shareholders' Equity        F-4
     Consolidated Statements of Operations                  F-5
     Consolidated Statements of Cash Flow            F-6 to F-7

Supplemental Schedules:
     Schedule of Property, Equipment and Intangible
       Assets (2001) - Schedule A                           F-8
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (2001) - Schedule A-1               F-9
     Schedule of Property, Equipment and Intangible
       Assets (2000) - Schedule B                           F-10
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (2000) - Schedule B-1               F-11
     Schedule of Property, Equipment and Intangible
       Assets (1999) - Schedule C                           F-12
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (1999) - Schedule C-1               F-13

Notes to Consolidated Financial Statements          F-14 to F-27


































                  CLIFFORD H. MOORE AND COMPANY
                   Certified Public Accountants
                        205 South Broadway
                       Riverton, WY  82501



                   INDEPENDENT AUDITOR'S REPORT



To the Board of Directors
and Stockholders of
Western Standard Corporation


     We have audited the accompanying consolidated balance sheets
of Western Standard Corporation and Subsidiaries as of December 31,
2001 and 2000, and the related consolidated statements of
shareholders' equity, operations, and cash flows, for the years
ended December 31, 2001, 2000 and 1999.  These financial statements
are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial
statements based on our audits.

     We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

     The Company has not presented oil and gas reserve quantities
and changes in those reserve quantities that the Financial
Accounting Standards Board (FASB) has determined in FASB Statement
Number 19 (Financial Accounting and Reporting by Oil and Gas
Producing Companies) is necessary to supplement, although not
required to be part of, the basic financial statements.  The
Company has also not presented certain information required by
Regulation S-X (210. 4-10) of the Securities and Exchange
Commission regarding certain disclosures for oil and gas producing
activities.

     In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of
Western Standard Corporation and Subsidiaries as of December 31,
2001 and 2000, and the results of their operations and cash flows
for the years ended December 31, 2001, 2000 and 1999, in conformity
with generally accepted accounting principles.



                               F-1

Western Standard Corporation
Page 2

     Our examinations were made for the purpose of expressing an
opinion on the basic financial statements taken as a whole.  The
supplemental schedules listed in the index of financial statements
are presented for purposes of complying with the Securities and
Exchange Commission's rules and regulations under the Securities
Exchange Act of 1934 and are not otherwise a required part of the
basic financial statements.  The supplemental schedules have been
subjected to the auditing procedures applied in the examinations of
the basic financial statements and, in our opinion, fairly state in
all material respects the financial data required to be set forth
therein in relation to the basic financial statements taken as a
whole.






                                   /s/ Clifford H. Moore & Co.
                                   March 6, 2002
                                   Riverton, Wyoming
































                               F-2

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                    DECEMBER 31, 2001 AND 2000
                              ASSETS
                                          2001          2000
CURRENT ASSETS:
  Cash                                $   262,655   $    380,056
  Accounts receivable (net of allowance
   for doubtful accounts of $18,535 in
   2001; $12,612 in 2000)                 272,323                  247,608
  Inventories                              51,708         52,372
  Prepaid expenses                        179,084        156,493
  Other prepaid expenses                   70,428         46,705
      Total current assets            $   836,198   $    883,234
PROPERTY AND EQUIPMENT:
  At cost net of accumulated
    depreciation of $5,792,445 and
    $5,366,436 in 2001 and 2000,
    respectively (Schedules A and B)  $ 9,254,166   $  9,487,802
OTHER ASSETS:
  Restricted cash                     $    20,446   $      5,803
  Account receivable - Snow King
    Resort Center, Inc. (Note 8 & 13)   1,566,232      1,512,692
  Allowance for doubtful receivable
    (Note 13)                        (  1,425,000) (   1,330,000)
  Leasehold interest, net of
    amortization (Note 9)                  58,393         79,585
  Other receivables - officer (Note 8)     10,000         10,000
  Other (Note 3)                           48,458         99,672
  Patronage capital, net of
    discount (Note 16)                    235,114        234,492
      Total other assets              $   513,643   $    612,244
TOTAL ASSETS                          $10,604,007   $ 10,983,280
          LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
  Accounts payable                    $   565,784   $    486,031
  Accrued expenses (Note 4)               508,538        447,225
  Advance deposits                        371,238        490,275
  Current maturity of debt (Note 5)       762,978        384,602
      Total current liabilities       $ 2,208,538   $  1,808,133
LONG-TERM LIABILITIES:
  Long-term debt (Note 5)             $ 8,639,127   $  8,882,385
  Fee payable - officer (Note 8)           90,000         90,000
      Total long-term liabilities     $ 8,729,127   $  8,972,385
MINORITY INTEREST IN SUBSIDIARY       $ 1,899,432   $  2,018,927
SHAREHOLDERS' EQUITY (DEFICIT):
  Common stock, $.05 par value,
    10,000,000 shares authorized,
    9,963,015 shares issued and
    outstanding at 12/31/01           $   401,201   $    401,201
  Capital in excess of par value        3,334,701      3,334,801
  Accumulated deficit                (  5,968,992) (   5,552,167)
      Total shareholders' (deficit)  ($ 2,233,090) ($  1,816,165)
TOTAL LIABILITIES AND
  SHAREHOLDERS EQUITY (DEFICIT)       $10,604,007   $ 10,983,280
          The accompanying notes to financial statements
            are an integral part of these statements.
                               F-3
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)

       FOR THE YEARS ENDED DECEMBER 31, 2001, 1200 AND 1999


                                                         Total
                     Capital   Capital                  share-
            Shares    stock   in excess  Accumulated    holders'
       outstanding  common   of par value   deficit      equity

BALANCE,
12/31/98 9,965,015 $ 401,201 $ 3,334,801 ($ 4,822,479)($ 1,086,477)
1999 net
loss           -0-       -0-         -0- (    545,043)(    545,043)
BALANCE,
12/31/99 9,965,015 $ 401,201 $ 3,334,801 ($ 5,367,522)($ 1,631,520)
2000 net
loss           -0-       -0-         -0- (    184,645)(    184,645)
BALANCE,
12/31/00 9,965,015 $ 401,201 $ 3,334,801 ($ 5,552,167)($ 1,816,165)
2001 net
loss           -0-      -0-        -0- (    416,825)(    416,825)
Purchase
treasury
stock   (   2,000)      -0- (      100)         -0- (        100)

BALANCE,
12/31/01 9,963,015 $ 401,201 $ 3,334,701 ($5,968,992)($ 2,233,090)
























          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-4

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS
       FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999

                              2001          2000        1999
REVENUES:
  Snow King Resort        $ 9,550,987   $ 9,956,641  $ 8,608,633
  Oil and gas interests
    (Note 11)                  40,498        42,864       23,055
  Rentals                         -0-           -0-          505
  Interest                     14,428        17,779       17,776
  Other                           922           -0-        1,026
  Gain on assets sold    (      6,720)          -0-       10,000
  Patronage capital               -0-           -0-      216,842
      Total revenues      $ 9,600,115   $10,017,284  $ 8,877,837

EXPENSES:
  Snow King Resort
    operating             $ 8,650,343   $ 8,785,520  $ 7,664,968
  Oil and gas interests        17,287        18,288       11,660
  Amortization                 28,332        28,332       69,063
  Depreciation                530,622       555,818      566,509
  Provision for doubtful
    accounts                    7,500         7,637          -0-
  Other                           -0-           -0-       49,374
  Loan prepayment penalties       -0-           -0-      252,788
  Interest                    807,351       789,042      711,339
  Provision for Snow King
    Resort Center receivable
    collectibility             95,000        70,000      260,000
      Total expenses      $10,136,435   $10,254,637  $ 9,585,701

Net income (loss) before
  provision for income
  tax                    ($   536,320) ($   237,353)($   707,864)
Provision for income tax
  (Note 7)                         -0-          -0-          -0-
                         ($   536,320) ($   237,353)($   707,864)

Benefit of loss
  carryovers (Note 7)              -0-          -0-          -0-
NET INCOME (LOSS)        ($   536,320) ($   237,353)($   707,864)
Minority interest in
  loss of subsidiary          119,495        52,708      162,821
NET INCOME (LOSS)        ($   416,825) ($   184,645)($   545,043)
INCOME (LOSS) PER COMMON
  SHARE (Computed on the
  weighted average number of
  shares outstanding for
  the year)              ($     .0418) ($     .0185)($     .0547)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING       9,964,861     9,965,015    9,965,015



          The accompanying notes to financial statements
            are an integral part of these statements.
                               F-5
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS
       FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999

                               2001         2000         1999
INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
  Cash received from
    customers              $9,478,697   $10,032,516   $8,631,202
  Cash paid to suppliers
    and employees         ( 8,572,994) (  8,871,030)(  7,590,727)
  Interest received            14,428        17,779       17,776
  Interest and prepayment
    penalties             (   807,351) (    789,042)(    964,127)
                                                 Net cash provided by
       operations          $  112,780   $   390,223  $    94,124
Cash flows from investing
activities:
  (Payments to) decrease
    in restricted cash    ($   14,643)  $    11,745 ($     4,533)
  Purchase treasury stock (       100)          -0-          -0-
  Sales and retirement
    of assets                     -0-           -0-        4,529
  Investment in related
    corporation           (        30) (        100)(        100)
  Capital expenditures    (   296,986) (    669,509)(  2,050,297)
 (Investment) Snow King
   Center                 (    53,540) (     66,541)(    190,174)
 Prepayment of Town of
   Jackson lease                  -0-           -0- (     82,400)
   Net cash provided
    (used) by investing
    activities            ($  365,299) ($   724,405)($ 2,322,975)
Cash flows from financing
activities:
  Borrowing from banks
    and leasing companies  $1,161,599   $ 1,235,553  $ 9,478,406
  Principal payments to
    banks and leasing
    companies             ( 1,026,481) (    797,628) ( 7,143,658)
  Payment of loan fees            -0-           -0-  (    50,000)
  Net cash provided
    (used) by financing
    activities             $  135,118   $   437,925  $ 2,284,748
Net increase (decrease)
  in cash                 ($  117,401)  $   103,743  $    55,897
Cash at beginning of year     380,056       276,313      220,416
Cash at end of year        $  262,655   $   380,056  $   276,313

     Cash consists of cash on hand and cash in unrestricted bank
accounts and short term cash investments.

 (These statements of cash flows are continued on the next page.)

          The accompanying notes to financial statements
            are an integral part of these statements.
                               F-6
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Continued)
       FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999


                               2001         2000         1999

RECONCILIATION OF NET INCOME
TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Net income (loss)         ($    416,825)($  184,645)  ($ 545,043)
Adjustments to reconcile
  net income to net cash
  provided (used) by
  operating activities:
                                              Depreciation and
    amortization                558,954     584,150      635,572
                                              Increase (decrease) in
    advance deposits      (     119,037) (   19,696)     113,669
  (Increase) decrease in
    accounts receivable   (      25,515)     44,330   (   85,849)
  (Increase) decrease in
    prepaid expenses      (      46,314)      2,233   (   24,303)
  Decrease (increase) in
    inventories                     664      14,369   (   19,683)
  (Decrease) increase in
    accounts payable and
    accrued expenses            141,066   (   50,738)    161,903
  Loss on investment              6,720          -0-         -0-
  Change in other
    receivables                  37,384   (   12,880) (    9,923)
  Provision for Snow King
   Resort Center
   receivable                    95,000       70,000     260,000
  Accrued interest -
    officer note                    800          800         100
  Increase in patronage
    capital               (         622)  (    4,992)  ( 229,500)
  Allocation of minority
    interest in subsidiary
    loss                  (     119,495)(     52,708) (  162,819)
      Net cash provided
        by operations      $    112,780  $   390,223  $   94,124









          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-7
                            Schedule A

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 2001


                 Balance at                           Balance at
                 beginning    Additions                  end
Classification   of period     at cost   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Land          $  2,147,125  $ 28,335    $    -0-   $ 2,175,460
  Mineral claims
    and leases           500       -0-         -0-           500
  Producing oil
    and gas
    interests        265,719       -0-         -0-       265,719
  Machinery and
    equipment        117,678    24,429         -0-       142,107
  Hotel building
    & improvements 7,656,606    76,433         -0-     7,733,039
  Hotel furniture
    & fixtures     4,666,610   167,789     104,613     4,729,786

                $ 14,854,238  $296,986    $104,613   $15,046,611


Property and equipment                               $15,046,611

Accumulated depreciation (Schedule A-1)              (  5,792,445)

                                             Property and equipment net of
    accumulated depreciation                         $ 9,254,166

Amortizable Assets:

  Costs of acquiring ski shelter
    lease       $    124,938  $    -0-    $    -0-   $   124,938
  Accumulated
    amortization                                    (     66,545)
      Net                                            $    58,393
  Prepaid loan
    fees        $     50,000  $    -0-    $    -0-   $    50,000
  Accumulated
    amortization                                    (     20,250)

      Net                                            $    29,750



          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-8
                          Schedule A-1

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

       ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION

           OF PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 2001


                           Depreciation
                                and
                           amortization
                Balance at  charged to              Balance at
                 beginning   costs and                  end
Description     of period    expenses   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Producing oil
   and gas
   interests   $   246,181  $    -0-      $    -0-   $   246,181
  Machinery and
    equipment      106,742       814           -0-       107,556
  Hotel building
    and
    improvements 2,022,198   290,610           -0-     2,312,808
  Hotel furniture
    & fixtures   2,991,315   239,198       104,613     3,125,900

               $ 5,366,436  $530,622      $104,613   $ 5,792,445

AMORTIZATION:
  Leasehold
    interest   $    45,353  $ 21,192      $   -0-    $    66,545

  Loan fees    $    13,110  $  7,140      $   -0-    $    20,250
















          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-9
                           Schedule B
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 2000


                 Balance at                           Balance at
                 beginning    Additions                  end
Classification   of period     at cost   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Land          $  2,028,855  $ 118,270    $    -0-  $ 2,147,125
  Mineral claims
    and leases           500        -0-         -0-          500
  Producing oil
    and gas
    interests        265,719        -0-         -0-      265,719
  Machinery and
    equipment        117,678        -0-         -0-      117,678
  Hotel building
    & improvements 7,501,700    154,906         -0-    7,656,606
  Hotel furniture
    & fixtures     4,293,122    396,333      22,845    4,666,610

                $ 14,207,574  $ 669,509    $ 22,845  $14,854,238

Property and equipment                               $14,854,238
Accumulated depreciation (Schedule A-1)             (  5,366,436)

                                             Property and equipment net of
    accumulated depreciation                         $ 9,487,802

Amortizable Assets:

  Costs of acquiring ski shelter
    lease       $    124,938  $    -0-     $   -0-   $   124,938
  Accumulated
    amortization                                    (     45,353)
      Net                                            $    79,585
  Prepaid loan
    fees        $     50,000  $    -0-     $   -0-   $    50,000
  Accumulated
    amortization                                    (     13,110)

      Net                                            $    36,890






          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-10
                          Schedule B-1

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

       ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION

           OF PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 2000

                           Depreciation
                                and
                           amortization
                Balance at  charged to              Balance at
                 beginning   costs and                  end
Description     of period    expenses   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Producing oil
   and gas
   interests   $   246,181  $     -0-     $    -0-  $    246,181
  Machinery and
    equipment      106,742        -0-          -0-       106,742
  Hotel building
    and
    improvements 1,732,753    289,445          -0-     2,022,198
  Hotel furniture
    & fixtures   2,747,787    266,373       22,845     2,991,315

               $ 4,833,463  $ 555,818     $ 22,845   $ 5,366,436

AMORTIZATION:
  Leasehold
    interest   $    24,161  $  21,192     $    -0-   $    45,353

  Loan fees    $     5,970  $   7,140     $    -0-   $    13,110


















          The accompanying notes to financial statements
            are an integral part of these statements.
                               F-11
                           Schedule C
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 1999


                 Balance at                           Balance at
                  beginning   Additions                  end
Classification   of period     at cost   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Land          $  1,553,761 $   475,094   $     -0- $ 2,028,855
  Mineral claims
    and leases           500         -0-         -0-         500
  Producing oil
    and gas
    interests        265,719         -0-         -0-     265,719
  Machinery and
    equipment        117,678         -0-         -0-     117,678
  Hotel building
    and
    improvements   7,083,977     417,723         -0-   7,501,700
  Hotel furniture
    & fixtures     3,457,898   1,157,480     322,256   4,293,122

                $ 12,479,533 $ 2,050,297   $ 322,256 $14,207,574

Property and equipment                               $14,207,574
Accumulated depreciation (Schedule B-1)             (   4,833,463)

                                             Property and equipment net of
    accumulated depreciation                         $ 9,374,111

Amortizable Assets:

  Costs of
    acquiring
    ski shelter
    lease       $     42,538 $    82,400   $     -0- $   124,938
  Accumulated
    amortization                                    (     24,161)

       Net                                           $   100,777

  Prepaid loan
    fees        $     91,360 $    50,000  ($  91,360)$    50,000
  Accumulated
    amortization                                    (      5,970)

       Net                                           $    44,030

          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-12
                           Schedule C-1

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

       ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION

           OF PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS

               FOR THE YEAR ENDED DECEMBER 31, 1999



                           Depreciation
                               and
                           amortization
                Balance at  charged to              Balance at
                 beginning  costs and                   end
Description     of period    expenses   Retirements  of period

PROPERTY AND
EQUIPMENT:
  Producing oil
    and gas
    interests  $   246,181   $     -0-    $     -0- $    246,181
  Machinery and
    equipment      106,742         -0-          -0-      106,742
  Hotel building
    and
    improvements 1,465,528     267,225          -0-    1,732,753
  Hotel furniture
    & fixtures   2,766,230     299,284      317,727    2,747,787

               $ 4,584,681   $ 566,509    $ 317,727 $  4,833,463

AMORTIZATION:
  Leasehold
    interest   $     7,913   $  16,248    $     -0- $     24,161

  Loan fees    $    44,515   $  52,815    $  91,360 $      5,970















          The accompanying notes to financial statements
            are an integral part of these statements.

                               F-13
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 1:  HISTORY OF THE COMPANY:

     The Company was incorporated under the laws of the State of
Wyoming in 1955.  It acquired oil, gas and mineral properties which
were assigned to other operators with the Company retaining a
royalty position in the properties assigned.

     In 1971 and 1972, the Company acquired real estate, including
the Snow King ski area in Jackson, Wyoming, land and improvements
adjacent to Ocean Lake, Fremont County, Wyoming, and producing oil
and natural gas interests.  Construction of a hotel-convention
center began in Jackson during 1973.  The complex was operational
in early 1976 and was completed in 1977.

     In 1981, 50% of the Snow King area and the convention center
was sold to Pick-Jackson Corp. and the remaining 50% was
transferred to two partnerships.

     On March 13, 1992, the Snow King Resort was reacquired by a
subsidiary of Western Standard Corporation.  The Ocean Lake
property was sold in 1994.

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Fixed Assets:

     The company capitalizes those additions and betterments which
increase the useful lives of its assets, and it expenses repair and
maintenance items.  Fixed assets are carried at cost of
acquisition.  The cost of self-constructed assets includes
capitalized labor costs.

     When items are disposed of, their cost is removed from the
accounts along with the accumulated depreciation and the resulting
gain or loss is reflected in the income statement.

Oil and Gas Revenue:

     Oil and gas revenue and expenditures are accounted for using
the successful efforts method.  This method of accounting for oil
and gas properties capitalizes only those costs directly associated
with proven reserves.

Depreciation, Depletion and Amortization:

     Depreciation, depletion and amortization on oil and gas
properties are computed using the straight-line method.  Other
depreciable assets are depreciated by the straight-line method over
the estimated useful lives of the assets as follows:  equipment, 3
to 10 years; buildings and improvements, 10 to 30 years; the hotel
building, 37.5 years; and the chair lift, 40 years.
                               F-14

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:  Continued:

Inventories:

     Food and beverage inventories at the hotel are carried at
cost, computed on a first-in, first-out basis.

Restricted Cash:

     The company has certain bank accounts that it considers
restricted as to use.  These accounts are used to accumulate
employee contributions for the profit sharing plan, for company
health insurance, and to accumulate funds for payment of property
taxes.

Affiliates:

     The consolidated financial statements include the accounts of
Western Standard Corporation and its wholly owned subsidiary,
Western Recreation Corporation.  Western Standard owns 76.43% of
its subsidiary, Snow King Resort, Inc.  Snow King Resort, Inc.'s
transactions are included in the consolidated financial statements.
All significant intercompany transactions and accounts have been
eliminated.

     Snow King Resort, Inc. acquired fixed assets and operating
assets and liabilities in several transactions closing on March 13,
1992.

     Substantially all the assets and liabilities of Snow King,
Incorporated were acquired for 9,500 shares of Class B stock of
Snow King Resort, Inc.  These assets and liabilities were recorded
at Snow King, Incorporated's book value on Snow King Resort, Inc.'s
books because they were acquired from a related corporation.  These
assets and liabilities consisted of cash, accounts receivable,
other assets, fixed assets and accumulated depreciation, accounts
payable, advance deposits, other liabilities, leases payable and
notes payable.  Snow King, Incorporated was subsequently
liquidated.

     Snow King Resort, Inc. issued 2,500 shares of Class B stock to
Western Standard for Western Standard's 50% interest in the assets
of Snow King Partnership.  These assets consist of land, buildings
and ski lifts.  No value was assigned to these assets because they
were acquired at Western Standard's basis of zero.




                               F-15

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:  Continued:

Affiliates:  Continued:

     Snow King Resort, Inc. borrowed $5,000,000 from banks, issued
$2,072,000 in convertible debentures, and sold $112,000 in Class A
stock to outside investors in order to purchase the hotel building,
land, and furniture and fixtures for the total purchase price of
$6,000,000.  Snow King Resort, Inc. paid $350,000 for its remaining
50% interest in Snow King Partnership's assets.  The convertible
debentures were converted into Class A preferred stock in Snow King
Resort, Inc. in 1994.

     Western Standard Corporation and Snow King, Incorporated
placed all their shares of Class B common stock of Snow King
Resort, Inc. into a voting trust, granting to Manuel B. Lopez the
sole right to vote such shares for the duration of the voting
trust.  The initial term of the voting trust is ten years,
beginning in 1992, and may be extended for subsequent ten-year
periods by the consent of Western Standard Corporation and Mr.
Lopez

     Western Standard Corporation owns 49% of Snow King Resort
Center, Inc.  This investment was carried on Western Standard's
books at $6,720, its cost.  Snow King Resort Center has had a
history of losses since its inception.  During 2001, the investment
in this corporation was written off under the equity method of
accounting.

Accrued Vacation:

     Accrued expenses include accrued vacation liability of
$120,462 and $112,763 at December 31, 2001 and 2000, respectively,
for the employees of Snow King Resort, Inc.

Advertising:

     The Company's policy is to expense advertising costs as
incurred.  Advertising expenses for 2001 and 2000 were $405,279 and
$327,912, respectively.

Retirement Plan:

     Snow King Resort, Inc. adopted a 401(k) retirement plan for
its employees in 1994.  Employees are covered by the plan after 12
months of full time employment.  Employees contribute part of their
salary to the plan.  The Resort may match some portion of the
employee contributions.  At December 31, 2001 and 2000, the Resort
had a liability for matching contributions of $8,522 and $9,109.

                               F-16


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:  Continued:

Use of Estimates:

     The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.

Concentrations of Risk:

     Western Standard and its subsidiaries maintain cash in bank
deposit accounts which, at times, may exceed federally insured
limits.  The Company has not experienced any losses in such
accounts.

NOTE 3:  OTHER ASSETS:

     Other assets include:
                                                 2001      2000
     Account receivable-officer                $  3,000  $    -0-
     Investment in stock (Snow King Resort
       Center and other)                          5,412    12,102
     Prepaid loan fees, net of amortization      29,750    36,890
     Incorporation costs                          1,163     1,163
     Account receivable, Love Ridge
       Development                                 9,133    49,517
                                               $  48,458  $ 99,672

NOTE 4:  LIABILITIES:

     Accrued expenses consist of the following:

                                               2001       2000

     Accrued payroll                          $  98,954  $ 100,567
     Accrued vacation                          120,462    112,763
     Accrued interest                           47,584     52,837
     Payroll, sales and property taxes         101,695    111,438
     Profit sharing plan                         8,522      9,109
     Other                                     131,321     60,511
                                             $ 508,538  $ 447,225




                               F-17


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 5:  LONG AND SHORT TERM DEBT:
                                             Portion
2001:                 Interest             due within   Long term
             Security   rate     Balance    one year     portion
Leases:
Xerox Corp.
  Leases      Copiers  Various $     2,516  $  2,264  $       252

Notes Payable:
First Interst.  Real
Bank, monthly   estate
payments of     furn/fixt
$107,847        leases &
                permits 7.98%  $ 8,906,515  $267,640  $ 8,638,875

First Interst.  Liquor
Bank, line of   license,
credit, due     real est.,
12/15/02,       leases and
maximum amt.    permits
$630,000               5.125%      345,000   345,000          -0-

A1 Credit
Ins. note,
monthly
payments
$18,977,
due 8/9/02    Unsecured  8.5%      148,074   148,074          -0-
      Total notes payable      $ 9,399,589  $760,714  $ 8,638,875

TOTAL LONG AND SHORT TERM DEBT $ 9,402,105  $762,978  $ 8,639,127

                                             Portion
2000:                 Interest             due within   Long term
             Security   rate     Balance    one year     portion
Leases:
Xerox Corp.
  Leases      Copiers  Various $     5,604   $   3,088 $     2,516

Notes Payable:
First Interst.  Real
Bank, monthly   estate
payments of    furn/fixt
$107,847       leases,
                permits  7.98%  $ 9,140,490   $ 260,621 $ 8,879,869





                               F-18


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000


NOTE 5: LONG AND SHORT TERM DEBT: Continued:

A1 Credit
Ins. note,
monthly
payments
$17,746,
due 7/9/01  Unsecured    8.5%      120,893     120,893         -0-
      Total notes payable      $ 9,261,383   $ 381,514 $ 8,879,869

TOTAL LONG AND SHORT TERM DEBT $ 9,266,987   $ 384,602 $ 8,882,385

     Snow King Resort, Inc. refinanced its ORIX mortgage with First
Interstate Bank of Casper, Wyoming on March 23, 1999 for
$9,370,000.  The proceeds were used to pay off the ORIX and Jackson
State Bank loans, exercise the Love Land Option, pay accounts
payable, and make renovations to the hotel.  A line of credit of
$630,000 was also obtained.  All real estate, furniture, equipment
and leases are pledged as security for these notes.  A $1,000,000
life insurance policy on Manuel Lopez has been assigned as
collateral on these notes.

     Interest only payments were due through June 15, 2000, then
interest and principal payments of $107,847 per month were due.  No
monthly payments are due for the months of November, April and May
of each year.  The interest rate will be adjusted March 15, 2002 to
the Wall Street Journal prime rate plus 1.125 percent.

     Principal payments due on the First Interstate Bank mortgage
for the next five years are as follows:

     2002                           $   267,640
     2003                               289,633
     2004                               314,378
     2005                               343,752
     2006                             7,691,112

                                    $ 8,906,515

     Manuel B. and Deborah Lopez are guarantors on the debt to the
extent of one million dollars.  Snow King Resort pays them
guarantor's fees of $1,000 per month.  The loan requires Snow King
Resort, Inc. to maintain a certain level of cash flow.






                               F-19

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 5: LONG AND SHORT TERM DEBT; Continued:

Short term borrowings information:
                                       2001        2000

     Balance at end of year          $ 493,074   $ 120,893
     Range of interest rates       5.125%-8.5%  8.125%-8.6%
     Maximum outstanding             $ 682,492   $ 530,000
     Average outstanding,
       computed by weighted
       average of end of
       month balances                $ 455,130  $ 281,008
     Weighted average interest
       rate computed
       by total interest due,
       divided by average
       note balance                       6.6%       8.6%

     Loans included in this computation were the First Interstate
line of credit, and A1 Insurance financing.

NOTE 6:  STOCK OPTION AND STOCK BONUS PLAN:

     During 1972, the Board of Directors approved a Stock Bonus
Plan of indefinite term whereby certain officers and key employees
were granted shares of the Company's common stock for services
rendered during the year, based on their salaries and in some cases
their length of service with the Company.

     Under this Plan, shares have been granted in prior years.  No
stock bonuses were issued in 2001 or 2000.  The Plan provides that,
at the discretion of the Executive Committee of the Board of
Directors, a cash bonus in the approximate amount of the income tax
related to the stock bonus may be paid to such employees.  No such
cash bonuses have been paid as of December 31, 2001.

     Snow King Resort, Inc. has granted an option to purchase up to
3,000 shares of Class B common stock of Snow King Resort, Inc. to
Manuel and Deborah Lopez.  The option price has been set at $140
per share.  The option was not exercised in 2001 or 2000.

NOTE 7:  FEDERAL INCOME TAXES:

     Western Standard Corporation and its subsidiaries filed
consolidated income tax returns in 1993 and prior years.  Since
Western Standard's ownership in Snow King Resort, Inc. dropped
below 80% in 1994, separate income tax returns for Snow King
Resort, Inc. were filed after that year.  Western Standard's net
operating loss carryover at December 31, 2001 is approximately
$286,000, which will begin to expire in 2003 if not used.

                               F-20

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 7:  FEDERAL INCOME TAXES:  Continued:

     Snow King Resort, Inc. succeeded to the net operating loss of
Snow King, Incorporated of approximately $999,000.  The net
operating loss carryovers from Snow King, Incorporated have limited
deductibility of approximately $84,000 per year.  These allowed
carryovers and Snow King's losses have accumulated to $2,670,000 at
December 31, 2001.  Snow King Resort, Inc. also acquired the
investment credit and jobs credit carryovers of Snow King,
Incorporated.  Investment credit carryovers expired in 2000.  Tip
credit carryovers of approximately $18,000 have also been earned,
which will begin to expire in 2009 if not used.

     Western Standard has provided for income taxes on its income
statement at statutory rates.  Its net operating loss carryovers
eliminate any tax liability.

     A deferred income tax asset has been established to reflect
the tax consequences for future years of temporary timing
differences of revenue and expense items for financial statement
and income tax reporting purposes.

     The deferred income tax asset account consists of the income
tax effect at 34% of the following items:
                                           For the years ended
                                               December 31,
                                            2001        2000
     Net operating loss carryovers      $ 1,005,298   $ 993,032
     Depreciation difference           (    207,922) (  149,239)
     Credit carryovers                       18,187      15,542
     Other                             (      2,352) (      338)
                                        $   813,211   $ 858,997
     Less valuation allowance          (    813,211) (  858,997)
         Deferred tax asset             $       -0-   $     -0-

     A valuation allowance equal to the balance of the account has
been established due to the uncertainty of realizing the future
benefit of these credit and loss carryforwards.  The future benefit
is dependent upon future profitability of the company.

     The provision for income taxes is different from that which
would be obtained by applying the statutory federal income tax rate
of 34% to income (loss) items before income taxes.  The items
causing this difference are as follows:
                                           2001        2000
     Tax at statutory rate              ($ 182,349) ($ 80,700)
     Depreciation difference            (   57,659) (  71,132)
     Provision for Center collectibility    32,300     23,800
     Patronage capital discount              4,805      1,697

                               F-21


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 7:  FEDERAL INCOME TAXES:  Continued:

     Nondeductible expense                   3,924      3,461
     Loss on discarded assets                  101      1,107
     Other net                               3,111        254
                                        ($ 195,767) ($121,513)
     Valuation allowance                   195,767    121,513
     Provision for income tax            $     -0-        $    -0-

     Western Standard's income tax returns through 1976 were
examined by the Internal Revenue Service in 1978, and were accepted
as filed.

     The federal tax loss for Western Standard and Western
Recreation is approximately $29,000 for 2001.  The tax loss for
Snow King Resort, Inc. for 2001 is approximately $551,000.  The
federal tax return loss for 2000 was $13,700 for Western Standard
and Western Recreation; and a $374,000 net loss for Snow King
Resort, Inc.  The federal tax return loss differs from net
financial loss because of depreciation differences and differences
in deductions.

NOTE 8:  RELATED PARTY TRANSACTIONS:

     The Resort is managed by a corporation, Snow King Resort
Management, Inc., which is controlled by two officers and directors
of Western Standard.  The Resort pays a management fee of 2% of
sales to Snow King Resort Management, Inc.  At December 31, 2001,
Snow King Resort, Inc. owed the management company $44,628 in
management fees.  Snow King Resort, Inc. incurred management fees
totaling $199,703 in 2000 and $190,422 in 2001.

     An officer of Western Standard Corporation owes a note payable
to Western Standard which carries an interest rate of 8%.  This
note has a balance of $10,000 at December 31, 2000 and 2001.

     Western Standard agreed to pay a fee of $100,000 to the
officer for structuring the Snow King Resort, Inc. asset purchase.
$10,000 of this fee was paid in 1992, and the remaining $90,000 is
shown as a noncurrent liability on the financial statements.

     The shareholders of Snow King Resort, Inc. formed a related
corporation, Snow King Resort Center, Inc., to operate and lease
the Town of Jackson's skating rink facility.  The facility can be
used to house conventions, exhibitions, and large banquets.  The
facility is operated in conjunction with the Resort.  Western
Standard owns 49% of Snow King Resort Center, Inc.  Since Western
Standard does not own a controlling interest in Snow King Resort
Center, Inc., that corporation's transactions are not included in

                               F-22


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 8: RELATED PARTY TRANSACTIONS: Continued:

these consolidated statements.  During 2001, Snow King Resort, Inc.
advanced $53,541 to Snow King Resort Center, Inc.  During 2000,
Snow King Resort, Inc. advanced $66,540 to Snow King Resort Center,
Inc.  The total amount receivable from Snow King Resort Center,
Inc. at December 31, 2001 is $1,566,232.  An allowance for
collectibility of $1,425,000 has been established to reduce the
advances to a net realizable value equal to Snow King Resort
Center's book value of assets.  The allowance was increased by
$70,000 in 2000 and $95,000 in 2001.

NOTE 9:  LEASEHOLD INTEREST:

     Snow King Resort, Inc. acquired the leases of Snow King,
Incorporated on March 13, 1992.  One lease was with the Town of
Jackson for an old ski shelter.  The Town demolished the old ski
shelter and replaced it with a larger structure housing both a ski
shelter and a large skating rink.  Snow King Resort, Inc. paid
costs of demolition and excavation in the amount of $21,414.  Snow
King Resort, Inc. transferred 1.3 acres of land costing $21,124 to
the Town upon which to build the facility.  These items were
capitalized as leasehold costs.  Snow King Resort, Inc. leases the
ski shelter part of the building.  Snow King Resort Center, Inc.
leases the skating rink part of the building.  These costs of
acquiring a leasehold are being amortized over the 30 year life of
the lease at $1,418 per year.

     The lease calls for monthly payments to the Town of Jackson,
and supplemental rent based on gross revenues generated by the
facility.  During 1999, the Resort prepaid $82,400 of its lease
liability, reducing its monthly payments to $900 per month.  This
$82,400 was recorded as prepaid lease.  This amount is being
amortized over the remaining life of this part of the lease at
$1,648 per month.

     Minimum lease payments will be $10,800 per year or a total of
$54,000 over the next five years.

NOTE 10:  OIL AND GAS DISCLOSURES:

     Western Standard's percentage royalty ownership in its oil
production wells is very small.  The production from the producing
wells is nominal and has now exceeded their original reserve
estimates.  Management believes that the cost of obtaining the
information for oil and gas disclosure exceeds the benefits.
Therefore, the reserve information for the required oil and gas
disclosure is not available.  Western Standard is not the operator
of any of the producing wells or properties and has no control over
any of them.

                               F-23

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 10:  OIL AND GAS DISCLOSURES:  Continued:

     All of Western Standard's oil and gas properties are located
in central Wyoming.  No costs related to exploration and
development of these properties have been incurred over the past
three years.  The capitalized costs for the last three years is
nil.  Western Standard sold its wells in the Kaye Field, Converse
County, Wyoming, in 1997, for $70,000.  In 1998, Western Standard
sold coalbed methane gas drilling rights to the first 2,500 feet of
its wells in the Grady Unit for $12,838.  In 1999, Western Standard
sold coalbed methane gas drilling rights to the first 2,500 feet of
its wells in the Daly lease for $10,000.

     Western Standard's oil and gas revenues have been dominated by
two buyers, KN Energy and 88 Oil.  These buyers purchased the
following amounts of oil and gas in the following years:
                                           88 Oil    KN Energy

          1997                            $ 13,149    $ 13,953
          1998                            $  7,779    $  9,350
          1999                            $  8,739    $ 14,664
          2000                            $  9,759    $ 30,716
          2001                            $  7,638    $ 30,028

NOTE 11:  LEASES:

     Snow King Resort, Inc. leases some equipment under capital
leases.  The leases have terms of 36 to 60 months.  The following
costs of equipment are included in property and equipment in
accordance with these leases in 2001 and 2000:
                                           2001         2000

     Total lease-purchased assets        $ 263,545    $ 267,718
     Accumulated depreciation           (  213,299)  (  194,991)
           Net assets                    $  50,246    $  72,727

     Most of the leases were paid off in 1998.

     Presented below is a schedule by years of future minimum lease
payments under the remaining capital leases with the principal  net
minimum lease payments as of December 31, 2001.

     Year ended December 31, 2002          $ 2,264
                             2003              252
     Principal amount of minimum
       lease payments                      $ 2,516
     Current portion of principal
       amount                              $ 2,264
     Long term portion of principal
       amount                                  $   252

                                                                         F-24
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 12:  CONTINGENT LIABILITIES AND COMMITMENTS:

     At December 31, 2000, Snow King Resort, Inc. failed to comply
with one of the First Interstate Bank note covenants concerning
required cash flow.  The bank has agreed to waive enforcement of
the covenant at December 31, 2000.  As a condition of the waiver,
Snow King Resort, Inc. was to achieve certain levels of net income
for the periods ended June 30, 2001, September 30, 2001, and
December 31, 2001.  Failure to achieve these levels of net income
resulted in additional fees due to the bank in the amount of
$16,880 in 2001.

     At December 31, 2001, Snow King Resort, Inc. failed to comply
with one of the First Interstate Bank note covenants concerning
cash flow.  The bank has consented to waive the technical default
for 2001.  The interest rate will be adjusted to a floating rate at
March 15, 2002 of the prime rate plus 1.125%.  Snow King Resort,
Inc. will pay a fee to the bank of less than $5,600 for its
noncompliance with the covenant.

NOTE 13:  LIQUIDITY:

     At December 31, 2001 and 2000, Snow King Resort, Inc. had
negative working capital which caused difficulties in paying its
current operating obligations.  The cash flow shortfalls arose in
part because of seasonal fluctuations in sales.  Other factors
contributing to the cash flow problems were cash advances to Snow
King Resort Center, Inc., debt service costs, unprofitable
operations, and purchases of fixed assets.  These expenditures used
cash that was therefore unavailable for payment of trade creditors.

     Collection of the $1,566,282 advanced to the Snow King Resort
Center, Inc. over the last several years is dependent on future
profitable operation of that facility or future sale.  It is
doubtful that the amount receivable will be collectible in the next
year.  A merger of Snow King Resort Center, Inc. into Snow King
Resort, Inc. is planned.  An allowance of $1,425,000 has been
established to reduce this account receivable to its estimated
realized value.

     Management plans to sell some lots in Jackson that are not
needed in the operation to generate additional funds for
operations.  The first sale was completed in March 2002 at a price
of $1,080,000.  The proceeds will be used to pay bank debt.  The
second sale is being negotiated.





                               F-25


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 14:  INDUSTRY SEGMENT INFORMATION:

     Western Standard Corporation's major operations are in oil and
gas working interests and, through Snow King Resort, Inc. its 76%
owned subsidiary, the resort industry.  Selected information
concerning those industry segments is presented below:
                           2001           2000           1999
REVENUE - oil and gas
  interests            $     40,498  $     42,864   $     23,055
PRODUCTION COSTS      (      17,287) (      18,288) (      11,660)
OPERATING INCOME -
  oil and gas          $     23,211  $     24,576   $     11,395
IDENTIFIABLE ASSETS
  (at net book value)  $     28,716  $     28,716   $     28,716

CAPITAL EXPENDITURES   $        -0-  $        -0-   $        -0-
REVENUE - Snow King
  Hotel Segment        $  9,556,337  $  9,964,724   $  8,591,377

OPERATING INCOME       $  1,158,512  $  1,149,571   $    919,973

DEPRECIATION           $    529,808  $    555,818   $    566,509
IDENTIFIABLE ASSETS
  (at net book value)  $ 10,433,995  $ 10,784,284   $ 10,640,038

CAPITAL EXPENDITURES   $    272,557  $    669,509   $  2,050,297

     A reconciliation from the segment information to the
consolidated balances for net loss and assets is set forth below.
                           2001           2000           1999
Segment income
from operations:
  Oil and gas          $    23,211   $     24,576   $     11,395
  Snow King Hotel        1,158,512      1,149,571        919,973
  Other income               3,280          9,696        253,523
Expenses:
  Depreciation        (     530,622) (     555,818) (     566,509)
  Amortization        (      28,332) (      28,332) (      36,974)
  Interest            (     807,351) (     789,042) (     964,127)
  Other expenses      (     355,018) (      48,004) (     325,145)
Consolidated net
  income (loss)       ($    536,320) ($   237,353)  $    707,864
Segment assets:
  Oil and gas          $     28,716  $     28,716   $     28,716
  Snow King Hotel        10,433,995    10,784,284     10,640,038
  Cash                      101,429       146,281        160,097
  Property & equipment       25,873         2,258          2,258
  Other assets               13,994        21,741         22,033
Consolidated total
  assets               $ 10,604,007   $10,983,280   $ 10,853,142

                               F-26
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2001 AND 2000

NOTE 15:  PATRONAGE CAPITAL-LOWER VALLEY POWER AND LIGHT:

     During 1999, Snow King Resort, Inc. recorded as an asset
patronage capital allocated to it by Lower Valley Power and Light.
Lower Valley Power and Light is a customer owned power cooperative.
Each year, Lower Valley Power allocates to its customers a share of
its net margins.  This patronage capital is refundable to the
customers of Lower Valley, at the discretion of its Board of
Directors, after a fifteen year period.  The allocation of
patronage capital to Snow King Resort, Inc. in 1999 was $27,762.
The allocation of patronage capital to Snow King Resort, Inc. in
2000 was $41,345. $17,284 of 1999 and prior years' patronage
capital was received in cash in 2000.


     Snow King Resort, Inc. was allocated $55,935 of patronage
capital in 2001 (for the year 2000).  Lower Valley Power and Light
offered to pay a discounted amount for the 2000 allocation in cash
in 2001.  Snow King Resort, Inc. accepted this offer and was paid
$10,754 for its 2000 patronage capital.  Patronage capital for the
years of 1985 and 1986 was paid to Snow King Resort, Inc. in the
amount of $27,019 in 2001.

     Snow King Resort, Inc.'s patronage capital outstanding at
December 31, 2001 is $406,647 consisting of capital allocations for
the years 1987-1999.  These amounts will be received in future
years.

     It will require many years for this asset to be converted to
cash.  Because of this, the patronage capital total has been
discounted to the estimated net value of its future cash flows
using Snow King Resort, Inc.'s current borrowing interest rate.


















                               F-27

Item 8.  Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.

     WSC has not experienced a change in its independent
accountants during the two most recent fiscal years, or had
disagreements with them.
                            PART III.

Item 9.  Directors, Executive Officers, Promoters and Control
Persons; Compliance with Section 16(a) of the Exchange Act.

     Information concerning each director and executive officer of
WSC, including business experience for at least the past five
years, is as follows:

     Stanford E. Clark, age 84, currently President, Treasurer,
Comptroller and a director, has been President, Vice President,
Treasurer, Comptroller and a Director of WSC from 1957 through 1969
and from 1974 to present.  He has also been Vice President and a
Director of Snow King Resort Management, Inc. since 1986 and
Treasurer and a Director of Snow King Resort, Inc. since February,
1992.

     Manuel B. Lopez, age 58, currently Vice President and a
director, has been a Vice President and Director of WSC since 1979.
He is also an owner of management companies, manager of Snow King
Complex, President and a Director of Snow King Resort Management,
Inc. since 1986, and President and a Director of Snow King Resort,
Inc. since February, 1992.

     James M. Peck, age 37 currently a director and Corporate
Secretary, has been a director of WSC since January 1, 1988.  Prior
to such time, he was primarily a student and had no other business
experience.  Mr. Peck also owns and operates a miniature golf
course in Jackson, Wyoming.  He recently acquired a company that
provides float trips on the Snake River near Jackson.  He has been
a Director and employee of SKRI since February, 1992.  On March 2,
1999, the Board of Directors unanimously voted Mr. Peck to be the
Corporate Secretary to replace Mr. Roylance.

     No family relationships exist between or among any of the
directors and executive officers.  No director serves as a director
of any other company with a class of equity securities registered
under the Securities Exchange Act of 1934 or a company registered
as an investment company under the Investment Company Act of 1940.

     No director, officer, or beneficial owner of more than ten
percent of the outstanding shares of WSC common stock failed to
file on a timely basis, as disclosed in Forms 3, 4, and 5, and any
amendments thereto, reports required by Section 16(a) of the
Securities and Exchange Act of 1934 during the fiscal year ended
December 31, 2001 or prior fiscal years, which are required to be
disclosed herein.







Item 10.  Executive Compensation.

     The following table sets forth cash compensation paid by WSC,
its subsidiaries and associated companies to its executive
officers; one of which received in excess of $100,000 during the
year ended December 31, 2001

                    Summary Compensation Table

                                          Other         All
Name and         Fiscal  Annual      Annual      Other
Principal Position Year   Salary   Compensation  Compensation
Stanford E. Clark   2001   $28,800       $  600      $ 36,941 (1)
Chief Executive
  Officer           2000   $28,800       $  600      $ 46,466 (1)

Manuel B. Lopez     2001   $36,000       $7,028 (2)  $279,689 (3)
Vice President of
  WSC and Chief
  Executive Officer
 of SKRI            2000   $36,000       $8,629 (2)  $275,396 (4)

_______________

(1)  Amounts paid to Mr. Clark by SKRMI from fees paid to SKRMI
     by SKRI.

(2)  Incidental fringe benefits.

(3)  Includes (i) $92,358 paid to Mr. Lopez by SKRMI from fees
     paid to SKRMI by SKRI; (ii) $12,000 paid to Mr. Lopez by SKRI
     for guaranteeing the First Interstate Bank loans; and (iii)
     $174,731 in fees and commissions paid to Mr. Lopez by SKRMI,
     and $600 in Director's fees paid by WSC.

(4)  Includes (i) $99,288 paid to Mr. Lopez by SKRMI from fees
     paid to SKRMI by SKRI; (ii) $12,000 paid to Mr. Lopez by SKRI
     for guaranteeing the ORIX loan and the First Interstate Bank
     loans; and (iii) $150,501 in fees and commissions paid to Mr.
     Lopez by SKRMI, and $600 in Director's fees paid by WSC.

     The Company pays directors $50 per meeting attended or $600
per year, whichever is greater.  Directors are also reimbursed for
reasonable out-of-pocket expenses incurred in connection with their
duties.

Item 11.  Security Ownership of Certain Beneficial Owners and
Management.

     As of March 15, 2002, the only persons known by WSC to own
beneficially more than 5% of the issued and outstanding common
stock of WSC were:







                         Amount and Nature          Percent
Name and Address         of Beneficial Ownership       of
of Beneficial Owner      Direct (1)     Indirect     Class

Stanford E. Clark,
Living Trust, dated
5/24/93                  1,817,118       29,900(2)  18.54%
2205 West Main
Riverton, Wyoming 82501

Deborah Wilson Lopez &
Manuel B. Lopez, TTEES
Deborah Wilson Lopez
Living Trust, dated
2/25/97                               1,000,000(3)  10.04%
P.O. Box 928
Jackson, Wyoming 83001

Manuel B. Lopez &
Deborah Wilson Lopez, TTEES
Manuel B. Lopez Living
Trust, dated 2/25/97     1,235,104       --         12.39%
P.O. Box 928
Jackson, Wyoming 83001

James D. Soumas, TTEE
MEP Trust UA
DTD 1/28/98              2,672,182       --         26.81%
_______________

(1)  Represents shares over which the named individuals have sole
     voting and investment powers.

(2)  These shares are owned by the Merrial K. Clark Living Trust,
     dated 5/24/93 of which Mr. Clark is the Trustee.  He may be
      deemed to have shared voting and/or investment power over the
     shares.

(3)  These shares are owned by the Deborah Wilson Lopez Living
     Trust, dated 2/25/97.  Manuel B. Lopez is a trustee and may be
     deemed to have shared and/or investment powers over the
     shares.

     The following sets forth information as of March 15, 2002,
concerning each director's and executive officer's ownership of
common stock (WSC's only class of voting securities), on an
individual basis and ownership by all directors and executive
officers of WSC as a group:


                         Amount and Nature of       Percent
                         Beneficial Ownership          of
Name                     Direct       Indirect       Class

Stanford E. Clark
Living Trust, dated
5/24/93                  1,817,118      29,900(1)    18.54%
Deborah Wilson Lopez &
Manuel B. Lopez, TTEES
Deborah Wilson Lopez
Living Trust, dated
2/25/97                              1,000,000(2)   10.04%

Manuel B. Lopez &
Deborah Wilson Lopez, TTEES
Manuel B. Lopez Living
Trust, dated 2/25/97     1,235,104    --            12.39%

James M. Peck               20,000    --               .2%

Directors and Executive
Officers as a Group
(3 persons)              3,072,222   1,029,900      41.17%
_______________

(1)  These shares are owned by the Merrial K. Clark Living Trust
     dated 5/24/93, of which Mr. Clark is the Trustee.  He may be
      deemed to have shared voting and/or investment power over the
     shares.

(2)  These shares are owned by the Deborah Wilson Lopez Living
     Trust, dated 2/25/97.  Manuel B. Lopez is a trustee and may be
     deemed to have shared and/or investment powers over the
     shares.

     WSC is not aware of any arrangement which may result in a
change in control.

Item 12.  Certain Relationships and Related Transactions.

     The following describes each significant transaction or series
of similar transactions since January 1, 1991, or currently
proposed transaction, to which WSC was or is a party in which any
director or officer or affiliate of such person had or has a direct
or indirect interest.

     Stanford E. Clark, President and a director of WSC, and Manuel
B. Lopez, Vice President and a director of WSC, control and
collectively own all of the outstanding capital stock of SKRMI.
SKRMI presently manages the Hotel, the Ski Area, and the Snow King
Resort Center pursuant to a management agreement with SKRI
providing for a management fee equal to 2% of gross revenues.  The
management agreement expires 3/31/02 but will be renegotiated.

     During 1992, Mr. Lopez borrowed $31,602 from SKRI.  Of this
amount, $11,602 was repaid by Mr. Lopez and the remaining $20,000
was repaid by WSC, all in January, 1993.  Upon payment of the
$20,000 by WSC, Mr. Lopez executed a note in the amount of $20,000
payable to WSC due October 16, 1993, and bearing interest at the
rate of 6.5% per annum.  At December 31, 1993, $15,000 remained
unpaid along with $1,300 unpaid interest.  In February, 1994, WSC
received a principal payment of $7,500.  At December 31, 1995,
there remained a balance due in the amount of $10,062.01, including
interest.  The balance of this note was extended to June 30, 1996.

     On March 14, 1997, Mr. Lopez paid interest in the amount of
$732.14 through December 31, 1996.  A new note was issued in the
amount of $10,000, to mature October 31, 1997, with interest
increased to 9%.  Interest was paid to 12/31/97 and a new note in
the amount of $10,000 was signed by Mr. Lopez, effective 1/1/98,
bearing 9% interest and matured December 31, 1998.  A new note in
the amount of $10,000 to mature December 31, 1999 at 8%, replaced
the note that matured December 31, 1998.  A new note in the amount
of $10,000 at 8% to mature December 31, 2000 replaces the note that
matured December 31, 1999.  Interest for 1999 at 8% was paid in
January, 2000.  A new note in the amount of $10,000 at 8% interest,
to mature 12/31/01, replaced the note that matured 12/31/00.
Interest was paid through the year 2000.  This note was replaced by
another in the amount of $10,000 bearing interest at 7% to mature
12/31/02.  Interest has been paid for 2001.

     In November, 1995, Mr. Lopez loaned $30,000 to SKRI.  This
note bears interest at the rate of 9% per annum and matured March
31, 1996.  This note was paid in full on February 20, 1996.

     On December 28, 1995, SKRI borrowed $15,000 from WSC.  This
unsecured note bears interest at the rate of 9% per annum and
matured March 31, 1996.  On February 12, 1997, the interest was
paid and the maturity date extended to October 31, 1997 by a new 9%
note.  Interest was paid to 12/31/97 and a new note in the amount
of $15,000 effective 1/1/98 was signed by Mr. Lopez for Snow King
Resort, bearing 9% interest and matured December 31, 1998.
Interest in the amount of $1,350 was paid in March 1999 for the
year 1998.  A new note was signed effective January 1, 1999 at 8%
for $15,000.  This note and interest were paid in January, 1999.

     In connection with the Restructuring of Snow King Resort,
Inc., Manuel Lopez (along with his wife, Deborah), and Margaret
Peck each purchased 10% of the securities sold in a stock offering.
Also in connection with the Restructuring, Manuel Lopez and his
wife personally guaranteed $1,000,000 of the Loan and, pursuant to
the terms of a voting trust, Mr. Lopez has the sole right to vote
the shares of SKRI owned by WSC for a period of at least ten years.
As compensation for personally guaranteeing the Loan, Mr. Lopez and
his wife receive $1,000 per month for so long as the guarantee is
in effect.  In addition, in April, 1992, SKRI granted to Mr. Lopez
and his wife an option to purchase 3,000 shares of Class B Common
Stock for a period of ten years at a price of $140 per share.
These agreements expire 3/31/02 but will be renegotiated.

     In March, 1992, SKI paid SKRMI $75,000 as a cash bonus to be
paid to Mr. Lopez.  This Bonus was granted to Mr. Lopez by SKRMI in
1990 and was ratified by SKI in 1991, and was originally to be paid
on July 5, 1990.  It was paid in full March 26, 1992.

     On April 5, 1991, SKP entered into a lease agreement with Wind
River Ventures, Inc. ("Wind River"), a corporation owned and
controlled by James M. Peck, a director of WSC, providing for the
lease of property later owned by SKRI, to Wind River, for the
purpose of conducting a miniature golf course business (the
"Business") on such property.  The initial term of the lease was
from April 1, 1991 through March 31, 1997.  The terms of the lease
have been changed; the maturity date is March 31, 2008.

     On March 10, 1992, WSC granted Mr. Lopez a bonus of $100,000
in recognition of his efforts in successfully completing the
Restructuring.  The bonus is payable in two increments, $10,000,
which was paid in 1992 and $90,000 in the future, if and when WSC
is in a position to pay him such amount in a lump sum.  The unpaid
portions of the bonus will not accrue interest.

     Mr. Lopez and his wife, Deborah, are cosigners on the $630,000
at 8.125% interest line of credit of SKRI at First Interstate Bank
of Casper, Wyoming.  As such, they are personally liable for the
outstanding amount of such line of credit.  As of December 31,
2001, the outstanding principal amount of such line of credit was
$345,000.  For this guarantee and the guarantee of $1,000,000 of
the hotel mortgage, Mr. and Mrs. Lopez are paid $1,000 per month.
During the past several years, Messrs. Clark and Lopez have each
been personally liable for certain of SKI's borrowings.

     In March 1993, additional shares of Class A Common Stock in
SKRI were offered for sale to the investors in SKRI at $140.00 per
share.  Mr. Lopez and Margaret Peck each purchased 135 shares.  A
total of 1,350 shares were sold at $140.00 per share for a total of
$189,000.00, in this offering.  (Also refer to "Additional Sales of
Stock" on page 4.

     In 1992, the shareholders of SKRI formed a new corporation,
Snow King Resort Center, Inc. ("SKRC"), to lease and operate the
new skating rink being built by the town of Jackson on land donated
by SKRI.  WSC owns 49.0% of the outstanding common equity of SKRC.
Also, see auditor's Note number 9.

     Western Standard's investment in Snow King Center in the
amount of $6,720 was written off in 2001.

     In 1992, the shareholders of SKRI, other than WSC, formed a
new limited liability company, SK Land Limited Liability Company
(SKLLC), to acquire and develop approximately five acres of land
adjacent to the Hotel (the "Project").  SKLLC has agreed to grant
an option to SKRI to acquire the Project at SKLLC's cost.  WSC
declined to participate in the Project.

Item 13.  Exhibits.

     (a)  Exhibits:

     The following exhibits are filed herewith or incorporated by
reference to previously filed documents:

     (3)  Articles of Incorporation and Bylaws                (A)
     (4)  Instruments defining the rights of
          security holders, including indentures              (B)
     (9)  Voting trust agreement                              (C)
     (10) Material contracts                                  (D)
     (11) Statement re:  computation of per share earnings    (E)
     (13) Annual or quarterly reports, Form 10-Q             None
     (16) Letter on change in Certifying Accountant          None
     (18) Letter re:  change in accounting principles        None
     (19) Previously unfiled documents                       None
     (22) Subsidiaries of the Registrant                      (F)



     (23) Published report regarding matters
          submitted to vote                                  None
     (24) Consents of experts and counsel                    None
     (25) Power of Attorney                                  None
     (28) Additional exhibits                                 (G)
     (29) Information from reports furnished to
          State Insurance authorities                        None
_______________

(A)  Filed as Exhibits 90.3.1 and 90.3.2 to the Registrant's
     Annual Report on From 10-K for the year ended December 31,
     1990, and hereby incorporated by reference thereto.

(B)  A copy of the form of Convertible Subordinated Debentures
     of Snow King Resort, Inc. was filed as Exhibit 4.1 to the
     Registrant's Current Report on Form 8-K, dated March 13,
     1992, and is hereby incorporated by reference thereto.
     Copies of the following documents were filed as exhibits to
     the Registrant's Annual Report on Form 10-K for the year
     ended December 31, 1991, and are hereby incorporated by
     reference thereto.

Exhibit

     Exhibit numbers 91.4.1 through 91.4.15 no longer apply as ORIX
has been paid in full.

(C)  A copy of the Voting Trust Agreement, dated March 12, 1992, by
     and among the Registrant, Snow King, Incorporated, and Manuel
     B. Lopez, as Trustee, was filed as Exhibit 91.9.1 to the
     Registrant's Annual Report on Form 10-K for the year ended
     December 31, 1991, and is hereby incorporated by reference
     thereto.

(D)  The following material contracts are incorporated herein by
     reference thereto.

Exhibit

     -         Lease Agreement, dated August 9, 1990, by
               between Snow King, Incorporated and Telerent
               Leasing Corporation (filed as Exhibit 90.10.3
               to the Registrant's Annual Report on Form
               10-K for the year ended December 31, 1990, and
               hereby incorporated by reference thereto)

     -         Snow King Resort Operating Agreement, dated
               March 12, 1992, by and between Snow King Resort,
               Inc. and Snow King Resort Management, Inc. (filed
               as Exhibit 91.10.1 to the Registrant's Annual
               Report on Form 10-K for the year ended December 31,
               1991, and hereby incorporated by reference thereto).

     -         Purchase and Sale Agreement of SKI Leasehold
               Interest and Assets, dated December 31, 1991,
               by and between Snow King Resort, Inc., Snow
               King, Incorporated, and Snow King Resort
               Management, Inc. (filed as Exhibit 2.2 to the
               Registrant's Current Report on Form 8-K, dated
               March 13, 1992 and hereby incorporated by
               reference thereto)

     -         Purchase and Sale Agreement of WSC
               Partnership Interest, dated December 31, 1991, by
               and between Snow King Resort, Inc., the Registrant,
               and Snow King Resort Management, Inc. (filed
               as Exhibit 2.3 to the Registrant's Current
               Report on Form 8-K, dated March 13, 1992, and
               hereby incorporated by reference thereto).

(E)  Not required, since information is ascertainable from the
     Financial Statements.

(F)  Filed with form 10KSB for 1997 as Exhibit 92.22.1

_______________

     (b)       No reports on Form 8-K have been filed by the
               registrant during the fourth quarter of the year
               ended December 31, 2001.

                         Exhibit 92.22.1

           SUBSIDIARIES OF WESTERN STANDARD CORPORATION


     Name                               State of Incorporation

Western Recreation Corporation                  Wyoming
Snow King Resort, Inc.                          Wyoming
dba Snow King Resort

(G)  Exhibits 93.8.1 and 94.9.1 through 94.9.10 were attached
     and filed with Form 10KSB for the year 1994.   They are
     incorporated herein by reference thereto.

     Exhibits 94.4.11 and 94.4.12 were inadvertently not filed
     with Form 10KSB for the year 1994, but are filed herewith.

Exhibit

     Exhibits 93.8.1 through 94.4.14, except for 94.4.11, 12 & 14,
do not apply any more.

94.4.11                                 Lease Agreement - Ski
                                        Shelter, Ski Lift and
                                        Mountain Tract

94.4.12                                 Lease Agreement - Ice Rink
                                        Tract

94.4.14                                 Ski Area Term Special Use
                                         ermit to expire 12/31/2039
                                        between the U.S. Forest
                                        Service and Snow King
                                        Resort, Inc.

94.4.15                                 Use of Indemnity Agreement
                                        between the Town of Jackson
                                        and Snow King Resort, Inc.,
                                        effective as of 12/30/98

94.4.16                                 Addendum modification of
                                        lease agreement between the
                                        Town of Jackson and Snow
                                        King Resort, Inc., dated
                                        11/16/98

94.4.17                                 Promissory note, Snow King
                                        Resort, Inc. to First
                                        Interstate Bank of Casper,
                                        Wyoming, dated 3/23/99 in
                                        the amount of $9,370,000

94.4.18                                 Promissory note, Snow King
                                        Resort, Inc. to First
                                        Interstate Bank of Casper,
                                        Wyoming, dated 3/23/99 in
                                        the amount of $630,000

     Exhibits 94.4.14 through 94.4.18 were submitted with Form 10-
KSB for the year 1999.  They are incorporated herein by reference.

                            SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                   WESTERN STANDARD CORPORATION

Date: March 28, 2002               By:/s/ Stanford E. Clark
                                      Stanford E. Clark, President

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.

Date:  March 28, 2001              /s/ Stanford E. Clark
                                   Stanford E. Clark
                                   President, Treasurer (Principal
                                   Executive, Financial and
                                   Accounting Officer) Comptroller
                                   and Director