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

                           FORM 10-KSB

[X ]  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2002
[  ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 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 under       Name of exchange on which
Section 12(g) of the Act:  None            registered:
       (Title of Class)
________________________________         ________________________

Securities registered under Section 12(g) of the Act:


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

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

Yes   X    No

Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B is not contained in this form, 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 10-KSB or any
amendment to this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year
$11,299,761


State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the
price at which the common equity was sold, or the average bid and
asked price of such common equity, as of a specified date within
the past 60 days.  The aggregate market value of the voting stock
held by non-affiliates of the registrant was $293,145 based upon
the average of the bid and asked prices of the common stock on
February 24, 2003.

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.  As of
March 15, 2003, there were 9,963,015 shares of the registrant's
common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE. None

The exhibit index begins on page 42.

             Transitional Small Business Disclosure
              Format (Check one):
              Yes      No X

                            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 204 room, dining room, bar, convention
center, 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
expired 3/31/02 but was verbally extended to 12/31/02 by the SKRI
Board of Directors.  Effective 1/1/03 Mr. Clark will no longer
share in any management fees.  A work arrangement for Mr. Lopez is
being negotiated.

     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 (a)
     Stanford E. Clark, Treasurer and Director (b)
     Clarene Law, Director
     Joseph Byron, Director
     Creed Law, Secretary
     James Peck, Director (c)
     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.

     As a result of 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 it has been operated over
the last several years.

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 2003.

     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 2002, WSC, including its subsidiaries, because of the
seasonality of its business, had between 263 and 191 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) 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.

                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,
2002:

     A 5% net profit interest in Patented Uranium Such Claim No. 7
in Carbon County, Wyoming.  It is not in production.


     Several small working interests in oil fields in Wyoming.





Item 3.  Legal Proceedings.

     At December 31, 2002, one lawsuit had been filed against Snow
King Resort by a doctor who was hurt while riding the Alpine Slide.
Our insurance company is handling the suit by the doctor.  It is
expected that our insurance will cover any damages.  At this time
it is impossible to estimate any possible loss.

     Another lawsuit may be filed by some airline stewardesses over
an incident at the Snow King Resort.  No suit is filed as of March
14, 2003.  Each stewardess has requested a settlement of $25,000.
Our insurance company has offered each $5,000 and is negotiating.
It is impossible to estimate any final damages.  The Teton County
Attorney may file charges against the employee involved with the
stewardess incident.

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, 2002.

                             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           .08
     Second Quarter                                       .03           .08
     Third Quarter                                        .05           .05
     Fourth Quarter                                      .045           .08

     2002
     First Quarter                                        .05           .08
     Second Quarter                                       .05           .08
     Third Quarter                                        .04           .05
     Fourth Quarter                                       .03           .08


     As of December 31, 2002, 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 10-KSB as Item 7.

Liquidity and Capital Resources

     As explained in Item 1 of this Annual Report on Form 10-KSB,
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 2003.

     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 consented to waive technical default for 2001.
Snow King Resort, Inc. paid a fee to the bank of $5,000 for its
noncompliance with the covenant.

     The proceeds from the sale of the Alphorn property were used
to pay on the mortgage in 2002.  The note was rewritten on March
15, 2002 to provide for a floating interest rate, reduced payments,
and a monthly deposit of $8,000 to a debt service reserve account.
The new note called for a principal payment of $350,000 on
September 15, 2002.  This provision was modified to a payment of
$150,000 which was paid in December.  The debt service reserve
account is included in restricted cash on the balance sheet.  At
March 15, 2003 we were in compliance with the bank covenants.  Also
please refer to Note 4 of the Financial Statements.

     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
2003.


     Snow King Resort is quite dependent on the airlines to bring
customers.  The fear of flying now that the war in Iraq has started
may have an effect on gross revenues.

     Management has begun having sprinklers and hard wired smoke
alarms installed in each room and hallway.  It is estimated to cost
approximately $500,000 and is to be completed in the spring of
2003.  This will require additional borrowing.

     Because of economic conditions and the Iraq war, if revenues
and additional borrowing are insufficient to cover cash needs,
valuable land could be sold.

Results of Operations

     2002 vs. 2001

     Overall - 2002 ended with a net gain of $1,077,925 compared to
a net loss of $536,320 in 2001.  This includes $1,496,455 gain on
the sale of property.

     Other revenue decreased from $15,350 in 2001 to $8,148 in
2002.  The decrease was in interest income.

     Oil and Gas Segment

     Operating income of the Oil and Gas Segment decreased from
$40,498 in 2001 to $27,123 in 2002.  Also refer to item 1. above.

     Snow King Resort Segment
                                            2002          2001
REVENUES:
     Rooms                             $ 4,633,809   $ 4,521,758
     Food and beverage                   1,771,624     1,808,103
     Telephone                              38,557        42,838
     Ski area                              858,094       741,648
     Alpine Slide                          420,282       429,620
     Condominiums                        1,916,136     1,899,402
     Other                                 132,947       112,968
       Total revenues from operations  $ 9,771,449   $ 9,556,337
COST OF GOODS SOLD                         647,626       674,978
GROSS PROFIT                           $ 9,123,823   $ 8,881,359

EXPENSES:
     Wages                             $ 3,211,328   $ 3,010,534
     Utilities                             402,761       398,558
     Taxes and benefits                    751,924       618,197
     Supplies                              536,806       647,665
     Repairs                               679,506       566,887
     Advertising                           304,389       405,279
     Office                                312,412       273,993
     Interest                              557,319       807,351
     Insurance                             561,792       532,858
     Leases                                 25,468        61,122
     Forest Service fees                    15,586        12,376
     Legal and consulting                   28,443        18,232
     Management and guarantor fees         206,058       202,422
     Condominium expense                 1,254,068     1,163,702
     Depreciation                          507,662       529,808
     Amortization                           28,332        28,332
     Provision for uncollectible
       accounts                             79,900       102,500
     Retirement plan contribution            7,172         8,522
     Abandoned sale costs                   32,048           -0-
       Total expenses                  $ 9,502,974   $ 9,388,338
     Operating income (loss)          (    379,151) (    506,979)
     Gain on sale of Alphorn lots        1,496,455           -0-

NET INCOME (LOSS) BEFORE PROVISION
 FOR INCOME TAXES                      $ 1,117,304 ($    506,979)
Provision for income taxes                 379,883           -0-

NET INCOME (LOSS)                      $   737,421 ($    506,979)
Income tax benefit of loss carryover       379,883           -0-

NET INCOME (LOSS)                      $ 1,117,304 ($    506,979)

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 (2002) - Schedule A                           F-8
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (2002) - Schedule A-1               F-9
     Schedule of Property, Equipment and Intangible
       Assets (2001) - Schedule B                           F-10
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (2001) - Schedule B-1               F-11
     Schedule of Property, Equipment and Intangible
       Assets (2000) - Schedule C                           F-12
     Schedule of Accumulated Depreciation, Depletion
       and Amortization (2000) - Schedule C-1               F-13

Notes to Consolidated Financial Statements          F-14 to F-28






                 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,
2002 and 2001, and the related consolidated statements of
shareholders' equity, operations, and cash flows, for the years
ended December 31, 2002, 2001 and 2000.  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,
2002 and 2001, and the results of their operations and cash flows
for the years ended December 31, 2002, 2001 and 2000, 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 10, 2003
                                   Riverton, Wyoming
































                               F-2

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                    DECEMBER 31, 2002 AND 2001
                              ASSETS
                                          2002          2001
CURRENT ASSETS:
  Cash                                $   307,271   $    262,655
  Accounts receivable (net of allowance
   for doubtful accounts of $12,757 in
   2002; $18,535 in 2001)                 297,501                  272,323
  Inventories                              55,430         51,708
  Prepaid expenses                        261,655        179,084
  Other prepaid expenses                   46,104         70,428
      Total current assets            $   967,961   $    836,198
PROPERTY AND EQUIPMENT:
  At cost net of accumulated
    depreciation of $6,114,690 and
    $5,792,445 in 2002 and 2001,
    respectively (Schedules A and B)  $ 8,908,204  $  9,254,166
OTHER ASSETS:
  Restricted cash                     $    34,614   $     20,446
  Account receivable - Snow King
    Resort Center, Inc. (Note 8 & 13)   1,583,780      1,566,232
  Allowance for doubtful receivable
    (Note 13)                        (  1,500,000) (   1,425,000)
  Leasehold interest, net of
    amortization (Note 9)                  37,201         58,393
  Other receivables - officer (Note 8)        -0-         10,000
  Other (Note 3)                           30,629         48,458
  Patronage capital, net of
    discount (Note 15)                    279,725        235,114
      Total other assets              $   465,949   $    513,643
TOTAL ASSETS                          $10,342,114   $ 10,604,007
          LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
  Accounts payable                    $   442,517   $    565,784
  Accrued expenses (Note 4)               527,530        508,538
  Advance deposits                        420,127        371,238
  Current maturity of debt (Note 5)       984,318        762,978
      Total current liabilities       $ 2,374,492   $  2,208,538
LONG-TERM LIABILITIES:
  Long-term debt (Note 5)             $ 7,133,356   $  8,639,127
  Fee payable - officer (Note 8)           90,000         90,000
      Total long-term liabilities     $ 7,223,356   $  8,729,127
MINORITY INTEREST IN SUBSIDIARY       $ 2,162,780   $  1,899,432
SHAREHOLDERS' EQUITY (DEFICIT):
  Common stock, $.05 par value,
    10,000,000 shares authorized,
    9,963,015 shares issued and
    outstanding at 12/31/02           $   401,201   $    401,201
  Capital in excess of par value        3,334,701      3,334,701
  Accumulated deficit                (  5,154,416) (   5,968,992)
      Total shareholders' (deficit)  ($ 1,418,514) ($  2,233,090)
TOTAL LIABILITIES AND
  SHAREHOLDERS EQUITY (DEFICIT)       $10,342,114   $ 10,604,007
          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, 2002, 2001 AND 2000


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

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)
2002 net
income         -0-      -0-          -0-    814,576      814,576

BALANCE,
12/31/02 9,963,015 $ 401,201 $ 3,334,701 ($5,154,416)($ 1,418,514)
























          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, 2002, 2001 AND 2000

                              2002          2001        2000
REVENUES:
  Snow King Resort        $ 9,768,035   $ 9,550,987  $ 9,956,641
  Oil and gas interests
    (Note 11)                  27,123        40,498       42,864
  Interest                      7,156        14,428       17,779
  Other                           992           922          -0-
  Gain on assets sold       1,496,455  (      6,720)         -0-
       Total revenues     $11,299,761   $ 9,600,115  $10,017,284

EXPENSES:
  Snow King Resort
    operating             $ 9,031,733   $ 8,650,343  $ 8,785,520
  Oil and gas interests        11,995        17,287       18,288
  Amortization                 28,332        28,332       28,332
  Depreciation                512,557       530,622      555,818
  Provision for doubtful
    accounts                    4,900         7,500        7,637
  Interest                    557,319       807,351      789,042
  Provision for Snow King
    Resort Center receivable
    collectibility             75,000        95,000       70,000
      Total expenses      $10,221,836   $10,136,435  $10,254,637

Net income (loss) before
  provision for income
  tax                     $ 1,077,925  ($   536,320)($   237,353)
Provision for income tax
  (Note 7)               (    366,495)          -0-          -0-
                          $   711,430  ($   536,320)($   237,353)

Benefit of tax loss
  carryovers (Note 7)         366,495           -0-          -0-
NET INCOME (LOSS)         $ 1,077,925  ($   536,320)($   237,353)
Minority interest in
 (net income) loss
  of subsidiary          (    263,349)      119,495       52,708
NET INCOME (LOSS)         $   814,576  ($   416,825)($   184,645)
INCOME (LOSS) PER COMMON
  SHARE (Computed on the
  weighted average number of
  shares outstanding for
  the year)               $     .0818  ($     .0418)($     .0185)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING       9,963,015     9,964,861    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, 2002, 2001 AND 2000

                               2002         2001         2000
INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
  Cash received from
    customers              $9,786,039   $ 9,478,697  $10,032,516
  Cash paid to suppliers
    and employees         ( 9,214,872) (  8,572,994)(  8,871,030)
  Interest received             7,156        14,428       17,779
  Interest and prepayment
    penalties             (   557,319) (    807,351)(    789,042)
  Income tax paid                 -0-           -0-          -0-
                                                 Net cash provided (used)
       by operations       $   21,004   $   112,780  $   390,223
Cash flows from investing
activities:
  (Payments to) decrease
    in restricted cash    ($   14,168) ($    14,643) $    11,745
  Purchase treasury stock         -0-  (        100)         -0-
  Proceeds of sales of
    Alphorn lots            1,496,455           -0-          -0-
  Sales and retirement
    of assets                 149,039           -0-          -0-
  Investment in related
    corporation           (       100) (         30)(        100)
  Capital expenditures    (   315,635) (    296,986)(    669,509)
  Investment in Snow King
   Center                 (    17,548) (     53,540)(     66,541)
  Collection of note
   receivable                  10,000           -0-          -0-
   Net cash provided
    (used) by investing
    activities             $1,308,043  ($   365,299)($   724,405)
Cash flows from financing
activities:
  Borrowing from banks
    and leasing companies  $1,244,947   $ 1,161,599  $ 1,235,553
  Principal payments to
    banks and leasing
    companies             ( 2,529,378) ( 1,026,481)  (   797,628)
  Net cash provided
    (used) by financing
    activities            ($1,284,431)  $   135,118  $   437,925
Net increase (decrease)
  in cash                  $   44,616  ($   117,401) $   103,743
Cash at beginning of year     262,655       380,056      276,313
Cash at end of year        $  307,271   $   262,655  $   380,056

     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, 2002, 2001 AND 2000


                               2002         2001         2000

RECONCILIATION OF NET INCOME
TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Net income (loss)          $   814,576   ($ 416,825)  ($ 184,645)
Adjustments to reconcile
  net income to net cash
  provided (used) by
  operating activities:
                                              Depreciation and
    amortization               540,889      558,954      584,150
                                              Increase (decrease) in
    advance deposits             48,889   (  119,037)   (   19,696)
  (Increase) decrease in
    accounts receivable   (     25,178)  (   25,515)      44,330
  (Increase) decrease in
    prepaid expenses      (     58,247)  (   46,314)       2,233
  Decrease (increase) in
    inventories           (      3,722)         664       14,369
  (Decrease) increase in
    accounts payable and
    accrued expenses       (    104,275)       141,066  (   50,738)
  Gain on Alphorn lots    (  1,496,455)          -0-         -0-
  Loss on investment               -0-         6,720         -0-
  Change in other
    receivables                 10,789        37,384  (   12,880)
  Provision for Snow King
   Resort Center
   receivable                   75,000        95,000      70,000
  Accrued interest -
    officer note                   -0-           800         800
  Increase in patronage
    capital               (     44,611) (        622)  (   4,992)
  Allocation of minority
    interest in subsidiary
    (loss) income               263,349 (    119,495)  (  52,708)
      Net cash provided
        by operations      $     21,004  $   112,780   $ 390,223








          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, 2002


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

PROPERTY AND
EQUIPMENT:
  Land           $ 2,175,460   $  37,563   $ 145,315 $ 2,067,708
  Mineral claims
    and leases           500         -0-         -0-         500
  Producing oil
    and gas
    interests        265,719         -0-         -0-     265,719
  Machinery and
    equipment        142,107         -0-         -0-     142,107
  Hotel building
    and
    improvements   7,733,039      85,529      82,818   7,735,750
  Hotel furniture
    & fixtures     4,729,786     192,543     111,219   4,811,110

                $ 15,046,611  $  315,635   $ 339,352 $15,022,894

Property and equipment                               $15,022,894
Accumulated depreciation (Schedule B-1)             (  6,114,690)

                                             Property and equipment net of
    accumulated depreciation                         $ 8,908,204

Amortizable Assets:

  Costs of
    acquiring
    ski shelter
    lease       $    124,938  $       -0-  $     -0- $   124,938
  Accumulated
    amortization                                    (     87,737)

       Net                                           $    37,201

  Prepaid loan
    fees        $     50,000  $       -0-  $     -0- $    50,000
  Accumulated
    amortization                                    (     27,390)

       Net                                           $    22,610

          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, 2002



                           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      107,556       4,886          -0-      112,442
  Hotel building
    and
    improvements 2,312,808     275,963       79,093    2,509,678
  Hotel furniture
    & fixtures   3,125,900     231,708      111,219    3,246,389

               $ 5,792,445   $ 512,557    $ 190,312 $  6,114,690

AMORTIZATION:
  Leasehold
    interest   $    66,545   $  21,192    $     -0- $     87,737

  Loan fees    $    20,250   $   7,140    $     -0- $     27,390















          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, 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-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, 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-11
                            Schedule C
          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-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, 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-13

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

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, 2002 AND 2001

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, for payment of property taxes, and to accumulate
funds for debt service in accordance with its debt agreement.

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 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 consisted 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, 2002 AND 2001

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 was ten years,
beginning in 1992. The agreement expired in 2002.

     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
$128,587 and $120,462 at December 31, 2002 and 2001, respectively,
for the employees of Snow King Resort, Inc.

Advertising:

     The Company's policy is to expense advertising costs as
incurred.  Advertising expenses for 2002 and 2001 were $304,389 and
$405,279, 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, 2002 and 2001, the Resort
had a liability for matching contributions of $7,172 and $8,522.


                               F-16


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

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:
                                                 2002      2001
     Account receivable-officer                $    -0-  $  3,000
     Investment in stock (Snow King Resort
       Center and other)                          5,512     5,412
     Prepaid loan fees, net of amortization      22,610    29,750
     Incorporation costs                          1,163     1,163
     Account receivable, Love Ridge
       Development                                1,344     9,133
                                               $ 30,629  $ 48,458

NOTE 4:  LIABILITIES:

     Accrued expenses consist of the following:

                                               2002       2001

     Accrued payroll                         $ 123,346  $  98,954
     Accrued vacation                          128,587    120,462
     Accrued interest                           21,782     47,584
     Payroll, sales and property taxes         143,998    101,695
     Profit sharing plan                         7,172      8,522
     Other                                     102,645    131,321
                                             $ 527,530  $ 508,538





                               F-17

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    DECEMBER 31, 2002 AND 2001

NOTE 5:  LONG AND SHORT TERM DEBT:
                                             Portion
2002:                 Interest             due within   Long term
             Security   rate     Balance    one year     portion
Leases:
Xerox Corp.
  Leases      Copiers  Various $       238   $     238 $      -0-

Notes Payable:
First Interst. Real
Bank, monthly  estate   Floating
payments of    furn/fixt   prime
$79,286        leases,     plus
               permits   1.12% $ 7,524,859   $ 391,503 $7,133,356

First Interst. Liquor   Floating
Bank, line of  license,  4.625%
credit, due    real est.,   at
12/15/03       leases and  12/31/02
               permits             380,000     380,000        -0-

A1 Credit
Ins. note,
monthly
payments
$30,986,
due 7/9/02  Unsecured   6.07%      212,577     212,577        -0-
      Total notes payable      $ 8,117,436   $ 984,080 $7,133,356

TOTAL LONG AND SHORT TERM DEBT $ 8,117,674   $ 984,318 $7,133,356

                                                            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-

                              F-18

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001


NOTE 5: LONG AND SHORT TERM DEBT: Continued:

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

     Snow King Resort, Inc. refinanced its ORIX mortgage with First
Interstate Bank of Casper, Wyoming on March 23, 1999 for
$9,370,000.  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.

     The proceeds from the sale of the Alphorn property were
applied to payments on the First Interstate Bank mortgage in 2002.
The note was rewritten on March 15, 2002 to provide for a floating
interest rate, reduced payments, and a monthly deposit of $8,000 to
a debt service reserve account.  The new note called for a
principal payment of $350,000 on September 15, 2002.  This
provision was modified to a payment of $150,000 which was paid in
December 2002.

     Principal payments due on the long and short term notes for
the next four years are as follows:

     2003                           $   984,080
     2004                               413,015
     2005                               435,710
     2006                             6,284,631

                                    $ 8,117,436

     Manuel B. and Deborah Lopez are guarantors on the debt to the
extent of one million dollars.  Snow King Resort pays them a
guarantor's fee 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, 2002 AND 2001

NOTE 5: LONG AND SHORT TERM DEBT; Continued:

Short term borrowings information:
                                       2002        2001

     Balance at end of year          $ 592,577   $ 493,074
     Range of interest rates      4.625%-6.69% 5.125%-8.5%
     Maximum outstanding             $ 741,671   $ 682,492
     Average outstanding,
       computed by weighted
       average of end of
       month balances                $ 409,546  $ 455,130
     Weighted average interest
       rate computed
       by total interest due,
       divided by average
       note balance                       4.8%       6.6%

     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 2002 or 2001.  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, 2002 or 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 2002 or 2001.  The
option expired April 13, 2002.

NOTE 7:  FEDERAL INCOME TAXES:

     Western Standard Corporation and its subsidiaries filed
consolidated income tax returns in 1993 and prior years.   Western
Standard's ownership in Snow King Resort, Inc. dropped below 80% in
1994.  Separate income tax returns for Snow King Resort, Inc. have
been filed since 1994.  Western Standard's net operating loss
carryover at December 31, 2002 is approximately $338,183, which
will begin to expire in 2003 if not used.
                               F-20

          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

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 $1,471,130 at
December 31, 2002.  Tip credit carryovers of approximately $24,000
have 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
have eliminated 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,
                                            2002        2001
     Net operating loss carryovers      $   615,166   $1,005,298
     Depreciation difference           (    238,165) (   207,922)
     Credit carryovers                        8,203       18,187
     Other                             (        387) (     2,352)
                                        $   384,817   $  813,211
     Less valuation allowance          (    384,817) (   813,211)
         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, or
profitable sale of its assets.

     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:
                                           2002        2001
     Tax at statutory rate               $ 366,495  ($182,349)
     Depreciation difference            (   30,243) (  57,659)
     Provision for Center collectibility    25,500     32,300
     Patronage capital discount              9,041      4,805


                               F-21


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 7:  FEDERAL INCOME TAXES:  Continued:

     Nondeductible expense                   2,590      3,924
     Loss on discarded assets                  150        101
     Other net                                 445      3,111
                                         $ 373,978  ($195,767)
     Valuation allowance/ effect of
       loss carryovers                  (  373,978)   195,767
     Net 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 $39,000 for 2002.  The taxable income
for Snow King Resort, Inc. for 2002 is approximately $1,082,000.
The federal tax return loss for 2001 was $29,000 for Western
Standard and Western Recreation; and a $551,000 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:

     Snow King Resort, Inc. 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,
2002, Snow King Resort, Inc. owed the management company $26,678 in
management fees.  Snow King Resort, Inc. incurred management fees
totaling $190,422 in 2001 and $194,058 in 2002.

     The management agreement expired in April 2002.  It was
extended at the same terms through December 31, 2002.  A
new agreement is being negotiated.

     An officer of Western Standard Corporation owes a note payable
to Western Standard which carries an interest rate of 7%.  This
note had a balance of $10,000 at December 31, 2001.  It was paid
off in December 2002.

     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

                               F-22


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 8: RELATED PARTY TRANSACTIONS: Continued:

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
these consolidated statements.  During 2002, Snow King Resort, Inc.
advanced $17,547 to Snow King Resort Center, Inc.  During 2001,
Snow King Resort, Inc. advanced $53,541 to Snow King Resort Center,
Inc.  The total amount receivable from Snow King Resort Center,
Inc. at December 31, 2002 is $1,583,780.  An allowance for
collectibility of $1,500,000 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
$95,000 in 2001 and $75,000 in 2002.

     There is no formal agreement between the Corporations to fund
the Center's operations.

     Snow King Resort Center, Inc. information:

                                     2002                2001

          Sales                  $  683,652          $  683,614
          Gross profit           $  231,946          $  200,745
          Net loss              ($   59,279)        ($   98,626)

          Total assets           $  100,506          $  140,927

          Liabilities            $   50,900          $   49,590
          Owed to Snow King
            Resort, Inc.          1,583,780           1,566,232
          Stockholders equity   ( 1,534,174)        ( 1,474,895)

          Total liabilities      $  100,506          $  140,927

     Love Ridge Development, LLC is a partnership formed to develop
Snow King Resort, Inc.'s properties and adjacent land owned by SK
Land Limited Liability Company.  Its major partners are also share-
holders in Snow King Resort, Inc.  Love Ridge is building
condominiums adjacent to Snow King Resort, Inc.  The condominiums
will be rented to Resort guests.

     Love Ridge Development, LLC purchased three of the Alphorn
lots from Snow King Resort, Inc. in 2002.  During 2002, Snow King
Resort, Inc. employees were used to ready the condominiums for
rental.  Love Ridge reimbursed Snow King Resort, Inc. for these
expenses in the amount of $65,627. $1,344 was unpaid at December
31, 2002.
                               F-23
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 9:  LEASEHOLD INTEREST:

     Snow King Resort, Inc. leases a ski shelter from the Town of
Jackson.   Snow King Resort Center, Inc. leases the skating rink
part of the building.  Costs of acquiring a leasehold of $42,538
are being amortized over the 30 year life of the original lease at
$1,418 per year.

     The lease called 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 additional lease cost.  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.  Supplemental rent is due when
revenues from ski lifts exceed certain levels.  Supplemental rents
have been less than $1,200 for several years.  Supplemental rent
due at December 31, 2002 is $324.

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 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.

     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'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
          2002                            $  5,892    $ 18,645

                               F-24
          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 11:  LEASES:

     Snow King Resort, Inc. acquired some equipment with 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 2002 and 2001:
                                           2002         2001

     Total lease-purchased assets        $ 263,545    $ 263,545
     Accumulated depreciation           (  229,206)  (  213,299)
           Net assets                    $  34,339    $  50,246

     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, 2002.

     Year ended December 31, 2003          $   238

     Principal amount of minimum
       lease payments                      $   238
     Current portion of principal
       amount                              $   238
     Long term portion of principal
       amount                                  $   -0-

NOTE 12:  CONTINGENT LIABILITIES AND COMMITMENTS:

     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 consented to waive the technical default for
2001.  The interest rate was adjusted to a floating rate at March
15, 2002 of the prime rate plus 1.125%.  Snow King Resort, Inc.
paid a fee to the bank of $5,000 for its noncompliance with the
covenant.

     At December 31, 2002, Snow King Resort, Inc. was in compliance
with its loan covenants.

     During 2003, Snow King Resort, Inc. plans to install a
sprinkler system in its hotel rooms.  Although the estimated cost
is not yet available, the expenditure is expected to be
substantial.

     Snow King Resort, Inc. has been sued by an individual involved
in an accident on the Alpine Slide.  The suit is being defended by
the insurance carrier.  The lawsuit is in the pretrial stage.  It
is impossible to estimate any possible range of loss that Snow King
Resort, Inc. may incur.


                               F-25


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 13:  LIQUIDITY:

     At December 31, 2002 and 2001, 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 $1,583,780 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.  An allowance of $1,500,000 has been established to reduce
this account receivable to its estimated realized value.  An
agreement to merge Snow King Resort, Inc. and Snow King Resort
Center, Inc. lapsed in 2002.

     Sale of Alphorn property:

     On March 20, 2002, Snow King Resort sold 3 lots of the Alphorn
property for $1,080,000 to an unrelated individual.  On March 28,
2002, Snow King Resort sold the remaining three lots of this
property to Love Ridge Development, LLC for $610,000.  Love Ridge
is a partnership, some of whose partners are shareholders in Snow
King Resort, Inc.  The sales price was established by an appraisal.
All of the net proceeds from both of these sales were applied to
the mortgage at First Interstate Bank.

     Attempted sale of Resort:

     In 2001 Snow King Resort, Inc. entered into an agreement to
obtain a buyer for the Resort properties.  The Corporation incurred
$32,048 in expenses connected with this proposed sale.  No buyer
was obtained.  The contract to find a buyer for the Resort
properties expired in 2002.

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:





                               F-26


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

NOTE 14: INDUSTRY SEGMENT INFORMATION: Continued:

                           2002           2001           2000
REVENUE - oil and gas
  interests            $    27,123   $     40,498   $     42,864
PRODUCTION COSTS      (     11,995) (      17,287) (      18,288)
OPERATING INCOME -
  oil and gas          $    15,128   $     23,211   $     24,576
IDENTIFIABLE ASSETS
  (at net book value)  $    28,716   $     28,716   $     28,716
CAPITAL EXPENDITURES   $       -0-   $        -0-   $        -0-
PROFIT OR (LOSS)      ($    39,379) ($     29,341) ($     13,732)

REVENUE - Snow King
  Hotel Segment        $ 11,267,904  $  9,556,337   $  9,964,724
OPERATING INCOME       $    714,171  $  1,158,512   $  1,149,571
DEPRECIATION           $    507,671  $    529,808   $    555,818
IDENTIFIABLE ASSETS
  (at net book value)  $ 10,211,303  $ 10,433,995   $ 10,784,284
CAPITAL EXPENDITURES   $    315,635  $    272,557   $    669,509
PROFIT OR (LOSS)       $  1,117,304 ($    506,979) ($    223,621)

     A reconciliation from the segment information to the
consolidated balances for net loss and assets is set forth below.
                           2002           2001           2000
Segment income
from operations:
  Oil and gas          $    15,128   $     23,211   $     24,576
  Snow King Hotel          714,171      1,158,512      1,149,571
  Other income               4,734          3,280          9,696
  Gain on assets sold    1,496,455            -0-            -0-
Expenses:
  Depreciation        (    512,557) (     530,622) (     555,818)
  Amortization        (     28,332) (      28,332) (      28,332)
  Interest            (    557,319) (     807,351) (     789,042)
  Other expenses      (     54,355) (     355,018) (      48,004)
Consolidated net
  income (loss)       ($ 1,077,925) ($    536,320) ($    237,353)
Segment assets:
  Oil and gas          $     28,716  $     28,716   $     28,716
  Snow King Hotel        10,211,303    10,433,995     10,784,284
  Cash                       77,157       101,429        146,281
  Property & equipment       20,988        25,873          2,258
  Other assets                3,950        13,994         21,741
Consolidated total
  assets               $ 10,342,114   $10,604,007   $ 10,983,280




                               F-27


          WESTERN STANDARD CORPORATION AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                    DECEMBER 31, 2002 AND 2001

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.

     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.

     Patronage Capital-Lower Valley Power and Light is as follows:

                                 Capital                  Net
                                Allocated    Discount    Value

      Allocations 1984-1999     $ 410,204   $ 205,562   $ 204,642
      1999 allocated in 2000       48,897
      Payment of 1985 & part
        of 1999                (   17,283)
      Early payment discount
        for 1999 allocation    (    7,552)
      Amortization of discount             (    5,789)
        12/31/00 balances       $ 434,266   $ 199,773   $ 234,493

      2000 allocated in 2001       55,935
      Payment of 1985 & 1986   (   27,619)
      Early payment discount
        for 2000 allocation    (   45,182)
      Payment of 2000
        allocation             (   10,753)
      Amortization of discount             (   28,240)
        12/31/01 balances       $ 406,647   $ 171,533   $ 235,114

      2001 allocated in 2002    $  48,326
      Payment of 2001
        allocation             (   18,021)
      Early payment discount
        for 2001 allocation    (   30,305)
      Payment of 1987 capital  (   12,734)
      Amortization of discount             (   57,345)
        12/31/02 balances       $ 393,913   $ 114,188   $ 279,725





                               F-28

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 85, 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 59, 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 38 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, 2002 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
years ended December 31, 2002, 2001 and 2000.

                    Summary Compensation Table

                                          Other         All
Name and         Fiscal  Annual      Annual      Other
Principal Position Year   Salary   Compensation  Compensation
Stanford E. Clark   2002   $28,800       $  600      $ 49,670 (1)
Chief Executive
  Officer           2001   $28,800       $  600      $ 36,941 (1)
                    2000   $28,800       $  600      $ 46,466 (1)

Manuel B. Lopez     2002   $36,000       $6,359 (2)  $288,704 (3)
Vice President of
  WSC and Chief
  Executive Officer
  of SKRI           2001   $36,000       $7,028 (2)  $279,689 (4)
                    2000   $36,000       $8,629 (2)  $275,396 (5)
  _______________

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

(2)  Incidental fringe benefits.

(3)  Includes (i) $118,031 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)
     $158,153 in fees and commissions paid to Mr. Lopez by SKRMI,
     and $600 in Director's fees paid by WSC.

(4)  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 ORIX loan and 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.

(5)  Includes (i) $116,174 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)
     $146,622 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, 2003, 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, 2003,
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 managed 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 expired 3/31/02 but was verbally extended to 12/31/02.
Mr. Clark will no longer draw any compensation from SKRMI.  Mr.
Lopez is negotiating a working agreement with SKRI Board of
Directors.

     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.  This note and interest
was paid to Westan in full in December 2002.

     On April 5, 1991, Snow King Partnership 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,
2002, the outstanding principal amount of such line of credit was
$380,000.  For this guarantee and the guarantee of $1,000,000 of
the hotel mortgage, Mr. and Mrs. Lopez were paid $1,000 per month
through December 2002.  Effective January 1, 2003, Mr. and Mrs.
Lopez guarantee the amounts listed above but the $1,000 per month
payment was discontinued.  During the past several years, Messrs.
Clark and Lopez have each been personally liable for certain of
SKI's borrowings.

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
      99.1 Certification of CEO
      99.2 Certification of CFO
_______________

(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.  The voting trust expired March 12, 2002.

(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).
               This agreement expired March 12, 2002.

     -         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, 2002.

                         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
                                        permit 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.

Item 14.  Controls and Procedures

     Management of the Company recognizes their responsibility for
maintaining effective and efficient internal controls and
disclosure controls (the controls and procedures by which the
Company ensures that information disclosed in annual and quarterly
reports filed with the Securities and Exchange Commission ("SEC")
is accurately processed, summarized and reported within the
required time period).  The Company has procedures in place for
gathering the information that is needed to enable the Company to
file required reports with the SEC, The Company's president is
responsible for reviewing all quarterly and annual SEC reports.

     Under the supervision and with the participation of
management, including the Chief Executive Officer and Chief
Financial Officer, the Company conducted an evaluation of its
disclosure controls and procedures, as such term is defined under
Rule 13a-14(c) promulgated under the Securities Exchange Act of
1934, as amended, within 90 days of the filing of this report.
Based on the evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Company's disclosure controls
and procedures are effective.

     There have been no significant changes (including corrective
actions with regard to significant deficiencies or material
weaknesses) in the Company's internal controls or in other factors
that could significantly affect these controls subsequent to the
date of the evaluation referenced above.


                            SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                   WESTERN STANDARD CORPORATION

Date: March 21, 2003               By:/s/ Stanford E. Clark
                                      Stanford E. Clark, President



In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.

Date:  March 21, 2003              /s/ Stanford E. Clark
                                   Stanford E. Clark
                                   President, Treasurer (Principal
                                   Executive, Financial and
                                   Accounting Officer) Comptroller
                                   and Director


Certifications

I, Stanford E. Clark, certify that:

  1.  I have review this annual report on Form 10-KSB of Western
Standard Corporation;

  2.  Based on my knowledge, this annual report does not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report.

  3.  Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this annual report;

 4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in the Exchange Act Rules 13a-14 and
15d-14) for the registrant and have:

     (a) designed such disclosure controls and procedures to ensure
        that material information relating to the registrant,
        including its consolidated subsidiaries, is made known to
        us by others within those entities, particularly during
        the period in which this annual report is being prepared;

     (b) evaluated the effectiveness of the registrant's disclosure
        controls and procedures as of a date within 90 days prior
        to the filing date of this annual report (the "Evaluation
        Date"); and

     (c) presented in this annual report our conclusions about the
        effectiveness of the disclosure controls and procedures
        based on our evaluation as of the Evaluation Date;

  5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent functions):

     (a) all significant deficiencies in the design or operation of
        internal controls which could adversely affect the
        registrant's ability to record, process, summarize and
        report financial data and have identified for the
        registrant's auditors any material weaknesses in internal
        controls; and

    (b) any fraud, whether or not material, that involves
        management or other employees who have a significant role
        in the registrant's internal controls; and

  6. The registrant's other certifying officers and I have
indicated in this annual report whether there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.



Date: March 21, 2003             By:/s/ Stanford E. Clark
                                    Stanford E. Clark, President

Certifications

I, Stanford E. Clark, certify that:

  1.  I have review this annual report on Form 10-KSB of Western
Standard Corporation;

  2.  Based on my knowledge, this annual report does not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading
with respect to the period covered by this annual report.

  3.  Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the
periods presented in this annual report;

 4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in the Exchange Act Rules 13a-14 and
15d-14) for the registrant and have:

     (a) designed such disclosure controls and procedures to ensure
        that material information relating to the registrant,
        including its consolidated subsidiaries, is made known to
        us by others within those entities, particularly during
        the period in which this annual report is being prepared;

     (b) evaluated the effectiveness of the registrant's disclosure
        controls and procedures as of a date within 90 days prior
        to the filing date of this annual report (the "Evaluation
        Date"); and

     (c) presented in this annual report our conclusions about the
        effectiveness of the disclosure controls and procedures
        based on our evaluation as of the Evaluation Date;

  5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent functions):

     (a) all significant deficiencies in the design or operation of
        internal controls which could adversely affect the
        registrant's ability to record, process, summarize and
        report financial data and have identified for the
        registrant's auditors any material weaknesses in internal
        controls; and

    (b) any fraud, whether or not material, that involves
        management or other employees who have a significant role
        in the registrant's internal controls; and

  6. The registrant's other certifying officers and I have
indicated in this annual report whether there were significant
changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.



Date: March 21, 2003             By:/s/ Stanford E. Clark
                                     Stanford E. Clark,
                                     Principal Financial and
                                     Accounting Officer



Exhibit 99.1

            Certification of Chief Executive Officer
   of Western Standard Corporation Pursuant to 18 U.S.C. 1350

     I, Stanford E. Clark, certify that:

     In connection with the Annual Report on Form 10-KSB of Western
Standard Corporation (the "Company") for the year ended December
31, 2002 as filed with the Securities and Exchange Commission on
the date hereof (the "Report"), I, Stanford E. Clark, Chief
Executive Officer of the Company, certify, pursuant to 18 U.S.C.
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that:

     1.  The Report fully complies with the requirements of Section
         13(a) or 15(d) of the Securities Exchange Act of 1934, as
         amended; and

     2.  The information contained in the Report fairly presents,
         in all material respects, the financial condition and
         results of operations of the Company.



                                  /s/ Stanford E. Clark
                                  Chief Executive Officer
                                  Date: March 21, 2003

Exhibit 99.2

            Certification of Chief Financial Officer
   of Western Standard Corporation Pursuant to 18 U.S.C. 1350

     I, Stanford E. Clark, certify that:

     In connection with the Annual Report on Form 10-KSB of Western
Standard Corporation (the "Company") for the year ended December
31, 2002 as filed with the Securities and Exchange Commission on
the date hereof (the "Report"), I, Stanford E. Clark, Chief
Financial Officer of the Company, certify, pursuant to 18 U.S.C.
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that:

     1.  The Report fully complies with the requirements of Section
         13(a) or 15(d) of the Securities Exchange Act of 1934, as
         amended; and

     2.  The information contained in the Report fairly presents,
         in all material respects, the financial condition and
         results of operations of the Company.



                                  /s/ Stanford E. Clark
                                  Chief Financial Officer
                                  Date: March 21, 2003