UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

  [X]   QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15(d) OF THE  SECURITIES
        EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999

        TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
        EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM        TO
                                                            -------   -------

                            ALTAIR INTERNATIONAL INC.
              -----------------------------------------------------
             (Exact name of registrant as specified in its charter)

         Province of
          Ontario,
           Canada                      1-12497                      None
  ---------------------------    ---------------------       -------------------
 (State or other jurisdiction    (Commission File No,)         (IRS Employer
     of incorporation)                                       Identification No.)




                         1725 Sheridan Avenue, Suite 140
                               Cody, Wyoming 82414
        -----------------------------------------------------------------
          (Address of principal executive offices, including zip code)

       Registrant's telephone number, including area code: (307) 587-8245






        Indicate by check mark whether the  registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. YES [X]     NO [ ].


   As of June 30, 1999, the registrant had 15,424,915 Common Shares outstanding.

<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.
<TABLE>
                            ALTAIR INTERNATIONAL INC.
                           CONSOLIDATED BALANCE SHEETS
                      (Expressed in United States Dollars)
<CAPTION>

                                                                June 30,     December 31,
                                                                 1999          1998
                                                             -----------    ----------
                                                              unaudited)     (audited)
                            ASSETS
Current
<S>                                                          <C>            <C>
     Cash and short-term investments                         $ 3,381,263    $3,100,577
     Other current assets                                        115,595       130,642
                                                             -----------    ----------
                                                               3,496,858     3,231,219

Capital
     Office equipment, vehicles, jigs and testing
          equipment  (Cost, net of amortization)                 643,215       462,417

Centrifugal jig patents and related expenditures
     (Cost, net of amortization)                               3,449,662     3,609,024

Mineral properties and related deferred exploration
     expenditures                                              1,715,725     1,399,802
Goodwill, net                                                      9,290         9,590
                                                             -----------    ----------
                         Total Assets                        $ 9,314,750    $8,712,052
                                                             ===========    ==========

                          LIABILITIES
Current
     Accounts payable and accrued liabilities                $    79,207    $  165,979
     Current portion of notes payable                             67,442        73,533
                                                             -----------    ----------
                       Total Liabilities                         146,649       239,512
                                                             -----------    ----------

                     SHAREHOLDERS' EQUITY
Capital stock issued
     15,424,915 common shares at June 30, 1999; 15,174,915
          shares at December 31, 1998                         18,212,463    16,462,463
                                                             -----------    ----------
Contributed Surplus                                             655,098       655,098
                                                             -----------    ----------
Deficit
     Balance, beginning of period                             (8,645,021)   (6,303,879)
     Accretion of equity element of convertible debentures          --        (144,801)
     Premium on conversion of convertible debentures                --        (244,915)
     Convertible debenture issuance costs                           --         (21,887)
     Capital stock issuance costs                                (87,500)         --
     Net loss for the period                                    (966,939)   (1,929,539)
                                                             -----------    ----------
     Balance, end of period                                   (9,699,460)   (8,645,021)
                                                             -----------    ----------
                  Total Shareholders' Equity                   9,168,101     8,472,540
                                                             -----------    ----------

          Total Liabilities and Shareholders' Equity         $ 9,314,750    $8,712,052
                                                             ===========    ==========
</TABLE>

                                       2
<PAGE>


<TABLE>
                            ALTAIR INTERNATIONAL INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (Expressed in United States Dollars)
                                   (Unaudited)
<CAPTION>
                                                Three Months Ended                Six Months Ended
                                                    June 30,                         June 30,
                                         -------------------------------  ------------------------------
                                                1999           1998           1999            1998
                                         --------------- ---------------  --------------  --------------
Operating Expenses
<S>                                       <C>            <C>            <C>            <C>
     Testing, research and development    $    62,159    $    66,641    $   142,096    $   133,691
     Wages and administration                 132,655         54,491        215,702         82,261
     Professional fees                         29,192         93,529         55,524        133,144
     Shareholder relations                     72,820         41,946        114,087         64,842
     Shareholders' meetings and reports        59,417         84,883         80,370        108,772
     General and office                        46,209         27,310         75,603         43,177
     Travel                                    36,659         21,959         53,877         34,046
     Occupancy costs                           17,451         18,001         34,702         34,552
     Stock exchange fees                         --             (299)        18,505         78,675
     Insurance                                 14,092         19,881         29,292         35,575
     Government fees and taxes                 (6,564)        20,132         14,116         23,038
     Loss (Gain) on foreign exchange           (2,270)         1,251         (3,375)         7,722
     Transfer agent's fees                        805          3,184          1,323          4,705
     Corporate services                         2,133          3,129          4,229          5,244
     Bank charges                                 410            613            587          1,325
     Loss on disposal of fixed assets            --             --             --            4,417
     Amortization                             105,341        166,652        204,182        319,377
                                          -----------    -----------    -----------    -----------
                                              570,509        623,303      1,040,820      1,114,563
Interest expense                                1,966         14,720          1,966         26,536
Interest income                               (43,605)       (98,986)       (75,847)      (218,658)
                                          -----------    -----------    -----------    -----------
Net loss for the period                   $   528,870    $   539,037    $   966,939    $   922,441
                                          ===========    ===========    ===========    ===========
Basic loss per share                      $      0.03    $      0.04    $      0.06    $      0.06
                                          ===========    ===========    ===========    ===========

</TABLE>


                                       3
<PAGE>

<TABLE>
                            ALTAIR INTERNATIONAL INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (Expressed in United States Dollars)
                                   (Unaudited)
<CAPTION>
                                                                    Six Months Ended
                                                                        June 30,
                                                          ---------------------------------
                                                                 1999           1998
                                                             -----------    ----------

<S>                                                          <C>            <C>
Cash flows from operating activities
     Net loss for the period                                 $  (966,939)   $  (922,441)
     Adjustment to reconcile net loss for the period
       to net cash (used):
               Amortization                                      204,182        319,377
               Interest on convertible debentures                   --           35,594
               Loss on disposal of fixed assets                     --            4,417
                                                             -----------    -----------
                                                                (762,757)      (563,053)
     Changes in assets and liabilities:
          Other current assets                                    15,047         22,312
          Accounts payable and accrued liabilities               (86,772)       (80,953)
                                                             -----------    -----------

Net cash used in operating activities                           (834,482)      (621,694)
                                                             -----------    -----------

Cash flows from investing activities
     Purchase of mineral properties and related
          deferred exploration expenditures                     (315,923)      (295,859)

     Purchase of capital assets                                 (223,469)       (18,593)
     Purchase of centrifugal jig patents and related
          expenditures                                            (1,849)       (40,097)
                                                             -----------    -----------

Net cash used in investing activities                           (541,241)      (354,549)
                                                             -----------    -----------

Cash flows from financing activities
     Issuance of common shares for cash                        1,750,000        113,664
     Payment of notes payable                                     (6,091)      (206,888)
     Convertible debenture issuance costs                           --          (22,702)
     Capital stock issuance costs                                (87,500)          --
                                                             -----------    -----------

Net cash provided by (used in) financing activities            1,656,409       (115,926)
                                                             -----------    -----------

Net increase (decrease) in cash and short-term investments       280,686     (1,092,169)

Cash and short-term investments, beginning of period           3,100,577      8,161,770
                                                             -----------    -----------

Cash and short-term investments, end of period               $ 3,381,263    $ 7,069,601
                                                             ===========    ===========
</TABLE>


                                       4
<PAGE>

                           ALTAIR INTERNATIONAL INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

Note 1.  Basis of Preparation of Financial Statements

        These unaudited  interim  financial  statements of Altair  International
Inc. and its  subsidiaries  (collectively,  the "Company") have been prepared in
accordance  with the rules and  regulations of the United States  Securities and
Exchange  Commission (the  "Commission").  Such rules and regulations  allow the
omission of certain  information and footnote  disclosures  normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles,  so long as the  statements  are not  misleading.  In the opinion of
Company  management,  these financial  statements and accompanying notes contain
all adjustments  (consisting of only normal recurring  adjustments) necessary to
present fairly the financial  position and results of operations for the periods
shown. These interim financial statements should be read in conjunction with the
audited financial statements and notes thereto contained in the Company's Annual
Report  filed on Form 10-K for the year ended  December  31, 1998 filed with the
Commission on March 18, 1999.

        The Company is an Ontario corporation and, in the past, has prepared its
interim and year-end financial  statements in accordance with generally accepted
accounting  principles  in  Canada  ("Canadian  GAAP").  Because  the  Company's
operations are centered in the United States, the Company  determined  effective
January 1, 1997 that its functional  currency is the U.S.  Dollar and determined
effective  January  1, 1998 to  prepare  its  interim  financial  statements  in
accordance with accounting  principles  generally  accepted in the United States
("U.S. GAAP"). Accordingly, the foregoing unaudited interim financial statements
are denominated in U.S. Dollars and presented in accordance with U.S. GAAP.

        The results of operations  for the  three-month  and  six-month  periods
ended June 30, 1999 are not necessarily indicative of the results to be expected
for the full year.



Note 2.  Capital Stock

        During the three months ended June 30, 1999, options to purchase 285,000
common  shares of the Company  ("Common  Shares")  were issued to employees  and
other service  providers at prices equal to the market price on the Nasdaq Stock
Market on the day prior to the date of  issuance.  During  the same  period,  no
options  were  exercised.  As of June 30,  1999,  options to purchase  2,265,000
Common Shares were outstanding.


                                       5
<PAGE>


Note 3.  Development Stage Company

        As of June 30, 1999, the Company would be characterized as a development
stage enterprise under Statement of Financial  Accounting Standards No. 7 ("SFAS
7").  The  following  is  a  summary  of  the  deficit  accumulated  during  the
development stage prepared in accordance with SFAS 7:

                                                         Accumulated deficit
                                                             during the
                                                          development stage
                                                       -----------------------

Professional fees                                          $ 1,407,737
Salaries and wages                                           2,087,931
Shareholders' expenses                                       1,072,108
Office and general                                           2,123,645
Loss on sale of mining claims                                  101,047
Amortization                                                 1,741,734
Interest on long-term debt                                      97,001
Write off of mineral properties and related
     deferred exploration expenditures                       1,292,354
Write off of organization costs                                  8,563
                                                           -----------
                                                             9,932,120
Less:
     Interest income                                          (522,456)
     Gain on sale of marketable securities                     (35,773)
     Lease payments                                           (143,754)
     Gain on forgiveness of debt                              (728,531)
     Option payments                                           (70,906)
                                                           -----------
Total accumulated loss                                       8,430,700
Convertible debenture costs                                    537,731
Share issue costs                                              148,057
Accretion of equity element of convertible debentures          144,801
Premium on conversion of convertible debentures                244,915
Premium on redemption of convertible debentures                193,256
                                                           -----------
Accumulated deficit, June 30, 1999                         $ 9,699,460
                                                           ===========

                                       6
<PAGE>



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

        The  following  discussion   summarizes  the  material  changes  in  the
Company's  financial  condition  between December 31, 1998 and June 30, 1999 and
the material changes in the results of operations and financial condition of the
Company  between the three- and  six-month  periods ended June 30, 1999 and June
30,  1998.  This  discussion  should be read in  conjunction  with  Management's
Discussion  and  Analysis  of  Financial  Condition  and  Results of  Operations
included in the Company's Annual Report on Form 10-K for the year ended December
31, 1998.


Results of Operations

        The Company has earned no operating  revenues to date.  Basic net losses
totaled  $966,939  ($.06 per share) for the six months  ended June 30,  1999 and
$922,441  ($.06 per share)  during the same  period of 1998.  Principal  factors
contributing  to the losses  during  these  periods  were the absence of revenue
together with the incurrence of operating expenses.

        Six-Month Periods Ended June 30, 1999 and 1998.  Operating  expenses for
the six months  ended June 30,  1999  decreased  by $73,743  from the  six-month
period ended June 30, 1998.  Stock  exchange  fees were a  contributing  factor,
decreasing  by  $60,170  from the same  period in 1998.  In  January  1998,  the
Company's  common shares were  initially  listed on the Nasdaq  National  Market
System and certain  initial  listing fees were  incurred.  Similar fees were not
incurred  during  the six months  ended  June 30,  1999.  In  addition  to this,
professional  fees declined by $77,620,  principally  due to a decrease in legal
fees  associated  with  external  financing  and  regulatory  compliance,  and a
decrease in consulting  fees related to external  financing.  Also,  the Company
experienced  a  decrease  in  amortization  of  $115,195  caused  by a  two-year
extension in the life of the centrifugal jig patents.  Amortization  expense has
been reduced to account for the longer lives of the patents.

        These  decreases in expense were partially  offset by increases in other
expense categories.  Wages and administration expense increased by $133,441 over
the same period in 1998 due to the  addition of five new  employees  in the Reno
office  which  occurred  in  February,  April  and  July,  1998  and  May  1999.
Shareholder  relations  expenses  increased  by $49,245  over the same period in
1998, as the Company has increased its efforts to develop and maintain  investor
contacts.  General and office expenses  increased by $32,426 over the comparable
period of 1998 due  primarily  to the  addition of the new  employees  described
above.

        Interest  income for the six-month  period ended June 30, 1999 decreased
by $142,811 from the same period in 1998 due to a decrease in the amount of cash
invested in temporary  investments  following  the  redemption  of the Company's
convertible debentures in August 1998.

 Three-Month  Periods Ended June 30, 1999 and 1998.  Operating  expenses for the
three months ended June 30, 1999 decreased by $52,794 from the comparable period
of 1998.  This decrease was  primarily the result of a decrease in  Professional
fees  by  $64,337,  which  decrease  was  principally  due to the  existence  of
significant external financial  transactions during the three-month period ended
June 30, 1998 and the absence of any such transaction,  and associated legal and
consulting fees, during the three-month period ended June 30, 1999. In addition,
the  Company  experienced  a decrease  in  amortization  of $61,311  caused by a
two-year extension in the life of the centrifugal jig patents.

        These decreases in expense between the three-month period ended June 30,
1998 and the  three-month  period ended June 30, 1999 were  partially  offset by
increases in other expense  categories,  principally  wages and  administration,
which  increased  by $78,164 over the same period in 1998 due to the addition of
three new  employees  in the Reno office  which  occurred in July,  1998 and May
1999.

        Interest income for the three-month period ended June 30, 1999 decreased
by $55,381  from the same period in 1998 due to a decrease in the amount of cash
invested in temporary  investments  following  the  redemption  of the Company's
convertible debentures in August 1998.


                                       7
<PAGE>

Liquidity and Capital Resources

        The Company has financed its operations since inception primarily by the
issuance of equity  securities and convertible debt (common shares,  convertible
debentures,  and options and warrants to purchase common shares) with cumulative
aggregate net proceeds of $18,867,561 as of June 30, 1999. The Company  received
cash proceeds of $1,662,500  from sales of common shares and warrants during the
first six months of 1999.

        The Company has earned no revenues and has incurred recurring losses. At
December 31, 1998 the Company's accumulated deficit was $8,645,021.  The deficit
increased by $1,054,439 to $9,699,460  during the first six months of 1999,  due
to the net loss for the period of $966,939 and capital stock  issuance  costs of
$87,500.

        The  Company  currently   maintains  working  capital  which  management
believes will be sufficient for the Company's  needs through the end of the 1999
fiscal  year  at  the  current  level  of  operations.  However,  the  Company's
exploration and development  program may result in business  opportunities  that
require  additional  capital resources for development of mineral properties and
construction  of Jigs.  When and if such capital  resources  are  required,  the
Company  intends to assess equity and/or debt financing  sources.  Nevertheless,
there can be no  assurance  that the  Company  will be able to continue to raise
capital  to fund its  long-term  capital  requirements.  At June 30,  1999,  the
Company had $3,381,263 in cash and short-term  investments available to meet its
near-term development and operating needs.

        The  Company  continues  to use its  working  capital  to  invest in the
testing and development of the Jig and to invest in mineral properties  suitable
for development and processing with the Jig. In addition,  the Company has built
three  Series  30 Jigs to be used  for  bulk  sample  testing  at the  Company's
Tennessee mineral property, or for potential commercial installation. During the
first six months of 1999,  the Company  invested  $83,578 in  development of the
Jig,  $315,923  in the  exploration  of its  Tennessee  and  California  mineral
properties, and $187,176 in construction of additional Jigs.

Forward-Looking Statements

        This Quarterly Report on Form 10-Q contains  forward-looking  statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the  Securities  Exchange Act of 1934, as amended.  Statements in
this  report  regarding  the  sufficiency  of  the  Company's  working  capital,
development  of the Jig or any mineral  properties,  and any future  acquisition
activities are forward-looking statements.  Words such as "expects",  "intends",
"believes", "anticipates" and "likely" also identify forward-looking statements.
Actual results could differ  materially  from those  anticipated for a number of
reasons,  including,  among others, the failure of the Jig to prove economically
attractive  to end  users,  the  development  of a  substitute  for the Jig by a
competitor,  the  unforeseen  need for  and/or  inability  to raise  capital  to
complete testing and development of the Tennessee mineral property,  the Jig, or
other ongoing or new projects.  Risk factors,  cautionary  statements  and other
conditions  that could  cause  actual  results to differ  are  contained  in the
Company's  filings with the  Securities and Exchange  Commission,  including the
Company's Annual Report on Form 10-K for the year ended December 31, 1998.


                                       8
<PAGE>

                           PART II - OTHER INFORMATION


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

        The Company held an Annual Meeting of  Shareholders  on June 10, 1999 at
which the Company's  shareholders  considered  and voted as follows on the items
described below:

        1. The  shareholders  of the  Company  considered  whether  to elect the
following  persons as  directors  of the  Company,  each to serve until the next
annual meeting of shareholders of the Company and until his respective successor
shall have been duly elected and shall qualify:
<TABLE>
<CAPTION>
          Name of Nominee           Votes For       Votes Withheld/Abstentions       Broker Non-Votes
          <S>                       <C>                       <C>                           <C>
          William Long              11,951,990                99,789                        -0-
          James Golla               11,951,990                99,789                        -0-
          George Hartman            11,951,790                99,989                        -0-
          Robert Sheldon            11,951,790                99,989                        -0-
</TABLE>


        2.  The  shareholders  of the  Company  considered  whether  to  appoint
McGovern,  Hurley, Cunningham as auditors of the Company and authorize the Board
of  Directors to fix their  remuneration.  There were  11,931,596  votes cast in
favor, no votes cast against, 120,183 abstentions, and no broker non-votes.


Item 6.  Exhibits and Reports on Form 8-K

         (a) See Exhibit Index attached hereto.

         (b) No reports on Form 8-K have been filed during the second quarter of
             1999.



                                       9
<PAGE>

                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                            Altair International Inc.



       August 10, 1999            By: /s/ William P.Long
       ---------------            ----------------------------------------------
           Date                       William P.Long, President



       August 10, 1999            By: /s/ C. Patrick Costin
       ---------------            ----------------------------------------------
           Date                       C. Patrick Costin,  Vice-President
                                     (Principal Financial or Accounting Officer)


                                       10
<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>

                  Exhibit                                                                 Incorporated     Filed
                     No.                               Exhibit                            by Reference    Herewith
                  ----------   --------------------------------------------------------- --------------  -----------
                  <S>               <C>                                                        <C>           <C>
                  3.1          Articles of Incorporation of the Registrant                     (1)
                  3.2          Amendment to Articles of Incorporation of the                   (2)
                               Registrant dated November 6, 1996
                  3.3          Bylaws of the Registrant                                        (1)
                  4.1          Form of Common Stock Certificate                                (1)
                  4.2          Form of Warrant (related to Convertible Debentures)             (3)
                  4.3          Form of Series J Warrant
                                                                                               (4)
                  27           Financial Data Schedule                                                       (5)

-----------------------
</TABLE>


(1)  Incorporated  by  reference to  Registration  Statement on Form 10 SB filed
     with the Commission on November 25, 1996.

(2)  Incorporated by reference to Amendment No. 1 to  Registration  Statement on
     Form 10 filed with the Commission on December 23, 1996.

(3)  Incorporated  by reference to the Current Report on Form 8-K filed with the
     Commission  on January 13, 1998,  as amended by Amendment  No. 1 to Current
     Report on Form 8-K/A filed on January 21, 1998.

(4)  Incorporated  by reference to the Quarterly  Report on Form 10-Q filed with
     the Commission on May 5, 1999.

(5)  Filed herewith.


                                       11