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                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 MARCH 31, 1998

[_] 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 March 31, 1998, the  registrant  had 14,787,180  shares of Common
Stock outstanding.




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<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.
<TABLE>
                            ALTAIR INTERNATIONAL INC.
                           CONSOLIDATED BALANCE SHEETS
                      (Expressed in United States Dollars)
  <CAPTION>
                                                                                             March 31,             December 31,
                                                                                               1998                   1997
                                                                                           (unaudited)              (audited)
                                                                                        ------------------     ----------------

                                                                   ASSETS

Current
<S>                                                                                     <C>                    <C>             
 Cash and short-term investments                                                        $        7,718,442     $      8,161,770
 Advances and accounts receivable                                                                   22,390               31,193
                                                                                        ------------------     ----------------

                                                                                                 7,740,832            8,192,963

Capital
 Office equipment, vehicles, testing and mining
 equipment.  (Cost, net of amortization)                                                           366,343              397,723

Centrifugal jig patents and related expenditures
 (Cost, net of amortization)                                                                     3,824,465            3,918,378

Mineral properties and related deferred
 exploration expenditures                                                                          732,998              606,551

Goodwill, net                                                                                       10,189               10,189
                                                                                        ------------------     ----------------

Total Assets                                                                            $       12,674,827     $     13,125,804
                                                                                        ==================     ================

                                                                 LIABILITIES

Current
 Accounts payable and accrued liabilities                                               $          259,232     $        227,439
 Current portion of notes payable                                                                   52,903              253,890
 Current portion of convertible debentures-liability
  element                                                                                          231,481              231,481
                                                                                        ------------------     ----------------
                                                                                                   543,616              712,810

Notes payable                                                                                           --                5,901

Convertible debentures--liability element                                                          613,110              596,550
                                                                                        ------------------     ----------------

Total Liabilities                                                                                1,156,726            1,315,261
                                                                                        ------------------     ----------------

                                                            SHAREHOLDERS' EQUITY

Capital stock issued
 14,787,180 common shares at March 31, 1998;
 15,492,745 shares at December 31, 1997                                                        14,056,117           13,942,453
                                                                                        ------------------     ----------------

Convertible Debentures--equity element                                                             613,110              596,550
                                                                                        ------------------     ----------------

Deficit
 Balance, beginning of period                                                                   (6,303,879)          (3,956,564)

 Accretion of equity element of convertible
     debentures                                                                                    (73,503)                  --

 Convertible debenture issuance costs                                                              (22,702)            (515,844)

 Net loss for period                                                                              (383,404)          (1,831,471)
                                                                                        ------------------     ----------------

 Balance, end of period                                                                         (6,783,488)          (6,303,879)
                                                                                        ------------------     ----------------

Total Shareholders' Equity                                                                      11,518,101           11,810,543
                                                                                        ------------------     ----------------

Total Shareholders' Equity and Liabilities                                              $       12,674,827     $     13,125,804
                                                                                        ==================     ================
</TABLE>
                                                        ii
<PAGE>

<TABLE>


                            ALTAIR INTERNATIONAL INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                      (Expresses in United States Dollars)
                                   (Unaudited)


<CAPTION>


                                                                                             Three Months Ended
                                                                                                    March 31,
                                                                                     -------------------------------------
                                                                                             1998              1997
                                                                                             ----              ----



CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                                      <C>                  <C>      
Net loss for the period                                                              $   (383,404)         $  (413,147)
             Adjustments to reconcile net loss for the period to
             net cash (used):
             Amortization                                                                152,725               154,873
                                                                                     ------------          ------------
                                                                                         (230,679)            (258,274)
             Changes in assets and liabilities:
                   Prepaid expenses, Advances, and accounts receivable                      8,803               (8,261)
                   Accounts payable and accrued liabilities                                31,790                8,310
                                                                                     ------------          ------------
NET CASH (USED IN) OPERATING ACTIVITIES                                                  (190,086)            (258,225)
                                                                                     ------------          ------------
CASH FLOWS FROM INVESTING ACTIVITIES
             Purchase of mineral properties and related
                   deferred exploration expenditures                                     (126,447)             (44,011)
             Purchase of capital assets                                                        --              (84,948)
             Purchase of Centrifugal Jig patents and related expenditures                 (27,429)              (4,723)
                                                                                     ------------          -----------
NET CASH (USED IN) INVESTING ACTIVITIES                                                  (153,876)            (133,682)
                                                                                     ------------          ------------
CASH FLOWS FROM FINANCING ACTIVITIES
             Issuance of common shares for cash                                           113,664              989,534
             (Decrease) in notes payable                                                 (206,888)            (159,836)
             Increase in convertible debentures                                            16,560                    -
             Convertible debenture issuance costs                                         (22,702)                   -
                                                                                     ------------          ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                                 (99,366)             829,698
                                                                                     ------------          ------------
NET INCREASE (DECREASES) IN CASH AND SHORT-TERM INVESTMENTS                             ( 443,328)             437,791
CASH AND SHORT-TERM INVESTMENTS, beginning of period                                    8,161,770            3,270,161
                                                                                     ------------          ------------
CASH AND SHORT-TERM INVESTMENTS, end of period                                       $  7,718,442          $ 3,707,952
                                                                                     ============          ============
                                                                                   
</TABLE>




                                       iii

<PAGE>

<TABLE>


                                             ALTAIR INTERNATIONAL INC.
                                 CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT
                                       (Expressed in United States Dollars)
                                                    (Unaudited)

<CAPTION>


                                                                Three Months Ended
                                                                    March 31,
                                                ----------------------------------------------

                                                       1998                       1997
                                                -------------------       --------------------


                                                -------------------       --------------------

Expenses:
<S>                                               <C>                       <C>        
  Professional fees                               $   39,615                $    83,152
  Wages and administration                            27,770                     45,898
  Testing, research and development                   67,050                     27,394
  General and office                                  15,867                     18,066
  Shareholders' meetings and reports                  23,889                     18,151
  Public relations                                    22,896                     23,983
  Occupancy costs                                     16,551                      7,522
  Travel                                              12,087                     14,945
  Transfer agent's fees                                1,521                      2,799
  Insurance                                           15,694                      2,522
  Accounting and corporate services                    2,115                      1,788
  Government fees and taxes                            2,906                      1,186
  Stock exchange fees                                 78,974                        882
  Bank charges                                           712                       283
  Loss (gain) on foreign exchange                      6,471                     36,965
  Loss on disposal of fixed assets                     4,417                         --
  Amortization                                       152,725                    154,873
                                                -------------------       --------------------

                                                     491,260                    440,409

  Interest on notes payable                           11,816                      4,330
  Interest and miscellaneous income               $ (119,672)                   (31,592)
                                                -------------------       --------------------

Net (income) loss for period                      $  383,404                $    413,147
                                                ===================       ====================

Net (income) loss per share                       $     0.02                $      0.03
                                                ===================       ====================
</TABLE>


                                       iv

<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, 1997.

         The Company is a Canadian  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  now  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  principals  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  period ended March 31,
1998 are not  necessarily  indicative of the results to be expected for the full
year.

Note 2.  Development Stage Company

         As  of  March  31,  1998,  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:
<TABLE>
<CAPTION>

                                                                                        Accumulated
                                                                                 deficit during the
                                                                                 development stage
                                                                                 ------------------
<S>                                                                                    <C>
                                                                                       

Professional Fees                                                                $        1,555,278
Salaries and wages                                                                        1,648,202
Shareholders' expenses                                                                      881,230
Office and general                                                                          999,274
Loss on sale of mining claims                                                               101,047
Amortization                                                                              1,134,651
Interest on long-term debt                                                                   74,686
Write-off of mineral properties and related deferred exploration expenditures             1,292,354
Write-off of organization costs                                                               8,563
                                                                                 ------------------
                                                                                          7,295,285
  Less:  Interest Income
                                                                                          (231,244)
         Gain on sale of marketable securities                                             (35,773)
         Lease payments                                                                   (143,754)
         Gain on forgiveness of debt                                                      (702,726)
         Option payments                                                                   (70,906)
                                                                                 ------------------
Total accumulated loss                                                                    6,110,882
Convertible debenture costs                                                                 612,049
Share issue costs                                                                            60,557
                                                                                 ------------------
Accumulated deficit, March 31, 1998                                              $        6,783,488
                                                                                 ==================

</TABLE>


                                        v

<PAGE>



Note 3. Equity Transactions.

         During  1996,  the  Company acquired the rights to Campbell Centrifugal
Jig,  altered  and  improved  to become the Altair  Centrifugal  Jig (the "CJ"),
through a merger (the "TMI Merger")  involving  the Company,  Fine Gold Recovery
Systems,  Inc., a wholly owned  subsidiary  of the Company,  and Trans Mar, Inc.
("TMI"), a Washington corporation.  In the TMI Merger, all shares of the capital
stock of TMI were  converted  into and  exchanged  for  1,919,957  shares of the
Company's common stock ("Common  Shares"),  which were issued and deposited into
escrow pursuant to the terms of two escrow  agreements.  Of the 1,919,957 Common
Shares initially deposited into escrow,  266,170 Common Shares remian subject to
a Perormance Escrow Agreement dated February 29, 1996 (the "Escrow  Agreement"),
which  provides for release  based on the cash flow of the Company,  and 749,957
Common  Shares  have  been  released  pursuant  to the  terms  of the  governing
agreements.  The remaining 903,830 Common Shares initially deposited into escrow
were subject to the terms of the Performance Escrow Agreement. However, on March
19, 1998,  the Alberta Stock  Exchange  approved (and thereby made  effective) a
settlement  agreement (the  "Settlement")  with respect to such 903,830  shares.
Pursuant to the Settlement, 180,765 of the affected 903,830 shares were released
to the  beneficial  owners  effective  March 19, 1998 (subject to certain resale
restriction)  and the remaining  723,065 shares  subject to the Settlement  were
canceled.

         During the first quarter of 1998,  options to purchase  120,000  Common
Shares were  issued to  employees  of the Company at prices  equal to the market
price on the Alberta  Stock  Exchange on the day prior to the date of  issuance.
During the same period, options to purchase 17,500 Common Shares were exercised,
from  which the  Company  recieved  $113,664.  As of March 31,  1998,  1,065,000
options to purchase Common Shares were outstanding.


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

         The following  discussion  summarizes  the results of operations of the
Company and changes in its financial condition for the three-month periods ended
March 31, 1998 and March 31, 1997 (each such period  hereinafter  referred to as
the  "first  quarter").  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
ending December 31, 1997.

Results of Operations

         The  Company  has  earned no  operating  revenues  to date.  Net losses
totaled  $383,404 ($.02 per share) during the first quarter of 1998 and $413,147
($.03  per  share)  during  the  first  quarter  of  1997.   Principal   factors
contributing  to the losses  during  these  periods  were the absence of revenue
together with the continuing incurrence of operating expenses.

         Operating  expenses for the first quarter of 1998  increased by $50,851
over the  first  quarter  of 1997 to  $491,260.  Included  in this  amount is an
increase in stock exchange fees of $78,092  representing  costs incurred to list
the Company's stock on the NASDAQ  National  Market System  beginning in January
1998. Testing,  research and development expenses increased from $27,394 for the
first quarter of 1997 to $67,050 for the first quarter of 1998,  principally due
to the shift of labor expense from administration  expense to testing,  research
and development of a  high-capacity  jig. This shift in the attribution of labor
costs had the  corresponding  effect of reducing the amount of labor included in
administration  expenses. Other increases in expense were incurred for insurance
as a result of increased  coverages  and for  occupancy  costs due to additional
office space that was leased in Reno,  Nevada  beginning in January 1998.  These
increases in expense were partially offset by a decrease in professional fees of
$43,537.  Both legal  expenses and  consulting  fees were lower during the first
quarter of 1998 than the first  quarter of 1997 because  1997 fees  included the
costs  associated  with  initially  registering  the  Common  Shares  under  the
Securities Act of 1934, as amended. In addition,  the Company's foreign exchange
losses in the first  quarter of 1998 were $30,494 less than the first quarter of
1997.

         Interest  and  miscellaneous  income  for  the  first  quarter  of 1998
increased by $88,080,  from $31,592 for the first quarter of 1997 to $119,64 for
the first quarter of 1998,  primarily due to interest income earned on temporary
investments.

Liquidity and Capital Resources

         The Company has financed its operations  since  inception  primarily by
the issuance of equity securities (Common Shares,  convertible  debentures,  and
options and warrants to purchase  Common  Shares) with aggregate net proceeds of
$19,056,117 as of March 31, 1998. The Company received cash proceeds of $113,664
from the exercise of options to acquire  Common  Shares during the first quarter
of 1998.

         The Company has earned no revenues to date and has  incurred  recurring
losses. At December 31, 1997 the Company's  accumulated  deficit was $6,303,879.
The deficit increased by $479,609 to $6,783,488 during the first quarter of 1998
due  to  operating  losses  and  costs  associated  with  the  issuance  of  the
convertible subordinated debentures.

         The  Company  currently  maintains  working  capital  which  management
believes will be sufficient for the Company's  needs through the end of the 1998

                                       vi

<PAGE>



fiscal year; however, there can be no assurance that the Company will be able to
continue to raise capital to fund the Company's long-term capital  requirements.
At March 31, 1998, the Company had $7,718,442 in cash and short-term investments
available to meet its near-term  development  and operating  needs. In addition,
the  Company  has  the  option  to  compel  the  purchasers  of the  convertible
debentures  issued  December 29, 1997 to purchase an  additional  $5,000,000  in
convertible debentures.

         The  Company  continues  to use its  working  capital  to invest in the
testing and  development  of the CJ and to invest in the  exploration of mineral
properties to assess their viability for development and processing with the CJ.
During the first  three  months of 1998,  the Company  invested  $119,047 in its
Camden,   Tennessee  mineral  property  (the  "Tennessee   Property")  and  made
investments for exploration of additional  mineral  properties and production of
its equipment with patents.

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 expansion of the Company's  operations 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 CJ to prove
economically attractive to end users, the development of a substitute for the CJ
by a  competitor,  the need for an  unforeseen  amount of  capital  to  complete
testing  and  development  of the  Tennessee  Property  and  the CJ,  and  other
unanticipated factors. 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, 1997.

PART II - OTHER INFORMATION

Item 5.  Other Information.

         In Canada,  the Common Shares were traded under the symbol "AIL" on the
Alberta  Stock  Exchange  (the  "ASE") up through  April 23,  1998.  The Company
voluntarily  delisted  from  the ASE on that  date  due to  increased  focus  on
operations in the United States and diminished trading volume on the ASE.

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


         (a)  See Exhibit Index attached hereto.

         (b)  The  Company  filed a Current  Report on Form 8-K on  January  13,
              1998,  as amended  by  Amendment  No. 1 to Current  Report on Form
              8-K/A,  filed on January 21, 1998,  in which the Company  reported
              the  private  placement  of  $5,000,000  worth  of 5%  convertible
              subordinated debentures.



                                       vii


<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.


      May 15, 1998                    By:        /s/ William Long
      ------------                       -------------------------------------
            Date                               William Long, President


      May 15, 1998                    By:       /s/ Patrick Costin
      ------------                       -------------------------------------
            Date                               Patrick Costin, Vice-President
                                               and Principal Financial Officer




                                      viii

<PAGE>


                            ALTAIR INTERNATIONAL INC.

                                  EXHIBIT INDEX

  Regulation S-K
    Exhibit No.                 Description
---------------------        ---------------------------------------------------

       3(i)                    Articles    of    Incorporation,    as    amended
                               (incorporated   by  reference  to  the  Company's
                               Registration  Statement  on Form 10-SB filed with
                               the Commission on November 25, 1996).

       3(ii)                   Bylaws   (incorporated   by   reference   to  the
                               Company's  Registration  Statement  on Form 10-SB
                               filed with the Commission on November 25, 1996).

       27                      Financial Data Schedule





                                       ix