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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, 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 March 31, 1999, the registrant had 15,424,915 Common Shares 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,
                                                                    1999              1998
                                                                 (unaudited)        (audited)
                                                                ------------      ------------
                            ASSETS
<S>                                                             <C>               <C>         
Current
     Cash and short-term investments                            $  4,085,622      $  3,100,577
     Other current assets                                            103,195           130,642
                                                                ------------      ------------
                                                                   4,188,817         3,231,219

Capital
     Office equipment, vehicles, jigs and testing
          equipment  (Cost, net of amortization)                     579,901           462,417

Centrifugal jig patents and related expenditures
     (Cost, net of amortization)                                   3,532,596         3,609,024

Mineral properties and related deferred exploration
     expenditures                                                  1,553,049         1,399,802

Goodwill, net                                                          9,440             9,590
                                                                ------------      ------------

                         Total Assets                           $  9,863,803      $  8,712,052
                                                                ============      ============

                          LIABILITIES
Current
     Accounts payable and accrued liabilities                   $     99,299      $    165,979
     Current portion of notes payable                                 67,533            73,533
                                                                ------------      ------------
                       Total Liabilities                             166,832           239,512
                                                                ------------      ------------

                     SHAREHOLDERS' EQUITY
Capital stock issued
     15,424,915 common shares at March 31, 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                                        (438,069)       (1,929,539)
                                                                ------------      ------------
     Balance, end of period                                       (9,170,590)       (8,645,021)
                                                                ------------      ------------
                  Total Shareholders' Equity                       9,696,971         8,472,540
                                                                ------------      ------------

          Total Liabilities and Shareholders' Equity            $  9,863,803      $  8,712,052
                                                                ============      ============
</TABLE>

<PAGE>

<TABLE>
                            ALTAIR INTERNATIONAL INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (Expressed in United States Dollars)
                                   (Unaudited)
<CAPTION>


                                               Three Months Ended
                                                    March 31,
                                            ------------------------
                                               1999           1998
                                            ---------      ---------
<S>                                         <C>            <C>      
Operating Expenses
     Testing, research and development      $  79,937      $  67,050
     Wages and administration                  83,047         27,770
     Professional fees                         26,332         39,615
     Shareholder relations                     41,267         22,896
     Shareholders' meetings and reports        20,953         23,889
     General and office                        29,394         15,867
     Travel                                    17,218         12,087
     Occupancy costs                           17,251         16,551
     Stock exchange fees                       18,505         78,974
     Insurance                                 15,200         15,694
     Government fees and taxes                 20,680          2,906
     Loss (Gain) on foreign exchange           (1,105)         6,471
     Transfer agent's fees                        518          1,521
     Corporate services                         2,096          2,115
     Bank charges                                 177            712
     Loss on disposal of fixed assets            --            4,417
     Amortization                              98,841        152,725
                                            ---------      ---------
                                              470,311        491,260
Interest expense                                 --           11,816
Interest income                               (32,242)      (119,672)
                                            ---------      ---------

Net loss for the period                     $ 438,069      $ 383,404
                                            =========      =========

Basic loss per share                        $    0.03      $    0.02
                                            =========      =========
</TABLE>

<PAGE>

<TABLE>
                            ALTAIR INTERNATIONAL INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      (Expressed in United States Dollars)
                                   (Unaudited)
<CAPTION>


                                                                    Three Months Ended
                                                                         March 31,
                                                               ----------------------------
                                                                   1999             1998
                                                               -----------      -----------
<S>                                                            <C>              <C>         
Cash flows from operating activities
     Net loss for the period                                   $  (438,069)     $  (383,404)
     Adjustment to reconcile net loss for the period
          to net cash (used):
               Amortization                                         98,841          152,725
                                                               -----------      -----------
                                                                  (339,228)        (230,679)
     Changes in assets and liabilities:
          Other current assets                                      27,447            8,803
          Accounts payable and accrued liabilities                 (66,680)          31,790
                                                               -----------      -----------

Net cash used in operating activities                             (378,461)        (190,086)
                                                               -----------      -----------

Cash flows from investing activities
     Purchase of mineral properties and related
          deferred exploration expenditures                       (153,247)        (126,447)
     Purchase of capital assets                                   (137,898)            --
     Purchase of centrifugal jig patents and related
          expenditures                                              (1,849)         (27,429)
                                                               -----------      -----------

Net cash used in investing activities                             (292,994)        (153,876)
                                                               -----------      -----------

Cash flows from financing activities
     Issuance of common shares for cash                          1,750,000          113,664
     Payment of notes payable                                       (6,000)        (206,888)
     Increase in convertible debentures                               --             16,560
     Convertible debenture issuance costs                             --            (22,702)
     Capital stock issuance costs                                  (87,500)            --
                                                               -----------      -----------

Net cash provided by (used in) financing activities              1,656,500          (99,366)
                                                               -----------      -----------

Net increase (decrease) in cash and short-term investments         985,045         (443,328)

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

Cash and short-term investments, end of period                 $ 4,085,622      $ 7,718,442
                                                               ===========      ===========
</TABLE>

<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  period ended March 31, 1999
are not necessarily indicative of the results to be expected for the full year.



Note 2.  Capital Stock

      On March 19, 1999, the Company issued 100,000 common shares of the Company
("Common Shares") and 50,000 Series J Warrants at the price of $7.00 per unit of
one Common  Share and one-half  Series J Warrant (a "Unit").  On March 23, 1999,
the Company  issued an  additional  150,000  Common  Shares and 75,000  Series J
Warrants  at the price of $7.00 per Unit.  Each  Series J Warrant  entitles  the
holder to acquire one Common  Share at the price of $9.00 on or before 5:00 p.m.
(Mountain Standard Time) on the earlier of (i) March 19, 2002, and (ii) the date
thirty days  following  the fifth day (whether or not  consecutive)  the closing
price of the Common  Shares on the Nasdaq  National  Market  exceeds  $14.00 per
share. Gross proceeds from the March 19 and March 23 sales were $1,750,000.

      During the three months ended March 31, 1999,  options to purchase  15,000
Common  Shares were  granted to employees 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 March 31,  1999,  options to
purchase 1,980,000 Common Shares were outstanding.

<PAGE>

Note 3.  Development Stage Company

      As of March 31, 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                                         $ 1,378,544
Salaries and wages                                          1,955,276
Shareholders' expenses                                      1,011,886
Office and general                                          1,880,546
Loss on sale of mining claims                                 101,047
Amortization                                                1,636,393
Interest on long-term debt                                     95,035
Write off of mineral properties and related
     deferred exploration expenditures                      1,292,354
Write off of organization costs                                 8,563
                                                          -----------
                                                            9,359,645
Less:
     Interest income                                         (478,851)
     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                                      7,901,830
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, March 31, 1999                       $ 9,170,590
                                                          ===========

<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  March  31,  1999 and the
material  changes in the results of operations  and  financial  condition of the
Company between the three-month periods ended March 31, 1999 and March 31, 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 th year ended December 31, 1998.


Results of Operations

      The Company  has earned no  operating  revenues to date.  Basic net losses
totaled  $438,069  ($.03 per share)  during the first  three  months of 1999 and
$383,404  ($.02 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.

      Operating  expenses for the three months ended March 31, 1999 decreased by
$20,949  from  the  comparable  period  of  1998.  Stock  exchange  fees  were a
contributing  factor,  decreasing  by $60,469  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 quarter  ended March 31, 1999. In addition to
this, the Company  experienced a decrease in amortization of $53,884 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 $55,277 over
the same period in 1998 due to the  addition of four new  employees  in the Reno
office which occurred in February,  April and July 1998.  Shareholder  relations
expenses  increased by $18,371 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 $13,527 over the  comparable  period of 1998 due
primarily to the addition of the new employees described above.

      Interest income for the three-month  period ended March 31, 1999 decreased
by $87,430  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.


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 aggregate
net proceeds of  $20,718,617  as of March 31, 1999.  The Company  received  cash
proceeds of $1,662,500 from sales of 250,000 common shares and 125,000 warrants,
described below, during the first three months of 1999.

      On March 19, 1999,  the Company sold 100,000  common shares of the Company
and 50,000  Series J Warrants at the price of $7.00 per unit of one common share
and one-half Series J Warrant. On March 23, 1999, the Company sold an additional
150,000  common  shares and 75,000  Series J Warrants  at the price of $7.00 per
unit of one common  share and one-half  Series J Warrant.  Each Series J Warrant
entitles  the  holder to acquire  one  common  share at the price of $9.00 on or
before 5:00 p.m.  (Mountain Standard Time) on the earlier of (i) March 19, 2002,
and  (ii)  the  date  thirty  days  following  the  fifth  day  (whether  or not
consecutive)  the  closing  price of the common  shares on the  Nasdaq  National
Market exceeds  $14.00 per share.  Gross proceeds from the March 19 and March 23
sales were $1,750,000.  Net proceeds from such sales were $1,622,500,  which net
proceeds have been incorporated  into the Company's working capital.  During the
three-month  period  ended March 31, 1999,  the  Company's  working  capital was
invested  primarily  in the  testing  and  development  of the Jig  and  mineral
properties  suitable  for  development  and  processing  with  the  Jig,  and in

<PAGE>

construction  of  additional  Jigs.  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 $525,569 to $9,170,590 during
the first three  months of 1999,  due to the net loss for the period of $438,069
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 March 31, 1999, the Company had $4,085,622 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  is
constructing  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  three  months  of 1999,  the  Company  invested  $43,334  in
development  of the  Jig,  $153,248  in the  exploration  of its  Tennessee  and
California mineral properties, and $103,552 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" als 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.


                           PART II - OTHER INFORMATION


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  first
                  quarter of 1999.

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




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

<PAGE>

<TABLE>
                                  EXHIBIT INDEX
<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 Registrant        (2)
             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                                                      (4)

-----------------------
</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)   Filed herewith