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


                                Form 10-QSB

                           Quarterly Report Under
                      the Securities Exchange Act of 1934

                       For Quarter Ended:  March 31, 1998

                        Commission File Number:  33-28106



                            YAAK RIVER RESOURCES, INC.
          (Exact name of small business issuer as specified in its charter)



                                     Colorado
           (State or other jurisdiction of incorporation or organization)

                                    84-1097796
                         (IRS Employer Identification No.)

                                 830 S. Kline Way
                                Lakewood, Colorado
                       (Address of principal executive offices)

                                      80226
                                    (Zip Code)

                                 (303) 985-3972
                           (Issuer's Telephone Number)


(Former name, former address and former fiscal year, if changed since last
report)


Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days:   Yes __X__   No ____.

The number of shares of the registrant's only class of common stock issued
and outstanding, as of March 31 1998, was 56,666,000 shares.




<PAGE>

                                    PART I



ITEM 1.  FINANCIAL STATEMENTS.

     The unaudited financial statements for the three month period ended
March 31, 1998, are attached hereto.


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

     The following discussion should be read in conjunction with the
Financial Statements and notes thereto included herein.

     The Company generated no revenues from its operations during the three
month period ended March 31, 1998, and the Company is considered a
development stage company.  The Company was primarily engaged in the metals
mining business and owns certain mining properties, held under patent, as
well as lode and placer mineral rights and its plan of operation generally
involved the acquisition of additional mineral claims and the taking to
patent of a number of the claims acquired and to be acquired by the Company
in the future.  However, the Company did not engage in any material
operations during the three month period ended March 31, 1998, with respect
to its mining properties, primarily due to a lack of available funds with
which to develop its properties and an extended moratorium by the Federal
Government on disallowing the taking of claims to patent.  The Company is
also a General Partner of the Yaak River Resources, Timber Division, L.P., a
Colorado limited partnership (the "Timber Partnership") which intends to
harvest timber and develop certain mineral resources on claims presently
owned or controlled by the Company and on properties presently owned by the
United States government to be patented by the Company.  During the three
months ended March 31, 1998, the Timber Partnership only engaged in
administrative activities.

     Because of the lack of funding and the moratorium placed on the
patenting of claims by the United States government, during the fiscal year
ended December 31, 1997, and the three month period ended March 31, 1998, the
Company has considered expanding its business plan to that of either (i)
locating and merging with another company who is seeking to merge with an
entity whose securities are presently trading, or (ii) changing the principal
business of the Company, while continuing to seek interested parties to join
with the Company either as limited partners and/or joint venture partners for
the purpose of mining its present properties.

     Relevant to (i), a number of potential merger candidates have been
presented to management; however, none of these candidates has been
acceptable to the Company.

     Relevant to (ii), the Company is presently evaluating the possibility of
a long term commitment to an agricultural development project located in
Mongolia, and is engaged in discussions with the "Bornuur" Company, a
Mongolian corporation, to acquire an interest in approximately 24,710 acres

                                     2


<PAGE>
of farm land located approximately 65 miles north of Ulaanbaarar, Mongolia. 
This farm land has been in production for over 100 years.  In July 1997 the
Mongolian government adopted new legislation privatizing farm land, which
management believes presents certain opportunities which the Company may be
able to take advantage.  The Company is presently negotiating with the
Mongolian government for a minimum of a 60 year lease and privatization of
the project district and anticipates that such an agreement, if any, will be
established by the end of May 1998.  If successfully negotiated, it is
estimated that the project will require a cash infusion of approximately $2.5
million to implement the operating schedule and achieve profitable
operations.  As of the date of this report, the Company has had negotiations
with prospective lenders in this regard, but no definitive commitment has
been provided and no assurances can be provided that such an agreement will
be reached in the future.

     The Company had minimal expenses during the three month period ended
March 31, 1998.  The Company is expected to operate at a loss for the
remainder of the fiscal year until either (i) earnings, if any, are received
from the harvesting of the its present metal and non-metal resources known to
exist within the boundaries of the Company's properties; (ii) the Company
successfully merges with a nonaffiliated entity; or (iii) the Company
acquires an interest in another business venture.

     The Company expects to continue without any cash revenues for at least
the present fiscal year and will satisfy its cash requirements by loans and
advances from the Timber Partnership and/or officers and directors of the
Company, providing that the Company does not commence mining activities or
the Company successfully engages in a business opportunity, either by merger
or acquisition of assets.  At present, the Company's financial resources are
not sufficient to commence mining activities.  In order to satisfy the
Company's capital requirements for additional drilling and to develop a
mining feasibility program, it will be necessary for the Company to obtain
additional financing in the minimum estimated amount of $750,000.  Management
of the Company is continuing to seek possible interested partners to join
with the Company in developing its mining claims or soliciting joint venture
partners to expand its mining activities, based upon the valuation of the
Company's claims and properties as reported in an independent engineering
valuation report.  As of the date of this report, management is unaware of
any third parties who are interested in joining with the Company in this
regard.  Exploration and mining activities of other mining companies in the
area surrounding its claims in Northern Montana and Canada in similar
geological settings provides a basis for management to believe that it will
be able to interest joint venturers in its proposed mining ventures. 
However, in the event the Company is unable to either solicit joint venture
partners or otherwise obtain the capital deemed necessary in order to
commence mining operations, management will seek out other viable business
opportunities by way of merger or acquisition in order to provide the
Company's shareholders with liquidity.

     The Company currently has no employees and relies upon the unpaid
services of its officers for the operation of the Company.  The contracted

                                     3


<PAGE>
services of individuals will continue until it is justifiable to employ a
full time employee.

Forward Looking Statements

     This report contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") concerning
the Company's operations, economic performance and financial conditions,
including, in particular, the likelihood of the Company's ability to acquire
another existing business or assets.  These statements are based upon a
number of assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Company and reflect future business decisions which are
subject to change.  Some of these assumptions inevitably will not materialize
and unanticipated events will occur which will affect the Company's results. 
Consequently, actual results will vary from the statements contained herein
and such variance may be material.  Prospective investors should not place
undue reliance on this information.

Year 2000 Disclosure

     Many existing computer programs use only two digits to identify a year
in the date field.  These programs were designed and developed without
considering the impact of the upcoming change in the century.  If not
corrected, many computer applications could fail or create erroneous results
by or at the Year 2000.  As a result, many companies will be required to
undertake major projects to address the Year 2000 issue.  Because the Company
has nominal assets, including no personal property such as computers, it is
not anticipated that the Company will incur any negative impact as a result
of this potential problem.  However, it is possible that this issue may have
an impact on the Company after the Company successfully consummates a merger
or acquisition.  Management intends to address this potential problem with
any prospective merger or acquisition candidate.  There can be no assurances
that new management of the Company will be able to avoid a problem in this
regard after a merger or acquisition is so consummated.  


 
                       PART II.  OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS - None


ITEM 2.  CHANGES IN SECURITIES - NONE


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES - NONE


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - NONE.


ITEM 5.  OTHER INFORMATION - NONE.


                                      4


<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K -

         (a)  Exhibits

              EX-27     Financial Data Schedule

         (b)  Reports on Form 8-K - None.



                                     5


<PAGE>

<TABLE>
YAAK RIVER RESOURCES, INC.
(A Development Stage Company)
Unaudited
Balance Sheet

<CAPTION>
                                              Unaudited        Audited
                                               March 31,     December 31
                                                 1998            1997
                                              _________       ___________
<S>                                           <C>             <C>
ASSETS
  Current Assets
    Cash                                      $   1,022       $     1,022
    Accounts Receivable-O'Hara Resources          2,200             2,200
    Investment-Mining Properties                305,410           305,410
                                              _________       ___________
  Total Current Assets                          308,632           308,632

  Other Assets
    Organizational Costs-
      Net of Amortization                             0                 0
                                              _________       ___________
  Total Other Assets                                  0                 0
                                              _________       ___________
TOTAL ASSETS                                  $ 308,632       $   308,632
                                              =========       ===========
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities
  Current Liabilities
    Accounts Payable                             42,155            40,456
    Advance from (YRML) Purchase,
      1.5 Units                                  20,000            20,000
    Shareholder Loans                            20,017            20,017
    Current Portion-Long Term Debt                7,500             7,500
                                              _________       ___________
  Total Current Liabilities                      89,672            87,973

  Long-Term Liabilities
    Long Term Debt                              115,000           115,000
                                              _________       ___________
  Total Long-Term Liabilities                   115,000           115,000
                                              _________       ___________
Total Liabilities                             $ 204,672       $   202,973

Shareholder's Equity

  Series A Common Stock, Par Value
  $.0001 Per Share; 250,000,000 Shares
  Authorized; Issued and Outstanding -
  56,666,000 Shares                               5,666             5,666


                                         6


<PAGE>
<CAPTION>
                                              Unaudited        Audited
                                               March 31,     December 31
                                                 1998            1997
                                              _________       ___________
<S>                                           <C>             <C>
  Series B Common Stock, Par Value
  $.0001 Per Share; 250,000,000 Shares
  Authorized; Issued and Outstanding -
  None                                                0                 0

  Preferred Stock, Par Value $.0001 Per
  Share; 50,000,000 Shares Authorized;
  Issued and Outstanding - None                       0                 0

  Capital Paid in Excess of Par Value           304,663           304,663

  Deficit Accumulated During
    the Development Stage                      (206,369)         (204,670)
                                              _________       ___________
Total Shareholders' Equity                    $ 103,960       $   105,659
                                              _________       ___________
TOTAL LIABILITIES
  AND SHAREHOLDERS' EQUITY                    $ 308,632       $   308,632
                                              =========       ===========

<FN>
The accompanying notes are an integral part of these financial statements.

</TABLE>


                                         7


<PAGE>

<TABLE>
YAAK RIVER RESOURCES, INC.
(A Development Stage Company)
Unaudited
Statement of Operations

<CAPTION>
                                 For the                      June 10, 1988
                              Three Months     For the         (Inception)
                                  Ended       Year Ended           Thru
                                March 31,     December 31,       March 31,  
                                   1998          1997              1998
                              ____________   ____________   _________________
<S>                           <C>            <C>            <C>
Income                        $          0   $          0   $               0

Expenses
  Amortization                           0              0               1,500
  Bank Charges                           0             78                 399
  Legal and Accounting               1,699          5,563              48,255
  Director Fees                          0              0                 800
  Office                                 0             40               6,938
  Stock Fees and Other Costs             0              0               9,982
  Administration/Consulting              0         12,876              46,987
  Mining Assessments and Fees            0          5,480              75,295
  Bad Debt                               0              0               4,000
  Rent/Telephone                         0              0              12,213
                              ____________   ____________   _________________

Total Expenses                       1,699         24,037             206,369

Net (Loss) Accumulated During
  the Development Stage       $     (1,699)       (24,037)           (206,369)
                              ============   ============   =================
Weighted Average Number of
  Shares Outstanding             56,666,000     56,666,000         56,666,000

Net Loss Per Share            $         (*)   $        (*)  $             (*)


*Less than $0.004 Per Share.

<FN>
The accompanying notes are an integral part of these financial statements.

</TABLE>


                                         8


<PAGE>

<TABLE>
YAAK RIVER RESOURCES, INC.
(A Development Stage Company)
Unaudited
Cash Flow Statement

<CAPTION>
                                    For the                    June 10, 1988
                                  Three Months    For the       (Inception)
                                     Ended       Year Ended         Thru
                                   March 31,    December 31,      March 31, 
                                      1998          1997            1998
                                 ____________   ____________   ______________ 
<S>                              <C>            <C>            <C>
Cash Flows From
  Operating Activities:
    Net (Loss) Accumulated
      During Development Stage   $     (1,699)  $   (24,037)   $    (206,369)
    Amortization and Depreciation           0             0            1,500
    Organization Costs                      0             0           (1,500)
    (Decrease) Increase in
      Accounts Payable                  1,699        16,231           42,155
    Decrease (Increase) in
      Accounts Receivable                   0             0           (2,200)
    Decrease (Increase) in
      Loans to Shareholder                  0         7,917           20,017
                                 ____________   ___________    _____________
  Net Cash Flows Used
    By Operating Activities                 0           111         (146,397)

Cash Flows From
  Investing Activities:
    Investment Purchase                     0             0         (305,410)
                                 ____________   ___________    _____________
Net Cash Flows Used 
  By Investing Activities                   0             0         (305,410)

Cash Flows From
  Financing Activities:
    Issuance of Common Stock                0             0            1,800
    Loans from LP Investors                 0             0           20,000
    Proceeds From Long-Term Debt            0             0          167,500
    Payment of Long-Term Debt               0             0          (45,000)
    Proceeds From Sale of Stock             0             0          308,529
                                 ____________   ___________    ______________
Net Cash Flows Provided
  By Financing Activities                   0             0          452,829
                                 ____________   ___________    ______________

Net Increase (Decrease) in Cash             0           111            1,022
                                 ____________   ___________    _____________



Cash at Beginning of Period             1,022           911                0
                                 ____________   ___________    _____________

Cash at End of Period            $      1,022   $     1,022    $       1,022
                                 ============   ===========    =============

<FN>
The accompanying notes are an integral part of these financial statements.

</TABLE>


                                         9


<PAGE>

<TABLE>
YAAK RIVER RESOURCES, INC.
(A Development Stage)
Unaudited
Statement of Shareholders' Equity

<CAPTION>
                                                          Deficit
                                                        Accumulated
                       Number of            Additional   During the
                         Shares     Common    Paid In   Development
                      Common Stock   Stock    Capital      Stage      Total
                      ____________  ______  __________  ___________  ________
<S>                   <C>           <C>     <C>         <C>          <C>
Balance at
  June 10, 1988                  0  $    0  $        0  $         0  $     0

Stock issued for services
  January 6, 1989       10,000,000   1,000         500            0    1,500

Stock issued for cash
  January 6, 1989        5,000,000     500           0            0      500

Public offering
  November 27, 1989      2,666,000     266      12,353            0   12,619

Net Loss for year ended
  December 31, 1989                                          (3,765)  (3,765)

Net Loss for year ended
  December 31, 1990                                         (10,129) (10,129)  
Net Loss for year ended
  December 31, 1991                                            (300)    (300)

Stock issued for assets
  (YRML) January 10,
  1992                  30,000,000   3,000     134,910            0  137,910

Net Loss for year ended
  December 31, 1992                                         (47,589) (47,589)

Stock issued for cash
  June 30, 1993          6,000,000     600     149,400            0  150,000

Stock issued for services
  June 30, 1993          3,000,000     300           0            0      300

Net Loss for year ended
  December 31, 1993                                         (54,951) (54,951)

Net Loss for year ended
  December 31, 1994                                         (26,293) (26,293)

Net Loss for year ended
  December 31, 1995                                         (17,764) (17,764)

Net Loss for year ended
  December 31, 1996                              7,500      (19,842) (12,342)

                                        10


<PAGE>
<CAPTION>
                                                          Deficit
                                                        Accumulated
                       Number of            Additional   During the
                         Shares     Common    Paid In   Development
                      Common Stock   Stock    Capital      Stage      Total
                      ____________  ______  __________  ___________  ________
<S>                   <C>           <C>     <C>         <C>          <C> 
Net Loss for year ended
  December 31, 1997                                         (24,037) (24,037)

Net Loss for period
  ended March 31 1998                                        (1,699)  (1,699)
                      ____________  ______  __________  ___________  ________
Balance at
  March 31, 1998        56,666,000  $5,666  $  304,663  $  (206,369) $103,960
                      ============  ======  ==========  ===========  ========

<FN>
The accompanying notes are an integral part of these financial statements.

</TABLE>


                                        11


<PAGE>
                            YAAK RIVER RESOURCES, INC.
                          (A Development Stage Company)

                          Notes to Financial Statements
                                  March 31, 1998
                                   (Unaudited)

Note 1 - Organization and Summary of Significant Accounting Policies:
         -----------------------------------------------------------

Organization:
- ------------

On June 10, 1988, Yaak River Resources, Inc. (the Company) was incorporated
under the laws of Colorado under the name of Andraplex Corporation.  The name
was changed at the Annual Shareholder's Meeting on January 10, 1992.  The
Company's primary purpose is to engage in selected acquisitions and
development of mineral and mining properties.

Initial Public Offering:
- -----------------------

In the Company's initial public offering, which was closed on November 27,
1989, the Company sold 2,580,000 units (the Units).  86,000 additional shares
were issued to the underwriters.  Each Unit consisted of one (1) share of
Series A Common Stock, one (1) A Warrant exercisable at $.05, one (1) B
Warrant exercisable at $.10.

Costs, consisting of $9,444 and 86,000 shares of Series A Common Stock,
incurred to complete the registration were offset against the gross proceeds.

The Company's fiscal year end is December 31.

Note 2 - Purchase of Mineral Properties:
         ------------------------------

On January 10, 1992, at the Annual Meeting of Shareholders, the shareholders
voted unanimously to purchase certain mineral and mining properties (the
Properties) located in the State of Montana, including leases, drawings,
engineering studies and other tangible and intangible assets associated with
the Properties.  The seller of the Properties was Yaak River Mines, Ltd.  
They received 30,000,000 shares of Series A Common Stock.  The issuance of
the 30,000,000 shares of Series A Common Stock was exempt from registration
under the exemption provided in Section 4(2) of the Securities Act of 1933,
as amended.

The Company is the beneficiary of 16,000,000 of the above shares which are
being held in the Con Tolman Memorial Trust C.  8,000,000 additional shares
of the Company were placed in the trust as part of the original purchase of
the Company.  These 24,000,000 shares are expected to be used to acquire
additional mining properties.

                                    12


<PAGE>
Note 3 - Yaak River Resources Timber Division, Limited Partnership:
         ---------------------------------------------------------

On August 14, 1992, the Company formed a limited partnership, Yaak River
Resources Timber Division L.P. (the Partnership), a Colorado limited
partnership, with subscriptions for 40 Units at $5,000.00 per Unit for an
aggregate price of $200,000.00.  Each Unit contains 1/40th interest in the
Partnership and 150,000 shares of Series A Common Stock of the Company.  The
Company is the general partner of the Partnership.  As a part of the
formation of the Partnership, the Company agreed to reserve 6,000,000 shares
of its Series A Common Stock for the Partnership.  Said 6,000,000 shares of
Series A Common Stock represents the shares offered in the Units issued by
the Partnership.  The Partnership was formed for the purpose of developing
certain available natural resources on properties under the management of the
Company.

On June 30, 1993, the Company sold six million (6,000,000) shares of its
$.0001 par value Series A Common Stock for the issuance to the purchasers of
the Limited Partnership interests in the Yaak River Resources, Timber
Division L.P., for $150,000.

Note 4 - Income Taxes:
         ------------

The Company has made no provision for income taxes because there have been no
operations to date causing income for financial statement or tax purposes.

Note 5 - Net (Loss) Per Common Share
         ---------------------------

The net (loss) per common share of the Series A Common Stock is computed
based on the weighted average number of shares outstanding.

Note 6 - Long-Term Debt
         --------------

Note Payable to the Roy Grush Estate in annual installments of $7,500, 0%,
due September 2014, secured by the Properties (Note 2).  The Company has
agreed to pay the minimum annual assessment costs of maintenance and
improvements on claims in lieu of interest.

Following is a summary of long-term debt at March 31, 1998:


1998                          $  7,500
1999                             7,500
2000                             7,500
2001                             7,500
2002                             7,500
                              ________
                                37,500
Remaining                       77,500
                              ________
                              $115,000


                                    13


<PAGE>

 
                               SIGNATURES


     Pursuant to the requirements of Section 12 of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                              YAAK RIVER RESOURCES, INC.
                              (Registrant)

                              Dated:   May 14, 1998



                              By:   s/Wm. Ernest Simmons
                                 -------------------------------------
                                   Wm. Ernest Simmons
                                   President
                                      


                                    14


<PAGE>
                        YAAK RIVER RESOURCES, INC.

              Exhibit Index to Quarterly Report on Form 10-QSB
                  For the Quarter Ended March 31, 1998

EXHIBITS                                                            Page No.

  EX-27     Financial Data Schedule . . . . . . . . . . . . . . . . . . 16


                                    15







<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1998,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                           1,022
<SECURITIES>                                         0
<RECEIVABLES>                                    2,200
<ALLOWANCES>                                         0
<INVENTORY>                                    305,410
<CURRENT-ASSETS>                               308,632
<PP&E>                                               0
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                 308,632
<CURRENT-LIABILITIES>                           89,672
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         5,666
<OTHER-SE>                                      98,294
<TOTAL-LIABILITY-AND-EQUITY>                   308,632
<SALES>                                              0
<TOTAL-REVENUES>                                     0
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                 1,699
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (1,699)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (1,699)
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                        0
        

</TABLE>