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ITEM 1 AND ITEM 2 BUSINESS AND PROPERTIES EDGAR Online

Crested did not receive revenues from the mining of either uranium or gold in the three fiscal years ended May 31 1997 During fiscal 1996 however mineral revenues were generated from sales of uranium under certain of the utility supply contracts held by Sheep Mountain Partners SMP a Colorado general partnership USE and Crested delivering their one half share of uranium and receiving

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For uranium production at the Colorado Plateau a known location of uranium deposits prices started at $ for ores with % uranium oxide with increasing prices corresponding to higher concentrations of uranium The minimum guaranteed price was $ per pound of uranium oxide found outside of the Colorado Plateau

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