OSTO Original Sixteen to One (CE)

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-QSB

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended June 30, 2008 Commission File No. 001-10156

ORIGINAL SIXTEEN TO ONE MINE, INC.
(Exact name of registrant as specified in its charter)

 CALIFORNIA 94-0735390
 (State or other jurisdiction of (I.R.S. Employer Identification No.)
 incorporated or organization

(530) 287-3223
(Registrant's telephone number)

(including area code)

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 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 requirement for the past 90 days.

Yes: x No:

As of June 30, 2008, 12,905,505 shares of Common Stock, par value $.03 per share, were issued and outstanding.

PART I

1. FINANCIAL INFORMATION

 Original Sixteen to One Mine, Inc.
 Condensed Balance Sheet
 June 30, 2008 and December 31, 2007

 June 30, 2008 December 31, 2007
ASSETS

Current Assets
 Cash $ 16,293 $ 642
 Accounts receivable 1,693 3,134
 Inventory 688,883 714,120
 Other current assets 625
 ---------- ----------
 Total current assets 706,869 718,521
 ---------- ----------

Mining Property
 Real estate and property rights
 net of depletion of $524,145 218,287 218,287
 Real estate and mineral property 500,707 500,707
 ---------- ----------
 718,994 718,994
 ---------- ----------
Fixed Assets at Cost
 Equipment 925,243 925,243
 Buildings 209,487 209,487
 Vehicles 255,128 255,128
 ---------- ----------
 1,389,858 1,389,858
Less accumulated depreciation (1,274,471) (1,264,666)
 ---------- ----------
 Net fixed assets 115,387 125,192
 ---------- ----------
Other Assets
 Bonds and misc. deposits 16,185 16,185
 ---------- ----------

 Total Assets $1,557,435 $1,578,892
 ========== ==========

LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities
 Accounts payable &
 accrued expenses $ 432,865 308,454
Due to related party 689,177 677,598
Notes payable due within one year 434,000 431,000
 ---------- ----------
 Total Current Liabilities 1,556,042 1,417,052
 ---------- ----------
Long Term Liabilities
 Notes payable due after one year 64,421 58,478
 ---------- ----------
 Total Liabilities 1,620,463 1,475,530
 ---------- ----------

Stockholders' Equity
 Capital stock, par value $.03:
 30,000,000 shares authorized:
 12,905,505 shares issued and
 outstanding as of June 30, 2008 and
 12,867,250 shares issued and
 outstanding as of December 31, 2007. 425,836 425,377
 Additional paid-in capital 1,911,322 1,898,317
 (Accumulated deficit)
 retained earnings (2,400,186) (2,220,332)
 ---------- ----------
 Total Stockholders' Equity 63,028 103,362
 ---------- ----------
Total Liabilities and
 Stockholders' Equity $1,557,435 $1,578,892
 ========== ==========

See Accompanying Notes

Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings

Three Months Ending June 30, Six Months Ending June 30,

 2008 2007 2008 2007
 ------ ------ ------ -----
Revenues:
 Gold & jewelry sales $ 19,990 $ 137,957 $ 120,420 $ 263,975
 ----------- ----------- -------- --------
 Total revenues 19,990 137,957 120,420 263,975
 ----------- ----------- -------- --------
Operating expenses:
 Salaries and wages 17,888 19,396 47,966 38,733
 Contract Labor 3,359 131,270 11,645 285,158
 Telephone & utilities 11,321 17,723 22,838 35,346
 Taxes - property & payroll 9,107 8,384 18,820 17,142
 Insurance 190 492 1,038 984
 Supplies 2,115 14,285 11,874 28,141
 Small equipment & repairs 456 9,520 4,850 22,692
 Drayage 6,594 5,950 12,614 17,527
 Corporate expenses 7,245 10,728 9,845 11,728
 Legal and accounting - 228 88,572 2,105
 Compliance/Safety 121 1,762 146 4,462
 Depreciation & amortization 4,902 5,324 9,804 10,648
 Other expenses 2,746 10,583 6,234 17,494
 ---------- ---------- ------- -------
 Total operating expenses 66,044 235,645 246,246 492,160
 ---------- ---------- -------- --------
 Loss from operations (46,054) (97,688) $ (125,826) $ (228,185)

Other Income & (Expense):
 Other income (expense) (32,737) (21,049) (53,228) (45,136)
 ---------- ----------- ------- --------
Profit (Loss) before taxes (78,791) (118,737) (179,054) (273,321)
 ---------- ----------- --------- ----------
Income tax benefit (expense) - - (800) (800)
 ---------- ----------- --------- ----------
Net profit (loss) $ (78,791) $ (118,737) $ (179,854) $ (274,121)
 ============ =========== ========== ==========

Basic and diluted (loss)
 Gain per share $ (.006) $ (.009) $ (.01) $ (.02)
 ============ ============ ========= =========
Shares used in the
 calculation of net
 loss income per share 12,905,505 12,890,204 12,905,505 12,890,204
 ============ =========== ========== ===========

See Accompanying Notes

Original Sixteen to One Mine, Inc. Statement of Cash Flows Six Months Ended June 30,2008 and June 30,2007

 Six Months Ended June 30,
 2008 2007
 -------------- --------------
Cash Flows From Operating Activities:

Net (loss) profit $ (179,854) $ (274,121)
 operating activities:
 Depreciation and amortization 9,804 10,648
 (Increase)Decrease in
 accounts receivable 1,441 (1,674)
 Decrease(Increase) in inventory 25,237 94,331
 (Increase)Decrease in other
 current assets 625 984
 (Decrease) increase in accounts payable
 and accrued expenses 124,412 21,351
 (Decrease) increase in short term notes 14,579 168,875

 ------------ ----------
 Net cash (used) provided by
 operating activities (3,756) 20,394
 ------------ -----------

Cash Flows From Investing Activities:

 Purchase of mining property - -
 Purchase of fixed assets - -
 Other assets bonds misc. deposits - -
 ------------- -----------

 Net cash used by
 investing activities - -
 ------------- -----------

Cash Flows From Financing Activities

 Increase (decrease) notes payable 5,943 (15,187)
 Proceeds from sale of common stock 459 -
 Additional paid-in capital 13,005 -
 ------------ ------------
 Net cash provided (used) by
 financing activities 19,407 (15,187)
 ------------ ------------

 (Decrease) increase in cash 15,651 5,207

Cash, beginning of period 642 1,222
 ------------ ----------
Cash, end of period $ 16,293 $ 6,429
 ============ ============

Supplemental schedule of other cash flows:

 Cash paid during the period for:

 Interest expense $ 60,026 $ 50,896
 ============ ============
 Income taxes $ 800 $ 800
 ============ ============

See Accompanying Notes

NOTES TO THE FINANCIAL STATEMENTS

I. GENERAL NOTES

1. In accordance with directive from the Securities and Exchange Commission (SEC)and Industry Guide 7, reference for all intent and purposes to the Company's employees as miners, its properties as mines or its operation as mining does not diminish the fact that the Company has no proven reserves and is in the "exploration state" as defined in Guide 7(a)(4)(iii).

2. In the opinion of management, the financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company's financial position at June 30, 2008 and December 31, 2007, the results of operations for the three-month & six-month periods ended June 30, 2008 and 2007 and cash flows for the six month periods ended June 30, 2008 and 2007. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.

II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

The Sixteen to One mine in the Alleghany Mining District is a unique mine and requires a unique operation, which has been recognized by its owners, its miners, geologists, engineers, and some public agencies during the last decade of the twentieth century and to the present. It is a traditional high-grade, hard rock, underground gold mine. The same company owns and operates the mine. Original Sixteen to One Mine Inc, (owner) was incorporated in California in 1911. Experts estimate that less than twenty percent of the proven and probable ore deposit has been mined. Production is approximately 1,500,000 ounces of gold.

There are over twenty-eight miles of horizontal workings and millions of cubic feet of vertical excavations called stopes. The entire grounds are not maintained for mining. Once an area is targeted for mining, travel ways and escape routes are brought into safety compliance. Production miners set up a heading (face) and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein in exceedingly rich concentrations called "pockets". Metal detectors are regularly used underground as a tool for guiding the direction of the work. Metal detectors are also used as a tool to separate the ore underground. This has the positive affect of reducing the volume of shot rock from the mine, thereby reducing cost. In 1992, the company initiated a gold marketing plan of selling gold in quartz as a gemstone. This produces revenue significantly greater than selling gold into the spot market. Demand for the Sixteen to One gold-in-quartz gemstone exceeds supply.

Production has been termed a "feast or famine" situation for over 100 years. Reserves in a high-grade gold mine cannot be termed as "proven". The company hoards gold and sells it according to short-term cash needs. This fact requires an operator to manage its cash flow to operate between pockets. It is difficult to undertake major expansion plans with an uncertain supply of capital. The Company has announced general plans to build a new shaft in the northern section of its Alleghany patented claims.

BALANCE SHEET COMPARISONS

For the six-month period from December 31, 2007 to June 30, 2008 cash increased by $15,651 (2,437%) due to sales at the annual shareholder's meeting held at the end of June in 2008.

Accounts Receivable decreased by $1,441 (46%) as customers paid their bills.

Accounts Payable increased by $124,411 (40%) primarily due to the posting of legal fees (see note #7 below).

STATEMENT OF OPERATIONS

Revenues for the three-month period ended June 30, 2008 decreased by $117,967 (85%) and decreased $143,555 (54%) for the six-month period ended June 30, 2008 compared to the same periods in 2007 primarily due to a lack of gold production.

Changes in the Company's operating expenses for the three and six-month periods ended June 30, 2008 compared to the same periods in 2007 are reflected as follows:

1. For the three and six-month periods Contract Labor decreased by $127,911 (97%) and $273,513 (96%) respectively due to the company operating on a "maintenance only" status in 2008.

2. For the three and six-month periods Telephone & Utilities decreased by $6,402 (36%) and $12,508 (35%) respectively due to a "maintenance only" operation in 2008.

3. For the three and six-month periods Supplies decreased by $12,170 (85%) and $16,267 (58%) respectively due to a "maintenance only" operation in 2008.

4. For the three and six-month periods Small Equipment and Repairs decreased by $9,064 (95%) and $17,842 (78%) respectively due to a "maintenance only" operation in 2008.

5. For the three and six-month periods Drayage decreased $644 (11%) and $4,913 (28%) respectively due to a "maintenance only" operation in 2008.

6. For the three and six-month periods Corporate Expense decreased by $3,483 (32%) and $1,883 (16%) respectively due to not utilizing a printer to print the annual report in 2008 as well as the associated reduced postage required to mail it.

7. For the six-month period Legal and Accounting increased $86,467 (4,107%) due to the issuance of an order on January 7, 2008 for plaintiff Original Sixteen to One Mine, Inc. to reimburse defendants CDAA et al $88,376 for attorneys fees. See "Legal Proceedings" below.

8. For the three and six-month periods Compliance and Safety decreased by $1,641 (93%) and $4,316 (96%) respectively due to a maintenance only operation in 2008.

9. For the three and six-month periods Other Income and Expenses increased by $11,688 (55%) and $8,092 (18%) respectively due to higher interest expenses as a direct result of an increase the Company's debt.

10. For the three-month period ended June 30, 2008, the Company recorded a loss of $78,791 (before taxes) compared to a loss of $118,737 for same period in 2007. The $39,946 (33%) difference is due primarily to the change in operating status in 2008 as well as a lack of gold production for both years. For the six-month period ended June 30, 2008, the Company recorded a loss of $179,054 (before taxes) compared to a loss of $273,321 for the same period in 2007. The $94,267 (34%) difference is due to the change in the operating status in 2008 as well as a lack of gold production for both years.

SUBSEQUENT EVENTS

None

LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity is substantially dependent upon the results of its operations. Because of the unpredictable nature of the gold mining business, the Company cannot provide any assurance with respect to long-term liquidity. In addition, if the Company's operation does not produce meaningful additions to inventory, the Company may determine it is necessary to satisfy its working capital needs by selling gold in bullion form.

The Company is dependent on continued recovery of gold and sales of gold from inventory to meet its cash needs. Although the Company has historically located an annual average of $848,000 of gold over a five year period, there can be no assurance that the Company's efforts in any particular period will provide sufficient funding for the Company to continue operations.

If the Company's cash resources are inadequate and its gold inventory is depleted, the Company may seek debt or equity financing on the most reasonable terms available.

PART II

LEGAL PROCEEDINGS

1. Plaintiff in Superior Court of the State of California, County of Sierra against private lawyers and their employer. Case filed February 13, 2004. Case No. 6293, Complaint for Damages (Malicious Prosecution, Intentional Infliction of Emotional Distress, Intentional Interference with Perspective Advantage). Defendants appealed their loss of an anti-slap motion to the California Appeals Court, Third District which overturned the Superior Court decision on May 8, 2007. The Company filed a Petition for Review with the California Supreme Court on June 18, 2007, which was denied. On January 7, 2008 Superior Court visiting Judge R. Michael Smith issued an order for plaintiff Original Sixteen to One Mine, Inc. to reimburse defendants CDAA et al $88,376 for attorney's fees. This case is now closed.

OTHER INFORMATION

The unaudited interim consolidated financial statements of Original Sixteen to One Mine, Inc. (the Company) have been prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading.

In the opinion of management, verified by signature below, all adjustments necessary for a fair presentation of these interim statements have been included. These adjustments are of a normal recurring nature.

The preparation of the Company's financial statements in conformity with accounting principles accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions. No accounting principle upon which the Company's financial status depends, requires estimates of proven and probable reserves and/or assumptions of future gold prices. Commodity prices may significantly affect the company's profitability and cash flow. No independent accounting firm or auditors have any responsibility for the accounting and written statements of the Form 10-QSB.

The Company and its president assume responsibility for the accuracy of this filing and certify the financial statements present fairly in all material respects, the financial position of Original Sixteen to One Mine, Inc at June 30, 2008.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

From time to time the Original Sixteen to One Mine, Inc. (the Company), will make written and oral forward-looking statements about matters that involve risks and uncertainties that could cause actual results to differ materially from projected results. Important factors that could cause actual results to differ materially include, among others:

- Fluctuations in the market prices of gold
- General domestic and international economic and political conditions
- Unexpected geological conditions or rock stability conditions resulting in cave-ins, flooding, rock-bursts or rock slides
- Difficulties associated with managing complex operations in remote areas
- Unanticipated milling and other processing problems
- The speculative nature of mineral exploration
- Environmental risks
- Changes in laws and government regulations, including those relating to taxes and the environment
- The availability and timing of receipt of necessary governmental permits and approval relating to operations, expansion of operations, and financing of operations
- Fluctuations in interest rates and other adverse financial market conditions
- Other unanticipated difficulties in obtaining necessary financing with specifications or expectations
- Labor relations
- Accidents
- Unusual weather or operating conditions
- Force majeure events
- Other risk factors described from time to time in the Original Sixteen to One Mine, Inc., filings with the Securities and Exchange Commission

Many of these factors are beyond the Company's ability to control or predict. Investors are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update its forward-looking statements, whether as a result of receiving new information, the occurrence of future events or otherwise.

SIGNATURE

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.

ORIGINAL SIXTEEN TO ONE MINE, INC.
(Registrant)

/s/Michael M. Miller
President and Director
Dated: September 3, 2008

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