<TABLE>
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1.Name and Address of Reporting | 2.Issuer Name and Ticker | 4.Statement for Month/Year| 6. Relationship of Reporting |
Person | Trading Symbol | | Person to Issuer (Check all |
| SGI International (SGII) | May 1999 | (Applicable) |
James W. Mahler |----------------------------------|---------------------------| _______________________________ |
1200 Prospect Street, Suite 325 |3.IRS or Social Security Number |5. If Amendment, Date of | x Director __ 10% owner |
La Jolla, Ca 92037 | of Reporting Person (Voluntary) | Original (Month/Year) | x Officer __ Other |
| | |(give title above) (specify above)|
- --------------------------------|----------------------------------|---------------------------|----------------------------------|
|Table I - Non Derivative Securities Acquired, Disposed of, or Benefically Owned |
- --------------------------------|-------------------------------------------------------------------------------------------------|
1. Title of Security (Instr. 3) |2.Trans- |3.Trans- |4.Securitie Acquired (A) |5.Amount of |6.Owner- |7.Nature |
| action | action | or Disposed of (D) | Securities | ship | of In- |
| Date | Code | (Instr. 3,4 and 5) | Beneficially | Form: | direct |
| (Month/ | (Instr.8) | | Owned at | Direct | Bene- |
| Day/ |------------|---------------------------------| End of |(D)or(I) | ficial |
| Year | Code | V | Amount | (A) or (D) | Price | Instr. 3 & 4 |Indirect | Ownership |
| | | | | | | |(Instr.4) | (Instr.4) |
<S> |<C> |<C> |<C> | <C> | <C> | <C> | <C> | <C> | <C> |
- --------------------------------|----------|------|-----|---------|-------------|---------|------------- |-----------|------------|
Common Stock Previously Reported| N/A | N/A | N/A | N/A | N/A | N/A | 2,000 | D | N/A |
- --------------------------------|----------|------|-----|---------|-------------|---------|--------------|-----------|------------|
Table II Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1.Title of |2.Conver- | 3.Trans- |4. Trans-|5.Number of |6.Date Exer- |7.Title and Amount |8.Price |9.Number|10.Owner- | 11.Num-|
Derivative | sion or | action | action| Derivative| cisable and| Underlying Secur-| of Der-| of Der-| ship Form| ber of|
Security | Exercise | date | code | Securities| Expiration | ities(Instr.3&4) | ivitive| ivitive| of Deriv-| Indir-|
(Instr.3) | Price of | (Month/ |(Instr.8)| Acquired(A)| Date (Month| |Security| Secur- | Security:| ect |
|Derivative| Day/Year)| | or Disposed| Day/Year) | |(Instr5)| ities | Direct(D)| Bene- |
| Security | | |of (D)(Instr|-------------|-------------------| | bene-| or Indir-| ficial|
| | | | 3,4 & 5) |Date |Expir| Title |Amount or| |ficially| ect (I) | Owner-|
| | |----------------------|Exer- |ation| |Number of| |owned at|(Instr 4) | ship |
| | |Code | V | (A) | (D) |cisable| Date| | Shares | |End of | |(Instr4)|
| | | | | | | | | | | |Month | | |
<S> | <C> | <C> | | |<C> | | |<C> |<C> | <C> | | | | <C> |
- -------------|----------|----------|-----|---|------|-----|-------|-----|---------|---------|--------|(Instr4)|----------|------- |
| | | | | | | | | | | | | | |
- -------------|----------|----------|-----|---|------|-----|-------|-----|---------|---------|--------|--------|----------|------- |
Warrants Pre-| | | | | | | | |Com. Stk | | | 40,000 | D | N/A |
viously Reported | | | | | | | | | | | | | |
- -------------|----------|----------|-----|---|------|-----|-------|-----|---------|---------|--------|--------|----------|------- |
Options Pre- | | | | | | | | |Com. Stk | | | 30,000 | D | N/A |
viously reported | | | | | | | | | | | | | |
- -------------|----------|----------|-----|---|------|-----|-------|-----|---------|---------|--------|--------|----------|------- |
Option | $0.125 | 04-01-99 | A | |50,000| | |04/04|Com. Stk | 50,000 | | 50,000 | D | N/A |
- -------------|----------|----------|-----|---|------|-----|-------|-----|---------|---------|--------|--------|----------|------- |
</TABLE>
Explanation of Responses:
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
/s/ James W. Mahler June 10, 1999
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**Signature of Reporting Person Date