<PAGE>
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C. 20549
                                
                            FORM 10-K
                                
      [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
               THE SECURITIES EXCHANGE ACT OF 1934
           For the fiscal year ended December 31, 1998
                               OR
   [  ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
               THE SECURITIES EXCHANGE ACT OF 1934
           For the transaction period from          to
                                
                  Commission file number 1-316

                 INDEPENDENCE LEAD MINES COMPANY
     (Exact name of registrant as specified on its charter)

          ARIZONA                            82-0131980
     (State or other jurisdiction       (IRS Employer Identification No.)
          of incorporation)
                                
                           P O BOX 717
                      WALLACE, IDAHO 83873
            (Address of principal executive offices)

 Registrant's telephone number, including area code: (208) 753-2525
                                
Securities registered pursuant to Section 12 (b) of the Act:

     Common Non-Assessable Stock,
     Par Value $1.00 per Share               None
     -----------                             -----------
     Title of each class                Name of each exchange
                                        on which registered

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 December 31, 1998, the aggregate market value of the voting
stock held by non-affiliates of the  registrant was $3,491,222.

           (APPLICABLE ONLY TO CORPORATE REGISTRANTS)
                                
As of December 31, 1998, there were 4,369,993 shares outstanding
of the registrant's $1.00 par value common stock; authorized
common shares of 5,000,000.

               DOCUMENTS INCORPORATED BY REFERENCE
                                
The following documents are incorporated by reference in the
indicated parts of this Form 10-K:
                              NONE
                                
<PAGE>
                 INDEPENDENCE LEAD MINES COMPANY
                     Form 10-K Annual Report
              For the year ended December 31, 1998
                                
                                
                        TABLE OF CONTENTS
                                
                             PART I
                                                       Page
Item 1.   Business  .    .    .    .    .    .    .           1
Item 2.   Properties     .    .    .    .    .    .    .      3
Item 3.   Legal Proceedings   .    .    .    .    .    .      4
Item 4.   Submission of Matters to a Vote of Security Holders.4

                             PART II
                                
Item 5.   Market for the Registrant's Common Stock and
          Related Stockholder Matters   .    .    .    .    . 5
Item 6.   Selected Financial Data  .    .    .    .    .    . 5
Item 7.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations     .    .    . 6
Item 8.   Financial Statements and Supplementary Data  .    . 6
Item 9.   Disagreements on Accounting and Financial Disclosure6
          Index to Financial Statements      .    .    .    . 7

                            PART III
                                
Item 10.  Directors and Executive Officers of the Registrant 13
Item 11.  Executive Compensation   .    .    .    .    .    .13
Item 12.  Security Ownership of Certain Beneficial
          Owners and Management    .    .    .    .         .14
Item 13.  Certain Relationships and Related Transaction     .14

                             PART IV
                                
Item 14.  Exhibits, Financial Statement Schedules
          And Reports on Form 8-K  .    .    .    .    .    .14
          Exhibit Index  .    .    .    .    .    .    .     15
          Schedule of Property, Plant and Equipment    .    .16
          Signature Page .    .    .    .    .    .    .     17
                                

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<PAGE>
                 INDEPENDENCE LEAD MINES COMPANY
                     Form 10-K Annual Report
              For the year ended December 31, 1998
                                
                             PART I

ITEM 1. BUSINESS.

     Independence Lead Mines Company (the "Company") is a
     corporation organized under the laws of the State of Arizona
     on September 16, 1929.  The Company is the owner of fifteen
     patented and fourteen unpatented mining claims. This claim
     group (the "property") is situated Northwest of Hecla Mining
     Company's Luck Friday Mine in the Coeur d' Alene Mining
     District, Shoshone County Idaho.  Adjacent is the community
     of Mullan and U.S. Interstate Highway 90.

     Pursuant to the terms of an agreement dated February 8,
     1968, among Hecla Mining Company ("Hecla"), Day Mines, Inc.
     ("Day"), Abot Mining Company ("Abot") and the Company (the
     "Unitization Agreement"), the Eastern portion of the
     Company's Property (approximately five-eighths of the total
     area of the Property) was unitized with certain adjoining
     and near-by properties owned by the Day and Abot into a
     unitized area, consisting of 55 claims, (known as the "DIA
     Area").  Under the terms of the Unitization Agreement, ores
     and minerals in place are owned by the parties thereto in
     the following percentages:
     
          Day (now Hecla by merger)               47.70%
          Independence                            46.30%
          Abot                                     6.00%
     
     By a second agreement also dated February 8, 1968, (the
     "Lease Agreement"), Hecla leased the DIA Area for a period
     of fifty (50) years, subject to a 30-year extension, for the
     purpose of conducting mineral exploration and development of
     the DIA Area and mining such commercial ore as may be
     discovered in the DIA Area by Hecla.  Since inception of the
     Lease Agreement, Hecla has performed exploration and
     development work on the DIA Project at a cost of more than
     $32,000,000 at year end December 31, 1998.  To date
     exploration has revealed a resource estimate of 7,933,418
     tons.  Ore production for 1998 was 193,891 tons and averaged
     18.41 ounces silver, 10.33 % lead and 1.35% zinc per ton.
     
     The Lease Agreement provides that all costs and expenses
     incurred in the exploration, development and operation of
     the DIA Area are to be paid by Hecla subject to the right of
     Hecla to be reimbursed for such costs and expenses, together
     with all advance royalties paid, out of any future net
     profits realized from the operation of the DIA Area.  After
     recovery of Hecla's costs and expenses and amounts paid as
     advance royalties, and the establishment of a three month
     working capital reserve, net profit royalties are to be paid
     to the Company and the other property owners as follows:
     
          Day (now Hecla by Merger)        19.08%
          Independence                     18.52%
          Abot                              2.40%

                                1
                                
<PAGE>
          Hecla, as the lessee, will retain the remaining sixty
     percent (60%) of any net profits realized.  Under the terms
     of the Unitization Agreement, one-half of the first net
     profit royalties received by the Company are to be paid over
     to Day (now Hecla) until Day recovers the sum of $450,000.
     The relationship of the parties to the Agreement may, under
     certain
     
     circumstances, be converted to a joint venture at the option
     of the property owners, where after the property owners
     would become participating, non-operating working interest
     owners who would share profits and expenses in connection
     with the DIA Area in the same ratio as exists pursuant to
     lease arrangement with Hecla described above.

     Until Hecla commences to pay net profit royalties and during
     such period as the Lease Agreement is in effect, Hecla is
     obligated to pay an advance royalty to the Company of $750
     per month subject to increase to $1,500 if production for
     the DIA Area exceeds 2,000 tons per month.

     Pursuant to the terms of the February 8, 1968, agreements,
     Hecla will be obligated to pay a royalty of 18.52 percent of
     defined net profits after Hecla has recouped its costs to
     explore and develop this property from the new discovery to
     Independence Lead Mines Company.

     The Company has no patents, licenses, franchises or
     concessions which are considered by the Company to be of
     importance.  The business is not of a seasonal nature.
     Since the potential products are traded in the open market,
     the Company has no control over the competitive conditions
     in the industry.  There is no backlog of orders.

     There are numerous Federal and State laws and regulation
     related to environmental protection which have direct
     application to mining and milling activities.  The more
     significant of these laws deal with mined land reclamation
     and waste water discharge from mines and milling operations.
     The Company does not believe that these laws and regulations
     as presently enacted will have a direct material adverse
     effect on its operations.

     The current officers and directors of the Company serve
     without compensation and are not considered by the Company
     to be employees.

     The western portion of the Company's property is not under
     the DIA Area agreement.  West Independence, as it is called,
     consists of 10 patented mining claims of which  four (4)
     claims are partly included in the DIA Area agreement.
     Patented acres owned are listed below.
     
                    West Independence Acres 81.362
                    East Independence Acres 91.808
                                         ---------
                    Total Acres            173.170
                                
     On November 10, 1997 present management was informed by
     Hecla that Hecla had given notice of termination of the West
     Independence Agreements in 1993.  The former management had
     been notified of this  by Hecla's certified letter dated
     December 21, 1993.  Former Management did not disclose the
     termination of  the West Independence agreements in the 1993
     10-K.  Erroneous statements as to the status of the West
     Independence continued in the 10-K's for 1994,1995, and
     1996.  Two letters from Hecla dated November 12, 1993 and
     December 21, 1993 regarding the West Independence Agreements
     are missing from the corporate records received from
     previous management.  The minute book is silent on this
     subject.
     
                                2
     
     <PAGE>
     Within the boundaries of the property covered by the West
     Independence agreement were three unpatented claims owned by
     the Company, named Goethals, Panama Number 2 and Silver
     Mountain.  After the termination of the West Independence
     Agreements, the former management failed to make the
     necessary filings and to pay the necessary fees.  Those
     three mining claims lapsed and were lost to Independence
     Lead Mines Company.
     
     These three unpatented claims were re-staked and filed in
     the name of Hunter Mining Company by Don Springer, a former
     geological consultant of Independence Lead mines Company, on
     May 7, 1996.  The Idaho Secretary of State's annual report
     form for 1997 lists the following persons as officers and
     directors of Hunter Mining Company.
     
                         Harry F. Magnuson, President
                         R.M. MacPhee, Secretary/Treasure
                         Tom Magnuson, Director
                         H. James Magnuson, Director
                         
     H. James Magnuson is a former Director of Independence. R.M.
     MacPhee is a former director and was a long time
     Secretary/Treasurer of Independence.
     
     During 1998, Hunter Mining Company offered to return the
     three unpatented claims to Independence for its cost
     involved with these claims and Independence accepted this
     offer.
     
     During 1998, The Company conducted a voluntary share buyback
     program for shareholders with no more than 200 shares, in
     order to relieve those shareholders of the inconvenience and
     cost of brokerage commission.  As result of the buyback
     program, the company purchased a total of 6,793 shares at a
     price of $1.70 per share.  The program was terminated in
     October 1998.
     
ITEM 2. PROPERTIES

     By an agreement dated February 8, 1968 among the Company and
     the owners of other adjacent or neighboring mining
     properties, the Company and the owners of the other
     properties entered into certain agreements, the general
     effect of which was to establish certain vertical boundaries
     between their respective properties and to waive certain
     existing or potential claims to extralateral rights to veins
     or ores found outside of the vertical boundaries of their
     respective properties.  The Property of the Company is
     subject to this agreement.

     Pursuant to existing law, the Company is required to perform
     the equivalent of $100 of work each year on each of its 14
     unpatented claims included in the agreements mentioned in
     paragraph above, or to pay $100.00 per claim as a rental fee
     in order to maintain possessory title to such properties.
     These requirements are performed by Hecla Mining Company
     under the terms of the February 8, 1968 agreements described
     in Item 1 of this report.
     
     In addition the three (3) claims in West Independence not
     included in the above agreements are paid for directly by
     Independence Lead Mine.
     
     Further information regarding the Properties of the Company
     is set forth in this report under "Item 1. Business" and is
     incorporated herein by reference.
     
                                3

<PAGE>
ITEM 3. LEGAL PROCEEDINGS

1.   H.F. Magnuson & Company, the accounting firm, which, prior
     to May 22, 1997 provided accounting, bookkeeping, geological and
     other professional services to Independence Lead Mines Company.
     H.F. Magnuson Company has filed suit in Shoshone County, Idaho in
     case #CV98-34222 to enforce two promissory notes.  One note in
     the amount of $47,800.00 executed by former directors, R.M.
     MacPhee and Dale B. Lavigne, in favor of H.F. Magnuson & Company
     was executed on September 10, 1996 and states interest at nine
     percent (9%) per annum.  The other note is in the principal
     amount of $38,300 and was executed by former directors R.M.
     MacPhee and Dale B. Lavigne in favor of H.F. Magnuson & Company
     on May 13, 1997 and states interest at the rate of nine percent
     (9%) per annum.  H.F. Magnuson & Company also seeks an award of
     its attorney fees and costs in that action.  Independence Lead
     Mines Company, Inc. has denied any liability of Independence Lead
     Mines Company under those notes.  Independence Lead Mines Company
     has also filed a counterclaim against H.F. Magnuson & Company.
     Management believes that the promissory notes will be invalidated
     by the court and believes that Independence Lead Mines Company
     will prevail on its counterclaims.

2.   H.F. Magnuson & Company and former directors, R.M. MacPhee,
     Dale B. Lavigne and Wray Featherstone have filed suit in Shoshone
     County, Idaho case #CV98-34225 against Independence Lead Mines
     Company, Bernard Lannen, Gordon Berkhaug, Forrest Godde, and
     Robert Bunde to validate 60,000 shares of Independence stock
     issued to them prior to May 22, 1997 for alleged past advances of
     expenses, services and as directors fees.  The Plaintiffs also
     seek monetary damages from the Defendants in excess of $10,000
     plus attorney fees and costs for the actions for the Defendants.
     Independence Lead Mines Company, Bernard Lannen, Gordon Berkhaug,
     Forrest Godde, and Robert Bunde have denied the validity of those
     60,000 shares and have denied any liability for monetary damages.
     Independence Lead Mines company and the other named Defendants
     have made counterclaims against the Plaintiffs.  Management
     believes the 60,000 shares of stock claimed by the plaintiffs
     will be invalidated by the court, the Plaintiffs will recover
     nothing from any of the Defendants and the Plaintiffs, including
     Independence Lead Mines Company, will prevail on their
     counterclaim. See note 5 to the financial statements.

     The hearing date for both proceedings has been set for
     December, 1999. Dale Lavigne, a director of the company at
     the time the lawsuits were filed, was a party to the
     lawsuits against the company and its directors.  As a
     consequence, the remaining directors asked for and received
     Mr. Lavigne's resignation from the board in 1998.

ITEM 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS

     There was no shareholder meeting held in 1998.


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                                4
                                
<PAGE>
                             PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.

(a)  The market price ranges of the Company's common stock during
     each quarter of the years 1998 and 1997, respectively, were as
     follows:
<TABLE>
<CAPTION>
               1998                 1997
               -----                -----
               High      Low       High      Low
               -----     ------    -------   -------
<S>       <C>       <C>       <C>       <C>
1st Quarter    1.80      1.50      2.10        1.28
2nd Quarter    1.80      1.55      2.15        1.65
3rd Quarter    1.80      1.10      2.00        1.50
4th Quarter    1.35       .90      2.05        1.65
</TABLE>

(b)  Approximate Number of Equity Security Holders.

     Title of Class (1)            Number of Record Holders
     December 31, 1998
     ------------------            ------------------------------
     Common non-assessable              Approximately 2,300 (1)
     Capital stock, par value
     $1.00 per share
     
     (1)  Included in the number of shareholders of record are shares
       held in "nominee" or "street" name.
     
(c)  No dividends were paid by the Registrant in 1998 or 1997,
     and the Company has no plans to pay a dividend in the foreseeable
     future.


ITEM 6.   SELECTED FINANCIAL DATA

          Selected Income Statements Data:
<TABLE>
<CAPTION>
                     Year ended December 31,
                 ------------------------------
                  1998       1997      1996       1995         
                 -----      -----     ------      -----
<S>            <C>        <C>        <C>        <C>        
Net Revenues     3,592       -0-        -0-        -0-         
                                                               
Net Income      (29,023)   (34,788)  (51,353)   (22,868)       
(Loss)
                                                               
Net Income                                                     
(Loss)          (.0067)    (.0087)    (.0061)    (.0058)
Per share
</TABLE>

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                                5

<PAGE>
Selected Balance Sheets Data:
<TABLE>
<CAPTION>
                       Year ended December 31,
                  1998       1997      1996       1995                               
                 ------     ------    ------     ------
<S>            <C>        <C>        <C>        <C>                                  
Current Assets   60,086     8,883       396        158                               
                                                                                     
Current         105,065    105,185    79,160     88,319                              
Liabilities
                                                                                     
Working         (44,979)   (96,302)  (78,764)   (88,161)                             
Capital
                                                                                     
Total Assets   3,296,413  3,244,105  3,235,618  3,235,380                            
                                                                                     
Deferred        301,250    283,250    266,000    253,250                             
Income
                                                                                     
Long-Term Debt    -0-        -0-        -0-        -0-                               
                                                                                     
Stockholders'  2,890,098  2,855,670  2,890,458  2,893,811                            
Equity
</TABLE>
                                
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
     CONDITION AND RESULT OF
      OPERATIONS.

     Liquidity.  The liquidity of the Company increased over the
     past year, primarily due the proceeds from a private
     placement of 50,000 shares of company stock.  It is
     anticipated that working capital will be provided in the
     future by advanced royalties and proceeds from the sale of
     company stock.

     CAPITAL RESOURCES.  The Property of  the Company is leased
     to Hecla Mining Company.  Capital improvements are to paid
     for by Hecla pursuant to the terms of the leases.  The
     Company has no long-term debt.

     RESULTS OF OPERATIONS.  The Company is in the exploratory
     and development stage and has no operations.  The general
     and administrative costs remained substantially constant
     with 1997 levels in 1998.Revenue of $3,592 was realized in
     1998 from the sale of timber and interest income.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

     The Company's financial statements appear following Item 9.
     See index to Financial Statements at Page 12 of this report.

ITEM 9.  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

     Not applicable.

                                6
                                
<PAGE>

                  INDEX TO FINANCIAL STATEMENTS
          Filed as part of the Annual Report Form 10-K
                        December 31, 1998

                                                       Page

FINANCIAL STATEMENTS:

     Balance Sheet, December 31, 1998 and 1997         .    8

     Statement of Operations and Deficit Accumulated
     During The Exploratory Stage for the Years Ended
     December 31, 1998, 1997 and 1996   .    .    .    .    9

     Statement of Cash flows, for the years ended
     December 31, 1998, 1997 and 1996   .    .    .    .    10

     Notes to Financial Statements, December 31, 1998
     And 1997   .     .     .     .     .    .    .    .    11


     The Company's financial statements are unaudited in reliance
     upon Section 210.3-11 of Regulations S-X adopted by the 
     Securities and Exchange Commission.


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                                7
                                
<PAGE>
                 INDEPENDENT LEAD MINES COMPANY
                 (An Exploration Stage Company)
                                
                            PART III
                                
                    BALANCE SHEET - UNAUDITED
                   December 31, 1998 and 1997

                           A S S E T S
<TABLE>
<CAPTION>
CURRENT ASSETS                         1998         1997   
                                     ------      -------
<S>                                <C>         <C>       
     Cash                            55,678        8.883   
     Royalties Receivable             1,500            -   
                                   --------    ---------
          Total current assets       60,086        8,883   
                                   --------    ---------

PROPERTY AND EQUIPMENT, at cost                            
     Equipment                            -            -   
     Less accumulated depreciation        -            -   
                                   --------    ---------   
                                     
     Mining property              3,048,407    3,047,302   
                                   --------    --------
                                  3,048,407    3,047,302   
                                   --------    ---------
 
OTHER ASSETS                                               
     Unrecovered exploration costs  187,920      187,920   
                                   --------    ---------
          TOTAL ASSETS            3,296,413    3,244,105   
                                   ========    =========   

              LIABILITIES AND STOCKHOLDERS' EQUITY
                                
CURRENT LIABILITIES                    1998           1997  
                                    -------         ------
     Accounts payable                 6,333          3,905  
     Advances payable                86,100         86,100  
     Interest payable                12,632          5,180  
     Loans from Shareholders              -         10,000  
                                   --------      ---------
       Total current liabilities    105,065        105,185  
                                   --------      ---------
DEFERRED INCOME                     301,250        283,250  
                                   --------      ---------  
STOCKHOLDERS' EQUITY                                        
   Common stock, $1.00 par value;                           
   authorized 5,000,000 shares;
   issued 4,324,306shares (Note5) 4,369,993      4,324,306  
   Additional Paid in               
   Capital(deficit)                (119,873)      (137,630)
                                   ---------     ---------                                
                                   4,250,120     4,186,668  
                                                            
   Less deficit accumulated       
    during the Exploratory stage  (1,360,022)   (1,330,998)
                                   ---------     ---------
Total Stockholder's equity         2,890,098     2,855,670  
                                   ---------     ---------
Total Liabilities & Stockholders'   
    equity                         3,296,413     3,244,105
                                   =========     =========
The accompanying notes are an        
integral part of these financial
Statements.
</TABLE>
                                8
                                
<PAGE>
                 INDEPENDENT LEAD MINES COMPANY
                 (An Exploration Stage Company)

   STATEMENT OF OPERATIONS AND DEFICIT ACCUMULATED DURING THE
                  EXPLORATORY STAGE - UNAUDITED
        For the years ended December 31, 1998, 1997, 1996
<TABLE>
<CAPTION>
REVENUE                              1998         1997        1996  
                                  -------       ------      ------
<S>                              <C>         <C>         <C>       
     Sales - Timber                 2,091            -           -  
     Interest Income                1,501            -           -  
                                  -------    ---------    --------
                                    3,592            -           -  
EXPENSES                          -------    ---------    --------  
   Management and directors fees $           $            $ 24,000  
   Licenses and fees                1,372          290         560  
   Office expense                   2,661        2,939       3,131
   Office services                    497        4,900       8,445  
   Geological                           -        2,050       7,169  
   Interest                         7,810        7,004       6,535  
   Legal                           14,233        9,671       1,513  
   Accounting                       1,450          877           -  
   Shareholder & Public Relations   4,592        7,057           -  
                                  -------    ---------    --------
                                   32,615       34,788     $51,353  
                                  -------    ---------    --------
                                                                    
NET LOSS                           29,023       34,788      51,353  
                                                                    
DEFICIT, accumulated during the                                     
    exploratory stage, beginning
     of year                    1,330,999    1,296,210   1,244,857  
                                ---------    ---------   ---------
DEFICIT, accumulated during the                                     
    exploratory stage, end of   1,360,022    1,330,998   1,296,210  
     year                       =========    =========   =========                        =
LOSS PER SHARE                      .0067        .0087       .0061 
                                  =======    =========    ======== 
</TABLE>

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


                                9
                                
<PAGE>
                                
                 INDEPENDENT LEAD MINES COMPANY
                 (An Exploration Stage Company)

               STATEMENT OF CASH FLOWS - UNAUDITED
        For the years ended December 31, 1998, 1997, 1996
<TABLE>
<CAPTION>
CASH FLOWS FROM OPERATING ACTIVITIES      1998        1997       1996  
                                        ------      ------     ------
<S>                                  <C>          <C>        <C>       
  Net loss                            (29,023)    (34,788)   (22,868)  
  Adjustment to reconcile net                                          
  Loss to net cash provided by                                         
  Operating activities                                                 
     1.  Increase (decrease) in cash                                   
          Due to changes in assets                                     
          And liabilities                                              
          Receivable                   (1,500)           -          -  
          Accounts payable               2,428     (9,119)      2,124  
          Deferred income               18,000      17,250     12,750  
          Interest payable               7,452     (1,356)        917  
                                       -------    --------    ------- 
          Net cash used by                                             
          Operating activities         (2,643)    (28,013)    (35,562)  
                                      --------    --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES                                   
  Issuance of capital stock             75,000       -         24,000  
  Net borrowing on short-term         (10,000)      36,500     11,800  
   advances                          ---------     -------    -------

                                        65,000      36,500     35,800  
                                     ---------     -------    -------
 
CASH FLOW FROM INVESTING ACTIVITIES                                    
  Purchase of Mining Claims            (1,105)           -          -  
  Purchase of Company's Capital       (11,549)           -          -  
Stock
  Purchase of Investments              (2,908)           -          -  
                                     ---------     -------    -------
                                      (15,562)           -          -  
                                     ---------     -------    -------
Net increase (decrease) in cash         46,795       8,487        238  
                                                                       
CASH, beginning of year                  8,883         396        158  
                                      --------     -------    -------
CASH, end of year                       55,678       8,883        396  
                                     =========     =======    =======  
</TABLE>
DISCLOSURE OF ACCOUNTING POLICY                                        
     For the years ended December 31, 1998, 1997 and 1996, the
     Company had no cash equivalents.
     
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
<TABLE>
<CAPTION>
                                          1998      1997      1996
                                        ------    ------    ------
<S>                                    <C>        <C>       <C>               
     Interest paid                           0     8,324     5,618
                                        ======    ======    ======
     Taxes paid - State of Idaho            10        10        10
                                        ======    ======    ======

The accompanying notes are an integral part of these financial
statements.
</TABLE>
                               10
                                
<PAGE>
                 INDEPENDENT LEAD MINES COMPANY
                 (An Exploration Stage Company)
                                
                  NOTES TO FINANCIAL STATEMENTS
                   December 31, 1998 and 1997

Note 1 -  Company business - The Company was incorporated under
          the laws of the State of Arizona on September 16, 1929.
          The Company is presently in the exploratory stage.

Note 2 -  The significant accounting principles and practices of
          the Company are as follows:

     a.   The financial statements are prepared on the accrual basis
          of accounting.

     b.   In accordance with Statement No. 7 of the Financial
          Accounting Standards Boards, the Company charges current costs
          related to exploration and development to operations.

     c.   The Company depreciated its equipment on the straight-line
          method over their estimated useful life of 7 years.  The Company
          currently has no depreciable property.

     d.   Earning per share have been computed using the weighted
          average of shares outstanding during the period.

Note 3 -  Company property - The Company has 15 patented and 17
          unpatented claims situated in the Hunter Mining
          District, Shoshone County, Idaho.  On February 8, 1968,
          the Company entered into an agreement with Day Mines,
          Inc., Abot Mining Company and Hecla Mining Company.
          Certain properties of the four companies were combined
          for purposes of exploration and development.  These
          properties were referred to as the DIA Area. The DIA
          Area consists of 9 patented and 14 unpatented claims of
          Independence Lead Mines Company.  Hecla Mining Company
          is the exploring and developing company.  The DIA
          agreement allows Hecla Mining Company to recover all of
          its exploration and development cost, advance royalties
          paid, and to build a three months' reserve for working
          capital prior to splitting profits.  Independence is to
          receive 18.52% of the profits, and under the terms of
          the DIA agreement the Company receives an advance of
          $1,500 for each month 2,000 tons of ore is mined.

Note 4 -  In addition to cash costs in the amount of $23,302, the
          amount reflected in the balance sheet as the cost of
          mining claims reflects the par value assigned to
          3,024,000 shares of stock issued for $3,034,000.  The
          underlying cost basis of the mining claims is unknown
          and unobtainable.  Since it was an accepted accounting
          practice at the time of the transaction, all subsequent
          financial statements have used the par value of the
          shares issued as the cost basis of the mining claims.
          The Company has considered revaluation of the mining
          properties, but feels that to revalue them at an amount
          that has no basis would be misleading.  The Company
          feels that the claims are of value, as Hecla Mining
          Company has continued with its lease since 1968.
                               11
Note 5 -  As reported in previous forms 10-K by management, the
          stock ledger and shareholders list in the past
          indicated more shares issued and outstanding than the
          shares authorized and reported on the financial
          statements.  In spite of the apparent over-issuance of
          stock, on September 10, 1996 the previous board of
          directors authorized the issuance of 30,000 shares to
          H.F. Magnuson & Co. and 30,000 shares to themselves as
          compensation for services.  Immediately prior to the
          issuance of the 60,000 shares, the shares issued and
          outstanding according to the shareholder list exceeded
          authorized capitalization by 255,806 shares.  Shares
          outstanding, according to the shareholders list, were
          understated in the company's then - current form 10-K
          by 325,759 shares.  Current management has not found
          what it considers to be adequate substantiation that
          the Company was not over-capitalized when the 60,000
          shares were issued.  Because of this, the recipients of
          the shares have been requested to return the shares to
          the company.  This request has been refused by all
          recipients.

Note 6 -  As shown in the financial statements, the Company
          incurred net losses of $29,023, $34,788 and $51,353,
          during the years ending December 31, 1998, 1997, and
          1996, respectively, and on these dates, the Company's
          current liabilities exceeded current assets by $44,979,
          $96,302and $78,764. These factors indicate doubt as to
          the ability of the Company to continue business on a
          going concern basis.  Current liabilities at December
          31, 1998 include advances payable to H.F. Magnuson &
          Co. of $86,100 plus accrued interest of $12,632.  These
          liabilities are being disputed by the Company and
          subsequent to December 31, 1997 have become involved in
          litigation which is still ongoing as of December 31,
          1998.  The Company has taken the position that the
          advances and accrued interest are not valid claims
          against the Company. The financial statements do not
          include any adjustments relating to the recoverability
          of recorded asset amounts or the amounts and
          classification of liabilities that might be necessary
          should the company be unable to continue in existence.

Note 7 -  Statements of income, cash flows, and shareholders'
          equity since the inception of the Company, September
          16, 1929, through December 31, 1998 have not been
          presented. Generally accepted Accounting principles
          require that such statements be presented when
          financial statements purport to present financial
          position and results of operations for a development
          stage company.
          
          Early records of income and expense for the Company are incomplete.
                                

  [The balance of this page has been intentionally left blank.]
                                
                                

                               12
                                
<PAGE>
                 INDEPENDENT LEAD MINES COMPANY
                     Form 10-K Annual Report
              For the year ended December 31, 1998
                                
                            PART III
                                
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
Name of Executive                  
Officers and Directors             Brief profile of
And Position Held            Age   Officers and Directors
------------------           ----  -----------------------
                                   
Bernard C. Lannen            62    Semi Retired
President and Director             Director of Lucky
                                   Friday Extension Mining
                                   Company
                                   
Wayne L. Schoonmaker         62    Certified Public Accountant
Secretary/Treasurer                Secretary/Treasurer of
                                   Hanover Gold Company Inc.
                                   Treasurer of Metalline Mining
                                   Company.
                                   
Forrest G. Godde             82    President of Corporate
                                   Ranches in
Director                           California and Nevada,
                                   Director of Mineral Mountain
                                   Mining
                                   
Robert Bunde                 60    Semi retired farmer with
                                   investments in
Director                           The mining field.
                                   
Gordon Berkhaug              64    Management of real estate
                                   investments
Director                           With experience in the mining
                                   field
                                   
     The by-laws of the Company provide that the Directors serve
until the next annual meeting of shareholders or until their
respective successors have been duly elected and qualified.
Officers serve at the discretion of the Board of Directors.

ITEM 11.  EXECUTIVE COMPENSATION

     (a)  The following table sets forth all remuneration paid by the
          Company during the fiscal year ended December 31, 1998, for
          services in all capacities to all directors and executive
          officers of the Company.
                                
 Name of Individual      Capacities in                
 Or Number in Group       Which served          Compensation
--------------------    ----------------      ------------------
                                            
Five persons in the      All executive               -0-
group                     officers and
                      Directors as a group  
                                
  No retirement benefit, bonus or other remuneration plans are
      in effect with respect to the Company's officers and
                           directors.
                                
      The Company has no standard or other arrangements for
                     compensating directors.
                               13
<PAGE>
                                
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

     To the knowledge of the Company, no person beneficially
     owned more than five percent (5%) of any class of the
     Registrant's voting securities as of January 31, 1999.

     The following tabulation shows the beneficial ownership's of
     the Company's officers and directors in the securities of
     the Company as of January 31, 1999:
<TABLE>
<CAPTION>
                           Shares of             Approximate
                          Common Stock          Percentage of
        Name           Beneficially Owned           Class
     ----------       --------------------       ----------
<S>                       <C>                   <C>
Bernard C. Lannen               171,082               3.91
Wayne L. Schoonmaker              4,000                .09
Forrest G. Godde (1)             95,000               2.17
Robert Bunde                    152,500               3.49
Gordon Berkhaug                  68,275               1.56
                                                          
</TABLE>
     All directors and executive officers of the Company as a
     group (5 persons in a group) own 490,857 shares or
     approximately 11.23 percent of the Company are outstanding
     voting securities.
     
     (1)  Includes 45, 000 shares that represent Mr. Godde's 50%
       interest in the Godde 1980 Trust.
     
     During 1998, the Company had a private placement of 50,000
     shares, primarily to the Company's officers and directors.
     The purpose of the private placement was to raise working
     capital for company operations.  The Company realized
     $75,000 from the sale.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTION

Not applicable.

                             PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K

     (b)  1.  Financial Statements - See index to Financial Statements
          at page 12 of this report

     2.   Financial Statement Schedules V - Statement of Property,
       Plant and Equipment, Page 25
       
       Other financial statement schedules are omitted because
       of conditions under which they are required, or because
       the required information given in the financial
       statements or notes thereto.

     (c)  The company filed its report on Form 8-K during the last
          quarter of 1992.

     (d)  Exhibits - No additional exhibits are filed as a part of
          this report.  The Exhibit Index appears at Page 23 of this
          report.

                               14
<PAGE>
                 INDEPENDENT LEAD MINES COMPANY
                     Form 10-K Annual Report
              For the year ended December 31, 1998
                                
                                
                          EXHIBIT INDEX
                                
Exhibits

     3.1  Articles of Incorporation of Independence Lead Mines, Inc.,
          as amended, previously filed as Exhibit 3.1 to form 10-K for 1983
          and incorporated by reference herein.

     3.2  Bylaws of Independence Lead Mines Company, as amended,
          previously filed as Exhibit 3.2 to form 10-K for 1983 and
          incorporated by reference herein.

     10.1 Unitization Agreement dated February 8, 1968 among Day
          Mines, Inc., Independence Lead Mines company and Abot Mining
          Company, previously filed as Exhibit 10.1 to Form 10-K for 1983
          and incorporated by reference herein.

     10.2 Agreement dated February 8, 1968 among Hecla Mining Company,
          Day Mines, Inc., Independence Lead Mines Company and Abot Mining
          Company, previously filed Exhibit 10.2 to Form 10-K for 1983 and
          incorporated by reference herein.
     
     10.3 Agreement dated February 8, 1968 among Independence
          Lead Mines Company, Day Mines, Inc., Abot Mining
          Company, Wall Street Mining Company, Hunter Creek
          Mining Company, Lucky Friday Extension Mining Company,
          Hecla Mining Company and the Bunker Hill Mining Company
          relating to extralateral and intralimital rights to
          mining claims, previously filed as Exhibit 10.7 to Form
          10-K for 1983 and incorporated by reference herein.
     
      [The balance of this page has been intentionally left blank.]
     
                               15
                                
                                
<PAGE>
              INDEPENDENCE LEAD MINES COMPANY
                (AN EXPLORATION STAGE COMPANY)

               PROPERTY, PLANT AND EQUIPMENT
    FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996


<TABLE>
<CAPTION>
                Balance,                                           Balance
                Beginning                                Other     End of
                Of year      Addition   Retirements    Changes     Year
                ---------    --------   -----------    ---------   ------
<S>             <C>          <C>         <C>          <C>       <C>
December                                                        
31,1998
Equipment                0          -             -                   -0-
                 ---------   --------      --------             ---------       
Mining Property  3,047,302      1,105             -             3,048,407
Less deferred      283,250     18,000             -               301,250
credits          ---------   --------      --------             ---------
     Net         2,764,052   (16,895)             -              2747,157
                 ---------   --------      --------             ---------
                                                                    
     Total       2,764,052   (16,895)             -    NONE     2,747,157
                 =========   ========     =========   ======    =========
                                                                
December                                                        
31,1997
Equipment              118          -         (118)                     -
                 ---------   --------     ---------             ---------
Mining Property  3,047,302                                      3,047,302
Less deferred      266,000     17,250             -               283,250
credits          ---------   --------     ---------             ---------
     Net         2,781,302   (17,250)         (118)             2,764,052
                 ---------   --------     ---------             ---------
                                                                    
     Total       2,781,420   (17,250)         (118)    NONE     2,794,170
                 =========   ========     =========   ======    =========

December                                                        
31,1996
Equipment              118          -             -                   118
                 ---------   --------      --------             ---------
Mining Property  3,047,302          -             -             3,047,302
Less deferred      253,250     12,750             -               266,000
credits          ---------   --------      --------             ---------
     Net         3,794,052   (12,750)             -             2,781,302
                 ---------   --------      --------             ---------
                                                                         
     Total       3,794,170   (12,750)       NONE       NONE     2,781,420
                 =========   ========      ======     ======    =========
</TABLE>
                               16
                                
<PAGE>
                           SIGNATURES
                                
     Pursuant to the requirement of Section 13 of the Securities
     Exchange Act of 1934, the Registrant has duly caused this
     report to be sign on its behalf by the undersigned,
     thereunto duly Authorized.

                                   INDEPENDENCE LEAD MINES
COMPANY

                              By:  /s/ Bernard C. Lannen
                                   -----------------------------
                                   Bernard C. Lannen, its President
                                   and Chief Administrative Officer
                                   Dated: March 13, 1999

                              By:  /s/ Wayne L. Schoonmaker
                                   ------------------------------
                                   Wayne L. Schoonmaker, its Principal
                                   Accounting Officer
                                   Dated: March 13, 1999

     Pursuant to the requirements of the Securities Exchange Act
of 1934, this Report has been signed below by the following
persons on behalf of the Registrant and in the capacities and as
of the date indicated.


     By:   /S/ BERNARD C. LANNEN By:    /S/ WAYNE L. SCHOONMAKER
           ---------------------        ------------------------
           Bernard C. Lannen            Wayne L. Schoonmaker
           Director                     Secretary and Treasurer
           Dated: March 13, 1999        Dated: March 13, 1999

     By:   /S/ FORREST G. GODDE  By:    /S/ GORDON BERKHAUG
           --------------------         -------------------
           Forrest G. Godde             Gordon Berkhaug
           Director                     Director
           Dated: March 13, 1999        Dated: March 13, 1999

     By:   /S/ ROBERT BUNDE
           ----------------
           Robert Bunde
           Director
           Dated: March 13, 1999


                               17