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

                                   FORM 10-QSB

                 Quarterly Report Under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934


                     For the Period ended December 31, 2005

                        Commission File Number 333-126674


                        WALLACE MOUNTAIN RESOURCES CORP.
                 (Name of small business issuer in its charter)


        Nevada                                                  20-2597168
(State of incorporation)                                (IRS Employer ID Number)


                        #29B Ebony Tower, President Park
                              99 Sukhumvit 24 Road
                             Bangkok 10110 Thailand
                                 +(662)262-9347
          (Address and telephone number of principal executive offices)


                                James B. Parsons
                                Parsons Law Firm
                     2070 Skyline Tower, 10900 NE 4th Street
                               Bellevue, WA 98004
                      Phone (425)451-8036 Fax (425)451-8568
            (Name, address and telephone number of agent for service)

Check 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 [ ]

Check whether the registrant is an accelerated filer (as defined in Rule 12b-2
of the Exchange Act). Yes [X] No [ ]

Check whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [X] No [ ]

There were 3,400,000 shares of Common Stock outstanding as of Dec. 31, 2005.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS

The un-audited quarterly financial statements for the 9 months ended December
31, 2005, prepared by the company, immediately follow.





                                       1
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                                 BALANCE SHEET

<TABLE>
<CAPTION>
                                                                 Unaudited            Audited
                                                                   As of               As of
                                                             December 31, 2005     March 31, 2005
                                                             -----------------     --------------
<S>                                                           <C>                <C>
                                     ASSETS

Current assets
  Cash                                                             $ 39,568           $  5,000
                                                                   --------           --------
      Total current assets                                           39,568              5,000

Mining Claims                                                            --                 --
                                                                   --------           --------

Total assets                                                       $ 39,568           $  5,000
                                                                   ========           ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable                                                 $     --           $     --
  Loan payable to a director                                          5,268                 --
                                                                   --------           --------
      Total current liabilities                                       5,268                 --
                                                                   --------           --------

      Total liabilities                                               5,268                 --

Stockholders' equity
  Common stock; $.001 par value; 75,000,000 shares
   authorized, 3,400,000 and 1,000,000 shares issued and
   outstanding as of December 31, 2005 and March 31, 2005             3,400              1,000
  Additional paid-in capital                                         49,600              4,000
  Accumulated deficit                                               (18,700)                --
                                                                   --------           --------
      Total stockholders' equity                                     34,300              5,000
                                                                   --------           --------

      Total liabilities and stockholders' equity                   $ 39,568           $  5,000
                                                                   ========           ========
</TABLE>

                 See Accompanying Notes to Financial Statements

                                       2
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                            STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                 Unaudited
                                                                                Period from
                                                         Unaudited             March 30, 2005
                                                      October 1, 2005        (Date of inception)
                                                          through                 through
                                                     December 31, 2005        December 31, 2005
                                                     -----------------        -----------------
<S>                                                    <C>                      <C>
Revenue                                                $        --              $        --

Operating expenses
  Professional fees                                             --                    3,700
  General and administrative                                 2,385                   15,000
                                                       -----------              -----------

      Total operating expenses                               2,385                   18,700
                                                       -----------              -----------

      Loss from operations                                  (2,385)                 (18,700)

Other income (expenses):
  Other expense                                                 --                       --
  Interest expense                                              --                       --
                                                       -----------              -----------
      Total other income (expenses)                             --                       --
                                                       -----------              -----------

      Loss before provision for income taxes                (2,385)                 (18,700)
Provision for income taxes                                      --                       --
                                                       -----------              -----------

Net loss                                               $    (2,385)             $   (18,700)
                                                       -----------              -----------

Basic and diluted loss per common share                $     (0.00)             $     (0.01)
                                                       ===========              ===========
Basic and diluted weighted average
 common shares outstanding                               2,869,565                2,655,072
                                                       ===========              ===========
</TABLE>

                 See Accompanying Notes to Financial Statements

                                       3
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                       STATEMENT OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                       Common Stock          Additional                    Total
                                                    --------------------      Paid-in     Accumulated   Stockholders'
                                                    Shares        Amount      Capital       Deficit        Equity
                                                    ------        ------      -------       -------        ------
<S>                                               <C>            <C>         <C>          <C>            <C>
Balance at March 30, 2005 (Date of inception)             --      $   --      $    --      $     --       $     --

Common Stock Issued for Cash                       1,000,000       1,000        4,000            --          5,000

Net loss                                                  --          --           --            --             --
                                                   ---------      ------      -------      --------       --------

Balance, March 31, 2005                            1,000,000      $1,000      $ 4,000      $     --       $  5,000
                                                   =========      ======      =======      ========       ========

Common Stock Issued for Mining Claims              1,600,000       1,600        6,400            --          8,000

Net loss                                                  --          --           --       (12,229)       (12,229)
                                                   ---------      ------      -------      --------       --------

Balance, June 30, 2005                             2,600,000      $2,600      $10,400      $(12,229)      $    771
                                                   =========      ======      =======      ========       ========

Net loss                                                  --          --           --        (4,086)        (4,086)
                                                   ---------      ------      -------      --------       --------

Balance, September 30, 2005                        2,600,000      $2,600      $10,400      $(16,315)      $ (3,315)
                                                   =========      ======      =======      ========       ========

Common Stock Issued for Cash December 1, 2005        800,000         800       39,200            --         40,000

Net loss                                                  --          --           --        (2,385)        (2,385)
                                                   ---------      ------      -------      --------       --------

Balance, December 31, 2005                         3,400,000      $3,400      $49,600      $(18,700)      $ 34,300
                                                   =========      ======      =======      ========       ========
</TABLE>

                 See Accompanying Notes to Financial Statements

                                       4
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                            STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                  Unaudited
                                                                                 Period from
                                                           Unaudited            March 30, 2005
                                                        October 1, 2005      (Date of inception)
                                                            through                through
                                                       December 31, 2005      December 31, 2005
                                                       -----------------      -----------------
<S>                                                     <C>                    <C>
Cash flows from operating activities:
  Net loss                                                 $ (2,385)              $(18,700)
  Adjustments to reconcile net loss to
  Changes in operating assets and liabilities:
  Loan payable to a director                                  1,250                  4,018
                                                           --------               --------
      Net cash used by operating activities                  (1,135)               (14,682)

Cash flows from investing activities:
  Purchase of property and equipment                             --                     --
                                                           --------               --------
      Net cash used by investing activities                      --                     --

Cash flows from financing activities:
  Proceeds from issuance of common stock                     40,000                 53,000
                                                           --------               --------
      Net cash provided by financing activities              40,000                 53,000
                                                           --------               --------

Net increase in cash                                         38,865                 38,318

Cash, beginning of period                                       703                     --
                                                           --------               --------

Cash, end of period                                        $ 39,568               $ 38,318
                                                           ========               ========

Supplementary cash flow information:
  Cash payments for income taxes                           $     --               $     --
                                                           ========               ========
  Cash payments for interest                               $     --               $     --
                                                           ========               ========
</TABLE>

                 See Accompanying Notes to Financial Statements

                                       5
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS

1. DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES

   DESCRIPTION  OF BUSINESS AND HISTORY - Wallace  Mountain  Resources  Corp., a
   Nevada  corporation,  (hereinafter  referred to as the  "Company" or "Wallace
   Mountain")  was  incorporated  in the State of Nevada on March 30, 2005.  The
   Company was formed to engage in the acquisition,  exploration and development
   of natural resource properties of merit.

   The Company operations have been limited to general administrative operations
   and is considered a (An Exploration Stage Company) company in accordance with
   Statement of Financial Accounting Standards No. 7.

   MANAGEMENT OF COMPANY - The company filed its articles of incorporation  with
   the Nevada Secretary of State on March 30, 2005,  indicating Sandra L. Miller
   on behalf of Resident Agents of Nevada , Inc. as the sole  incorporator.  The
   list of officers  filed with the Nevada  Secretary  of State on April 1, 2005
   indicate Robert Gelfand as the President, Secretary, and Treasurer.

   GOING CONCERN - The Company incurred net losses of approximately $18,700 from
   the period of March 30, 2005 (Date of  Inception)  through  December 31, 2005
   and has  commenced  limited  operations,  rather,  still  in the  exploration
   stages,  raising substantial doubt about the Company's ability to continue as
   a going concern.  The Company will seek additional sources of capital through
   the issuance of debt or equity  financing,  but there can be no assurance the
   Company will be successful in accomplishing its objectives.

   The ability of the Company to continue  as a going  concern is  dependent  on
   additional  sources of capital and the  success of the  Company's  plan.  The
   financial  statements do not include any adjustments  that might be necessary
   if the Company is unable to continue as a going concern.

   YEAR END - The Company's year end is March 31.

   USE OF ESTIMATES - The  preparation of consolidated  financial  statements in
   conformity with generally accepted accounting  principles requires management
   to make estimates and assumptions  that affect the reported amounts of assets
   and  liabilities  and disclosure of contingent  assets and liabilities at the
   date of the  financial  statements  and the  reported  amounts of revenue and
   expenses during the reporting period.  Actual results could differ from those
   estimates.

   INCOME TAXES - The Company  accounts for its income taxes in accordance  with
   Statement  of  Financial   Accounting   Standards  No.  109,  which  requires
   recognition   of  deferred  tax  assets  and   liabilities   for  future  tax
   consequences  attributable  to  differences  between the financial  statement
   carrying  amounts of existing assets and liabilities and their respective tax
   bases and tax credit carry forwards.  Deferred tax assets and liabilities are
   measured  using enacted tax rates  expected to apply to taxable income in the
   years in which those  temporary  differences  are expected to be recovered or
   settled. The effect on deferred tax assets and liabilities of a change in tax
   rates is  recognized  in operations in the period that includes the enactment
   date.

   Management  feels the Company will have a net operating  loss carryover to be
   used for future years. The Company has not established a valuation  allowance
   for  the  full  tax  benefit  of the  operating  loss  carryovers  due to the
   uncertainty regarding realization.

   NET  LOSS PER  COMMON  SHARE - The  Company  computes  net loss per  share in
   accordance  with SFAS No.  128,  Earnings  per Share (SFAS 128) and SEC Staff
   Accounting Bulletin No. 98 (SAB 98). Under the provisions of SFAS 128 and SAB
   98, basic net loss per share is computed by dividing  the net loss  available
   to common  stockholders  for the  period by the  weighted  average  number of
   shares of common stock  outstanding  during the period.  The  calculation  of
   diluted net loss per share gives effect to common stock equivalents; however,
   potential common shares are excluded if their effect is antidilutive. For the
   period from March 30, 2005 (Date of Inception)  through December 31, 2005, no
   options and warrants were excluded from the  computation of diluted  earnings
   per share because their effect would be  antidilutive.  See Note 7 Subsequent
   Events.

                                       6
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

   REVENUE  RECOGNITION  -  The  Company  has  no  revenues  to  date  from  its
   operations.

   LEGAL  PROCEDURES  - The  Company is not aware of, nor is it  involved in any
   pending legal proceedings.

   STOCK-BASED  COMPENSATION - The Company applies  Accounting  Principles Board
   ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and Related
   Interpretations,  in accounting for stock options issued to employees.  Under
   APB No. 25,  employee  compensation  cost is recognized  when  estimated fair
   value of the underlying  stock on date of the grant exceeds exercise price of
   the stock option. For stock options and warrants issued to non-employees, the
   Company applies SFAS No. 123, Accounting for Stock-Based Compensation,  which
   requires the  recognition of  compensation  cost based upon the fair value of
   stock options at the grant date using the Black-Scholes option pricing model.

   The following  table  represents the effect on net loss and loss per share if
   the  Company  had  applied  the  fair  value  based  method  and  recognition
   provisions  of Statement of Financial  Accounting  Standards  (SFAS) No. 123,
   "Accounting   for   Stock-Based   Compensation",   to  stock-based   employee
   compensation for the period ended December 31, 2005:

                                                                         2005
                                                                       --------
      Net loss, as reported                                            $(18,700)
      Add:    Stock-based employee compensation expense
              included in reported loss, net of related tax effects          --
      Deduct: Total stock-based employee compensation
              expense determined under fair value based methods
              for all awards, net of related tax effects                     --
                                                                       --------

           Pro forma net loss                                          $(18,700)
                                                                       ========
      Net loss per common share:
        Basic and fully diluted loss per share, as reported            $  (0.00)
                                                                       ========
        Basic and fully diluted loss per share, pro forma              $  (0.00)
                                                                       ========

   There were no stock options  granted for the period ended  December 31, 2005.
   There are additionally no written or verbal agreements related to the sale of
   any stock,  option or warrants of the  Company's  common stock as of December
   31, 2005. See Note 7 Subsequent Events.

   In December 2002, the FASB issued SFAS No. 148,  "Accounting  for Stock-Based
   Compensation-Transition  and Disclosure".  SFAS No. 148 amends the transition
   and  disclosure  provisions  of  SFAS  No.  123.  The  Company  is  currently
   evaluating SFAS No. 148 to determine if it will adopt SFAS No. 123 to account
   for employee  stock  options  using the fair value method and, if so, when to
   begin transition to that method.

   NEW ACCOUNTING PRONOUNCEMENTS -

   In December  2004, the FASB issued SFAS No. 123 (revised  2004).  Share-Based
   Payment,  which is a revision of SFAS No.  123,  Accounting  for  Stock-Based
   Compensation.  SFAS No. 123(R)  supersedes APB Opinion No. 25, Accounting for
   Stock Issued to Employees,  and amends SFAS No. 95,  Statement of Cash Flows.
   Generally,  the  approach  in SFAS No.  123(R)  is  similar  to the  approach
   described in SFAS No. 123. However,  SFAS No. 123(R) requires all share-based
   payments to employees,  including  grants of employee  stock  options,  to be
   recognized  in the income  statement  based on their fair  values.  Pro forma
   disclosure  is no longer an  alternative.  The new standard will be effective
   for the Company in the first  interim or annual  reporting  period  beginning
   after  December 15, 2005.  The Company  expects the adoption of this standard
   will have a material impact on its financial statements.

                                       7
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

   In November 2004, the FASB issued SFAS No. 151, Inventory Costs, an amendment
   of ARB No. 43,  Chapter 4. SFAS No.  151 amends the  guidance  in ARB No. 43,
   Chapter 4, Inventory Pricing,  to clarify the accounting for abnormal amounts
   of  idle  facility  expense,  freight,  handing  costs,  and  spoilage.  This
   statement  requires that those items be recognized as current  period charges
   regardless of whether they meet the criterion of "so abnormal"  which was the
   criterion specified in ARB No. 43. In addition,  this Statement requires that
   allocation of fixed  production  overheads to the cost of production be based
   on normal  capacity  of the  production  facilities.  This  pronouncement  is
   effective for the Company  beginning October 1, 2005. The Company has not yet
   assessed the impact on adopting this new standard.

   In December  2004, the FASB issued SFAS No. 123 (revised  2004).  Share-Based
   Payment,  which is a revision of SFAS No.  123,  Accounting  for  Stock-Based
   Compensation.  SFAS No. 123(R)  supersedes APB Opinion No. 25, Accounting for
   Stock Issued to Employees,  and amends SFAS No. 95,  Statement of Cash Flows.
   Generally,  the  approach  in SFAS No.  123(R)  is  similar  to the  approach
   described in SFAS No. 123. However,  SFAS No. 123(R) requires all share-based
   payments to employees,  including  grants of employee  stock  options,  to be
   recognized  in the income  statement  based on their fair  values.  Pro forma
   disclosure  is no longer an  alternative.  The new standard will be effective
   for the Company in the first  interim or annual  reporting  period  beginning
   after  December 15, 2005.  The Company  expects the adoption of this standard
   will have a material impact on its financial statements.

   In December  2004, the FASB issued SFAS No. 153,  "Exchanges of  Non-monetary
   Assets, an amendment of APB Opinion No. 29 "effective for non-monetary  asset
   exchanges  occurring in the fiscal year beginning  January 1, 2006.  SFAS No.
   153 requires  that  exchanges of  productive  assets be accounted for at fair
   value unless fair value cannot be reasonably  determined  or the  transaction
   lacks commercial  substance.  SFAS No. 153 is not expected to have a material
   effect on the company's Consolidated Financial Statements.

   In May  2005,  the FASB  issued  SFAS  154,  "Accounting  Changes  and  Error
   Corrections - a Replacement  of APB Opinion No. 20 and FASB Statement No. 3".
   SFAS  154  requires  retrospective  application  to  prior  period  financial
   statements of changes in accounting principle,  unless it is impracticable to
   determine either the period-specific  effects or the cumulative effect of the
   change.  SFAS 154 also redefines  "restatement" as the revising of previously
   issued  financial  statements  to reflect the  correction  of an error.  This
   statement is effective for accounting  changes and corrections of errors made
   in fiscal years  beginning  after  December  15,  2005.  The Company does not
   believe that the adoption of SFAS 154 will have a  significant  impact on the
   financial statements.

2. PROPERTY AND EQUIPMENT

   As of  December  31,  2005,  the  Company  does not own any  property  and/or
   equipment.

3. STOCKHOLDER'S EQUITY

   The  Company  has  75,000,000  shares  authorized  and  3,400,000  issued and
   outstanding as of December 31, 2005. The issued and  outstanding  shares were
   issued as follows:

   1,000,000  common  shares were issued to Robert  Gelfand on March 30, 2005 in
   exchange for cash in the amount of $5,000 U.S.

   1,600,000  common  shares were  issued to Robert  Gelfand on April 5, 2005 in
   exchange for mining claims  transferred  to the Company at his cost of $8,000
   U.S.

   800,000 units were issued to 26 investors in the Company's  SB-2 offering for
   the  aggregate  sum of $40,000 in cash.  The  Regulation  SB-2  offering  was
   declared effective by the Securities and Exchange Commission on September 27,
   2005 and  completed  in  December  2005.  Each Unit  consists of one share of
   Common Stock and one Common  Stock  Purchase  Warrant.  Each one whole Common
   Stock  Purchase  Warrant will  entitle the holder to purchase one  additional
   share of Common  Stock at a price of $.10 per Share for a period of two years
   from the date of the offering.

                                       8
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4. RELATED PARTY TRANSACTIONS

   As of December 31, 2005,  there is a related party  transaction in the amount
   of $5,268 between the Company and an officer for Company operations. No other
   related  party  transactions   exists  than  those  mentioned  in  Note  3  -
   Stockholder's Equity or above.

5. STOCK OPTIONS

   As of  December  31,  2005,  the  Company  does not have  any  stock  options
   outstanding,  nor does it have  any  written  or  verbal  agreements  for the
   issuance or distribution of stock options at any point in the future.

6. LITIGATION

   As of December 31,  2005,  the Company is not aware of any current or pending
   litigation which may affect the Company's operations.

                                       9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS

We are still in our exploration stage and have generated no revenues to date.

We incurred operating expenses of $2,385 and $18,700 for the three month and
nine month periods ended December 31, 2005. These expenses consisted of general
operating expenses and professional fees incurred in connection with the day to
day operation of our business and the preparation and filing of our periodic
reports. As of December 31, 2005 the officer and director had loaned the company
$5,268, for which there is no specific terms of repayment.

Our net loss for the three and nine months ended December 31, 2005 was $2,385
and $18,700, respectively. As we were incorporated on March 30, 2005 there are
no comparative figures from previous years.

Cash provided by financing activities for the three and nine months ended
December 31, 2005 was $40,000, resulting from the sale of our common stock in an
initial public offering, which was completed in December 2005.

Our auditors have issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have not generated revenues and no revenues are anticipated until we
begin removing and selling minerals. There is no assurance we will ever reach
that point.

LIQUIDITY AND CAPITAL RESOURCES

Wallace Mountain's current cash balance is $39,568. Until approximately December
of 2006, we believe our cash balance is sufficient to fund our operations. If we
experience a shortage of funds prior to realizing revenues or obtaining funds
pursuant to the exercise of warrants, we may utilize funds from our director who
has informally agreed to advance funds to allow us to pay for operating costs,
however our director has no formal commitment, arrangement or legal obligation
to advance or loan funds to Wallace Mountain. We are an exploration stage
company and have generated no revenue to date. We have sold $45,000 in equity
securities to pay for our operations.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

PLAN OF OPERATION

Our plan of operation for the next twelve months is to complete the first phase
of exploration programs on the South Wallace Mountain Project claims consisting
of re-sampling of old workings, geologic mapping, analytical and test surveys.
In addition to the $24,000 we anticipate spending for Phase I of the exploration
program as outlined below, we anticipate spending an additional $16,000 on
professional fees, including complying with reporting obligations as required by
the Securities and Exchange Commission and general administrative costs. Total
expenditures over the next 12 months are therefore expected to be $40,000.

                                       10
<PAGE>
PHASE I

The Phase I program will require approximately 3 weeks to complete and will
consist of grid emplacement, soil sampling as well as testing the effectiveness
of MMI and Biogeochemical methods. An additional 3 weeks will be required to
complete analysis of samples, data compilation and interpretation, drafting and
report writing. Results gained from the program will lead to a better
understanding of, the location of and controls of, mineralization at known
showings as at any new showings and/or anomalous areas discovered as a result of
the Phase I program.

<TABLE>
<CAPTION>
<S>                               <C>                                                          <C>
PERSONNEL:
  Senior Geologist                3 days @ $325.00                                               $   975.00
  Project Geologists              15 days @ $225.00 ea                                             6,750.00
  Prospector & Field Assistant    15 days @ $160.00 ea                                             4,800.00

FIELD COSTS:
  Field Camp and Supplies         30 man/days @ $40.00/m/d
                                  (including camp rental, GPS rental, food, prospecting
                                  and sampling equipment, first aid and chain saw)                 1,200.00
  Field Communications            Long Distance charges Motorola 2 way field radios                  300.00
  Survey Consumables              Sample bags, survey flagging, pickets etc.                         775.00

TRANSPORTATION:
  Truck Rental                    20 days $80.00                                                   1,600.00
  Mob/de-mob                      Vancouver - Beaverdell return (fuel/meals/motel & truck
                                  mileage charges)                                                   400.00

ANALYTICAL:
  Soil Samples                    200 samples @ $9.50/sample (Au + 32 element ICP)                 1,900.00
  MMI / Bio Geochemical           10 samples                                                     $   300.00

OFFICE & ENGINEERING:
  Report Writing                  based on results of Phase I exploration program                  1,600.00
  Drafting/Cartography            (including field base map and all final maps detailing
                                  geological mapping, sample locations and results,
                                  location of old workings and compilation of results
                                  from previous work on property)                                  1,200.00

OVERHEAD & CONTINGENCY                                                                             2,200.00
                                                                                                 ----------

TOTAL ESTIMATE COST OF THE PHASE I EXPLORATION PROGRAM                                           $24,000.00
                                                                                                 ==========
</TABLE>

                                       11
<PAGE>
PHASE II:

The Phase II exploration program is contingent on the success of the Phase I
program. Mechanical trenching and diamond drilling are foreseen to be the
logical next step. The minimum estimated cost of the Phase II program is
$80,000.

The above program costs are management's estimates only and the actual project
costs may exceed our estimates. To date, we have not commenced exploration on
the South Wallace Mountain Project claims.

We plan to commence the phase one exploration program on the claims in spring or
summer of 2006, as soon as weather conditions in the area permit. The program
should take approximately up to a one month to complete. Following the phase one
exploration, we intend to complete a drilling program on the claims. The
estimated cost of this program is $80,000 and will take approximately three
months to complete, including the collection and interpretation of all
exploration data.

Subject to financing, we anticipate commencing the drill program in late summer
early autumn of 2006. Follow up drilling would occur in the spring of 2007.
While weather may occasionally prevent us from accessing the South Wallace
Mountain Project claims in winter months, we do not expect conditions to impact
our plan of operation, as we have scheduled our exploration programs during the
spring, summer and autumn. We do not have any verbal or written agreement
regarding the retention of any qualified engineer or geologist for our planned
exploration programs. We will require additional funding from the exercise of
the warrants associated with our equity securities offering to proceed with any
subsequent recommended drilling work on the claims. We cannot provide investors
with any assurance that we will be able to raise sufficient funding from the
exercise of the warrants to fund any work after the first phase of the
exploration program.

CRITICAL ACCOUNTING POLICIES

The un-audited financial statements as of December 31, 2005 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our March 31, 2005 audited financial statements and notes
thereto, which can be found in our Form SB-2 Registration Statement and the
amendments thereto on the SEC website at www.sec.gov under our SEC File Number
333-126674.

The financial statements of the Company have been prepared in accordance with
generally accepted accounting principles in the United States. Because a precise
determination of many assets and liabilities is dependent upon future events,
the preparation of financial statements for a period necessarily involves the
use of estimates which have been made using careful judgement.

USE OF ESTIMATES - The preparation of consolidated financial statements in
conformity with generally accepted accounting principles requires management to

                                       12
<PAGE>
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

INCOME TAXES - The Company accounts for its income taxes in accordance with
Statement of Financial Accounting Standards No. 109, which requires recognition
of deferred tax assets and liabilities for future tax consequences attributable
to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases and tax credit carry
forwards. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in operations in
the period that includes the enactment date.

Management feels the Company will have a net operating loss carryover to be used
for future years. The Company has not established a valuation allowance for the
full tax benefit of the operating loss carryovers due to the uncertainty
regarding realization.

NET LOSS PER COMMON SHARE - The Company computes net loss per share in
accordance with SFAS No. 128, Earnings per Share (SFAS 128) and SEC Staff
Accounting Bulletin No. 98 (SAB 98). Under the provisions of SFAS 128 and SAB
98, basic net loss per share is computed by dividing the net loss available to
common stockholders for the period by the weighted average number of shares of
common stock outstanding during the period. The calculation of diluted net loss
per share gives effect to common stock equivalents; however, potential common
shares are excluded if their effect is anti-dilutive. For the period from March
30, 2005 (Date of Inception) through December 31, 2005, no options and warrants
were excluded from the computation of diluted earnings per share because their
effect would be anti-dilutive. See Note 7 Subsequent Events.

REVENUE RECOGNITION - The Company has no revenues to date from its operations.

STOCK-BASED COMPENSATION - The Company applies Accounting Principles Board
("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and Related
Interpretations, in accounting for stock options issued to employees. Under APB
No. 25, employee compensation cost is recognized when estimated fair value of
the underlying stock on date of the grant exceeds exercise price of the stock
option. For stock options and warrants issued to non-employees, the Company
applies SFAS No. 123, Accounting for Stock-Based Compensation, which requires
the recognition of compensation cost based upon the fair value of stock options
at the grant date using the Black-Scholes option pricing model.

The following table represents the effect on net loss and loss per share if the
Company had applied the fair value based method and recognition provisions of
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for

                                       13
<PAGE>
Stock-Based Compensation", to stock-based employee compensation for the period
ended December 31, 2005:

                                                                         2005
                                                                       --------
    Net loss, as reported                                              $(18,700)
    Add:    Stock-based employee compensation expense
            included in reported loss, net of related tax effects            --
    Deduct: Total stock-based employee compensation
            expense determined under fair value based methods
            for all awards, net of related tax effects                       --
                                                                       --------

         Pro forma net loss                                            $(18,700)
                                                                       ========
    Net loss per common share:
      Basic and fully diluted loss per share, as reported              $  (0.00)
                                                                       ========
      Basic and fully diluted loss per share, pro forma                $  (0.00)
                                                                       ========

There were no stock options granted for the period ended December 31, 2005.
There are additionally no written or verbal agreements related to the sale of
any stock, option or warrants of the Company's common stock as of December 31,
2005. See Note 7 Subsequent Events.

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure". SFAS No. 148 amends the transition and
disclosure provisions of SFAS No. 123. The Company is currently evaluating SFAS
No. 148 to determine if it will adopt SFAS No. 123 to account for employee stock
options using the fair value method and, if so, when to begin transition to that
method.

NEW ACCOUNTING PRONOUNCEMENTS - In December 2004, the FASB issued SFAS No. 123
(revised 2004). Share-Based Payment, which is a revision of SFAS No. 123,
Accounting for Stock-Based Compensation. SFAS No. 123(R) supersedes APB Opinion
No. 25, Accounting for Stock Issued to Employees, and amends SFAS No. 95,
Statement of Cash Flows. Generally, the approach in SFAS No. 123(R) is similar
to the approach described in SFAS No. 123. However, SFAS No. 123(R) requires all
share-based payments to employees, including grants of employee stock options,
to be recognized in the income statement based on their fair values. Pro forma
disclosure is no longer an alternative. The new standard will be effective for
the Company in the first interim or annual reporting period beginning after
December 15, 2005. The Company expects the adoption of this standard will have a
material impact on its financial statements.

In November 2004, the FASB issued SFAS No. 151, Inventory Costs, an amendment of
ARB No. 43, Chapter 4. SFAS No. 151 amends the guidance in ARB No. 43, Chapter
4, Inventory Pricing, to clarify the accounting for abnormal amounts of idle

                                       14
<PAGE>
facility expense, freight, handing costs, and spoilage. This statement requires
that those items be recognized as current period charges regardless of whether
they meet the criterion of "so abnormal" which was the criterion specified in
ARB No. 43. In addition, this Statement requires that allocation of fixed
production overheads to the cost of production be based on normal capacity of
the production facilities. This pronouncement is effective for the Company
beginning October 1, 2005. The Company has not yet assessed the impact on
adopting this new standard.

In December 2004, the FASB issued SFAS No. 123 (revised 2004). Share-Based
Payment, which is a revision of SFAS No. 123, Accounting for Stock-Based
Compensation. SFAS No. 123(R) supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees, and amends SFAS No. 95, Statement of Cash Flows.
Generally, the approach in SFAS No. 123(R) is similar to the approach described
in SFAS No. 123. However, SFAS No. 123(R) requires all share-based payments to
employees, including grants of employee stock options, to be recognized in the
income statement based on their fair values. Pro forma disclosure is no longer
an alternative. The new standard will be effective for the Company in the first
interim or annual reporting period beginning after December 15, 2005. The
Company expects the adoption of this standard will have a material impact on its
financial statements.

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Non-monetary
Assets, an amendment of APB Opinion No. 29 "effective for non-monetary asset
exchanges occurring in the fiscal year beginning January 1, 2006. SFAS No. 153
requires that exchanges of productive assets be accounted for at fair value
unless fair value cannot be reasonably determined or the transaction lacks
commercial substance. SFAS No. 153 is not expected to have a material effect on
the company's Consolidated Financial Statements.

In May 2005, the FASB issued SFAS 154, "Accounting Changes and Error Corrections
- a Replacement of APB Opinion No. 20 and FASB Statement No. 3". SFAS 154
requires retrospective application to prior period financial statements of
changes in accounting principle, unless it is impracticable to determine either
the period-specific effects or the cumulative effect of the change. SFAS 154
also redefines "restatement" as the revising of previously issued financial
statements to reflect the correction of an error. This statement is effective
for accounting changes and corrections of errors made in fiscal years beginning
after December 15, 2005. The Company does not believe that the adoption of SFAS
154 will have a significant impact on the financial statements.

FORWARD LOOKING STATEMENTS

Some of the statements contained in this Form 10-QSB that are not historical
facts are "forward-looking statements" which can be identified by the use of
terminology such as "estimates," "projects," "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of strategy that involve risks and uncertainties. We urge you to be cautious of
the forward-looking statements, that such statements, which are contained in
this Form 10-QSB, reflect our current beliefs with respect to future events and
involve known and unknown risks, uncertainties and other factors affecting our
operations, market growth, services, products and licenses. No assurances can be

                                       15
<PAGE>
given regarding the achievement of future results, as actual results may differ
materially as a result of the risks we face, and actual events may differ from
the assumptions underlying the statements that have been made regarding
anticipated events.


All written forward-looking statements made in connection with this Form 10-QSB
that are attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. Given the
uncertainties that surround such statements, you are cautioned not to place
undue reliance on such forward-looking statements.

The safe harbors of forward-looking statements provided by the Securities
Litigation Reform Act of 1995 are unavailable to issuers not subject to the
reporting requirements set forth under Section 13(a) or 15(D) of the Securities
Exchange Act of 1934, as amended. As we have not registered our securities
pursuant to Section 12 of the Exchange Act, such safe harbors set forth under
the Reform Act are unavailable to us.

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have no identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

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<PAGE>
                          PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Form SB-2
Registration Statement, filed under SEC File Number 333-126674, at the SEC
website at www.sec.gov:

     Exhibit No.                    Description
     -----------                    -----------
         3.1        Articles of Incorporation*
         3.2        Bylaws*
         31.1       Sec. 302 Certification of Principal Executive Officer
         31.2       Sec. 302 Certification of Principal Financial Officer
         32.1       Sec. 906 Certification of Principal Executive Officer
         32.2       Sec. 906 Certification of Principal Financial Officer

A Form 8-K was filed on October 21, 2005 to report a change to the Company's
Certifying Accountant.

                                   SIGNATURES

Pursuant to the requirements of Section 13(a) or 15(d) 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.

February 9, 2006               Wallace Mountain Resources Corp., Registrant


                               By: /s/ Robert Gelfand
                                  -----------------------------------
                                  Robert Gelfand, President and Chief
                                  Executive Officer

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

February 9, 2006               Wallace Mountain Resources Corp., Registrant


                               By: /s/ Robert Gelfand
                                  -----------------------------------
                                  Robert Gelfand, President, Chief
                                  Executive Officer, Treasurer, Chief Financial
                                  Officer, and Principal Accounting Officer

                                       17