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 September 30, 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 1,000,000 shares of Common Stock outstanding as of Sept. 30, 2005.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS

The un-audited quarterly financial statements for the 3 months ended September
30, 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
                                                               September 30, 2005     March 31, 2005
                                                               ------------------     --------------
<S>                                                                 <C>                  <C>
                                     ASSETS

Current assets
  Cash                                                              $    703             $  5,000
                                                                    --------             --------
      Total current assets                                               703                5,000

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

Total assets                                                        $    703             $  5,000
                                                                    ========             ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable                                                  $     --             $     --
  Loan payable to a director                                           4,018                   --
                                                                    --------             --------
      Total current liabilities                                        4,018                   --
                                                                    --------             --------

      Total liabilities                                                4,018                   --

Stockholders' equity
  Common stock; $.001 par value; 75,000,000 shares
   authorized, 1,000,000 shares issued and outstanding                 2,600                1,000
  Additional paid-in capital                                          10,400                4,000
  Accumulated deficit                                                (16,315)                  --
                                                                    --------             --------
      Total stockholders' equity                                      (3,315)               5,000
                                                                    --------             --------

      Total liabilities and stockholders' equity                    $    703             $  5,000
                                                                    ========             ========
</TABLE>

                 See Accompanying Notes to Financial Statements

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

<TABLE>
<CAPTION>
                                                                                Period from
                                                                              March 30, 2005
                                                        July 1, 2005         (Date of inception)
                                                          through                 through
                                                     September 30, 2005      September 30, 2005
                                                     ------------------      ------------------
<S>                                                     <C>                     <C>
Revenue                                                 $        --             $        --

Operating expenses
  Professional fees                                           1,350                   3,700
  General and administrative                                  2,736                  12,615
                                                        -----------             -----------

      Total operating expenses                                4,086                  16,315
                                                        -----------             -----------

      Loss from operations                                   (4,086)                (16,315)

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

      Loss before provision for income taxes                 (4,086)                (16,315)

Provision for income taxes                                       --                      --
                                                        -----------             -----------

Net loss                                                $    (4,086)            $   (16,315)
                                                        -----------             -----------

Basic and diluted loss per common share                 $     (0.00)            $     (0.01)
                                                        ===========             ===========
Basic and diluted weighted average
 common shares outstanding                                2,600,000               2,547,826
                                                        ===========             ===========
</TABLE>

                 See Accompanying Notes to Financial Statements

                                       3
<PAGE>
                        WALLACE MOUNTAIN RESOURCES CORP.
                         (AN EXPLORATION STAGE COMPANY)
                            STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                    Period from
                                                                                   March 30, 2005
                                                            July 1, 2005        (Date of inception)
                                                              through                 through
                                                         September 30, 2005      September 30, 2005
                                                         ------------------      ------------------
<S>                                                          <C>                     <C>
Cash flows from operating activities:
  Net loss                                                   $ (4,086)               $(16,315)
  Adjustments to reconcile net loss to
   changes in operating assets and liabilities:
     Loan payable to a director                                 4,018                   4,018
                                                             --------                --------
        Net cash used by operating activities                     (68)                (12,297)

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                           --                  13,000
                                                             --------                --------
        Net cash provided by financing activities                  --                  13,000
                                                             --------                --------

Net increase in cash                                              (68)                    703

Cash, beginning of period                                         771                      --
                                                             --------                --------

Cash, end of period                                          $    703                $    703
                                                             ========                ========

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

                 See Accompanying Notes to Financial Statements

                                       4
<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                          1,600,000      $2,600      $10,400      $(12,229)      $    771
                                               ==========      ======      =======      ========       ========

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

Balance, September 30, 2005                    $1,600,000      $2,600      $10,400      $(16,315)      $ (3,315)
                                               ==========      ======      =======      ========       ========
</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  $16,315
     from the period of March 30, 2005 (Date of Inception) through September 30,
     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  September 30, 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.

     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.

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


     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 September 30, 2005:

                                                                        2005
                                                                     ----------
     Net loss, as reported                                           $  (16,315)
     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                                         $  (16,315)
                                                                     ==========
          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  September  30,
     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
     September 30, 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 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

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


     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 Nonmonetary
     Assets, an amendment of APB Opinion No. 29 "effective for nonmonetary 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  September  30, 2005,  the Company  does not own any property  and/or
     equipment.

3. STOCKHOLDER'S EQUITY

     The Company has  75,000,000  shares  authorized  and  2,600,000  issued and
     outstanding  as of September 30, 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.

4. RELATED PARTY TRANSACTIONS

     Robert  Gelfand,  the sole  officer and  director  will not be paid for any
     underwriting  services  that he  performs  on  behalf of the  Company  with
     respect to the Company's  upcoming SB-2 offering.  He will also not receive
     any  interest on any funds that he  advances  to the  Company for  offering
     expenses  prior to the offering  being closed which will be repaid from the
     proceeds of the offering.

     As of September 30, 2005,  there are no other  related  party  transactions
     between the Company and any officers,  other than those mentioned above and
     in Note 3 - Stockholder's Equity.

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


5. STOCK OPTIONS

     As of  September  30,  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  September  30,  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 $4,086 and $16,315 for the three month and six
month periods ended September 30, 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 September 30, 2005 the officer and director had loaned the
company $4,018, for which there is no specific terms of repayment.

Our net loss for the three and six months ended September 30, 2005 was $4,086
and $16,315, respectively. As we were incorporated on March 30, 2005 there are
no comparative figures from previous years.

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 $703. Until approximately December of
2005, we believe our small cash balance is sufficient to fund limited levels of
operations. If we experience a shortage of funds prior to funding we may utilize
funds from our director who has informally agreed to advance funds to allow us
to pay for offering costs, filing fees, and correspondence with our
shareholders, however our director has no formal commitment, arrangement or
legal obligation to advance or loan funds to Wallace Mountain. In order to
achieve our business plan goals, we will need funding. We are an exploration
stage company and have generated no revenue to date. We have sold $5,000 in
equity securities to pay for our minimum level of operations.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

PLAN OF OPERATION

Our plan of operation for the twelve months following our obtaining funding from
the sale of equity securities 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 fees payable in connection with the filing of our registration
statement with the Securities and Exchange Commission and complying with
reporting obligations, and general administrative costs. Total expenditures over

                                       10
<PAGE>
the next 12 months are therefore expected to be $40,000. We will require the
funds from our offering of equity securities to proceed.

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
                                  (including field base map and all final maps detailing
                                  geological mapping, sample locations and results,
                                  location of old workings and compilation of results
   Drafting/Cartography           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
$100,000.

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 September 30, 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.

                                       12
<PAGE>
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 anti-dilutive. For the period from March
30, 2005 (Date of Inception) through September 30, 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

                                       13
<PAGE>
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
Stock-Based Compensation", to stock-based employee compensation for the period
ended September 30, 2005:

                                                                        2005
                                                                     ----------
     Net loss, as reported                                           $  (16,315)
     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                                         $  (16,315)
                                                                     ==========
          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 September 30, 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 September 30,
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

                                       14
<PAGE>
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.

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

                                       15
<PAGE>
operations, market growth, services, products and licenses. No assurances can be
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.

                                       16
<PAGE>
                          PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

The following exhibits are included with this registration statement 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

There were no reports filed on Form 8-K during the quarter ended September 30,
2005.

                                   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.

October 27, 2005               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.

October 27, 2005               Wallace Mountain Resources Corp., Registrant


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

                                       17