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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-QSB

|                                                                                
|--------------------------------------------------------------------------------
|(Mark One)                                                                      
|[X]        QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
|ACT OF 1934                                                                     



| |                                                
| | -----------------------------------------------
| | For the quarterly period from 1-1-03 to 3-31-03

|                                                                               
|-------------------------------------------------------------------------------
|[  ]         TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT.

| |                                                           
| | ----------------------------------------------------------
| | For the transition period from                          to
| | Commission file number                     000-31025      

METALINE CONTACT MINES




(Exact name of small business issuer as specified in its charter)


|                                           |  |                                  
|------------------------------------------ |  | ---------------------------------
|Washington                                 |  | 91-0779945                       
|                                           |  |                                  
|(State or jurisdiction of incorporation or |  | (IRS Employer Identification No.)
|organization)                              |  |                                  

6599 Prichard Creek Road, Murray, ID 83874

(Address of principal executive offices)


208-682-2217

(Issuers telephone number


State the number of shares outstanding of each of the issuers classes of
common equity, as of the
 latest practical date: 14,064,300

Transitional Small Business Disclosure
Format (Check one):    Yes
[  ]     No
[X]





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TABLE OF CONTENTS



|                            |                                                                    |  |  |  |  |  |  | 
|--------------------------- | ------------------------------------------------------------------ |  |  |  |  |  |  | 
|                            | Item 1. Financial Statements                                      
|                            | Item 2. Managements Discussion and Analysis or Plan of Operations
|                            | Item 3. Controls and Procedures                                   
|PART II  OTHER INFORMATION
|                            | Item 1. Legal Proceedings                                         
|                            | Item 2. Changes in Securities                                     
|                            | Item 3. Defaults Upon Senior Securities                           
|                            | Item 4. Submission of Matters to a Vote of Security Holders       
|                            | Item 5. Other Information                                         
|                            | Item 6. Exhibits and Reports on Form 8-K                          
|SIGNATURES                 
|EXHIBIT 99.1               
|EXHIBIT 99.2               



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TABLE OF CONTENTS

|                                                            |  |     
|----------------------------------------------------------- |  | ----
|                                                            |  | PAGE
|                                                            |  |     
|PART I - FINANCIAL INFORMATION                              |  |     
|Item 1. Financial Statements                                |  | F-1 
|Item 2. Managements Analysis and Discussion                |  | 18  
|Item 3. Controls and Procedures                             |  | 19  
|PART II - OTHER INFORMATION                                 |  |     
|Item 1. Legal Proceedings                                   |  | 21  
|Item 2. Changes in Securities                               |  | 21  
|Item 3. Defaults Upon Senior Securities                     |  | 21  
|Item 4. Submission of Matters to a Vote of Security Holders |  | 21  
|Item 5. Other Information                                   |  | 22  
|Item 6. Exhibits and Reports on Form 8-K                    |  | 22  
|SIGNATURES                                                  |  | 22  

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PART I  FINANCIAL INFORMATION




Item 1. Financial Statements

METALINE CONTACT MINES

FINANCIAL STATEMENTS
March 31, 2003

Williams & Webster, P.S.Certified Public AccountantsBank of America Financial Center
601 W. Riverside, Suite 1940
Spokane, WA 99201

F-1





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METALINE CONTACT MINES

TABLE OF CONTENTS

|                                       |                                   |  |     |     | 
|-------------------------------------- | --------------------------------- |  | --- | --- | 
|INDEPENDENT ACCOUNTANTS REVIEW REPORT |                                   |  | F-3 |    
|FINANCIAL STATEMENTS                   |                                   |  |     |    
|                                       | Balance Sheets                    |  |     | F-4 | 
|                                       | Statements of Operations          |  |     | F-5 | 
|                                       | Statement of Stockholders Equity |  |     | F-6 | 
|                                       | Statements of Cash Flows          |  |     | F-7 | 
|NOTES TO FINANCIAL STATEMENTS          |                                   |  | F-8 |    

F-2





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The Board of Directors
Metaline Contact Mines
Murray, Idaho

INDEPENDENT ACCOUNTANTS REVIEW REPORT

We have reviewed the accompanying balance sheet of Metaline Contact Mines as of
March 31, 2003, and the related statements of operations, stockholders equity,
and cash flows for the three months then ended. All information included in
these financial statements is the representation of the management of Metaline
Contact Mines.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with auditing standards generally accepted in the United States of
America, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.

Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with accounting principles generally accepted in the United States
of America.

The financial statements for the year ended December 31, 2002 were audited by
us and we expressed an unqualified opinion on them in our report dated Febrary
13, 2003. We have not performed any auditing procedures since that date.

Williams & Webster, P.S.Certified Public Accountants
Spokane, Washington

April 25, 2003

F-3





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METALINE CONTACT MINES
BALANCE SHEETS

|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |         | 
|------------------------------------ | ------------------------------------------ | ----------------------------------------------------------------------------------------------------- | -------------------------- | ------- | ----------- | ------- | ------------ | ------- | -------- | ------- | 
|                                     |                                            |                                                                                                       |                            |         | March 31,   |         | December 31,
|                                     |                                            |                                                                                                       |                            |         | 2003        |         | 2002        
|                                     |                                            |                                                                                                       |                            |         | (Unaudited) |         |             
|                                     |                                            |                                                                                                       |                            |         |             |         |             
|ASSETS                               |                                            |                                                                                                       |                            |         |             |         |              |        
|                                     | CURRENT ASSETS                             |                                                                                                       |                            |         |             |         |              |         |         
|                                     |                                            | Cash and cash equivalents                                                                             |                            | $       | 108,763     |         |              | $       | 111,124  |        
|                                     |                                            | Receivable from related party                                                                         |                            |         | 18,000      |         |              |         | 18,000   |        
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     |                                            |                                                                                                       | Total Current Assets       |         |             | 126,763 |              |         |          | 129,124 | 
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     | OTHER ASSETS                               |                                                                                                       |                            |         |             |         |              |         |         
|                                     |                                            | Receivables from related parties                                                                      |                            |         | 109,413     |         |              |         | 109,413  |        
|                                     |                                            | Accrued interest receivable                                                                           |                            |         | 17,235      |         |              |         | 15,320   |        
|                                     |                                            | Investment in LLC                                                                                     |                            |         | 34,643      |         |              |         | 35,109   |        
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     |                                            |                                                                                                       | Total Other Assets         |         |             | 161,291 |              |         |          | 159,842 | 
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     | TOTAL ASSETS                               |                                                                                                       | $                          | 288,054 |             |         | $            | 288,966 |         
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|LIABILITIES AND STOCKHOLDERS EQUITY |                                            |                                                                                                       |                            |         |             |         |              |        
|                                     | CURRENT LIABILITIES                        |                                                                                                       |                            |         |             |         |              |         |         
|                                     |                                            | Accounts payable                                                                                      |                            | $       | 3,785       |         |              | $       |         |        
|                                     |                                            | Deferred royalty income                                                                               |                            |         | 3,880       |         |              |         | 3,880    |        
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     |                                            |                                                                                                       | Total Current Liabilities  |         |             | 7,665   |              |         |          | 3,880   | 
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     | COMMITMENTS AND CONTINGENCIES              |                                                                                                       |                            |        |             |         |              |        |         
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     | STOCKHOLDERS EQUITY                       |                                                                                                       |                            |         |             |         |              |         |         
|                                     |                                            | Common stock, $0.05 par value;
20,000,000 shares authorized,
14,064,300 shares issued and outstanding |                            |         | 703,222     |         |              |         | 703,222  |        
|                                     |                                            | Additional paid-in capital                                                                            |                            |         | 302,165     |         |              |         | 302,165  |        
|                                     |                                            | Stock options                                                                                         |                            |         | 17,907      |         |              |         | 17,907   |        
|                                     |                                            | Accumulated deficit                                                                                   |                            |         | (742,905    | )       |              |         | (738,208 | )      
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     |                                            |                                                                                                       | Total Stockholders Equity |         |             | 280,389 |              |         |          | 285,086 | 
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        
|                                     | TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |                                                                                                       | $                          | 288,054 |             |         | $            | 288,966 |         
|                                     |                                            |                                                                                                       |                            |         |             |         |              |         |          |        

See accompanying notes and
accountants review report.
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METALINE CONTACT MINES
STATEMENT OF OPERATIONS

|                                                      |                                |                                           |            |                    |        |             |            |       |        | 
|----------------------------------------------------- | ------------------------------ | ----------------------------------------- | ---------- | ------------------ | ------ | ----------- | ---------- | ----- | ------ | 
|                                                      |                                |                                           |            | Three Months Ended
|                                                      |                                |                                           |            |                   
|                                                      |                                |                                           |            | March 31,          |        | March 31,  
|                                                      |                                |                                           |            | 2003               |        | 2002       
|                                                      |                                |                                           |            | (Unaudited)        |        | (Unaudited)
|                                                      |                                |                                           |            |                    |        |            
|REVENUES                                              |                                |                                           |            |                    |        |             |            |      
|                                                      | Royalty income                 |                                           | $          | 3,880              |        |             | $          | 3,000 |       
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|GENERAL AND ADMINISTRATIVE EXPENSES                   |                                |                                           |            |                    |        |             |            |      
|                                                      | Consulting and management fees |                                           |            | 1,500              |        |             |            | 9,000 |       
|                                                      | Professional fees              |                                           |            | 6,785              |        |             |            | 5,229 |       
|                                                      | Transfer agent fees            |                                           |            | 453                |        |             |            | 367   |       
|                                                      | Taxes, licenses, and fees      |                                           |            | 400                |        |             |            | 389   |       
|                                                      | Office supplies and expenses   |                                           |            | 1,016              |        |             |            | 1,035 |       
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|                                                      |                                | TOTAL GENERAL AND ADMINISTRATIVE EXPENSES |            |                    | 10,154 |             |            |       | 16,020 | 
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|OPERATING LOSS                                        |                                |                                           | (6,274     | )                  |        |             | (13,020    | )    
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|OTHER INCOME                                          |                                |                                           |            |                    |        |             |            |      
|                                                      | Dividend income                |                                           |            | 128                |        |             |            | 468   |       
|                                                      | Interest income                |                                           |            | 1,915              |        |             |            | 1,915 |       
|                                                      | Loss from investment in LLC    |                                           |            | (466               | )      |             |            | (109  | )     
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|                                                      |                                | TOTAL OTHER INCOME                        |            |                    | 1,577  |             |            |       | 2,274  | 
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|LOSS BEFORE TAXES                                     |                                |                                           | (4,697     | )                  |        |             | (10,746    | )    
|INCOME TAX EXPENSE                                    |                                |                                           |           |                    |        |             |           |      
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|NET LOSS                                              |                                | $                                         | (4,697     | )                  |        | $           | (10,746    | )    
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|NET LOSS PER COMMON SHARE,                            |                                |                                           |            |                    |        |             |            |      
|BASIC AND DILUTED                                     |                                | $                                         | nil        |                    |        | $           | nil        |      
|                                                      |                                |                                           |            |                    |        |             |            |       |       
|WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING, |                                |                                           |            |                    |        |             |            |      
|BASIC AND DILUTED                                     |                                |                                           | 14,064,300 |                    |        |             | 14,064,300 |      
|                                                      |                                |                                           |            |                    |        |             |            |       |       

See accompanying notes and
accountants review report.
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METALINE CONTACT MINES
STATEMENT OF STOCKHOLDERS EQUITY

|                                    |                                                |  |              |   |            |   |         |   |             |   |               |   |        |   |        |   |  |   |          |         |   |   |         |         |  
|----------------------------------- | ---------------------------------------------- |  | ------------ | - | ---------- | - | ------- | - | ----------- | - | ------------- | - | ------ | - | ------ | - |  | - | -------- | ------- | - | - | ------- | ------- | -
|                                    |                                                |  | Common Stock |   | Additional |   |         |   |             |   |               |   |        |   | Total 
|                                    |                                                |  |              |   | Paid-in    |   | Stock   |   | Accumulated |   | Stockholders'
|                                    |                                                |  | Shares       |   | Amount     |   | Capital |   | Options     |   | Deficit       |   | Equity
|                                    |                                                |  |              |   |            |   |         |   |             |   |               |   |       
|Balance, December 31, 2001          |                                                |  | 14,064,300   |   |            | $ | 703,222 |   |             | $ | 302,165       |   |        | $ | 17,907 |   |  | $ | (689,679 | )       |   | $ | 333,615 |        
|                                    | Net loss for the year ended
December 31, 2001  |  |              |  |            |   |         |  |             |   |               |  |        |   |        |  |  |   |          | (48,529 | ) |   |         | (48,529 | )
|                                    |                                                |  |              |   |            |   |         |   |             |   |               |   |        |   |        |   |  |   |          |         |   |   |         |        
|Balance, December 31, 2002          |                                                |  | 14,064,300   |   |            |   | 703,222 |   |             |   | 302,165       |   |        |   | 17,907 |   |  |   | (738,208 | )       |   |   | 285,086 |        
|                                    | Net loss for three months
Ended March 31, 2003 |  |              |  |            |   |         |  |             |   |               |  |        |   |        |  |  |   |          | (4,697  | ) |   |         | (4,697  | )
|                                    |                                                |  |              |   |            |   |         |   |             |   |               |   |        |   |        |   |  |   |          |         |   |   |         |        
|Balance, March 31, 2003 (unaudited) |                                                |  | 14,064,300   |   |            | $ | 703,222 |   |             | $ | 302,165       |   |        | $ | 17,907 |   |  | $ | (742,905 | )       |   | $ | 280,389 |        
|                                    |                                                |  |              |   |            |   |         |   |             |   |               |   |        |   |        |   |  |   |          |         |   |   |         |        

See accompanying notes and
accountants review report.
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METALINE CONTACT MINES
STATEMENT OF CASH FLOWS

|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |         |        |  
|---------------------------------------------- | -------------------------------------------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------ | ------ | ------------------ | ------ | ----------- | ------- | ------- | ------ | -
|                                               |                                                                                        |                                                  |                                                  |        | Three Months Ended
|                                               |                                                                                        |                                                  |                                                  |        |                   
|                                               |                                                                                        |                                                  |                                                  |        | March 31,          |        | March 31,  
|                                               |                                                                                        |                                                  |                                                  |        | 2003               |        | 2002       
|                                               |                                                                                        |                                                  |                                                  |        | (Unaudited)        |        | (Unaudited)
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |            
|CASH FLOWS FROM OPERATING ACTIVITIES           |                                                                                        |                                                  |                                                  |        |                    |        |             |        
|                                               | Net loss                                                                               |                                                  | $                                                | (4,697 | )                  |        | $           | (10,746 | )      
|                                               | Adjustments to reconcile net loss to net cash
provided (used) by operating activities: |                                                  |                                                  |        |                    |        |             |         |        
|                                               |                                                                                        | Net loss in investment in LLC                    |                                                  |        | 466                |        |             |         | 109     |       
|                                               | Changes in assets and liabilities:                                                     |                                                  |                                                  |        |                    |        |             |         |        
|                                               |                                                                                        | Increase in interest receivable                  |                                                  |        | (1,915             | )      |             |         | (1,915  | )     
|                                               |                                                                                        | Increase (decrease) in accounts payable          |                                                  |        | 3,785              |        |             |         | 3,000   |       
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|                                               |                                                                                        |                                                  | Net cash provided (used) by operating activities |        |                    | (2,361 | )           |         |         | (9,552 | )
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|CASH FLOWS PROVIDED BY INVESTING ACTIVITIES    |                                                                                        |                                                  |                                                  |        |                    |        |             |        
|                                               | Cash advance to related party                                                          |                                                  |                                                  |       |                    |        |             | (18,000 | )      
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|                                               |                                                                                        | Net cash provided (used) by financing activities |                                                  |        |                   |        |             |         | (18,000 | )     
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES    |                                                                                        |                                                  |                                                 |        |                    |        |            |        
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|                                               | Net increase (decrease) in cash and cash equivalents                                   |                                                  |                                                  | (2,361 | )                  |        |             | (27,552 | )      
|Cash and cash equivalents, beginning of period |                                                                                        |                                                  | 111,124                                          |        |                    |        | 183,354     |        
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|Cash
and cash equivalents, end of period       |                                                                                        | $                                                | 108,763                                          |        |                    | $      | 155,802     |        
|                                               |                                                                                        |                                                  |                                                  |        |                    |        |             |         |        
|SUPPLEMENTAL CASH FLOW DISCLOSURES:            |                                                                                        |                                                  |                                                  |        |                    |        |             |        
|                                               | Income taxes paid                                                                      |                                                  | $                                                |       |                    |        | $           |        |        
|                                               | Interest paid                                                                          |                                                  | $                                                |       |                    |        | $           |        |        
|NON-CASH TRANSACTIONS:                         |                                                                                        | $                                                |                                                 |        |                    | $      |            |        

See accompanying notes and
accountants review report.
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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 1  ORGANIZATION AND DESCRIPTION OF BUSINESS

Metaline Contact Mines (hereinafter Metaline) was incorporated in November of
1928 under the laws of the State of Washington for the purpose of engaging in
mining and the buying and selling of ores, metals, and minerals.

The Company was reorganized and recapitalized in 1960 and its articles of
incorporation were amended to expand its business purposes to include various
additional business activities. Metaline has continued its operations since its
formation and has historically acquired land, mineral rights, patented lode
mining claims, and timber in the Pacific Northwest.

In the last quarter of 1996, Metaline transferred substantially all of its
assets to a limited liability company. See Note 4.

The Companys year end is December 31.

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in
understanding the financial statements. The financial statements and notes are
representations of the Companys management, which is responsible for their
integrity and objectivity. These accounting policies conform to accounting
principles generally accepted in the United States of America and have been
consistently applied in the preparation of the financial statements.

Accounting Method

The Companys financial statements are prepared using the accrual basis of
accounting in accordance with accounting principles generally accepted in the
United States of America.

Accounting Pronouncements

In December 2002, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 148, Accounting for Stock-Based
Compensation  Transition and Disclosure (hereinafter SFAS No. 148). SFAS
148 amends SFAS 123, Accounting for Stock-Based Compensation, to provide
alternative methods of transition for a voluntary change to the fair value
based method of accounting for stock-based employee compensation. In addition,
the statement amends the disclosure requirements of SFAS 123 to require
prominent disclosure in both annual and interim financial statements about the method of
accounting for stock-based employee compensation and the effect of the method
used on reported results. The provisions of the statement are effective for
financial statements for fiscal years ending after December 15, 2002. As the
Company accounts for stock-based compensation using SFAS 123, the adoption of
SFAS 148 has no material impact on the Companys financial condition or results
of operations.

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Accounting Pronouncements (Continued)

In June 2002, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 146, Accounting for Costs Associated with
Exit or Disposal Activities (hereinafter SFAS No. 146). SFAS No. 146
addresses significant issues regarding the recognition, measurement, and
reporting of costs associated with exit and disposal activities, including
restructuring activities.

SFAS No. 146 also addresses recognition of certain costs related to terminating
a contract that is not a capital lease, costs to consolidate facilities or
relocate employees, and termination benefits provided to employees that are
involuntarily terminated under the terms of a one-time benefit arrangement that
is not an ongoing benefit arrangement or an individual deferred-compensation
contract. SFAS No. 146 was issued in June 2002, effective December 31, 2002.
The Companys financial position and results of operations have not been
affected by adopting SFAS No. 146.

In April 2002, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 145, Rescission of FASB Statements No. 4,
44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections
(hereinafter SFAS No. 145) which updates, clarifies and simplifies existing
accounting pronouncements. SFAS No. 4, which required all gains and losses from
the extinguishment of debt to be aggregated and, if material, classified as an
extraordinary item, net of related tax effect was rescinded. As a result, SFAS
No. 64, which amended SFAS No. 4, was rescinded, as it was no longer necessary.
SFAS No. 145 amended SFAS No. 13 to eliminate an inconsistency between the
required accounting for sale-leaseback transactions and the required accounting
for certain lease modifications that have economic effects that are similar to
sale-leaseback transactions. Managements adoption of this statement has not
affected the financial position or results of operations.

Use of Estimates

The process of preparing financial statements in conformity with accounting
principles generally accepted in the United States of America requires the use
of estimates and assumptions regarding certain types of assets, liabilities,
revenues, and expenses. Such estimates primarily relate to unsettled
transactions and events as of the date of the financial statements.
Accordingly, upon settlement, actual results may differ from estimated amounts.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company considers all
short-term debt with original maturities of three months or less to be cash
equivalents.

Fair Value of Financial Instruments

The carrying amounts for cash, receivables, investments, accounts payable and
accrued liabilities approximate their fair value. All instruments are accounted
for on an historical cost basis, which, due to the short maturity of these
financial instruments, approximates fair value at March 31, 2003.

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Concentration of Risk

The Company maintains its cash in primarily one money market account, the funds
of which are not insured by the Federal Deposit Insurance Corporation. The
balance in that account was $107,881 and $110,353 at March 31, 2003 and
December 31, 2002, respectively. Further, the Companys sole source of
revenues currently is royalty income received under a mineral property lease
with Teck Cominco American, Inc. See Note 6.

Derivative Instruments

The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 133 (hereinafter SFAS No. 133), Accounting for
Derivative Instruments and Hedging Activities, as amended by SFAS No. 137,
Accounting for Derivative Instruments and Hedging Activities-Deferral of the
Effective Date of FASB No. 133, and SFAS No. 138, Accounting forCertain
Derivative Instruments and Certain Hedging Activities, which is effective for
the Company as of January 1, 2001. These statements establish accounting and
reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities. They
require that an entity recognize all derivatives as either assets or
liabilities in the balance sheet and measure those instruments at fair value.

If certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss
recognition on the hedging derivative with the recognition of (i) the changes
in the fair value of the hedged asset or liability that are attributable to the
hedged risk or (ii) the earnings effect of the hedged forecasted transaction.
For a derivative not designated as a hedging instrument, the gain or loss is
recognized in income in the period of change.

Historically, the Company has not entered into derivatives contracts to hedge
existing risks or for speculative purposes.

At March 31, 2003, the Company had not engaged in any transactions that would
be considered derivative instruments or hedging activities.

Investments

The Company accounts for its investment in Metaline Contact Mines, LLC using
the equity method. See Note 3.

Compensated Absences

Currently, the Company has no employees; therefore, it is impractical to
estimate the amount of compensation for future absences and no liability has
been recorded in the accompanying financial statements. The Companys policy
will be to recognize the costs of compensated absences when actually paid to
employees.

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basic and Diluted Loss Per Share

Loss per share was computed by dividing the net loss by the weighted average
number of shares outstanding during the period. The weighted average number of
shares was calculated by taking the number of shares outstanding and weighting
them by the amount of time that they were outstanding. Outstanding options have
been excluded from the calculation of diluted loss per share as they would be
antidilutive; accordingly, basic and diluted loss per share are the same.

Revenue Recognition

The Company recognizes royalty revenue as earned according to contract terms.

Interim Financial Statements

The interim financial statements as of and for the quarter ended March 31,
2003, included herein, have been prepared for the Company without audit. These
statements reflect all adjustments, which are, in the opinion of management,
necessary to present fairly the results of operations for these periods. All
such adjustments are normal recurring adjustments. The results of operations
for the periods presented are not necessarily indicative of the results to be
expected for the full fiscal year.

NOTE 3  INVESTMENT IN LLC

On October 30, 1996, the Company organized a Delaware limited liability
company, Metaline Contact Mines, LLC (hereinafter The LLC). Upon organization
of The LLC, the Company transferred substantially all of its assets (primarily
real property surface rights and timber) to The LLC. At the time of The LLCs
formation, the Company was the sole managing member in The LLC, representing
100% ownership.

In 1998, the majority of the Companys interest in The LLC was expensed in
connection with the sale of the majority of The LLCs assets.

At the beginning of 1998, the Companys former shareholders acquired 93% of The
LLC by transferring their stock in the Company to The LLC in exchange for
non-managing membership interests. See Note 7. At the conclusion of this
share exchange, the Companys percentage of ownership in The LLC was reduced to
seven percent (7%). The Company wrote down its initial investment by 93% to
reflect its diluted investment in The LLC. After the write down of its
investment and net change in member capital during the year 1998, the value of
the Companys investment in The LLC was $45,440 at December 31, 1998.

After the dilution of its investment in The LLC, the Company continued as the
managing member of The LLC. See Note 5.

At March 31, 2003, the Company recorded a first quarter loss on its investment
in The LLC of $466, thereby reducing the Companys recorded interest in The LLC
to $34,643.

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 4 - MINERAL PROPERTIES

In 1996, Metaline transferred timber and real property surface rights to The
LLC (see Note 3) but retained underground mineral rights to the transferred
real property and its mining claims, located in Pend Oreille County in
Washington State. The timber and real property surface rights were deemed by
management to have a value equal to their recorded cost and this cost was
transferred to The LLC. The related mineral rights are carried at no cost on
Metalines books.

In 1997, Metaline and The LLC jointly leased certain Pend Oreille County real
estate and all related mineral rights to a major mining company. See Note 6.

NOTE 5  RELATED PARTIES

In March 2002, the Company advanced $18,000 on a short-term, non-interest
bearing, unsecured basis to Murrayville Land Company, LLC, an affiliated
company, to facilitate a real estate purchase. Collection on the receivable is
expected within one year.

During 1998, The LLC sold property for a net gain of $5,958,762. Metalines
share of this gain, before adjustments of the Companys investment from The
LLCs operating results and write down from its substantial decrease in
ownership of The LLC, was $507,858. See Note 3. The Company recorded a
non-current, related party receivable of $109,413 for the balance of the
distribution. Due to uncertainty as to the date this receivable will be
collected, interest at the rate of 7 percent per annum was accrued as a
non-current asset at March 31, 2003 and December 31, 2002.

In June 1998, Metaline executed an agreement with Nor-Pac Limited Company
(hereinafter Nor-Pac), an affiliated company, wherein, for providing
management and consulting services to Metaline, Nor-Pac was entitled to receive
500,000 shares of Metaline common stock in the second half of 1998, 250,000
shares of Metaline common stock quarterly in 1999 and $10,000 per month
thereafter commencing on January 1, 2000. This agreement was modified with an
effective date of January 1, 2002, reducing the fee to $3,000 per month. A
further modification was made effective January 1, 2003, reducing the
management fee to $500 per month.

For additional information on related parties, see Notes 3, 6, 7 and 10.

NOTE 6  MINING LEASE WITH PURCHASE OPTION

On September 1, 1997, Metaline and The LLC acting jointly as lessors executed
an agreement with Cominco American Incorporated (hereinafter Cominco) wherein
Cominco received the right to explore, develop, and mine Metalines underground
mineral rights in Pend Oreille County, Washington for a period of twenty years
with an option renewal period of the same length. Under this lease agreement,
Cominco obligated itself to pay the lessors $3,000 per quarter for the first
five years of the lease with ascending quarterly increments at each successive
five year interval.

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 6  MINING LEASE WITH PURCHASE OPTION (Continued)

The lease characterizes the aforementioned quarterly disbursements as advance
royalty payments which may be fully offset against a three-percent production
royalty retained by the lessors. The lease agreement gives Cominco the option
to purchase 200 surface acres of the leased property for fair market value
during the lease term.

During 2001, Teck Cominco Limited was formed, following the acquistion of
Cominco Corporation by another mining company, Teck Corporation. The former
subsidiary of Cominco Corporation, Cominco American Incorporated was renamed,
Teck Cominco American, Inc., and continues as lessee under the original Cominco
lease agreement.

Effective March 15, 2002, the aforementioned lease agreement was amended,
thereby reducing the amount of acreage leased from the Company, and providing
for an approximately three percent (3%) decrease in royalty payments.

From the inception of the lease through March 31, 2003, Metaline has received
$67,686 in payments from Cominco.

NOTE 7  CHANGE IN LLC OWNERSHIP

On June 1, 1998, Nor-Pac Limited Company (Nor-Pac) purchased control of The
LLC from its three principal owners at the time (Bunker Limited Partnership,
Hecla Mining Company, and Metaline Mining & Leasing Company) by acquiring these
entities non-managing membership interests in Metaline Contact Mines LLC. See
Notes 1 and 5.

NOTE 8  INCOME TAXES

Income taxes are provided based upon the liability method of accounting
pursuant to Statement of Financial Accounting Standards No. 109 Accounting for
Income Taxes (herinafter SFAS 109). Under this approach, deferred income
taxes are recorded to reflect the tax consequences on future years of
differences between the tax basis of assets and liabilities and their financial
reporting amounts at each year-end. A valuation allowance is recorded against
deferred tax assets if management does not believe the Company has met the
more likely than not standard imposed by SFAS No. 109 to allow recognition of
such an asset.

At March 31, 2003, the Company had a net deferred tax asset of approximately
$208,000 principally arising from net operating loss carryforwards for income
tax purposes, which were calculated using a 34% tax rate. As management of the
Company cannot determine that it is more likely than not that the Company will
realize the benefit of the net deferred tax asset, a valuation allowance equal
to the net deferred tax asset has been established.

F-13





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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 8  INCOME TAXES (Continued)

At March 31, 2003, the Company has a net operating loss carryforward of
approximately $612,000, which expire in the years 2018 and 2023.

NOTE 9  STOCK OPTIONS

The Company has adopted Statement of Financial Accounting Standards No. 123,
Accounting for Stock-Based Compensation (hereinafter SFAS No. 123), which
defines a fair value-based method of accounting for stock options and other
equity instruments. This method measures compensation costs based on the
estimated fair value of the award and recognizes that cost over the service
period.

On November 16, 1999, the Companys board of directors approved the Metaline
Contact Mines 1999 Stock Option Plan. This plan allows the Company to
distribute up to 2,000,000 shares of common stock shares to officers,
directors, employees and consultants through the authorization of the Companys
board of directors at an initial exercise price of $0.125, or $0.15, depending
on the terms of the option certificate. The options may be exercised until
November 16, 2009, at which time they expire.

The fair value of the options granted on November 12, 2001 was estimated using
the Black-Scholes Option Price Calculation. The following assumptions were made
to estimate fair value: the risk-free interest rate is 6.0%, volatility is
0.24, and the expected life of the options is eight years. Accordingly, $4,275
of option expense was recorded in the Companys financial statements as
consulting and management fees. In accordance with Financial Accounting
Standard No. 123 paragraph 115, this expense was deemed to be an estimate,
subject to adjustment by decreasing the expense in the period of forfeiture.

Following is a summary of the status of fixed options outstanding at December
31, 2002 and March 31, 2003:

|                               |           |  |           |   |          |   |          |   | 
|------------------------------ | --------- |  | --------- | - | -------- | - | -------- | - | 
|                               |           |  |           |   |          |   | Weighted
|                               |           |  |           |   |          |   | Average 
|                               |           |  | Number of |   | Exercise
|                               |           |  | Shares    |   | Price   
|                               |           |  |           |   |         
|Outstanding January 1, 2002    |           |  | 1,250,000 |   |          | $ | 0.13     |  
|                               | Granted   |  |           |  |          |   |          |  | 
|                               | Exercised |  |           |  |          |   |          |  | 
|                               | Forfeited |  |           |  |          |   |          |  | 
|                               | Expired   |  |           |  |          |   |          |  | 
|                               |           |  |           |   |          |   |          |  
|Outstanding, December 31, 2002 |           |  | 1,250,000 |   |          | $ | 0.13     |  
|                               |           |  |           |   |          |   |          |  
|Exercisable, December 31, 2002 |           |  | 1,250,000 |   |          | $ | 0.13     |  
|                               |           |  |           |   |          |   |          |  

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METALINE CONTACT MINES
NOTES TO FINANCIAL STATEMENTS
March 31, 2003

NOTE 9  STOCK OPTIONS  (Continued)

|                            |           |  |           |   |  |   |      |   | 
|--------------------------- | --------- |  | --------- | - |  | - | ---- | - | 
|Outstanding January 1, 2003 |           |  | 1,250,000 |   |  | $ | 0.13 |  
|                            | Granted   |  |           |  |  |   |      |  | 
|                            | Exercised |  |           |  |  |   |      |  | 
|                            | Forfeited |  |           |  |  |   |      |  | 
|                            | Expired   |  |           |  |  |   |      |  | 
|                            |           |  |           |   |  |   |      |  
|Outstanding, March 31, 2003 |           |  | 1,250,000 |   |  | $ | 0.13 |  
|                            |           |  |           |   |  |   |      |  
|Exercisable, March 31, 2003 |           |  | 1,250,000 |   |  | $ | 0.13 |  
|                            |           |  |           |   |  |   |      |  

NOTE 10  COMMITMENTS AND CONTINGENCIES

All earnings from The LLC in 1997 and 1996 were attributed by The LLCs
principal owners to Metaline. Accordingly, Metaline reported these earnings as
its own taxable income (on both Metalines and The LLCs federal income tax
returns) with Metaline retaining only a 6.9861% interest in The LLC. For
calendar years 1998 through 2001, Metaline reported only its pro rata share
(6.9861%) of taxable income from The LLC, with other LLC members reporting
their respective share of LLC taxable income.

The LLC has agreed, in writing, to indemnify Metaline for any prior year income
distributions requested by other LLC members. As of March 31, 2003, no cash or
property distributions were made by the LLC to its members for indemnification
purposes. In view of the ownership changes in The LLC, future distributions are
expected to be made by The LLC to its members as determined from time to time
by Metaline, its managing member. See Note 7 regarding a change in LLC
ownership and see Note 5 regarding related party commitment.

NOTE 11  SUBSEQUENT EVENTS

Murrayville Land Company, LLC, a related party, has escrowed funds to repay its
loan from the Company of $18,000 with an expected closing in April 2003.

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Item 2. Managements Discussion and Analysis or Plan of Operations



| |  | Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | The Company had revenues from operations of $3,880 in the first quarter
of 2003 versus $3,000 in the first quarter of 2002. The increase in
revenues of $880 was a result of an increase in the amount of advance
royalties paid to the Company under the terms of the New Cominco Lease.
The Company experienced a decreased operating loss of $6,274 in the first
quarter of 2003 versus $16,020 in the first quarter of 2002. The
decreased loss of $6,746 in the first quarter of 2003 was predominantly
due a significant reduction in management fees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Management fees decreased by $7,500, from $9,000 in the first quarter of
2002 to $1,500 in the first quarter of 2003. Professional fees,
consisting of legal and accounting increased by $1,556, from $5,229 in
the first quarter of 2002 to $6,785 in the first quarter of 2003, due to
increased accounting fees associated with the Companys audited financial
statements. Transfer agent fees increased by $86 in the first quarter of
2003, to $453 in the first quarter of 2003 from $367 in the first quarter
of 2002 due to a slight increase costs associated with audit requirements
and in trading volume on the Companys common stock. Office supplies and
expenses decreased to $1,016 in the first quarter of 2003 from $1,035 in
the first quarter of 2002 due to a slight decrease of $19 in the
Companys share of office expenses. Taxes, licenses and fees increased
by $11 in the first quarter of 2003, from $389 in 2002 to $400 in 2003.
Taxes, licenses and fees actually decreased by $89, except for a one-time
filing fee of $100 to the Secretary of State of Idaho for the
incorporation of Nor-Pac Minerals Corporation (Nor-Pac Minerals), a
wholly-owned subsidiary of the Company. Nor-Pac Minerals has no business
or assets of any kind.
|
| |  | The Companys other income decreased by $697 in the first quarter of 2003
to $1,577 from $2,274 in the first quarter of 2002. The decrease was
caused by lower dividend rates earned on the Companys money market
account due to lower balances, and an increased loss of $466 from its
investment in Metaline Contact Mines LLC (MCMLLC). The Companys
interest income of $1,915 on its demand note with MCMLLC during the first
quarter of 2003 remained the same as in the first quarter of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Financial Condition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | The Companys financial condition is such that it can continue at its
current level of operations for an additional 2 years without the
necessity of additional capital. Current level of operations includes
maintaining compliance with the New Cominco Lease, and the reporting
requirements of the SEC. Thereafter, the Company may require additional
capital for future operating costs and working capital. Such additional
capital could be obtained from either increased revenues from operations
(in the event the Companys mineral rights and properties are placed into
commercial production by Teck Cominco), or from the sale of shares of the
Companys authorized, but unissued, common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Under the New Cominco Lease, any production decision on the Companys
mineral rights and properties is under the sole discretion and control of
Teck Cominco. Further, there are no assurances that the Company would be
able to sell shares of its authorized, but unissued, common stock on
terms acceptable to the Company. Any such sales of shares could be
dilutive to the Companys then-existing shareholders, and any debt
financings could involve restrictive covenants with respect to future
capital raising activities, and other financial and operational matters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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| |  | Presently there are no trends, events or uncertainties that have, or are
reasonably likely to have, a material impact on the Companys short-term
or long-term liquidity; there are no material commitments for capital
expenditures, except for the management of its own business affairs; and
there are no known trends, events or uncertainties that have or that are
reasonably expected to have a material impact on the revenues from
operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | As a mineral resource exploration oriented enterprise, the Company will
investigate future business opportunities that are consistent with its
corporate charter and field of expertise, and in the opinion of
management worthy of investigation. It should be noted, however, that
the Company competes with other mining companies in connection with the
acquisition of mineral properties, some of which have substantially
greater financial resources than the Company. Management has not
recognized any such opportunities as of the date of this filing, nor does
it expect to do so during the next 12-month period. In the event such an
opportunity would materialize, the Companys initial due diligence
process in investigating such opportunity would not involve any
significant investment by the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Liquidity and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | To date, the Company has funded its capital requirements from revenues
from operations, and dividends and interest earned on its cash accounts.
The Companys cash position as of March 31, 2003 was $126,763 as compared
to $173,802 as of March 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | The Company has no debt. The Company does not expect to incur any
debt in the immediate future to expand its current level of operation,
nor does it expect to expand its business operation in the immediate
future. The Companys most significant cash requirements are its
accounting fees and financial printing expenses associated with its
reporting requirements with the U.S. Securities and Exchange Commission.
The Companys management fees have been reduced from $3,000 to $500 per
month payable under the terms of its Management Agreement, as amended,
with Nor-Pac. As a related party, Nor-Pac has contractually agreed in
the Management Agreement to (i) review and adjust on a quarterly basis
the amount of the management fees based on time spent on the Companys
affairs, and (ii) convert management fees that are payable in cash into
common stock in the Company in the event of a shortfall of cash (the
exchange rate would be determined at the time of the shortfall). The
Company also has a related party receivable from MCMLLC in the amount of
$109,413, with accrued interest of $197,527355, as of March 31, 2003. As
the Managing Member of MCMLLC, the Company has the ability to collect on
this receivable in the event of a shortfall of cash.
|
| |  | Based on the foregoing, it is managements opinion that at its current
level of operations the Company can satisfy its working capital
requirements internally in the immediate future without the need to seek
outside sources of equity or debt funding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      




Item 3. Controls and Procedures

Annual Evaluations of the Companys Disclosure Controls and Internal Controls.

Within 90 days prior to the date of this Quarterly Report on Form 10-QSB, the
Company evaluated the effectiveness of the design and operation of its
disclosure controls and procedures (Disclosure Controls), and its internal
controls and procedures for financial reporting (Internal Controls). This
evaluation (the Controls Evaluation) was done under the supervision and with
the participation of management, including the Companys Chief Executive
Officer (CEO) and Chief Financial Officer (CFO). Rules adopted by the SEC
require that in this section of the Quarterly Report the Company present the
conclusions of the CEO and the CFO about the effectiveness of its Disclosure
Controls and Internal Controls based on and as of the date of the Controls
Evaluation.

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CEO and CFO Certifications.

Appearing immediately following the Signatures section of this Quarterly Report
there are two separate forms of Certifications of the CEO and the CFO. The
second form of Certification is required in accord with Section 302 of the
Sarbanes-Oxley Act of 2002 (the Section 302 Certification). This section of
the Quarterly Report, which you are currently reading, is the information
concerning the Controls Evaluation referred to in the Section 302
Certifications and this information should be read in conjunction with the
Section 302 Certifications for a more complete understanding of the topics
presented.

Disclosure Controls and Internal Controls.

Disclosure Controls are procedures that are designed with the objective of
ensuring that information required to be disclosed in our reports filed under
the Securities Exchange Act of 1934 (Exchange Act), such as this Quarterly
Report, is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission (SEC) rules and forms.
Disclosure Controls are also designed with the objective of ensuring that such
information is accumulated and communicated to our management, including the
CEO and CFO, as appropriate to allow timely decisions regarding required
disclosure. Internal Controls are procedures which are designed with the
objective of providing reasonable assurance that the Companys (1) transactions
are properly authorized; (2) assets are safeguarded against unauthorized or
improper use; and (3) transactions are properly recorded and reported, all to
permit the preparation of our financial statements in conformity with generally
accepted accounting principles.

Limitations of the Effectiveness of Controls.

The Companys management, including the CEO and CFO, does not expect that its
Disclosure Controls or its Internal Controls will prevent all error and all
fraud. A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the objectives of the
control system are met. Further, the design of a control system must reflect
the fact that there are resource constraints, and the benefits of controls must
be considered relative to their costs. Because of the inherent limitations in
all control systems, no evaluation of controls can provide absolute assurance
that all control issues and instances of fraud, if any, within the Company have
been detected. These inherent limitations include the realities that judgments
in decision-making can be faulty, and that breakdowns can occur because of
simple error or mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more people, or by
management override of the control. The design of any system of controls also
is based in part upon certain assumptions about the likelihood of future
events, and there can be no assurance that any design will succeed in achieving
its stated goals under all potential future conditions; over time, control may
become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent
limitations in a cost-effective control system, misstatements due to error or
fraud may occur and not be detected.

Scope of the Controls Evaluation.

The CEO/CFO evaluation of the Companys Disclosure Controls and our Internal
Controls include a review of the controls objectives and design, the controls
implementation by the Company and the effect of the controls on the
information generated for use in this Quarterly Report. In the course of the
Controls Evaluation, management sough to identify data errors, controls
problems or acts of fraud and to confirm that appropriate corrective action,
including process improvements, were being undertaken. This type of evaluation
will be done on a quarterly basis so that the conclusions concerning controls
effectiveness can be reported in the Companys Quarterly Reports on Form 10-QSB
and Annual Report on Form 10-KSB. The Companys Internal Controls are also
evaluated on an on-going basis by its independent auditors in connection with
their audit and review activities. The overall goals of these various
evaluation activities

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are to monitor our Disclosure Controls and our Internal Controls and make
modifications as necessary; our intent in this regard is that the Disclosure
Controls and the Internal Controls will be maintained as dynamic systems that
change (including the improvements and corrections) as conditions warrant.

Among other matters, the Company sought in its evaluation to determine whether
there were any significant deficiencies or material weaknesses in the
Companys Internal Controls, or whether the Company had identified any acts of
fraud involving personnel who have a significant role in the Companys Internal
Controls. This information was important both for the Controls Evaluation
generally and because items 5 and 6 in the Section 302 Certifications of the
CEO and CFO require that the CEO and CFO disclose that information to our
Boards Audit Committee and to our independent auditors and to report on
related matters in this section of the Annual Report. In the professional
auditing literature, significant deficiencies are referred to as reportable
conditions; these are control issues that could have a significant adverse
effect on the ability to record, process, summarize and report financial data
in the financial statements. A material weakness is defined in the auditing
literature as a particularly serious condition where the internal control does
not reduce to a relatively low level the risk that misstatements caused by
error or fraud may occur in amounts that would be material in relation to the
financial statements and may not be detected within a timely period by
employees in the normal course of performing their assigned functions. The
Company also sought to deal with other controls matters in the Controls
Evaluation, and in each case if a problem was identified, management considered
what revision, improvement and/or correction to make in accord with our
on-going procedures.

In accord with SEC requirements, the CEO and CFO note that, since the date of
the Controls Evaluation to the date of this Quarterly Report, there have been
no significant changes in Internal Controls or in other factors that could
significantly affect Internal Controls, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Conclusions.

Based upon the Controls Evaluation, the Companys CEO and CFO have concluded
that, subject to the limitations noted above, its Disclosure Controls are
effective to ensure that material information relating to the Company is made
known to management, including the CEO and CFO, particularly during the period
when its periodic reports are being prepared, and that its Internal Controls
are effective to provide reasonable assurance that the Companys financial
statements are fairly presented in conformity with generally accepted
accounting principles.




PART II  OTHER INFORMATION




Item 1. Legal Proceedings



| |  | The Company is not a party to any legal proceedings, and management is
not aware of any threatened litigation, claims or assessments.
| |  | -------------------------------------------------------------------------------------------------------------------------------------




Item 2. Changes in Securities



| |  | There has been no change in securities for the quarter ending March 31,
2003.
| |  | -----------------------------------------------------------------------------




Item 3. Defaults Upon Senior Securities



| |  | None.
| |  | -----




Item 4. Submission of Matters to a Vote of Security Holders



| |  | None.
| |  | -----

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Item 5. Other Information



| |  | None.
| |  | -----




Item 6. Exhibits and Reports on Form 8-K



| |  | Exhibit 99.1  Certification Pursuant to 18 U.S.C. Section 1350, as
adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
| |  | --------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Exhibit 99.2  Certification Pursuant to 18 U.S.C. Section 1350, as
adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
| |  | There were no reports filed on Form 8-K during the three month period
ended March 31, 2003.                                           




SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

|                                   |  |                        |                         | 
|---------------------------------- |  | ---------------------- | ----------------------- | 
|DATED this the 7th day of May,2003 |  | METALINE CONTACT MINES
|                                   |  |                        |                         | 
|                                   |  |                        | /s/ John W. Beasley    
|                                   |  | By:                    |                        
|                                   |  |                        | John W. Beasley        
|                                   |  |                        | Secretary/Treasurer/CFO

-22-





---



##### Table of Contents



CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard l. Howell, President of Metaline Contact Mines (the Registrant)
certify that:



|1. |  | I have reviewed this quarterly report on Form 10-QSB being filed;                                                                                                                                                                                                                                                  
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, the report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in the report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the Registrant as of, and for, the periods presented in this quarterly
report;                   
|  
|4. |  | The Registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and
have:                                                                                             



| | (i)   |  | designed such disclosure controls and procedures to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii)  |  | evaluated the effectiveness of the Registrants disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the Evaluation Date); and                                                                                            
|
| | (iii) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures on our
evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The Registrants other certifying officer and I have disclosed, based on
our most recent evaluation, to the Registrants auditors and the audit
committee of the Registrants Board of Directors (or persons performing
the equivalent functions):
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)  |  | all significant deficiencies in the design or operation of
internal controls which could adversely affect the Registrants
ability to record, process, summarize and report financial data and
have identified for the Registrants auditors any material weakness
in internal controls; and
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | any fraud, whether or not material, that involves management
or other employees who have a significant role in the Registrants
controls.                                                                                                                                                   



|6. |  | The Registrants other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and
material weaknesses.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:  May 7, 2003

| |  |                             
| |  | ----------------------------
| |  | /s/      Richard L. Howell  
| |  |                             
| |  | Richard L. Howell, President





---



##### Table of Contents



CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John W. Beasley, Secretary/Treasurer and Chief Financial Officer of Metaline
Contact Mines (the Registrant) certify that:



|1. |  | I have reviewed this quarterly report on Form 10-QSB being filed;                                                                                                                                                                                                                                                  
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, the report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
quarterly report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in the report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the Registrant as of, and for, the periods presented in this quarterly
report.                   
|  
|4. |  | The Registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and
have:                                                                                             



| | (i)   |  | designed such disclosure controls and procedures to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared.
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii)  |  | evaluated the effectiveness of the Registrants disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this annual report (the Evaluation Date); and                                                                                               
|
| | (iii) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures on our
evaluation as of the Evaluation Date;                                                                                                                        



|5. |  | The Registrants other certifying officer and I have disclosed, based on
our most recent evaluation, to the Registrants auditors and the audit
committee of the Registrants Board of Directors (or persons performing
the equivalent functions):
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i)  |  | all significant deficiencies in the design or operation of
internal controls which could adversely affect the Registrants
ability to record, process, summarize and report financial data and
have identified for the Registrants auditors any material weakness
in internal controls; and
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | any fraud, whether or not material, that involves management
or other employees who have a significant role in the Registrants
controls; and                                                                                                                                               



|6. |  | The Registrants other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and
material weaknesses.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:  May 7, 2003

| |  |                                                              
| |  | -------------------------------------------------------------
| |  | /s/      John W. Beasley                                     
| |  |                                                              
| |  | John W. Beasley, Secretary/Treasurer &Chief Financial Officer