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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
 FORM 10-QSB (Mark One) þ
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the quarterly period from 1-01-05 to 3-31-05 o
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT. 000-31025
 METALINE CONTACT MINES 
  Washington
    
    91-0779945(State or jurisdiction of incorporation or
    
    (IRS Employer Identification No.)organization)
 W. 3848 Turtle Patch Road, Pine River WI 54965 
  920-987-5317   State the number of shares outstanding of each of the issuers classes of common equity, as of the
latest practical date: 13,783,189 Transitional Small Business
Disclosure Format (Check one): Yes
o  No þ




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TABLE OF CONTENTS PAGEPART I - FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    F-1Item 2. Managements Discussion and Analysis
    
    
    3Item 3. Controls and Procedures
    
    
    4PART II - OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    4Item 2. Changes in Securities
    
    
    5Item 3. Defaults Upon Senior Securities
    
    
    5Item 4. Submission of Matters to a Vote of Security Holders
    
    
    5Item 5. Other Information
    
    
    5Item 6. Exhibits and Reports on Form 8-K
    
    
    5SIGNATURES
    
    
    5EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2
  -2-




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PART I  FINANCIAL INFORMATION 
 Item 1. Financial Statements The Company has prepared the unaudited financial statements presented below in accordance
with accounting principles generally accepted in the United States for interim financial
information, as well as the instructions to Form 10-QSB. Accordingly, they do not include
all the information and footnotes required by generally accepted accounting principles for
complete financial statements. However, the financial statements have been reviewed by the
Companys independent auditors, Williams & Webster, P.S., using professional standards and
procedures for conducting such reviews established by generally accepted auditing standards,
and we include herewith their report. It is the opinion of the Companys management that
all adjustments considered necessary for the fair presentation of the interim financial
statements have been included. Operating results for the three-month period ended March 31,
2005 are not necessarily indicative of the results that may be expected for the full year
ending December 31, 2005. For further information refer to the financial statements and footnotes thereto in the
Companys Annual Report on Form 10-KSB for the year ended December 31, 2004. F-1




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METALINE CONTACT MINESBALANCE SHEETS
 March 31,2005
    
    
    December 31,(unaudited)
    
    
    2004ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    88,483
    
    
    $
    90,652Total Current Assets
    
    
    88,483
    
    
    
    90,652OTHER ASSETSRelated party receivable
    
    
    109,413
    
    
    
    109,413Accrued interest - related party receivable
    
    
    32,552
    
    
    
    30,637Investments
    
    
    25,600
    
    
    
    5,100Website, net of amortization
    
    
    833
    
    
    
    917Prepaid expenses
    
    
    3,350
    
    
    
    350Total Other Assets
    
    
    171,748
    
    
    
    146,417TOTAL ASSETS
    
    $
    260,231
    
    
    $
    237,069LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESUnearned royalty income
    
    $
    3,880
    
    
    $
    3,880Total Current Liabilities
    
    
    3,880
    
    
    
    3,880COMMITMENTS AND CONTINGENCIES
    
    
    
    
    
    
    STOCKHOLDERS EQUITYCommon stock, $0.05 par value;20,000,000 shares authorized, 13,783,189
issued and outstanding, respectively
    
    
    726,570
    
    
    
    726,570Additional paid-in capital
    
    
    283,040
    
    
    
    283,040Stock options
    
    
    47,907
    
    
    
    47,907Accumulated deficit
    
    
    (801,166
    )
    
    
    (824,328
    )Total Stockholders Equity
    
    
    256,351
    
    
    
    233,189TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY
    
    $
    260,231
    
    
    $
    237,069
 The accompanying condensed notes are an integral part of these financial statements. F-2




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Three Months EndedMarch 31,
    
    
    March 31,2005
    
    
    2004(unaudited)
    
    
    (unaudited)REVENUESRoyalty income
    
    $
    44,880
    
    
    $
    3,880GENERAL AND ADMINISTRATIVE EXPENSESProperty expense
    
    
    
    
    
    
    37,765Administrative expenses
    
    
    23,940
    
    
    
    1,102TOTAL EXPENSES
    
    
    23,940
    
    
    
    38,867OPERATING INCOME (LOSS)
    
    
    20,940
    
    
    
    (34,987
    )OTHER INCOME (EXPENSE)Dividend income
    
    
    307
    
    
    
    54Interest income
    
    
    1,915
    
    
    
    1,915Loss from investment in LLC
    
    
    
    
    
    
    (100
    )TOTAL OTHER INCOME
    
    
    2,221
    
    
    
    1,869INCOME (LOSS) BEFORE TAXES
    
    
    23,162
    
    
    
    (33,118
    )INCOME TAX EXPENSE
    
    
    
    
    
    
    NET INCOME (LOSS)
    
    $
    23,162
    
    
    $
    (33,118
    )NET INCOME (LOSS) PER COMMON SHARE,
BASIC AND DILUTED
    
    $
    nil
    
    
    $
    nilWEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING,
BASIC AND DILUTED
    
    
    13,783,189
    
    
    
    14,375,603
 The accompanying condensed notes are an integral part of these financial statements. F-3




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METALINE CONTACT MINESSTATEMENTS OF CASH FLOWS
 Three Months EndedMarch 31,
    
    
    March 31,2005
    
    
    2004(unaudited)
    
    
    (unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:Net income (loss)
    
    $
    23,162
    
    
    $
    (33,118
    )Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:Amortization expense
    
    
    
    
    
    
    Loss in LLC investment
    
    
    
    
    
    
    100Rent expense paid with NJMC stock
    
    
    20,500
    
    
    
    Royalty income received in NJMC stock
    
    
    (41,000
    )
    
    
    Common stock issued in payment of expenses
    
    
    
    
    
    
    37,765Stock options issued for directors fees
    
    
    
    
    
    
    Changes in assets and liabilities:Increase in accrued interest receivable
    
    
    (1,915
    )
    
    
    (1,914
    )Increase in prepaid expenses
    
    
    (2,916
    )
    
    
    (3,000
    )Net cash used by operating activities
    
    
    (2,169
    )
    
    
    (167
    )CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:
    
    
    
    
    
    
    CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
    
    
    
    
    
    
    Net decrease in cash and cash equivalents
    
    
    (2,169
    )
    
    
    (167
    )Cash at beginning of period
    
    
    90,652
    
    
    
    105,687Cash at end of period
    
    $
    88,483
    
    
    $
    105,520SUPPLEMENTAL CASH FLOW DISCLOSURES:Income taxes paid
    
    $
    
    
    
    $
    Interest paid
    
    $
    
    
    
    $
    NON-CASH TRANSACTIONS:Loss in LLC investment
    
    $
    
    
    
    $
    100Common stock issued in payment of expenses
    
    $
    
    
    
    $
    37,765Rent expense paid with NJMC stock
    
    $
    20,500
    
    
    $
    Royalty income received in NJMC stock
    
    $
    41,000
    
    
    $
    
 The accompanying condensed notes are an integral part of these financial statements. F-4




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METALINE CONTACT MINESCONDENSED NOTES TO THE FINANCIAL STATEMENTSMARCH 31, 2005
 NOTE 1  ORGANIZATION AND DESCRIPTION OF BUSINESS Metaline Contact Mines (hereinafter Metaline or the Company) 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. The Companys fiscal year-end is December 31. NOTE 2  BASIS OF PRESENTATION The foregoing unaudited interim financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and with the
instructions to Form 10-QSB and Regulation S-B as promulgated by the Securities and Exchange
Commission (SEC). Accordingly, these financial statements do not include all of the disclosures
required by generally accepted accounting principles in the United States of America for complete
financial statements. These unaudited interim financial statements should be read in conjunction
with the audited financial statements for the year ended December 31, 2004. In the opinion of
management, the unaudited interim financial statements furnished herein include all adjustments,
all of which are of a normal recurring nature, necessary for a fair statement of the results for
the interim period presented. The preparation of financial statements in accordance with generally accepted accounting principles
in the United States of America requires the use of estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known
to exist as of the date the financial statements are published, and the reported amounts of
revenues and expenses during the reporting period. Uncertainties with respect to such estimates
and assumptions are inherent in the preparation of the Companys financial statements; accordingly,
it is possible that the actual results could differ from these estimates and assumptions and could
have a material effect on the reported amounts of the Companys financial position and results of
operations. Operating results for the three month period ended March 31, 2005 are not necessarily indicative of
the results that may be expected for the year ending December 31, 2005. F-5




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METALINE CONTACT MINESCONDENSED NOTES TO THE FINANCIAL STATEMENTSMARCH 31, 2005
 NOTE 3  RECENT ACCOUNTING PRONOUNCEMENTS In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No. 153 (hereinafter SFAS No. 153). This statement addresses the measurement of
exchanges of nonmonetary assets. The guidance in APB Opinion No. 29, Accounting for Nonmonetary
Transactions, is based on the principle that exchanges of nonmonetary assets should be measured
based on the fair value of the assets exchanged. The guidance in that opinion, however, included
certain exceptions to that principle. SFAS No. 153 amends APB Opinion 29 to eliminate the
exception for nonmonetary exchanges of similar productive assets and replaces it with a general
exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary
exchange has commercial substance if the future cash flows of the entity are expected to change
significantly as a result of the exchange. This statement is effective for financial statements
for fiscal years beginning after June 15, 2005. Earlier application is permitted for nonmonetary
asset exchanges incurred during fiscal years beginning after the date of this statement is issued.
Management believes the adoption of this statement will not impact the financial statements of the
Company. In December 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No. 152, which amends SFAS Statement No. 66, Accounting for Sales of Real Estate, to
reference the financial accounting and reporting guidance for real estate time-sharing transactions
that is provided in AICPA Statement of Position (SOP) 04-2, Accounting for Real Estate
Time-Sharing Transactions. This statement also amends SFAS No. 67, Accounting for Costs and
Initial Rental Operations of Real Estate Projects, to state that the guidance for (a) incidental
operations and (b) costs incurred to sell real estate projects, does not apply to real estate
time-sharing transactions. The accounting for those operations and costs is subject to the
guidance in SOP 04-2. This statement is effective for financial statements for fiscal years
beginning after June 15, 2005. Management believes the adoption of this statement will not impact
the financial statements of the Company. In November 2004, the Financial Accounting Standards Board issued Statement of Financial Accounting
Standards No. 151, Inventory Costs an amendment of ARB No. 43, Chapter 4 (hereinafter SFAS No.
151). This statement amends the guidance in ARB No. 43, Chapter 4, Inventory Pricing, to
clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs, and
wasted material (spoilage). Under some circumstances, SFAS No. 151 mandates that items such as
idle facility expense, excessive spoilage, double freight, and rehandling costs be recognized as
current-period charges. In addition, this statement requires that allocation of fixed production
overheads to the costs of conversion be based on the normal capacity of the production facilities.
This statement is effective for inventory costs incurred during fiscal years beginning after June
15, 2005. Management believes the adoption of this statement will not impact the financial
statements of the Company. F-6




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METALINE CONTACT MINESCONDENSED NOTES TO THE FINANCIAL STATEMENTSMARCH 31, 2005
 NOTE 4  MINERAL PROPERTIES Pend Oreille/Metaline Zinc Mines
The Company is receiving royalty paymets related to a lease agreement with Teck Cominco American,
Inc. (hereinafter Teck Cominco) Under the terms of the agreement, Teck Cominco has the right to
explore, develop, and mine the Companys underground mineral rights in Pend Oreille County,
Washington for a period of twenty years with an option renewal period of the same length. Teck
Cominco is currently obligated to pay the Company $3,880 per quarter, with ascending quarterly
increments at each successive five year interval. 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 Company. The lease agreement gives Teck Cominco
the option to purchase 200 surface acres of the leased property for fair market value during the
lease term. From the inception of the lease through March 31, 2005, the Company has received
$109,486 in payments from Teck Cominco. Golden Chest Mine
In January 2004, the Company issued 466,954 shares of its common stock to Paymaster Resources
Incorporated (hereinafter Paymaster), a related party (due to common officers anddirectors), in
order to acquire Paymasters interest in the Golden Chest Mine minerals lease to patented mining
claims in Shoshone County, Idaho. In this transaction, the Company also acquired Paymasters
interest in an exploration agreement with New Jersey Mining Company which relates to the
aforementioned mining claims. In January of 2005, the Company executed a mining lease with New Jersey Mining Company on the
Companys Golden Chest Mine. The Company received 100,000 shares of New Jersey Mining Company
stock with a fair market value of $41,000. The terms of the lease require the owner of the real
property (mine) to receive one-half of the royalty payments in the form of rent. Accordingly,
during the three months ended March 31, 2005, $20,500 is recorded as rent expense and the remaining
$20,500 is recorded as an investment. NOTE 5  RELATED PARTY TRANSACTIONS During 1998, Metaline Contact Mines, LLC (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. The Company recorded a related party receivable of $109,413 for the balance of the
distribution. Due to uncertainty as to the date this receivable will be collected, this asset
together with accrued interest at the rate of 7 percent per annum is recorded as a non-current
asset. Over the years, Metaline has executed agreements with Nor-Pac Limited Company (hereinafter
Nor-Pac), an affiliated company. In November of 2004, The LLC assigned its rights, title and
interest in the Companys aforementioned related party receivable of $109,413 and accrued interest
to Nor-Pac. F-7




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METALINE CONTACT MINESCONDENSED NOTES TO THE FINANCIAL STATEMENTSMARCH 31, 2005
 NOTE 6  INCOME TAXES At March 31, 2005, the Company had a net deferred tax asset of approximately $218,000, principally
arising from net operating loss carryforwards for income tax purposes, which was calculated using a
34% tax rate. This resulted in a decrease to the net deferred tax asset of approximately $8,000 for
the three months ended March 31, 2005. 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. At March 31, 2005, the Company has a net operating loss carryforward of approximately $641,000,
which will fully expire in the year 2024. NOTE 7  STOCK OPTIONS The Company did not engage in stock option activity during the first quarter of 2005. Summarized
information about stock options outstanding and exercisable at March 31, 2005 is as follows: Options Outstanding
    
    
    Options ExercisableWeighted AverageRemainingContractual Life
    
    
    Weighted Average
    
    
    
    
    
    
    Weighted AverageExercise Price
    
    Number Outstanding
    
    
    (Years)
    
    
    Exercise Price
    
    
    Number Exercisable
    
    
    Exercise Price$                 0.06
    
    
    500,000
    
    
    
    4.62
    
    
    $
    0.06
    
    
    
    500,000
    
    
    $
    0.060.125
    
    
    1,000,000
    
    
    
    4.62
    
    
    
    0.125
    
    
    
    1,000,000
    
    
    
    0.1250.15
    
    
    250,000
    
    
    
    4.62
    
    
    
    0.15
    
    
    
    250,000
    
    
    
    0.15$        0.06-0.15
    
    
    1,750,000
    
    
    
    4.62
    
    
    $
    0.11
    
    
    
    1,750,000
    
    
    $
    0.11
 NOTE 8  SUBSEQUENT EVENTS In April 2005, the Company received a NSR royalty payment of $985 from New Jersey Mining Company.
This royalty is derived from the sale of sulfide concentrates generated from development ore mined
during the construction of the exploration ramp at the Golden Chest Mine in 2004. F-8




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Item 2. Managements Discussion and Analysis and Results of Operations Results of Operations The Company had revenues from operations of $44,880 in the first quarter of 2005, as
compared to $3,880 in the first quarter of 2004. The increase of $41,000 was a one-time
payment from New Jersey Mining Company (hereinafter New Jersey) to exercise its option
to lease the Companys Golden Chest Mine. The payment was in the form of 100,000 shares of
New Jerseys common stock, with a fair market value at the time of $41,000. The advance
royalties the Company received from Teck Cominco American Incorporated (hereinafter Teck
Cominco) under the New Cominco Lease remained constant at $3,880 in the first quarters of
2005 and 2004. The Company achieved an operating profit of $20,940 during the first quarter of 2005,
versus an operating loss of $34,987 in the first quarter of 2004. The profit was
attributable to the payment received from New Jersey described above, as well as a decrease
in administrative expenses of $14,927, from $38,867 in the first quarter of 2004 to $23,940
in the first quarter of 2005. Promotional expenses incurred during the first quarter of 2005 were $750, versus nil during
the same period in 2004, due to the Company issuing a press release. Property expenses
during the first quarter of 2005 were reduced by $37,765, to nil, versus $37,765 in the
first quarter of 2004. This saving was a result of the one-time expense charge in 2004 of
the acquisition cost of the lease on the Golden Chest Mine. Rent expense increased to
$20,500 in the first quarter of 2005, versus nil during the same period of 2004. The
increase of $20,500 was a royalty payment due the underlying owner of the Golden Chest Mine
under the lease agreement. There was an increase in administrative expenses in the first
quarter of 2005, to $2,698, as compared to $1,202 in the first quarter of 2004. The
difference of $1,496 is attributable to the billing cycle of the Companys financial
printing firm to Edgarize and file the Companys Form 10-KSB report, and an increase in its
share of office expenses due to an upgrade in internet services. During the first quarter of 2005, the Companys other income increased by $352, to $2,221,
from $1,869 in the first quarter of 2004, due to an increase in dividend income of $253,
and the Company having no loss on its membership interest in Metaline Contact Mines LLC in
the first quarter of 2005, versus a $100 loss in the first quarter of 2004. Interest
income remained constant at $1,915 for the first quarters of 2005 and 2004. Financial Condition Management feels that the Company can continue as an on-going business at its current level
of operations for approximately 2 additional years without the infusion of additional
capital. Additional capital could be obtained from: increased revenues from operations;
the sale of shares of the Companys authorized, but unissued, common stock; and/or the sale
of certain of the Companys assets. On the subject of increasing revenues from operations, production decisions on the
Companys mineral projects are under the sole control of third parties; namely, Teck
Cominco and New Jersey. However, New Jersey has announced that they will commence a 50
metric ton per day commercial mining operation at the Companys Golden Chest Mine in the
2nd quarter 2005, from which the Company will receive a NSR production royalty.
In addition, the Company will receive a 5% NSR production royalty on approximately 1,200
metric tons of development ore mined in 2004 by New Jersey. These expected NSR production
royalties should improve the Companys operating revenues. -3-




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Liquidity and Capital Resources Traditionally, the Company has funded its capital requirements from revenues from
operations, dividends earned on its cash accounts, and other income. As of March 31, 2005,
the Companys cash position was $88,483, compared to $90,652 on March 31, 2004. The
Company has no debt, and does not expect to incur any debt in the immediate future. The
Companys most significant cash requirements are professional fees and expenses associated
with Securities and Exchange Commission reporting requirements. The Company has a related party receivable from Nor-Pac Limited Company in the amount of
$109,413, with accrued interest of $32,552, as of March 31, 2005. The Company believes it
has the ability to collect on this receivable in the event of a shortfall of cash. In
addition, the Company owns 60,000 shares of New Jersey common stock with a recorded value
of $25,600, which shares could be sold pursuant to Rule 144 of the Securities Act of 1933,
as amended. The Company will also receive a 5% Net Smelter Return (NSR) royalty payment
from New Jersey for ramp development ore mined in 2004 as mentioned above. Subsequent Event The Company has received 5% NSR production royalty of $985 from New Jersey generated from
the sale of sulfide concentrates produced from development ore mined on the Katie-Dora Vein
during New Jerseys 2004 exploration ramp project. Additional royalties are expected later
from the sale of a smaller quantity but higher-grade material containing 30% gold recovered
from the cleanout of New Jerseys ball mill. Final royalty figures from the ramp
development ore will be reported in the Companys 2nd quarter Form 10-QSB
report. 
 Item 3. Controls and Procedures The Companys Chief Executive Officer (CEO) and Chief Financial Officer (CFO) performed
an evaluation of the effectiveness of the design and operation of the Companys disclosure
controls and procedures. On that evaluation, the CEO and CFO concluded that the Companys
current disclosure controls and procedures were effective as of March 31, 2005 in ensuring
that all material information required in this quarterly report has been made known to them
in a timely fashion. There have been no changes in the Companys internal controls over financial reporting
during the quarter ended March 31, 2005 that has materially affected, or is reasonably
likely to materially affect, its internal controls over financial reporting. For further information refer to the Controls and Procedures section in the Companys
Annual Report on Form 10-KSB for the year ended December 31, 2004, incorporated herein by
reference. 
 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. -4-




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Item 2. Changes in Securities There has been no change in securities for the quarter ending March 31, 2005. 
 Item 3. Defaults Upon Senior Securities None. 
 Item 4. Submission of Matters to a Vote of Security Holders None. 
 Item 5. Other Information None 
 Item 6. Exhibits and Reports on Form 8-K  (a)
    Exhibit 31.1  Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Exhibit 31.2  Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.Exhibit 32.1  Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.Exhibit 32.2  Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.(b)
    A Form 8-K was filed on January 6, 2005, announcing the execution of a
long-term lease with New Jersey Mining Company on the Companys Golden Chest Mine. 
 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 4th day of May, 2005
    
    METALINE CONTACT MINESBy:
    
    /s/ John W. BeasleyJohn W. BeasleySecretary/Treasurer/CFO
 -5-