FORM 10-KSB

SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.20549



|[ x ] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended - June 30, 2003
|----- | ------------------------------------------------------------------------------------------------------------------------------
|OR    |                                                                                                                               
|[   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES EXCHANGE ACT OF 1934 For the transition period from      

Commission file number 000-33191

ANCONA MINING CORPORATION
(Exact name of registrant as specified in its charter)



|NEVADA (State or other jurisdiction of incorporation or organization) | 88-0436055 (Employer Identification No.)
|--------------------------------------------------------------------- | ----------------------------------------

1040 West Georgia Street
Suite 1160
Vancouver, British Columbia
Canada   V6E 4H1
(Address of principal executive offices, including zip code.)

(604) 605-0885(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



| | Title of each class 
None | Name of each exchange on which registered
None
| | ------------------------- | ----------------------------------------------

Securities registered pursuant to Section 12(g) of the Act:



| | Title of each class | Common Stock
| | ------------------- | ------------

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes [ x ]     No [   ]



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Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by referenced in Part III of this Form 10-KSB or any amendment to this Form 10-KSB [   ]

State issuer's revenues for its most fiscal year June 30, 2003:  $-0-.

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity. As of September 3, 2003, the value was $5,311,000.

State the number of shares outstanding of each of the issuer's classes of common equity, as of June 30, 2003: 30,311,000

We make forward-looking statements in this document. Our forward-looking statements are subject to risks and uncertainties. You should note that many factors, some of which are described in this section or discussed elsewhere in this document, could affect our company in the future and could cause our results to differ materially from those expressed in our forward-looking statements. Forward-looking statements include those regarding our goals, beliefs, plans or current expectations and other statements regarding matters that are not historical facts. For example, when we use the words "believe," "expect," "anticipate" or similar expressions, we are making forward-looking statements. We are not required to release publicly the results of any revisions to these forward-looking statements we may make to reflect future events or circumstances.













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PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

General

We were incorporated in the State of Nevada on September 7, 1999. We are engaged in the acquisition and exploration of mining properties. We maintain our statutory registered agent's office at 101 Convention Center Drive, Suite 700, Las Vegas, Nevada 89109 and our business office is located at 1040 West Georgia Street, Suite 1160, Vancouver, British Columbia, Canada V6E 4H1. Our telephone number is (604) 605-0885.

Background

We are an exploration stage company. There is no assurance that a commercially viable mineral deposit exists on our property. Further exploration will be required before a final evaluation as to the economic and legal feasibility is determined.

In September 1999, Hugh Grenfal our president and a member of the board of directors, acquired one mineral property containing three mining claims in British Columbia, Canada by arranging the staking of the same through a third party. Canadian jurisdictions allow a mineral explorer to claim of portion of available Crown lands as its exclusive area for exploration by depositing posts or other visible markers to indicate a claimed area. The claimed area is called a claim and the process of posting the area is known as staking. Mr. Grenfal paid the unrelated third party $1,353 to stake the claims. The claims are recorded in Mr. Grenfal's name for tax purposes, however, title to the claims has been conveyed to us by an unrecorded deed. To date we have not performed any work on our property.

The claims are recorded in Mr. Grenfal's name to a avoid paying additional fees, however, title to the claims has been conveyed to us by an unrecorded warranty deed. Under British Columbia provincial law, if the deed is recorded in our name, we will have to pay a minimum of $500.00 and file other documents since we are a foreign corporation in Canada. We have decided that if gold is discovered on the property and it is economical to remove the gold, we will record the deed, pay the additional fees, and file as a foreign corporation.

Accordingly, the title to the property is superior to all other unrecorded deeds. Should Mr. Grenfal transfer title to another person and that deed is recorded prior to recordation of our deed, that person will have superior title and we will have none. If that event occurs, however, Mr. Grenfal will be liable to us for monetary damages for breach of his warranty of title.







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Location and Access

The property is located 181 kilometers east of Vancouver, near Beaverdell on the West Kettle River. The property is located within the West Kettle River Valley, south from the village of Beaverdell, in south central British Columbia, Canada. Highway 33 runs through the center of the property and several secondary roads and trails provide access to most parts of the property.

Plant and Equipment

We do not own a plant or any equipment. If we discover mineralized material we intend to hire independent third party contractors to mine the property. There is no source of power on the property. Power for operations will be generated from gasoline generators. There is no equipment on the property.

Physiography

The property is situated within the Monashee Mountains of the Southern Interior Physiographic Region, and elevations range from 2,500 feet along the West Kettle River to 5,100 feet at the extreme western edge of the property.

Slopes within the claim area are generally steep except for the bottom of the West Kettle River Valley and the height of land within the property. Vegetation consists mainly of fir; larch and pine, much of it mature second growth. Some of the area has been recently logged or burned over. There is relatively little underbrush, and open grassy areas are not uncommon. Outcrops are fairly sparse except locally on the east flanks of ridges, where small bluffs with talus aprons occur.

The climate features warm summers and mild winters. The West Kettle Valley is fairly dry in the summers, although not as dry as the Okanagan Valley to the west. Average yearly precipitation is 20 inches. A snow pack of 3-5 feet begins to accumulate in November and lingers in places into May. The moderate climate in the project area allows for possible year round exploration.

The process by which the features of the property and the minerals it may contain were determined by Mr. Grenfal through personal observations.

Property Geology

The major type of rock found on the property is quartz. Gold, silver and copper are found in quartz veins. We have determined that there are quartz veins on the property. We have not determined if there is any gold, silver or copper in the quartz veins.

Our Proposed Exploration Program

We must conduct exploration to determine what amount of minerals, if any, exist on our properties and if any minerals which are found can be economically extracted and profitably processed.







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Our exploration program is designed to economically explore and evaluate our properties. We do not claim to have any ores or reserves whatsoever at this time on any of our properties. We intend to implement an exploration program and intend to proceed in the following three phases:

Phase 1 begins with research of the available geologic literature, personal interviews with geologists, mining engineers and others familiar with the prospect sites. We conducted part of this phase of the exploration process on our properties.

When the research is completed, our initial work will be augmented with mapping and testing the subsurface of our claims. When available, existing workings, such as trenches, prospect pits, shafts or tunnels will be examined. If an apparent mineralized zone is identified and narrowed down to a specific area by the studies, we will to begin trenching the area. Trenches are generally approximately 150 ft. in length and 10-20 ft. wide.

These dimensions allow for a thorough examination of the surface of the vein structure types generally encountered in the area. They also allow for efficient restoration of the property as a result of our exploration.

Once excavation of a trench is completed we will take samples and analyze them for economically potential minerals that are known to have occurred in the area. Careful interpretation of this available data collected from the various tests aid in determining whether or not the prospect has current economic potential and whether further exploration is warranted.

Phase 1 will take about 3 months and cost about $20,000.

Phase 2 involves an initial examination of the underground characteristics of the vein structure that was identified by Phase 1 of exploration. Phase 2 is aimed at identifying any mineral deposits of potential economic importance. The methods employed are:



|* 
* 
* | more extensive trenching
more advanced geophysical work
drift driving
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Drift driving is the process of constructing a tunnel to take samples of mineralized material for testing. Later, the tunnel can be used for extraction of the mineralized material. The geophysical work gives a general understanding of the location and extent of mineralization at depths that are unreachable by surface excavations and provides a target for more extensive trenching and core drilling. Trenching identifies the continuity and extent of mineralization, if any, below the surface. After a thorough analysis of the data collected in Phase 2, we will decide if the property warrants a Phase 3 study.

Phase 2 will take about 3 months and cost about $20,000.







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Phase 3 is aimed at outlining some mineralized material and tonnage and establish an average grade of mineralized material. This is accomplished through extensive drift driving. Mineralized material is not a reserve until a comprehensive evaluation based upon unit cost, grade, recoveries, and other material factors concludes legal and economic feasibility. Mineralized material is a mineralized body which has been delineated by appropriately spaced drilling and/or underground sampling to support a sufficient tonnage and average grade of metals. Such a deposit does not qualify as a reserve, until a comprehensive evaluation based upon unit cost, grade, recoveries, and other material factors conclude legal and economic feasibility.

Phase 3 will take about 6 months and cost about $80,000.

We do not intend to interest other companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.

Regulations

Our mineral exploration program is subject to the Canadian Mineral Tenure Act Regulation. This act sets forth rules for



|* 
* 
* 
* | locating claims
posting claims
working claims
reporting work performed
|---------- | ----------------------------------------------------------------------

We are subject to the British Columbia Mineral Exploration Code which tells us how and where we can explore for minerals. We must comply with these laws in order to operate our business. Compliance with these rules and regulations will not effect our operations.

Environmental Law

We are also subject to the Health, Safety and Reclamation Code for Mines in British Columbia. This code deals with environmental matters relating to the exploration and development of mining properties. Its goals are to protect the environment through a series of regulations effecting 1. Health and Safety, 2. Archaeological Sites and 3. Exploration Access.

We are in compliance with the foregoing act and will continue to comply with the act in the future. Because of our proposed limited operations, we believe the costs and effects associated with complying with the environmental laws will not have a material adverse affect upon our operations. At the present time we cannot estimate the costs of complying with the environmental laws.

Exploration

Exploration work was carried out on the Amex, Marmot and Wombat claim. Field work was conducted between July 29 and August 3, 2001.







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The entire exploration program focused on assessing the potential for gold, silver, lead and zinc mineralization within the boundaries of our properties.

Geological mapping and sampling of seven rock chip samples were conducted within the "May" Audit. The adit is 25 feet deep with a small chamber at the end of the tunnel. In an effort to detect traces of economic minerals of interest to us on our property, a total of 114 soil samples and 2 rock samples were collected at regular intervals and spacing, over a targeted grid area of 984 feet x 1,312 feet. Samples have been submitted to the Cominco Exploration Laboratory for analysis for gold and 32 other elements. Results failed to outline strike extensions to the May Adit mineralization.

Employees

Initially, we intend to use the services of subcontractors for manual labor exploration work on our properties. Our only employees will be Hugh Grenfal and Sergei Stetsenko, our officers and directors. No fees have been paid to them for this work and none is currently contemplated.

Employees and Employment Agreements

At present, we have no employees, other than Messrs.. Grenfal and Stetsenko, our officers and directors, who were compensated for their services. Messrs. Grenfal and Stetsenko do not have employment agreements with us. Messrs. Grenfal and Stetsenko are not full-time employees and devote approximately 25% of their time to our operations. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any employees.

Related Events

On March 30, 2001, the Securities and Exchange Commission declared our Form SB-2 Registration Statement effective, SEC File no. 333-94835. We offered up to 2,000,000 shares at $0.10 per share.

On June 20, 2001, we completed our public offering by raising $106,220 and sold 1,062,200 shares at our offering price of $0.10. There was no underwriter.  These shares were subsequently split to yield 5,311,000 shares.

From the effective date of the registration statement to the ending date of the reporting period, June 30, 2003, no underwriting discounts nor commissions, finders' fees and similar expenses (direct or indirect) were paid. The gross proceeds of the offering were $106,220. Funds were spent in accord with the prospectus and as recorded in the quarterly filings.

With November 18, 2002 as Record Date, Ancona Mining Corporation split its shares by issuing four new shares for each one held. For example, a shareholder owning 100 shares on November 18, 2002 would have received 400 new shares, to give him or her a total of 500.







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Status of Our Exploration Program

We are currently in Phase One of our proposed exploration program.

The program, consisting of soil and rock sampling as well as geological mapping, was completed between July 3 and July 7, 2002. The program was designed to follow-up previous explorers' results that discovered mineralization (mercury, antimony and gold) that is indicative of a gold bearing shallow (epithermal) hydrothermal style system.

Geological mapping at a scale of 1:2,500 was completed over the entire property. A total of 57 soil samples, taken at either 25m (82 ft) or 50m (160 ft) intervals along portions of the 8,500m (5.3 miles) of flagged control grid. 21 rock samples were also collected. All soil and rock samples were analyzed using gold analysis and 30-element ICP at Assayers Canada (Min-En) Laboratory in Vancouver.

Geological mapping confirmed that the property is underlain by three geological units. The Bridge River Complex, a sequence of rocks consisting of dark gray/brown basalt +/- limestone-chert, argillite, chert, tuffaceous sediments (medium grained white/beige quartz porphyry and quartz rose sandstones) occurs on the western edge of the property. An ultramafic unit of green-brown serpentinite occurs between Relay Creek and the eastern edge of the property. Both units have been highly folded. A unit of quartz pebble conglomerate (multiple colors - fine matrix 0.3-0.5cm dia. with local pyrite and Iron staining) has been emplaced over, and subsequently scoured away by glaciation, the two aforementioned units. This has created a horizontal banding of alternating quartz pebble conglomerate and the respective underlying unit.

Within the central area of the property, oriented at 328o, is a less interrupted mass of the quartz pebble conglomerate unit. Dykes and dyke-like intrusions of dark purplish andesite intrude the western areas of the property. There is a major fault running along (parallel to) the Relay Creek valley at 328o.

Only two of the soil samples returned greater than 8ppb Au. Both samples (68ppb and 92 ppb Au) were collected from soil overlaying the central body of quartz pebble conglomerate. None of the other elements were anomalous in other economic elements. The two most anomalous rock samples (MW 037 & 040) returned values of 10ppb Au each.

Management is evaluating the results of this program to decide the best choices for further exploration of the property.

Other than the foregoing, we have not conducted any exploration on our property.

Risk Factors

1. Because our auditors have issued a going concern opinion and because our officers and directors will not loan any money to us, we may not be able to achieve our objectives and many have to suspend or cease operations.







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Our auditors have issued a going concern opinion.  This means that there is doubt that we can continue as an ongoing business for the next twelve months.  Because our officers and directors are unwilling to loan or advance any additional capital to us, we believe that we may have to suspend or cease operations if we do not find gold in paying quantities.

2.  We lack an operating history and have losses which we expect to continue into the future. If the losses continue we will have to suspend operations or cease operations.

We were incorporated in September 1999 and we have not started our proposed business operations or realized any revenues. We have no operating history upon which an evaluation of our future success or failure can be made. Our net loss since inception is $373,872. Our ability to achieve and maintain profitability and positive cash flow is dependent upon

*   our ability to locate a profitable mineral property  
*   our ability to generate revenues  
*   our ability to reduce exploration costs.

Based upon current plans, we expect to incur operating losses in future periods.  This will happen because there are expenses associated with the research and exploration of our mineral properties.  We cannot guarantee that we will be successful in generating revenues in the future.  Failure to generate revenues will cause us to go out of business.

3. We have no known ore reserves and we cannot guarantee we will find any gold or if we find gold that production will be profitable.

We have no known ore reserves.  We have not identified any gold on the property and we cannot guarantee we will ever find any gold.Even if we find that there is gold on our property, we cannot guarantee that we will be able to recover the gold.  Even if we recover gold, we cannot guarantee that we will make a profit.

4.   Weather interruptions in the province of British Columbia may affect and delay our proposed exploration operations.

While we plan to conduct our exploration year round, it is possible that snow or rain could  cause roads leading to our claims to be impassible.  When roads are impassible, we are unable to work and generate income.

5.   Because we are small and do not have much capital, we must limit our exploration and as a result may not find mineralized material.

Because we are small and do not have much capital, we must limit our exploration.  Because we may have to limit our exploration, we may not find mineralized material, even though our property may contain mineralized material.

6.   We may not have access to all of the supplies and materials we need to complete exploration which could cause us to delay or suspend operations.







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Competition and unforeseen limited sources of supplies in the industry could result in occasional spot shortages of supplies, such as dynamite, and certain equipment such as bulldozers and excavators that we might need to conduct exploration.  If we cannot find the products and equipment we need, we will have to suspend our exploration plans until we do find the products and equipment we need.

7.   The price of gold is depressed compared to past years.  This makes it harder to make a profit.  If we can't make a profit, we will have to cease operations until market conditions improve or cease operations altogether.

The price of an ounce of gold is $375.  In the past, the price of gold has been as high as $800 per ounce.  In order to maintain operations, we will have to sell our gold for more than it costs us to mine it.  The lower the price the more difficult it is to do this.  If we can't make a profit we will have cease operations until the price of gold increases, or cease operations all together.  Because the cost to mine gold has a fixed threshold level in a given mine, small declines in the international price of gold near the threshold level can cause strong declines in profitability.

8.   If we do not find mineralized material we will cease operations.

Our success depends on finding mineralized material.  If we don't find mineralized material or we cannot remove mineralized material, either because we do not have the money to do it or because it is not economically feasible to do it, we will cease operations and you will lose your investment.

9.   We do not have enough money to complete our exploration and as a result have to suspend our operations.

We do not have enough money to complete our exploration of our property.  We have not made any plans to raise additional money and there is no assurance that we would be able to raise additional money in the future. As a result we will have to suspend our operations on our claims.

10.   Because title to our property is held in the name of another person, if he transfers our property to someone other than us, we will cease operations.

Title to our property is not held in our name.  Title to our property is recorded in the name of Hugh Grenfal.  If Mr. Grenfal transfers our property to a third person, the third person will obtain good title and we will have nothing.  If that happens we will be harmed in that we will not own any property and we will have to cease operations.

11.   Because title to our property is in the name of Mr. Grenfal, a creditor of Mr. Grenfal could attach a lien on our property and have its sold.  If this happens, the creditor or a third party could take title to our property and we will cease operations.

Because title to our property is in the name of Mr. Grenfal, a creditor of Mr. Grenfal could attach a lien on our property and have its sold.  If that happens, the creditor or a third party buying the property at a judicial sale could take title to our property.  If that happens, we will own no property and will cease operations.







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12.   Because the SEC imposes additional sales practice requirements on brokers who deal in our shares which are penny stocks, some brokers may be unwilling to trade them.  This means that you may have difficulty in reselling your shares and may cause the price of the shares to decline.

Our shares qualify as penny stocks and are covered by Section 15(g) of the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell our securities in the aftermarket.  For sales of our securities, the broker/dealer must make a special suitability determination and receive from you a written agreement prior to making a sale to you.  Because of the imposition of the foregoing additional sales practices, it is possible that brokers will not want to make a market in our shares.  This could prevent you from reselling your shares and may cause the price of the shares to decline.

13.   Because Messrs Grenfal and Stetsenko own more than 50% of the outstanding shares, they are able to decide who will be directors and you will not be able to elect any directors.

Messrs Grenfal and Stetsenko own 5,000,000 shares and control us.  As a result, Messrs Grenfal and Stetsenko are able to elect all of our directors and control our operations.

14.   Messrs Grenfal and Stetsenko's control prevents you from causing a change in the course of our operations.

Because Messrs Grenfal and Stetsenko control us, your ability to cause a change in the course of our operations is eliminated.  As such, the value attributable to the right to vote is gone.This could result in a reduction in value to the shares you own because of the ineffective voting power.

15.   Our officers and directors will probably sell some of their shares if the market price of the stock goes above $0.10. This will cause the price of our common stock to fall which will reduce the value of your investment.

A total of 5,000,000 shares of stock were issued to our two officers and directors.  Post split, this is equal to 30,000,000.  They paid an average price of  $0.055 (post split, %0.011.)   They will likely sell a portion of their stock if the market price goes above $0.10.  If they do sell their stock into the market, the sales may cause the market price of the stock to drop.

ITEM 2.  DESCRIPTION OF PROPERTIES.

In September 1999, Hugh Grenfal our President and a member of the board of directors, acquired one mineral property containing three mining claims in British Columbia, Canada.  The claims are recorded in Mr. Grenfal's name for tax purposes, however, title to the claims has been conveyed to us by an unrecorded deed.  To date we have not performed any work on our property. The property is located 181 kilometers east of Vancouver, near Beaverdell on the West Kettle River.







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Our offices are located at 1040 West Georgia Street, Suite 1160, Vancouver, British Columbia, Canada V6E 4H1.  Our telephone number is (604) 605-0885. We lease our office space from Callinan Mines Ltd. on a month to month basis and our monthly rental is determined by usage. During the fiscal year ending June 30, 2003, we paid $911 for rent.

ITEM 3.   LEGAL PROCEEDINGS.

We are not a party to any pending litigation and none is contemplated or threatened.

ITEM 4.   SUBMISSION OR MATTERS TO A VOTE OF SECURITY HOLDERS.

There were no matters submitted to the shareholders during 2003.

PART II

ITEM 5.    MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS.

An extremely limited market exists for our securities and there is no assurance that a regular trading market will develop, or if developed, that it will be sustained.  Our shares were listed for trading on the Bulletin Board owned by the National Association of Securities Dealers, Inc. on September 25, 2002, under the symbol "ANAG."  As trading is thin and sporadic, a shareholder may therefore be unable to resell the securities referred to herein should he or she desire to do so.  Furthermore, it is unlikely that a lending institution will accept our securities as pledged collateral for loans unless a regular trading market develops.

We have no outstanding options or warrants, or other securities convertible into, common equity.  5,000,000 shares (pre-split) were issued to our officers, directors and others, and may only be resold in compliance with Rule 144 of the Securities Act of 1933.

At August 8th, 2003, there were 56 holders of record including shares held by brokerage clearing houses, depositories or otherwise in unregistered form.  The beneficial owners of such shares are not known to us.

Dividends

We have not declared any cash dividends, nor do we intend to do so. We are not subject to any legal restrictions respecting the payment of dividends, except that they may not be paid to render us insolvent.  Dividend policy will be based on our cash resources and needs and it is anticipated that all available cash will be needed for our operations in the foreseeable future.







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SEC Rule 15g

Our company's shares are covered by Section 15g of the Securities Act of 1933, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser's written agreement to the transaction prior to the sale. Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.

Section 15g also imposes additional sales practice requirements on broker/dealers who sell penny securities. These rules require a one page summary of certain essential items. The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important to in understanding of the function of the penny stock market, such as "bid" and "offer" quotes, a dealers "spread" and broker/dealer compensation; the broker/dealer compensation, the broker/dealers duties to its customers, including the disclosures required by any other penny stock disclosure rules; the customers rights and remedies in causes of fraud in penny stock transactions; and, the NASD's toll free telephone number and the central number of the North American Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Cautionary Statement Regarding Forward-looking Statements

Some discussions in this report may contain forward-looking statements that involve risks and uncertainties.  A number of important factors could cause our actual reports to differ materially from those expressed in any forward-looking statements made by us in this report.  Such factors include, those discussed in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," as well as those discussed elsewhere in this report.  Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events.

Financial Condition, Liquidity and Capital Resources

Since inception on September 7, 1999, we have been engaged in exploration and acquisition of mineral properties. Our company's principal capital resources have been acquired through issuance of common stock and from shareholder loans.

At June 30,2003, we had positive working capital deficit of $13,583 compared to working capital of $2,893 at June 30, 2002.  This change is primarily the result of professional fee incurred maintaining the corporate entity.







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At June 30, 2003, our company's had total assets of $4,502 consisting of mainly cash, mining claims and office equipment, which compares with our assets at June 30, 2002 of $8,274, similarly constituted of mostly cash.

At June 30, 2003, we had total liabilities increase to $15,356, up from $926 at June 30, 2002, primarily reflecting the legal and audit expenses.

Our company has had revenues from inception. Although there is insufficient capital to fully explore and develop mineral properties, the Company expects to survive and exploit its resources possible funding sources including sales of its securities and shareholder loans.  There are at present no such plans.  Our Company has no long-term debt.

We will not be conducting any product research or development. We do not expect to purchase or sell any significant equipment. We do not expect any significant changes in the number of our employees.

We have inadequate cash reserves to maintain offices and operations during the next twelve months ending June 30, 2004. We have insufficient cash to maintain operations and we will have to raise additional cash to remain in business. Even if management were to restrain spending to one-half of the 2003 rate, an aggressive restraint program, this would not be enough to ensure survival of the company in business. Our ability to carry on as a going concern will therefore depend on the ability of management to secure additional capital in the near future.

Results of Operations

Our Company posted losses of $18,202 for the year ending June 30, 2003. The principal components of the loss were professional expenses and general and administrative expense.

Operating expenses for the year ending June 30, 2003 were $18,202, down from $41,280 from the year ending June 30, 2002, mainly as a result of restraint in general and administrative costs and cutting discretionary items including mining exploration and investor relations.

Critical accounting policies

We have identified the policies below as critical to our business operations and the understanding of our results of operations. See also the notes consolidated Financial Statements.  Note that our preparation of this Annual Report on Form 10-KSB and the Quarterly Reports on Form 10-QSB requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting period. There can be no assurance that actual results will not differ from those estimates.







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(1)   Functional currency and treatment of foreign currency translation.  Due to the majority of our financial operations being based in the United States, the US Dollar is both the functional and the reporting currency, although our main asset (a mineral property) is in Canada. Books and records and bank accounts are maintained in US Dollars; any assets or items of value reckoned in Canadian Dollars are translated  into US dollars at the exchange rate in effect at the year end. Income and expense items are translated at the exchange rate prevailing when the transaction occurred. The resulting translation adjustments are recorded within other comprehensive income.

(2)   Research, development and exploration expenditure. All research development and exploration expenditure incurred has been generated internally and is written off to the income statement.

(3)   Capitalization of intangible fixed assets. Intangible assets (none at present) are amortized over the useful life of the asset, as determined by management, not to exceed the legal life.

Contractual commitments

We have no contractual commitments.

Recent accounting pronouncements

In April 2002, the Financial Accounting Standards Board issued Statements of Financial Accounting Standards No. 145, "Recession of FASB Statement No. 44, and 66, Amendment of FASB Statement No. 13, and Technical Corrections", which updates, clarifies and simplifies existing accounting pronouncements. FASB No. 4, which required all gains and losses from extinguishment of debt to be aggregated and, if material, classified as an extraordinary item, net of related tax effect was rescinded, as a result, FASB 64, which amended No. 4, was rescinded as it was no longer necessary. FASB 145 amended 13 to eliminate an inconsistency between the required accounting for the sale-leaseback transaction and the required accounting for certain lease modifications that have economic effects that are similar to sale-leaseback transactions. Management has not yet determined the effects of adopting this Statement on the financial position or results of operations, except for the need to reclassify debt extinguishments previously reported as extraordinary.

In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" ("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 is effective for exit or disposal activities that are initiated after December 31, 2002. Given that SFAS No. 146 was issued in June 2002 and is not yet effective, the impact on our financial position or results of operations from adopting SFAS No. 146 has not been determined, although given the nature of our business the impact is expected to be minuscule.







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ITEM 7.   FINANCIAL STATEMENTS.

TABLE OF CONTENTS

Ancona Mining Corporation
(An Exploration Stage Company)





|                                            | Index
|------------------------------------------- | -----
|                                           
|Independent Auditors' Report                | F-1  
|Balance Sheets                              | F-2  
|Statements of Operations                    | F-3  
|Statements of Cash Flows                    | F-4  
|Statement of Stockholders' Equity (Deficit) | F-5  
|Notes to the Financial Statements           | F-6  











-16-

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Independent Auditors' Report



To the Stockholders and Director 
Ancona Mining Corporation
(An Exploration Stage Company)

We have audited the accompanying balance sheet of Ancona Mining Corporation (a Nevada corporation) as of June 30, 2003, and the related statement of operations, cash flows and stockholders' deficit for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. The accompanying balance sheet of Ancona Mining Corporation as of June 30, 2002, and the related statement of operations, cash flows and stockholders' deficit accumulated for the period from January 21, 2000 (Date of Inception) to June 30, 2002 and the year ended June 30, 2002, was audited by other auditors in their report dated August 5, 2002. Those auditors expressed an unqualified opinion on those financial statements and included an explanatory paragraph describing the substantial doubt about the Company's ability to continue as a going concern.

We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the aforementioned financial statements referred to above present fairly, in all material respects, the financial position of Ancona Mining Corporation as of June 30, 2003, and the results of its  operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has not obtained profitable operations since inception and will need additional financing to sustain operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



/s/ "Manning Elliott"
CHARTERED ACCOUNTANTS
Vancouver, Canada
July 16, 2003





F-1

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Ancona Mining Corporation
(An Exploration Stage Company)
Balance Sheets
(expressed in U.S. dollars)



|                                                                                                                   | June 30,
2003
$                         |       | June 30,
2002
$
|------------------------------------------------------------------------------------------------------------------ | --------------------------------------- | ----- | ---------------
|ASSETS                                                                                                             |                                         |       |                
|                                                                                                                   |                                         |       |                
|Current Assets                                                                                                     |                                         |       |                
|                                                                                                                   |                                         |       |                
|                                                                                                                   | Cash                                    | 1,362 |                
|                                                                                                                   | Deposits                                | 411   |                
|                                                                                                                   |                                         |       |                
|Total Current Assets                                                                                               | 1,773                                   |       | 3,719          
|                                                                                                                   |                                         |       |                
|Property and Equipment (Note 4)                                                                                    | 1,417                                   |       | 1,911          
|                                                                                                                   |                                         |       |                
|Mineral Properties (Note 3)                                                                                        | 1,312                                   |       | 2,644          
|                                                                                                                   |                                         |       |                
|Total Assets                                                                                                       | 4,502                                   |       | 8,274          
|                                                                                                                   |                                         |       |                
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                     |                                         |       |                
|                                                                                                                   |                                         |       |                
|Current Liabilities                                                                                                |                                         |       |                
|                                                                                                                   |                                         |       |                
|                                                                                                                   | Accounts payable                        | 2,711 |                
|                                                                                                                   | Accrued liabilities                     | 8,110 |                
|                                                                                                                   | Advances from related party (Note 5(b)) | 4,535 |                
|                                                                                                                   |                                         |       |                
|Total Liabilities                                                                                                  | 15,356                                  |       | 926            
|                                                                                                                   |                                         |       |                
|Contingency (Note 1)                                                                                               |                                         |       |                
|                                                                                                                   |                                         |       |                
|Stockholders' Equity (Deficit)                                                                                     |                                         |       |                
|                                                                                                                   |                                         |       |                
|Common Stock, 100,000,000 shares authorized with a par value of $0.00001; 30,311,000 shares issued and outstanding | 303                                     |       | 303            
|                                                                                                                   |                                         |       |                
|Additional Paid-in Capital                                                                                         | 380,917                                 |       | 380,917        
|                                                                                                                   | 381,220                                 |       | 381,220        
|                                                                                                                   |                                         |       |                
|Deficit Accumulated During the Exploration Stage                                                                   | (392,074)                               |       | (373,872)      
|                                                                                                                   |                                         |       |                
|Total Stockholders' Equity (Deficit)                                                                               | (10,854)                                |       | 7,348          
|                                                                                                                   |                                         |       |                
|Total Liabilities and Stockholders' Equity                                                                         | 4,502                                   |       | 8,274          





(The Accompanying Notes are an Integral Part of these Financial Statements)

F-2

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Ancona Mining Corporation
(An Exploration Stage Company)
Statements of Operations
(expressed in U.S. dollars)



|                                    | Accumulated from                    |         |            |        |           
|----------------------------------- | ----------------------------------- | ------- | ---------- | ------ | ----------
|                                    | September 7, 1999                   |         |            |        |           
|                                    | (Date of Inception)                 |         | Year Ended |        |           
|                                    | to June 30,                         |         | June 30,   |        |           
|                                    | 2003
$                              |         | 2003
$     |        | 2002
$    
|                                    |                                     |         |            |        |           
|Revenue                             | -                                   |         | -          |        | -         
|                                    |                                     |         |            |        |           
|Expenses                            |                                     |         |            |        |           
|                                    |                                     |         |            |        |           
|                                    | Consulting                          | 271,536 |            | -      |           
|                                    | Depreciation                        | 1,048   |            | 493    |           
|                                    | General and administration          | 21,530  |            | 591    |           
|                                    | Investor relations                  | 9,346   |            | -      |           
|                                    | Mining exploration                  | 4,226   |            | -      |           
|                                    | Professional fees                   | 72,112  |            | 13,720 |           
|                                    | Rent (Note 5(a))                    | 6,839   |            | 911    |           
|                                    | Transfer agent and filing fees      | 4,105   |            | 1,155  |           
|                                    | Write-off of mineral claim (Note 3) | 1,332   |            | 1,332  |           
|                                    |                                     |         |            |        |           
|                                    | 392,074                             |         | 18,202     |        | 41,280    
|                                    |                                     |         |            |        |           
|Net Loss for the Period             | (392,074)                           |         | (18,202)   |        | (41,280)  
|                                    |                                     |         |            |        |           
|Net Loss Per Share - Basic          |                                     |         | -          |        | -         
|                                    |                                     |         |            |        |           
|Weighted Average Shares Outstanding |                                     |         | 30,311,000 |        | 30,311,000

(Diluted loss per share has not been presented as the result is anti-dilutive)









(The Accompanying Notes are an Integral Part of these Financial Statements)

F-3

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Ancona Mining Corporation
(An Exploration Stage Company)
Statements of Cash Flows
(expressed in U.S. dollars)





|                                                                            | Year Ended
June 30,                        | For the Period
from September 7, 1999 (Date of Inception) to June 30,
|--------------------------------------------------------------------------- | ------------------------------------------ | ---------------------------------------------------------------------
|                                                                            | 2003
$                                     | 2002
$                                                               
|                                                                            |                                            |                                                                      
|Cash Flows From Operating Activities                                        |                                            |                                                                      
|                                                                            |                                            |                                                                      
|Net loss                                                                    | (18,202)                                   | (41,280)                                                             
|                                                                            |                                            |                                                                      
|Adjustments to reconcile net loss to net cash used by operating activities: |                                            |                                                                      
|                                                                            | Depreciation                               | 493                                                                  
|                                                                            | Payment of expenses from issuance of stock | -                                                                    
|                                                                            | Write-off of mineral claim                 | 1,332                                                                
|Change in operating assets and liabilities                                  |                                            |                                                                      
|                                                                            | Deposits                                   | -                                                                    
|                                                                            | Accounts payable and accrued liabilities   | 9,996                                                                
|                                                                            | Due to related parties                     | 4,435                                                                
|Net Cash (Used In) Operating Activities                                     | (1,946)                                    | (72,252)                                                             
|Cash Flows From Investing Activities                                        |                                            |                                                                      
|                                                                            | Purchase of property and equipment         | -                                                                    
|Cash Flows From Financing Activities                                        |                                            |                                                                      
|                                                                            | Proceeds from related party advances       | -                                                                    
|                                                                            | Proceeds from sale of common stock         | -                                                                    
|                                                                            |                                            |                                                                      
|Net Cash Provided By Financing Activities                                   | -                                          | -                                                                    
|Decrease in Cash                                                            | (1,946)                                    | (72,252)                                                             
|Cash - Beginning of Period                                                  | 3,308                                      | 75,560                                                               
|Cash - End of Period                                                        | 1,362                                      | 3,308                                                                
|Non-Cash Financing Activities                                               |                                            |                                                                      
|                                                                            | Stock issued in exchange for expenses      | -                                                                    
|                                                                            | Stock issued in payment of advances        | -                                                                    
|                                                                            | Stock issued in payment of mining claims   | -                                                                    
|Supplemental Disclosures                                                    |                                            |                                                                      
|                                                                            | Interest paid                              | -                                                                    
|                                                                            | Income taxes paid                          | -                                                                    





(The Accompanying Notes are an Integral Part of these Financial Statements)

F-4

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Ancona Mining Corporation
(An Exploration Stage Company)
Statement of Stockholders' Equity (Deficit)
(expressed in U.S. dollars)



|                                                                           | # of
Shares | Amount
$ | Capital
$ | Stage
$   | (Deficit)
$
|-------------------------------------------------------------------------- | ----------- | -------- | --------- | --------- | -----------
|                                                                           |             |          |           |           |            
|Balance - September 7, 1999 (Date of Inception)                            | -           | -        | -         | -         | -          
|                                                                           |             |          |           |           |            
|Issuance of stock for services and payment of advances for $.055 per share | 25,000,000  | 250      | 274,750   | -         | 275,000    
|                                                                           |             |          |           |           |            
|Net loss for period                                                        | -           | -        | -         | (294,522) | (294,522)  
|                                                                           |             |          |           |           |            
|Balance - June 30, 2000                                                    | 25,000,000  | 250      | 274,750   | (294,522) | (19,522)   
|                                                                           |             |          |           |           |            
|Issuance of common stock at $0.10 per share                                | 5,311,000   | 53       | 106,167   | -         | 106,220    
|                                                                           |             |          |           |           |            
|Net loss for the year                                                      | -           | -        | -         | (38,069)  | (38,069)   
|                                                                           |             |          |           |           |            
|Balance - June 30, 2001                                                    | 30,311,000  | 303      | 380,917   | (332,591) | 48,629     
|                                                                           |             |          |           |           |            
|Net loss for the year                                                      | -           | -        | -         | (41,281)  | (41,281)   
|                                                                           |             |          |           |           |            
|Balance - June 30, 2002                                                    | 30,311,000  | 303      | 380,917   | (373,872) | 7,348      
|                                                                           |             |          |           |           |            
|Net loss for the year                                                      | -           | -        | -         | (18,202)  | (18,202)   
|                                                                           |             |          |           |           |            
|Balance - June 30, 2003                                                    | 30,311,000  | 303      | 380,917   | (392,074) | (10,854)   







(The Accompanying Notes are an Integral Part of these Financial Statements)

F-5

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Ancona Mining Corporation
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)

1. Exploration Stage Company
2. Summary of Significant Accounting Principles



F-6

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Ancona Mining Corporation
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)

1. Summary of Significant Accounting Principles (continued)

f)   Property and Equipment
Property and equipment is stated at cost. Amortization is computed using the straight-line method over five years.

g)   Foreign Currency Transactions/Balances
The Company's functional currency is the United States dollar. Occasional transactions occur in Canadian currency, and management has adopted SFAS No. 52, "Foreign Currency Translation". Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at rates of exchange in effect at the balance sheet date. Gains or losses are included in income for the years, except gains or losses relating to long-term debt, which are deferred and amortized over the remaining term of the debt. Non-monetary assets, liabilities and items recorded in income arising from transactions denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction.

h)   Exploration and Development Costs
The Company has been in the exploration stage since its formation in September 1999 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition, exploration and development of mining properties. Mineral exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. Payments related to the acquisition of the land and mineral rights are capitalized as incurred.

i)   Basic and Diluted Net Income (Loss) Per Share
The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share" (SFAS 128). SFAS 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

j)   Financial Instruments
The carrying value of cash, accounts payable, accrued liabilities, and advances from related party approximate fair value due to the relatively short maturity of these instruments.

k)   Concentration of Risk
The Company maintains its cash accounts in primarily one commercial bank in Vancouver, British Columbia, Canada. The Company's cash account is an uninsured business checking account maintained in U.S. dollars, which totalled $1,362 on June 30, 2003. At June 30, 2003 the Company has not engaged in any transactions that would be considered derivative instruments on hedging activities.

l)   Comprehensive Loss
SFAS No. 130, "Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2003 and 2002, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.



F-7

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Ancona Mining Corporation
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)

1. Summary of Significant Accounting Principles (continued)





F-8

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Ancona Mining Corporation
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)

1. Mineral Properties
2. Property and Equipment
3. Related Party Transactions/Balances
4. Common Stock
5. Income Taxes





F-9

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Ancona Mining Corporation
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)

1. Income Taxes (continued)











F-10

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ITEM 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

On October 7, 2002, the accounting firm of Williams & Webster, P.S. was dismissed by our Board of Directors as our independent auditors. During the two most recent fiscal years and subsequent interim period, there were no disagreements on matters of accounting principles and practices, financial disclosure, or auditing scope of procedure between us and Williams & Webster. Williams & Webster, P.S. were dismissed because we determined that it was in the Company's best interest to have its auditor located in Vancouver, British Columbia where our corporate headquarters are located.

The report of Williams & Webster, P.S. on our financial statements as of and for the years ended June 30, 2002 and 2001 did not contain an adverse, qualified or disclaimer of opinion. However, the report did contain an explanatory paragraph wherein Williams & Webster expressed substantial doubt about our ability to continue as a going concern.

We requested Williams & Webster to furnish us with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the statements made by us in response to  Item 4 of our Form 8-K filed with the SEC, and, if not, stating the respects in which Williams & Webster did not agree. The Registrant delivered a copy of its Form 8-K  to Williams & Webster on October 18, 2002, via facsimile. On October 29, 2002, Williams & Webster replied and letter agreed with the statements contained therein was filed as Exhibit 16.1 to our Form 8-K/A-1 filed with the SEC on November 5, 2002.

At our board meeting on October 7, 2002, our Board of Directors engaged Manning Elliott, Chartered Accountants, 11th Floor, 1050 West Pender Street, Vancouver, British Columbia, Canada V6E 3S7, as our independent auditor for our fiscal year ending June 30, 2003. Manning Elliott accepted such appointment on October 11, 2002.  Prior to their appointment, we did not consult with Manning Elliott on any matters related to accounting or the type of opinion they may issue or disagreements between the accountants.

ITEM 8A.  CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Securities Exchange Act of 1934 reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.  Within 90 days prior to the date of this report, the Company's management carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon the foregoing, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective in connection with the filing of this Annual Report on Form 10-KSB for the year ended June 30, 2003.

There were no significant changes in the Company's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.





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PART III.

ITEM 9.   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

The name, age and position held by each of the directors and officers of the Company are as follows:



|Name              | Age | Position(s)                                                                                                  
|----------------- | --- | -------------------------------------------------------------------------------------------------------------
|Hugh Grenfal, Jr. | 33  | President, Chief Executive Officer, Treasurer, Chief Financial officer and a member of the board of directors
|Sergei Stetsenko  | 32  | Secretary and a member of the board of directors                                                             

All directors have a term of office expiring at the next annual general meeting of the Company, unless re-elected or earlier vacated in accordance with the Bylaws of the Company.  All officers have a term of office lasting until their removal or replacement by the board of directors.

Hugh Grenfal, Jr. has been our President, Chief Executive Officer, Treasurer, Chief Financial Officer and a member of our board of directors since inception on September 7, 1999.From January 1991 to June 1996, Mr. Grenfal was President of Booker Gold Explorations Ltd., a mining and exploration corporation located in Vancouver, British Columbia.  From October 1996 to December 2001, Mr. Grenfal was a Director of Callinan Mines Limited, a mining and exploration corporation located in Vancouver, British Columbia with revenue producing copper and zinc properties located in Manitoba, Canada.

From June 20, 1999 to May 11, 2000, Mr. Grenfal was president of Paxton Mining Corporation located in Vancouver, British Columbia.  Paxton Mining Corporation was a mining company.  Since January 2000, Mr. Grenfal has been president of Aberdene Mines Limited located in Vancouver, British Columbia.  Aberdene Mines is a mining exploration company.  Since September 1999, Mr. Grenfal has been President of Camden Mines Limited located in Vancouver, British Columbia.  Camden Mines is a mining exploration company.  From September 1999 to February 2002, Mr. Grenfal was president of Palal Mining Corporation located in Vancouver, British Columbia.  Palal Mining was an exploration company that has since changed its line of business to  hydrocarbon exploration and development and been renamed TexEn Oil and Gas Inc.  From July 2000 to September 2001, Mr. Grenfal was president of Raglan Mines Limited located in Vancouver, British Columbia.  Raglan Mines Limited is a mining exploration company.  Mr. Grenfal is currently not a full time employee with another entity.

Sergei Stetsenko has been our secretary and a member of the board of directors since inception. From December 1994 to June 1996, Mr. Stetsenko was the operations manager of Booker Gold Explorations Ltd.  His responsibilities included overseeing and implementation of exploration programs and a member of the Hearne Hill copper deposit discovery team.





-28-

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From October 1996 to the present, Mr. Stetsenko was the operations manager of exploration for Callinan Mines Limited.From September 1999 until February 2002, Mr. Stetsenko was secretary of Palal Mining Corporation located in Vancouver, British Columbia.  Palal Mining was an exploration company that has since changed its line of business to  hydrocarbon  exploration  and development and been renamed TexEn Oil and Gas Inc.  Since September 1999, Mr. Stetsenko has been secretary of Camden Mining Corporation located in Vancouver, British Columbia.  Camden Mining Corporation is an exploration company.Mr. Stetsenko is currently not a full-time employee with another entity.

Involvement in Certain Legal Proceedings

We have no legal proceedings during the past five years, no present or former director, executive officer or person nominated to become a director or an executive officer has been the subject matter of any legal proceedings, including bankruptcy, criminal proceedings, or civil proceedings.  Further, no legal proceedings are known to be contemplated by governmental authorities against any director, executive officer and person nominated to become a director.

Compliance with Section 16 (a) of the Exchange Act

Based solely upon a review of Forms 3 and 4 and amendments thereto furnished to us pursuant to Rule 16a-3(e) under the Securities Exchange Act of 1934 during our most recent fiscal year and Forms 5 and amendments thereto furnished to us with respect to our most recent fiscal year, all officers, directors and owners of 10% or more of our outstanding shares have filed all Forms 3, 4 an 5 required by Section 16(a) of the Securities Exchange Act of 1934.

Audit Committee and Charter

We have an audit committee and audit committee charter.  Our audit committee is comprised of all of our officers and directors.  None of directors are deemed independent.  All directors also hold positions as our officers.  A copy of our audit committee charter is filed as an exhibit to this report.  Our audit committee is responsible for: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; (3) establishing procedures for the confidential, anonymous submission by our employees of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and, (5) funding for the outside auditory and any outside advisors engagement by the audit committee. A copy of our audit committee charter is filed as an exhibit to this report.

Audit Committee Financial Expert

We have no financial expert.  We believe the cost related to retaining a financial expert at this time is prohibitive.  Further, because of our limited operations, we believe the services of a financial expert are not warranted.





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Code of Ethics

We have adopted a corporate code of ethics.  A copy of the code of ethics is filed as an exhibit to this report.  We believe our code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code.

Disclosure Committee and Charter

We have a disclosure committee and disclosure committee charter.  Our disclosure committee is comprise of all of our officers and directors.  The purpose of the committee is to provide assistance to the Chief Executive Officer and the Chief Financial Officer in fulfulling their responsibilities regarding the identification and disclosure of material information about us and the accuracy, completeness and timeliness of our financial reports.  A copy of our disclosure committee charter is filed with this report.

ITEM 10.  EXECUTIVE COMPENSATION.

The following table sets forth information with respect to compensation paid by the Company to the Chief Executive Officer and the other highest paid executive officers (the "Named Executive Officer") during the three most recent fiscal years.

Summary Compensation Table



|                                                   |                |                     | Long Term Compensation |                               
|-------------------------------------------------- | -------------- | ------------------- | ---------------------- | ------------------------------
|                                                   |                | Annual Compensation | Awards                 | Payouts                       
|(a)                                                | (b)            | (c)                 | (d)                    | (e)                           
|Name and Principal Position [1]                    | Year           | Salary ($)          | Bonus ($)              | Other Annual Compen-sation ($)
|                                                   |                |                     |                        |                               
|Hugh Grenfal, Jr.  
President & CEO
CFO & Director | 2003
2002
2001 | 0
0
0               | 0
0
0                  | 0
0
0                         
|                                                   |                |                     |                        |                               
|Sergei Stetsenko
Secretary & 
Director             | 2003
2002
2001 | 0
0
0               | 0
0
0                  | 0
0
0                         

[1]   All compensation received by the officers and directors has been disclosed.

There are no stock option, retirement, pension, or profit sharing plans for the benefit of our officers and directors.

Option/SAR Grants

No individual grants of stock options, whether or not in tandem with stock appreciation rights ("SARs") and freestanding SARs have been made to any executive officer or any director since our inception, accordingly, no stock options have been exercised by any of the officers or directors in fiscal 2002.







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Long-Term Incentive Plan Awards

We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance to occur over a period longer than one fiscal year, whether such performance is measured by reference to our financial performance, our stock price, or any other measure.

Compensation of Directors

The directors did not receive any other compensation for serving as members of the board of directors. The Board has not implemented a plan to award options. There are no contractual arrangements with any member of the board of directors.

We do not expect to pay any salaries to any of our officers until such time as we generate sufficient revenues to do so. We do not anticipate paying any salaries to our officers until fiscal 2003, at the earliest. We do not intend to pay any additional compensation to our directors.  As of the date hereof, we have not entered into employment contracts with any of our officers and we do not intend to enter into any employment contracts until such time as it profitable to do so.

Indemnification

Pursuant to the articles of incorporation and bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. In certain cases, we may advance expenses incurred in defending any such proceeding. To the extent that the officer or director is successful on the merits in any such proceeding as to which such person is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the state of Nevada.

Regarding indemnification for liabilities arising under the Securities Act of 1933 which may be permitted to directors or officers pursuant to the foregoing provisions, we are informed that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy, as expressed in the Act and is, therefore unenforceable.

ITEM 11.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND  MANAGEMENT.

Security Ownership of Certain Beneficial Owners

The following table sets forth, as of September 23, 2002, the beneficial shareholdings of persons or entities holding five percent or more of our common stock, each director individually, each named executive officer and all directors and officers of our company as a group. Each person has sole voting and investment power with respect to the shares of common stock shown, and all ownership is of record and beneficial.







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|Name and Address
of Beneficial Owner             | Amount and
Nature of
Beneficial Owner | Position | Percent of Class                                                                                             
|------------------------------------------------ | ------------------------------------- | -------- | -------------------------------------------------------------------------------------------------------------
|Hugh Grenfal, Jr.                                | 15,000,000                            |          | President, Chief Executive Officer, Treasurer, Chief Financial Officer and a member of the Board of Directors
|Sergei Stetsenko                                 | 15,000,000                            |          | Secretary and a member of the Board of Directors                                                             
|All officer and Directors as a Group (2 Persons) | 30,000,000                            |          |                                                                                                              

[1]   The persons named above are our parents and promoters within the meaning of such terms under the Securities Act of 1933 by virtue of their direct and indirect stock holdings.

Changes in Control

To the knowledge of management, there are no present arrangements or pledges of securities of our company which may result in a change in control of our company.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

In September 1999, we issued a total of 5,000,000 pre-split shares of restricted common stock to Hugh Grenfal and Sergei Stetsenko, officers and directors of our company.  This was accounted for as a compensation expense of $271,536 and advances and reimbursement expenses of $3,464.

ITEM 13.    EXHIBITS AND REPORTS ON FORM 8-K.

Reports on Form 8-K

No Form 8-Ks have been filed since inception.

Exhibits

The following Exhibits are incorporated herein by reference from the Registrant's Form SB-2 Registration Statement filed with the Securities and Exchange Commission, SEC file #333-94835 on January 18, 2001. Such exhibits are incorporated herein by reference pursuant to Rule 12b-32:







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|Exhibit No.                                     | Document Description                                                                                                                                                                                                     
|----------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                |                                                                                                                                                                                                                          
|3.1 
3.2
4.1
10.1
10.2
10.3
10.4
10.5
10.6
99.1 | Articles of Incorporation.  
Bylaws.  
Specimen Stock Certificate.
Marmot Mining Claim. 
Wombat Mining Claim. 
Bill of Sale. 
Amax Mining Claim.
Statement of Trustee. 
Unrecorded Warranty Deed 
Subscription Agreement.

The following exhibits are filed with this report:



|14.1 |  | Code of Ethics                                                                                                                                                                                 
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 |  | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended.
|32.1 |  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief Financial Officer).                  
|99.1 |  | Audit Committee Charter                                                                                                                                                                        
|99.2 |  | Disclosure Committee Charter                                                                                                                                                                   

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

(1) Audit Fees

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for our audit of annual financial statements and review of financial statements included in our Form 10-QSBs or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years was:

2003 - $6,540.50 Williams & Webster, P.S.
2002 - $7,567.50 Williams & Webster, P.S.

2003 - $3,000.00 Manning Elliott
2002 - $-0- Manning Elliott







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(2) Audit-Related Fees

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountants that are reasonably related to the performance of the audit or review of our financial statements and are not reported in the preceding paragraph:

2003 - $nil - Williams & Webster, P.S.
2002 - $nil - Williams & Webster, P.S.

2003 - $nil - Manning Elliott
2002 - $nil - Manning Elliott

(3) Tax Fees

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning was:

2003 - $nil - Williams & Webster, P.S.
2002 - $nil - Williams & Webster, P.S.

2003 - $nil - Manning Elliott
2002 - $nil - Manning Elliott

(4) All Other Fees

The aggregate fees billed in each of the last tow fiscal yeas for the products and services provided by the principal accountant, other than the services reported in paragraphs (1), (2), and (3) was:

2003 - $nil - Williams & Webster, P.S.
2002 - $nil - Williams & Webster, P.S.

2003 - $nil - Manning Elliott
2002 - $nil - Manning Elliott

(5) Our audit committee's pre-approval policies and procedures described in paragraph (c)(7)(i) of Rule 2-01 of Regulation S-X were that the audit committee pre-approve all accounting related activities prior to the performance of any services by any accountant or auditor.

(6) The percentage of hours expended on the principal accountant's engagement to audit our financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full time, permanent employees was 0%.







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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 5th day of September, 2003.



| | ANCONA MINING CORPORATION
(Registrant)
| | --------------------------------------
| | BY:                                   

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities.



|Signatures                              | Title                                                                                                                 | Date     
|--------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | ---------
|/s/ Hugh Grenfal, Jr.
Hugh Grenfal, Jr. | President, Principal Executive Officer, Treasurer, Principal Financial Officer and a member of the board of directors | 09/5/2003
|/s/ Sergei Stetsenko
Sergei Stetsenko   | Secretary and a member of the board of directors                                                                      | 09/5/2003













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