MTLI Metaline Contact Mines Co (PK)

Metaline Contact Mines (OTCBB:MTLI) is pleased to announce the receipt of the first production royalties generated from underground operations at its historic Golden Chest Mine in nearly 70-years. The production royalty was paid by New Jersey Mining Company (OTCBB:NJMC) from the sale of sulfide concentrates produced from development ore mined on the Katie-Dora Vein during New Jersey's exploration ramp project at the Golden Chest Mine in 2004. The concentrates were shipped and sold to Barrick Goldstrike Mines Inc. in Nevada, a subsidiary of Barrick Gold Corp. (NYSE:ABX), pursuant to a formal purchase order from Barrick. Concentrate-grades of 3.04 ounces per ton gold were relatively low due to the exploratory nature of the project, but are expected to improve once on-going commercial mining operations start next week. Additional royalty payments are expected later this quarter from the sale of higher-grade material containing 30% gold recovered from the cleanout of New Jersey's ball mill. Final royalty revenue figures from the ramp development ore will be reported in the Company's second quarter 10-SQB report. The Company also announced that it received its quarterly royalty payment from a U.S. subsidiary of Teck Cominco Ltd. (TSE:TEK-SVB), Teck Cominco American, on the Company's Pend Oreille/Metaline Zinc Mines in Pend Oreille County, Washington. Metaline Contact Mines owns and develops royalty interests in precious and base metal mineral properties of unusual merit, including its Golden Chest Mine (gold) and Pend Oreille/Metaline Zinc Mines (zinc & lead). This release contains certain "forward-looking" statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company's periodic filings with the Securities and Exchange Commission including its annual report on Form 10-KSB for the year ending December 31, 2004. Further information about Metaline Contact Mines can be reviewed on the website of the U.S. Securities and Exchange Commission at www.sec.gov or the Company's website at www.metalinecontactmines.com.