Metalline's Sierra Mojada Project Status Report.

Business Editors

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--May 5, 2004

Metalline Mining Company (OTCBB:MMGG) re-assumed operator control of the Sierra Mojada Property on November 15, 2003 as a result of the termination of the Industrias Penoles earn-in agreement.

Percussion

drilling and channel sampling has continued in the San Salvador, Encantada and Fronteriza Mines with 3,096 meters of samples collected and sent for analysis. In addition, underground diamond drilling has been commissioned in the San Salvador and Encantada mines, initially with one drill which has completed 1388 meters. Two additional drills have been commissioned in the last two weeks and one more drill will be added as soon as it is mobilized to Sierra Mojada from a previous job.

Penoles collected, but did not analyze, about 1000 meters of channel and percussion drill samples, these samples have been sent for analysis. Results for 2,189 samples have been returned to date. Analytical results continue to be in the same range as previous results, with assays ranging from less than 1% to plus 40%, with the average grade of all samples, including those of less than ore grade - all samples, ranging between 9% and 11%. The average grade varies dependent on the results of the continuing increase of sample data collected.

Metalline has commissioned an independent engineering company to do a block model evaluation of the data collected to date in order to evaluate and classify the data as to its reserve status. Metalline's objective is to collect data sufficient to prove the oxide zinc mineralization qualifies for a proven, mineable, reserve status and to complete a feasibility study on the project as soon as practical to do so.

Metalline recently completed a private placement of US$8.3 million as announced in its news release dated April 7, 2004. This funding is sufficient to complete the reserve definition and is probably sufficient to complete the feasibility study.

Metalline's President recently returned from a trip to Johannesburg, South Africa to meet with GTI, Green Team Consultants International, and make arrangements for GTI to conduct the feasibility study on Sierra Mojada. GTI has agreed to perform the feasibility work for Metalline contingent on Metalline defining a tonnage and grade sufficient to support the study.

GTI is the firm that conducted the feasibility studies for Reunion Ltd. and Anglo Base Metals and supervised the construction and initiated operation of the Skorpion Mine and solvent extraction plant. The Skorpion Mine is located in Namibia, Africa, is operated by Skorpion Zinc an Anglo Base Metals Company and is the first, and only, zinc solvent extraction electrowinning plant and mine in the world.

During the Johannesburg trip a return visit to the Skorpion Mine was taken by the President, who also visited the project in July of 2002. Skorpion Zinc is ramping up to full production of 150,000 metric tons per year and at present is operating at plus 80% of full production. The zinc solvent extraction process is highly successful producing SHG zinc of exceptional quality that receives a premium and its own brand name on the London Metals Exchange (LME).

The success of the zinc solvent extraction process at Skorpion proves that the process works on a production scale for the mineralogy of the Skorpion oxide zinc ore, a mixture of the minerals hemimorphite, smithsonite and sauconite, zinc silicates and carbonates. The same minerals are present in the oxide zinc mantos at Sierra Mojada. Consequently, the Skorpion success adds confidence and credibility that the process will work for the same minerals at Sierra Mojada.