MADISON ENTERPRISES
QUARTERLY REPORT

OCTOBER 31, 1998
[Unaudited]

SCHEDULE B
CONSOLIDATED FINANCIAL INFORMATION

Madison Enterprises
Summary balance sheet as October 31, 1998

DEFERRED RESOURCE PROPERTY EXPENDITURES BREAKDOWN
for the year ended October 31, 1998

	Belencillo, Panama	Mt. Kare, Papua New Guinea	TOTALS
Balance October 31/97	$2,265,125	$12,792,986	$15,058,111
Acquisition Costs	-	446,969	446,969
Assays	-	382,194	382,194
Camp	2,897	295,022	297,919
Camp Mgmt.	-	105,780	105,780
Contractors
Camp-Port Moresby	-	143,383	143,383
Communications	-	114,243	114,243
Community Relations	-	335,442	335,442
Compensation Payment	-	57,153	57,153
Computer/Drafting	-	226,995	226,995
Consulting-Geology	-	475,974	475,974
Consulting-Geophysics	-	2,765	2,765
Drilling	-	1,573,656	1,573,656
EL 1185	-	17,472	17,472
Evaluation - Alluvial	-	32,094	32,094
Res.
Food Supplies/Catering	-	285,265	285,265
Fuel Supplies	-	221,164	221,164
Genealogy Study/Land	-	30,541	30,541
Grp.
Geology Supplies/Equip.	-	18,088	18,088
Helicopter	-	1,227,673	1,227,673
Insurance	-	45,452	45,452
Land & Legal	-	125,616	125,616
Landowner Company	-	182,740	182,740
Lawyer fees	-	143,796	143,796
License fees	-	9,520	9,520
Local Labour-Wages	-	618,043	618,043
Medical	-	152,547	152,547
On Site PR	-	51,052	51,052
Ore Reserves	-	67,084	67,084
Report/Map	-	9,682	9,682
Security	-	91,740	91,740
Surveying	-	757	757
Transport & Travel	-	242,772	242,772
TOTALS	$2,268,022	$20,525,660	$22,793,682

BREAKDOWN OF LEGAL EXPENSES
for the year ended October 31, 1998

General and Corporate	$ 62,216
US Registration	47
	$ 62,263

BREAKDOWN OF PUBLIC RELATIONS & TRAVEL
for the year ended October 31, 1998

Printing & Mailing	$ 1,244,013
Print & Broadcast Media	127,944
Expenses	24,775
Travel	117,956
Investor Relations Consultants	148,543
Investor Responses	66,778
Fax Charges	20,136
Internet	37,592
Investment Conferences	17,856
	$ 1,805,593

EXPENDITURES TO NON-ARMS LENGTH PARTIES
for the year ended October 31, 1998

Total

$ 244,341

SECURITIES ISSUED DURING QUARTER ENDED OCTOBER 31, 1998

Date of Issue	Type of Security	Type of Issue	Number of Shares	Price	Total Proceeds	Type of Consideration	Commision
No securities were issued during the quarter ended October 31, 1998

OPTIONS GRANTED DURING QUARTER OCTOBER 31, 1998

Date Granted	Number	Type	Name	Exercise Price	Expiry Date
Oct. 21, 1998	125,000	Director	J. Douglas Brown	$1.90	Oct. 21, 2003
Oct. 21, 1998	25,000	Director	Dr. Abdullah Basodan	$1.90	Oct. 21, 2003
Oct. 21, 1998	25,000	Director	Donald Kohls	$1.90	Oct. 21, 2003
Oct. 21, 1998	25,000	Director	Catherine McLeod-Seltzer	$1.90	Oct. 21, 2003
Oct. 21, 1998	25,000	Director	Robert Sibthorpe	$1.90	Oct. 21, 2003
Oct. 21, 1998	25,000	Director	James G. Stewart	$1.90	Oct. 21, 2003
Oct. 21, 1998	50,000	Director	Daniel Matthews	$1.90	Oct. 21, 2003
Oct. 21, 1998	50,000	Director	Chet Idziszek	$1.90	Oct. 21, 2003
Oct. 21, 1998	274,000	Director	Nell Dragovan	$1.90	Oct. 21, 2003
Oct. 21, 1998	35,000	Employee	David Laudrum	$1.90	Oct. 21, 2003
Oct. 21, 1998	20,000	Employee	Emil Hoerler	$1.90	Oct. 21, 2003
Oct. 21, 1995	25,000	Employee	Arlene Laudrum	$1.90	Oct. 21, 2003
Oct. 21, 1998	70,000	Employee	Naomi Corrigan	$1.90	Oct. 21, 2003
Oct. 21, 1998	100,000	Employee	Jeff Cocks	$1.90	Oct. 21, 2003
Oct. 21, 1998	50,000	Employee	Ray Matthews	$1.90	Oct. 21, 2003
Oct. 21, 1998	50,000	Employee	David Scott	$1.90	Oct. 21, 2003
Oct. 21, 1998	5,000	Employee	Shannon Skelly	$1.90	Oct. 21, 2003
Oct. 21, 1998	5,000	Employee	Elvira Valenzuela	$1.90	Oct. 21, 2003
Oct. 21, 1998	5,000	Employee	Sherre Lapointe	$1.90	Oct. 21, 2003
Oct. 21, 1998	5,000	Employee	Margaret Smith	$1.90	Oct. 21, 2003
Oct. 21, 1998	3,000	Employee	Roswitha Davidson	$1.90	Oct. 21, 2003
Oct. 31, 1998	3,000	Employee	Elizabeth Anderson	$1.90	Oct. 21, 2003

AUTHORIZED AND ISSUED SHARE CAPITAL AS AT OCTOBER 31, 1998

			Issued
Class	Par Value	Authorized	Number	Amount
Common	N.P.V.	100,000,000	22,962,569	$37,483,699

AUTHORIZED AND ISSUED SHARE CAPITAL AS AT OCTOBER 31, 1998

			Issued
Class	Par Value	Authorized	Number	Amount
Common	N.P.V.	100,000,000	22,962,569	$37,483,699

OPTIONS AND WARRENTS OUTSTANDING AS AT OCTOBER 31, 1998

Security	Number or Amount	Exercise or convertible price	Expiry Date
Options	186,601	$2.00	July 23, 2001
Options	377,500	$2.00	August 23, 2001
Options	445,000	$2.00	January 20, 2002
Options	100,000	$2.00	April 2, 2002
Options	40,000	$2.00	May 15, 2002
Options	618,399	$2.00	December 18, 2002
Options	50,000	$2.00	December 19, 2002
Options *	1,000,000	$1.90	October 21, 2003
Warrents **	5,264,037	$2.30	March 2, 1999
Agents Warrents	526,400	$3.00	December 2, 1999
* These options were subject to V.S.E. approval until November 3, 1998. ** One warrent to purchase one share at $2.30 until March 2, 1999 after which two warrents will be required to purchase one share at $2.30 until December 2, 1999.

SHARES IN ESCROW OR SUBJECT TO POOLING RESTRICTIONS AS AT OCTOBER 31, 1998

	Number of Shares
Escrow	NIL

LIST OF DIRECTORS AS AT OCTOBER 31, 1998

Dr. Abdullah Basodan
Douglas Brown
Nell Dragovan
Chet Idziszek
Donald Kohls
Daniel Matthews
Robert Sibthorpe
Catherine McLeod-Seltzer
James G. Stewart

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