UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 1999

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ----- to -----.

Commission File Number 0-22905

GOLDEN PHOENIX MINERALS, INC.

(Exact Name of Registrant as specified in its charter)

3595 Airway Dr. Suite 405 Reno, Nevada 89511

(Address of Principal Executive Offices) (Zip Code)

(775) 853-4919

Registrant's telephone number, including area code:

Indicate by check mark whether the Registrant

The number of shares outstanding of the Registrant's Common Stock as of October 31, 1999 was 21,715,446.

Transitional Small Business Disclosure Format (check one): Yes No ( X)

GOLDEN PHOENIX MINERALS, INC.INDEX

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GOLDEN PHOENIX MINERALS, INC.

(A Development Stage Company)

CONDENSED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 1999 AND DECEMBER 31, 1998

(Unaudited)

ASSETS

The Accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements

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GOLDEN PHOENIX MINERALS, INC.

(A Development Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

DURING THE DEVELOPMENT STAGE

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998, NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

AND INCEPTION (JUNE 2, 1997) TO SEPTEMBER 30, 1999

(Unaudited)

The Accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements

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GOLDEN PHOENIX MINERALS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999, NINE MONTHS ENDED SEPTEMBER 30,

1998 AND INCEPTION (JUNE 2, 1997) TO SEPTEMBER 30, 1999

(Unaudited)

The Accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements

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GOLDEN PHOENIX MINERALS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 1999

(Unaudited)

Note 1. Interim Financial Statement Policies and Disclosures

The interim, unaudited, condensed financial statements of GOLDEN PHOENIX MINERALS, INC. (the "Company") included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally required in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ending September 30, 1999 are not necessarily indicative of the results that may be expected for the year ending December 31, 1999. These financial statements should be read in conjunction with the financial statements and notes thereto for the period ended December 31, 1998. The accounting policies set forth in the audited financial statements are the same as the accounting policies utilized in the preparation of these financial statements except as modified for appropriate interim presentation.

Note 2 - Supplemental Cash Flows Information

Certain non-cash investing and financing transactions are not included in the Statements of Condensed Consolidated Cash Flows. These include, for the first nine months of 1999, the issuance of 2,005,821 restricted and unrestricted common shares, valued at $242,875, in payment of property obligations on the Contact and Borealis properties, and 988,139 restricted common shares, valued at $97,511, in settlement of debt.

Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Section 21E of the Securities Exchange Act of 1934 provides a "safe harbor" for forward-looking statements. Certain information included herein contains statements that are forward-looking, such as statements regarding management's expectations about future production and development activities as well as other capital spending, financing sources and the effects of regulation. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include, but are not limited to, those relating to the market price of metals, production rates, production costs, the availability of financing, the ability to obtain and maintain all of the permits necessary to put and keep properties in production, development and construction activities and dependence on existing management. The Company cautions readers not to place undue reliance on any such forward-looking statements, and such statements speak only as of the date made.

No operational revenue has been generated thru September 30, 1999. All Company activities have been directed toward exploration activities on our two key properties. The Company has exploration properties in Nevada and royalty interest in Alaska. The royalty interest will be a value to the Company if any of the Alaskan properties are taken to feasibility stage of development.

Golden Phoenix Alaska continues trying to find joint venture partners for the Alaskan properties, which Golden Phoenix Minerals assigned to them. The subsidiary is responsible for its own fund raising activities and the cost of staying in business. As members of the Board of Directors of this company, we have attempted to keep watch on Golden Phoenix Minerals interest in the properties. Subsequent to September 30, 1999 the Company sold its interests in the Alaskan company to Great American Minerals and Exploration (formerly Golden Phoenix Alaska, Inc.) in order to complete its restructuring and to better focus on its Nevada properties. As part of the sale, the Company retained the Cirque joint venture with Camnor Resources, and it also retained the important royalties in the Uncle Sam joint venture with Kennecott Exploration, the Glory Creek joint venture with Camnor Resources, and any other property retained in Alaska by Great American Minerals. The Company is carried on any financial obligations in Alaska and no work is required on the part of Golden Phoenix Minerals in the coming year.

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The Company's evaluation of the Borealis property ("Borealis Property") situated in Mineral County, Nevada has progressed with the verification of historical data. Approximately $12 million dollars was spent on collecting data for this property over the last 20 years. This is a massive database, which has been gathered during the transition of some of the early operators of the property from paper to computer filing or data collection. There are approximately 2000 drill holes on the property and 150,000 to 200,000 sample intervals. In order to facilitate reassessment of this large database we have divided the main area into six smaller map areas. These map areas are named Polaris, Borealis Pit area, Freedom Flats & Graben, East Ridge, North Borealis and Northeast Ridge. We are actively seeking a new joint venture partner for this property.

The Company continues its evaluation of the Contact Copper property. Fieldwork, including mapping and sampling of peripheral areas of the Banner deposit, showed the Helen B. Smith/Mammoth mine area to be most promising for very high grades of copper-silver-gold mineralization. These old workings previously intercepted copper grades as high as 7% and silver ranging from 10 to 20 ounces per ton. Other promising areas include the Rattler where oxidized copper mineralization is found over a broad area in the granodiorite and in limestone skarns, and the obvious strike extensions of the Banner zone to the east and west. The company continues its program of sampling of the previously drilled core, which was never assayed, in the banner zone. The next phase of drilling in the Banner zone will be completed in late 1999. An economic evaluation of the new work planned for the Banner area will be completed in late 1999, which should expand the economic open pit in the Banner area defined during 1998. During the first quarter of 1999, the Company has reevaluated the banner area for its high-grade underground potential. The results are vary encouraging with 1.2 million tons of 5.72% silver copper equivalent grade at a 3% copper cut off. The underground high grade identified would produce 111 million pounds of copper and 2.15 million ounces of silver.

Exploration costs have been incurred in connection with the properties in Nevada and Alaska. These costs have been incurred for the location of prospect sites, mining claims, and field examinations to determine the potential occurrence of economic mineralization on the different properties. Other exploration costs include the compilation of historic data on the properties to assist in the evaluation of the properties and the planning of further exploration.

Borealis

Fieldwork at the Borealis Property has found that the gold mineralization on the large property is driven by at least four different silica-rich hydrothermal systems. Main stage gold mineralization follows an early barren silicification event in each of these hydrothermal systems. This feature, along with recognition of several other important ore controls, has identified several new areas that have excellent discovery potential and which remain to be drilled.

A report prepared by Whitney & Whitney, Inc. on Borealis in 1997 identified an indicated oxide and sulfide resource totaling 37.8 million tons with an indicated gold grade of 0.032 ounces per ton, or nearly 1.2 million ounces of gold still remaining unmined. The Borealis mine was originally put into production in 1981 and 600,000 ounces of gold was produced from seven deposits.

For the sake of the current resource evaluation, the Company had previously divided the property into two mineralized zones called the Polaris and Borealis zones. Each zone has three target areas outlined. Golden Phoenix will calculate drill-indicated gold resources for each area. The areas will be evaluated in the following order by target named Polaris, Borealis Pit area, Freedom Flats & Graben, East Ridge, North Borealis and Northeast Ridge

The first study area chosen was on the Polaris zone, which hosts gold mineralization along its entire 12,000 foot length. The initial target area was the Polaris, which is one of three in the Polaris zone. The other two are named East Ridge and Northeast Ridge. All three were partially mined with gold mineralization left in the pit walls, floor and along extensions. By reworking the data available on the Polaris target, Golden Phoenix identified a remaining near surface oxide resource of 1.54 million tons containing about 37,000 ounces of gold averaging 0.024 ounces per ton and 630,000 ounces of silver averaging 0.41 ounces per ton. The previous mine operators removed only 250,000 tons of ore and produced about 9,500 ounces of gold from this same zone.

The second target to be evaluated is the remaining gold resource adjacent, below and within the previously mined Borealis open pit. Production in the early 1980s from this pit is reported to be 1,488,000 tons grading 0.103 ounces of gold per ton for 152,760 ounces of gold. Golden Phoenix's resource evaluation determined that 2,766,800 tons containing 153,000 ounces of gold and averaging 0.055 ounces per ton gold remain in the Borealis target area. This deposit also contains 533,600 ounces of silver grading 0.19 ounces per ton. Numerous drill intercepts require step out drilling from open ore intercepts. This drilling will add additional ounces of gold to the resource.

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The following table summarizes the indicated resources calculated thus far:

The next target being evaluated is the Freedom Flats & Graben targets. This is potentially the largest of six target areas chosen for evaluation. The evaluation of this target area will be completed by early December.

Contact

Fieldwork has continued at the Contact project with extensive reconnaissance work being conducted on all of the project area to identify known surface occurrences of copper mineralization. It is hoped to have this reconnaissance work completed by the end of the year. This will allow us to prioritize areas outside of the Banner zone as to the probability of providing additional mineral resource. Golden Phoenix has been aided in this evaluation by a mid size contract mining company which is providing analytical assistance for the project.

As of September 30, 1999, the company had $7,230 in cash. A significant portion of the working capital is allocated to the Contact copper and Borealis Property. The Borealis Property lease payments are $3,250 per month. Payments to the end of September 30, 1999 total $9,750. The total Contact payments are $6,500 per month, which are divided as $2,500 for F. W. Lewis Inc. lease and $4,000 for the International Enexco joint venture. The total payments for the third quarter of 1999 are $29,250. The payments are payable in cash or stock of the Company or a combination of cash and stock, with the stock being valued at its current closing market price on the day before payment.

The ability of the Company to satisfy the cash requirements of its exploration, development and operations will be dependent upon future financing. The Company anticipates that additional financing will be obtained, although no assurance can be made that funds will be available on terms acceptable to the Company. See "OUTLOOK" below.

The Company is investigating potential financing sources and is conducting discussions with potential joint venture partners for its properties in Nevada, but the Company has not yet finalized commitments for such financing or joint ventures.

In March, the Company received a financial commitment from a private investor for $500,000. This commitment is for an option on restricted stock and warrants to be delivered over a period of time. The option will be exercised on a monthly basis of $20,000 per month at a strike price of $0.10 per share.

The Company is substantially complete with its Year 2000 assessment. All computer systems were acquired in 1997 or thereafter. Therefore, management anticipates only minor Year 2000 compliance problems with its computer systems. As a development stage enterprise, the Company is not materially reliant on any specific customers or vendors for its continued operations. Based on its assessment, management does not anticipate the Year 2000 issue will have a material impact on the Company's operations.

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The Company will issue a significant number of common shares of Golden Phoenix Minerals, Inc. to cover the option agreement as well as meet its contractual property payments for the Contact property. The Company will also need to raise additional financing to fund its exploration, development and operations.

Item 3. Changes in Securities and use of Proceeds

Following is a summary of sales of unregistered securities for the third quarter of 1999. All securities were issued as restricted common shares, which are subject to Rule 144 of the Securities and Exchange Commission. Generally, Rule 144 requires shareholders to hold the shares for a minimum of one year before sale. In addition, officers, directors and more than 10% shareholders are further restricted in their ability to sell such shares. There have been no underwriters of these securities and no commissions or underwriting discounts have been paid.

The above transactions qualified for exemption from registration under Sections 3(b) or 4(2) of the Securities Act of 1933. Private placements for cash were non-public transactions. The Company believes that all such investors are either accredited or, either alone or with their purchaser representative, have such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of the prospective investment.

PART II OTHER INFORMATIONItem 6. EXHIBITS AND REPORTS ON FORM 8-K(a) Exhibits:

(b) No reports were filed on Form 8-K during the three-month period ended September 30, 1999

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SIGNATURES

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

                                                                                                                                          GOLDEN PHOENIX MINERALS, INC.

Date: November 18,1999                                                                                                By: /s/ Michael R. Fitzsimonds

                                                                                                                                                   Michael R. Fitzsimonds

                                                                                                                                                   President and Director

                                                                                                                                                   (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Company and in the capacities and on the dates indicated.

Date: November 18, 1999                                                                                                By: /s/ Michael R. Fitzsimonds

                                                                                                                                                   Michael R. Fitzsimonds

                                                                                                                                                   President and Director

                                                                                                                                                   (Principal Executive, Financial and

                                                                                                                                                   Accounting Officer)