(USAC) 2014 April, 2014 1 AGENDA USAC CORPORATE OVERVIEW - - PowerPoint PPT Presentation

U.S. ANTIMONY CORPORATION (USAC) 2014

April, 2014 1

AGENDA

USAC CORPORATE OVERVIEW FINANCIAL UPDAT UASC HIGHLIGHTS USAC ANTIMONY PRODUCTION FACILITIES BEAR RIVER ZEOLITE USAC MANAGEMENT TEAM

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USAC CORPORATE OVERVIEW

NYSE: UAMY

• USAC is a rapidly growing natural resource company that is increasing its raw

material supply of antimony from properties in Mexico and third parties around the world.

• USAC has produced various antimony products since 1969 and is a fully

integrated mining, transportation, milling, smelting, and marketing company.

• China supplies more than 90 percent of all the antimony in the world, and their

resources are being depleted.

• USAC operates the only significant antimony smelter in the United States and it

is in a “sold out” condition.

• The Company has proven experience in underground and open pit mining,

flotation and gravimetric milling, crushing and screening, dry grinding, cyanide leaching, precious metal refining, pyro-metallurgy, and marketing.

• USAC has developed proprietary technology to smelt a variety of raw materials

and recover impurities such as lead, arsenic, bismuth, mercury, selenium, silver, and gold.

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Corporate Offices and Plant, Thompson Falls, Montana

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• Operations include a smelter and a precious metal refinery in Montana, and a

smelter and three mills in Mexico.

• A larger 500 ton mill is being installed in Mexico.
• Five Mexican properties supply direct shipping ore (DSO) or mill feed for the

Mexican smelter.

• The Los Juarez property is starting significant silver and gold production that will

supplement the antimony values and identify the Company as a “precious metal producer.”

• USAC owns 100% of the Bear River Zeolite, Corp. mine in southeast Idaho

regarded as one of the best zeolite properties in the world due to its high cation exchange capacity, low sodium content, superior hardness, uniformity, high potassium content, large surface area, and low clay and impurity content. The deposit can be mined and processed cheaper than other deposits because there is little internal waste or external overburden, it is more than 800 feet thick, and it is very homogeneous.

• BRZ zeolite has hundreds of applications as an “environmentally friendly”

material.

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USAC CORPORATE HIGHLIGHTS

• USAC has connected a natural gas pipeline to its Mexican smelter at Madero that

will cut fuel costs by up to 75%. Fuel is the largest cost of the smelter.

• USAC is producing from the Wadley Mine in the State of San Luis Potosi, Mexico.

The mine is historically the largest producer of antimony in North and Central America, with a recorded production through 1943 of 50,000 metric tons of antimony metal contained.

• USAC is producing from five antimony mines in Mexico, and at the present time,

there is an inventory of two months of furnace feed at the Mexican smelter.

• USAC has just received a permit for four more furnaces at the Mexican smelter

and they are under construction.

• USAC Mexican production increased from 372,046 pounds in 2012 to 683,9323

pounds in 2013, an increase of 83.8%. Overall antimony production for the company increased from 1,423,279 pounds in 2012 to 1,780,134 pounds in 2013, an increase of 25%.

• Antimony is considered a “strategic metal” and wartime applications include

antimony oxide used as a flame retardant in plastics and textiles for vehicles and aircraft; antimony metal used in storage batteries and in ordnance to harden lead; and antimony tri-sulfide for primers and rockets.

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MEXICO MINING OPERATIONS

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• 1. LOS JUAREZ PROPERTY, QUERETARO, MEXICO
• At the Los Juarez property USAC relied on a Mexican Government publication,

Consejo de Recursos Minerales, Monografia Geologico-Minera del Estado de Querearo, pages 74-75. The paper reported a reserve of 1,000,000 metric tons containing 253 grams per ton silver and 1.8% antimony on 40 hectares (100 acres). The deposit was interpreted as a manto (layered) deposit up to 5 meters thick.

• Although USAC used the report to start mining, it was disallowed by the S.E.C. as

a basis for reserves. Detailed mapping and sampling delineated jasperoid mineralization over an east-west strike length of 3.5 kilometers with a maximum width of 1 kilometer. Unlike most Mexican deposits, this deposit is primarily all

• sulfide. Preliminary exploration indicates that it could be a deep-seated jasperoid.
• USAC controls this property directly.

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Mine face, Los Juarez property, Queretaro, Mexico

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Breaking oversized Los Juarez ore

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• 2. WADLEY, SAN LUIS POTOSI, MEXICO
• According to the U. S. Geological Survey, by 1943 the “San Jose Wadley mines

have produced more antimony than any other district in Mexico, and they have been surpassed in production by only one or two other deposits in the world.” By 1943, the recorded production was 57,612 metric tons of contained antimony

• metal. Since that time the mine has probably produced approximately an

additional 25,000 metric tons of metal.

• The mineralization is primarily in five layered deposits or “mantos” that were fed

by fracture filling veins that also contain mineralization. The zone is approximately 2 kilometers long and 1 kilometer in width, and has been developed by 500 kilometers of drifts and tunnels.

• The ore consists almost entirely of oxide minerals that were recovered by hand-

sorting “direct shipping ore” for smelting and gravimetric concentration of the lower-grade material.

• USAC claims no reserves at the present time at Wadley.

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Buscones Wadley, SLP, Mexico

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Wadley bin from aerial tramway

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• 3. SOYATAL DISTRICT, QUERETARO, MEXICO
• USAC is sourcing 5-6% antimony mill feed and DSO for Madero from the Soyatal

District in the State of Queretaro, Mexico.

• The deposit was the third largest antimony producer in Mexico. Donald E. White

(U. S. Geological Survey Bulletin 960-B, Antimony Deposits of Soyatal District, State of Queretaro, Mexico, 1948) reported that the production (p. 40) was estimated through 1943 at 25,630 metric tons of metal contained. USAC has purchased this property but claims no reserves.

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Soyatal DSO ore

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• 4. SIERRA GUADALUPE, ZACETECAS, MEXICO
• In the late 1980’s USAC mined a property known as “Sierra Guadalupe” in the

State of Zacetecas.

• Currently, the property is being mined by a third party who delivered 2.5 to 4%

antimony mill feed from dumps at a rate of up to 1,000 tons per month.

• They are now producing 5-8% antimony ore from underground with explosives

permit.

• USAC has an option to buy this property but claims no reserves.

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Aerial view of Santa Monica dumps, Sierra Guadalupe

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• 5. GUADALUPANA, QUERETARO, MEXICO
• This property was originally mined by Compania Minera Y Refinadora Mexicana,
• S. A. Estacion Wadley, and SLP during World War II and thereafter. It consists of 3

underground levels with extensive drifts, stopes, cross-cuts, and raises.

• Currently, the mine is operated by a third party and they are supplying 28-35%

DSO and oxide mill feed.

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Guadalupana, QRO, Mexico Crew

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USAC ANTIMONY PRODUCTION FACILITIES

• 1. PUERTO BLANCO ANTIMONY COMBINATION

FLOATATION/GRAVITY MILL, GUANAJUATO, MEXICO

• This plant produces antimony flotation and gravity concentrates that may

contain silver and gold. The plant feed capacity is up to 150 tons per day.

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Pre-crusher circuit Puerto Blanco mill

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Puerto Blanco flotation mill

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• 2. ANTIMONY OXIDE ORE GRAVITY MILL, WADLEY, SAN LUIS POTOSI,

MEXICO

• This plant produces gravity concentrates and has a feed capacity of up to 500

tons per day.

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Wadley plant, SPP, Mexico

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Wadley plant thickener, San Luis Potosi, Mexico

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• 3. ANTIMONY OXIDE SMELTER, THOMPSON FALLS, MONTANA
• This plant has a capacity to produce 15,000,000 pounds per year of antimony
• xide, or 5,000,000 pounds per year of antimony metal.

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USAC mill, Thompson Falls, Montana

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• 4. ANTIMONY OXIDE OR SULFIDE SMELTER, MADERO, COAHUILA,

MEXICO

• This smelter produces crude antimony oxide or metal from 5 tons per day of

DSO or concentrate.

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Madero Smelter, Coahuila, Mexico

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• 5. SILVER AND GOLD REFINERY, THOMPSON FALLS, MONTANA
• This plant recovers silver and gold as either a high purity silver metal and/or
• gold. The Company expects costs for PM will be minimal.

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Pouring precious metals, Thompson Falls, Montana

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ZEOLITE OPERATIONS

• BEAR RIVER ZEOLITE COMPANY (BRZ) is a wholly owned subsidiary of United

States Antimony Corporation (USAC) of Thompson Falls, Montana.

• The zeolite is regarded as one of the best zeolites due to its high cation

exchange capacity, low sodium content, superior hardness, and uniformity.

• The products are sold in the United States and throughout the world.
• Markets include:
• water filtration
• soil amendments
• animal nutrition
• waste-water treatment
• odor control
• hydrogen sulfide gas control
• nuclear remediation
• pozzolan
• plastic fillers
• grout
• ammonia control in underground mining
• perations
• heavy metal and ammonia removal from

water

• remediation of produced water from, oil

and gas wells

• mine remediation
• and many others.

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BRZ plant, Preston, Idaho

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Blast hole drill at BRZ

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BRZ pit

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Raymond mill, BRZ

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USAC BOARD OF DIRECTORS John C. Lawrence (Thompson Falls, MT) Gary Babbitt (Boise, ID) Russell C. Lawrence (Deary, ID) Hart W. Baitis (Missoula, MT) Whitney H. Ferer (Omaha, NE) CORPORATE OFFICERS John Lawrence: President and CEO John C. Gustavsen: First Vice-President Russell C. Lawrence: Second Vice-President Matt Keane: Third Vice-President Alicia Hill: Secretary, Controller, Treasurer Dan Parks: CFO CORPORATE COUNSEL Paul Boyd, Stoel Rives, LLP (Boise, ID.) AUDITORS Decoria, Maichel, & Teague P.S. (Spokane, WA.) TRANSFER AGENT Columbia Stock Transfer Company (Post Falls, ID) ANTIMONY, THOMPSON FALLS, MT Marilyn Sink: Plant Manager Lance Sink: Assistant Manager Matt Keane: Director Sales Tony Lyght: Maintenance Foreman ZEOLITE,PRESTON,IDAHO Angie Bengtson: General Manager Gerardo Sanchez: Plant Manager Dave Cole: Mine Manager MEXICO OPERATIONS Russell C. Lawrence: Director Latin America Jose Jesus Heriberto Torres Montes: Superintendent Reynaldo Angles: Mine Manager Los Juarez Luis Valeriio: Delgado Smelter Manager Sixto Beserra: Chemist Smelter

USAC MANAGEMENT TEAM

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Reclaimed tailings area, Thompson Falls, Montana. USAC is environmentally conscientious.

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FINANCIAL UPDATE – USAC CORPORATION

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United States Antimony Corporation and Subsidiaries

Consolidated Balance Sheets December 31, 2013 and 2012 ASSETS 2013 2012 Current assets: Cash and cash equivalents $ 20,343 $ 1,000,811 Certificates of deposit 246,565 243,616 Accounts receivable, net 576,021 456,159 Inventories 1,034,770 1,192,189 Other current assets 32,865 170,529 Deferred tax asset

• 39,824

Total current assets 1,910,564 3,103,128 Properties, plants and equipment, net 12,395,645 9,508,975 Restricted cash for reclamation bonds 75,501 75,251 Deferred tax asset

• 189,627

Other assets 509,281 498,496 Total assets $ 14,890,991 $ 13,375,477

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LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,734,767 $ 1,181,225 Due to factor 177,701 23,536 Accrued payroll, taxes and interest 124,937 89,541 Other accrued liabilities 50,745 30,220 Payables to related parties 15,549 17,522 Deferred revenue 110,138

• Notes payable to bank

138,520

• Long-term debt, current

126,984 280,597 Total current liabilities 2,479,341 1,622,641 Long-term debt, net of discount and current portion 1,002,215 157,466 Stock payable to directors for services 150,000

• Asset retirement obligations and accrued

reclamation costs 257,580 249,540 Total liabilities 3,889,136 2,029,647 Commitments and contingencies (Note 4 and 15)

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Stockholders' equity: Preferred stock $0.01 par value, 10,000,000 shares authorized: Series A: -0- shares issued and outstanding

• Series B: 750,000 shares issued and outstanding

(liquidation preference $892,500 and $885,000, respectively) 7,500 7,500 Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years) 1,779 1,779 Series D: 1,751,005 shares issued and outstanding (liquidation preference $4,796,731 and $4,755,582, respectively) 17,509 17,509 Common stock, $0.01 par value, 90,000,000 shares authorized; 63,156,206 and 61,896,726 shares issued and

• utstanding, respectively

631,562 618,966 Additional paid-in capital 32,030,249 30,745,650 Accumulated deficit (21,686,744) (20,045,574) Total stockholders' equity 11,001,855 11,345,830 Total liabilities and stockholders' equity $ 14,890,991 $ 13,375,477

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WARRANTS Number of Warrants Exercise Prices Balance, December 31, 2010 725,000 $.20 - $.75 Warrants exercised (125,000) $.30 - $.40 Balance, December 31, 2011 600,000 $.30 - $.60 Warrants issued 1,734,667 $2.50 - $4.50 Warrants exercised (250,000) $.30 - $2.50 Warrants expired (150,000) $.30 - $.40 Balance, December 31, 2012 1,934,667 $.25 - $4.50 Warrants issued 629,740 $1.20-$1.60 Warrants exercised (25,000) $1.20 Warrants expired (50,000) $4.50 Balance, December 31, 2013 2,489,407 $.25 - $4.50 The above common stock warrants expire as follows: Year ended December 31: June 28, 2014 287,500 $1.20 July 15, 2014 1,207,750 $2.50 December 10, 2014 267,240 $1.60 June 29, 2015 476,917 $4.50 Thereafter 250,000 $0.25 2,489,407 $.25 - $4.50

BENEFICIAL OWNERS Title of Class Name and Address of Beneficial Owner (1) Amount and Nature of Beneficial Ownership Percent of Class (1) Percent of all Voting Stock Common Stock Cardinal capital Management LLC Four Greenwich Office Park Greenwich CT 06831 4,008,694 6.40% 6.20% Common Stock Reed Family Limited Partnership 328 Adams Street Milton, MA 02186 4,018,335 6.60% 6.40% Common Stock The Dugan Family c/o A.W.Dugan 1415 Louisana Street, Suite 3100 Houston, TX 77002 6,362,927(3) 10.70% 10.40% Common Stock John C. Lawrence Russell Lawrence Hart Baitis Garry Babbitt Bernard Guarnera Whitney Ferer Mathew Keane Daniel Parks 4,128,346(2) 165,693 20,526 134,167 87,725 58,026 10,300 40,000 6.50% * * * * * * * 6.30% * * * * * * * Common Stock All Directors and Executive Officers as a Group 4,644,783 7.30% 7.10%

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