Summary of UNITED STATES ANTIMONY CORP

ITEM 2. Management's Discussion and Analysis of Results of Operations and Financial Condition

General

This report contains both historical and prospective statements concerning the Company and its operations. Prospective statements (known as "forward-looking statements") may or may not prove true with the passage of time because of future risks and uncertainties. The Company cannot predict what factors might cause actual results to differ materially from those indicated by prospective statements.

For the three and six month periods ended June 30, 2012 compared to the three and six month periods ended June 30, 2011.

Results of Operations by Division

                                             2nd Qtr          2nd Qtr         Six Months       Six Months
Antimony - Combined USA and Mexico             2012             2011             2012             2011
Lbs of Antimony Metal USA                       320,671          290,499          569,265          569,159
Lbs of Antimony Metal Mexico                     70,259           29,663          165,617           72,364
  Total Lbs of Antimony Metal Sold              390,930          320,162          734,882          641,523
Sales Price/Lb Metal                       $       6.46     $       7.56     $       6.40     $       7.30
EBITDA/Lb Metal                            $       0.64     $       0.93     $       0.52     $       0.97
Operating Income/Lb Metal                  $       0.49     $       0.77     $       0.36     $       0.82

Gross antimony revenue - net of discount   $  2,525,097     $  2,421,903     $  4,699,906     $  4,686,136
Precious metals revenue                         205,771          157,841          385,909          339,040
Production costs - USA                       (1,647,645 )     (1,922,781 )     (3,155,275 )     (3,516,347 )
Product cost - Mexico                          (328,110 )       (138,526 )       (773,433 )       (337,940 )
Direct sales and freight                       (139,518 )        (65,220 )       (213,977 )       (143,504 )
General and administrative                     (135,872 )        (50,062 )       (199,498 )       (106,687 )
Mexico non-production costs                    (231,024 )       (106,125 )       (363,548 )       (295,595 )
  EBITDA                                        248,699          297,030          380,084          625,103
Depreciation & amortization                     (57,553 )        (50,039 )       (115,106 )        (96,866 )
Operating income - antimony                $    191,146     $    246,991     $    264,978     $    528,237

Zeolite
Tons sold                                         3,251            3,133            6,717            5,843
Sales Price/Ton                            $     236.06     $     150.10     $     218.26     $     147.67
EBITDA/Ton                                 $     236.06     $     150.10     $     218.26     $     147.67
Operating Income (Loss)/Ton                $      30.08     $      (0.80 )   $      21.54     $      (0.84 )

Gross zeolite revenue                      $    767,433     $    470,258     $  1,466,040     $    862,865
Production costs                               (492,674 )       (315,310 )       (980,976 )       (588,612 )
Direct sales and freight                        (46,442 )        (28,980 )        (89,718 )        (45,090 )
Royalties                                       (62,236 )        (52,139 )       (129,046 )        (97,051 )
General and administrative                      (15,846 )        (26,844 )        (19,351 )        (41,367 )
  EBITDA                                        150,235           46,985          246,949           90,745
Depreciation                                    (52,461 )        (49,498 )       (102,278 )        (95,637 )
Operating income (Loss) - zeolite          $     97,774     $     (2,513 )   $    144,671     $     (4,892 )

Company-wide
Gross revenue                              $  3,498,301     $  3,050,002     $  6,551,855     $  5,888,041
Production costs                             (2,468,429 )     (2,376,617 )     (4,909,684 )     (4,442,899 )
Other operating costs                          (630,938 )       (329,370 )     (1,015,138 )       (729,294 )
  EBITDA                                        398,934          344,015          627,033          715,848
Depreciation & amortization                    (110,014 )        (99,537 )       (217,384 )       (192,503 )
Operating income                                288,920          244,478          409,649          523,345
Net interest                                      1,493            1,526            3,549            2,442
General and administrative costs               (132,657 )        (89,967 )       (211,466 )       (170,316 )
Board of Directors compensation                 (95,754 )                        (204,518 )
Professional fees                               (34,337 )        (30,888 )       (132,644 )       (125,840 )
Factoring expense                               (23,895 )        (38,721 )        (51,344 )        (73,414 )
Income tax benefit (expense)                                                       74,311          (24,426 )
  Net income (loss)                        $      3,770     $     86,428     $   (112,463 )   $    131,791

PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management's Discussion and Analysis of Results of Operations and
FinancialCondition, continued

The pounds of antimony produced and sold was up for the quarter, but the sales price per pound was down from the prior year. A temporary decrease in the delivery of raw materials from a major supplier in June resulted in decreased results for the quarter, but the deliveries have resumed and are on schedule. The pounds of product (raw material) from Mexico increased for the quarter and the six months, and we should see additional increases in the upcoming quarters. Costs incurred in getting the Mexico plants in operation were substantial in 2012, and will continue during the remainder of the year as production is being ramped up. Conversely, we will have more antimony products from Mexico to sell, and the cost of raw material per pound of antimony produced will decrease as we are able to work more raw materials from Mexico into our production. In addition, we expect to have increased revenue from precious metals as we process more of the raw materials supplied by our Mexico division. We contracted in July 2012 to install a natural gas pipeline for our Mexico smelter operation. Our fuel costs are our second largest expense after raw material in Mexico, and we are expecting the switch from propane to natural gas to decrease our Mexico fuel costs by 75%. The pipeline should be completed in approximately nine to twelve months.

The tons of zeolite sold increased from the comparable periods for 2011, and the sales price per ton was also better than the prior year. We expect this to continue through the remainder of the year.

Our general and administrative costs are significantly higher than the prior year, and management is aggressively seeking ways to bring this cost down.

Financial Condition and Liquidity     June 30, 2012       December 31, 2011

Current Assets                       $     5,749,111     $         2,816,981
Current liabilities                       (1,260,856 )            (1,595,433 )
  Net Working Capital                $     4,488,255     $         1,221,548

Cash provided (used) by operations   $       582,617     $           564,041
Cash (used) by investing                  (1,613,677 )            (2,239,441 )
Cash provided (used) by financing:
  Principal paid on long-term debt          (128,298 )              (124,722 )
  Sale of Stock                            4,711,842               1,242,780
  Other                                     (113,908 )               113,908
   Net change in cash                $     3,438,576     $          (443,434 )

Net cash provided by financing activities during the first six months of 2012 and 2011 was $4,469,636 and $1,136,197, respectively, and was primarily generated from the sale of common stock.

Our liquidity (cash) and working capital has improved by approximately $3.5 million from December 31, 2011. This was primarily due to an increase in cash, which is approximately the net cash received from issuing $4.7 million of common stock, and expending $1.4 million for capital improvements and operations. Decreases in our accounts receivable increased our cash position at June 30, 2012, and the primary decreases to cash were for payments of accounts payable, checks issued but not cleared at end of year, and payments on long term debt. We have lines of credit of $202,000 which have not been drawn on at June 30, 2012.

PART I - FINANCIAL INFORMATION, CONTINUED: