ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

CORPORATE HISTORY

Power-Save Energy Company is the successor corporation of Mag Enterprises, Inc., a Utah corporation incorporated on July 30, 1980. On September 10, 1993, an Amendment to the Articles of Incorporation was filed to change the name from Mag Enterprises, Inc. to Safari Associates, Inc. On September 12, 2006, an Amendment to the Articles of Incorporation was filed to change the name from Safari Associates, Inc. to Power-Save Energy Company (the "Company").

On February 29, 2012, Power-Save Energy Company, a Utah corporation, entered into an agreement to acquire all of the capital stock of Bluestone S.A. On March 9, 2012, pursuant to a Share Exchange Agreement (the "Share Exchange Agreement") with Bluestone, S.A., a Chilean corporation ("BLUESTONE"), and the shareholders of BLUESTONE, S.A. ("BLUESTONE Shareholders'), the Company acquired 100% of the outstanding shares of Common Stock of Bluestone (the "Bluestone Stock") from Bluestone Shareholders. In exchange for the Bluestone Stock, the Company issued 60,000,000 shares of its Common Stock to the Bluestone Shareholders. As a result of closing the transaction, Bluestone Shareholders now hold approximately 96.7% of the Company's issued and outstanding Common Stock. For accounting purposes, the Bluestone acquisition is treated as a reverse acquisition with Bluestone treated as the acquirer and the Company as the acquired party. As a result, the business and financial information included in the report is the business and financial information of Bluestone prior to March 9, 2012 and the combined entity after March 9, 2012.

Through Bluestone SA we now have a majority interest in Sulfatos Chile. Our Sulfatos Chile subsidiary specializes in the production of the highest quality food-grade copper sulfate. Copper ore is processed in its copper sulfate processing plant in Puerto Oscuro, Chile. The ore is extracted from the Sulfatos Chile owned 1,325 hectare Anica copper mine or bought from local artisanal miners. Our copper sulfate facility is expected to begin processing 5,000 tons of material per month in August 2012. The current plant capacity of 15,000 tons per month will occur upon receiving permits for unlimited production which we expect to receive in April of 2013. Cash flow from this first phase is expected to begin in October of 2012 and will fund future expansion for an additional 25,000 ton processing plant.

NO COMPARABLE INFORMATION

There is no relevant comparable historic financial information for the current quarter ended June 30, 2012 and the six months ended June 30, 2011, as Bluestone SA's operations did not begin until January 2012. Therefore, limited information is provided in our Results of Operations section below.

RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 2012

Revenue for the three and six months ended June 30, 2012 was $31,057 and $51,943, respectively for the sale of copper and copper sulfate. Gross profit for the three and six months ended June 30, 2012 was $31,057 and $51,943 respectively. We expect revenues to increase significantly after the full scale launch of our copper sulfate production facility in Q4 2012.

Operating expenses for the three and six months ended June 30, 2012 was $1,253,443 and $1,743,342, respectively. Operating expenses were primarily associated with the operations of Sulfatos Chile in the ordinary course of business as well as legal and accounting expenses required by a public company.

Due to the losses during the period the Company has not recorded a provision for income taxes. The Company will carry back any net operating loss to recover taxes paid in prior periods.

LIQUIDITY AND CAPITAL RESOURCES.

As of June 30, 2012 the current liabilities exceeded the current assets by $1,104,523. Cash for the period ended June 30, 2012 was $29,034 primarily from the sales of stock and intercompany loans.

Cash Requirements

During the next twelve months, the Company plans to satisfy its cash requirements by income from operations as well as additional equity financing and contributions from its current principal shareholders and other investors. The Company intends to undertake additional private placements of its securities in order to raise future development and operating capital. The Company depends upon capital to be derived from contributions from its principal shareholders and future financing activities such as subsequent offerings of its securities. There can be no assurance that the Company will be successful in raising the capital it requires through the sale of its securities.