Certain matters discussed are forward-looking statements that involve risks and uncertainties, including the impact of antimony prices and production volatility, changing market conditions and the regulatory environment and other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of this filing. We disclaim, however, any intent or obligation to update these forward-looking statements.

Results of Operations

Antimony - Combined USA and Mexico
                                         2011              2010             2009
Lbs of Antimony Metal                    1,401,423        1,423,637          974,356
Sales Price/Lb Metal                 $        7.43     $       4.34     $       2.59
Cost of Operations/Lb Metal                  (6.79 )          (4.04 )          (2.27 )
Gross Profit/Lb Metal                $        0.64     $       0.30     $       0.32

Gross antimony revenue               $  10,406,636     $  6,174,062     $  2,526,663
Precious metals revenue                    667,813          483,307           40,444
Production costs                        (8,477,151 )     (5,080,588 )     (1,742,990 )
Depreciation                              (199,515 )       (168,808 )        (71,929 )
Direct Sales and Freight                  (402,521 )       (287,648 )       (168,019 )
General and Administrative                (439,249 )       (216,765 )       (232,005 )
  Gross Profit - Antimony            $   1,556,013     $    903,560     $    352,164

Zeolite
Tons sold                                   12,105           15,319           11,519
Sales Price/Ton                      $      168.83     $     157.71     $     133.37
Cost of Operations/Ton                     (159.06 )        (127.02 )        (131.90 )
Gross Profit/Ton                     $        9.76     $      30.69     $       1.47

Gross Revenue                        $   2,043,641     $  2,415,955     $  1,536,233
Production costs                        (1,221,101 )     (1,254,375 )       (830,065 )
Depreciation                              (206,231 )       (187,068 )       (190,523 )
Direct Sales and Freight                  (183,333 )        (86,737 )       (137,883 )
Royalties                                 (197,371 )       (229,352 )       (202,736 )
General and Administrative                (117,420 )       (188,251 )       (158,144 )
  Gross Profit - Zeolite             $     118,185     $    470,172     $     16,882

Company-wide
Gross Revenue                        $  13,118,090     $  9,073,324     $  4,103,340
Cost of Operations                     (11,443,892 )     (7,699,592 )     (3,734,294 )
Gross Profit (Loss)                      1,674,198        1,373,732          369,046
Other Operating Expenses                  (782,667 )       (950,163 )       (605,232 )
Net Interest                                 5,205            7,751           (5,605 )
Factoring Expense                         (154,206 )       (119,107 )        (90,124 )
Extinguishment of Payables                       -                -           37,072
Income Tax Benefit (Expense)              (105,610 )        493,000                -
  Net income (Loss)                  $     636,920     $    805,213     $   (294,843 )

Overview

Although we are expanding our operations in Mexico, as in prior years, we still remain dependent on our suppliers. We will remain an antimony producer for the future, although we anticipate greater precious metals and zeolite revenue. We are commencing production of our own raw materials from our mine, mill, and smelter in Mexico to ensure a steady flow of products for sale. Our mine at Los Juarez, our Puerto Blanco mill, and our smelter at Madero, Mexico, will be producing a significant portion of our raw materials commencing with 2013. Our production for 2012 is expected to be similar to 2011, but we expect to complete the installation of more crusher capacity, the flotation and ball mill, and more smelter furnaces during 2012. We therefore expect more production and sales in 2013 due to the availability of more raw materials. We also have plans to commence installation of a natural gas pipeline in 2012 to replace propane as the fuel used in our Mexico smelter. We expect the pipeline to cost approximately $1 million dollars, and that it will reduce our smelter fuel cost by approximately 75%. If the world economy improves, we expect to benefit from an increase in antimony prices. If the world economy does not improve, or if it worsens, we expect to see stagnant or decreasing commodity prices for antimony.

Our principal smelter and precious metals recovery operation remains in Montana, as is our company headquarters. With increased production, we expect to widen our base of customers.

Results of Operations

Comparison of Years ended December 31, 2011, 2010, and 2009. During the three year period ending December 31, 2011, the most significant event affecting our financial performance was the increase in the price of antimony. During the year ending December 31, 2011, the most significant event was the commencement of production at our Mexico operations. During the year ending December 31, 2010, we recorded an impairment loss of $199,302, which is included in other operating expenses in the above table. Going forward, the increased supply of raw material from Mexico, and the metal prices for both antimony and precious metals, will be the most significant factors influencing our operations. The following are highlights of the significant changes during the three year period:

? Our revenues from antimony increased in 2011 by $4,232,574 (68%) from 2010 primarily due to an increase in the price of antimony metal of approximately $4,135,000, which was offset by a decrease in the amount of antimony sold, of approximately $98,000. Revenues in 2010 were $3,647,399 (144%) greater than 2009 due to an increase in both the price of antimony metal of approximately $1,697,000, and the amount of antimony sold, approximately $1,950,000. Sales in 2009 were depressed due to the fact that the poor world economy caused our main supplier of antimony to reduce its production, and we did not have enough raw materials to operate at full capacity.

? Our cost of goods sold for antimony during 2011 and 2010 increased by $3,765,000 (65%) and $3,539,000 (159%), respectively. The increase in cost of goods sold in 2011 was primarily due to the increase in the cost of our raw materials, and the increase in 2010 was due to the increase in the price of metal and increased production. During both 2011 and 2010, costs of goods sold include production costs from Mexico operations. The cost of goods sold during 2011 was impacted by an increase in the cost of operating supplies, such as vehicle fuel, trucking, insurance, refractoring costs, repairs, steel, and propane.

? Our revenues from zeolite were up both in price and tons sold (approximately $880,000) in 2010 from 2009. This was primarily due to a contract for nuclear remediation with the Department of Energy. That contract was not ongoing in 2011, which was the primary cause for a decrease of 3,200 tons sold, approximately $500,000. Although tons sold for 2011 was less than 2010, there was an increase in the sales price per ton which accounted for an increase in revenue of approximately $130,000. The increase in the price for 2011 was mainly due to an additive for a customer, which also caused a similar increase in our cost of production for 2011.

? General and administrative costs, as reported in our statement of operations, include fees paid to directors through stock based compensation. General and administrative costs for 2011 include general and administrative costs related to commencement of production at our facilities in Mexico.

? The increase in professional fees for both 2011 and 2010 ($52,547 and $ 30,769, respectively) was primarily due to increased costs related to our audits and financial statement preparation.

? Factoring expense increased for each year in 2011and 2010 by $35,099 and $30,769, respectively, because of increased revenue and greater amounts of accounts receivable available for factoring.

? For the year ending December 31, 2010, we determined that it was likely that we would be profitable in the future, and that it was appropriate to record a tax benefit of $493,000 for the value of tax losses from prior years that could be used to reduce income tax in future periods. For the year ending 2011, this benefit was reduced by $105,610 for tax expenses due to taxable income in that year.

Subsidiaries

The Company has a 100% investment in two subsidiaries in Mexico, USAMSA and AM,
whose carrying value was assessed at December 31, 2011 for
impairment. Management's assessment of the subsidiaries' fair value was based on
their future benefit to us. During fiscal year 2010 USAMSA was forced to
relocate to a new mill site, causing an impairment of approximately $200,000.

Financial Condition and Liquidity
                                         2011            2010            2009
Current Assets                       $  2,816,981     $ 1,848,825     $   539,814
Current liabilities                    (1,595,433 )      (784,322 )      (848,443 )
  Net Working Capital                $  1,221,548     $ 1,064,503     $  (308,629 )

Cash provided (used) by operations   $    564,041     $   307,350     $  (358,187 )
Cash (used) by investing               (2,239,441 )      (965,919 )      (590,815 )
Cash provided (used) by financing:
  Principal paid on long-term debt       (124,722 )       (59,270 )       (56,669 )
  Sale of Stock                         1,242,780       1,003,229       1,135,576
  Other                                   113,908         (17,142 )        (3,140 )
   Net change in cash                $   (443,434 )   $   268,248     $   126,765

Our financial condition and liquidity, i.e., our net working capital, has improved each year for the three years ended December 31, 2011. This was due to an increase in our cash provided by operations and the sale of stock each year. We used most of our resources from operating cash flows and the sale of stock to complete our mine, mill, and smelter production facility in Mexico. Over the three year period, we raised approximately $3,381,000 from issuing restricted stock, and we used approximately $4,172,000 for capital improvements in Mexico ($3,488,000), Montana ($194,000), and at the Bear River Zeolite plant ($490,000). During the next year ending December 31, 2012, we expect to issue restricted stock to pay for approximately $5 million of capital improvements in 2012 and 2013, including final installation of the crusher, ball grinding, and flotation mill, four additional furnaces at the Madero, Mexico, smelter, and installation of a natural gas pipeline to the Madero smelter.

During the year ended December 31, 2010, the cash provided by operations was increased by the addition of a deferred tax asset for $493,000. In 2011, an increase in inventories due to raw materials purchased per supply agreements reduced cash flows from operations by $923,000, and in 2011 and 2010, increases in accounts receivable due to December sales reduced cash flows from operations by $546,000 and $583,000, respectively. An increase in accounts payable, not paid because of the increase in the amount of accounts receivable due at year end, increased our cash flow from operations by $585,000 for 2011. The current portion of our long term debt is serviceable from the cash generated by operations.

Our stockholders' equity section makes note that we have a liquidation preference of $5,689,780 as concerns our preferred stock. This consists of a liquidation payment of $5,225,360 due if we liquidate our company or sell substantially all our assets, and $464,420 of undeclared dividends. The Board of Directors' does not intend to declare dividends on preferred stock as due and payable at any time in the near future. We do not feel that the liquidation preference and undeclared dividends related to our preferred stock will be an impediment to raising capital in the future by issuing additional shares of common stock, and are not going to affect our liquidity.