United States Antimony provides updates on antimony procurements

Alaska: USAC has continued to expand its Company owned leasehold acreage position in the State of Alaska with approximately 23,800 acres within our control. The Company has two full-time geologists based in Fairbanks, several contracted entities, working on various projects there, and has contracted a geological firm to commence a geological assessment of the company’s Stibnite Creek mining claims. In June, the Company closed on an option to acquire the former producing Mohawk Mine, a very meaningful property located in Ester Dome that totals approximately 150 acres located just outside of Fairbanks. Our geologists were able to obtain soil geochemical data on this property enabling the targeting of in situ antimony. The Mohawk Mine is reported to be the second largest lode gold producer from high grade veins in the period 1916 – 1935. Stibnite is structurally controlled at Ester Dome and is often associated with the gold veins. Beginning in April, USAC filed for mining permits with eight specific entities in the Ester Dome and Stibnite Creek regions covering properties under lease. Agencies involved include the State ADF&G Habitat, ADEC Water, ADNR Mining and the Federal Army Corp of Engineers. Approval of these various permits is pending. Significantly, the Mohawk properties are patented fee simple claims; i.e., they are not State or Federal Lands. Therefore, permitting is much simpler and expeditious. It is important to note that the antimony ore we are beginning to mine dates as far back as the Alaskan Gold Rush, over 125 years ago. Subsequently, mapping and research has been completed by the U.S. Geological Service and the University of Alaska Fairbanks. Numerous historical mining journals have documented these findings. Unlike conventional open pit mining that often involves large-scale excavation, USAC’s approach is much different and focuses on recovering antimony from material left behind by earlier placer and hard rock mining operations, when antimony had no significant economic value. Australia: USAC has received 110 tons of antimony ore from a supplier located in Australia in two separate shipments. All of this material has been processed at our Madero Smelter. A third 55-ton shipment was retained by Chinese Custom Authorities for approximately 90 days when the ship transloaded and docked at a Chinese port. This transload shipment has since been returned to Australia and is in the process of being rerouted to the Company’s Madero Smelter located in Mexico, the original intended destination. The seller of this ore in Australia coordinates and oversees logistics in delivering the material to our designated port in Mexico. Trans shipping is traditionally defined as when cargo makes essentially a pit stop in a third country prior to its intended final destination. The Company has had difficulty processing the Australian material received to-date due to high levels of impurities, such as arsenic and iron. The USAC management team has attempted to resolve the problem, and has experimented with several different flux formulae, which involve additional costs. It is yet to be determined whether this source will become a continuing long-term supply for Madero due to these impurities.