UNITED STATES SECURITIES AND EXCHANGE
COMMISSION Washington, D.C. 20549  FORM
10-K  [X] Annual Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended February
29, 2008  Commission File Number:
000-30239  UNICO, INCORPORATED (Exact name of registrant as specified in
its charter)  Arizona

13-4171971(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification
No.)8880 Rio San Diego Drive, 8th
Floor, San Diego, California 92108
(Address of principal executive
offices)
              (Zip
code)(619) 209-6124
(Registrants telephone number,
including area code)  Securities registered under Section
12(b) of the Exchange Act:None
(Title of each class)
N/A
(Name of Exchange on which
registered)  Securities registered pursuant to Section
12(g) of the Exchange Act:  Common Stock, $0.001 par value (Title of Class)  Indicate by check mark if the registrant is
a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [   ]
  No [X]  Indicate by check mark if the registrant is
not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes [   ]
  No [X]  Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the past 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [ X ]   No [
  ]  Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-KB is not contained herein, and will not be
contained, to the best of registrants knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-KB. [X]  Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company.  See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.  Large
accelerated filer [  ] Accelerated filer
[  ] Non-accelerated
filer   [  ] (Do not check if a smaller reporting company) Smaller reporting
company [X]  Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes [   ]
  No [X]  State the aggregate market value of the
voting and non-voting common equity held by non-affiliates computed by reference
to the price at which the common equity was last sold, or the average bid and
asked price of such common equity as of the last business day of the
registrants most recently completed fiscal year.  $2,460,541, based on the
last sale price of $0.0005 as reported on the OTC bulletin board.  The Registrant had 4,940,363,072 shares of
common stock, $0.001 par value, outstanding as of May 08, 2008.  Transitional Small Business
Disclosure Format (Check One) Yes [
  ]   No [X]  1   TABLE OF CONTENTS PART I
PageITEM 1.
        BUSINESS
3ITEM 1A.      RISK
FACTORS
12ITEM 1B.      UNRESOLVED
STAFF COMMENTS
12ITEM 2.
        PROPERTIES
12ITEM 3.   
     LEGAL PROCEEDINGS
17ITEM 4.    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
17PART IIITEM 5.     
   MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
18ITEM 6.        
SELECTED FINANCIAL DATA
19ITEM 7.        
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
19ITEM 7A.      QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 8.
        FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA
23ITEM 9. 
       CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
23ITEM 9A(T).CONTROLS AND PROCEDURES
23ITEM 9B.      OTHER
INFORMATION
24PART IIIITEM 10.
      DIRECTORS EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE
24ITEM 11.
      EXECUTIVE COMPENSATION
26ITEM 12.
      SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
27ITEM 13.
      CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
28ITEM 14.       PRINCIPAL
ACCOUNTANT FEES AND SERVICES
30ITEM 15.      EXHIBITS,
FINANCIAL STATEMENT SCHEDULES
30   2   PART I  Forward Looking Statements  This document includes statements that may
constitute forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The Company
would like to caution certain readers regarding certain forward-looking
statements in this document and in all of its communications to shareholders and
others, on managements projections, estimates and all other communications.
 Statements that are based on managements projections, estimates and
assumptions are forward-looking statements.  The words believe, expect,
anticipate, intend and similar expressions generally identify forward-looking
statements. While the Company believes in the veracity of all statements made
herein, forward-looking statements are necessarily based upon a number of
estimates, and assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies and known and unknown risks. Many of the
uncertainties and contingencies can affect events and the Companys actual
results and could cause its actual results to differ materially from this
expressed in any forward-looking statements made by, or on behalf, of the
Company.  Possible Reverse Stock Split  On January 28, 2008 the stockholders of
Unico, Incorporated approved a proposal to amend the Companys Articles of
Incorporation to authorize the Board of Directors, in its discretion, to effect
a reverse stock split of the Companys common stock at a ratio of up to one for
five hundred during the six month period following the date of the Special
Meeting of Shareholders. The Board of Directors has not yet approved a reverse
stock split of the Companys common stock.  However, the Company believes
that a reverse split of the Companys common stock is in the Companys best
interest, as it will enable the Company to increase the number of authorized,
but unissued common shares, which can then be used to permit the conversion of
outstanding convertible debentures to shares of the Companys common stock, and
for raising additional needed capital.  It will also assist the Company in
increasing the trading price of the Companys common stock to a level more
acceptable to potential investors.  ITEM 1. DESCRIPTION OF BUSINESS  General  Unico, Incorporated (the Company, Unico
or UNCN) an Arizona corporation, was formed as an Arizona corporation on May
27, 1966. It was incorporated under the name of Red Rock Mining Co.,
Incorporated. It was later known as Industries International, Incorporated and
I.I. Incorporated before the name was eventually changed to Unico, Incorporated
in 1979.  On July 12, 2004, Unico filed an election
with the U.S. Securities and Exchange Commission to become a business
development company (BDC) pursuant to Section 54 of the Investment Company Act
of 1940.   On August 1, 2005, the Board of Directors unanimously
approved a proposal to withdraw the Companys election to be treated as a
business development company as soon as practicable so that Unico could begin
conducting business as an operating company rather than as a business
development company subject to the Investment Company Act.  On October 11,
2005, a Special Meeting of the Unico shareholders was held to consider and vote
upon a proposal to authorize the Companys Board of Directors to withdraw the
Companys election to be treated as a BDC and the proposal was approved.
 On October 12, 2005 a Notification of Withdrawal was filed with the
Securities and Exchange Commission so that Unico could begin conducting business
as an operating company rather than as a BDC subject to the Investment Company
Act.  The mining operations at the Deer Trail
Mine have been conducted through Unico's subsidiary, Deer Trail Mining Company,
LLC (Deer Trail Mining Company or DTMC) since soon after DTMC was formed in
late June, 2004. The mining operations at the Bromide Basin Mines have been
conducted through Unico's subsidiary, Bromide Basin Mining Company, LLC
(Bromide Basin Mining Company or "BBMC") since soon after BBMC was formed in
late June, 2004. Future mining operations at the Silver Bell Mine will be
conducted through Unico's subsidiary, Silver Bell Mining Company, Inc. ("SBMC").  Deer Trail Mining Company, LLC  On March 30, 1992, Unico, Incorporated
entered into a Mining Lease and Option to Purchase agreement with Deer Trail
Development Corporation, with headquarters in Dallas, Texas. Deer Trail
Development Corporation is now known as Crown Mines, L.L.C. The lease was to run
for a period of 10 years, and cover 28 patented claims, 5 patented mill sites
and 171 unpatented claims located approximately 5 miles South of Marysvale,
Utah. It includes mine workings known as the Deer Trail Mine, the PTH Tunnel and
the Carisa and Lucky Boy mines. There are no known, proven or probable reserves
on the property.  Effective December 1, 2001, a new lease
agreement was entered into between the parties (Deer Trail Lease) covering the
same property for a period of thirty (30) months. It was subsequently extended
through a series of amendments.  3    In July 2007, Deer Trail Mining Company completed the purchase of the claims
covered by the Deer Trail Lease.  A total of $4,000,000 was paid to
purchase the property over a period of approximately three years.  The
purchase of the claims also included the purchase of a fifty percent (50%)
interest in Water Right No. 63-37, said fifty percent (50%) portion including a
maximum flow of 0.125 cubic feet of water per second and a maximum annual
diversion of 90.5 acre feet of water from Three Mile Spring for year-round
mining purposes.  The purchase of the claims also included a fifty percent
(50%) interest in a contractual right to use water diverted under Water Right
No. 63-3043 as evidenced and described in the Agreement between Cottonwood
Irrigation Company and Deer Trail Development Corporation dated July 28, 1977.
 The fifty percent (50%) interest in the contractual water right allows
Deer Trail Mining Company to truck not more than 2,500 gallons of water per week
from the Cottonwood Creek to the Deer Trail Mine for mining activities during
the irrigation season (April 15 to October 15), and possibly more during the
remaining portion of each year.  Deer Trail Mining Company also obtained a
lease from Crown Mines, L.L.C. of the remaining fifty percent (50%) interest in
Water Right No. 63-37 and the remaining 50% interest in the contractual water
right (Water Right 63-3043.  The lease is for an initial term of 5 years
for no rent.  The lease may be terminated by Crown Mines, L.L.C. upon 12
months written notice if Crown Mines determines that the water rights covered
by the lease are necessary for the operation and development of any of Crown
Mines mining claims or for other permitted uses.  The lease may be
extended if Crown Mines determines that the water rights covered by the lease
are not required for the operation and development of any of Crown Mines mining
claims or for other permitted uses during the extension period, provided that
the parties can agree on other terms including a price or rent for the extended
term.  Crown Mines, L.L.C. retained a perpetual
royalty interest on minerals taken from the claims purchased by Deer Trail
Mining Company.  The perpetual royalty is three percent (3.0%) of net
smelter returns on minerals other than gold.  The royalty rate for gold is
three percent (3.0%) when the price of gold is less than or equal to $500 per
troy ounce, four percent (4.0%) when the price of gold is more than $500 and
less than or equal to $600 per troy ounce, and five percent (5.0%) when the
price of gold is greater than $600 per troy ounce.  Crown Mines, L.L.C.
also retained an undivided three percent (3.0%) interest in any oil and gas and
associated hydrocarbons produced from the claims.  Crown Mines, L.L.C. also retained an access
easement and a water line pipeline easement across the claims sold to Deer Trail
Mining Company.  Deer Trail Mining Company has agreed to
provide Crown Mines, L.L.C. with information obtained as a result of Deer Trail
Mining Companys exploration activities on the claims, and Deer Trail Mining
Company granted to Crown Mines, L.L.C. a right of first refusal to repurchase
the claims or any portion thereof.  In August 2006, Deer Trail Mining Company
entered into a Mining Lease with Joel Johnson covering the Clyde, Clyde
Intermediate and Crown Point claims.  These claims are located near the
Deer Trail Mine.  Deer Trail Mining Company has leased the claims for the
purpose of conducting mine exploration, evaluation, and possible mining
activities on the claims.  The Mining Lease is for two years, with options
to extend the lease for 50 additional one year periods.  Under the terms of
the Mining Lease, Deer Trail Mining Company paid initial down payments totaling
$31,000 with $4,000 due in the second year of the lease.  If Deer Trail
Mining Company elects to extend the lease, it must pay $3,000 for the first
extension year, and the annual lease extension payment increases ten percent
(10%) per year thereafter.  Additionally, Deer Trail Mining Company will
pay three percent (3%) of the gross sale proceeds from the sale of any ore
concentrates, or other mineral resources extracted from the claims.  In September 2006, Deer Trail Mining
Company entered into a Non-Patented Mining Claims Lease covering approximately
70 additional claims covering approximately 1,500 acres in Piute County Utah for
the purpose of exploration, evaluation and mining activities.  In
consideration for the rights under the agreement, the Deer Trail Mining Company
agreed to pay the lease holders $7,000 per year for each of the first three
years.  Deer Trail Mining Company has the right to extend the lease for 50
additional one year periods.  If extended by Deer Trail Mining Company, the
annual lease payment is $10,000 in each of years four and five, and thereafter
the annual lease payment increases by ten percent (10%) per year.  In
addition to the annual lease payments, Deer Trail Mining Company has also agreed
to pay an amount equal to three percent (3%) of the gross sales proceeds from
all ore, concentrates, and all other productions of mineral resources extracted
from the claims.  The agreement contains an option to purchase the claims
exercisable at $350,000 during the five first years of the lease.  The
exercise price increases $50,000 per year thereafter.  It may only be
exercised while the lease is effective.  Following the formation of the Deer Trail
Mining Company in June 2004, Unico assigned all of the various assets,
liabilities and operations associated with the Deer Trail Mine to Deer Trail
Mining Company which has assumed responsibility for making payments under the
Deer Trail Lease.  Since June 2004 Deer Trail Mining Company
has assumed operations, ownership and management control of the Deer Trail Mine.
 Deer Trail Mining Company presently has 18 full time employees, 1 part
time employee and 4 consultants.  The necessary permits to commence mining
activities at the Deer Trail Mine have been acquired, provided that the surface
disturbance from the mining  4   activities does
not exceed 10 acres for both mine and mill. In early 2005, Unico and Deer Trail
Mining Company, received approval of the company's Large-Scale Mining Permit for
the Deer Trail Mine in Marysvale, Utah. The State of Utah's Division of Oil, Gas
and Mining granted approval of the company's application to expand its existing
small mining project to a large mining operation, which is expected to
significantly increase the area of mining activity and the capacity of the
company's mill at the Deer Trail Mine. This Large-Scale permit takes the place
of the previous two Small-Scale permits described above.  In 2004, Unico
filed to obtain a construction permit with the State of Utah Department of
Environmental Quality (both the Utah Division of Air Quality and the Utah
Division of Water Quality) for the Deer Trail Mine tailings impoundment pond no.
2.  Prior to June 2004, Unico worked to reopen
the Deer Trail Mine.  Unico commenced limited mining activities in late
March 2001 on the Deer Trail Mine.  There were between 2 and 5 miners at
various times working full time in the Deer Trail Mine both on mine development
work and production work until approximately October 2003.  Their efforts
were concentrated in the 3400 Area of the mine, from which they removed
approximately 1,000 tons of ore per month.  The ore was stock-piled and
some of it has been crushed.  Some of the employees have worked on mine
maintenance.  Unico completed a mill on site at the Deer
Trail Mine. In November 2001, Unico began milling activities. Unico started
screening and crushing ore dumps on the upper Deer Trail Mine and moved the
materials to the ball mill.  Currently the Deer Trail Mining Company is
reconstructing the mill to enhance productivity and efficiency.   In
July 2006, Deer Trail Mining Company completed the upgrades to the screening
plant and began screening the ore dumps at the upper Deer Trail Mine. Once
screened, the material is moved to the mill facility and stockpiled for further
processing. The Company anticipates running this material through its mill once
reconstruction is complete.  On August 31, 2005, Deer Trail Mining
Company entered into a five-year purchase contract with PGM, LLC of Los Angeles
under which PGM will purchase precious metal bearing concentrates from the Deer
Trail processing center.  Most sales will not occur until the mill
processing center is complete at the Deer Trail Mine.  PGM has advanced
Deer Trail Mining Company $25,000 for an initial shipment of concentrates that
will be produced on a pilot plant basis.  The Company is currently in contact with
several smelters and a trading company to determine how best to sell the lead
concentrates, and zinc concentrates which will be produced by the Deer Trail
Mine mining and milling operations. The concentrates can be transported by
either rail or truck, and there are a variety of trucking companies that are
willing and able to transport concentrates to smelters or other places
designated by purchasers.  In September 2004, Deer Trail Mining
Company completed its first phase of exploratory drilling at the Deer Trail
Mine.  The Deer Trail Mining Company contracted Lang Exploratory Drilling
to complete the phase of drilling.  Lang completed a total of 3,653 feet of
reverse circulation drilling and finished 28 drill holes at specified targets
located on the Upper Deer Trail Mine.  741 samples were safeguarded by Lang
Exploratory Drilling during this phase and shipped to ALS Chemex at its Elko,
Nevada facility for independent lab verification and analysis.  The first phase of exploration drilling was
designed to identify near surface deposits, determine potential resources and
define limits of mineralization south of the main ore channel mined at the Upper
Deer Trail Mine. Historical data of the workings was sufficient to delineate the
grade of mineralization remaining in the stopes, but no data was available to
delineate the grade of mineralization outside the workings or how far that
mineralization flowed into the surrounding formations. The initial phase of
reverse circulation drilling serves as an adequate means to define the limits of
mineralization south of the main ore channel, which is situated in the lower
Toroweap formation, along the crest and down the northeast limb of the Deer
Trail anticline.  This phase of drilling was accomplished
with lower cost reverse circulation drill holes in order to establish the
presence of mineralization at the Upper Deer Trail area. Once the limits of
mineralization are established, work can begin to further define those zones by
diamond core drilling. This initial phase of drilling is considered merely a
starting point in generating data for pre-feasibility and feasibility studies
for the Deer Trail Mine operations.  The most upper holes RC-1 through RC-7 were
placed well above the elevation of the known workings of the No. 2 Tunnel and
slightly south of the northwesterly trending ore channel. Significant
mineralization was intercepted in holes RC-1 and RC-2, which were drilled in the
area closest to the main ore channel.  Drill holes RC-5, 6, 8, 9, 13 and 14 were
all drilled well south of the historically delineated mineralization, and on the
southern most up-side of a post mineral fault. It can be concluded that
mineralization intercepted in these holes is not directly related to the
mineralization of the main Upper Deer Trail ore channel.      5    Hole
Interval
From  to--
   (ft)
Gold  (grams/troy
oz.)
Silver  (grams/
Troy oz.)
Lead  (%)
Zinc (%)RC-1
190  230
       40
0.207
10.98
0.355
0.205RC-2
40 - 45     
        5
0.364
95.36
3.61
0.390Includes
175 - 180   
      5
0.369
45.71
2.87
1.41RC-10
65 - 95  
          30
0.363
16.48
0.086
0.022RC-11
60 - 70    
       10
1.36
52.25
0.758
0.191Includes
65 - 70  
           5
2.26
32.69
0.961
0.289RC-12
85 - 90    
         5
0.460
137.14
3.94
1.00RC-17
55 - 65    
       10
0.799
13.02
0.033
0.012RC-18
45 - 50   
          5
1.54
40.77
0.154
0.018RC-19
0  140
          140
0.527
14.65
0.116
0.107Includes
35 - 45  
          10
2.64
14.11
0.840
1.26Includes
35 - 40  
           5
4.66
21.15
1.30
2.14Includes
75 - 120 
          45
0.930
34.86
0.135
0.021Includes
95 - 105 
         10
3.17
88.63
0.303
0.019Includes
100  105
         5
4.78
151.02
0.682
0.008RC-20
95  100
           5
1.92
62.02
0.218
0.030RC-21
95 - 110   
       15
0.899
74.29
0.145
0.014RC-22
110 - 120    
    10
1.77
18.14
0.074
0.024Includes
115 - 120  
       5
3.25
27.52
0.079
0.014  In early 2005, Deer Trail Mining Company
contracted with Connors Drilling to commence an underground diamond core drill
program.  This 2nd phase of exploratory drilling inside the PTH Tunnel of
the Deer Trail Mine has been completed. The Phase II underground diamond core
drilling program was primarily designed to target known horizons of
mineralization and identify new mineralized horizons throughout the main ore
channel of the Deer Trail Mine. The Company completed 7,235 feet of diamond core
drilling and finished 13 underground drill holes.  According to preliminary
reports by the Companys geologist, all of the holes drilled were reported to
intersect mineralization within their designated targets. That report states
that a total of approximately 514 feet of mineralization was intersected and
consisted mostly of sulfide minerals (e.g. tetrahedrite, galena, pyrite,
chalcopyrite and sphalerite). Other intercepts were encountered through oxidized
mineral not reported in this total, as well as zones of subtly altered rock that
may contain high mineral values and offer significant potential. The company is
now working on final independent core logging and splitting verification. Once
complete, it plans to ship its core samples to an independent lab for
analysis.  In March 2006, Deer Trail Mining Company,
LLC entered into an agreement with Behre Dolbear and Company (USA), Inc. to
conduct geological services and consulting at Unicos Deer Trail Mine in
Marysvale, Utah. The focus of Behre Dolbears work is related to the underground
diamond core drilling program undertaken at the Deer Trail Mine in 2005. Behre
Dolbear is currently performing the geological core logging and spitting
verification on the samples and overseeing the shipment of those samples to ALS  6   Chemex for
analysis. Behre Dolbear has also been contracted to report on the mineralization
and provide additional technical advice on the project as desired by Deer Trail
Mining Company, LLC.  Behre Dolbear and Company (USA) has issued the following
information from the Interim Summary Report on their work completed thus far.
The report from Behre Dolbear states:  Unico, Incorporated drilled 7,235 feet of
BQ diameter core at various inclinations and azimuths from four drill stations
in the Patrick Thomas Henry (PTH) adit at the Deer Trail Mine from December 2004
to April 2005.  At that time, the core was not logged in detail and no
analyses were done.  Table 1 summarizes the drilling statistics.  The
station locations are defined based on the approximate footage from the PTH adit
portal.  Table 1 Unico Phase II Drill Holes  UDDH Drill
Hole #
Station
Location
Inclination
(in degrees)
Azimuth
Total Length
(Feet)1*
4400
-45
102
7402
4400
-40
102
6483*
4400
-42
92
7824*
4400
-42
150
5545*
4400
-55
102
6646
4400
-45
21
4097
4400
-58
298
7338
4400
-75
300
5659*
4700
-45
116
46010
4900
-75
0
46011*
3400
+45
258
45412*
3400
+45
162
35513*
3400
-65
125
420Total Footage



7,235  *Logged by Behre
Dolbear  Behre Dolbear & Company (USA), Inc.
(Behre Dolbear) contracted with Unico in March 2006 to geologically log the
core, select intervals for analyses and assays, supervise the sawing of the
selected intervals, submit those samples to a laboratory for analyses, opine on
the mineralization  observed, and provide technical advice to Unico.
 Between March 23, 2006 and October 6, 2006, Behre Dolbear logged in detail
4,429 feet of core from the eight holes indicated in Table1. A total of 550
samples totaling 611 feet of core containing trace to significant mineralization
from six of the holes (UDDH 1, 5, 9, 11, 12, and 13) has been selected, sawed,
submitted for analyses and assays, and the results received and evaluated.
 Analyses are pending from 228 samples from 385 feet of core in UDDH 3.
UDDH 4 has been logged, but sample intervals have not been selected.  ALS Chemex (Chemex) did the analyses and
assays at its laboratory in North Vancouver, British Columbia. Sample
preparation, analyses, and assays were done as requested by Behre Dolbear using
Chemexs standard protocols.  Gold was determined by fire assay with an
atomic absorption spectrometry (AAS) finish. All samples were also analyzed for
a 34-element suite of major and potentially significant trace elements using an
aqua regia digestion and an emission spectrographic scan.  Chemexs quality
control-quality assurance system complies with the requirements of the
international standards ISO 90001:2000 and ISO17025:1999.  The Pennsylvanian Callville Limestone is
the host of the mineralization in the holes logged by Behre Dolbear at the Deer
Trail Mine. Behre Dolbear has logged over 4,400 feet of core that traverses the
various lithologies of the upper +700 feet of that formation.  This
detailed logging has resulted in the recognition of ten previously unrecognized
informal members and/or other subdivisions that will enable future work to place
the mineralized horizons in the vicinity of the mine into stratigraphic
perspective.  The mineralization in the Callville
Limestone typically consists of stratabound narrow conformable bands of
semi-massive to massive sulfides separated by relatively long intervals of
weakly mineralized to barren rock.   Ore minerals include sphalerite,
galena, chalcopyrite, and tetrahedrite-tennantite.  Where the significantly
mineralized zones are thicker, the mineralized bands are closer together.   7   Based on the
analytical results received to date, Behre Dolbear combined 33 continuous assay
intervals from six holes into gross assay intervals ranging from 2.3 feet to 95
feet in length, uncorrected to true stratigraphic width.  Intervals within
the gross intervals were combined into 113 detailed intervals based on their
grades.  The best intervals based on thickness and
grades in multiple metals in the six holes from which analyses have been
received are listed in Table 2.  Table 2 shows that significant
mineralization in most of the holes is confined to relatively narrow intervals
ranging from 1.0 feet to 10.6 feet.  The thickest intercept with
significant mineralization is in UDDH 12 at 55.2 feet.  The intervals are
uncorrected for the true widths of the intercepts and will all be thinner than
stated, some possibly as much as fifty percent thinner.  Overall, silver
contributes the most value of the metals in Table 2 with zinc second and gold,
copper, and lead contributing subordinate values.  In some of the
intervals, the silver and gold are high but the base metals are low.
 Copper contributes more value than zinc in some of these intervals.
 Only one of the intervals (UDDH 11 at 105.0 to 110.6 feet) has high values
in all of the metals.  The highest gold and silver values are in UDDH 1
(5.273 ppm Au=0.167oz/t Au; 366.9 ppm Ag= 10.71 oz/t Ag), and UDDH 11 (4.564 ppm
Au= 0.133 oz/t Au; 585.1 ppm Ag= 17.08oz/t Ag).  Table 2 Best Interval from Each Analyzed
Hole  UDDH
Analyzed
From
Analyzed
To
Interval
(Feet)
Au
(ppm)
Ag
(ppm)
Cu
(%)
Pb
(%)
Zn
(%)1
365.5
370.4
4.9
5.723
366.9
0.01
0.16
0.42406.6
417.2
10.6
1.062
177.6
0.11
0.58
1.58456.0
462.5
6.5
0.350
156.4
0.24
1.38
2.085
322.0
327.0
5.0
0.870
164.1
0.25
2.09
1.27419.0
419.9
0.9
1.510
116.0
0.27
0.35
0.189
293.7
300.1
6.4
0.372
46.8
0.15
1.28
1.78434.6
435.6
1.0
0.310
102.0
0.39
5.20
6.5911
7.7
13.4
5.7
4.564
585.1
0.45
0.71
0.83105.0
110.6
5.6
1.600
550.6
0.96
2.0
2.4312
5.8
61.0
55.2
0.608
183.1
0.44
0.40
0.67220.0
221.9
1.9
2.170
128.0
0.01
0.01
3.3213
77.9
78.9
1.0
0.380
188.0
0.60
3.10
3.89  There is potential for an economic deposit
at the Deer Trail Mine if the metals occur together in significant grades and in
widths (generally greater than 10 feet) that are adequate for mining.
 Additional work is required to determine if those conditions exist.
 Before additional drilling is done, the results of the logging, analyses,
and observations by Behre Dolbear should be combined with the data and results
from previous work to develop a three-dimensional model of the deposit.
 Development of that model will require data from surface and underground
mapping, previous mining, and drilling from this and previous campaigns.
 All of this data on lithologies, structures, mineralization, and
alteration must be put together on maps and cross sections to build the model.
 Based on that model, the geometry (true widths and lateral extents) and
grades of the mineralization as currently known will be indicated and decisions
can be made if additional drilling has the potential to define economically
mineable mineralization.  It has not been determined if there is adequate
data available from previous work to construct a good model.  In November 2006, Deer Trail Mining Company
modified and expanded the agreement with Behre Dolbear and Company (USA), Inc.
for geological services at Unicos Deer
Trail Mine. The new agreement and work order addsseveral new areas of
consulting that will fall under Behre Dolbears scope of services on the Deer
Trail project.  Under these new revisions Behre Dolbear will assemble all
the available data relating to the locations, volumes, and grades of the
tailings that Deer Trail intends to process through the Project's mill. Based on
the information available, Behre Dolbear will estimate the volumes, tonnages,
and grades of those tailings and will, if needed, recommend a drilling program
to better define those tonnages and grades. Behre Dolbear will summarize the
results of the drill core logging completed to date and correlate those results
with pertinent assays of material from those holes to determine the factors from
the logging that relate to and facilitate the location of significant
mineralization. With Deer Trail's assistance, Behre Dolbear will assemble all
the available data (mineralization, rock types, structure, alteration, etc.)
from past drilling and mining, focusing on the 3100-3400 zone in the PTH adit,
i.e., the 3400 East Stope and 3400 East Stope Extension, which is the zone most  8   easily
accessible for near-term mining. Behre Dolbear will correlate data from the
extant logging effort and assays with the data from past drilling and mining to
locate and model, to the extent possible, potentially mineable mineralization in
the 3100-3400 zone. Behre Dolbear will determine if logging of the holes not yet
logged in the 4400 zone of the PTH adit is warranted, based upon the logging to
date of holes in that zone and any available data from past drilling and mining.
Behre Dolbear will assist Deer Trail with judgments and potential approaches to
exploitation of the Toroweap Sandstone in the 8600 area of the PTH adit. (It
appears that this area has the greatest potential for hosting high grade, large
tonnage mineralization at the Deer Trail Mine. That area is, however, the
portion of the existing workings that is least accessible for mining in the near
term.) The agreement calls for additional personnel and support for Behre
Dolbears work at the Deer Trail Mine.  Further, the modifications call for
reorganizing and redirecting site efforts that have heretofore focused
specifically on the logging, chemical analyses, and interpretation of the drill
cores.  Behre Dolbear will focus on those aspects of the expanded work
scope that will most quickly lead to the definition and potential reporting of
ore reserves in the form of mine tailings. They will also focus strongly on the
development of mineralization models that facilitate judgments regarding the
3100-3400 area of the PTH adit and the timing of work in the 8600 area.  On May 14, 2008, Behre Dolbear &
Company (USA), Inc. sent Unico, Inc. and Deer Trail Mining Company, LLC a
proposed final report and appendices on Project J06-034 regarding the
Relationship of Stratigraphy and Mineralization at the Lower (New) Deer Trail
Mine. Upon approval by Unico, Inc and DTMC, LLC, submission of the report and
appendices will complete the work relating to the core logging that Behre
Dolbear, Unico and Deer Trail Mining Company have agreed upon in the Proposal
and Consulting Agreement dated March 14, 2006 and the Work Change Order dated
November 7, 2006. The report entitled Evaluation of the Deer Trail Tailings
at the Deer Trail Mine, Piute County, Utahhas been removed from the revised
report and a Conclusions and Recommendations section will be added in the
Executive Summary which will be revised accordingly by Behre Dolbear. Executives
and Management of Unico and Deer Trail Mining Company are currently reviewing
the report and expect to announce details of the report once completed.  In September 2007, Deer Trail Mining
Company completed the construction of a new electrical substation that will
supply power to the reconstructed mill and processing facility. The substation
is designed to supply up to 2.5 megawatts of electrical power well beyond the
estimated 1.5 megawatts estimated to run the mill and processing facility.
Additional power is expected to be used for future mining activities and
expansion plans on site. The Company recently completed the construction of a
secondary substation to interface directly with the mill and processing facility
and it is now energized.  In February, 2008, the Deer Trail Mining
Company completed underground rehabilitation work up through to the 3400 level
of the PTH tunnel of the Deer Trail Mine. The work was contracted through Atlas
Mining Company to conduct initial underground maintenance including the
replacement of timber sets, clean up of the main haulage way and installation of
ground support where needed to the main PTH haulage tunnel.  In April, 2008, the Deer Trail Mining
Company completed reconstruction work of the floatation circuit at the mill and
processing facility at the Deer Trail Mine. Testing of the floatation circuit is
currently underway utilizing screened material from the stockpiles on site.  Silver Bell Mining Company, Inc.  Silver Bell Mining Company, Inc. was
incorporated in the State of Utah on April 26, 1993. It has acquired 26 patented
mining claims located in American Fork Canyon, Utah County, Utah, which is
organized into three separate parcels. The claims contain mining properties that
have not been mined for production since 1983. The properties were mined
primarily for silver, lead and zinc. There are no known, proven or probable
reserves on the property.  Silver Bell Mining Company conducted some
exploration work on the Silver Bell Mine through 2004. Silver Bell Mining
Company plans to conduct a feasibility study in order to analyze the claims
prior to commencing any future mining activities on the claims.  Silver
Bell Mining Company anticipates that any future ore mined from the Silver Bell
Mine will be transported to the Deer Trail Mine site where it can be further
processed.  Silver Bell Mining Company may also seek a joint venture mining
partner to jointly develop the Silver Bell Mine.  Silver Bell Mining
Company anticipates that any ore mined from the Silver Bell Mine will be
transported to the Deer Trail Mine site where it will be crushed and milled.  In August 2006, Silver Bell Mining Company
reached a preliminary agreement for a joint venture with the Polymet Company,
LLC for mining at the Silver Bell Mine and executed a letter of intent.  A
subsequent definitive agreement to finalize the details of the joint venture was
expected to be signed by August 31, 2006.  However, the parties failed to
reach a definitive agreement, and the parties are no longer involved in
negotiations.      9   Bromide Basin
Mining Company, LLC  On July 20, 2001, Unico entered into a
Mining Lease and Option to Purchase with Kaibab Industries, Inc., an Arizona
corporation. The parties then entered into a Revised Mining Lease and Option to
Purchase in April 2003 (the "Revised Kaibab Mining Lease").  Following the
formation of the Bromide Basin Mining Company in June 2004, Unico assigned all
of its assets, liabilities and operations associated with the Bromide Basin
Mines to Bromide Basin Mining Company. A Second Revised Mining Lease and Option
to Purchase was entered into with Bromide Basin Mining Company in May 2005 which
expired November 1, 2005.   Effective May 1, 2006, the parties entered
into a Third Revised Mining Lease and Option to Purchase (the Third Revised
Mining Lease).  At that time Unico paid approximately $63,592 to Kaibab
Indutries, Inc. for past due lease payments, taxes and BLM fees.  Under the
Third Revised Mining Lease, Kaibab Industries, Inc. leased to Bromide Basin
Mining Company certain mining claims located in the Henry Mountain Mining
District in Garfield County, Utah containing approximately 400 acres, which
included the Bromide Basin Mines. The Third Revised Mining Lease granted to
Bromide Basin Mining Company the option to purchase six (6) fully permitted
patented mining claims and twenty-one (21) located mining claims comprising in
all over 400 acres of Bromide Basin in the Henry Mountain Mining District
located in Garfield County, Utah. The option exercise price was $835,000 for all
specified mining claims, mill sites and dumps being leased.  The lease was
extended until October 31, 2007 at which time it expired.  The Company has
chosen not to extend it or pursue the purchase option.  The primary purpose of the agreement was to
allow Bromide Basin Mining Company access to the claims to conduct an extensive
preproduction feasibility study prior to any additional mining production and to
analyze the potential of the claims before exercising the purchase option from
Kaibab Industries.  The Company has concluded its evaluation of
the property, and has determined that the leased premises outlined under the
Kaibab Mining Lease is not feasible for large scale mining activities by Bromide
Basin Mining Company, and will not exercise its purchase option with Kaibab
Industries.  Plan of Operation  During the next 12 months, the Companys
plan of operation is to raise approximately $2,500,000 for investment into two
of its subsidiary companies: Deer Trail Mining Company and Silver Bell Mining
Company. The funds are intended for the following purposes during the next
twelve months:  § Complete analytical
certification by independent lab, ALS Chemex, and final reporting from
consulting firm, Behre Dolbear & Company (USA), on the logging and shipment
of core samples identified and taken from the completed 2nd phase of
exploratory drilling at the Deer Trail Mine; § Continue sampling and
analyzing mineralized rock samples, stockpiles and dump material from the Deer
Trail Mine to evaluate the most efficient means to conduct future mining and
milling activities; § Expand metallurgical
research department at the Deer Trail Mine and Mill Facility; § Purchase additional lab
equipment for metallurgical purposes; § Upgrade mine
infrastructure and begin underground mining activities including maintenance and
rehabilitation work at the Deer Trail Mine; § Continue to upgrade and
complete the re-construction project on the existing mill at the Deer Trail
Mine; § Upgrade the crushing
facility at the upper Deer Trail Mine and continue screening the ore dumps; § Begin milling and
processing activities at the Deer Trail Mill and Processing Facility; § Acquire new mining
equipment to improve operations at the Deer Trail Mine; § Conduct additional
survey and mapping work on the Clyde and Crown Point mining claims including
improvements to the property and potentially underground and surface exploratory
drilling on the claims; and § Commence a feasibility
study on the potential of the mining claims at the Silver Bell Mine beginning in
the Summer of 2008.  Accomplishing the 12-month plan of
operations is dependent on: (a) the Company raising approximately $2,500,000 in
equity and/or debt financing during the next 12 months to be used for the
Companys operations, of which approximately $1,000,000 is needed in the next
120 days.  Smelting and Refining  All of the smelting and refining of ore
will be handled by other companies. Smelters capable of handling the Deer Trail
concentrates include the Cominco Lead and Zinc smelters in Trail, British
Columbia, Canada, and the Grupo Mexico (formerly Asarco) smelter in Torreon,
Mexico. Occasionally, high grade copper-silver concentrates may be sent to the
Noranda smelter in Belledune, New Brunswick, Canada.   10   Dependence on
Metal Prices  Unico's mining activities will be largely
dependent on metal prices. The prices may fluctuate on the world commodity
markets and will be beyond the influence of Unico. A substantial reduction in
the price of metals might impede Unico's ability to economically mine or to
raise additional capital. Similarly, recent increases in metal prices have been
beneficial to mining companies, and may increase Unico's ability to acquire new
capital.  Competition  Unico competes with many mining companies
in the U.S. and throughout the world. The majority of Unico's competitors are
much larger and better financed than Unico. Some of Unico's competitors have
closed mining operations in past years due to low metal prices. Some mining
operations have been consolidated through mergers or other acquisitions. Recent
increases in metal prices have helped mining companies in expanding operations
and in their efforts to acquire new capital.  Employees  During the fiscal year ended February 29,
2008 the Company and its subsidiaries had a total of 21 employees. Through its
subsidiaries, the Company had 18 full time employees, 1 part time employee and 4
consultants.  The full time employees include a general manager, senior
engineer/mine manager, metalurgist and geologist. Unico believes the number of
employees may increase to approximately 30 within the next twelve months. In the
event the mining operations are successful, additional employees may be added in
the future.  During the fiscal year ended February 29,
2008, the Company ended its agreement with Javelin Advisory Group to provide
administrative support for a monthly fee of $10,000 and added a full time
CFO.  Governmental Regulation  Mining and/or processing activities are
subject to numerous permitting and environmental laws and regulations
administered by active federal, state, and local authorities, particularly the
Utah Division of Oil, Gas and Mining. Although the permits necessary for mining
operations on the patented and unpatented Deer Trail Mine claims and on the
patented Silver Bell Mine claims have already been obtained, Unico may be
required to expand such permitting in order to fully develop the properties. In
order to obtain expanded permits, it may be necessary to gather and analyze
baseline data, complete environmental assessments or environmental impact
statements with appropriate steps to mitigate potential adverse impacts, and
modify the proposed plans in order to accommodate environmental impacts, all of
which may take an indeterminate amount of time to complete.  The mining operations are regulated under
the jurisdiction of the Mine Safety and Health Administration or "MSHA" to some
degree to insure safe operations. Without proper training of personnel and
compliance to all MSHA rules, the mine could be subject to heavy fines and
closure. Unico strives to comply with MSHA regulations and maintain a good
working relationship with MSHA. The mining operations are subject to periodic
inspections by MSHA which, depending on the outcome of an inspection, could
curtail production until any violations have been cured.  During approximately the last two years
Unico has received some minor citations from MSHA and fines have been assessed.
Unico is current on its payment obligations with respect to outstanding fines.  Cost and Effect of Compliance with
Environmental Laws  Environmental regulations and guidelines
have been established by state and federal agencies to insure that the
environment is not permanently adversely impacted. Deer Trail Mining Company
presently has $215,799 in reclamation bonds with the U.S. Forest Service and the
Utah Division of Oil, Gas and Mining. As Unico expands its operations it will
become necessary to comply with further regulations for larger operations and
more bonding will be required from time to time. Permitting will be an ongoing
function of Unico's operations.  Compliance with the Sarbanes-Oxley Act of 2002  On July 30, 2002, President Bush signed
into law the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"). The
Sarbanes-Oxley Act imposes a wide variety of new regulatory requirements on
publicly held companies and their insiders.  Many of these requirements
will affect us.  For example:     11   - Our chief executive
officer and chief financial officer must now certify the accuracy of the
financial statements contained in our periodic reports; - Our periodic reports
must disclose our conclusions about the effectiveness of our controls and
procedures; - Our periodic reports
must disclose whether there were significant changes in our internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses; and - We may not make any
loan to any director or executive officer and we may not materially modify any
existing loans.  The Sarbanes-Oxley Act has required us to
review our current policies and procedures to determine whether we comply with
the Sarbanes-Oxley Act and the new regulations promulgated thereunder.  We
will continue to monitor our compliance with all future regulations that are
adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure
that we are in compliance therewith.  Code of Ethics and Audit Committee Charter  The Board of Directors of the Company
adopted a Code of Ethics and an Audit Committee Charter.  The Code of Ethics applies to our principal
executive officers, principal financial officer, principal accounting officer or
controller, or persons performing similar functions. The code of ethics is
designed to deter wrongdoing and to promote:  · Honest and ethical
conduct, including the ethical handling of actual or apparent conflicts of
interest between personal and professional relationships; · Full, fair, accurate,
timely and understandable disclosure in reports and documents that the Company
files with, or submits to, the Securities and Exchange Commission ("SEC") and in
other public communications made by the Company; · Compliance with
applicable governmental laws, rules and regulations; · The prompt internal
reporting of violations of the Code; and · Accountability for
adherence to the Code.  Unicos code of ethics was filed as an
exhibit to Form 10-KSB for the year ended February 28, 2006.  The primary responsibility of the Audit
Committee is to oversee the Company's financial reporting process on behalf of
the Company's Board of Directors and report the result of their activities to
the Board.  Such responsibilities shall exclude but shall not be limited
to, the selection, and if necessary the replacement of the Company's independent
auditors, review and discuss with such independent auditors and the Company's
internal audit department  (i) the overall scope and plans for the audit,
(ii) the adequacy and effectiveness of the accounting and financial controls,
including the Company's system to monitor and manage business risks, and legal
and ethical programs, and (iii) the results of the annual audit, including the
financial statements to be included  in  the  Company's
 annual  report  on Form 10-KSB. Uincos audit committee charter
was incorporated by reference from the Companys Annual Report on Form 10-KSB
for the Year Ended February 28, 2005 filed on June 20, 2005.  ITEM 1A. RISK FACTORS  Smaller reporting companies are not required to provide
the information specified by this item.  ITEM 1B. UNRESOLVED STAFF COMMENTS  Not applicable.  ITEM 2. DESCRIPTION OF PROPERTY  Deer Trail Lease  On March 30, 1992, Deer Trail Mining
Company, LLC entered into a Mining Lease and Option to Purchase agreement with
Deer Trail Development Corporation, with headquarters in Dallas, Texas. Deer
Trail Development Corporation is now known as Crown Mines, L.L.C. The lease was
to run for a period of 10 years, and cover 28 patented claims, 5 patented mill
sites and 171 unpatented claims located approximately 5 miles South of
Marysvale, Utah. It included mine workings known as the Deer Trail Mine, the PTH
Tunnel and the Carisa and Lucky Boy mines.  The lease was extended several
times prior to the Companys purchase of the claims in July 2007.    12   In July 2007,
Deer Trail Mining Company completed the purchase of the claims covered by the
Deer Trail Lease.  A total of $4,000,000 was paid to purchase the property
over a period of approximately three years.  The purchase of the claims
also included the purchase of a fifty percent (50%) interest in Water Right No.
63-37, said fifty percent (50%) portion including a maximum flow of 0.125 cubic
feet of water per second and a maximum annual diversion of 90.5 acre feet of
water from Three Mile Spring for year-round mining purposes.  The purchase
of the claims also included a fifty percent (50%) interest in a contractual
right to use water diverted under Water Right No. 63-3043 as evidenced and
described in the Agreement between Cottonwood Irrigation Company and Deer Trail
Development Corporation dated July 28, 1977.  The fifty percent (50%)
interest in the contractual water right allows Deer Trail Mining Company to
truck not more than 2,500 gallons of water per week from the Cottonwood Creek to
the Deer Trail Mine for mining activities during the irrigation season (April 15
to October 15), and possibly more during the remaining portion of each year.  Deer Trail Mining Company also obtained a
lease from Crown Mines, L.L.C. of the remaining fifty percent (50%) interest in
Water Right No. 63-37 and the remaining 50% interest in the contractual water
right (Water Right 63-3043.  The lease is for an initial term of 5 years
for no rent.  The lease may be terminated by Crown Mines, L.L.C. upon 12
months written notice if Crown Mines determines that the water rights covered
by the lease are necessary for the operation and development of any of Crown
Mines mining claims or for other permitted uses.  The lease may be
extended if Crown Mines determines that the water rights covered by the lease
are not required for the operation and development of any of Crown Mines mining
claims or for other permitted uses during the extension period, provided that
the parties can agree on other terms including a price or rent for the extended
term.  Crown Mines, L.L.C. retained a perpetual
royalty interest on minerals taken from the claims purchased by Deer Trail
Mining Company.  The perpetual royalty is three percent (3.0%) of net
smelter returns on minerals other than gold.  The royalty rate for gold is
three percent (3.0%) when the price of gold is less than or equal to $500 per
troy ounce, four percent (4.0%) when the price of gold is more than $500 and
less than or equal to $600 per troy ounce, and five percent (5.0%) when the
price of gold is greater than $600 per troy ounce.  Crown Mines, L.L.C.
also retained an undivided three percent (3.0%) interest in any oil and gas and
associated hydrocarbons produced from the claims.  Crown Mines, L.L.C. also retained an access
easement and a water line pipeline easement across the claims sold to Deer Trail
Mining Company.  Deer Trail Mining Company has agreed to
provide Crown Mines, L.L.C. with information obtained as a result of Deer Trail
Mining Companys exploration activities on the claims, and Deer Trail Mining
Company granted to Crown Mines, L.L.C. a right of first refusal to repurchase
the claims or any portion thereof.  In August 2006, Deer Trail Mining Company
entered into a Mining Lease with Joel Johnson covering the Clyde, Clyde
Intermediate and Crown Point claims.  These claims are located near the
Deer Trail Mine.  Deer Trail Mining Company has leased the claims for the
purpose of conducting mine exploration, evaluation, and possible mining
activities on the claims.  The Mining Lease is for two years, with options
to extend the lease for 50 additional one year periods.  Under the terms of
the Mining Lease, Deer Trail Mining Company paid initial down payments totaling
$31,000 with $4,000 due in the second year of the lease.  If Deer Trail
Mining Company elects to extend the lease, it must pay $3,000 for the first
extension year, and the annual lease extension payment increases ten percent
(10%) per year thereafter.  Additionally, Deer Trail Mining Company will
pay three percent (3%) of the gross sale proceeds from the sale of any ore
concentrates, or other mineral resources extracted from the claims.  In September 2006, Deer Trail Mining
Company entered into a Non-Patented Mining Claims Lease covering approximately
70 additional claims covering approximately 1,500 acres in Piute County Utah for
the purpose of exploration, evaluation and mining activities.  In
consideration for the rights under the agreement, the Deer Trail Mining Company
agreed to pay the lease holders $7,000 per year for each of the first three
years.  Deer Trail Mining Company has the right to extend the lease for 50
additional one year periods.  If extended by Deer Trail Mining Company, the
annual lease payment is $10,000 in each of years four and five, and thereafter
the annual lease payment increases by ten percent (10%) per year.  In
addition to the annual lease payments, Deer Trail Mining Company has also agreed
to pay an amount equal to three percent (3%) of the gross sales proceeds from
all ore, concentrates, and all other productions of mineral resources extracted
from the claims.  The agreement contains an option to purchase the claims
exercisable at $350,000 during the five first years of the lease.  The
exercise price increases $50,000 per year thereafter.  It may only be
exercised while the lease is effective.  The Deer Trail claims are located in the
Tushar Mountains of East Central, Utah in the Mount Baldy and Ohio Mining
districts. They are located on Deer Trail Mountain, approximately 5 miles South
of Marysvale, Utah and are accessible by a gravel county road which is in good
condition. There are no known, proven or probable reserves on the property.  The Deer Trail ore body was first
discovered by deer hunters in 1878. The ore body originally cropped out at the
surface. It is estimated that between 1878 and 1917, about 10,000 tons of ore
were mined. A small mill was installed in 1918, and between 1918 and 1923 the
mine produced about 138,000 tons of predominately oxidized ore averaging 1.38
opt gold, 11.49 opt silver and 3.26% lead. Zinc and copper were not recovered.
In 1923, mining was suspended when the workings encountered a fault that cut off
the ore,  13   and for more
than 20 years production was limited to drawing stopes and removing pillars. In
1945, the PTH tunnel was started to explore for the faulted extension of the
Deer Trail ore body. The 3,400 ore body was encountered unexpectedly by this
tunnel and a total of 5,000 tons of ore averaging 2.84% lead, 0.76% copper,
6.26% zinc, 15.17 opt silver and 0.19 opt gold were shipped. By 1964, the PTH
tunnel had intersected the offset part of the Deer Trail ore body. From 1964
until 1981 this segment of the ore body produced over 100,000 tons of unoxidized
sulfide ore averaging 5% lead, 0.6% copper, 12% zinc, 15 opt silver, and 0.10
opt gold. The present working face is still in ore.  The PTH Tunnel penetrates more than 10,000 feet with a
developed network of tunnels, shafts and raises at the 3,400 foot area and at
the 8,000 foot area and was mined extensively for gold and silver for about 20
years. The timbered and ventilated tunnel includes more than two miles of track
for ore cars accessed through a covered entrance structure.  The mine facilities also include ore cars,
battery operated engines, an engine storage and charging house, an electric
power substation, a miner's locker room, a compressor building, a 1,000 gallon
underground gasoline storage tank with gas pump, two front end loaders, three
dump trucks and a general office, two fully operational labs and a core sampling
facility. Deer Trail Mining Company believes water is accessible to the site.  The Deer Trail mining property was
developed by the Deer Trail Development Corporation, now known as Crown Mines,
LLC, located in Dallas, Texas. The property has been leased out several times
since production ceased in 1981 and is presently owned by Deer Trail Mining
Company, LLC. There has been little production since then. Several major mining
companies have explored the property. These include Noranda, Phelps Dodge and
Goldfields. One smaller company drilled and analyzed the mill tailings from the
upper Deer Trail Mine area in 1990. The results of the drilling and other tests
were not conclusive, and at present there are no known proven or probable
reserves on the claims.  Unico leased the property effective June 1,
1992. Unico has produced a few small lots of ore from the stopes in the 8600
area of the PTH tunnel for testing and evaluation purposes, and has developed
several excellent targets within those workings. In April 2001, Unico began
limited mining operations which were concentrated in the 3400 area of the mine
until underground mining operations temporarily stopped in October 2003. Unico
transferred all rights and obligations to the Deer Trail Mining Company in June
2004. Deer Trail Mining Company purchased the claims in July 2007, and is the
current owner and operator of the Deer Trail Mine. Deer Trail Mining Company
resumed underground mining operations at the Deer Trail Mine in late 2004.
 Underground mine operations have focused on infrastructure improvements
during this past fiscal year along with continuing the exploration, testing and
development of mineable reserves.  Deer Trail Mine Geological Information  The Deer Trail mine workings expose
westerly dipping sedimentary rocks of three units: the Toroweap and Queantoweap
Formations and the Callville Limestone. The Deer Trail ore body is in the lower
part of the Toroweap Formation and consists of a nearly continuous group of
semiconcordant replacement bodies flanking a central vein. About half of this
ore body is exposed in the Old Deer Trail mine workings and is oxidized; the
other half is located in the 8600 area workings and consists of unoxidized
sulphide ore. The Queantoweap Formation, which underlies the Toroweap, is a
quartzite and hosts no known mantos. The underlying Callville Limestone
contained the 3400 ore body.  The Toroweap Formation exposed in the 8600
area consists of a wide range of interbedded lithologies, including quartzite,
limestone, dolomite, shale, and chert, which form 50 or more recognizable units
ranging in thickness from a inch to several feet. In contrast, the underlying
Queantoweap Sandstone consists of a fairly uniform medium-grained, well-sorted
massive quartzite.  The Calville Limestone in the Deer Trail
mine lacks marker beds, and lithologic facies change rapidly. The rocks are cut
by several faults of unknown displacement. The marked lateral variations in
lithology have made it possible to identify only seven correatable stratigraphic
assemblages. The upper 240 feet of the Callville Limestone in the 3400 area
consists dominantly of mudstones containing quartz silt, evaporite nodules, and
sponge spicules. Below 240 feet, dolomite containing microfossils and peloids is
abundant and evaporites are absent. In the 8600 area, the Callville has been
observed in drill core and there it contains thick beds of course-grained
anhydrite.  The Toroweap Formation in the mine area
strikes generally north-south and dips 201 W. The Deer Trail ore body rakes
across this inclination with a bearing of N 701 W, so the average plunge of the
ore zone into Deer Trail Mountain is about 181.  The mantos in the Old Deer Trail mine
workings closely followed the axis of the Deer Trail anticline, a relationship
that was used to guide development. In the 8600 area, however, the mantos and
the anticline axis diverge and the deepest workings are about 1500 feet apart.   14   The Deer Trail
ore body consists of a semicontinuous group of narrow, elongate strata-bound
replacement bodies developed adjacent to a central vein. The ore body has a
sinuous ribbon like shape in plain view and has been mined for a length of
approximately 5,525 feet over a width averaging 32 to 38 feet and a height
averaging about 15 to 30 feet.  A set of cross faults that trends
east-northeast and dip steeply to the north are exposed in the mine workings in
the 8600 area. These have an aggregate stratigraphic throw of about 150 feet,
down to the north. One of these faults is the 18 Drift fault or 18 North fault.
These faults are now occupied by quartz veins as much as 15 feet thick that
contain substantial quantities of lead, zinc, arsenic, silver, gold, copper and
molybdennum. The 18 north fault consists of quartz with good values in gold,
silver and copper with very little other metals which could possibly be marketed
to smelters as a flux.  Deer Trail Mine Workings  The mine workings at the Deer Trail consist
of the upper Old Deer Trail mine workings and the PTH tunnel mine workings. The
Old Deer Trail mine consists of three levels, approximately 100 vertical feet
apart. The first level was first accessed from the surface through the discovery
shaft of 1878, with several adits interconnecting from the surface. The second
level or the No. 2 Tunnel level is accessed through one known tunnel and
consists of several large stopes interconnected with a series of drifts, winzes,
and raises. The third level or the No. 3 Tunnel level was used as a haulage
tunnel and was the main level of the Old Deer Trail mine. It consists of drifts
and raises all accessed by 18" narrow gauge track. The present workings are only
partially accessible. Many drifts have caved. All three levels are
interconnected allowing for good ventilation.  The PTH Tunnel workings underlie the Old
Deer Trail workings by approximately 450 feet and accessed 4,000 feet to the
south. The PTH Tunnel was started in 1945 to intersect the faulted Deer Trail
ore body. It is a 5'x7' tunnel that extends over 10,000 feet into Deer Trail
Mountain. Almost all areas of these workings are accessed by 18" narrow gauge
track. The tunnel trends to the north-northwest paralleling the base of Deer
Trail Mountain. At approximately 3,400 feet the tunnel intersected unexpectedly
mineralization in the Callville Limestone. This mineralization was developed on
the PTH Tunnel level as well as two levels below 100 vertical feet apart. Bedded
mineralization associated with the Wet Fault was produced via a series of
drifts, winzes, stopes and raises. A ventilation/escape shaft was driven to the
surface in this area. The tunnel next encountered mineralization at
approximately 8,600 feet, where the tunnel encountered the continuation of the
Deer Trail ore body. Several thousand feet of drifts was driven to explore and
exploit the deposit. An internal shaft was driven 250 feet to gain access to the
shallowing dipping ore where three more levels were established. Again several
hundred feet of drifts, stopes, raises and winzes were driven to mine the ore
body.  Water was encountered in the 280 winze and
pumps were installed in order to continue mining. Mining was stopped in 1981 due
to lack of processing and smelting facilities. The present face in the 280 area
is still in ore. The width of the face was increasing as well as the value of
the ore. A raise to connect the PTH workings with the Old Deer Trail Mine was
started located approximately where the PTH Tunnel crossed the 18 North fault.
It is presently up 140 feet.  Deer Trail Mine Mineral Resources  The resources have been outlined above.
However, further efforts to increase the mineable resources of the mine are
being explored. Deer Trail Mining Company completed phase one which included a
reverse circulation exploratory drill program in the upper Deer Trail Mine area.
 Deer Trail Mining Company also completed a second phase of underground
diamond core drilling conducted in the PTH Tunnel of the Deer Trail Mine, which
began in first quarter of 2005 to attempt to prove up reserves.  Deer Trail
Mining Company is also evaluating ways to mine more efficiently in order to mine
lower grade ores economically. Deer Trail Mining Company is evaluating whether
cyanide may be used in processing its ore. Deer Trail Mining Company acquired
two heavy media separators. The heavy media separator is a method whereby low
grade material can be upgraded underground. Areas left undeveloped in the mine
due to the amount of waste rock between narrow mineralized beddings might
effectively be produced by using heavy media separator technology.  The Deer Trail deposit is similar to many
deposits in Utah, such as Tintic and Park City, where mine reserves were drilled
approximately two years ahead of production due to the nature of the deposits
and the costs involved in drilling out entire reserves before mining began. It
is planned that reserves in the Deer Trail will be established two to three
years ahead of production. Exploration drilling will be conducted in conjunction
with mine production. Several prospective targets will be drilled from
underground as the workings advance.  To date only two known mineralized horizons
have been exploited. Deer Trail Mining Company believes the underlying
formations contain very favorable horizons for mineralization, but they have yet
to be tested. Deer Trail Mining Company believes the potential is excellent that
more mineralization will be discovered.   15   Deer Trail Mining
Company's Purchase of 680 Acres Near the Deer Trail Mine  On August 28, 2000, Unico purchased
approximately 680 acres of raw ground located in Piute County, State of Utah for
$200,000.  This land is adjacent to the existing Deer Trail Mine property
owned by Unico which is currently operated by the Deer Trail Mining Company. The
property was purchased from Tech-Sym Corporation of Houston, Texas.  Deer Trail Mining Company purchased the
property for the purpose of establishing a mill site on the property and to use
as a place to store waste rock from mining operations, and for other general
mining and business purposes.  In June 2002, this property was encumbered
by a trust deed securing a loan in the amount of $200,000 which was used to
finance general operations of Deer Trail Mining Company. On June 25, 2004, the
balance and accrued interest related to this debt was repaid through the
issuance of common stock.  Silver Bell Mine  On December 6, 2000, Unico acquired all of
the issued and outstanding shares of stock of Silver Bell Mining Company,
Incorporated, a Utah corporation, in consideration for the issuance of 3,000,000
restricted shares of Unico common stock. In June 2002, all of the Silver Bell
Mining claims were encumbered by a trust deed securing a loan in the amount of
$350,000 which was used to finance general operations of Silver Bell Mining
Company, Incorporated. On June 25, 2004, the balance and accrued interest
related to this debt was repaid through the issuance of common stock.  Silver Bell Mining Company, Incorporated
was incorporated in the State of Utah on April 26, 1993. It has acquired 26
patented mining claims located in American Fork Canyon, Utah County, Utah, which
is organized into three separate parcels. The claims contain mining properties
which have not been mined for production since 1983. The properties were mined
primarily for silver, lead and zinc. There are no known, proven or probable
reserves on the property.  The Silver Bell deposit was first
discovered in 1871 by soldiers stationed at Fort Douglas in Salt Lake City.
Mining was confined to select high grade ores averaging 100 ounces per ton in
silver. The workings consisted of an adit and a winze and ore was lowered down
the mountain by means of a cable and rail system. The mine was enlarged to
accommodate larger equipment in 1980 and some ore was produced which averaged 22
ounces in silver per ton of ore. The deposit consists of a single fissure or
vein known as the Silver Bell fissure which averages six feet in width and dips
to the NW at 62 degrees. It has been exposed for over 300 feet in depth and over
1,200 feet of strike length. Associated with the fissure several mineralized
horizons (mantos) have been encountered. Recent independent sampling done by
Watts, Grifiths, and McQuat and others demonstrate that the mantos are far
richer than the vein mineralization with values as high as 120 ounces per ton
silver. The deposit contains both oxide and sulphide ore rich in silver, lead,
zinc and copper. The sulphide mineralization contains more values than the
oxides. The mineralized system is located within the Maxfield cambrian limestone
unit and extends down through the Ophir units into the Tintic Quartzite. There
is presently an estimated resources of over 100,000 tons.  Silver Bell Mining Company conducted some
exploration work on the Silver Bell Mine in Summer, 2003 through 2004.
 Silver Bell Mining Company plans to commence an exploration and resource
definition program at the Silver Bell Mine during Summer, 2006. Silver Bell
Mining Company may also seek a joint venture mining partner to jointly develop
the Silver Bell Mine. Silver Bell Mining Company anticipates that any ore mined
from the Silver Bell Mine will be transported to the Deer Trail Mine site where
it will be crushed and milled.  In August 2006, Silver Bell Mining Company
reached a preliminary agreement for a joint venture with the Polymet Company,
LLC for mining at the Silver Bell Mine and executed a letter of intent.  A
subsequent definitive agreement to finalize the details of the joint venture was
expected to be signed by August 31, 2006.  However, the parties failed to
reach a definitive agreement, and the parties are no longer involved in
negotiations.  Bromide Basin Mines  On July 20, 2001, Bromide Basin Mining
Company, LLC entered into a Mining Lease and Option to Purchase with Kaibab
Industries, Inc., an Arizona corporation, covering certain mining claims at the
Bromide Basin Mines.  The lease was renewed several times until it expired
on October 31, 2007.  The Company has decided not to renew the lease or
exercise its purchase option.  The primary purpose of the agreement was to
allow Bromide Basin Mining Company access to the claims to conduct an extensive
preproduction feasibility study prior to any additional mining production and to
analyze the potential of the claims before exercising its purchase option from
Kaibab Industries.  It has been determined that the mine is not suitable
for a large scale mining operation by the Company, and the Company will not
renew the lease or exercise its purchase option.   16   Purchase of Mining
Equipment  In April 2003, Unico purchased certain
mining equipment from Kaibab Industries, Inc. for $165,000. To pay for the
equipment, Unico executed a promissory note which Unico and Bromide Mining
Company, LLC have collectively assumed liability to make payments of $2,000 per
month, this promissory note was extended until July 1, 2005.  The
promissory note was paid in full in April 2006 when Unico paid approximately
$125,785 to Kaibab Industries, Inc.  All of this mining equipment was moved
to the Deer Trail mine where it is being used.  Principal Offices  Our principal offices are located at 8880
Rio San Diego Drive, 8th Floor, San Diego, California 92108. We lease
on a month-to-month basis at a rate of US $4,602 per month.  We believe our
office space is suitable for our needs for the foreseeable future.  ITEM 3. LEGAL PROCEEDINGS  During the fiscal year ended February 29,
2008, the Company settled six lawsuits filed in the Twelfth Circuit (State)
Court in Florida stemming from defaulted convertible debentures totaling
$1,025,000 and $36,406 of interest.  Unico agreed to settle all of the
actions by issuing a total of 3,926,315,790 shares of its common stock to the
plaintiffs  These shares were issued pursuant to Section 3(a)(10) of the
Securities Act of 1933, as amended, after a hearing with notice to, and an
opportunity to be heard from, interested parties, as to the fairness of each
transaction, by a state court in Florida which specifically determined, prior to
declaring that the transactions were exempt under Section 3(a)(10), that the
transactions were fair to the interested parties.  The Company scheduled a special meeting of
its shareholders on December 21, 2007 at which shareholders were to vote on a
proposal to amend the Companys articles of incorporation to authorize the
Companys board of directors, in its discretion, to effect a reverse stock split
of the Companys common stock at a ratio of up to one-for-five hundred during
the six month period following the date of a special meeting of shareholders.
 On December 17, 2007, plaintiff Legacy Trading Group (Legacy), a
California limited liability company, filed an action against Unico alleging
violation of Section 14(a) and (c) of the Securities Exchange Act of 1934 and
the rules promulgated thereunder, and Arizona Revised Statute § 19-705.
 The action was filed in the United States District Court, Southern
Division of California (Civil No. 07CV 2344-L (RBB)).  Legacy filed an ex
parte application for a Temporary Restraining Order (TRO), contending that
notice of the special meeting of Unicos shareholders and/or the related proxy
statement was not provided to all shareholders.  At a hearing held on
December 18, 2007, the Court granted the application for a TRO, and enjoined and
restrained Unico from holding the special meeting of the shareholders on
December 21, 2007 or at any other time until the preliminary injunction hearing
in this matter was heard.  The preliminary injunction hearing was held on
January 8, 2008.  Plaintiffs application for a preliminary injunction was
denied at the hearing on the grounds of being moot.  Unico believes notice
of the special meeting of Unicos shareholders and the related proxy statement
for the December 21, 2007 special meeting were sent to all shareholders entitled
to receive such pursuant to applicable federal proxy rules and the Arizona
Revised Statutes.  However, since the TRO prevented the Company from
holding the special meeting of shareholders on December 21, 2007, the Company
rescheduled the special meeting which was held on January 28, 2008 at 10:00 a.m.  On April 29, 2007, Bromide Basin Mining
Company, LLC was served with a lawsuit filed on April 10, 2008 by Kaibab
Industries, Inc. in Maricopa County, Arizona state court (No. CV2008-008121).
 The plaintiff alleges that Bromide Basin Mining Company, LLC owes $30,000
in rent for the months of May through October 2007, when the mining lease
expired.  The plaintiff also alleges that Bromide Basin Mining Company, LLC
has failed to vacate the premises and that it owes an additional $5,000 per
month as a holdover tenant commencing November 1, 2007 until it vacates the
premises.  The plaintiff has also asked for interest, attorneys fees and
court costs.  Bromide Basin Mining Company, LLC has vacated the
premises.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS  A special meeting of the shareholders of
Unico was held on January 28, 2008 to consider and vote upon a proposal to amend
Unicos Articles of Incorporation to authorize Unicos board of directors, in
its discretion, to effect a reverse stock split of Unicos common stock at a
ratio of up to 1 for 500 shares during the six month period following the date
of the special meeting of shareholders.  The proposal was approved by the
shareholders with 2,194,297,224 shares voting in favor of the proposal,
1,724,664,523 shares voting against, and 7,923,462 shares abstaining.  Although Unicos board of directors has not
yet approved a reverse stock split of the Companys common stock, the Company
believes that a reverse stock split is in the Companys best interests as it
will enable the Company to increase the number of authorized, but unissued
common shares, which can then be used to permit the conversion of outstanding
convertible debentures into shares of the Companys common stock, and for
raising additional needed capital.  It will also assist the Company to
increase the trading price of the Companys common stock to a level more
acceptable to potential investors.  17   PART II ITEM 5. MARKET FOR REGISTRANTS COMMON
EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES     Market Information  The Companys common stock is traded on the
OTCBB (Over-The-Counter Bulletin Board) under the symbol UCOI. The following
table sets forth the trading history of the common stock on the Bulletin Board
for each quarter during the last two fiscal years ended February 29, 2008, as
reported by Dow Jones Interactive and/or Pink Sheets, LLC. The quotations
reflect inter-dealer prices, without retail mark-up, markdown or commission and
may not represent actual transactions.   The quotations have been
adjusted to reflect the Companys 1 for 100 reverse stock split that occurred
August 11, 2006 as though the reverse stock split had occurred March 1,
2006.   Quarter Ending

Quarterly High

Quarterly Low5/31/2006
$
.45
$
.088/31/2006
$
.13
$
.04611/30/2006
$
.057
$
.00562/28/2007
$
.017
$
.00555/31/2007
$
.0093
$
.00218/31/2007
$
.0034
$
.001011/30/2007
$
.0021
$
.00062/29/2008
$
.0009
$
.0004   Holders of Record  As of May 15, 2008 there were approximately
624 holders of record of the Companys common stock.  The Company believes
it has many additional shareholders who hold shares through brokerage accounts
and/or in street name.  Dividends  We have not paid any dividends during the
last two fiscal years ended February 29, 2008 or since then. We currently intend
to retain any earnings to finance the development and expansion of our
operations and do not anticipate paying cash dividends or making any other
distributions on our shares of common stock in the foreseeable future. Our
future dividend policy will be determined by our board of directors on the basis
of various factors, including our results of operations, financial condition,
business opportunities and capital requirements.  Under Arizona state corporate law, no
dividends may be paid if, after giving effect to the dividends, either: (a)
Unico would not be able to pay its debts as they become due in the usual course
of business; or (b) Unico's total assets would be less than the sum of its total
liabilities plus, unless Unico's articles of incorporation provide otherwise,
the amount that would be needed, if Unico were to be dissolved at the time of
the distribution, to satisfy the preferential rights on dissolution of
shareholders whose preferential rights are superior to those receiving the
dividend.  Recent Sales of Unregistered
Securities  From March 1, 2007 through February 29,
2008 Unico issued convertible debentures (Debentures) aggregating
approximately $3,764,954 to Blue Marble, approximately $1,200,000 to Compass
Capital Corporation and approximately $500,000 to Moore Investment Holdings that
were unpaid, and of which $3,965,100 are in default.  Some of these
debentures, with the exception of those issued to Moore Investment Holdings,
along with other debentures issued before March 1, 2007 were assigned to Blue
Marble Investments, Outboard Investments, Umbrella Holdings and Yanzu, Inc.
 Because Unico, Incorporated failed to pay the Debentures when due, a total
of approximately six (6) lawsuits were filed by these Debenture holders against
Unico, Incorporated in the Twelfth Circuit (State) Court in Florida during the
fiscal year ended February 29, 2008.  The Debentures provided that the principal
amount and accrued interest were convertible, at the option of the holders of
the Debentures, into shares of Unicos common stock at a price per share equal
to 50% of the closing bid price of Unicos common stock as quoted on the OTC
Bulletin Board on the immediately preceding trading day prior to the notice of
conversion.   18   Unico agreed to
settle each action by issuing shares of its common stock to the plaintiffs using
a valuation of approximately 14% to 20% of the then existing bid price of Unico,
Incorporated common stock.  These shares were issued pursuant to Section
3(a)(10) of the Securities Act of 1933, as amended, after a hearing with notice
to, and an opportunity to be heard from, interested parties, as to the fairness
of each transaction, by a state court in Florida which specifically determined,
prior to declaring that the transactions were exempt under Section 3(a)(10),
that the transactions were fair to the interested parties.  From March 1, 2007 until February 29, 2008,
in connection with the exercise of conversion rights by the holders of the
Debentures and pursuant to the litigation settlements, Unico issued an aggregate
of 3,926,315,790 shares of its common stock.  Unico believes that there were no
underwriters involved in any of the stock issuances described above, and there
were no underwriting discounts or commissions paid.  The stock in each
transaction was issued pursuant to Section 3(a)(10) of the Securities Act of
1933 as securities issued in exchange for one or more bona fide outstanding
securities, claims or property interests . . . where the terms and conditions of
such issuance and exchange are approved, after a hearing upon the fairness of
such terms and conditions . . . .  All convertible debentures issued to
Compass Capital Corporation, Blue Marble and Reef Holdings that were unpaid as
of January 2008 were purchased by, and assigned to, Moore Investment Holdings
LLC.  During the fiscal year ended February 29,
2008, the Company issued a total of 8,627,463 shares of its common stock to Ray
C. Brown pursuant to convertible debentures in consideration of the conversion
of $16,566 in accrued interest and $7,079 in principal.  These shares were
issued without registration in reliance on Section 4(2) of the Securities Act of
1933 for transactions not involving any public offering, and the certificates
representing the shares were appropriately restricted.  No underwriters
were involved, and no underwriting discounts or commissions were paid.  For information concerning sales of shares
of Unico's Common Stock by Unico which were not registered under the Securities
Act of 1933 during the fiscal years ended February 28, 2006 and February 28,
2007 please refer to Unico's annual reports on Form 10-KSB for the fiscal years
ended February 28, 2005, and February 28, 2006, respectively, and to Unicos
quarterly reports on Form 10-QSB for the quarters ended May 31, 2005 and 2006,
August 31, 2005 and 2006 and November 30, 2005 and 2006.  ITEM 6. SELECTED FINANCIAL DATA  Not applicable.  ITEM 7. MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  The following information should be read in conjunction
with the consolidated financial statements and notes thereto appearing elsewhere
in this Form 10-K.  Plan of Operation  During the next 12 months, the Companys
plan of operation is to raise approximately $2,500,000 for investment into two
of its subsidiary companies: Deer Trail Mining Company and Silver Bell Mining
Company. The funds are intended for the following purposes during the next
twelve months:  § Complete analytical certification by
independent lab, ALS Chemex, and final reporting from consulting firm, Behre
Dolbear & Company (USA), on the logging and shipment of core samples
identified and taken from the completed 2nd phase of exploratory
drilling at the Deer Trail Mine; § Continue sampling and analyzing
mineralized rock samples, stockpiles and dump material from the Deer Trail Mine
to evaluate the most efficient means to conduct future mining and milling
activities; § Expand metallurgical research
department at the Deer Trail Mine and Mill Facility; § Purchase additional lab equipment for
metallurgical purposes; § Upgrade mine infrastructure and begin
underground mining activities including maintenance and rehabilitation work at
the Deer Trail Mine; § Continue to upgrade and complete the
re-construction project on the existing mill at the Deer Trail Mine; § Upgrade the crushing facility at the
upper Deer Trail Mine and continue screening the ore dumps; § Begin milling and processing
activities at the Deer Trail Mill and Processing Facility; § Acquire new mining equipment to
improve operations at the Deer Trail Mine; § Conduct additional survey and mapping
work on the Clyde and Crown Point mining claims including improvements to the
property and potentially underground and surface exploratory drilling on the
claims; and  19   § Commence a feasibility study on the potential of the mining claims
at the Silver Bell Mine beginning in the Summer of 2008.  Accomplishing the 12-month plan of
operations is dependent on: (a) the Company raising approximately $2,500,000 in
equity and/or debt financing during the next 12 months to be used for the
Companys operations, of which approximately $1,000,000 is needed in the next
120 days.  Subsequent to the fiscal year ending February 29, 2008, the
Company received $575,000 through the issuance of new convertible debentures to
Moore Investment Holdings, LLC.  The new debentures were issued with terms
of 180 days, bear interest at the rate of 8% per annum, and are convertible by
the holder into shares of the Companys common stock at a discount of 50% of the
closing bid price on the date of conversion.  The Company intends to raise
approximately an additional $1,925,000 during the fiscal year ending February
28, 2009 to fulfill the 12-month plan.  Liquidity and Capital Resources  The Companys financial statements present
an impairment in terms of liquidity. As of February 29, 2008 the Company had
$21,420 in current assets and the Companys total liabilities exceeded total
assets by approximately $8,653,503.  The Company has accumulated
$60,924,691 of net operating losses through February 29, 2008, which may be used
to reduce taxes in future years through 2027. The use of these losses to reduce
future income taxes will depend on the generation of sufficient taxable income
prior to the expiration of the net operating loss carry-forwards.  The
potential tax benefit of the net operating loss carry-forwards have been offset
by a valuation allowance of the same amount. Under continuing operations the
Company has not yet established revenues to cover its operating costs.
 Management believes that the Company will soon be able to generate
revenues sufficient to cover its operating costs.  In the event the Company
is unable to do so, and if suitable financing is unavailable, there is
substantial doubt about the Companys ability to continue as a going
concern.  The Companys stockholders deficit
increased $5,896,794 in the year ended February 29, 2008, from a deficit of
($2,756,709) as of February 28, 2007 to a deficit of ($8,653,503) as of February
29, 2008.  The Companys cash as of February 29, 2008
was negative, but as explained above, the Company has raised $575,000 through
the issuance of convertible debentures to sustain operations.  The Company
intends to raise an additional $2,000,000 during the current fiscal year.
 As explained above, the Company needs to raise approximately $2,000,000
following the filing of this report to be able to implement the Companys
12-month plan of operations.  No assurance can be given that the Company
will be able to raise the needed funds, or that such funds could be raised on
terms acceptable to the Company.  Most of the funds raised during the last
year by Unico have been raised through the issuance of debentures that permit
the debenture holder to convert the debentures into shares of the Companys
common stock at 50% of the then existing bid price.  The Company
anticipates that future funding may occur on terms involving a similar amount of
dilution, but no assurance can be given that adequate funding will be available
on such terms, if at all.  Results of Operations  Unico reported no revenues for the fiscal
year ended February 29, 2008.  Unico reported no revenues for the fiscal
year ended February 28, 2007.  Unico anticipates that it will begin to
generate revenues from mining operations in the fiscal year ended February 28,
2009.  Unico incurred total operating expenses of
$2,061,242 during the fiscal year ended February 29, 2008, an increase of
$264,128 from the total operating expenses of $1,797,114 incurred during the
fiscal year ended February 29, 2007.  The increase was primarily attributed
to an increase of $190,412 in drilling, exploration and maintenance expense.
 The majority of the increase in operating expenses was due to an increase
in Drilling and Exploration expenses associated with the rehabilitation of the
PTH tunnel at the Deer Trail mine.  During the fiscal year ended February 29,
2008, Unico incurred interest expense of $5,266,533, an increase of $2,413,158
over the $2,853,375 of interest expense incurred during the fiscal year ended
February 28, 2007. The Company attributes the increase in interest expense in
the later period, to increases in the amount of convertible debentures
outstanding in the later period.  Loss on settlement of debt was $7,877,820
in the fiscal year ended February 29, 2008, a decrease of $5,371,095 from the
$13,248,915 loss on settlement of debt incurred in the fiscal year ended
February 28, 2007.  Unico attributes the decrease in loss on settlement of
debt in the later period to the fact that fewer defaulted debentures were
settled in the later period through the issuance of shares of the Companys
common stock at substantial discounts through court ordered settlements.
 In January, 2008, Moore Investment Holdings, LLC purchased the Companys
outstanding debentures (most of which were in default) from other debenture
holders.   Although the Company has approximately $6,318,934 of
outstanding debentures as of February 29, 2008 (of which approximately
$4,819,080 were then in default), the Company does not anticipate that Moore
Investment Holdings, LLC will seek the issuance of shares through court ordered
settlements as prior debentures holders have done.  20   For the year
ended February 29, 2008 the Company had a net loss of $16,039,928, or
approximately ($0.005) per share, attributable to ongoing operations.  Of
this loss $13,144,353was attributable to interest expense and loss on settlement
of debt associated with derivative expenses from financing operations.  For
the year ended February 28, 2007, the Company incurred a loss of $18,333,266.
 The decrease in loss this year of $2,293,338 is primarily due to a
$5,371,095 decrease in loss on settlement of debt, partially offset by an
increase of $2,413,158in interest expense and an increase in operating expenses
of $264,128.  Defaults Upon Senior Securities.  As of February 29, 2008 the Company had
$6,318,934 of convertible debentures that were due and payable.  Of this
amount, $4,819,080 is in default and is due to the following:  Moore Investment Holdings, LLC $4,180,100 Joseph Lopez 114,466 Ray Brown 449,514 C. M. Anderson 75,000 Total in default $4,819,080  Of the remaining debentures that are
due and payable, $250,000 defaulted in March, $475,000 defaulted in April,
$199,854 defaulted in May and $575,000 will default in June if not paid.  All of the outstanding convertible
debentures that were due to Reef Holdings, Compass Capital Corporation, and Blue
Marble were assigned to Moore Investment Holdings, LLC in January 2008.
 Prior to the assignment to Moore Investment Holdings, LLC the holders of
the convertible debentures had assigned portions of the Debentures to Blue
Marble Investments, Outboard Investments, Umbrella Holdings and Yanzu, Inc.
 Because Unico, Incorporated failed to pay the Debentures when due, a total
of one hundred eight (108) lawsuits were filed in the fiscal year ended February
28, 2007 and six (6) lawsuits were filed in the fiscal year ended December 31,
2008, by these Debenture holders against Unico, Incorporated in the Twelfth
Circuit (State) Court in Florida.  The Debentures provided that the
principal amount and accrued interest were convertible, at the option of the
holders of the Debentures, into shares of Unicos common stock at a price per
share equal to 50% of the closing bid price of Unicos common stock as quoted on
the OTC Bulletin Board on the immediately preceding trading day prior to the
notice of conversion.  Unico agreed to settle each action by issuing shares
of its common stock to the plaintiffs using a valuation of approximately 14% to
20% of the then existing bid price of Unico, Incorporated common stock.
 These shares were issued pursuant to Section 3(a)(10) of the Securities
Act of 1933, as amended, after a hearing with notice to, and an opportunity to
be heard from, interested parties, as to the fairness of each transaction, by a
state court in Florida which specifically determined, prior to declaring that
the transactions were exempt under Section 3(a)(10), that the transactions were
fair to the interested parties.  From February 9, 2006 until February 28,
2007, in connection with the exercise of conversion rights by the holders of the
Debentures and pursuant to the litigation settlements, Unico issued an aggregate
of 995,835,541shares of its common stock. During the fiscal year ending
February 29, 2008 an additional 3,926,315,790 shares of common stock were issued
for a total of 4,922,151,331 shares of common stock pursuant to the litigation
settlements.  Unico does not presently anticipate issuing additional shares
through Section 3(a)(10) settlements.  RISK FACTORS  We are subject to various risks that may
materially harm our business, financial condition and results of operations.
 You should carefully consider the risks and uncertainties described below
and the other information in this filing before deciding to purchase our common
stock.  If any of these risks or uncertainties actually occurs, our
business, financial condition or operating results could be materially harmed.
 In that case, the trading price of our common stock could decline and you
could lose all or part of your investment.  We will need to raise additional capital
to finance operations  Past operations have relied on monies
generated from external financing to fund our operations.  However, we
anticipate that we will generate profits in the coming year so that we will not
need to rely entirely on external financing to raise additional capital to fund
our anticipated operating expenses and future expansion.  External
financing will be required for future expansion, however.  We cannot assure
you that financing whether from external sources or related parties will be
available if needed or on favorable terms.  The sale of our common stock to
raise capital may cause dilution to our existing shareholders. Our inability to
obtain adequate financing may result in the need to curtail business operations.
 Any of these events would be materially harmful to our business and may
result in a lower stock price.      21   There is
substantial doubt about our ability to continue as a going concern due to
recurring losses and working capital shortages, which means that we may not be
able to continue operations unless we obtain additional funding  The report of our independent accountants
on our February 29, 2008 financial statements included an explanatory paragraph
indicating that there is substantial doubt about our ability to continue as a
going concern due to recurring losses and working capital shortages.  Our
ability to continue as a going concern will be determined by our ability to
obtain additional funding.  Our financial statements do not include any
adjustments that might result from the outcome of this uncertainty.  We are not likely to succeed unless we
can overcome the many obstacles we face  As an investor, you should be aware of the
difficulties, delays and expenses we encounter, many of which are beyond our
control, including unanticipated market trends, employment costs, and
administrative expenses.  We cannot assure our investors that our proposed
business plans as described in this report will materialize or prove successful,
or that we will ever be able to finalize development of our products or services
or operate profitably.  If we cannot operate profitably, you could lose
your entire investment.  As a result of the nature of our business,
initially we expect to sustain substantial operating expenses without generating
significant revenues.  We could fail to retain or attract key
personnel  Our future success depends, in significant
part, on the continued services of Mark A. Lopez our Chief Executive.  We
cannot assure you that we would be able to find an appropriate replacement for
key personnel.  Any loss or interruption of our key personnel's services
could adversely affect our ability to develop our business plan.  We have
no employment agreements or life insurance on Mr. Lopez.  Our officers and directors have the
ability to exercise significant influence over matters submitted for stockholder
approval and their interests may differ from other stockholders  Our executive officers and directors have
the opportunity, whether acting alone or together, to have significant influence
in determining the outcome of any corporate transaction or other matter
submitted to our Board for approval, including appointing officers, which could
have a material impact on mergers, acquisitions, consolidations and the sale of
all or substantially all of our assets.  The interests of these board
members may differ from the interests of the other stockholders.  Our common stock may be affected by
limited trading volume and may fluctuate significantly  There has been a limited public market for
our common stock and there can be no assurance that an active trading market for
our common stock will develop.  As a result, this could adversely affect
our shareholders' ability to sell our common stock in short time periods, or
possibly at all.  Our common stock has experienced, and is likely to
experience in the future, significant price and volume fluctuations that could
adversely affect the market price of our common stock without regard to our
operating performance.  In addition, we believe that factors such as
quarterly fluctuations in our financial results and changes in the overall
economy or the condition of the financial markets could cause the price of our
common stock to fluctuate substantially. Substantial fluctuations in our stock
price could significantly reduce the price of our stock.  Our common stock is traded on the
"over-the-counter bulletin board," which may make it more difficult for
investors to resell their shares due to suitability requirements  Our common stock is currently traded on the
Over the Counter Bulletin Board (OTCBB) where we expect it to remain for the
foreseeable future. Broker-dealers often decline to trade in OTCBB stocks given
that the market for such securities is often limited, the stocks are more
volatile, and the risk to investors is greater.  These factors may reduce
the potential market for our common stock by reducing the number of potential
investors.  This may make it more difficult for investors in our common
stock to sell shares to third parties or to otherwise dispose of them.
 This could cause our stock price to decline.  Our common stock is subject to the
penny stock rules of the SEC and the trading market in our securities is
limited, which makes transactions in our stock cumbersome and may reduce the
value of an investment in our stock.  The Securities and Exchange Commission has
adopted Rule 15g-9 which establishes the definition of a penny stock, for the
purposes relevant to us, as any equity security that has a market price of less
than $5.00 per share or with an exercise price of less than $5.00 per share,
subject to certain exceptions.  Inasmuch as that the current bid and ask
price of common stock is less than $5.00 per share, our shares are classified as
penny stock under the rules of the SEC.  For any transaction involving a
penny stock, unless exempt, the rules require:   22    · That a broker or dealer
approve a persons account for transactions in penny stocks; and  · The broker or dealer
receives from the investor a written agreement to the transaction, setting forth
the identity and quantity of the penny stock to be purchased.  In order to approve a persons account for
transactions in penny stocks, the broker or dealer must:  · Obtain financial
information and investment experience objectives of the person; and  · Make a reasonable
determination that the transactions in penny stocks are suitable for that person
and the person has sufficient knowledge and experience in financial matters to
be capable of evaluating the risks of transactions in penny stocks.  The broker or dealer must also deliver,
prior to any transaction in a penny stock, a disclosure schedule prescribed by
the Commission relating to the penny stock market, which, in highlight form:  · Sets forth the basis on
which the broker or dealer made the suitability determination; and  · That the broker or
dealer received a signed, written agreement from the investor prior to the
transaction.  Generally, brokers may be less willing to
execute transactions in securities subject to the penny stock rules.
 This may make it more difficult for investors to dispose of our common
stock and cause a decline in the market value of our stock.  Disclosure also has to be made about the
risks of investing in penny stocks in both public offerings and in secondary
trading and about the commissions payable to both the broker-dealer and the
registered representative, current quotations for the securities and the rights
and remedies available to an investor in cases of fraud in penny stock
transactions.  Finally, monthly statements have to be sent disclosing
recent price information for the penny stock held in the account and information
on the limited market in penny stocks.  ITEM 8. FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA  See the financial statements annexed to this report.  ITEM 9. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE  During our two most recent fiscal years
ended February 29, 2008, or any later interim period, Unico has not had a
principal independent accountant or an independent accountant on whom the
principal independent accountant expressed reliance in its report, resign,
decline to stand for re-election, or be dismissed.  ITEM
9A(T). CONTROLS AND
PROCEDURES  Managements Report On Internal Control Over Financial
Reporting  Management is responsible for establishing
and maintaining adequate internal control over financial reporting as defined in
Rule 13a-15(f) under the Exchange Act. This rule defines internal control over
financial reporting as a process designed by, or under the supervision of, the
Companys Chief Executive Officer and Chief Financial Officer, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
U.S. GAAP. Our internal control over financial reporting includes those policies
and procedures that:  
Pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company;  
Provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with U.S. GAAP, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of
management and directors of the Company; and
  
Provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use
or disposition of the Companys assets that could have a material effect
on the financial statements.   23   Because of its
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. In addition, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.  With the participation of our Chief
Executive Officer, and our Chief Financial Officer, our management conducted an
evaluation of the effectiveness of our internal control over financial
reporting.  Based on this evaluation, our principal executive officer
and our principal financial officer concluded that, as of the end of the period
covered by this report, our disclosure controls and procedures were effective
and adequately designed to ensure that the information required to be disclosed
by us in the reports we submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the applicable
rules and forms and that such information was accumulated and communication to
our chief executive officer and chief financial officer, in a manner that
allowed for timely decisions regarding required disclosure.  During the last fiscal quarter ended
February 29, 2008, there has been no change in internal control over financial
reporting that has materially affected, or is reasonably likely to materially
affect our internal control over financial reporting.  Evaluation of Disclosure Controls and
Procedures.  Our Chief Executive Officer, and our Chief Financial
Officer, after evaluating the effectiveness of the Companys disclosure
controls and procedures (as defined in the Securities Exchange Act of 1934
(Exchange Act) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered
by this annual  report, have concluded that our disclosure controls
and procedures are effective based on their evaluation of these controls and
procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15.  Changes in Internal Control Over
Financial Reporting.  There were no changes in our internal
control over financial reporting identified in connection with the evaluation
required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred
during our last fiscal quarter that have materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.  Section 404
Assessment.  Section 404 of the Sarbanes-Oxley Act of 2002
requires managements annual review and evaluation of our internal controls
beginning with our Form 10-K for the fiscal year ending February 29, 2008, and
an attestation of the effectiveness of these controls by our independent
registered public accounting firm beginning with our Form 10-K for the fiscal
year ending on February 28, 2009.  We are dedicating significant
resources, including management time and effort, and incurring significant costs
in connection with our ongoing Section 404 assessment.  We are
currently documenting and testing our internal controls and considering whether
any improvements are necessary for maintaining an effective control environment
at our company.  The evaluation of our internal controls is being
conducted under the direction of our senior management.  In addition,
our management is regularly discussing the results of our testing and any
proposed improvements to our control environment with our Audit
Committee.  We will continue to work to improve our controls and
procedures, and to educate and train our employees on our existing controls and
procedures in connection with our efforts to maintain an effective controls
infrastructure at our Company.  Limitations on Effectiveness of
Controls.  A system of controls, however well designed and
operated, can provide only reasonable, and not absolute, assurance that the
system will meet its objectives.  The design of a control system is
based, in part, upon the benefits of the control system relative to its
costs.  Control systems can be circumvented by the individual acts of
some persons, by collusion of two or more people, or by management override of
the control.  In addition, over time, controls may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.  In addition, the design of any control
system is based in part upon assumptions about the likelihood of future
events.  ITEM
9B. OTHER
INFORMATION  Not applicable. PART III  ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE  The executive officers and directors of the Company as of
May 11, 2008 are as follows:  Name
Age
PositionMark A. Lopez
44
CEOWayne M. Ash
68
PresidentKenneth Wiedrich
61
Chief Financial OfficerC. Wayne Hartle
71
Secretary and DirectorKiyoshi Kasai
91
DirectorRay C. Brown
85
Chairman of the Board of
Directors  24     The business experience of each of the persons listed
above is as follows:  Mark A. Lopez has served as chief executive
officer of Unico, Incorporated and as a co-manager of two of Unico's
subsidiaries, Deer Trail Mining Company, LLC and Bromide Basin Mining Company,
LLC, since September 7, 2004. He served as a consultant to Unico from September
2003 until September 2004 when he became CEO. Mr. Lopez has served as a vice
president of investments for Ashton Capital Management, Inc., a securities
broker dealer, from December 2001. He has been licensed as a registered
investment advisor since November, 2001. Mr. Lopez served as a general
securities principal for American Pacific Securities, Inc. (formerly known as Sy
Leavitt Company, Inc.) from June 1996 through December 2001. He served as a
co-manager of KM Income Properties LLC, a real estate investment company, from
June 1998 through May 2000. He served as a registered investment advisor with
Centurion Capital Management, LLC from October 1998 until February 2001. He also
served as a licensed life and disability insurance agent with Alliance Financial
Investment Services, Inc. from June 1994 until May 2000.  Wayne M. Ash has served as president of
Unico since February 2003. From 1986 to the present, Mr. Ash has served as
president of Ash & Associates Consulting Ltd. Mr. Ash has evaluated over 100
mineral prospects and potential mining properties in Canada, the United States,
Latin America and Asia. Mr. Ash has more than forty years experience in the
mining industry.  Kenneth Wiedrich has served as the chief
financial officer of Unico since April 2007. Mr. Wiedrich has over 33 years of
experience in operational accounting and finance functions in a variety of
businesses within the service, construction and manufacturing industries. Mr.
Wiedrich has experience in the use of several automated accounting systems
including MAS90, Peachtree, and QuickBooks. Mr. Wiedrich has experience with
governmental cost accounting methods and related government acquisition
regulations. In his capacity as the Chief Financial Officer for RI-Tech, Inc.
(1990-2003), he was responsible for the dayto-day administrative functions of
the company as well as all accounting and financial aspects of the business. Mr.
Wiedrich was involved in raising money through private placement and long-term
financing for Ri-Tech.  From 2003 to 2007, Mr. Wiedrich served as
Controller for Javelin Advisory Group, Inc.  C. Wayne Hartle has served as the secretary
and as a director of Unico since 1990. Mr. Hartle resigned as a director in
July, 2004 and was re-elected as a director in May 2007.  Mr. Hartle owns
and operates Wayne's Service Center, an automobile repair and service business
in Salt Lake City, Utah. Mr. Hartle is the former chief financial officer of
Energy and Corrosion Research Company from 1979 to 1981. Mr. Hartle received a
degree from Henagers Business College in Salt Lake City, Utah.  Ray C. Brown began serving as the chief
executive officer and as a director of Unico in 1983.  On September 7, 2004
he voluntarily resigned as chief executive officer, and Mark Lopez was appointed
chief executive officer. Mr. Brown continues to serve as chairman of the board
of directors of Unico. He also served as the president of Unico from 1983 until
February 2002. He is presently semi-retired. Mr. Brown served as the chairman of
the board of directors of Energy and Corrosion Research Corporation from 1979 to
1982. He also served as president and as a director of Ecotech Corporation from
1971 to 1983. Mr. Brown served as president and as a director of Wasatch Mineral
and Construction Company from 1963 to 1971. He served as president and as a
director of Courtesy Finance Corporation from 1958 to 1963. Prior to 1958, Mr.
Brown served in various capacities with other financial institutions. Mr. Brown
attended the University of Utah majoring in banking and finance.  Kiyoshi Kasai served as vice president from
1987 until June 2004 and he has served as a director of Unico since 1987.
 Mr. Kasai is presently semi-retired.  For over 35 years prior to
1987, Mr. Kasai worked as an engineer for various companies including Hughes
Helicopter, Litton Systems, Inc., Hoffman Electronics Corporation, RCA Service
Company, Convair Astronautics and other companies.  Mr. Kasai attended U.C.
Berkeley and the Illinois Institute of Technology.  Significant Employees  Unico has no employees (other than its
executive officers) who are expected to make a significant contribution to
Unico's business.  Family Relationships  There are no family relationships between
any directors or executive officers of Unico, either by blood or by marriage.  Involvement in Certain Legal Proceedings  During the past five years, no present or
former director, executive officer or person nominated to become a director or
an executive officer of Unico:  (1) was a general
partner or executive officer of any business against which any bankruptcy
petition was filed, either at the time of the bankruptcy or two years prior to
that time;  25   (2) was convicted in a criminal proceeding or named subject to a
pending criminal proceeding (excluding traffic violations and other minor
offenses);  (3) was subject to any
order, judgment or decree, not subsequently reversed, suspended or vacated, of
any court of competent jurisdiction, permanently or temporarily enjoining,
barring, suspending or otherwise limiting his involvement in any type of
business, securities or banking activities; or  (4) was found by a court
of competent jurisdiction (in a civil action), the Securities and Exchange
Commission or the Commodity Futures Trading Commission to have violated a
federal or state securities or commodities law, and the judgment has not been
reversed, suspended or vacated.  Meetings  During the year ended February 29, 2008 the
Board of Directors met on four occasions.   Each incumbent Director
attended at least 75% of the total number of meetings of the Board of Directors
in person or by telephone conference.  Compensation of Directors  Unico has no present arrangement for compensating its
directors.  Compliance with Section 16(a) of the
Securities Act of 1934  Section 16(a) of the Securities Exchange
Act of 1934 requires Unico's executive officers and directors, and persons who
own more than ten percent (10%) of a registered class of Unico's equity
securities, to file an initial report of ownership on Form 3 and changes in
ownership on Form 4 or 5 with the Securities and Exchange Commission (the
"SEC"). Such officers, directors and ten percent (10%) shareholders are also
required by the SEC rules to furnish Unico with copies of all Section 16(a)
forms they file.  Based solely on its review of the copies of
such forms received by it, or written representations from certain reporting
persons that no Forms 5 were required for such persons, Unico believes that its
executive officers, directors and ten percent (10%) shareholders complied with
all Section 16(a) filing requirements applicable to them during the fiscal year
ended February 28, 2007.  Code of Ethics  The Company adopted a code of ethics on May
19, 2006.  It was filed as Exhibit No. 14 in Unicos Annual Report on Form
10-KSB for the year ended February 28, 2006. Unico has undertaken to provide to
any person, without change, upon request, a copy of the code of ethics.
 Requests should be made in writing to Kenneth Wiedrich, CFO, Unico,
Incorporated, 8880 Rio San Diego Drive, 8th Floor, San Diego,
California  92108.  Audit Committee Expert  The Companys Board of Directors presently
serves as the Companys Audit Committee.  The Company does not currently
have a financial expert serving on the Audit Committee.  The Board of
Directors is seeking to add a financial expert, but has not yet found a suitable
individual.  The Board of Directors will continue to search for someone
that meets the qualifications of an audit committee financial expert.  ITEM 11. EXECUTIVE COMPENSATION  Summary Compensation Table  The following table sets forth the annual
and long-term compensation for services in all capacities for the fiscal years
ended February 29, 2008 and February 28, 2007 paid to the Companys chief
executive officer, chief financial officer and any other executive officers
whose compensation paid by the Company for any of the two fiscal years exceeded
$100,000. No other executive officers received compensation exceeding $100,000
during the two fiscal years ended February 29, 2008.        26    Summary Compensation
TableAnnual Compensation
Long
Term CompensationAwardsName and
Principal
Position
Fiscal
Year
Ended
Feb. 28
Salary
Bonus
Other
Annual
Compensation
Restricted
Stock
Award(s)
Securities
Underlying
Options
All
Other
Compen-
sation
TotalMark A. Lopez,
CEO
2008
$
150,000(1)
$-0-
$-0-
--
--
--
$
150,000Kenneth
Wiedrich, CFO
2008
$
  82,000
$-0-
$-0-
--
--
--
$
  82,000Mark A. Lopez,
CEO, CFO
2007
$
150,000(1)
$-0-
$-0-
--
--
--
$
150,000  Employment Agreements  The Company does not currently have any
written employment agreements in place.  Indemnification  As permitted by the provisions of the
General Corporation Law of the State of Arizona, the Company has the power to
indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative, by reason of the fact that the
person is or was a director, officer, employee or agent of the corporation if
such officer or director acted in good faith and in a manner reasonably believed
to be in or not opposed to the best interest of the Company.  Any such
person may be indemnified against expenses, including attorneys fees,
judgments, fines and settlements in defense of any action, suit or proceeding.
 The Company maintains $1,000,000 of directors and officers liability
insurance.  Stock Option Plan  Unico has not adopted a stock option plan
at this time.  Unico may adopt a stock option plan for its executive
officers, directors and/or employees in the future.  Compensation of Directors  Unico has no present arrangement for compensating its
directors.  ITEM 12. SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDERS MATTERS  The following table sets forth information,
to the best knowledge of the Company, as of May 11, 2008 with respect to each
person known by Unico, Incorporated to own beneficially more than 5% of the
outstanding Common Stock, each director and officer, and all directors and
officers as a group.  Name and
Address
Number of Shares
Beneficially Owned (1)
Class
Percentage
of Class
(2)Mark A.
Lopez
Chief Executive
Officer
50,000
5,401,968
Common
Series A Preferred
*
55%Wayne Ash
President
2,000
Common
*Kenneth
Wiedrich
Chief Executive
Officer
-
Common
*Wayne
HartleSecretary
2,994,224
348,989
Common
Series A Preferred
*
4%Ray C.
Brown(4)
Director
16,227,474
3,549,043
Common
Series A Preferred
*
36%Kiyoshi
Kasai(3)
Director
6,930
Common
*All directors
and executive officers
19,280,628
Common
*(6
persons)
9,300,000
Series A Preferred
95%    27    (1)
Unless indicated otherwise, the address for each of the above listed is c/o
Unico, Incorporated at 8880 Rio San Diego Drive, 8th Floor, San
Diego, California 92108.  (2) The above percentages are based on
4,940,363,072 shares of common stock and 9,800,000 shares of Series A Preferred
Stock outstanding as of May 11, 2008.  (3) Of the shares listed as being
beneficially owned by Kiyoshi Kasai, 400 are owned of record by his wife, Fumiko
Kasai, and 1,500 are owned of record by the Kasai Family Trust.  Kiyoshi
Kasai is the trustee of the Kasai Family Trust, and has sole voting and
investment power over the shares held by the Trust.  (4) In addition to the shares listed above
as being beneficially owned by Mr. Brown, as of  May 11, 2008, Mr. Brown
held convertible debentures in the principal amount of  $449,514, which are
convertible to shares of Unicos common stock.  The debentures are
convertible at 80% of the bid price of Unico common stock on the date of
conversion.  ITEM 13. CERTAIN RELATIONSHIPS
AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE  Transactions with Management and
Others  During the two fiscal years ended February
29, 2008, there have been no material transactions or series of similar
transactions to which Unico or any of our subsidiaries were or are to be a
party, in which the amount involved exceeds $120,000, and in which anypromoter, founder,director or executive officer, or any security holder who is known to us
to own of record or beneficially more than five percent of the our common stock,
or any member of the immediate family of any of the foregoing persons, had a
material interest, and none is presently proposed, other than the following:  1.  Unico has received advances in the
past from three related parties; C. Wayne Hartle, Ray Brown and Mark Lopez.
 Portions of these advances were converted to convertible debentures that
bear interest at 10% per annum and are convertible to common stock of the
Company at a discounted rate equal to 80% of the closing bid price on the date
of conversion.  Both the Company and the note holders have the right to
convert under these terms.  Mr. Joseph Lopez, father of Mark Lopez,
purchased a portion of the debentures held by Mr. Brown.  In the event of a
company liquidation, the notes automatically convert into common stock at the
same rate.  During the fiscal year ended February 28, 2007, Mr. Brown
converted $100,527 of accrued interest and $74,073 of principal for which he
received 7,900,000 shares of Unico common stock.  During the fiscal year
ended February 28, 2007, Mr. Hartle converted $6,859 of accrued interest and
$30,642 of principal for which he received 1,953,165 shares of Unico common
stock.  During the fiscal year ended February 29, 2008, Mr. Brown converted
$16,567of accrued interest and $7,079 of principal for which he received
8,627,463 shares of Unico Common Stock.  As of February 29, 2008, the
principal balance of the convertible debentures held by Mr. Brown and Mr. Joseph
Lopez, father of Chief Executive Officer Mark Lopez, was $449,514 and $114,486,
respectively.  Mark Lopez and Mr. Hartle held no debentures as of February
29, 2008.  2.  On January 23, 2008, Moore
Investment Holdings, LLC purchased $3,765,100 face value of Convertible
Debentures issued by Unico from Blue Marble Investments, a BWI company.
 Effective the same date, Moore Investment Holdings, LLC purchased
$1,200,000 face value of Convertible Debentures issued by Unico from Compass
Capital Group, Inc., a New York Corporation, and $15,000 face value of
Convertible Debentures issued by Unico from Reef Holdings, Ltd., a BWI company.
 Unico consented to these assignments which were made effective on January
23, 2008.  Blue Marble Investments, Compass Capital Group, Inc., and Reef
Holdings, Ltd. are private non-related companies. Moore Investment Holdings, LLC
is a Nevada limited liability company controlled by Joseph A. Lopez, and his
wife, Patricia A. Lopez.  Joseph A. Lopez is the father of Mark A. Lopez,
Chief Executive Officer of Unico.  3.  Moore Investment Holdings, LLC has
purchased the following additional Convertible Debentures from Unico:  (a)
$250,000 on January 23, 2008; (b) $250,000 on January 30, 2008; (c) $250,000 on
March 13, 2008; (d) $40,000 on March 10, 2008; (e) $10,000 on March 11, 2008;
(f) $200,000 on March 27, 2008, (g) $50,000 on April 23, 2008; and (h) $25,000
on May 9, 2008.  Unico received $1,075,000 from the issuance of these
debentures.  All of the Convertible Debentures bear interest at the rate of
eight percent (8.0%) per annum, are convertible to shares of Unicos common
stock at fifty percent of the bid price of Unicos common stock on the date of
conversion, and are due and payable six (6) months from their issue date.
 These Convertible Debentures are identical in their terms to the
Convertible Debentures issued by Unico numerous times to unrelated third parties
during the last three years.      28   Director Independence  As of the date of this Report, our common
stock traded on the OTC Bulletin Board (the Bulletin Board).  The
Bulletin Board does not impose on us standards relating to director independence
or the makeup of committees with independent directors, or provide definitions
of independence.  Nevertheless, we have one director, Kiyoshi Kasai,
who is independent under the NASDAQ Marketplace Rules and those standards
applicable to companies trading on NASDAQ.  The NASDAQ Stock Market
has instituted director independence guidelines that have been adopted by the
Securities & Exchange Commission.  These guidelines provide that a
director is deemed independent only if the board of directors affirmatively
determines that the director has no relationship with the company which, in the
boards opinion, would interfere with the directors exercise of independent
judgment in carrying out his or her responsibilities.  Significant stock
ownership will not, by itself, preclude a board finding of independence.  For NASDAQ Stock Market listed companies,
the director independence rules list six types of disqualifying relationships
that preclude an independence filing.  The Companys board of directors may
not find independent a director who:  1.  is an employee of the company or
any parent or subsidiary of the company;  2.  accepts, or who has a family
member who accepts, more than $60,000 per year in payments from the company or
any parent or subsidiary of the company other than (a) payments from board or
committee services; (b) payments arising solely from investments in the
companys securities; (c) compensation paid to a family member who is a
non-executive employee of the company (d) benefits under a tax qualified
retirement plan or non-discretionary compensation; or (e) loans to directors and
executive officers permitted under Section 13(k) of the Exchange Act;  3.  is a family member of an
individual who is employed as an executive officer by the company or any parent
or subsidiary of the company;  4.  is, or has a family member who is,
a partner in, or a controlling shareholder or an executive officer of, any
organization to which the company made, or from which the company received,
payments for property or services that exceed 5% of the recipients consolidated
gross revenues for that year, or $200,000, whichever is more, other than (a)
payments arising solely from investments in the companys securities or (b)
payments under non-discretionary charitable contribution matching programs;  5.  is employed, or who has a family
member who is employed, as an executive officer of another company whose
compensation committee includes any executive officer of the listed company;
or  6.  is, or has a family member who is,
a current partner of the companys outside auditor, or was a partner or employee
of the companys outside auditor who worked on the companys audit.  Based upon the foregoing
criteria, our Board of Directors has determined that Kiyoshi Kasai is an
independent director under these rules.  Specifically, Mr. Kasai:  ·
has not been any time during the past
three years, employed by us or by any parent or subsidiary of
ours;·
has not accepted or had a family
member who accepted any compensation from us in excess of $60,000 during
any period of twelve consecutive months within the three years preceding
the determination of independence.·
is not a family member of an
individual who is, or at any time during the past three years was,
employed by us as an executive officer;·
is not, and does not have a family
member who is, a partner in, or a controlling shareholder or an executive
officer of, any organization to which we made, or from which the company
received, payments for property or services in the current or any of the
past three fiscal years that exceed 5% of the recipient's consolidated
gross revenues for that year, or $200,000.·
Is not, and does not have a family
member who is, employed as an executive officer of another entity where at
any time during the past three years any of the executive officers of ours
serve on the compensation committee of such other entity; or·
is not, and does not have a family
member who is, a current partner of our outside auditor, or was a partner
or employee of our outside auditor who worked on our audit at any time
during any of the past three years.  29      ITEM 14. PRINCIPAL
ACCOUNTANT FEES AND SERVICES  Audit Fees  During the fiscal years ended February 29,
2008 and February 28, 2007, the aggregate fees billed by HJ Associates &
Consultants, LLP, for services rendered for the audit of our annual financial
statements and the review of the financial statements included in our quarterly
reports or services provided in connection with the statutory and regulatory
filings or engagements for those fiscal years, was approximately $37,100 and
$35,600, respectively.  Audit Related Fees  None  Tax Fees  None  All Other Fees  The aggregate fees billed by the Company's
auditors for all other non-audit services rendered to the Company, such as
attending meetings and other miscellaneous financial consulting in fiscal 2007
and 2006 were $0 and $0, respectively.    ITEM 15.
        EXHIBITS  (a)(1)(2) Financial
Statements.  See index to financial statements and supporting
schedules.  (a)(3) Exhibits. The following exhibits are filed as part of
this statement:  The exhibits listed below are required by
Item 601 of Regulation S-B.  Each management contract or compensatory plan
or arrangement required to be filed as an exhibit to this Form 10-KSB has been
identified.  Exhibit
No.
Description
Location3.1
Articles of
Incorporation
(1)3.2
Amendment to articles of
incorporation, dated November 8, 1967
(1)3.3
Amendment to articles of
incorporation, dated December 6, 1972
(1)3.4
Amendment to articles of
incorporation, dated May 29, 1973
(1)3.5
Amendment to articles of
incorporation, dated December 1, 1979
(1)3.6
Amendment to articles of
incorporation, dated May 12, 1992
(1)3.7
Amendment to articles of
incorporation, dated November, 1999
(1)3.10
Amendment to articles of
incorporation, dated June 1, 2004
(2)3.11
Amendment to articles of
incorporation, dated February 2, 2006
(4)3.8
By-laws
(1)3.9
Board of directors
resolution amending Unicos by-laws, dated April 1, 1992
(1)4.1
Certificate of Designation,
Number, Powers, Preferences and Relative, Participating, Optional and
other Special Rights and the Qualifications, Limitations, Restrictions and
other Distinguishing Characteristics of Series A Preferred Stock
(2)  30    10.60
Convertible Debenture No.
29 for $25,000 dated 03/02/06 issued to Umbrella Holdings
(5)10.61
Convertible Debenture No.
30 for $75,000 dated 03/08/06 issued to Umbrella Holdings
(5)10.62
Convertible Debenture No.
31 for $75,000 dated 03/15/06 issued to Outboard Investments, LTD
(5)10.63
Convertible Debenture No.
32 for $150,000 dated 03/22/06 issued to Outboard Investments, LTD
(5)10.64
Convertible Debenture No.
33 for $250,000 dated 0/06/06 issued to Outboard Investments, LTD
(5)10.65
Convertible Debenture No.
34 for $250,000 dated 04/18/06 issued to Outboard Investments, LTD
(5)10.66
Convertible Debenture No.
35 for $300,000 dated 05/4/06 issued to Outboard Investments, LTD
(5)10.67
Convertible Debenture No.
36 for $500,000 dated 05/17/06 issued to Outboard Investments, LTD
(5)10.68
Mining Lease with Joel
Johnson dated 08/0706
(6)10.69
Convertible Debenture No.
37 for $250,000 dated 06/15/06 issued to Outboard Investments, LTD
(6)10.70
Convertible Debenture No.
38 for $100,000 dated 08/15/06 issued to Outboard Investments, LTD
(6)10.71
Convertible Debenture No.
39 for $100,000 dated 08/18/06 issued to Outboard Investments, LTD
(6)10.72
Convertible Debenture No.
40 for $250,000 dated 08/31/06 issued to Outboard Investments, LTD
(6)10.73
Third Modification of
Mining Lease and Option to Purchase (Deer Trail Mine) dated
11/01/06
(7)10.74
Fourth Modification of
Mining Lease and Option to Purchase (Deer Trail Mine) dated 4/26/07
(8)10.75
Convertible Debenture No.
41 for $200,000 dated 08/2/07 issued to Blue Marble Investments,
LTD
(8)10.76
Stock purchase agreement
with Cherry Creek Holdings, LLC dated 12/29/06
(8)10.77
Stock purchase agreement
with Cherry Creek Holdings, LLC dated 1/12/07
(8)10.78
Fifth Modification of the
Deer Trail Lease dated June 29, 2007
(9)10.79
Convertible Debenture No.
42 for $400,000 dated 3/15/07 to Blue Marble Investments
(9)10.80
Convertible Debenture No.
43 for $300,000 dated 3/19/07 to Blue Marble Investments
(9)10.81
Convertible Debenture No.
44 for $200,000 dated 3/23/07 to Blue Marble Investments
(9)10.82
Convertible Debenture No.
45 for $140,000 dated 4/5/07 to Blue Marble Investments
(9)10.83
Convertible Debenture No.
46 for $200,000 dated 4/25/07 to Blue Marble Investments
(9)10.84
Convertible Debenture No.
47 for $200,000 dated 4/30/07 to Blue Marble Investments
(9)10.85
Convertible Debenture No.
48 for $800,000 dated 5/15/07 to Blue Marble Investments
(9)10.86
Convertible Debenture No.
49 for $300,000 dated 5/30/07 to Blue Marble Investments
(9)10.87
Agreement (concerning the
sale of Deer Trail Mine claims) dated effective May 31, 2007 between Crown
Mines, L.L.C. and Deer Trail Mining Company, LLC
(10)10.88
Assignment of Contractual
Water Right dated July 30, 2007 between Crown Mines, L.L.C. and Deer Trail
Mining Company, LLC
(10)10.89
Water Rights Lease and
Water Pipeline Easement Agreement dated July 30, 2007 between Crown Mines,
L.L.C. and Deer Trail Mining Company, LLC
(10)10.90
Right of Way Easement dated June 21, 2007 granted
to PacifiCorp
(10)10.91
Convertible Debenture No.
50 for $300,100 dated June 1, 2007 issued to Blue Marble
Investments
(10)10.92
Convertible Debenture No. 51 for $375,000 dated
June 8, 2007 issued to Blue Marble Investments
(10)10.93
Convertible Debenture No. 52 for $100,000 dated
June 11, 2007 issued to Compass Capital Group, Inc.
(10)10.94
Convertible Debenture No. 53 for $50,000 dated June
20, 2007 issued to Compass Capital Group, Inc.
(10)10.95
Convertible Debenture No.
54 for $250,000 dated July 2, 2007 issued to Blue Marble
Investments
(10)  31    10.96
Convertible Debenture No.
55 for $200,000 dated July 30, 2007 issued to Blue Marble
Investments
(10)10.97
Convertible Debenture No.
56 for $100,000 dated August 21, 2007 issued to Compass Capital Group,
Inc.
(10)10.98
Convertible Debenture No.
57 for $50,000 dated August 29, 2007 issued to Compass Capital Group,
Inc.
(10)10.99
Convertible Debenture No 58
for $50,000 dated September 10, 2007 issued to Compass Capital Group,
Inc.
(11)10.100
Convertible Debenture No 59
for $100,000 dated September 14, 2007 issued to Compass Capital Group,
Inc.
(11)10.101
Convertible Debenture No 60
for $100,000 dated September 17, 2007 issued to Compass Capital Group,
Inc.
(11)10.102
Convertible Debenture No 61
for 200,000 dated October 10, 2007 issued to Blue Marble
Investments.
(11)10.103
Convertible Debenture No 62
for $150,000 dated October 30,  2007 issued to Blue Marble
Investments.
(11)10.104
Convertible Debenture No 63
for $50,000 dated November 20, 2007 issued to Compass Capital Group,
Inc.
(11)10.105
Convertible Debenture No 64
for $75,000 dated November 26, 2007 issued to Compass Capital Group,
Inc.
(11)10.106
Convertible Debenture No 65
for $199,854.09 dated December 11, 2007 issued to Blue Marble
Investments
Filed herewith10.107
Convertible Debenture No 66
for $25,000 dated January 4, 2008 issued to Compass Capital Group,
Inc.
Filed herewith10.108
Convertible Debenture No 67
for $15,000 dated January 15, 2008 issued to Compass Capital Group,
Inc.
Filed herewith10.109
Convertible Debenture No 68
for $35,000 dated January 18, 2008 issued to Blue Marble
Investments
Filed herewith10.110
Convertible Debenture No 69
for $250,000 dated January 23, 2008 issued to Moore Investment Holdings,
LLC
Filed herewith10.111
Convertible Debenture No 70
for $250,000 dated January 30, 2008 issued to Moore Investment Holdings,
LLC
Filed herewith14
Code of Ethics adopted May
19, 2006
(4)31.1
Certification of Chief
Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
Filed herewith31.2
Certification of Chief
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
Filed herewith32.1
Certification of Chief
Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
Filed herewith32.2
Certification of Chief
Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
Filed herewith99.1
Audit Committee Charter
adopted July 7, 2004
(3)   (1) Incorporated by
reference from Unico's Registration Statement on Form 10-SB filed on April 6,
2000. (2) Incorporated by
reference from Unicos Quarterly Report on Form 10-QSB for the Quarter Ended May
31, 2004 filed on July 22, 2004. (3) Incorporated by
reference from Unicos Annual Report on Form 10-KSB for the Fiscal Year Ended
February 28, 2005 filed on June 20, 2005.  32   (4) Incorporated by reference from Unicos Annual Report on Form
10-KSB for the Fiscal Year Ended February 28, 2006 filed on July 18, 2006. (5) Incorporated by
reference from Unicos Amended Quarterly Report on Form 10-QSB/.A for the
Quarter Ended May 31, 2006 filed on October 24, 2006. (6) Incorporated by
reference from Unicos Quarterly Report on Form 10-QSB for the Quarter Ended
August 31, 2006 filed on October 24, 2006. (7) Incorporated by
reference from Unicos Quarterly Report on Form 10-QSB for the Quarter Ended
November 30, 2006 filed on January 17, 2007. (8) Incorporated by
reference from Unicos Annual Report on Form 10-KSB for the Fiscal Year Ended
February 28, 2007 filed on June 7, 2007. (9) Incorporated by
reference from Unicos Amended Quarterly Report on Form 10-QSB/.A for the
Quarter Ended May 31, 2007 filed on July 7, 2007. (10) Incorporated by
reference from Unicos Quarterly Report on Form 10-QSB for the Quarter Ended
August 31, 2007 filed on October 12, 2007. (11) Incorporated by
reference from Unicos Quarterly Report on Form 10-QSB for the Quarter Ended
November 30, 2007 filed on January 14, 2008.       33   SIGNATURES Pursuant to the requirements of
Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized. UNICO,
INCORPORATED Dated: June 2, 2008 /s/ Mark A. Lopez Mark A. Lopez Chief Executive Officer   Pursuant to the requirements of
the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.  SIGNATURE

DATE/s/Ray C. BrownRay C. Brown, Director

June 2, 2008/s/ Kiyoshi KasaiKiyoshi Kasai, Director

June 2, 2008/s/ Wayne HartleC. Wayne Hartle, Director

June 2, 2008  34


UNICO, INCORPORATED  Financial Statements  February 29, 2008 and February 28, 2007        35     CONTENTS **** Report
of Independent Registered Public Accounting Firm 37 Consolidated
Balance Sheets 38 Consolidated
Statements of Operations 39 Consolidated
Statements of Stockholders Equity (Deficit) 40 Consolidated
Statements of Cash Flows 41 Notes to
the Consolidated Financial Statements
                                                             
42     36    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  To the Board of Directors Unico Incorporated San Diego, California  We have audited the consolidated balance sheets of Unico
Incorporated as of February 29, 2008, and the related statements of operations,
stockholders equity (deficit) and cash flows for the years ended February 29,
2008 and February 28, 2007. These consolidated financial statements are the
responsibility of the Companys management.  Our responsibility is to
express an opinion on these consolidated financial statements based on our
audit.  We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States).  Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free of material misstatement.
 An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the consolidated financial statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall consolidated financial
statement presentation.  We believe that our audit provide a reasonable
basis for our opinion.  In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position of Unico
Incorporated as of February 29, 2008 and February 28, 2007, and the results of
their operations and their cash flows for the years then ended, in conformity
with United States generally accepted accounting principles.  We
were not engaged to examine management's assertion about the effectiveness of
Unico Incorporateds internal control over financial reporting as of February
29, 2008 and, accordingly, we do not express an opinion.  The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern.  As discussed in Note 7
to the financial statements, the Company has incurred significant losses which
have resulted in an accumulated deficit and a deficit in working capital,
raising substantial doubt about its ability to continue as a going concern.
 Managements plans in regard to these matters are also described in Note
7.  The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.  /s/ HJ Associates & Consultants, LLP  HJ Associates & Consultants, LLP Salt Lake City, Utah June 2, 2008     37   UNICO, INCORPORATEDConsolidatedBalance SheetsASSETS

February 29,

February 28,2008
2007Current AssetsCash
$
-
$
7,194Accounts receivable

1,420

-Prepaid expense

20,000

-Total
Current Assets

21,420

7,194Fixed AssetsEquipment, furniture, etc. net of depreciation
(Note 1)

4,167,132

583,228Construction in progress

2,174,952

1,726,861Total Fixed Assets

6,342,084

2,310,089Other AssetsCash- reclamation bonds

215,799

207,703Deposit

8,947

20,460Total Other Assets

224,746

228,163Total Assets
$
6,588,250
$
2,545,446LIABILITIES AND STOCKHOLDERS'
DEFICITCurrent LiabilitiesBank overdraft
$
3,142
$
-Accounts payable

785,427

246,607Wages payable

27,196

-Accrued expenses

400

31,607Reclamation obligations

144,862

131,784Accrued interest payable

24,510

120,100Accrued interest payable - related party (Note
2)

355,845

33,707Taxes payable

17,369

-Derivative Liability

8,311,182

3,019,291Debentures payable, (Note 3)

75,000

1,148,000Debentures payable-related party net of discount
(Note 2)

5,496,821

571,059Total Current Liabilities

15,241,754

5,302,155Total Liabilities

15,241,754

5,302,155Stockholders' DeficitPreferred Stock, authorized 20,000,000 shares,
$0.001 Par Value, 9,800,000 shares issued and outstanding

9,800

9,800Common Stock,  authorized 5,000,000,000
shares, $0.001 Par Value,4,940,363,072 and 1,005,419,819 shares issued and
outstanding respectively

4,940,363

1,005,420Stock Payable

999,000

999,000Additional Paid in Capital

46,322,024

40,113,832Accumulated Deficit

(60,924,691)

(44,884,761)Total
Stockholders' Deficit

(8,653,504)

(2,756,709)Total Liabilities and Stockholders' Deficit
$
6,588,250
$
2,545,446   The accompanying notes are an integral part
of these consolidated financial statements   38   UNICO, INCORPORATEDConsolidatedStatements of
OperationsFor the Years EndedFebruary 29,


February 28,2008


2007Total Revenues
$
-

$
-Operating ExpensesDrilling,
exploration and maintenance expense

594,267


403,855Depreciation
and accretion

173,849


225,216Professional
fees

471,351


434,522Salaries/wages

383,055


327,936General and
administrative expense

438,719


405,585Total Operating
Expenses

2,061,241


1,797,114Net Operating Loss

(2,061,241)


(1,797,114)Other Income (Expense)Interest
expense

(5,266,533)


(2,853,375)Interest
income

12,413


6,112Derivative gain
(loss) on debentures

(859,016)


(434,060)Loss on sale of
asset

-


(5,914)Loss on
settlement of debt

(7,877,820)


(13,248,915)Other
income

12,619


-Total Other
Expense

(13,978,337)


(16,536,152)LOSS FROM CONTINUING OPERATIONS

(16,039,578)


(18,333,266)Income Tax Expense

(350)


-Net Loss
$
(16,039,928)

$
(18,333,266)Net Loss Per Share
$
(0.005)

$
(0.071)Weighted Average Shares Outstanding

3,446,230,098


257,245,898   The accompanying notes are an integral part
of these consolidated financial statements.    39


UNICO, INCORPORATEDStatements of Stockholders' Equity (Deficit)Additional

RetainedPreferred Stock

Common Stock

Paid-in

EarningsShares

Amount

Shares

Amount

Capital

(Deficit)Balance,
February 28, 2005
9,800,000
$
9,800

498,427,896
$
498,428
$
19,725,947
$
(24,279,398)Purchase of
preferred stock from related party
(3,000,000)

(3,000)

-

-

(177,000)

-Preferred stock
issued for related party debt extinguishments
3,000,000

3,000

-

-

87,000

-Stock issued for
conversion of debentures
-

-

173,835,653

173,836

150,014

-Derivative
portion of convertible debentures
-

-

-

-

677,261

-Net Loss for
period ended February 28, 2006
-

-

-

-

-

(2,272,097)Balance,
February 28, 2006
9,800,000
$
9,800

672,263,549
$
672,264
$
20,463,222
$
(26,551,495)S8 Stock issued
for services
-

-

2,100,000

2,100

28,400

-Derivative
portion of convertible debentures
-

-

-

-

16,095,712

-Stock issued for
conversion of debentures
-

-

331,056,270

331,056

2,712,669

-Write-off of
interest on previously converted debentures
-

-

-

-

63,829

-Capital
contribution from shareholders
-

-

-

-

750,000

-Net loss for
year ended February 28, 2007
-

-

-

-

-

(18,333,266)Balance,
February 28, 2007
9,800,000
$
9,800

1,005,419,819
$
1,005,420
$
40,113,832
$
(44,884,761)Derivative
portion of convertible debentures
-

-

-

-

8,909,899

-Capital
contribution from shareholders
-

-

-

-

68,000

-Stock issued for
conversion of debentures
-

-

3,934,943,253

3,934,943

(2,769,707)

-Net loss for
period ended February 29, 2008
-

-

-

-

-

(16,039,928)Balance,
February 29, 2008
9,800,000
$
9,800

4,940,363,072
$
4,940,363
$
46,322,024
$
(60,924,691)         The accompanying notes are an integral part
of these consolidated financial statements


40


UNICO, INCORPORATED
Consolidated
Statements of Cash
FlowsFor the Year EndingFebruary 29,

February 28,2008

2007Cash Flows from Operating Activities:Net Loss
$
(16,039,928)
$
(18,333,266)Adjustments to Reconcile Net Loss to Net Cash
Provided by Operations:Depreciation
and accretion expense

173,849

225,216Loss on sale of
assets

-

5,914Loss on
settlement of debt

7,877,820

13,682,975Derivative/Interest
related to convertible debentures

5,743,857

2,641,747Common stock
issued for services

-

30,500Changes in Operating Assets and Liabilities:(Increase) Decrease
in:Reclamation deposit

(8,096)

(28,588)Prepaid
expense

(8,487)

(14,800)Accounts
receivable

(1,420)

-Increase (Decrease)
in:Accrued
expenses

328,499

(529,910)Accounts payable and
other liabilities

583,382

(203,160)Net Cash Used by Operating   Activities

(1,350,524)

(2,523,372)Cash Flows from Investing Activities:Purchase of fixed assets- Construction
in progress

(448,091)

(1,726,861)Purchase of fixed assets

(3,744,675)

(72,281)Sale of fixed assets

-

26,200Net Cash Used by Investing Activities

(4,192,766)

(1,772,942)Cash Flows from Financing Activities:Increase in bank overdraft

3,142

-Proceeds from stock payable

-

999,000Capital contributions from
shareholders

68,000

750,000Issuance of convertible
debentures

5,464,954

2,525,000Net Cash Provided by Financing Activities

5,536,096

4,274,000Net Increase (Decrease) in Cash

(7,194)

(22,314)Cash at Beginning of Period

7,194

29,508Cash at End of Period
$
-
$
7,194Cash Paid For:Interest
$
21,922
$
25,000Income Taxes
$
350
$
-Non-Cash Financing Activities:Common stock issued for services
$
-
$
30,500Common Stock issued for debt
extinguishments
$
1,165,236
$
3,043,725  The accompanying notes are an integral part
of these consolidated financial statements   41    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007     NOTE 1  NATURE OF ORGANIZATION AND SIGNIFICANT
ACCOUNTING PRINCIPLES  This summary of significant accounting
policies of Unico, Incorporated is presented to assist in understanding the
Company's consolidated financial statements. The consolidated financial
statements and notes are representations of the Company's management who are
responsible for their integrity and objectivity. These accounting policies
conform to accounting principles generally accepted in the United States of
America and have been consistently applied in the preparation of the
consolidated financial statements.  a. Organization and
Business Activities  Unico, Incorporated was formed as an
Arizona corporation on May 27, 1966 under the name of Red Rock Mining Co.,
Incorporated. It was later known as Industries International, Incorporated and
I.I. Incorporated before the name was eventually changed to Unico, Incorporated
in 1979.  On July 12, 2004, Unico filed an election
with the U.S. Securities and Exchange Commission to become a business
development company pursuant to Section 54 of the Investment Company Act of
1940. Unico's Deer Trail Mine operations are conducted through Deer Trail Mining
Company, LLC, a Nevada limited liability company while Unico's Bromide Basin
Mine operations are conducted through Bromide Basin Mining Company, LLC, a
Nevada limited liability company. Unico also owns Silver Bell Mining Company,
Inc., which is not presently operational.  On October 11, 2005, the Unico
shareholders approved a proposal to authorize the Companys Board of Directors
to withdraw the Companys election to be treated as a BDC.  On October 12,
2005 a Notification of Withdrawal of BDC Election was filed with the Securities
and Exchange Commission so that Unico could begin conducting business as an
operating company rather than as a BDC subject to the Investment Company Act.  The Company presently has three
wholly-owned subsidiaries: Deer Trail Mining Company, LLC, Silver Bell Mining
Company, Inc., and Bromide Basin Mining Company, LLC.  While the Company
reported under the Investment Company Act as a Business Development Company, the
operations of these entities were not consolidated but, rather, were treated as
investments and were carried on the Companys books at their fair market value.
 As a result of the Companys withdrawal as a BDC, the equity method of
accounting is now appropriate.  As a result, the accompanying consolidated
financial statements are those of the Company and its wholly owned subsidiaries,
Deer Trail Mining Company, LLC, Silver Bell Mining Company, Inc. and Bromide
Basin Mining Company, LLC.  b. Accounting Method  The Company's consolidated financial
statements are prepared using the accrual method of accounting. The Company has
elected a February 28th year-end.   With the Companys
withdrawal as a BDC, the Company now reports the operations of itself and its
subsidiaries under the equity method of accounting, resulting in the
consolidation of all assets and operations of wholly-owned subsidiaries.  c. Cash and Cash
Equivalents  For the purpose of the statement of cash
flows, the Company considers all highly liquid investments purchased with a
maturity of three months or less to be cash equivalents. As of February 29, 2008
the company had $(3,142) in cash and $215,799 in CDs deposited in banks.  d. Estimates  The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from the estimates.  42    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 1  NATURE OF ORGANIZATION AND SIGNIFICANT
ACCOUNTING PRINCIPLES - continued  e.
        Fixed Assets  The Companys property consists of mining
equipment, vehicles, office furniture and computer equipment.  The property
is depreciated in a straight-line basis over five years.  Fixed assets are
recorded at cost. Major additions and improvement are capitalized. The cost and
related accumulated depreciation of equipment retired or sold are removed from
the accounts and any differences between the undepreciated amount and the
proceeds from the sale are recorded as gain or loss on sale of assets.
 Mineral rights are recorded at cost of acquisition.  When there is
little likelihood of a mineral right being exploited, or the value of mineral
rights have diminished below cost, a write-down is affected against income in
the period that such determination is made.  Fixed Asset Schedule2008
**2007**Fixed Assets:Furniture & Equipment
$
1,809,433
1,064,758Land

200,000
200,000Deer Trail Mining Claim

2,360,000
-Deer Trail Patented Claims

640,000
-Autos

65,814
65,814Total

5,075,247
1,330,572Less Depreciation

(908,115)
(747,344)Net Equipment
$
4,167,132
583,228  Depreciation expense for the fiscal
year ending February 29, 2008 and February 28, 2007 is $160,771 and $121,008
respectively.  f.
         Basic Loss Per Share  The computation of basic loss per share of
common stock is based on the weighted average number of shares outstanding
during the period of the financial statements. Fully diluted loss per share is
not presented as any common stock equivalents are antidilutive in nature. Common
stock equivalents consisting of convertible debt and preferred stock have not
been included in the calculation of loss per share.  2008

2007Loss from operations
$
(16,039,928)

$
(18,333,266)Total loss per share
$
(0.005)

$
(0.071)Weighted Average Number of Shares Outstanding

3,446,230,098


257,245,898  g.
          Income Taxes  Deferred taxes are provided on a liability
method whereby deferred tax assets are recognized for deductible temporary
differences and operating loss and tax credit carryforwards and deferred tax
liabilities are recognized for taxable temporary differences. Temporary
differences are the differences between the reported amounts of assets and
liabilities and their tax bases. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that
some portion or all of the deferred tax assets will not be realized. Deferred
tax assets and liabilities are adjusted for the effects of changes in tax laws
and rates on the date of enactment.   43    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 1  NATURE OF ORGANIZATION AND SIGNIFICANT
ACCOUNTING PRINCIPLES - continued  Net deferred tax assets consist of the
following components as of February 29, 2008 and February 28, 2007:  2008

2007Deferred tax assets:NOL Carryover

$
4,412,600
$
3,576,630Related Party
Accruals


138,800

25,5000Deferred tax liability:Depreciation


(114,900)

(92,400)Valuation allowance


(4,436,500)

(3,509,730)Net deferred tax asset

$
-
$
-  The income tax provision differs from the
amount of income tax determined by applying the U.S. federal income tax rate to
pretax income from continuing operations for the years ended February 29, 2008
and February 28, 2007 due to the following:  2008

2007Book income
$
(6,255,572)
$
(7,149,975)Depreciation

(12,524)

68,835Accrued Expense

113,307

(200,665)Stock for services

-

11,895Debentures

1,905,088

5,167,075Derivative Loss

335,016

169,280Other

222

250Sale of Assets

-

7,710Interest

-

1,108,665SFAS 84

3,072,350

-Accretion

5,100

-Valuation allowance

837,013

816,930$
-
$
-  At February 29, 2008, the Company had net
operating loss carryforwards of approximately $11,314,000 that may be offset
against future taxable income from the year 2008 through 2028. No tax benefit
has been reported in the February 29, 2008 consolidated financial statements
since the potential tax benefit is offset by a valuation allowance of the same
amount.  Due to the change in ownership provisions
of the Tax Reform Act of 1986, net operating loss carryforwards for Federal
income tax reporting purposes are subject to annual limitations. Should a change
in ownership occur, net operating loss carryforwards may be limited as to use in
future years.  The Company files income tax returns in the
U. S. federal jurisdiction, andi in the following state jurisdictions:
California, Arizona, and Utah.  With few exceptions, the Company os no
longer subject to U. S. federal, state and local, or non-U. S. income tax
examinations by tax authorities for years before 2000.  The company has not
filed tax returns since the year 2000 and is therefore subject to examination by
the IRS under the rules of the statute of limitations.  The Company adopted the provisions of the
FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes,
on January 1, 2007.  The Companys policy is to recognize
interest accrued related to unrecognized tax benefits in interest expense and
penalties in operating expenses.        44     UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 1  NATURE OF ORGANIZATION AND
SIGNIFICANT ACCOUNTING PRINCIPLES - continued  FIN 48  Accounting for Uncertainty in
Income Taxes  In July 2006, the FASB issued
Interpretation No. 48, Accounting for Uncertainty in Income Taxesan
interpretation of FASB Statement No. 109 (FIN 48). FIN 48 contains a two step
approach to recognizing and measuring uncertain tax positions accounted for in
accordance with SFAS No. 109. The first step is to evaluate the tax position for
recognition by determining if the weight of available evidence indicates it is
more likely than not that the position will be sustained on audit, including
resolution of related appeals or litigation processes, if any. The second step
is to measure the tax benefit as the largest amount which is more than 50%
likely of being realized upon ultimate settlement. This provision is effective
for fiscal years beginning after December 15, 2006, which will be the Companys
fiscal year 2008. The Company is evaluating the impact, if any; the adoption of
this statement will have on its results of operations, financial position, or
cash flows. Given the Companys substantial loss carry-forward, it does not, in
the near term, expect to have any impact of the Companys tax position with the
adoption of FIN 48.  h. Recent Accounting
Pronouncements  During the year ended February 28, 2007,
the Company adopted the following accounting pronouncements:  In September 2006,
the FASB issued SFAS No. 157, Fair Value Measurements, (SFAS 157).
SFAS 157 defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles and expands disclosures about fair
value measurements. SFAS 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The Company does not anticipate adoption of this standard
will have a material impact on its consolidated financial statements. In June 2006, the
FASB issued Interpretation No. 48, Accounting for Uncertainty in Income
Taxes-an interpretation of SFAS 109,(FIN 48). FIN 48 provides
interpretive guidance for the financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. FIN 48 is
effective for fiscal years beginning after December 15, 2006. The Company
does not anticipate adoption of this standard will have a material impact on its
consolidated financial statements. In March 2006, the
FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets,
which will be effective for fiscal years that begin after December 15,
2006. This statement amends SFAS 140, Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities, a replacement of FASB
Statement 125,or SFAS 140,regarding (1) the circumstances
under which a servicing asset or servicing liability must be recognized,
(2) the initial and subsequent measurement of recognized servicing assets
and liabilities, and (3) information required to be disclosed relating to
servicing assets and liabilities. The Company does not anticipate adoption of
this standard will have a material impact on its consolidated financial
statements. In February 2006,
the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial
Instruments,or SFAS 155, which will be effective for fiscal years that
begin after December 15, 2006. This statement amends SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities, to narrow
the scope exception for interest-only and principal-only strips on debt
instruments to include only such strips representing rights to receive a
specified portion of the contractual interest or principal cash flows. SFAS 155
also amends SFAS 140 to allow qualifying special-purpose entities to hold a
passive derivative financial instrument pertaining to beneficial interests that
itself is a derivative financial instrument. The Company does not anticipate
adoption of this standard will have a material impact on its consolidated
financial statements. In February 2007,
the FASB issued Statement No. 159, The Fair Value Option for Financial Assets
and Financial Liabilities, including an amendment of FASB Statement No. 115
(FAS 159).  FAS 159 permits companies to choose to measure many financial
instruments and certain other items at fair value and establishes presentation
and disclosure requirements design to facilitate comparisons between companies
that choose different measurement attributes for similar types of assets and
liabilities.  The provisions of FAS 159 become effective as of the
beginning of our 2009 fiscal year.  We are currently evaluatin the impact
that FAS 159 will have on our financial statemnents   45    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 1  NATURE OF ORGANIZATION AND SIGNIFICANT
ACCOUNTING PRINCIPLES - continued  i. Revenue
Recognition  The Company will recognize revenues from
sales of minerals. Minerals will be milled at the Deer Trail site from ore that
is mined or taken from existing stockpiles of previously mined ore and sent to
outside firms for refining into metals. Revenue from all sources will be
recognized when persuasive evidence of an arrangement exists and the amount is
fixed or determinable, delivery has occurred, and collection is reasonably
assured. Any amounts received in advance of the minerals being delivered will be
recorded as deferred revenue.  j.
               Preferred
Stock  There are 9,800,000 outstanding shares of
preferred stock. The Board of Directors has designated ten million (10,000,000)
shares of Series A preferred with the following rights and preferences: The
Series A Preferred shall, at the option of the holder, be convertible on a one
for one share basis to common stock of the Company. The holders of shares of
Series A Preferred are not entitled to vote such shares. In lieu of voting
rights the holders of Series A Preferred, voting together as a class, are
entitled to elect two members of the Board of Directors at each meeting. Also
the Series A Preferred is not affected by any capital reorganization of the
Company.  k. Accounting for
Derivatives  Convertible debentures, the Companys sole
derivative instruments, are accounted for under EITF 00-27 unless liability
classification of the derivative is more appropriate.  Where the embedded
conversion option appears to qualify for liability classification, derivatives
are accounted for under EITF 00-19.  Under EITF 00-27, the Company records a
beneficial conversion cost associated with the convertibility feature of the
security that equals the value of any discount to market available at the time
of conversion.  This beneficial conversion cost is recorded at the time the
convertible security is first issued.  If the debenture is subsequently
converted into stock, the liability is reduced and common stock is
increased.  EITF 00-19 is applicable to debentures
issued by the Company in instances where the number of shares into which a
debenture can be converted is not fixed.  For example, when a debentures
converts at a discount to market based on the stock price on the date of
conversion.  In such instances, EITF 00-19 requires that the embedded
conversion option of the convertible debentures be bifurcated from the host
contract and recorded at their fair value.   In accounting for
derivatives under EITF 00-19, the Company records a liability representing the
estimated present value of the conversion feature considering the historic
volatility of the Companys stock, and a discount representing the imputed
interest associated with the beneficial conversion feature.  The discount
is then amortized over the life of the debentures and the derivative liability
is adjusted periodically according to stock price fluctuations.  At the
time of conversion, any remaining derivative liability is charged to additional
paid-in capital. For purposes of determining derivative liability, the Company
uses Black-Schoels modeling for computing historic volatility.  46     UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 2  RELATED PARTY
DEBENTURES  The Company previously issued convertible
debentures of $645,132 to Ray Brown, a member of the board of directors.
 Ray Brown assigned   $114,466 of his outstanding convertible
debenture to Joseph Lopez, father of the Companys Chief Executive Officer, Mark
Lopez, as satisfaction on a personal loan. These debentures bear interest at 10%
per annum and were due September 2005, and December 25, 2004, respectively. The
debentures are convertible into common stock of the Company at a discount of 20%
off the closing bid price of the common stock on the date of conversion. The
Company has recorded an accrued interest payable of $11,207for Ray Browns
debenture and $39,200 for Joseph Lopezs debenture as of February 29, 2008.
 During the year ended February 29, 2008, the Company converted $16,566 of
interest and $7,079 of principal due Ray Brown through the issuance of 8,627,463
post-reverse restricted shares of common stock and paid Ray $21,921.51 in cash
for interest due.   The balance due Mr. Brown on his convertible
debenture as of February 29, 2008 is $449,514.  The balance due Joseph
Lopez is $114,466.  In January of 2008 all of the debentures
issued to Compass Capital Corporation, Blue Marble and Reef Holdings totaling
$5,179,954 that remained unpaid by Unico were assigned to Moore Investment
Holdings.  Moore Investment Holdings is controlled by Joseph Lopez, the
father of CEO Mark Lopez. The Company also issued convertible debentures of
$500,000 to Moore Investment Holdings during the fiscal year ending February 29,
2008. The debentures were issued with terms of
180 days, accrued interest at 8% per annum, and converted at a discount of 50%
of the closing bid for the Companys common stock on the date of conversion.  The summary of outstanding related party
debt of $6,243,934 of which $4,744,080 is in default as of February 29, 2008 is
as follows:  Moore Investment Holdings $5,679,954 Ray Brown $449,514 Joseph Lopez $114,466  Total $6,243,934 Less: Discount on debt $747,113 Net related part debt $5,496,821  As of February 29, 2008 the Company has
accrued $355,845 for interest due to related parties in regard to these
outstanding debentures..  NOTE 3  CONVERTIBLE DEBENTURES  During the fiscal year ended February 29,
2008, the Company issued $5,464,954 of convertible debentures that were used
primarily to support subsidiary operations.  The debentures were issued
with terms of 180 days, accrued interest at 8% per annum, and converted at a
discount of 50% of the closing bid for the Companys common stock on the date of
conversion.  The Company recorded interest expense of $5,266,533 during the
year ended February 29, 2008 associated with the debentures and recorded a loss
of $859,016 on the derivative portion of the debentures. The net derivative
liability at February 29, 2008 was $8,311,182.    In January of
2008 all of the debentures issued to Compass Capital Corporation, Blue Marble
and Reef Holdings totaling $5,179,954 that remained unpaid by Unico were
assigned to Moore Investment Holdings, a related party.  As of February 29,
2008 there is only one non-affiliated convertible debenture, in the amount of
$75,000, remaining on the Companys books.  During the year ended February 29, 2008,
the Company entered into a total of 5 settlement transactions in the Twelfth
Circuit (State) Court in Florida stemming from defaulted convertible debentures
totaling $1,025,000.  Unico agreed to settle each action by issuing a total
of 3,926,315,790 shares of its common stock to the note holders.  These
shares were issued pursuant to Section 3(a)(10) of the Securities Act of 1933,
as amended, after a hearing with notice to, and an opportunity to be heard from,
interested parties, as to the fairness of each transaction, by a state court in
Florida which specifically determined, prior to declaring that the transactions
were exempt under Section 3(a)(10), that the transactions were fair to the
interested parties.  As a result of issuing shares under the settlements,
the Company recorded an expense of $7,877,820.  In addition, $68,000 was
paid to the Company from the debenture holders resulting from an adjustment in
the stock price subsequent to the court ordered settlement.  This price
adjustment was treated as an adjustment to additional paid-in capital.  47    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 4 STOCKHOLDERS EQUITY  Common Stock  As of February 29, 2008, the Company had
4,940,363,072 shares of common stock issued and outstanding with 59,636,928
shares authorized but unissued.  During the year ended February 29, 2008 the
Company issued 3,926,315,790 shares of free trading common stock under court
ordered settlement agreements as satisfaction of convertible debentures totaling
$1,025,000 which were in default.  These shares were issued pursuant to
Section 3(a)(10) of the Securities Act of 1933, as amended, after a hearing with
notice to, and an opportunity to be heard form, interested parties, as to the
fairness of each transaction, by a state court in Florida who specifically
determined, prior to declaring that the transactions were exempt under Section
3(a)(10), that the transactions were fair to the interested parties.
  As a result of this settlement, the Company recorded an expense of
$7,877,820 which represented the difference in market value of the stock issued
compared with the value of the stock which would have been issuable under the
conversion terms.  During the year ended February 29, 2008,
the Company issued a total of 8,627,463 shares of common stock on the conversion
of debentures payable plus interest to Ray Brown totaling $23,645.  Stock Options  During the year ended February 28, 2007, all stock
options expired unexercised.  As of February 29, 2008, there were no stock
options outstanding.  Preferred Stock  As of February 29, 2007, the Company had
9,800,000 shares of preferred stock issued and outstanding, all of which is
Series A preferred stock. The Series A
Preferred Stock entitle the holder to elect two of the Companys directors and
is convertible into shares of common stock on a 1:1 basis.  Stock
Payable  During the year ended February 28, 2007,
the Company sold a total of 76,119,033 shares of restricted common stock to a
third party for total consideration of $999,000.  As of February 29, 2008,
these shares had not been issued, resulting in a stock payable.  NOTE 5  LEGAL MATTERS  During the fiscal year ended February 29,
2008, the Company settled six lawsuits filed in the Twelfth Circuit (State)
Court in Florida stemming from defaulted convertible debentures totaling
$1,025,000 and $36,406 of interest.  Unico agreed to settle all of the
actions by issuing a total of 3,926,315,790 shares of its common stock to the
plaintiffs  These shares were issued pursuant to Section 3(a)(10) of the
Securities Act of 1933, as amended, after a hearing with notice to, and an
opportunity to be heard from, interested parties, as to the fairness of each
transaction, by a state court in Florida which specifically determined, prior to
declaring that the transactions were exempt under Section 3(a)(10), that the
transactions were fair to the interested parties.  The Company scheduled a special meeting of
its shareholders on December 21, 2007 at which shareholders were to vote on a
proposal to amend the Companys articles of incorporation to authorize the
Companys board of directors, in its discretion, to effect a reverse stock split
of the Companys common stock at a ratio of up to one-for-five hundred during
the six month period following the date of a special meeting of shareholders.
 On December 17, 2007, plaintiff Legacy Trading Group (Legacy), a
California limited liability company, filed an action against Unico alleging
violation of Section 14(a) and (c) of the Securities Exchange Act of 1934 and
the rules promulgated thereunder, and Arizona Revised Statute § 19-705.
 The action was filed in the United States District Court, Southern
Division of California (Civil No. 07CV 2344-L (RBB)).  Legacy filed an ex
parte application for a Temporary Restraining Order (TRO), contending that
notice of the special meeting of Unicos shareholders and/or  48    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 5  LEGAL MATTERS - continued  the related proxy statement was not
provided to all shareholders.  At a hearing held on December 18, 2007, the
Court granted the application for a TRO, and enjoined and restrained Unico from
holding the special meeting of the shareholders on December 21, 2007 or at any
other time until the preliminary injunction hearing in this matter was heard.
 The preliminary injunction hearing was held on January 8, 2008.
 Plaintiffs application for a preliminary injunction was denied at the
hearing on the grounds of being moot.  Unico believes notice of the special
meeting of Unicos shareholders and the related proxy statement for the December
21, 2007 special meeting were sent to all shareholders entitled to receive such
pursuant to applicable federal proxy rules and the Arizona Revised Statutes.
 However, since the TRO prevented the Company from holding the special
meeting of shareholders on December 21, 2007, the Company rescheduled the
special meeting which was held on January 28, 2008 at 10:00 a.m.  On April 29, 2007, Bromide Basin Mining
Company, LLC was served with a lawsuit filed on April 10, 2008 by Kaibab
Industries, Inc. in Maricopa County, Arizona state court (No. CV2008-008121).
 The plaintiff alleges that Bromide Basin Mining Company, LLC owes $30,000
in rent for the months of May through October 2007, when a mining lease expired.
 The plaintiff also alleges that Bromide Basin Mining Company, LLC has
failed to vacate the premises and that it owes an additional $5,000 per month as
a holdover tenant commencing November 1, 2007 until it vacates the premises.
 The plaintiff has also asked for interest, attorneys fees and court
costs.  Bromide Basin Mining Company, LLC has vacated the premises.  NOTE 6  SUBSEQUENT EVENTS  Subsequent to the fiscal year ending
February 29, 2008, the Company received $575,000 through the issuance of new
convertible debentures.  The new debentures were issued with terms of 180
days, bear interest at the rate of 8% per annum, and are convertible by the
holder into shares of the Companys common stock at a discount of 50% of the
closing bid price on the date of conversion.  NOTE 7  GOING CONCERN  The Companys financial statements are
prepared using accounting principles generally accepted in the United States of
America applicable to a going concern, which contemplates the realization of
assets and liquidation of liabilities in the normal course of business.
 The Company has incurred losses of $60,924,691 from its inception through
February 29, 2008.   It has not established any revenues with which to
cover its operating costs and to allow it to continue as a going concern.  During the next 12 months, the Companys
plan of operation is to raise approximately $2,500,000 for investment into its
subsidiary companies: Deer Trail Mining Company and Silver Bell Mining Company.
The funds are intended for the following purposes during the next twelve months:  § Complete analytical
certification by independent lab, ALS Chemex, and final reporting from
consulting firm, Behre Dolbear & Company (USA), on the logging and shipment
of core samples identified and taken from the completed 2nd phase of
exploratory drilling at the Deer Trail Mine; § Continue sampling and
analyzing mineralized rock samples, stockpiles and dump material from the Deer
Trail Mine to evaluate the most efficient means to conduct future mining and
milling activities; § Expand metallurgical
research department at the Deer Trail Mine and Mill Facility; § Purchase additional lab
equipment for metallurgical purposes; § Upgrade mine
infrastructure and begin underground mining activities including maintenance and
rehabilitation work at the Deer Trail Mine; § Continue to upgrade and
complete the re-construction project on the existing mill at the Deer Trail
Mine; § Upgrade the crushing
facility at the upper Deer Trail Mine and continue screening the ore dumps; § Begin milling and
processing activities at the Deer Trail Mill and Processing Facility; § Acquire new mining
equipment to improve operations at the Deer Trail Mine; § Conduct additional
survey and mapping work on the Clyde and Crown Point mining claims including
improvements to the property and potentially underground and surface exploratory
drilling on the claims; and  49    UNICO, INCORPORATED Notes to the Consolidated Financial
Statements February 29, 2008 and February 28, 2007  NOTE 7  GOING CONCERN  - continued  § Commence a feasibility study on the potential of the mining claims
at the Silver Bell Mine beginning in the Summer of 2008.  Accomplishing the 12-month plan of
operations is dependent on: (a) the Company raising approximately $2,500,000 in
equity and/or debt financing during the next 12 months to be used for the
Companys operations, of which approximately $1,000,000 is needed in the next
120 days.  Subsequent to the fiscal year ending February 29, 2008, the
Company received $575,000 through the issuance of new convertible debentures to
Moore Investments.  The new debentures were issued with terms of 180 days,
bear interest at the rate of 8% per annum, and are convertible by the holder in
shares of the Companys common stock at a discount of 50% of the closing bid
price on the date of conversion.  The Company intends to raise
approximately an additional $1,925,000 during the fiscal year ending February
28, 2009 to fulfill the 12-month plan.    50