**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C.  20549

**FORM 10-K/A**

**Amendment No. 1**

T     ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended**February 28, 2009**

£      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number **000-30239**

**UNICO, INCORPORATED**

(Exact name of small business issuer as specified in its charter)
|                                                                |        |                                   |
|----------------------------------------------------------------|--------|-----------------------------------|
| **Arizona**                                                    |   | **13-4171971**                    |
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

**8880 Rio San Diego Drive, 8th Floor, San Diego, California 92108**

(Address of principal executive offices)

**(619) 209-6124**

(Issuer’s telephone number)
|                                                                |                                                 |
|----------------------------------------------------------------|-------------------------------------------------|
| 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 £       NoT

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 £       NoT

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 T       No£

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K 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-KT

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            £      | Smaller reporting company   T                                                                                                                             |

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes£  No T

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 voting and non-voting 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 second fiscal quarter.  $21,267,729, based on the last sale price of $.15, as reported on the OTC bulletin board on August 29, 2008.

**APPLICABLE ONLY TO CORPORATE REGISTRANTS**

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.  The Registrant had 141,784,859 shares of common stock, $0.001 par value, outstanding as of June 4, 2009.

**DOCUMENTS INCORPORATED BY REFERENCE**

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated:  (1) any annual report to security holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424 (b) or (c) under the Securities Act of 1933.  The listed documents should be clearly described for identification purposes (e.g. annual report to security holders for fiscal year ended December 24, 1980).  None

**EXPLANATORY NOTE**:  The annual report is being amended for the following purposes:

1.     To correct the date of management’s conclusion about the effectiveness of internal control over financial reporting; 

2.     To include a reference from the auditors in their audit report that the inception-to-date information has been audited;

3.

To include restated financial statements that reflect a correction of an error in the way the Company’s convertible debentures are accounted for by basing the accounting on SFAS 150 of the Financial Accounting Standards Board (FASB).  This resulted in changes in the restated financial statements, footnotes, and related management’s discussion and analysis of financial condition.  This accounting correction eliminates the derivative liability, discount on debt, and the derivative loss.  It adds a debenture payable for beneficial conversion, and an accrued interest payable for beneficial conversion, and it changes interest expense.  As a result of this accounting correction, the Company’s accumulated deficit as of February 28, 2009 decreased by $4,008,674, and the Company’s net loss for the fiscal year ended February 28, 2009 decreased by $3,021,016. 

1

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**TABLE OF CONTENTS**
|                                                                                                                                                                                                                                                                                                      |            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| PART I                                                                                                                                                                                                                                                                                               | Page       |
| ITEM 1.        BUSINESS                                                                                                                                                                                                                                           | 3          |
| ITEM 1A.     RISK FACTORS

ITEM 1B.     UNRESOLVED STAFF COMMENTS 

ITEM 2.        PROPERTIES                                                                                                                             | 13

15

16 |
| ITEM 3.        LEGAL PROCEEDINGS                                                                                                                                                                                                                                  | 26         |
| ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                                | 27         |
| PART II                                                                                                                                                                                                                                                                                              |            |
| ITEM 5.        MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS 

                      AND ISSUER PURCHASES OF EQUITY SECURITIES | 27         |
| ITEM 6.        SELECTED FINANCIAL DATA                                                                                                                                                                                                                            | 29         |
| ITEM 7.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

                      AND RESULTS OF OPERATION                     | 29         |
| ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                                          | 31         |
| ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                                                                                                                                                        | 31         |
| ITEM 9.        CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

                      FINANCIAL DISCLOSURE                          | 31

31     |
| ITEM 9A.     CONTROLS AND PROCEDURES                                                                                                                                                                                                                                             | 31         |
| ITEM 9B.     OTHER INFORMATION                                                                                                                                                                                                                                                   | 32         |
| PART III                                                                                                                                                                                                                                                                                             |            |
| ITEM 10.      DIRECTORS EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                                                                                                                                                                         | 32         |
| ITEM 11.      EXECUTIVE COMPENSATION                                                                                                                                                                                                                                        | 36         |
| ITEM 12.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND 

                      RELATED STOCKHOLDER MATTERS                          | 38         |
| ITEM 13.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR 

                      INDEPENDENCE                                               | 39         |
| ITEM 14.      PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                                                                                                                                                                        | 41         |
| ITEM 15.      EXHIBITS, FINANCIAL STATEMENT SCHEDULES                                                                                                                                                                                                                       | 42         |
|                                                                                                                                                                                                                                                                                                 |       |
|                                                                                                                                                                                                                                                                                                 |       |

2

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**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. 

**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 approved a reverse stock split of the Company’s common stock which became effective June 30, 2008.  This enabled the Company to increase the number of authorized, but unissued common shares, so as to permit the conversion of outstanding convertible debentures to shares of the Company’s common stock, and to enable the Company to  raise additional needed capital.  It has also enabled the Company to increase the trading price of the Company’s common stock to a level more acceptable to potential investors.  All share numbers and price per share figures appearing in this Annual Report are expressed in numbers of post-reverse split shares, unless otherwise noted.

**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 exploration 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 exploration company rather than as a BDC subject to the Investment Company Act.   

The exploration and testing 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.. Future exploration 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

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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 exploration activities 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 exploration activities, 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 

4

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mining activities does not exceed 10 acres for both mine and mill. In early 2005, Unico and Deer Trail Mining Company received approval from the Utah Division of Oil, Gas and Mining of the Company's Large-Scale Mining Permit (file number 10311003) 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 exploration project to a large mining exploration project, which is expected to significantly increase the area of 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 exploration 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 on mine exploration 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 mineralized materials per month.  The mineralized materials were 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 old mineralized materials dumps on the upper Deer Trail Mine and moved the materials to the ball mill.  The Deer Trail Mining Company has completed construction of the flotation circuit in the mill to enhance efficiency.   In July 2006, Deer Trail Mining Company completed the upgrades to the screening plant and began screening the old mineralized material 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.  PGM has since requested that the contract be voided based on the fact that their process cannot effectively extract the minerals of the Company’s concentrate.

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 at the Deer Trail Mine. 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 tunnel previously 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 tunnel, 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..The reverse circulation drilling determined that more expensive diamond core drilling is necessary to further determine exact areas to be mined.  Future plans for the complete drilling of this area have been determined but an exact timetable has not been determined.

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 previously mined area. Significant mineralization was intercepted in holes RC-1 and RC-2, which were drilled in the area closest to the main tunnel.  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 tunnel. 

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|                      |                                                                                                            |                                 |                                         |                    |              |
|----------------------|------------------------------------------------------------------------------------------------------------|---------------------------------|-----------------------------------------|--------------------|--------------|
| **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              | 0.205        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-2                 | 40 -- 45....            5                        | 0.364                           | 95.36                                   | 3.61               | 0.390        |
|                 |                                                                                                       |                            |                                    |               |         |
|  Includes  | 175 -- 180             5                       | 0.369                           | 45.71                                   | 2.87               | 1.41         |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-10                | 65-- 95                30       | 0.363                           | 16.48                                   | 0.086              | 0.022        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-11                | 60 -- 70               10            | 1.36                            | 52.25                                   | 0.758              | 0.191        |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 65 -- 70                 5 | 2.26                            | 32.69                                   | 0.961              | 0.289        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-12                | 85 -- 90                 5 | 0.460                           | 137.14                                  | 3.94               | 1.00         |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-17                | 55 -- 65               10            | 0.799                           | 13.02                                   | 0.033              | 0.012        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-18      | 45 -- 50                 5 | 1.54                            | 40.77                                   | 0.154              | 0.018        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-19                | 0 -- 140             140                       | 0.527                           | 14.65                                   | 0.116              | 0.107        |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 35 -- 45               10            | 2.64                            | 14.11                                   | 0.840              | 1.26         |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 35 -- 40                 5 | 4.66                            | 21.15                                   | 1.30               | 2.14         |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 75 -- 120             45                       | 0.930                           | 34.86                                   | 0.135              | 0.021        |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 95 -- 105             10                       | 3.17                            | 88.63                                   | 0.303              | 0.019        |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes             | 100 -- 105             5                       | 4.78                            | 151.02                                  | 0.682              | 0.008        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-20                | 95 – 100                5  | 1.92                            | 62.02                                   | 0.218              | 0.030        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-21                | 95 - 110               15            | 0.899                           | 74.29                                   | 0.145              | 0.014        |
|                 |                                                                                                       |                            |                                    |               |         |
| RC-22           | 110 - 120             10                       | 1.77                            | 18.14                                   | 0.074              | 0.024        |
|                 |                                                                                                       |                            |                                    |               |         |
| Includes   | 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 tunnel 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.

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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 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         | 740                          |
| 2                          | 4400                      | -40                               | 102         | 648                          |
| 3*                         | 4400                      | -42                               | 92          | 782                          |
| 4*                         | 4400                      | -42                               | 150         | 554                          |
| 5*                         | 4400                      | -55                               | 102         | 664                          |
| 6                          | 4400                      | -45                               | 21          | 409                          |
| 7                          | 4400                      | -58                               | 298         | 733                          |
| 8                          | 4400                      | -75                               | 300         | 565                          |
| 9*                         | 4700                      | -45                               | 116         | 460                          |
| 10                         | 4900                      | -75                               | 0           | 460                          |
| 11*                        | 3400                      | +45                               | 258         | 454                          |
| 12*                        | 3400                      | +45                               | 162         | 355                          |
| 13*                        | 3400                      | -65                               | 125         | 420                          |
| Total 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.  Minerals include sphalerite, galena, chalcopyrite, and tetrahedrite-tennantite.  Where the significantly mineralized zones are thicker, the mineralized bands are closer together.

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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            | 0.42            |
|     | 406.6                  | 417.2                | 10.6                     | 1.062             | 177.6             | 0.11            | 0.58            | 1.58            |
|     | 456.0                  | 462.5                | 6.5                      | 0.350             | 156.4             | 0.24            | 1.38            | 2.08            |
|     |                   |                 |                     |              |              |            |            |            |
| 5        | 322.0                  | 327.0                | 5.0                      | 0.870             | 164.1             | 0.25            | 2.09            | 1.27            |
|     | 419.0                  | 419.9                | 0.9                      | 1.510             | 116.0             | 0.27            | 0.35            | 0.18            |
|     |                   |                 |                     |              |              |            |            |            |
| 9        | 293.7                  | 300.1                | 6.4                      | 0.372             | 46.8              | 0.15            | 1.28            | 1.78            |
|     | 434.6                  | 435.6                | 1.0                      | 0.310             | 102.0             | 0.39            | 5.20            | 6.59            |
|     |                   |                 |                     |              |              |            |            |            |
| 11       | 7.7                    | 13.4                 | 5.7                      | 4.564             | 585.1             | 0.45            | 0.71            | 0.83            |
|     | 105.0                  | 110.6                | 5.6                      | 1.600             | 550.6             | 0.96            | 2.0             | 2.43            |
|     |                   |                 |                     |              |              |            |            |            |
| 12       | 5.8                    | 61.0                 | 55.2                     | 0.608             | 183.1             | 0.44            | 0.40            | 0.67            |
|     | 220.0                  | 221.9                | 1.9                      | 2.170             | 128.0             | 0.01            | 0.01            | 3.32            |
|     |                   |                 |                     |              |              |            |            |            |
| 13       | 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. forgeological services at Unico’s Deer Trail Mine. The new agreement and work order adds several 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 

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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 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, Utah*has 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 the early part of fiscal year 2010 the Company has determined to do a comprehensive channel sampling program throughout all three levels of the 3400 Area in planned concert with a partner in order to re-confirm the tenor and tonnage prior to establishing additional mine headings*.*This will be the next phase of exploration*.* Later in the fiscal year 2010 we plan to establish an indicated and/or measured reserve in the 8600 Area with underground or surface drilling.  This would include the area beyond the 1980 working face as well as the untested interval of the projected Toroweap mineralized body between the PTH Tunnel and the terminal levels of the Upper Mine.  Later in the fiscal year 2010 we also plan to test the potential in the Mississippian with a 6 to 10 hole program adjacent to known feeder structures in both the 3400 and 8600 Areas.  Based on the size of the existing mineralized bodies it is anticipated that the size of this area will be many multiples of that of the original combined Toroweap mineralized body in the Upper Mine and 8600 Area of the Lower Mine.  

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.

**Mill Tailings Current Extraction Plans**

The grade and tonnage of the tailings and dumps present at the Upper Mine site will be re-confirmed by grid auger drilling.  All economically prospective mill tailings and dumps existing on the property, as well as possibly from other nearby mines will be re-processed and the precious metals contained within them recovered.  This will be accomplished when installation of the acid leach circuit at the Deer Trail Mill has been completed and is operational.

**Exploration Time Table and Budget**

Additional exploration has been planned but no time or budget has been established to complete this work.

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**Phased Program - Plan for Incremental Mine Development**

The six-point plan listed below outlines our proposed plan of action.  The bases of the plan is that profits from the easily established acid leach recovery of precious metals from the Upper Mine’s tailings and possibly backfill can be utilized to finance exploration and development of the 3400 Area and ultimately the 8600 Area as well as other potential targets in successive stages. Details on the grade, tonnage, and planned processing of the oxidized material present at the Upper Mine can be found in the Deer Trail Mining Company’s Mining Engineer’s summary reports (Appendix II).

1.

Complete the acid leach circuit and begin processing the 100,000 tons of mill tailings. 

2.

Systematically sample the 100,000 tons of backfill****in the Upper Mine. 

3.

Systematically sample and, if warranted, drill the most prospective portions of the 3400 Area.  Re-commence mining if warranted and up-grade equipment as necessary.  

4.

Establish at indicated and/or measured reserves in the 8600 Area with underground or surface drilling.  This would include the area beyond the 1980 working face as well as the untested interval of the projected Toroweap mineralized body between the PTH Tunnel and the terminal levels of the Upper Mine.  

5.

Rehabilitate the 8600 Area workings including rails, timbers, electrical system, ventilation system, hoist, etc.  Bore mandatory escape raise connecting the PTH Tunnel with the Upper Mine and re-commence mining in the 8600 Area.

6.

Test the potential in the Mississippian with a 6 to 10 hole program adjacent to known feeder structures in both the 3400 and 8600 Areas.  Anticipated size is many multiples of that of the original combined Toroweap mineralized body in the Upper Mine and 8600 Area of the Lower Mine.  

**Plans to Conduct Exploration**

The time and budget have not been established for this program.

**Funding for Exploration Programs**

It is anticipated that funding for most exploration programs will be generated through one or more of the following:

1.

Sale of Au-Ag-Zn-Pb-Cu concentrate.

2.

Acquiring joint venture partners.

3.

Private stock placements.

**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 further exploration work to evaluate the claims prior to commencing any future mining activities on the claims.  Silver Bell Mining Company anticipates that if there are any future mining activities at the Silver Bell Mine, materials mined will be transported to the Deer Trail Mine site where they can be crushed, milled and processed.  Silver Bell Mining Company may also seek a joint venture mining partner to jointly develop the Silver Bell Mine, if exploration work suggests that future mining is commercially viable.  

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.  

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**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 exploration activities 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 exploratory studies to evaluate 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: 

·

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 mineralized material dumps;

·

Construct large tailings pond for large scale processing.

·

Begin milling and processing activities at the Deer Trail Mill and Processing Facility;

·

Acquire new mining equipment to improve exploration activities 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 exploration work to evaluate the potential of the mining claims at the Silver Bell Mine beginning in the Summer of 2009

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 processing of concentrates generated from the mill will be processed on site or at a leaching plant in Phoenix owned by an unrelated party.  Gold, silver and tellurium will be extracted from the concentrates.  All base metals will be stored to be shipped later in rail car lots to smelters in Canada or Mexico.

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**Dependence on Metal Prices**

Unico's 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 precious metal prices have been beneficial to mining companies, and may increase Unico's ability to acquire new capital. 

**Competition**

Unico competes with many mining exploration 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 terminated mining exploration projects, and some mining companies have closed mining operations in past years due to low metal prices. Some exploration and mining operations have been consolidated through mergers or other acquisitions. Recent increases in metal prices have helped exploration and mining companies in expanding operations and in their efforts to acquire new capital. 

**Employees**

During the fiscal year ended February 28, 2009 the Company and its subsidiaries had a total of 21 employees. Currently, the Company including subsidiaries has 15 full time employees, 1 part time employee and 4 consultants.  The full time employees include a CEO, CFO, general manager, senior engineer/mine manager, metallurgist and geologist. Unico believes the number of employees may increase to approximately 30 within the next twelve months. In the event the exploration activities are successful, additional employees may be added in the future. 

**Governmental Regulation**

Exploration, 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 exploration and 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 be able to fully develop the properties in the future. 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. 

Exploration and 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 exploration activities are subject to periodic inspections by MSHA which, depending on the outcome of an inspection, could curtail exploration activities 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 $221,526 in reclamation bonds with the U.S. Forest Service and the Utah Division of Oil, Gas and Mining. As Unico expands its exploration activities 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:

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·

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-K. 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**

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.  Even though, we anticipate that we will generate revenues in the coming year we will still need to raise substantial amounts of capital to provide for increased processing capacity.  External financing will be required for future expansion as well.  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. 

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**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 28, 2009 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. 

**Most of our officers and directors lack previous mining experience; and this may affect the Company’s ability to succeed**

It should be noted that not all of the officers and directors of Unico have technical training and experience with exploring for, starting, and/ or operating a mine, and as such may not be fully aware of many specific requirements and important factors related to this industry.  Wayne Ash, the Company’s president, is the only officer or director with an extensive mining background. This lack of mining experience may affect decisions made by management, and ultimately the operations, and financial results of the Company.

**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 Officer.  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.

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**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:

·

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..

**TEM 1B.**

**UNRESOLVED STAFF COMMENTS**

There is an outstanding comment letter from the Securities and Exchange Commission relating to the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2008 that has not been resolved.  Since Unico is not an accelerated filer, a large accelerated filer or a well-known seasoned issuer, as those terms are defined in applicable rules, and since the comments were received less than 180 days before the end of the fiscal year covered by this Annual Report, Unico is not required to disclose the substance of any unresolved comments in this report.  Nevertheless, Unico amended its Annual Report for the fiscal year ended February 29, 2008 in the effort to resolve the outstanding comments.

15

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**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.

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.

16

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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 mineralized body was first discovered by deer hunters in 1878. The mineralized body originally cropped out at the surface. It is estimated that between 1878 and 1917, about 10,000 tons of mineralized materials were mined. A small mill was installed in 1918, and between 1918 and 1923 the mine produced about 138,000 tons of predominately oxidized mineralized materials 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 mineralized materials, 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 mineralized body. The 3,400 mineralized body was encountered unexpectedly by this tunnel and a total of 5,000 tons of mineralized materials 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 mineralized body. From 1964 until 1981 this segment of the mineralized body produced over 100,000 tons of unoxidized sulfide mineralized materials averaging 5% lead, 0.6% copper, 12% zinc, 15 opt silver, and 0.10 opt gold. The present working face is still in mineralized material. 

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, a fully operational lab 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. 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 taken a few small lots of mineralized materials from the stopes in the 8600 area of the PTH tunnel for testing and evaluation purposes, and has identified several excellent targets within those workings. In April 2001, Unico began limited exploration activities which were concentrated in the 3400 area of the mine until underground exploration activities 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 exploration activities at the Deer Trail Mine in late 2004.  Underground exploration activities have focused on infrastructure improvements during this past fiscal year along with continuing the exploration and testing of mineralized areas.

Following is a map of the area where the Deer Trail Mine is located along with a map of the claims owned by the Deer Trail Mining Company, LLC.

17

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18

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19

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**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 mineralized area 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 mineralized area 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 mineralized material. The Queantoweap Formation, which underlies the Toroweap, is a quartzite and hosts no known mantos. The underlying Callville Limestone contained the 3400 mineralized area. 

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 mineralized area rakes across this inclination with a bearing of N 701 W, so the average plunge of the mineralized 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. 

The Deer Trail mineralized area consists of a semicontinuous group of narrow, elongate strata-bound replacement bodies developed adjacent to a central vein. The mineralized area 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. 

**No Reserves -**None of the Deer Trail Mines has ever had measured or indicated ore reserves as currently defined by the Securities and Exchange Commission.  All four companies that previously conducted mining operations between the periods of 1878 and 1980 simply “followed the mineralized area” or its projected trend (Table 1).  This method was undertaken at the Upper (Old) Mine from 1878 to 1942 and in the Lower (New) Mine from 1945 to 1980.  Production at the former was terminated by Presidential Order because of World War II while exploitation of the latter ceased due to the precipitous and prolonged price decline of precious metals.****In both cases there was no lack of prominent mineralization.  The advent of much higher metal prices, particularly with regard to silver and gold, now makes potential mining of the Deer Trail Mine more attractive.  However, the grade and tonnage of the extensions need to be documented with modern methods such as core drilling and re-sampling of the drifts in order to establish any reserves.  Unico has no immediate plans to try to establish any reserves.

**TABLE 1 – SUMMARY OF MOST PRODUCTIVE PERIODS OF THE UPPER (OLD)**

**AND LOWER (NEW) DEER TRAIL MINE, PIUTE COUNTY, UTAH**
|                                         |          |        |                        |           |           |        |        |        |
|-----------------------------------------|----------|--------|------------------------|-----------|-----------|--------|--------|--------|
| **MINE**                                | **FROM** | **TO** | **TONNAGE**            | **AU**    | **AG**    | **ZN** | **PB** | **CU** |
| **Upper Deer Trail Mine (8)**           | 1918     | 1923   | 138,000                | 1.380 opt | 11.49 opt | NA     | 3.26%  | NA     |
|                                    |     |   |                   |      |      |   |   |   |
| **3400 Area Lower Deer Trail Mine**     | 1945     | 1962   |  12,226 of 25,600 | 0.171 opt | 11.61 opt | 7.45%  | 2.96%  | 0.52%  |
|                                    |     |   |                   |      |      |   |   |   |
| **8600 Area Lower Deer Trail Mine (1)** | 1964     | 1980   | 100,000                | 0.100 opt | 15.00 opt | 12.00% | 5.00%  | 0.60%  |

Methods for delineating the stratabound mineralization ahead of the respective working faces has historically primarily been limited to following visible mineralization in successive rounds of blasting and mucking.  However, this has been augmented by considerable longhole and up-hole percussion drilling

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**Milling Facilities** - In the late 1990’s, Unico began re-conditioning the Lower Mine and in 2000 began constructing a 250 ton/day floatation mill at the old town site of Alunite to process mineralized areas from both the 3400 and 8600 Areas of the mine.  The facility was completed in 2007 and was active until mid-January 2009 when activities were temporarily suspended due to both large and small producers of precious metal-bearing base metals began having extreme difficulty with refineries and smelters buying their concentrates.  As a result, an additional process will be added to the mill to extract the precious metals.  

**Exploitation of The Upper and Lower Deer Trail Mines**

**Upper Deer Trail Mine**

Upper Mine Geological Justification**-**The Upper (Old) Deer Trail Mine is hosted by the Permian Toroweap Sandstone and lies about 800 feet above the Pennsylvanian Callville Limestone that hosts the Lower (New) Deer Trail Mine.  Intervening between these two mineralized formations is the Permian Queantoweap Sandstone which carries no known mineralization.  This supergene gold-bearing oxide deposit has been incompletely exploited by over 6,900 feet of workings contained in a 3,300 foot long X 300 feet wide and 30 feet thick.  The latter two dimensions average 30 to 50 feet wide and 15 to 30 feet high (Beaty et al, 1986).  The workings exploited a series of inter-connected iron and manganese oxide manto-type mineralized areas whose original continuity is locally disrupted by several east-northeasterly-trending internal faults with relatively small displacement.  The distribution of the mantos here appears to be related to the axis of a northwesterly-trending anticline that plunges at an angle slightly greater than the regional dip of about 20o to the northwest.  

The Upper Deer Trail Mine’s primary period of production was from its discovery in 1878 though 1927.   Subsequent lesser efforts extended through 1942.  Production records from 1878 to 1917 indicate that metals with a contemporaneous value of $150,000 were extracted from approximately 10,000 tons of mineralized materials (Butler, et al, p. 557; Beaty, et al, 1986). Later from 1918 to 1923, 138,000 tons of mineralized materials averaging 1.38 opt gold, 11.49 opt silver, and 3.26 percent lead was mined from the Upper (Old) Deer Trail Mine (Callaghan, 1973 and Table 1).  However, zinc and copper were not recovered (Beaty et al, 1986, p. 1933; Bennett, 2000).   

Upper Mine Current Extraction Plan - Extreme high-grading of the deposit took place because of the mine’s relatively remote location and need to maximize the value/ton of mineralized materials as well as to reduce transportation cost; the cut-off grade was reportedly 0.5 opt Au. Thus a considerable amount of material that was formerly considered waste but that is now economic at 2008 prices remains in the workings as both un-mined wallrock and mineralized coarse back-fill (gob).  

**Lower Deer Trail Mine**

Lower Mine Geological Justification - Extensive mining of laterally extensive silver and gold-bearing zinc-lead-cupper-rich sulphide beds (mantos) has been conducted within two separate areas of the Lower (New) Deer Trail Mine over the past 63 years (1945-2008).  However, the main period of activity took place over an interval of 36 years from 1945 to 1971 and from 1976 to 1980.  The sulphide mineralization from both mantos has or will be processed by the on-site Deer Trail Mill.

1.

3400 Area Geological Justification – The 3400 Area of Lower (New) Deer Trail Mine is hosted in the Pennsylvanian Callville Limestone and is comprised of approximately 5,000 feet of development workings.  The mineralization has been developed on the same mineralized bed (manto) on each of the three levels that are 100 vertical feet apart.  However, core drilling in 2005 by the Deer Trail Mining Company indicates that it is but one of a series of over 30 stacked thin mantos that occur over a vertical interval of approximately 600 feet (Fig. 4 and 4a, 4b, & 4c).  These mantos are comprised by single or multiple mineralized layers that are generally 0.3 to 1.6 feet thick within 1.0 to 6.0 foot thick beds (Beaty, Rohtert, and McGrane, 1982; Beaty and Stegen, 1983; Beaty, et al, 1986).  The known mineralized bodies here are up to 250 feet wide, 4,200 feet long, and open down-dip (Beaty, Rohtert, and McGrane, 1982).  Later work by Behre Dolbear (2007) documents that composite mantos commonly occur over intervals of 2.0 to 10.0 feet that locally range up to potentially mineable intervals of 30 feet.  These extend over 1,300 feet from at least the 3100 Area to the 4400 Area of the mine.  

*The 3400 Area contains the oldest stopes of the Lower Mine.  It was mined on three levels primarily between 1945 and 1962 and briefly in 1981.*  *Production statistics providing insight into its overall grade only exist for about half of the estimated 25,600 tons mined (Table 3).  Weight-averaged calculations performed in August 2008 by the Deer Trail Mining Company using Concentrator Return Settlement Sheets document that approximately 48% (12,226 tons) of the estimated 25,600 tons apparently selectively mined during six separate years between 1945 to 1981 averaged 0.171 opt Au, 11.61 opt Ag, 7.45 percent Zn, 2.96 percent Pb, and 0.52 percent Cu.  More recently bulk mining by the Deer Trail Mining Company undertaken from 2002 to 2004 yielded 2,000 tons averaging 0.055 opt gold, 8.40 opt silver, 1.65 percent zinc, 1.58 percent lead, 0.289 percent copper.  *

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***TABLE 3 – KNOWN 3400 AREA PRODUCTION, LOWER (NEW) DEER TRAIL MINE,***

***PIUTE COUNTY, UTAH (DOCUMENTED BY DEER TRAIL MINING COMPANY, 2008).***
|               |                 |               |                 |           |           |           |           |
|---------------|-----------------|---------------|-----------------|-----------|-----------|-----------|-----------|
| **YEAR**      | **TONNAGE**     | **AU**        | **AG**          | **CU**    | **PB**    | **ZN**    | **ZN/PB** |
|          |            |          |            |      |      |      |      |
| **1945**      | 5,000 tons      | 0.190 opt     | 15.17 opt       | 0.76%     | 2.84%     | 6.26%     | 2.2/1     |
|          |            |          |            |      |      |      |      |
| **1946-1959** | NA              | NA            | NA              | NA        | NA        | NA        | NA        |
|          |            |          |            |      |      |      |      |
| **1960**      | 370 tons        | 0.170 opt     | 10.46 opt       | 1.19%     | 2.03%     | 9.01%     | 4.4/1     |
|          |            |          |            |      |      |      |      |
| **1961**      | 2,199 tons      | 0.190 opt     | 7.42 opt        | 0.29%     | 2.78%     | 10.86%    | 3.9/1     |
|          |            |          |            |      |      |      |      |
| **1962**      | 1,209 tons      | 0.060 opt     | 7.50 opt        | 0.22%     | 4.04%     | 4.71%     | 1.2/1     |
|          |            |          |            |      |      |      |      |
| **1963-1980** | No Prod         | 8600          | Area            | Only      | Mined     |      |      |
|          |            |          |            |      |      |      |      |
| **1981**      | 3,048 tons      | 0.190 opt     | 11.08 opt       | 0.36%     | 3.18%     | 8.78%     | 2.8/1     |
|          |            |          |            |      |      |      |      |
| **1982-2001** | No Prod         | Extended      | Period  of | Depressed | Metal     | Prices    |      |
|          |            |          |            |      |      |      |      |
| **2002**      | 500 tons        | Not in total  | or wgt avgs     |      |      |      |      |
|          |            |          |            |      |      |      |      |
| **2003**      | 500 tons        | Not in total  | or wgt avgs     |      |      |      |      |
|          |            |          |            |      |      |      |      |
| **2004**      | 500 tons        | 0.055 opt     | 8.40 opt        | 0.29%     | 1.58%     | 1.65%     | 1.0/1     |
|          |            |          |            |      |      |      |      |
| **2005-2007** | No Prod         |          |            |      |      |      |      |
|          |            |          |            |      |      |      |      |
| **2008**      | 500 tons        | Not in total  | or wgt avgs     |      |      |      |      |
|          |            |          |            |      |      |      |      |
| **Wgt Avg**   | **12,326 tons** | **0.171 opt** | **11.61 opt**   | **0.52%** | **2.96%** | **7.45%** | **2.6/1** |

3400 Area Current Extraction Plan - A comprehensive channel sampling program throughout all three levels of the 3400 Area is planned in concert with a partner in order to re-confirm the tenor and tonnage prior to establishing additional mine headings.

2.

8600 Area Geological Justification –The 8600 Area is the more newly developed portion of the Lower (New) Deer Trail Mine and was exploited from 1964 and 1980.  It constitutes the down-faulted northwesterly extension of the Upper (Old) Deer Trail Mine Au-Ag-Zn-Pb-Cu blanket-type (manto) mineralized body; both mines are hosted by the Permian Toroweap Sandstone.  The 8600 Area segment is +2,300 foot long X 20 to 100 foot wide X 10 to 40 foot thick segment of the deposit and is comprised by unoxidized zinc, lead, and silver sulphides whereas the 3,300 foot long portion in the Upper (Old) Deer Trail Mine the former minerals have been completely converted to iron, manganese, zinc, and lead oxides.  The 8600 Area sulphide portion of the mineralization is comprised by a group of closely related mantos that flank a northwesterly-trending, steeply dipping limonitized vein known as the Red Fissure. Individual mantos are strata-bound and are as much as 10 feet thick; ore minerals are massive in nature. The mineralization is typically thickest at its intersection with the near-vertical structure.  The largest individual Toroweap-hosted manto observed to date in the 8600 Area is more than 600 feet long, 60 feet wide, and 10 feet thick (Beaty, et al 1986; Deer Trail Mining Company Mine Maps, 2008).  The latter two dimensions constitute the working face when mining operations ceased by the end of 1980 due to poor economic conditions (personal communication, Dr. Richard Kennedy, 2006).

A total of 100,000 tons of un-oxidized sulphide mineralized materials were produced from the 8600 Area from 1964 to 1980 (Table 1); it averaged and 0.100 opt gold, 15.00 opt silver, 12.0 percent zinc, 5.0 percent lead, and 0.6 percent copper (Beaty et al, 1986, p. 1933; Bennett, 2000).  Behre Dolbear’s (2007) independent compilation on the tonnage and grades produced during the same period largely corroborates the previously reported figures. Their work yielded 66,800 tons averaging 0.099 opt Au, 10.80 opt Ag, 12.76 percent Zn, 7.74 percent Pb, and 0.21 percent Cu; details for individual years are listed in Table 4.

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***TABLE 4 - KNOWN 8600 AREA PRODUCTION, LOWER (NEW) DEER TRAIL MINE - 1964 to 1980***

***(INDEPENDENTLY DOCUMENTED BY BEHRE DOLBEHR, 2007a).***
|                   |                 |               |                 |            |           |            |           |
|-------------------|-----------------|---------------|-----------------|------------|-----------|------------|-----------|
| **YEAR**          | **TONNAGE**     | **GOLD**      | **SILVER**      | **COPPER** | **LEAD**  | **ZINC**   | **ZN/PB** |
|              |            |          |            |       |      |       |      |
| **1963**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1964**          | 15,119 tons     | 0.170 opt     | 5.74 opt        | 0.04%      | 5.74%     | 10.00%     | 1.7/1     |
|              |            |          |            |       |      |       |      |
| **1965**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1966**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1967**          | 8,876 tons      | 0.150 opt     | 11.13 opt       | 0.15%      | 7.40%     | 14.20%     | 1.9/1     |
|              |            |          |            |       |      |       |      |
| **1968**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1969 & 1970**   | 31,798 tons     | 0.075 opt     | 15.23 opt       | 0.38%      | 9.27%     | 15.86%     | 1.7/1     |
|              |            |          |            |       |      |       |      |
| **1971-1976**     | No Prod         | Midvale       | Mill            | Closed     |      |       |      |
|              |            |          |            |       |      |       |      |
| **1976**          | Unknown         | 0.050 opt     | 9.30 opt        | 0.22       | 9.30%     | 10.40%     | 1.1/1     |
| **1976**          | ~100 tons       | 0.051 opt     | 15.50 opt       | NA         | 14.50%    | 26.60%     | 1.8/1     |
|              |            |          |            |       |      |       |      |
| **1977**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
| **1977 (4 days)** | 224.4           | 0.040 opt     | 8.69 opt        | 0.15%      | 9.58%     | 1.56%      | 0.16/1    |
|              |            |          |            |       |      |       |      |
| **1978**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1979**          | 6,199           | 0.026 opt     | 4.50 opt        | 0.12%      | 4.90%     | 7.20%      | 1.5/1     |
|              |            |          |            |       |      |       |      |
| **1980**          | 4,487           | 0.032 opt     | 4.60 opt        | 0.15%      | 4.10%     | 5.30%      | 1.3/1     |
|              |            |          |            |       |      |       |      |
| **1981**          | NA              | NA            | NA              | NA         | NA        | NA         |      |
|              |            |          |            |       |      |       |      |
| **1982-2001**     | No Prod         | Extended      | Period  of | Depressed  | Prices    | Metal      |      |
|              |            |          |            |       |      |       |      |
| **2002-2007**     | No Prod         |          |            |       |      |       |      |
|              |            |          |            |       |      |       |      |
| **Wgt Avg**       | **66,803 tons** | **0.099 opt** | **10.80 opt**   | **0.21%**  | **7.47%** | **12.76%** | **1.7/1** |

8600 Area Current Extraction Plan – Re-development of the 8600 Area is currently being sought via acquisition of a joint venture partner.  Once funds are available, the grade and tonnage lying ahead of the 1980 working face ahead will be documented.  Subsequently, minimal rehabilitation of the workings will be implemented and a critical new escape-way (raise) mandated by MSHA regulations will be undertaken, and mining resumed.

**Mill Tailings at Upper (Old) Deer Trail Mine** - An estimated 80,300 to 132,540 tons of oxidized mill tailings are present at the site of the Upper (Old) Deer Trail Mine Millsite; grades average from 0.031 to 0.04 opt Au and 2.62 to 8.0 opt Ag (Unico, Inc. Internal Data, 2004; Behre Dolbear, 2007).  Behre Dolbear’s (2007) evaluation of the same historical data from 1990 and 1993 systematic sampling programs of the same material are summarized in the Table 5.  

23

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**TABLE 5 - SUMMARY OF TONNAGES, GRADES, AND CONTAINED OUNCES OF PRECIOUS METALS**

**OF 2007 EVALUATION AS COMPARED TO PREVIOUSLY REPORTED QUANTITIES –**

**UPPER (OLD) DEER TRAIL MINE TAILINGS, PIUTE COUNTY, UTAH (BEHRE DOLBEAR, 2007b)**

**(Behre Dolbear’s estimates for contained ounces of gold and silver were obtained by summing gridded values, not by multiplication of ounces and tons)**
|                                                                       |                           |                       |                         |                                     |                                       |
|-----------------------------------------------------------------------|---------------------------|-----------------------|-------------------------|-------------------------------------|---------------------------------------|
| **SOURCE**                                                            | **SHORT**

** TONS** | **AVG**

**GOLD OPT** | **AVG**

**SILVER OPT** | **CONTAINED**

**GOLD**

**OUNCES** | **CONTAINED**

**SILVER**

**OUNCES** |
| **BD 2007 - Energy Fuels 1990**

**Lower (Natural Neighbor Est.)**    | 80,300                    | 0.031 opt             | 2.62 opt                | 2,500 oz                            | 218,300 oz                            |
|                                                                  |                      |                  |                    |                                |                                  |
| **BD 2007 - Energy Fuels 1990**

**Higher (Min. Curvature Est.)**     | 102,500                   | 0.031 opt             | 2.70 opt                | 3,100 oz                            | 294,000 oz                            |
|                                                                  |                      |                  |                    |                                |                                  |
| **BD 2007 - Ecology Mining 1993**

**Lower (Natural Neighbor Est.)**  | 82,400                    | NA                    | NA                      | NA                                  | NA                                    |
|                                                                  |                      |                  |                    |                                |                                  |
| **BD 2007 - Ecology Mining 1993**

**Higher – (Min. Curve Est)** | 103,400                   | NA                    | NA                      | NA                                  | NA                                    |
|                                                                  |                      |                  |                    |                                |                                  |
| **1990 Energy Fuels Internal Est.**

**(Pratt to Andrus Memo)**       | 132,540                   | 0.031 opt             | 2.66 opt                | NA                                  | NA                                    |
|                                                                  |                      |                  |                    |                                |                                  |
| **2004 Wayne Ash Compilation**                                        | 105,000                   | 0.031 opt             | 2.85 opt                | NA                                  | NA                                    |
|                                                                  |                      |                  |                    |                                |                                  |
| **2002 Unico, Inc Compilation**                                       | 123,000                   | 0.040 opt             | 8.00 opt                | NA                                  | NA                                    |

**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 mineralized bodies economically. Deer Trail Mining Company is evaluating whether cyanide may be used in processing its mineralized materials. 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 previously 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. Exploration drilling has been conducted. Several prospective targets have been 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. 

**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. 

24

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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 6,000 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 mineralized materials averaging 100 ounces per ton in silver. The workings consisted of an adit and a winze and mineralized materials were lowered down the mountain by means of a cable and rail system. The mine was enlarged to accommodate larger equipment in 1980 and some mineralized areas averaged 22 ounces in silver per ton of mineralized materials. 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 mineralized materials 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 explore and possibly develop the Silver Bell Mine. Silver Bell Mining Company anticipates that any mineralized materials removed 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 exploration studies 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.

**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.

25

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**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**

On August 14, 2008, Unico shareholders Randall Sullivan, Barry Raykoske, and Jack Reilly filed a derivative lawsuit on behalf of Unico against Ray C. Brown, Kenneth C. Wiedrich, Mark A. Lopez, Shane Traveller, Javelin Advisory Group, Inc., and Unico (as a nominal defendant) in the Superior Court of the State of California, San Diego County Central Division (Case No. 37-2008-0008901-CU-PN-CTL).  The plaintiffs allege that the named defendants breached fiduciary duties owed to Unico, and were negligent in the approval of certain financing transactions entered into on behalf of Unico.  The plaintiffs seek no less than $20 million in damages from the named defendants, as well as injunctive relief, interest, attorney's fees, and court costs.  Plaintiffs are seeking a determination that they are appropriate representatives of Unico shareholders to bring a derivative suit, which is a prerequisite to bringing such a claim under California Corporations Code section 800.  The defendants deny any liability, and are defending the lawsuit.  Since the claims are made against officers, a director and other third parties, Unico does not believe that its assets are at risk in this proceeding except to pay legal defense costs until the insurance deductible has been met. 

On September 30, 2008, a lawsuit was filed by Cache Valley Electric Company against Unico, Incorporated in the Third Judicial District Court for Salt Lake County, State of Utah (Case No. 080921346) in which the plaintiff alleges that it provided goods and services to Unico in the amount of $191,615, for which it has not received payment.  The plaintiff alleges that Unico breached the contract by failing to pay for the goods and services, and is seeking a money judgment against Unico in the amount of $191,615 together with interest thereon at the statutory rate and court costs.  On March 2, 2009, a Default Judgment was entered against Unico in the amount of $216,291.  Unico subsequently entered into the Unico Incorporated Settlement Agreement, dated March 27, 2009 (“Settlement Agreement”).  The Settlement Agreement provides that Unico is to pay Cache Valley Electric Company $216,291as follows: Unico is to make six monthly payments in the amount of $6,000 per month beginning April 25, 2009; six monthly payments of $10,000 per month beginning October 25, 2009; seven monthly payments of $15,000 per month; and a final monthly payment of $15,291.  The Settlement Agreement further provides that if the payments are made as set forth above, no further action will be taken against Unico.  If the payments are not received within a ten-day grace period following the respective due dates, the entire unpaid balance less any payments made will become due and payable immediately, and no rights as to the recovery of that amount, including all legal fees, court costs, and interest due will have been waived by virtue of the Settlement Agreement.  The Settlement Agreement further provides that when the settlement amount is fully funded, Cache Valley Electric Company is to execute and file a Release of Judgment for the full amount of the claim.  Finally, the Settlement Agreement provides that if a Lien against Unico has been filed, Cache Valley Electric Company is to file a Release of Lien with the clerk of the Third Judicial District Court for Salt Lake County immediately upon receipt of the final payment.  

On or about January 5, 2009, a lawsuit was filed by Atlas Mining Company, an Idaho corporation, dba Atlas Fausett Contracting against Deer Trail Mining Company, LLC in the Sixth Judicial District Court for Piute County, State of Utah (Case No. 0090600001) in which the plaintiff alleges that it provided certain mine rehabilitation services and materials with respect to the Deer Trail Mine pursuant to a written contract for which it has not been paid.  The plaintiff alleges that Deer Trail Mining Company, LLC breached the contract by failing to pay for the services and materials, and is seeking a money judgment against Deer Trail Mining Company, LLC for at least $182,144 plus interest at 18% per annum, plus costs.  Plaintiff is also seeking a court order adjudging a mining lien filed by the plaintiff against the Deer Trail Mine on or about July 9, 2008 to be a good and sufficient lien on the Deer Trail Mine securing payment of the obligations under its contract with Deer Trail Mining Company, LLC, and ordering that the Deer Trail Mine be foreclosed and sold by the sheriff of Piute County, with the sales proceeds being applied against the amount due and owing to plaintiff from the Deer Trail Mining Company, LLC and to the foreclosure costs.  Deer Trail Mining Company, LLC has filed an Answer denying liability. The case is now in the discovery phase. Deer Trail Mining Company, LLC is also attempting to negotiate a settlement of the lawsuit.

On March 23, 2009,a lawsuit was filed by Workers Compensation Fund, a Utah non-profit corporation, against Unico Incorporated in the Third Judicial District Court for Salt Lake County, State of Utah (Case No. 090904860)in which the plaintiff alleges that it provided workers’ compensation insurance coverage to Unico for the policy period February 6, 2007 to February 5, 2008.  The plaintiff alleges that the sum of $14,245 remains due on the account, together with accrued interest.  The plaintiff alleges that it is entitled to recover damages in the principal amount of $14,245, plus interest at the rate of 8% per annum, plus court costs and a reasonable attorneys fee.  Unico Incorporated has filed an Answer denying liability.  Unico Incorporated is also attempting to negotiate a settlement of the lawsuit.

26

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On December 18, 2008, a lawsuit was filed by ISCO Industries, LLC against Unico, Incorporated in the Superior Court of California, County of San Diego (Case No. 37-2008-00098400-CL-CL-CTL) in which the plaintiff sought to recover money owed for goods and/or services provided, interest thereon and attorney’s fees.  The defendant did not file an Answer in the case, and a default judgment was entered against Unico, Incorporated for $29,153.  Unico, Incorporated believes that a smaller amount is actually owing, and Unico is attempting to settle the judgment for a lesser amount.   

Unico received a Subpoena Duces Tecum dated November 3, 2008 captioned “In the Matter of Certain Unregistered Offerings/HO-10859” requesting copies of various documents, most of which are related to certain fund raising efforts in which Unico engaged through the issuance of convertible debentures, and the settlements of many of those convertible debentures that Unico defaulted on.  The holders of the debentures or their assignees filed a large number of actions in Florida State Court which were eventually settled by Unico, Incorporated and the various debenture holders/assignees by agreeing to issue substantial number of shares of Unico common stock at prices that were significantly discounted from the then existing market prices for Unico shares, in court approved settlements.  Certain officers and/or directors of Unico received similar subpoenas from the SEC, and depositions of those officers or directors were taken in March 2009.  No action has yet been taken by the Securities and Exchange Commission against Unico and/or its officers and directors following the depositions.

**ITEM 4.**

**SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

No matter was submitted to a vote of our security holders, through the solicitation of proxies or otherwise, during the fourth quarter of the fiscal  year covered by this report.

**PART II**

**ITEM 5.**

**MARKET FOR REGISTRANT’S COMMON EQUITY, 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 “UNCO”. 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 28, 2009, 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 500 reverse stock split that occurred June 30, 2008, as though the reverse stock split had occurred February 28, 2007.
|                |        |                |        |               |
|----------------|--------|----------------|--------|---------------|
| Quarter Ending |   | Quarterly High |   | Quarterly Low |
| 5/31/2007      | $      | 4.65           | $      | 1.05          |
| 8/31/2007      | $      | 1.70           | $      | .50           |
| 11/30/2007     | $      | 1.05           | $      | .30           |
| 2/29/2008      | $      | .45            | $      | .20           |
| 5/31/2008      | $      | .35            | $      | .20           |
| 8/31/2008      | $      | 1.00           | $      | .02           |
| 11/30/2008     | $      | .21            | $      | .025          |
| 2/28/2009      | $      | .05            | $      | 004           |

Based on its trading price, our common stock is considered a “penny stock” for purposes of federal securities laws, and therefore has been subject to certain regulations, which are summarized below.

The Securities Enforcement and Penny Stock Reform Act of 1990 requires special disclosure relating to the market for penny stocks in connection with trades in any stock defined as a “penny stock.”  Specifically, Rules 15g-1 through 15g-9 under the Securities Exchange Act of 1934 (the “Exchange Act”) impose sales practice and disclosure requirements on NASD broker-dealers who make a market in a “penny stock.”  Securities and Exchange Commission regulations generally define a penny stock to be an equity security that has a market price of less than $5.00 per share and is not listed on The NASDAQ SmallCap Stock Market or a major stock exchange. These regulations affect the ability of broker-dealers to sell the Company’s securities and also may affect the ability of purchasers of the Company’s common stock to sell their shares in the secondary market.

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Under the penny stock regulations, a broker-dealer selling penny stock to anyone other than an established customer or “accredited investor,” generally, an individual with net worth in excess of $1,000,000 or an annual income exceeding $200,000, or $300,000 together with his or her spouse, must make a special suitability determination for the purchaser and must receive the purchaser’s written consent to the transaction prior to sale, unless the broker-dealer or the transaction is otherwise exempt. In addition, the penny stock regulations require the broker-dealer to deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt. A broker-dealer is also required to disclose commissions payable to the broker-dealer and the registered representative and current quotations for the securities. Finally, a broker-dealer is required to send monthly statements disclosing recent price information with respect to the penny stock held in a customer’s account and information with respect to the limited market in penny stocks.

  

As long as the penny stock regulations apply to the Company’s stock, it may be difficult to trade such stock because compliance with the regulations can delay and/or preclude certain trading transactions.  Broker-dealers may be discouraged from effecting transactions in the Company’s stock because of the sales practice and disclosure requirements for penny stock. This could adversely affect the liquidity and/or price of the Company’s common stock, and impede the sale of the Company’s stock.

**Holders of Record**

As of June 6, 2009 there were approximately 625 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 28, 2009, 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, 2008 through February 28, 2009, Unico issued convertible debentures (“Debentures”) aggregating approximately $1,908,000 to Moore Investment Holdings that were unpaid, and of which $1,287,584 are in default.  The Debentures provide that the principal amount and accrued interest are 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.

From March 1, 2008 through February 28, 2009, 18,499,874 shares of common stock were issued in connection with the exercise of conversion rights by the holders of the Debentures, 2,762,655 shares of common stock were issued to Ray Brown for the conversion of interest and principal, and 4,680,050 shares of common stock were issued for services.  All of these shares were issued in reliance on Section 4(2) of the Securities Act of 1933 for transactions not involving any public offering.  Certificates representing the shares were appropriately restricted, except as removal of the restricted legend was permitted under Rule 144(b)(1).   

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, 2007 and February 29, 2008 please refer to Unico's annual reports on Form 10-KSB for the fiscal years ended February 28, 2007, and February 29, 2008, respectively, and to Unico’s quarterly reports on Form 10-QSB or Form 10-Q for the quarters ended May 31, 2007 and 2008, August 31, 2007 and 2008 and November 30, 2007 and 2008.

**Equity Compensation Plans**

The Company currently has no approved compensation plans under which equity securities of the Company are authorized for issuance.

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**ITEM 6.**

**SELECTED FINANCIAL DATA**

A smaller reporting company is not required to provide the information specified by this item.

**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: 

·

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 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 mineralized material dumps;

·

Construct large tailings pond for large scale processing;

·

Begin milling and processing activities at the Deer Trail Mill and Processing Facility;

·

Acquire new mining equipment to improve exploration activities 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 exploration work to evaluate potential of the mining claims at the Silver Bell Mine beginning in the Summer of 2009.

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 28, 2009, the Company received $412,500 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 $2,087,500 during the fiscal year ending February 28, 2010 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 28, 2009 the Company had $417 in current assets and the Company’s total liabilities exceeded total assets by approximately $12,442,081.  The Company has accumulated $65,253,493 of net operating losses through February 28, 2009, which may be used to reduce taxes in future years through 2029. 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.  The flotation circuit of the mill was completed in the first quarter of 2009 and concentrate was produced but was not able to be sold because of the collapse of the concentrate market.    As a result we have developed a process to extract the gold, and silver out of the concentrates.  We expect to have the system set up for this extraction process in June of 2009 with sales of gold and silver to begin in July of 2009.  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 $4,776,238 in the year ended February 28, 2009, from a deficit of ($7,665,843) as of February 29, 2008 to a deficit of ($12,442,081) as of February 28, 2009.  

The Company’s cash as of February 28, 2009 was only $417, but as explained above, the Company has raised $412,500 through the issuance of convertible debentures since February 28, 2009 to sustain operations.  The Company intends to raise an additional 

29

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$6,587,500 during the current fiscal year.  As explained above, the Company needs to raise approximately $6,587,500 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 better terms than through issuance of debentures at a 50% discount, 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 28, 2009.  Unico reported no revenues for the fiscal year ended February 29, 2008.  Unico anticipates that it will begin to generate revenues from mining operations in the fiscal year ending February 28, 2010.

Unico incurred total operating expenses of $2,281,660 during the fiscal year ended February 28, 2009, an increase of $220,419 from the total operating expenses of $2,061,241 incurred during the fiscal year ended February 29, 2008.  The increase was primarily attributed to an increase of $433,807 in salaries and wages, an increase of $126,545 in depreciation and accretion, and an increase in general and administrative expense of $93,107, partially offset by a decrease of $341,985 in drilling, exploration and maintenance expense and a decrease of $91,055 in professional fees, salaries and wages increased as construction ended and production of the concentrates began.  The big decrease in drilling, exploration and maintenance expense was due to the fact the Company rehabilitated the PTH tunnel in the previous fiscal year and very little was expensed for mine rehabilitation during the fiscal year ended February 28, 2009.

During the fiscal year ended February 28, 2009, Unico incurred interest expense of $3,040,636, a decrease of $3,026,556 from the $6,067,192 of interest expense incurred during the fiscal year ended February 29, 2008. The Company attributes the decrease in interest expense in the later period, to a decrease in the amount of convertible debentures issued for the current period compared to the prior period.  Loss on settlement of debt was $0 in the fiscal year ended February 28, 2009, a decrease of $7,877,820 from the $7,877,820 loss on settlement of debt incurred in the fiscal year ended February 29, 2008.  Unico attributes the decrease in loss on settlement of debt in the later period to the fact that the defaulted debentures were converted at the contracted rate of 50% discount and that none were settled in the later period through the issuance of additional shares of the Company’s common stock at substantial discounts through court ordered settlements as they were in the previous fiscal period.  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 $8,066,952 of outstanding debentures as of February 28, 2009 (of which approximately $7,488,932 were then in default), Moore Investment Holdings, LLC did not  seek the issuance of any shares through court ordered settlements as prior debentures holders had done. 

For the year ended February 28, 2009 the Company had a net loss of $5,316,462, or approximately ($0.36) per share, attributable to ongoing operations.  Of this loss $3,040,636 was attributable to interest expense from financing operations.  For the year ended February 29, 2008, the Company incurred a loss of $15,981,571.  The decrease in loss this year of $10,665,109 is primarily due to a $7,877,820 decrease in loss on settlement of debt, along with a decrease in interest of $3,026,556, partially offset by an increase in operating expenses of $220,419.   

**Defaults Upon Senior Securities.**

As of February 28, 2009 the Company had $8,066,952 of convertible debentures that were due and payable.  Of this amount, $7,448,952 is in default and is due to the following:

Moore Investment Holdings, LLC

$6,810,530

Joseph Lopez

     114,466

Ray Brown

     448,956

C. M. Anderson

       75,000

Total in default

$7,448,952

 Of the remaining debentures that are due and payable, $150,000 defaulted in March, 2009, $150,000 defaulted in April, 2009, $125,000 defaulted in May, 2009 and $125,000 will default in June, 2009, if not paid.  

The Company has also recorded a liability for the 20% to 50% discount conversion rights of the debentures.  As of February 28, 2009 the total liability of the beneficial conversion for the debentures is $7,954,267 and the total liability for the interest portion of the debentures is $834,179. 

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All of the outstanding convertible debentures that were due to Reef Holdings, Compass Capital Corporation, and Blue Marble were purchased by and 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 six (6) lawsuits were filed in the fiscal year ended February 29, 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.  During the fiscal year ending February 29, 2008 7,852,632 shares of common stock were issued pursuant to the litigation settlements.  Unico did not issue any shares through Section 3(a)(10) settlements during the fiscal year ended February 28, 2009.

**ITEM 7A.**

**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

A smaller reporting company is not required to provide the information specified by this item.

**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**

Not applicable.

**ITEM 9A(T).**

**CONTROLS AND PROCEDURES**

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of management, Mark A. Lopez, acting as our chief executive officer, and Kenneth C. Wiedrich, acting as our chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”), as of February 28, 2009. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective 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 communicated to our chief executive officer and chief financial officer, in a manner that allowed for timely decisions regarding required disclosure.

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported within the required time periods and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.  The effectiveness of any system of disclosure controls and procedures is subject to certain limitations, including the exercise of judgment in designing, implementing, and evaluating the controls and procedures, the assumptions used in identifying the likelihood of future events, and the inability to eliminate improper conduct completely.  A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.  As a result, there can be no assurance that our disclosure controls and procedures will detect all errors or fraud.

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Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act.  Our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with generally accepted accounting principles.  Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements.  Therefore, even those systems determined to be effective can provide only reasonable, not absolute, assurance of achieving their control objectives.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

This amended Annual Report contains financial statements that have been restated as described in the third paragraph of the Explanatory Note near the beginning of this report.  The financial statements were restated to correct an error.  The error did not occur as a result of ineffective controls over financial reporting.  The error occurred because of complex accounting issues.  Our management, including our principal executive officer and principal accounting officer, conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework.  Based upon this evaluation our management, including the Chief Executive Officer and Principal Financial Officer, has concluded that our internal controls over financial reporting were effective as of February 28, 2009.  

During the quarter ended February 28, 2009, there has been no change in our internal controls over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. 

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only the management’s report in this annual report.

**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 June 9, 2009 are as follows: 
|                            |                                        |                                    |
|----------------------------|----------------------------------------|------------------------------------|
| **Name**                   | **Age**       | **Position**                       |
| Mark A. Lopez    | 45                                     | CEO                                |
| Wayne M. Ash               | 69                                     | President                          |
| Kenneth Wiedrich           | 62                                     | Chief Financial Officer            |
| C. Wayne Hartle            | 72                                     | Secretary and Director             |
| Edward E. Winders          | 68                                     | Director                           |
| Ray C. Brown               | 86                                     | Chairman of the Board of Directors |

Each director of the Company serves for a term of one year and until his successor is elected at the Company's annual shareholders' meeting and is qualified, subject to removal by the Company's shareholders.  Two of the directors are elected by the holders of the Company’s Series A Preferred Stock.  Each officer serves, at the pleasure of the board of directors, for a term of one year and until his successor is elected at the annual meeting of the board of directors and is qualified.

Currently, there is no arrangement, agreement or understanding between management and non-management stockholders under which non-management stockholders may directly or indirectly participate in or influence the management of our affairs. Present management openly accepts and appreciates any input or suggestions from stockholders.  However, the board is elected by the stockholders and the stockholders have the ultimate say in who represents them on the board.  There are no agreements or understandings for any officer or director to resign at the request of another person and none of the current offers or directors are acting on behalf of, or will act at the direction of any other person.

The business experience for at least the last five years of each of the persons listed above is as follows: 

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***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 46 years of wide-ranging international experience as a professional mining engineer, and manager of engineering and geology, manager of operations for base and precious metal mines.  In his early years Mr. Ash worked as an underground and open pit miner including Shift Boss.  Countries in which he has conducted major projects as both an employee and consultant include Canada, United States, Indonesia, Mexico, Central America, and South America.   His work includes simultaneous planning for as many as eight mines, safety training, underground mine design and development, reserve calculation, mill design and construction, and major feasibility and processing studies.  Some companies with which he has been associated include Canadian Johns-Manville, Hudson Bay Mining and Smelting, Northair Mines, Adtec Mining Consultants, Candorado, and.  Mr. Ash holds respective Mining Technician and Mining Engineering degrees from the Haileybury School of Mines (Ontario) and Michigan Technological University.  In addition to serving as President of Unico, Inc. since 2003 he is also been a Director of Mosquito Consolidated Gold Mines. 

***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. 

***Ed Winders*** has been a director of Unico since April 2009.  Edward E. Winders is a professional with over 35 years of high level executive management experience. Dr. Winders, who holds a Ph.D. has substantial experience as a Board member and as a senior executive with for-profit firms over his long and distinguished career. In those roles, Dr. Winders was instrumental in developing and implementing strategies and plans for companies facing serious financial challenges, turning them into successful operations. He has played major roles in administrative, planning, financial and business development.

Most recently, Dr. Winders was President and CEO of Transnational Public Policy Advisors (TPPA), an international development firm that provided consultancy and training in 15 countries throughout the world focusing on leadership development, coalition building, civil society development and microenterprise and small business initiatives. In June of last year, he merged TPPA with Voices for Global Change, a 501(c)(3) not-for-profit organization that specializes in micro-enterprise development and institution and capacity building in transitional countries in Africa and Asia and was named Chair of that organization.

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In the various corporate positions that Dr. Winders has held including high-level positions in state and local government in his home state of New York, Dr. Winders developed policies and procedures that optimized employee participation, strengthened performance and morale, measured and evaluated productivity, and improved the quality of work with the end result of more effectively achieving and strengthening an organization's cohesiveness and outputs and goals.

Significant Employees

Other important employees and/or consultants of Unico include the following:

**Charles M. Madsen, General Manager –**Mr. Madsen has over 10 years of managerial related to the following: hands-on mill design and construction experience, mining and mineral processing, supply and equipment procurement, expediting, and personnel scheduling.  He also has an intimate knowledge of the historical development and mining of the Upper and Lower Deer Trail Mines.  Mr. Madsen has primary responsibility for the Safety Program on the property and is an MSHA-certified trainer.  

**L. Alex Scarbrough, Jr., Chief Geologist –**Mr. Scarbrough has 34 years experience as a hard minerals geologist and project manager.  Past projects include those located in 25 of the Lower 48 States, Alaska, and Ontario.  His primary background is in the generation and management of stratabound and stratiform base and precious metal deposits in carbonate, black shale, and metamorphic environments.  He has also worked extensively with various types of gold and Redbed-type copper deposits.   Mr. Scarbrough has held long-term positions of responsibility with some of the world's largest mining companies including BHP, Cominco, and Noranda.  He has also been employed by a host of other organizations including the following: Houston Oil & Minerals, Tenneco Minerals, Nicor Mineral Ventures, USMX, Savage Zinc, Colorado Geologic Survey, Behre Dolbear, and Inspiration Mining Corporation (Canada).  Mr. Scarbrough undertook both his undergraduate and graduate studies at what is now the University of Memphis from 1968-1975.

**Dr. Edgar Blanco, Chief Metallurgist –**Dr. Blanco****will focus much of his attention on the mill and processing facility at the Deer Trail Mine. Included in his work at the facility will be development of the reagent schematic and mineral characteristics for the floatation circuit, and he will direct the implementation of adjustments that are necessary as testing phases at the facility are initiated. Prior to joining Deer Trail Mining Company, Mr. Blanco spent over a decade working in various positions with the Southern Peru Copper Corporation, including serving as supervisor of the chemical laboratory, concentrator, copper smelter bed minerals preparation and other departments of the corporation. Mr. Blanco has an extensive education and experience related to high temperature chemical processing and mineral processing and has supervised crews of 60 workers in three shifts. Mr. Blanco received his Bachelor of Science degree in Metallurgical Engineering from the Universidad Nacional Jorge Bas, in Peru, his Master of Science degree in Metallurgical Engineering from the University of San Agustin, Arequipa in Peru and is currently completing his Ph.D. in Metallurgical Engineering from the University of Utah. Mr. Blanco is a member of the Minerals, Metals and Materials Society and the Society of Mining Metallurgy and Exploration. He has published several articles on metals concentrate processing.

**Dean Misantoni, Consulting Mine Geologist** - Mr. Misantoni has extensive experience in underground metals mines in over twenty-five years as a geologist, consulting geologist, senior geologist and related positions. Most recently, Mr. Misantoni served as senior geologist for the Sweet Home Mine in Alma, Colorado. In this capacity, he provided underground surveying, geologic mapping and modeling in a complex, narrow vein environment. In previous positions, Mr. Misantoni conducted geologic mapping and drill target generation over 100 square kilometer concession; was responsible for layout and implementation of underground core drilling program and subsequent reserve calculations; supervised geologic mapping, core logging and reserve calculations in a low sulfidation, epithermal vein district; and was involved in all phases, feasibility through production, of an underground gold mine. Mr. Misantoni graduated with a B.S. in Geology from Southern Illinois University and an M.S. in Economic Geology from Colorado State University.

**Dr. Richard Kennedy, Consulting Geologist** – Dr. Kennedy has been a consultant to UNICO since 1992. He acquired his B.S. and M.S. in Geology from Brigham Young University in 1960 and a PhD from the University of Arizona in 1963, specializing in Economic Geology, Petrology, Mineralogy and Structural Geology. Dr. Kennedy has worked as a Geologist and Consultant for Minex, Phelps Dodge Corporation, Cominco American, Inc., amongst others, and from 1964-1975 he was President of Minerals Exploration and Mining Co. and served on the Board of Directors of Mineral Energy, Inc. and Petro-Nuclear, Ltd. In 1963, Dr. Kennedy earned a Teaching Certificate from the University of Utah and has been a Professor of Geology at Southern Utah State College since 1977. In 1984, Dr. Kennedy was honored by Southern Utah State College as an 'Outstanding Educator.' Dr. Kennedy has many research credits to his name in the field of Geology and has published four papers on the geology of Utah and the southwest United States. He is currently a member of the Geological Society of America. Before his arrangement with UNICO, Dr. Kennedy was a consultant for the Deer Trail Development Corporation from 1964-1975.

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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, person nominated to become a director, executive officer, promoter or control person of Unico:

(1) was a general partner or executive officer of any business which filed a petition in bankruptcy or against which any bankruptcy petition was filed, either at the time of the bankruptcy or two years prior to that time; or

(2) was convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); or

(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 him from or otherwise limiting his involvement in the following activities:

(i) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Commission, or an associated person of any of the foregoing, or as an investment adviser,  underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

(ii) Engaging in any type of business practice; or

(iii) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; or

(4) was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (3)(i) above, or to be associated with persons engaged in any such activity; or

(5) was found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission to have violated any Federal or State securities law, and the judgment in such civil action or funding by the Commission has not been subsequently reversed, suspended, or vacated; or

(6) was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated.

**Meetings**

During the year ended February 28, 2009 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 had no arrangement for compensating its directors in the past, but has agreed to compensate Edward Winders for his service on the board.  Terms of Dr. Winders’ compensation are now being finalized.

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**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, 2009, except for the following:

From approximately mid-November 2008 through approximately February 25, 2009, Patrick R.E. Davis owned approximately 10% or more of the then issued and outstanding shares of the Company’s common stock.  The Company believes that Dr. Davis made several sales of the Company’s common stock during this time period, and that Dr. Davis filed most of his Form 4 reports late during this time period.

**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.

**Nominating Committee**

The Company does not have a standing nominating committee or a committee performing similar functions. Due to the Company's size, it is difficult to attract individuals who would be willing to accept membership on the Company's Board of Directors.  Therefore, the full Board of Directors would participate in nominating candidates to the Board of Directors.  The Company did not have an annual meeting of shareholders in the past fiscal year.

**Other Committees**

We presently do not have a compensation committee, executive committee of our Board of Directors, stock plan committee or any other committees.

**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 28, 2009 and February 29, 2008 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 28, 2009.

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**Summary Compensation Table**

|                                |                                              |                                        |                            |        |                         |        |                                 |                          |
|--------------------------------|----------------------------------------------|----------------------------------------|----------------------------|--------|-------------------------|--------|---------------------------------|--------------------------|
|                           |
|                           | **Annual Compensation**                      |                                   | **Long Term Compensation** |
|                           |                                         |                                   |                       |   |                    |   |
| **Name and PrincipalPosition** | **Fiscal**

**Year**

**Ended**

**Feb. 28** | **Salary**                             | **Bonus**                  |   | **Stock**

**Award(s)** |   | **All Other**

**Compensation** | **Total**                |
| Mark A. Lopez, CEO             | 2009                                         | $    150,000            | $-0-                       |   | --                      |   | --                              | $ 150,000                |
| Kenneth Wiedrich, CFO          | 2009                                         | $      82,000 | $-0-                       |   | --                      |   | --                              | **$   **82,000 |
| Mark A. Lopez, CEO             | 2008                                         | $    150,000            | $-0-                       |   | --                      |   | --                              | $ 150,000                |
| Kenneth Wiedrich, CFO          | 2008                                         | $      82,000 | $-0-                       |   | --                      |   | --                              | $   82,000     |

**Cash compensation**

Columns have been omitted from the Summary Compensation Table above for option awards, non-equity incentive plan compensation and changes in pension value and nonqualified deferred compensation earnings since there were none.

Except as described above, no cash compensation, deferred compensation or long-term incentive plan awards were issued or granted to the officers or directors of Unico named in the table above during the fiscal years ended February 28, 2009 and February 29, 2008.  Further, no member of Unico’s management was granted any option or stock appreciation rights during the last two fiscal  years.  Accordingly, no tables relating to such items have been included within this Item 11.

There are no present plans whereby Unico will issue any of its securities to management, promoters, their affiliates or associates in consideration of services rendered or otherwise, except Unico expects to issue approximately 5,000,000 shares of its common stock to Edward Winders.  The terms of this stock issuance are being finalized.

**Employment contracts and termination of employment and change-in-control arrangements**

There are no employment contracts, compensatory plans or arrangements, including payments to be received from Unico with respect to any executive officer of Unico which would in any way result in payments to any such person because of his or her resignation, retirement or other termination of employment with Unico or its subsidiaries, any change in control of Unico or a change in the person's responsibilities following a change in control of Unico.

Nor are there any agreements or understandings for any director or executive officer to resign at the request of another person.  None of Unico’s directors or executive officers is acting on behalf of or will act at the direction of any other person. 

**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.

**Compensation pursuant to plans; pension table**

There were no stock awards, restricted stock awards, stock options, stock appreciation rights, long-term incentive plan compensation or similar rights granted to any of our officers or directors.  None of our officers or directors presently holds directly any stock options or stock purchase rights. We have no retirement, pension, profit sharing, or other plan covering any of our officers and directors.

We have adopted no formal stock option plans for our officers, directors and/or employees. We reserve the right to adopt one or more stock options plans in the future.  Presently we have no plans to issue additional shares of our common or preferred stock or options to acquire the same to our officers, directors or their affiliates or associates, except we anticipate issuing 5,000,000 shares of our common stock to Edward Winders for his service as a director.  Terms of this stock issuance are now being finalized.

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**Compensation of Directors**

Unico has no present arrangement for compensating its directors.  However, terms are being finalized concerning compensation to be paid to Edward Winders for his service as a director.

**Other compensation**

None.

**Compensation Committee Interlocks and Insider Participation**

The Company has no compensation committee, and the function of the compensation committee is handled by the Board of Directors.  

**Compensation Committee Report**

The Company has no compensation committee, and the function of the compensation committee is handled by the Board of 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 June 3, 2009 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             |   | 100

5,401,968                                              |   | Common

Series A Preferred |   | *

55%                                 |
| Wayne Ash

President                               |   | 4                                                           |   | Common                     |   | *                                      |
| Kenneth Wiedrich

Chief Financial Officer          |   | -                                                           |   | Common                     |   | -                                      |
| Wayne Hartle

Secretary                            |   | 5,315,014

348,989                                          |   | Common

Series A Preferred |   | 3.7%

4%                               |
| Ray C. Brown (3)

Director                         |   | 6,435,493

  3,549,043                            |   | Common

Series A Preferred |   | 4.5%

36%                              |
| Edward E. Winders

Director                        |   | 105,000(4)                                                  |   | Common                     |   | *                                      |
| All directors and executive officers 

(6 persons) |   | 11,855,611

  9,300,000                           |   | Common

Series A Preferred |   | 8.3%

95%                              |

***Less than 1%.**

(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 141,784,859 shares of common stock and 9,800,000 shares of Series A Preferred Stock outstanding as of June 3, 2009. 

(3)  In addition to the shares listed above as being beneficially owned by Mr. Brown, as of June 3, 2009, Mr. Brown held convertible debentures in the principal amount of $448,956, 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.

(4) Although only 105,000 shares of Unico’s common stock were owned by Edward Winders as of June 3, 2009, it is anticipated that 5,000,000 shares will be issued to Dr. Winders in the near future for his service as a director.

All shares held by the executive officers, directors and principal shareholders listed above are “restricted or control securities” and are subject to limitations on resale. The shares may be sold in compliance with the requirements of Rule 144, after a minimum six months holding period has been met.  

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Rule 13d-3 generally provides that beneficial owners of securities include any person who directly or indirectly has or shares, voting power and/or investment power with respect to such securities; and any person who has the right to acquire beneficial ownership of such security within 60 days. 

Any securities not outstanding which are subject to options, warrants or conversion privileges exercisable within 60 days are treated as outstanding for the purpose of computing the percentage of outstanding securities owned by that person.  But such securities are not treated as outstanding for the purpose of computing the percentage of the class owned by any other person.

**Changes in control**

There are no present arrangements or pledges of Unico’s securities, known to management, which may result in a change in control of Unico.

**Securities Authorized for Issuance under Equity Compensation Plans**

The Company has no equity compensation plans that have been approved by the Company’s security holders or the Board of Directors.  There presently are no securities authorized for issuance under any equity compensation plans.  There are no outstanding options, warrants or rights to acquire securities of the Company.

**ITEM 13.**

** CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE**

Transactions with Management and Others

During the two fiscal years ended February 28, 2009, 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 the lesser of $120,000 or one percent of the average of the Company’s total assets at year-end for the last two completed fiscal years, in which any related person (as defined in Item 404 of Regulation S-K) had a direct or indirect 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 debenture 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 debentures automatically convert into common stock at the same rate.  During the fiscal year ended February 29, 2008, Mr. Brown converted $16,567of accrued interest and $7,079 of principal for which he received 17,255 shares of Unico common stock.  During the fiscal year ended February 28, 2009, Mr. Brown converted $37,708 of accrued interest and $558 of principal for which he received 2,762,655 shares of Unico common stock.  As of February 28, 2009, the principal balance of the convertible debentures held by Mr. Brown and Mr. Joseph Lopez, father of Chief Executive Officer Mark Lopez, was $448,956 and $114,486, respectively.  Mark Lopez and Mr. Hartle held no debentures as of February 28, 2009.     

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:  two debentures in the fiscal year ending February 29, 2008 totaling $500,000, and 30 debentures in the fiscal year ending February 28, 2009 totaling $1,908,000.  Unico received $2,408,000 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. 

39

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**Policies and Procedures for Review, Approval or Ratification of Transactions with Related Persons**

Our board of directors reviews, and must approve any related person transactions before such transactions are engaged in by the Company.  A related person means any person who is, or at any time since the beginning of our last fiscal year was, a director or executive officer of the Company or a nominee to become a director of the Company; any person who is know to be the beneficial owner of more than 5% of any class of our voting securities; any immediate family member of any of the foregoing persons, which means any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the director, executive officer, nominee or more than 5% beneficial owner, and any person (other than a tenant or employee) sharing the household of such director, executive officer, nominee or more than 5% beneficial owners; and any firm, corporation, or other equity in which any of the foregoing persons is employed or is a general partner or principal or is a similar position or in which such person has a 5% or greater beneficial ownership interest.  Our board of directors reviews these related person transactions and considers all of the relevant facts and circumstances available to the board of directors, including (if applicable) but not limited to; the benefits to us; the availability of other sources of comparable products or services; the terms of the transaction; and the terms available to unrelated third parties or to employees generally.  The board of directors may approve only those related person transactions that are in, or are not inconsistent with the best interests of us and of our stockholders, as the board of directors determines in good faith.  At the beginning of each fiscal year, the board of directors will review any previously approved or ratified related person transactions that remain ongoing and have a remaining term of more than six months.  The board of directors will consider all of the relevant facts and circumstances and will determine if it is in the best interests of us and our stockholders to continue, modify or terminate these related person transactions.

**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 presently have one director, Edward Winders, 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

40

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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 Edward Winders is an independent director under these rules.  Specifically, Dr. Winders:

·

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

**ITEM 14.**

**PRINCIPAL ACCOUNTANT FEES AND SERVICES**

**Audit Fees**

During the fiscal years ended February 28, 2009 and February 29, 2008, 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 $37,800 and $37,100, respectively. 

**Audit Related Fees**

None

**Tax Fees**

During the fiscal years ended February 28, 2009 and February 29, 2008, the aggregate fees billed by HJ Associates & Consultants, LLP, for preparation of taxes were $5,000 and $0 respectively. 

**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 2009 and 2008 were $0 and $0, respectively. 

**Audit Committees Pre-approval Policies and Procedures**

Our Board of Directors serves as our audit committee.  The audit committee's policy is to pre-approve all audit and permissible non-audit services provided by the independent auditors. These services may include audit services, audit-related services, tax services, and other services. Pre-approval is generally provided for up to one year, and any pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. The independent auditors and management are required to periodically report to the audit committee regarding the extent of services provided by the independent auditors in accordance with this pre-approval and the fees for the services performed to date. The audit committee may also pre-approve particular services on a case-by-case basis.

41

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**ITEM 15.         EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

(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-K.  Each management contract or compensatory plan or arrangement required to be filed as an exhibit to this Form 10-K has been identified.
|                 |                                                                                                                                                                                                                                               |              |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| **Exhibit No.** | **Description**                                                                                                                                                                                                                               | **Location** |
| 3.1             | 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)          |
| 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)          |

42

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|        |                                                                                                                                                       |      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| 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) |
| 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) |

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|        |                                                                                                           |      |
|--------|-----------------------------------------------------------------------------------------------------------|------|
| 10.106 | Convertible Debenture No 65 for $199,854.09 dated December 11, 2007 issued to Blue Marble Investments     | (12) |
| 10.107 | Convertible Debenture No 66 for $25,000 dated January 4, 2008 issued to Compass Capital Group, Inc.       | (12) |
| 10.108 | Convertible Debenture No 67 for $15,000 dated January 15, 2008 issued to Compass Capital Group, Inc.****  | (12) |
| 10.109 | Convertible Debenture No 68 for $35,000 dated January 18, 2008 issued to Blue Marble Investments          | (12) |
| 10.110 | Convertible Debenture No 69 for $250,000 dated January 23, 2008 issued to Moore Investment Holdings, LLC  | (12) |
| 10.111 | Convertible Debenture No 70 for $250,000 dated January 30, 2008 issued to Moore Investment Holdings, LLC  | (12) |
| 10.112 | Convertible Debenture No 71 for $40,000 dated March 10, 2008 issued to Moore Investment Holdings, LLC     | (13) |
| 10.113 | Convertible Debenture No 72 for $10,000 dated March 11, 2008 issued to Moore Investment Holdings, LLC     | (13) |
| 10.114 | Convertible Debenture No 73 for $250,000 dated March 13, 2008 issued to Moore Investment Holdings, LLC    | (13) |
| 10.115 | Convertible Debenture No 74 for $200,000 dated March 27, 2008 issued to Moore Investment Holdings, LLC    | (13) |
| 10.116 | Convertible Debenture No 75 for $50,000 dated April 23, 2008 issued to Moore Investment Holdings, LLC     | (13) |
| 10.117 | Convertible Debenture No 76 for $25,000 dated May 9, 2008 issued to Moore Investment Holdings, LLC        | (13) |
| 10.118 | Convertible Debenture No 77 for $85,000 dated May 29, 2008 issued to Moore Investment Holdings, LLC       | (13) |
| 10.119 | Convertible Debenture No 78 for $25,000 dated June 11, 2008 issued to Moore Investment Holdings, LLC      | (14) |
| 10.120 | Convertible Debenture No 79 for $45,000 dated June 19, 2008 issued to Moore Investment Holdings, LLC      | (14) |
| 10.121 | Convertible Debenture No 80 for $25,000 dated June 30, 2008 issued to Moore Investment Holdings, LLC      | (14) |
| 10.122 | Convertible Debenture No 81 for $10,000 dated July14, 2008 issued to Moore Investment Holdings, LLC       | (14) |
| 10.123 | Convertible Debenture No 82 for $25,000 dated July 16, 2008 issued to Moore Investment Holdings, LLC      | (14) |
| 10.124 | Convertible Debenture No 83for $100,000 dated July 18, 2008 issued to Moore Investment Holdings, LLC      | (14) |
| 10.125 | Convertible Debenture No 84 for $100,000 dated July 23, 2008 issued to Moore Investment Holdings, LLC     | (14) |
| 10.126 | Convertible Debenture No 85 for $200,000 dated August 7, 2008 issued to Moore Investment Holdings, LLC    | (14) |
| 10.127 | Convertible Debenture No 86 for $100,000 dated August 25, 2008 issued to Moore Investment Holdings, LLC   | (14) |
| 10.128 | Convertible Debenture No 87 for $25,000 dated September 10, 2008 issued to Moore Investment Holdings, LLC | (15) |

44

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|        |                                                                                                            |                |
|--------|------------------------------------------------------------------------------------------------------------|----------------|
| 10.129 | Convertible Debenture No 88 for $25,000 dated September 16, 2008 issued to Moore Investment Holdings, LLC  | (15)           |
| 10.130 | Convertible Debenture No 89 for $100,000 dated September 25, 2008 issued to Moore Investment Holdings, LLC | (15)           |
| 10.131 | Convertible Debenture No 90 for $100,000 dated October 14, 2008 issued to Moore Investment Holdings, LLC   | (15)           |
| 10.132 | Convertible Debenture No 91 for $50,000 dated October 27, 2008 issued to Moore Investment Holdings, LLC    | (15)           |
| 10.133 | Convertible Debenture No 92 for $75,000 dated November 6, 2008 issued to Moore Investment Holdings, LLC    | (15)           |
| 10.134 | Convertible Debenture No 93 for $50,000 dated November 25, 2008 issued to Moore Investment Holdings, LLC   | (15)           |
| 10.135 | Convertible Debenture No 94 for $50,000 dated December 5, 2008 issued to Moore Investment Holdings, LLC    | (16)           |
| 10.136 | Convertible Debenture No 95 for $25,000 dated December 10, 2008 issued to Moore Investment Holdings, LLC   | (16)           |
| 10.137 | Convertible Debenture No 96 for $50,000 dated December 24, 2008 issued to Moore Investment Holdings, LLC   | (16)           |
| 10.138 | Convertible Debenture No 97 for $35,000 dated January 7, 2009 issued to Moore Investment Holdings, LLC     | (16)           |
| 10.139 | Convertible Debenture No 98 for $24,000 dated January 21, 2009 issued to Moore Investment Holdings, LLC    | (16)           |
| 10.140 | Convertible Debenture No 99 for $7,500 dated February 19, 2009 issued to Moore Investment Holdings, LLC    | (16)           |
| 10.141 | Convertible Debenture No 100 for $1,500 dated February 26, 2009 issued to Moore Investment Holdings, LLC   | (16)           |
| 14     | 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 herewith |
| 31.2   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002         | Filed herewith |
| 32.1   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002         | Filed herewith |
| 32.2   | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002         | Filed herewith |
| 99.1   | 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.

(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.

45

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(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.

(12) Incorporated by reference from Unico’s Annual Report on Form 10-K for the Fiscal Year Ended January 29, 2008 filed on June 3, 2008.

(13) Incorporated by reference from Unico’s Quarterly Report on Form 10-Q for the Fiscal Quarter Ended May 31, 2008 filed on July 15, 2008.

(14) Incorporated by reference from Unico’s Quarterly Report on Form 10-Q for the Fiscal Quarter Ended August 31, 2008 filed on October 17, 2008.

(15) Incorporated by reference from Unico’s Quarterly Report on Form 10-Q for the Fiscal Quarter Ended November 30, 2008 filed on January 20, 2009.

(16) Incorporated by reference from Unico’s Annual Report on Form 10-K for the Fiscal Year Ended February 28, 2009 filed on June 15, 2009.

46

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**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: October 12, 2009

*/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. Brown*                |   |             |
| Ray C. Brown, Director            |   | October 12, 2009 |
|                              |   |             |
| */s/ Edward E. Winders*           |   |             |
|  Edward E. Winders, Director |   | October 12, 2009 |
|                              |   |             |
| *_/s/ C. Wayne Hartle*            |   |             |
| C. Wayne Hartle, Director         |   | October 12, 2009 |
|                              |   |             |

47

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**UNICO, INCORPORATED**

**RESTATED CONSOLIDATED FINANCIAL STATEMENTS**

**FEBRUARY 29, 2008 AND FEBRUARY 28, 2009**

F-1

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**CONTENTS**

Report of Independent Registered Public Accounting Firm

F-3

Consolidated Balance Sheets

F-4

Consolidated Statements of Operations

F-5

Consolidated Statements of Stockholders’ Equity (Deficit)

F-6

Consolidated Statement of Cash Flows

F-7

Notes to the Consolidated Financial Statements

F-8

F-2

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*REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM*

To the Board of Directors 

Unico Incorporated

(an exploration stage company)

San Diego, California

We have audited the consolidated balance sheets of Unico Incorporated (an exploration stage company) as of February 28, 2009 and February 29, 2008, and the related statements of operations, stockholders’ equity (deficit) and cash flows for each of the two years in the period ended February 28, 2009, and from inception of the exploration stage on June 1, 2004 through February 28, 2009. 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 audits.

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 audits 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 (an exploration stage company) as of February 28, 2009 and February 29, 2008, and the results of their operations and their cash flows for each of the two years in the period ended February 28, 2009, and from inception of the exploration stage on June 1, 2004 through February 28, 2009 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 (an exploration stage company) internal control over financial reporting as of February 28, 2009 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.

As discussed in Notes 2, 3 and 8, the consolidated financial statements for the years ended February 28, 2009 and 2008 have been restated to correct an error in accounting for the convertible debentures.  

*/s/ HJ Associates & Consultants, LLP*

HJ Associates & Consultants, LLP

Salt Lake City, Utah

June 15, 2009 except for notes 2, 3 and 8, which are dated September 29, 2009

F-3

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|                                                                                                                                                           |                                                                                                                                                                                                             |                  |                  |                  |                  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------|------------------|------------------|--|
| **UNICO, INCORPORATED**                                                                                                                                   |
| **(An exploration stage company)**                                                                                                                        |
| **Consolidated Balance Sheets**                                                                                                                           |
|                                                                                                                                                      |
|                                                                                                                                                      |                                                                                                                                                                                                        | **February 28,** |             | **February 29,** |
|                                                                                                                                                      |                                                                                                                                                                                                        | **2009**         |             | **2008**         |
| **ASSETS**                                                                                                                                                |                                                                                                                                                                                                        | **Restated**     |             | **Restated**     |
| Current Assets                                                                                                                                            |                                                                                                                                                                                                        |             |             |             |
|                                                                                                                                                      | Cash                                                                                                                                                                                                        | $                | 417         | $                | -           |
|                                                                                                                                                      | Accounts receivable                                                                                                                                                                                         |             | -           |             | 1,420       |
|                                                                                                                                                      | Prepaid expense                                                                                                                                                                                             |             | -           |             | 20,000      |
|                       Total Current Assets  |                                                                                                                                                                                                        | 417         |             | 21,420      |
| Fixed Assets                                                                                                                                              |                                                                                                                                                                                                        |             |             |             |
|                                                                                                                                                      | Equipment, furniture, etc. net of depreciation (Note 1)                                                                                                                                                     |             | 6,469,093   |             | 4,167,132   |
|                                                                                                                                                      | Construction in progress                                                                                                                                                                                    |             | -           |             | 2,174,952   |
|                                                                                                                                                      | Total Fixed Assets                                                                                                                                                                                          |             | 6,469,093   |             | 6,342,084   |
| Other Assets:                                                                                                                                             |                                                                                                                                                                                                        |             |             |             |
|                                                                                                                                                      | Cash- reclamation bonds                                                                                                                                                                                     |             | 221,526     |             | 215,799     |
|                                                                                                                                                      | Deposit                                                                                                                                                                                                     |             | 20,947      |             | 8,947       |
|                                                                                                                                                      | Total Other Assets                                                                                                                                                                                          |             | 242,473     |             | 224,746     |
|                                                                                                                                                      | Total Assets                                                                                                                                                                                                | $                | 6,711,983   | $                | 6,588,250   |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT**                                                                                                                 |                                                                                                                                                                                                        |
| Current Liabilities                                                                                                                                       |                                                                                                                                                                                                        |             |             |             |
|                                                                                                                                                      | Bank overdraft                                                                                                                                                                                              | $                | -           | $                | 3,142       |
|                                                                                                                                                      | Accounts payable                                                                                                                                                                                            |             | 1,148,535   |             | 785,424     |
|                                                                                                                                                      | Wages payable                                                                                                                                                                                               |             | 93,283      |             | 27,196      |
|                                                                                                                                                      | Accrued expenses                                                                                                                                                                                            |             | 400         |             | 400         |
|                                                                                                                                                      | Reclamation obligations                                                                                                                                                                                     |             | 158,119     |             | 144,862     |
|                                                                                                                                                      | Accrued interest payable                                                                                                                                                                                    |             | 32,006      |             | 24,510      |
|                                                                                                                                                      | Accrued interest payable - related party (Note 2)                                                                                                                                                           |             | 813,008     |             | 355,845     |
|                                                                                                                                                      | Accrued interest - at 50% conversion                                                                                                                                                                        |             | 834,179     |             | 370,273     |
|                                                                                                                                                      | Taxes payable                                                                                                                                                                                               |             | 53,315      |             | 17,369      |
|                                                                                                                                                      | Debentures payable, (Note 3)                                                                                                                                                                                |             | 187,584     |             | 75,000      |
|                                                                                                                                                      | Debentures payable-related party net of discount (Note 2)                                                                                                                                                   |             | 7,879,368   |             | 6,243,934   |
|                                                                                                                                                      | Debentures payable - 50% conversion                                                                                                                                                                         |             | 7,954,267   |             | 6,206,138   |
|                                                                                                                                                      | Total Current Liabilities                                                                                                                                                                                   |             | 19,154,064  |             | 14,254,093  |
|                                                                                                                                                      | Total Liabilities                                                                                                                                                                                           |             | 19,154,064  |             | 14,254,093  |
| Stockholders' Deficit                                                                                                                                     |                                                                                                                                                                                                        |             |             |             |
|                                                                                                                                                      | Preferred Stock, authorized 20,000,000 shares, $0.001

     Par Value, 9,800,000 shares issued and outstanding                                                                     |             | 9,800       |             | 9,800       |
|                                                                                                                                                      | Common Stock,  authorized 5,000,000,000 shares, $0.001 

     Par Value, 35,823,306 and 9,880,727 shares issued and 

     outstanding, respectively |             | 35,823      |             | 9,881       |
|                                                                                                                                                      | Stock Payable                                                                                                                                                                                               |             | 999,000     |             | 999,000     |
|                                                                                                                                                      | Additional Paid in Capital                                                                                                                                                                                  |             | 51,766,789  |             | 51,252,507  |
|                                                                                                                                                      | Accumulated Deficit prior to exploration stage                                                                                                                                                              |             | (15,340,078)     |             | (15,340,078)     |
|                                                                                                                                                      | Accumulated Deficit exploration stage                                                                                                                                                                       |             | (49,913,415)     |             | (44,596,953)     |
|                      Total Stockholders' Deficit |                                                                                                                                                                                                        | (12,442,081)     |             | (7,665,843)      |
|                                                                                                                                                      | Total Liabilities and Stockholders' Deficit                                                                                                                                                                 | $                | 6,711,983   | $                | 6,588,250   |
| The accompanying notes are an integral part of these consolidated financial statements.                                                                   |

F-4

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|                                                                 |        |                        |        |                  |        |                  |
|-----------------------------------------------------------------|--------|------------------------|--------|------------------|--------|------------------|
| **UNICO,  INCORPORATED**                                   |
| **(An exploration stage company)**                              |
| **Consolidated Statements of Operations**                       |
|                                                            |   |                   |   |             |   | **Cumulative**   |
|                                                            |   |                   |   |             |   | Period from      |
|                                                            |   |                   |   |             |   | **inception**    |
|                                                            |   |                   |   |             |   | **(June 1,**     |
|                                                            |   | **For the Year Ended** |   | **2004 ) to**    |
|                                                            |   | **February 28,**       |   | **February 29,** |   | **February 28,** |
|                                                            |   | **2009**               |   | **2008**         |   | **2009**         |
|                                                            |   | **Restated**           |   | **Restated**     |   | **Restated**     |
|                                                            |   |                   |   |             |   |             |
| Total Revenues                                                  | $      | -                 | $      | -           | $      | 26,202      |
| Operating Expenses                                              |   |                   |   |             |   |             |
|    Drilling, exploration and maintenance expense |   | 252,282           |   | 594,267     |   | 1,653,319   |
|    Depreciation and accretion                    |   | 300,394           |   | 173,849     |   | 940,420     |
|    Professional fees                             |   | 380,296           |   | 471,351     |   | 2,086,169   |
|    Salaries/wages                                |   | 816,862           |   | 383,055     |   | 2,106,710   |
|    General and administrative expense            |   | 531,826           |   | 438,719     |   | 3,679,144   |
|    Total Operating Expenses                      |   | 2,281,660         |   | 2,061,241   |   | 10,465,762  |
| Net Operating Loss                                              |   | (2,281,660)            |   | (2,061,241)      |   | (10,439,560)     |
| Other Income (Expense)                                          |   |                   |   |             |   |             |
|    Interest expense                              |   | (3,040,636)            |   | (6,067,192)      |   | (16,464,957)     |
|    Interest income                               |   | 5,834             |   | 12,413      |   | 29,295      |
|    Loss on sale of asset                         |   | -                 |   | -           |   | (5,914)          |
|    Loss on settlement of debt                    |   | -                 |   | (7,877,820)      |   | (23,008,257)     |
|    Other income                                  |   | -                 |   | 12,619      |   | (23,672)         |
|       Total Other Expense         |   | (3,034,802)            |   | (13,919,980)     |   | (39,473,505)     |
| LOSS FROM CONTINUING OPERATIONS                                 |   | (5,316,462)            |   | (15,981,221)     |   | (49,913,065)     |
| Income Tax Expense                                              |   | -                 |   | (350)            |   | (350)            |
| Net Loss                                                        | $      | (5,316,462)            | $      | (15,981,571)     | $      | (49,913,415)     |
| Net Loss Per Share                                              | $      | (0.36)                 | $      | (2.32)           |   |             |
| Weighted Average Shares Outstanding                             |   | 14,630,797        |   | 6,892,460   |   |             |

The accompanying notes are an integral part of these consolidated financial statements.

F-5

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|                                                                    |                           |        |                        |        |                  |         |                    |        |                  |        |                     |
|--------------------------------------------------------------------|---------------------------|--------|------------------------|--------|------------------|---------|--------------------|--------|------------------|--------|---------------------|
| **UNICO, INCORPORATED**                                            |
| **(An exploration stage company)**                                 |
| **Consolidated Statements of Stockholders’ Equity (Deficit)** |
|                                                               |                      |   |                   |   |             |    |               |   |             |   |                |
|                                                               |                      |   |                   |   |             |    |               |   | **Additional**   |   | **Retained **  |
|                                                               | **Preferred Stock ** |   | **Common Stock ** |   | **Paid-in**      |    | **Earnings ** |
|                                                               | **Shares**                |   | **Amount **       |   | **Shares ** |    | **Amount **   |   | **Capital**      |   | **(Deficit) ** |
| **Balance, June 1, 2004 (inception of exploration stage)**         | -                    | $      | -                 |   | 181,926     | $       | 182           | $      | 9,906,554   | $      | (15,340,078)        |
| S8 Stock issued for services                                       | **- **               |   | **- **            |   | 5,000       |    | 5             |   | 249,995     |   | -              |
| Preferred stock issued for related party debt extinguishment       | 6,898,032            |   | 6,898             |   | -           |    | -             |   | 485,764     |   | -              |
| Preferred stock issued for debt extinguishment                     | 2,401,968            |   | 2,402             |   | -           |    | -             |   | 169,148     |   | -              |
| Preferred stock issued for services                                | 500,000              |   | 500               |   | -           |    | -             |   | 35,210      |   | -              |
| Stock issued for extinguishment of debt                            | -                    |   | -                 |   | 16,930      |    | 17            |   | 811,782     |   | -              |
| Stock issued for conversion of debentures                          | -                    |   | -                 |   | 793,000     |    | 793           |   | 8,564,925   |   | -              |
| Net loss for year ended February 28, 2005                          | **- **               |   | **- **            |   | **- **      |    | **- **        |   | **- **      |   | (8,939,320)         |
| **Balance, February 28, 2005**                                     | 9,800,000            |   | 9,800             |   | 996,856     |    | 997           |   | 20,223,378  |   | (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                          | -                    |   | -                 |   | 347,671     |    | 348           |   | 1,000,763   |   | -              |
| Net Loss for period ended February 28, 2006                        | -                    |   | -                 |   | -           |    | -             |   | -           |   | (2,272,097)         |
| **Balance, February 28, 2006**                                     | 9,800,000            |   | 9,800             |   | 1,344,527   |    | 1,345         |   | 21,134,141  |   | (26,551,495)        |
| S8 Stock issued for services                                       | -                    |   | -                 |   | 4,200       |    | 4             |   | 30,496      |   | -              |
| Stock issued for conversion of debentures                          | -                    |   | -                 |   | 662,113     |    | 662           |   | 19,202,604  |   | -              |
| Capital contribution from shareholders                             | -                    |   | -                 |   | -           |    | -             |   | 750,000     |   | -              |
| Net loss  for year ended February 28, 2007 (Restated)         | -                    |   | -                 |   | -           |    | -             |   | -           |   | (17,403,965)        |
| **Balance, February 28, 2007**                                     | 9,800,000            |   | 9,800             |   | 2,010,840   |    | 2,011         |   | 41,117,241  |   | (43,955,460)        |
| Stock issued for conversion of debentures                          | -                    |   | -                 |   | 7,869,887   |    | 7,870         |   | 10,135,266  |   | -              |
| Net loss for period ended February 29, 2008 (Restated)             | -                    |   | -                 |   | -           |    | -             |   | -           |   | (15,981,571)        |
| **Balance, February 29, 2008**                                     | 9,800,000            |   | 9,800             |   | 9,880,727   |    | 9,881         |   | 51,252,507  |   | (59,937,031)        |
| Stock issued for conversion of debentures                          | -                    |   | -                 |   | 21,262,529  |    | 21,262        |   | 424,987     |   | -              |
| S8 Stock issued for services/accounts payable                      | -                    |   | -                 |   | 4,680,050   |    | 4,680         |   | 89,295      |   | -              |
| Net loss for year ended February 28, 2009  (Restated)         | -                    |   | -                 |   | -           |    | -             |   | -           |   | (5,316,462)         |
| **Balance, February 28, 2009**                                     | 9,800,000            | $      | 9,800             |   | 35,823,306  |  $ | 35,823        | $      | 51,766,789  | $      | (65,253,493)        |
| Retained Earnings deficit prior to exploration stage               |                      |   |                   |   |             |    |               |   |             | $      | (15,340,078)        |
| Retained Earnings deficit exploration stage (Restated)             |                      |   |                   |   |             |    |               |   |             | $      | (49,913,415)        |

The accompanying notes are an integral part of these consolidated financial statements

F-6

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|                                                                                                                     |        |                        |        |                  |        |                  |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|------------------|--------|------------------|
| **UNICO, INCORPORATED**                                                                                             |
| **(An exploration stage company)**                                                                                  |
| **Consolidated Statements of Cash Flows**                                                                           |
|                                                                                                                |   |                   |   | **Cumulative**   |
|                                                                                                                |   |                   |   | **Period from**  |
|                                                                                                                |   |                   |   | **Inception**    |
|                                                                                                                |   |                   |   | **(June 1,**     |
|                                                                                                                |   | **For the Year Ended** |   | **2004) to**     |
|                                                                                                                |   | **February 28,**       |   | **February 29,** |   | **February 28,** |
|                                                                                                                |   | **2009**               |   | **2008**         |   | **2009**         |
|                                                                                                                |   | **Restated**           |   | **Restated**     |   | **Restated**     |
| **Cash Flows from Operating Activities**:                                                                           |   |                   |   |             |   |             |
| Net Loss                                                                                                            | $      | (5,316,462)            | $      | (15,981,571)     | $      | (49,913,415)     |
| Adjustments to Reconcile Net Loss to Net Cash Provided by Operations:                                               |   |                   |   |             |   |             |
|      Depreciation and accretion expense                                                    |   | 300,393           |   | 173,849     |   | 940,419     |
|      Loss on settlement of debt                                                            |   | -                 |   | 7,877,820   |   | 23,442,317  |
|      Interest related to convertible debentures                                            |   | 2,372,016         |   | 5,685,500   |   | 14,397,496  |
|      Loss on sale of assets                                                                |   | -                 |   | -           |   | 5,914       |
|      Common stock for services                                                             |   | -                 |   | -           |   | 280,500     |
|      Preferred stock for services                                                          |   | -                 |   | -           |   | 35,710      |
| Changes in Operating Assets and Liabilities:                                                                        |   |                   |   |             |   |             |
|      (Increase) Decrease in:                                                               |   |                   |   |             |   |             |
|      Reclamation deposit                                                                   |   | (5,727)                |   | (8,096)          |   | 7,928       |
|      Prepaid expense                                                                       |   | 8,000             |   | (8,487)          |   | (20,247)         |
|      Deposit                                                                               |   | -                 |   | -           |   | 5,158       |
|      Accounts receivable                                                                   |   | 1,420             |   | (1,420)          |   | -           |
|      Increase (Decrease) in:                                                               |   |                   |   |             |   |             |
|      Accrued expenses                                                                      |   | 590,945           |   | 328,499     |   | 389,534     |
|      Accounts payable and other liabilities                                                |   | 559,119           |   | 583,382     |   | 1,947,031   |
|              Net Cash Used by Operating Activities |   | (1,490,296)            |   | (1,350,524)      |   | (8,481,655)      |
| **Cash Flows from Investing Activities:**                                                                           |   |                   |   |             |   |             |
| Purchase of fixed assets- Construction in progress                                                                  |   | (128,230)              |   | (448,091)        |   | -           |
| Sale of fixed assets                                                                                                |   | -                 |   | -           |   | 26,200      |
| Purchase of fixed assets                                                                                            |   | (285,915)              |   | (3,744,675)      |   | (6,731,616)      |
|             Net Cash Used by Investing Activities       |   | (414,145)              |   | (4,192,766)      |   | (6,705,416)      |
| **Cash Flows from Financing Activities:**                                                                           |   |                   |   |             |   |             |
| Decrease/increase in bank overdraft                                                                                 |   | (3,142)                |   | 3,142       |   | (13,622)         |
| Capital contributions from shareholders                                                                             |   | -                 |   | 68,000      |   | 818,000     |
| Proceeds from notes and stock payables                                                                              |   | -                 |   | -           |   | 1,100,800   |
| Issuance of convertible debentures                                                                                  |   | 1,908,000         |   | 5,464,954   |   | 13,340,454  |
| Payments on notes and debentures                                                                                    |   | -                 |   | -           |   | (58,144)         |
|            Net Cash Provided by Financing Activities         |   | 1,904,858         |   | 5,536,096   |   | 15,187,488  |
| Net Increase (Decrease) in Cash                                                                                     |   | 417               |   | (7,194)          |   | 417         |
| Cash at Beginning of Period                                                                                         |   | -                 |   | 7,194       |   | -           |
| Cash at End of Period                                                                                               | $      | 417               | $      | -           | $      | 417         |
| Cash Paid For:                                                                                                      |   |                   |   |             |   |             |
|   Interest                                                                                                | $      | 21,922            | $      | 21,922      | $      | 91,010      |
|   Income Taxes                                                                                            | $      | -                 | $      | 350         | $      | 350         |
| Non-Cash Financing Activities:                                                                                      |   |                   |   |             |   |             |
|   Common stock issued for services                                                                        | $      | 93,975            | $      | -           | $      | 410,185     |
|   Preferred stock issued for debt extinguishments                                                         |   | -                 |   | -           |   | 261,550     |
|   Common Stock issued for debt extinguishments                                                            | $      | 286,268           | $      | 1,165,236   | $      | 4,473,943   |

The accompanying notes are an integral part of these consolidated financial statements

F-7

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**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**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 exploration activities are conducted through Deer Trail Mining Company, LLC, a Nevada limited liability company while Unico's Bromide Basin Mine exploration activities 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 exploration 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 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.   The Company reports the operations of itself and its subsidiaries on a consolidated basis.

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 28, 2009 the company had $417 in cash and $221,526 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.

F-8

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**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**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 3 to 20 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. 
|                            |        |                 |        |                 |
|----------------------------|--------|-----------------|--------|-----------------|
| Fixed Asset Schedule       |   |            |   |            |
|                       |   | **2009**        |   | **2008**        |
| Fixed Assets:              |   |            |   |            |
| Furniture & Equipment      | $      | 2,397,566  | $      | 1,809,433  |
| Land                       |   | 200,000    |   | 200,000    |
| Buildings                  |   | 1,564,178  |   | -          |
| Substation                 |   | 433,986    |   | -          |
| Deer Trail Mining Claim    |   | 2,360,000  |   | 2,360,000  |
| Deer Trail Patented Claims |   | 640,000    |   | 640,000    |
| Autos                      |   | 68,614     |   | 65,814     |
|    Total    |   | 7,664,344  |   | 5,075,247  |
| Less Depreciation          |   | (1,195,251)     |   | (908,115)       |
| Net Equipment              | $      | 6,469,093  | $      | 4,167,132  |

f.         Construction In Progress

The Company has completed construction work and has capitalized all Construction In Progress. 

g.        Exploration Activities

All costs associated with exploration activities will be expensed.  All exploration to date has been expensed.  As reserves are established from future exploration activities only those costs associated with bringing the reserve into production will be capitalized. 

h.         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. 
|                                               |        |                  |          |        |                 |        |  |  |
|-----------------------------------------------|--------|------------------|----------|--------|-----------------|--------|--|--|
|                                          |   |             | **2009** |   | **2008**        |   |
| Loss from operations                          | $      | (5,316,462)      |     | $      | (15,981,571)    |
| Total loss per share                          | $      | (0.36)           |     | $      | (2.32)          |
| Weighted Average Number of Shares Outstanding |   | 14,630,797  |     |   | 6,892,460  |

i.        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 assets 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. 

F-9

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 1 – NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING PRINCIPLES - continued**

Net deferred tax assets consist of the following components as of February 28, 2009 and February 29, 2008: 
|                                                      |        |                 |          |                 |          |        |  |  |
|------------------------------------------------------|--------|-----------------|----------|-----------------|----------|--------|--|--|
|                                                 |   |            | **2009** |            | **2008** |   |
| Deferred tax assets:                                 |   |            |     |            |     |
|      NOL Carryover          | $      | 9,090,000  | $        | 8,051,945  |     |
|      Related party accruals |   | 317,100    |     | 138,800    |     |
| Deferred tax liability:                              |   |            |     |            |     |
|      Depreciation           |   | (223,100)       |     | (114,901)       |     |
| Valuation allowance                                  |   | (9,184,000)     |     | (8,075,844)     |     |
| Net deferred tax asset                               | $      | -          | $        | -          |     |

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rates of 39% to pretax income from continuing operations for the years ended February 28, 2009 and February 29, 2008 due to the following: 
|                                    |        |                 |        |                 |
|------------------------------------|--------|-----------------|--------|-----------------|
|                               |   | **2009**        |   | **2008**        |
| Book income                        | $      | (2,073,400)     | $      | (6,232,800)     |
| Depreciation                       |   | (159,390)       |   | (12,520)   |
| Accrued Expense                    |   | 178,295    |   | 113,310    |
| Stock for services/Option Expenses |   | 85,905     |   | -          |
| Debentures                         |   | -          |   | 1,860,020  |
| Other                              |   | 335        |   | -          |
| SFAS 84                            |   | 925,090    |   | 3,072,350  |
| Accretion                          |   | 5,170      |   | -          |
| Valuation allowance                |   | 1,037,995  |   | 1,199,640  |
|                               | $      | -          | $      | -          |

At February 28, 2009, the Company had net operating loss carryforwards of approximately $23,300,000 that may be offset against future taxable income from the year 2010 through 2030. No tax benefit has been reported in the February 28, 2009 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.   

FIN 48 – Accounting for Uncertainty in Income Taxes

On March 1, 2007, the Company adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income taxes (FIN 48). FIN 48 prescribes a comprehensive model of how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. FIN 48 states that a tax benefit from an uncertain position may be recognized if it is "more likely than not" that the position is sustainable, based upon its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information.

F-10

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 1 – NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING PRINCIPLES - continued**

Upon adoption of FIN 48, there was no impact to the Company's consolidated financial statements. The Company estimates that the unrecognized tax benefit will not change significantly within the next twelve months. The Company will continue to classify income tax penalties and interest as part of general and administrative expense in its statements of operations. Accrued interest on uncertain tax positions is not significant. There are no penalties accrued as of February 28, 2009. The following table summarizes the open tax years for each major jurisdiction:

Jurisdiction     Open Tax Years

Federal            2004 – current 

California        2004 – current

Utah

          2004 – current

As the Company has significant net operating loss carry forwards, even if certain of the Company’s tax positions were disallowed, it is not foreseen that the Company would have to pay any taxes in the near future. Consequently, the Company does not calculate the impact of interest or penalties on amounts that might be disallowed.

j.       Recent Accounting Pronouncements

During the year ended February 28, 2009, the Company adopted the following accounting pronouncements:

In March 2008, the FASB issued SFAS No. 161, “Disclosure about Derivative Instruments and Hedging Activities”, which will be effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.  This statement amends SFAS 133.  The Company does not anticipate adoption of this standard will have a material impact on its consolidated financial statements.

k.       Revenue Recognition 

The Company will recognize revenues from sales of minerals. Minerals will be milled at the Deer Trail site from mineralized materials that are mined or taken from existing stockpiles of previously removed mineralized materials 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.

l.          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.

m.            Accounting for Convertible Debentures

The outstanding convertible debentures issued by the Company have a fixed monetary amount known at time of issue and because of this are accounted for based on Statement No. 150 of the Financial Accounting Standards Board (FASB).  These convertible debentures have a fixed face amount that is payable by cash plus interest on the principle owed, or can be converted into common shares of the Company determined by the discounted  rate specified on the debenture itself.  

In accordance with SFAS 150 the Company records a beneficial conversion cost based on the conversion option of the debenture that equals the value of the specified discount to market available at the time of conversion.   The beneficial conversion cost is recorded as interest expense at the time the convertible security is first issued.   If the debenture is subsequently converted into stock, the liability is reduced and the common stock and additional paid in capital is 

F-11

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 1 – NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING PRINCIPLES - continued**

increased.  A beneficial conversion cost is also recorded for the interest portion of the debenture that equals the value of the specified discount to market available at the time of conversion.  This beneficial cost is recorded as interest expense at the time the convertible security is first issued.   If the debenture is subsequently converted into stock, the accrued interest liability is reduced and the common stock and additional paid in capital is increased.  If the Company pays off the debt instead of converting it to common stock, the debenture liability and accrued interest liability is reduced and a gain on extinguishment of debt is recognized.  

**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 $3,525 for Ray Brown’s debenture and $50,647 for Joseph Lopez’s debenture as of February 28, 2009.  During the year ended February 28, 2009, the Company converted $37,708 of interest and $558 of principal due Ray Brown through the issuance of 2,762,155 post-reverse restricted shares of common stock and paid Ray $14,897 in cash for interest due.   The balance due Mr. Brown on his convertible debenture as of February 28, 2009 is $448,956, and the balance due Joseph Lopez is $114,466 as of the same date.

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 for a total balance due Moore Investment Holdings of $5,679,954 as of February 29, 2008.  The Company also issued an additional $1,908,000 in convertible debentures in the fiscal year ending February 28, 2009 to Moore Investment Holdings.  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. 

During the year ended February 28, 2009 the Company converted $62,649 of interest and $18,052 of principal due Moore Investment Holdings through the issuance of 7,800,000 post-reverse shares of common stock.  Subsequent to the year ending February 28, 2009 the Company has converted $123,875 of principal and interest due Moore Investment Holdings through the issuance of 24,750,000 post-reverse shares of common stock.

During the fiscal year ending February 28, 2009, Moore Investment Holdings assigned $279,500 of its outstanding debentures to others for cash.  Of this amount $167,302 was converted to 10,699,874 shares of common stock of the Company. 

The summary of outstanding related party debt of $7,879,368 of which $7,361,368 is in default as of February 28 2009 is as follows:

Moore Investment Holdings

$7,315,946

Ray Brown

     448,956

Joseph Lopez

   114,466

 

Total

$7,879,368

As of February 28, 2009 the Company has a recorded liability for beneficial conversion of $7,954,267 based on the discount to market available at the time of conversion of which $7,766,683 is attributable to related party debentures.

As of February 28, 2009 the Company has accrued $813,008 for interest due to related parties in regard to these outstanding debentures.  The Company also has a recorded liability for beneficial conversion for the interest portion of the debentures of $834,179 based on the discount to market available at the time of conversion of which $802,173 is attributable to related party debentures. 

F-12

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 3 – CONVERTIBLE DEBENTURES**

During the fiscal year ended February 28, 2009, the Company issued $1,908,000 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.     In the fiscal year ending February 29, 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.  All new debentures issued this fiscal year in the amount of $1,908,000 were issued to Moore Investment Holdings.   As of February 28, 2009 there is non-affiliated convertible debentures, in the amount of $187,584 and related party debentures of $7,879,368, remaining on the Company’s books.  As of the fiscal year ending February 28, 2009, the Company has a liability balance for recorded beneficial conversion in the amount of $7,954,267 based on the discount to market available at the time of conversion.  The Company also recorded a liability balance for beneficial conversion for the interest portion of the debentures of $834,179 based on the discount to market available at the time of conversion.

**NOTE 4 –STOCKHOLDER’S EQUITY**

*Common Stock*

As of February 28, 2009, the Company had 35,823,306 shares of common stock issued and outstanding with 4,964,176,694 shares authorized but unissued.  

During the year ended February 28, 2009 the Company issued 18,499,874 shares of free trading common stock in conversion of principal and interest based in the amount of $286,268 on the terms of the outstanding debentures; 8% interest per annum and conversion at a discount of 50% of the closing bid for the Company’s common stock on the date of conversion

During the year ended February 28, 2009, the Company also issued 4,680,050 shares of free trading common stock for the payment of services under an S-8 registration in the amount of $93,975. 

During the year ended February 28, 2009, the Company issued a total of 2,763,155 shares of common stock on the conversion of debentures payable plus interest to Ray Brown totaling $38,266.

*Stock Options*

  

During the year ended February 28, 2007, all stock options expired unexercised.  As of February 28, 2009, there were no stock options outstanding.

*Preferred Stock*

As of February 28, 2009, 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 152,238 post-reverse shares of restricted common stock to a third party for total consideration of $999,000.  As of February 28, 2009, these shares had not been issued, resulting in a stock payable.

**NOTE 5 – LEGAL MATTERS**

On August 14, 2008, Unico shareholders Randall Sullivan, Barry Raykoske, and Jack Reilly filed a derivative lawsuit on behalf of Unico against Ray C. Brown, Kenneth C. Wiedrich, Mark A. Lopez, Shane Traveller, Javelin Advisory Group, Inc., and Unico (as a nominal defendant) in the Superior Court of the State of California, San Diego County Central Division (Case No. 37-2008-0008901-CU-PN-CTL).  The plaintiffs allege that the named defendants breached fiduciary duties owed to Unico, and were negligent in the approval of certain financing 

F-13

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 5 – LEGAL MATTERS   -continued**

transactions entered into on behalf of Unico.  The plaintiffs seek no less than $20 million in damages from the named defendants, as well as injunctive relief, interest, attorney's fees, and court costs.  Plaintiffs are seeking a determination that they are appropriate representatives of Unico shareholders to bring a derivative suit, which is a prerequisite to bringing such a claim under California Corporations Code section 800.  The defendants deny any liability, and are defending the lawsuit.    Since the claims are made against officers, a director and other third parties, Unico does not believe that its assets are at risk in this proceeding except to pay legal defense costs until the insurance deductible has been met.

On September 30, 2008, a lawsuit was filed by Cache Valley Electric Company against Unico, Incorporated in the Third Judicial District Court for Salt Lake County, State of Utah (Case No. 080921346) in which the plaintiff alleges that it provided goods and services to Unico in the amount of $191,615, for which it has not received payment.  The plaintiff alleges that Unico breached the contract by failing to pay for the goods and services, and is seeking a money judgment against Unico in the amount of $191,615 together with interest thereon at the statutory rate and court costs.  On March 2, 2009, a Default Judgment was entered against Unico in the amount of $216,291.  Unico subsequently entered into the Unico Incorporated Settlement Agreement, dated March 27, 2009 (“Settlement Agreement”).  The Settlement Agreement provides that Unico is to pay Cache Valley Electric Company $216,291as follows: Unico is to make six monthly payments in the amount of $6,000 per month beginning April 25, 2009; six monthly payments of $10,000 per month beginning October 25, 2009; seven monthly payments of $15,000 per month; and a final monthly payment of $15,291.  The Settlement Agreement further provides that if the payments are made as set forth above, no further action will be taken against Unico.  If the payments are not received within a ten-day grace period following the respective due dates, the entire unpaid balance less any payments made will become due and payable immediately, and no rights as to the recovery of that amount, including all legal fees, court costs, and interest due will have been waived by virtue of the Settlement Agreement.  The Settlement Agreement further provides that when the settlement amount is fully funded, Cache Valley Electric Company is to execute and file a Release of Judgment for the full amount of the claim.  Finally, the Settlement Agreement provides that if a Lien against Unico has been filed, Cache Valley Electric Company is to file a Release of Lien with the clerk of the Third Judicial District Court for Salt Lake County immediately upon receipt of the final payment.  

On or about January 5, 2009, a lawsuit was filed by Atlas Mining Company, an Idaho corporation, dba Atlas Fausett Contracting against Deer Trail Mining Company, LLC in the Sixth Judicial District Court for Piute County, State of Utah (Case No. 0090600001) in which the plaintiff alleges that it provided certain mine rehabilitation services and materials with respect to the Deer Trail Mine pursuant to a written contract for which it has not been paid.  The plaintiff alleges that Deer Trail Mining Company, LLC breached the contract by failing to pay for the services and materials, and is seeking a money judgment against Deer Trail Mining Company, LLC for at least $182,144 plus interest at 18% per annum, plus costs.  Plaintiff is also seeking a court order adjudging a mining lien filed by the plaintiff against the Deer Trail Mine on or about July 9, 2008 to be a good and sufficient lien on the Deer Trail Mine securing payment of the obligations under its contract with Deer Trail Mining Company, LLC, and ordering that the Deer Trail Mine be foreclosed and sold by the sheriff of Piute County, with the sales proceeds being applied against the amount due and owing to plaintiff from the Deer Trail Mining Company, LLC and to the foreclosure costs.  Deer Trail Mining Company, LLC has filed an Answer denying liability. The case is now in the discovery phase. Deer Trail Mining Company, LLC is also attempting to negotiate a settlement of the lawsuit.

On March 23, 2009, a lawsuit was filed by Workers Compensation Fund, a Utah non-profit corporation, against Unico Incorporated in the Third Judicial District Court for Salt Lake County, State of Utah (Case No. 090904860)in which the plaintiff alleges that it provided workers’ compensation insurance coverage to Unico for the policy period February 6, 2007 to February 5, 2008.  The plaintiff alleges that the sum of $14,245 remains due on the account, together with accrued interest.  The plaintiff alleges that it is entitled to recover damages in the principal amount of $14,245, plus interest at the rate of 8% per annum, plus court costs and a reasonable attorney’s fee. Unico Incorporated has filed an Answer denying liability. Unico Incorporated is also attempting to negotiate a settlement of the lawsuit.

On December 18, 2008, a lawsuit was filed by ISCO Industries, LLC against Unico, Incorporated in the Superior Court of California, County of San Diego (Case No. 37-2008-00098400-CL-CL-CTL) in which the plaintiff sought to recover money owed for goods and/or services provided, interest thereon and attorney’s fees.  The defendant did not file an Answer in the case, and a default judgment was entered against Unico, Incorporated for $29,152.  Unico, 

F-14

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 5 – LEGAL MATTERS   -continued**

Incorporated believes that a smaller amount is actually owing, and Unico is attempting to settle the judgment for a lesser amount.   

Unico received a Subpoena Duces Tecum dated November 3, 2008 captioned “In the Matter of Certain Unregistered Offerings/HO-10859” requesting copies of various documents, most of which are related to certain fund raising efforts in which Unico engaged through the issuance of convertible debentures, and the settlements of many of those convertible debentures that Unico defaulted on.  The holders of the debentures or their assignees filed a large number of actions in Florida State Court which were eventually settled by Unico, Incorporated and the various debenture holders/assignees by agreeing to issue substantial number of shares of Unico common stock at prices that were significantly discounted from the then existing market prices for Unico shares, in court approved settlements.  Certain officers and/or directors of Unico received similar subpoenas from the SEC, and depositions of those officers or directors were taken in March 2009.  No action has yet been taken by the Securities and Exchange Commission against Unico and/or its officers and directors following the depositions.

**NOTE 6 – SUBSEQUENT EVENTS**

Subsequent to the fiscal year ending February 28, 2009, the Company received $412,500 through the issuance of new convertible debentures to Moore Investment Holdings.  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.

Subsequent to the end of the fiscal year Moore Investment Holdings assigned $365,000 of its outstanding debentures to third parties.  The Company has issued 24,750,000 shares of free trading common stock to Moore Investment Holdings for the conversion of $123,875 of principal and interest on outstanding debentures and it has issued 70,492,106 shares of free trading common stock to third parties for the conversion of $284,950 of principal and interest on outstanding debentures.

Subsequent to the fiscal year ending February 28, 2009 the Company issued 1,800,000 shares of free trading common stock for the payment of services under an S-8 registration in the amount of $6,630.  

Subsequent to the year ending February 28, 2009 the Company has issued 3,640,383 shares of free trading common stock for the conversion of $9,028 of interest on outstanding convertible debentures for Ray Brown.

Subsequent to the year ending February 28, 2009 the Company has issued 3,779,064 shares of free trading common stock for the conversion of $9,372 of interest on outstanding debt due Wayne Hartle.  Subsequent to the year ending February 28, 2009 the Company also issued 1,500,000 shares of restricted shares to Wayne Hartle for $6,000 in cash.

**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 $69,262,167 from its inception through February 28, 2009.   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: 

·

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 maintenance and rehabilitation work at the Deer Trail Mine;

F-15

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 7 – GOING CONCERN - - continued**

·

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 mineralized material dumps;

·

Construct large tailings pond for large scale processing;

·

Begin milling and processing activities at the Deer Trail Mill and Processing Facility;

·

Acquire new mining equipment to improve exploration activities 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 exploration work to evaluate the potential of the mining claims at the Silver Bell Mine beginning in the Summer of 2009.

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 28, 2009, the Company received $412,500 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 $2,087,500 during the fiscal year ending February 28, 2010 to fulfill the 12-month plan.

**NOTE 8 – PRIOR PERIOD RESTATEMENT**

The Consolidated financial statements for the fiscal year ended February 28, 2009, and February 29, 2008 have been restated to correct the way in which the Company accounts for convertible debentures.  As a result of these changes, the Company recorded adjustments to the Company’s debenture payable, accrued interest payable, derivative liability, discount on debt, accumulated deficit, derivative loss and interest expense.  For the fiscal year ended February 28, 2009, and February 29, 2008 the adjustments eliminated the discount on debt of $232,268 and $747,113 respectively, which were both netted into the debentures payable –related party. These adjustments have been reflected in the accompanying balance sheet, statement of operations, equity statement, and cash flows statement for the fiscal year ended February 28, 2009.

There was no tax-effect for the prior period adjustments in fiscal year ending February 28, 2009 and February 29, 2008 since the Company already had net operating losses during this period.  These changes are reflected in the following schedules:

|                                       |                   |                         |                  |                |
|---------------------------------------|-------------------|-------------------------|------------------|----------------|
|                                  |              | **Originally Reported** | **As Restated**  | **Difference** |
| **February 28, 2009**                 |              |                    |             |           |
| Derivative liability                  | $13,029,388  | $0                 | ($13,029,388)    |
| Debentures payable-related party      | $7,647,100   | $7,879,368         | $232,268    |
| Accrued interest-at 50% conversion    | $0           | $834,179           | $834,179    |
| Debentures payable- at 50% conversion | $0           | $7,954,267         | $7,954,267  |
| Accumulated deficit exploration stage | ($53,922,089)     | ($49,913,415)           | $4,008,674  |
|                                  |              |                    |             |
| Interest expense                      | $3,091,464   | $3,040,636         | ($50,828)        |
| Derivative loss                       | $2,970,188   | $0                 | ($2,970,188)     |
| Net loss                              | ($8,337,478)      | ($5,316,462)            | $3,021,016  |

F-16

----

**UNICO, INCORPORATED**

Notes to the Consolidated Financial Statements

February 28, 2009 and February 29, 2008

**NOTE 8 – PRIOR PERIOD RESTATEMENT - continued**

|                                       |                  |                         |                  |                |
|---------------------------------------|------------------|-------------------------|------------------|----------------|
|                                  |             | **Originally Reported** | **As Restated**  | **Difference** |
| February 29, 2008                     |             |                    |             |           |
| Derivative liability                  | $8,311,182  | $0                 | ($8,311,182)     |
| Debentures payable-related party      | $5,496,821  | $6,243,934         | $747,113    |
| Accrued interest-at 50% conversion    | $0          | $370,273           | $370,273    |
| Debentures payable- at 50% conversion | $0          | $6,206,138         | $6,206,138  |
| Accumulated deficit exploration stage | ($45,584,611)    | ($44,596,953)           | $987,658    |
|                                  |             |                    |             |
| Interest expense                      | $5,266,533  | $6,067,192         | $800,659    |
| Derivative loss                       | $859,016    | $0                 | ($859,016)       |
| Net loss                              | ($16,039,928)    | ($15,981,571)           | $58,357     |

F-17