----

----

| þ | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------|

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

| Montana                                                        |   | 81-0305822                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| P.O. Box 643, Thompson Falls, Montana    |   |   59873 |
|------------------------------------------|--------|-------------------|
| (Address of principal executive offices) |   | (Zip code)        |

| Large accelerated filer o | Accelerated filer þ | Non-accelerated filer o(Do not check if a smaller reporting company) | Smaller reporting company o |
|---------------------------|--------------------------|----------------------------------------------------------------------|-----------------------------|

----

----

----

|                                 |                                                                                             |   | Page   |   |
|--------------------------------------|--------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART I – FINANCIAL INFORMATION |                                                                                             |   |   |
|                                 |                                                                                             |   |   |   |
| Item 1:                              | Financial Statements (unaudited)                                                                 |   |   | 3      |   |
|                                 |                                                                                             |   |   |   |   |
| Item 2:                              | Management’s Discussion and Analysis of Results of Operations and Financial Condition |   |   | 11     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 3:                              | Quantitative and Qualitative Disclosure about Market Risk                                        |   |   | 13     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 4:                              | Controls and Procedures                                                                          |   |   | 13     |   |
|                                 |                                                                                             |   |   |   |   |
| PART II – OTHER INFORMATION    |                                                                                             |   |   |   |
|                                 |                                                                                             |   |   |   |   |
| Item 1:                              | Legal Proceedings                                                                                |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 2:                              | Unregistered Sales of Equity Securities and Use of Proceeds                                      |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 3:                              | Defaults upon Senior Securities                                                                  |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 4:                              | Mine Safety Disclosures                                                                          |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 5:                              | Other Information                                                                                |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| Item 6:                              | Exhibits and Reports on Form 8-K                                                                 |   |   | 14     |   |
|                                 |                                                                                             |   |   |   |   |
| SIGNATURE                            |                                                                                             |   | 15     |   |
|                                 |                                                                                             |   |   |   |   |
| CERTIFICATIONS                       |                                                                                             |   |   |   |

----

|                                                                  |   | (Unaudited)  |        |   |                  |   |
|-----------------------------------------------------------------------|--------|--------------|-------------|--------|-----------------------|--------|
|                                                                  |   | June 30,2012 |        |   | December 31,2011 |   |
| ASSETS                                                                |
| Current assets:                                                       |   |         |        |   |                  |   |
| Cash and cash equivalents                                             |   | $            | 3,444,003   |   |                  | $      | 5,427 |   |
| Certificates of deposit (Note 4)                                      |   |         | 242,800     |   |                  |   |   |   |
| Accounts receivable, less allowance for                               |   |         |        |   |                  |   |   |   |
| doubtful accounts of $4,031 and $7,600, respectively                  |   |         | 456,508     |   |                  |   | 1,291,975 |   |
| Inventories                                                           |   |         | 1,077,271   |   |                  |   | 1,066,813 |   |
| Other current assets                                                  |   |         | 57,660      |   |                  |   | 56,208 |   |
| Deferred tax asset                                                    |   |         | 470,869     |   |                  |   | 396,558 |   |
| Total current assets                                                  |   |         | 5,749,111   |   |                  |   | 2,816,981 |   |
|                                                                  |   |         |        |   |                  |   |   |   |
| Properties, plants and equipment, net                                 |   |         | 7,484,436   |   |                  |   | 6,047,004 |   |
| Restricted cash for reclamation bonds                                 |   |         | 74,777      |   |                  |   | 74,777 |   |
| Other assets                                                          |   |         | 128,686     |   |                  |   | 54,766 |   |
| Total assets                                                          |   | $            | 13,437,010  |   |                  | $      | 8,993,528 |   |
|                                                                  |   |         |        |   |                  |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                  |   |
| Current liabilities:                                                  |   |         |        |   |                  |   |   |   |
| Checks issued and payable                                             |   | $            | -           |   |                  | $      | 113,908 |   |
| Deferred revenue                                                      |   |         | -           |   |                  |   | 43,760 |   |
| Accounts payable                                                      |   |         | 829,329     |   |                  |   | 994,940 |   |
| Accrued payroll, taxes and interest                                   |   |         | 98,409      |   |                  |   | 141,928 |   |
| Other accrued liabilities                                             |   |         | 63,696      |   |                  |   | 119,292 |   |
| Payables to related parties                                           |   |         | 10,434      |   |                  |   | 331,978 |   |
| Long-term debt, current                                               |   |         | 258,988     |   |                  |   | 79,631 |   |
| Total current liabilities                                             |   |         | 1,260,856   |   |                  |   | 1,825,437 |   |
|                                                                  |   |         |        |   |                  |   |   |   |
| Long-term debt, noncurrent                                            |   |         | 134,503     |   |                  |   | 158,218 |   |
| Asset retirement and accrued reclamation costs                        |   |         | 245,520     |   |                  |   | 241,500 |   |
| Total liabilities                                                     |   |         | 1,640,879   |   |                  |   | 2,225,155 |   |
|                                                                  |   |         |        |   |                  |   |   |   |
| Commitments and contingencies (Note 4)                                |   |         |        |   |                  |   |   |   |
|                                                                  |   |         |        |   |                  |   |   |   |
| Stockholders' equity:                                                 |   |         |        |   |                  |   |   |   |
| Preferred stock $0.01 par value, 10,000,000 shares authorized:        |   |         |        |   |                  |   |   |   |
| Series A:  no shares issued and outstanding                 |   |         | -           |   |                  |   | - |   |
| Series B: 750,000 shares issued and outstanding                       |   |         |        |   |                  |   |   |   |
| (liquidation preference $877,500)                                     |   |         | 7,500       |   |                  |   | 7,500 |   |
| Series C: 177,904 shares issued and outstanding                       |   |         |        |   |                  |   |   |   |
| (liquidation preference $97,847)                                      |   |         | 1,779       |   |                  |   | 1,779 |   |
| Series D: 1,751,005 shares issued and outstanding                     |   |         |        |   |                  |   |   |   |
| (liquidation preference and cumulative dividends of $4,714,433)       |   |         | 17,509      |   |                  |   | 17,509 |   |
| Common stock, $0.01 par vaue, 90,000,000 shares authorized;           |   |         |        |   |                  |   |   |   |
| 61,786,822 and 59,349,300 shares issued and outstanding, respectively |   |         | 617,868     |   |                  |   | 593,492 |   |
| Additional paid-in capital                                            |   |         | 30,750,974  |   |                  |   | 25,635,129 |   |
| Accumulated deficit                                                   |   |         | (19,599,499 | )      |                  |   | (19,487,036 | ) |
| Total stockholders' equity                                            |   |         | 11,796,131  |   |                  |   | 6,768,373 |   |
| Total liabilities and stockholders' equity                            |   | $            | 13,437,010  |   |                  | $      | 8,993,528 |   |

----

|                                 |   | For the three months ended |       |   | For the six months ended |    |
|--------------------------------------|--------|----------------------------|------------|--------|--------------------------|---------|
|                                 |   | June 30, 2012              |       |   | June 30, 2011            |    |   | June 30, 2012 |   |   | June 30, 2011 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |
| REVENUES                             |   | $                          | 3,498,301  |   |                     | $       | 3,050,002 |   |   | $ | 6,551,855 |   |   | $ | 5,888,041 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| COST OF REVENUES                     |   |                       | 3,209,381  |   |                     |    | 2,805,524 |   |   |   | 6,142,206 |   |   |   | 5,364,696 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                         |   |                       | 288,920    |   |                     |    | 244,478 |   |   |   | 409,649 |   |   |   | 523,345 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                  |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| General and administrative           |   |                       | 228,411    |   |                     |    | 89,967 |   |   |   | 415,984 |   |   |   | 170,316 |   |
| Professional fees                    |   |                       | 34,337     |   |                     |    | 30,888 |   |   |   | 132,644 |   |   |   | 125,840 |   |
| TOTAL OPERATING EXPENSES             |   |                       | 262,748    |   |                     |    | 120,855 |   |   |   | 548,628 |   |   |   | 296,156 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) FROM OPERATIONS        |   |                       | 26,172     |   |                     |    | 123,623 |   |   |   | (138,979 | ) |   |   | 227,189 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):              |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| Interest income                      |   |                       | 1,493      |   |                     |    | 1,526 |   |   |   | 3,549 |   |   |   | 2,442 |   |
| Factoring expense                    |   |                       | (23,895    | )      |                     |    | (38,721 | ) |   |   | (51,344 | ) |   |   | (73,414 | ) |
| TOTAL OTHER INCOME (EXPENSE)         |   |                       | (22,402    | )      |                     |    | (37,195 | ) |   |   | (47,795 | ) |   |   | (70,972 | ) |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES    |   |                       | 3,770      |   |                     |    | 86,428 |   |   |   | (186,774 | ) |   |   | 156,217 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| INCOME TAX (EXPENSE) BENEFIT         |   |                       | -          |   |                     |    | - |   |   |   | 74,311 |   |   |   | (24,426 | ) |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                    |   | $                          | 3,770      |   |                     | $       | 86,428 |   |   | $ | (112,463 | ) |   | $ | 131,791 |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share of       |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| common stock:                        |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   | $                     |  Nil  |   |                     | $  |  Nil |   |   | $  |  Nil |   |   | $  |  Nil |   |
| Diluted                              |   | $                     |  Nil  |   |                     | $  |  Nil |   |   | $  |  Nil |   |   | $  |  Nil |   |
|                                 |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding: |   |                       |       |   |                     |    |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   |                       | 61,786,822 |   |                     |    | 59,150,784 |   |   |   | 61,786,822 |   |   |   | 58,157,638 |   |
| Diluted                              |   |                       | 62,427,710 |   |                     |    | 59,662,620 |   |   |   | 61,786,822 |   |   |   | 58,618,325 |   |

----

|                                                            |   | For the six months ended |       |
|-----------------------------------------------------------------|--------|--------------------------|------------|
|                                                            |   | June 30, 2012            |       |   | June 30, 2011 |   |
| Cash Flows From Operating Activities:                           |   |                     |       |   |   |   |
| Net income (loss)                                               |   | $                        | (112,463   | ) |   | $ | 131,791 |   |
| Adjustments to reconcile net income (loss) to net cash          |   |                     |       |   |   |   |   |   |
| provided (used) by operating activities:                        |   |                     |       |   |   |   |   |   |
| Depreciation and amortization expense                           |   |                     | 217,385    |   |   |   | 192,503 |   |
| Accretion of asset retirement obligation                        |   |                     | 4,020      |   |   |   |   |   |
| Common stock issued to directors for services                   |   |                     | 176,191    |   |   |   | - |   |
| Deferred income tax expense (benefit)                           |   |                     | (74,311    | ) |   |   | 21,926 |   |
| Change in:                                                      |   |                     |       |   |   |   |   |   |
| Accounts receivable, net                                        |   |                     | 835,467    |   |   |   | (349,421 | ) |
| Inventories                                                     |   |                     | (10,458    | ) |   |   | (621,558 | ) |
| Other current assets                                            |   |                     | 250,736    |   |   |   | (23,770 | ) |
| Other assets                                                    |   |                     | (73,920    | ) |   |   | (5,183 | ) |
| Accounts payable                                                |   |                     | (165,611   | ) |   |   | 428,132 |   |
| Accrued payroll, taxes and interest                             |   |                     | (43,519    | ) |   |   | 12,839 |   |
| Other accrued liabilities                                       |   |                     | (55,596    | ) |   |   | (44,330 | ) |
| Deferred revenue                                                |   |                     | (43,760    | ) |   |   | - |   |
| Payables to related parties                                     |   |                     | (321,544   | ) |   |   | 24,203 |   |
| Net cash provided (used) by operating activities                |   |                     | 582,617    |   |   |   | (232,868 | ) |
|                                                            |   |                     |       |   |   |   |   |   |
| Cash Flows From Investing Activities:                           |   |                     |       |   |   |   |   |   |
| Purchase of certificates of deposit                             |   |                     | (242,800   | ) |   |   | - |   |
| Purchase of properties, plants and equipment                    |   |                     | (1,370,877 | ) |   |   | (1,037,912 | ) |
| Net cash used by investing activities                           |   |                     | (1,613,677 | ) |   |   | (1,037,912 | ) |
|                                                            |   |                     |       |   |   |   |   |   |
| Cash Flows From Financing Activities:                           |   |                     |       |   |   |   |   |   |
| Proceeds from sale of common stock, net of offering costs       |   |                     | 4,711,842  |   |   |   | 1,163,248 |   |
| Principal payments on long-term debt                            |   |                     | (128,298   | ) |   |   | (86,958 | ) |
| Payments received on stock subscription agreements              |   |                     | -          |   |   |   | 59,907 |   |
| Change in checks issued and payable                             |   |                     | (113,908   | ) |   |   | - |   |
| Net cash provided by financing activities                       |   |                     | 4,469,636  |   |   |   | 1,136,197 |   |
|                                                            |   |                     |       |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            |   |                     | 3,438,576  |   |   |   | (134,583 | ) |
|                                                            |   |                     |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                |   |                     | 5,427      |   |   |   | 448,861 |   |
| Cash and cash equivalents at end of period                      |   | $                        | 3,444,003  |   |   | $ | 314,278 |   |
|                                                            |   |                     |       |   |   |   |   |   |
|                                                            |   |                     |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                |   |                     |       |   |   |   |   |   |
| Noncash investing and financing activities:                     |   |                     |       |   |   |   |   |   |
| Properties, plants and equipment acquired with long-term debt   |   | $                        | 283,940    |   |   | $ | 229,100 |   |
| Properties, plants and equipment acquired with accounts payable |   |                     | -          |   |   | $ | 89,654 |   |
| Common stock issued for prepaid directors fees                  |   | $                        | 358,800    |   |   |   | - |   |

----

|                        |   | June 30, 2012 |      |   | June 30, 2011 |   |      | June 30, 2012 |   |   | June 30, 2011 |   |
|-----------------------------|--------|--------------------|-----------|--------|--------------------|--------|-----------|--------------------|--------|--------|--------------------|--------|
| Warrants                    |   |               | 1,248,779 |   |               |   | 88,164    |               |   |   | 1,889,667          |   |   |   | 139,313 |   |
| Convertible preferred stock |   |               | 1,751,005 |   |               |   | 1,751,005 |               |   |   | 1,751,005          |   |   |   | 1,751,005 |   |
| Total possible dilution     |   |               | 2,999,784 |   |               |   | 1,839,169 |               |   |   | 3,640,672          |   |   |   | 1,890,318 |   |

|                                         |   | June 30, 2012 |      |   | December 31, 2011 |   |
|----------------------------------------------|--------|--------------------|-----------|--------|-----------------------------|--------|
| Antimony Metal                               |   |               | 11,760    |   |                        |   | 152,026 |   |
| Antimony Oxide                               |   |               | 186,210   |   |                        |   | 180,404 |   |
| Antimony Ore                                 |   |               | 784,876   |   |                        |   | 644,113 |   |
|      Total antimony |   |               | 982,846   |   |                        |   | 976,543 |   |
| Zeolite                                      |   |               | 94,425    |   |                        |   | 90,270 |   |
|                                         |   | $                  | 1,077,271 |   |                        | $      | 1,066,813 |   |

----

|                                                                |   | 2012   |     |   | 2011   |   |
|---------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Note payable to De Lage Landen financial Services, bearing interest |   |   |     |   |
| at 5.3%; payable in monthly installments of $549; maturing          |   |   |     |   |   |   |
| March 2016; collateralized by equipment.                            |   | $      | 22,361   |   |   | $      | - |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to Western States Equipment Co., bearing interest      |   |   |     |   |   |   |   |   |
| at 6.15%; payable in monthly installments of $2,032; maturing       |   |   |     |   |   |   |   |   |
| June 2015; collateralized by equipment.                             |   |   | 66,668   |   |   |   | 77,040 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to CNH Capital America, LLC, bearing interest          |   |   |     |   |   |   |   |   |
| at 4.5%; payable in monthly installments of $505; maturing          |   |   |     |   |   |   |   |   |
| June 2013; collateralized by equipment.                             |   |   | 5,904    |   |   |   | 8,648 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to GE Capital, bearing interest at 2.25%; payable in   |   |   |     |   |   |   |   |   |
| monthly installments of $359; maturing July 2013; collateralized by |   |   |     |   |   |   |   |   |
| equipment.                                                          |   |   | 4,955    |   |   |   | 6,531 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to Robert and Phyllis Rice, bearing interest           |   |   |     |   |   |   |   |   |
| at 1%; payable in monthly installments of $2,000; maturing          |   |   |     |   |   |   |   |   |
| March 2015; collateralized by equipment.                            |   |   | 65,206   |   |   |   | 80,882 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to De Lage Landen Financial Services                   |   |   |     |   |   |   |   |   |
| at 5.2%; payable in monthly installments of $709; maturing          |   |   |     |   |   |   |   |   |
| July 2014; collateralized by equipment.                             |   |   | 16,104   |   |   |   | 19,229 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to Catepillar Finance, bearing interest                |   |   |     |   |   |   |   |   |
| at 6.15%; payable in monthly installments of $766; maturing         |   |   |     |   |   |   |   |   |
| August 2014; collateralized by equipment.                           |   |   | 18,597   |   |   |   | 21,990 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable to De Lage Landen Financial Services                   |   |   |     |   |   |   |   |   |
| at 5.2%; payable in monthly installments of $697; maturing          |   |   |     |   |   |   |   |   |
| January 2015; collateralized by equipment.                          |   |   | 20,202   |   |   |   | 23,529 |   |
|                                                                |   |   |     |   |   |   |   |   |
| Note payable for Corral Blanco land, bearing interest               |   |   |     |   |   |   |   |   |
| at 6%; payable in three installments; maturing                      |   |   |     |   |   |   |   |   |
| May 1, 2013; collateralized by land.                                |   |   | 173,494  |   |   |   |   |   |
|                                                                |   |   |     |   |   |   |   |   |
|                                                                |   |   | 393,491  |   |   |   | 237,849 |   |
| Less current portion                                                |   |   | (258,988 | )      |   |   | (79,631 | ) |
| Noncurrent portion                                                  |   | $      | 134,503  |   |   | $      | 158,218 |   |

----

----

|                       |   | Number of |      |   | Exercise |   |
|----------------------------|--------|-----------|-----------|--------|----------|--------|
|                       |   | Warrants  |      |   | Prices   |   |
| Balance, December 31, 2010 |   |      | 725,000   |   |     | $      | 0.20-$0.75 |   |
| Warrants exercised         |   |      | (125,000  | )      |     | $      | 0.30-$0.40 |   |
| Balance, December 31, 2011 |   |      | 600,000   |   |     | $      | 0.30-$0.60 |   |
| Warrants granted           |   |      | 1,579,417 |   |     | $      | 2.50-$4.50 |   |
| Warrants exercised         |   |      | (52,500   | )      |     | $      | 2.50 |   |
| Warrants expired           |   |      | (350,000  | )      |     | $      | 0.30-$0.40 |   |
| Balance, June 30, 2012     |   |      | 1,776,917 |   |     | $      | 0.20-$4.50 |   |

|                                   |   | As of June 30, 2012 |       |   | As of December 31,2011 |   |
|----------------------------------------|--------|---------------------|------------|--------|-----------------------------|--------|
| Properties, plants and equipment, net: |   |                |       |   |                        |   |
| Antimony                               |   |                |       |   |                        |   |
| United States                          |   | $                   | 1,705,370  |   |                        | $      | 1,657,473 |   |
| Mexico                                 |   |                | 4,125,674  |   |                        |   | 2,791,233 |   |
| Subtotal Antimony                      |   |                | 5,831,044  |   |                        |   | 4,448,706 |   |
| Zeolite                                |   |                | 1,653,392  |   |                        |   | 1,598,298 |   |
|    Total                |   | $                   | 7,484,436  |   |                        | $      | 6,047,004 |   |
|                                   |   |                |       |   |                        |   |   |   |
| Total Assets:                          |   |                |       |   |                        |   |   |   |
| Antimony                               |   |                |       |   |                        |   |   |   |
| United States                          |   | $                   | 6,409,667  |   |                        | $      | 2,240,836 |   |
| Mexico                                 |   |                | 4,973,792  |   |                        |   | 4,291,187 |   |
| Subtotal Antimony                      |   |                | 11,383,459 |   |                        |   | 6,532,023 |   |
| Zeolite                                |   |                | 2,053,551  |   |                        |   | 2,461,505 |   |
|    Total                |   | $                   | 13,437,010 |   |                        | $      | 8,993,528 |   |

----

|                    |   | For the three months ended |    |   | For the six months ended |   |
|-------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                    |   | June 30, 2012              |    |   | June 30, 2011            |   |   | June 30, 2012 |   |   | June 30, 2011 |   |
| Capital expenditures:   |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Antimony                |   |                       |    |   |                     |   |   |   |   |   |   |   |
| United States           |   | $                          | 17,850  |   |                     | $      | 22,067 |   |   | $ | 62,618 |   |   | $ | 79,289 |   |
| Mexico                  |   |                       | 671,987 |   |                     |   | 997,867 |   |   |   | 1,434,827 |   |   |   | 1,089,236 |   |
| Subtotal Antimony       |   |                       | 689,837 |   |                     |   | 1,019,934 |   |   |   | 1,497,445 |   |   |   | 1,168,525 |   |
| Zeolite                 |   |                       | 116,485 |   |                     |   | 188,140 |   |   |   | 157,372 |   |   |   | 188,140 |   |
|    Total |   | $                          | 806,322 |   |                     | $      | 1,208,074 |   |   | $ | 1,654,817 |   |   | $ | 1,356,665 |   |

|            |   | For the three months ended |      |   | For the six months ended |   |
|-----------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|            |   | June 30, 2012              |      |   | June 30, 2011            |   |   | June 30, 2012 |   |   | June 30, 2011 |   |
| Revenues:       |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Antimony        |   | $                          | 2,525,097 |   |                     | $      | 2,421,903 |   |   | $ | 4,699,906 |   |   | $ | 4,686,136 |   |
| Precious metals |   |                       | 205,771   |   |                     |   | 157,841 |   |   |   | 385,909 |   |   |   | 339,040 |   |
| Zeolite         |   |                       | 767,433   |   |                     |   | 470,258 |   |   |   | 1,466,040 |   |   |   | 862,865 |   |
| Total           |   | $                          | 3,498,301 |   |                     | $      | 3,050,002 |   |   | $ | 6,551,855 |   |   | $ | 5,888,041 |   |

|          |   | For the three months ended |    |   | For the six months ended |   |
|---------------|--------|----------------------------|---------|--------|--------------------------|--------|
|          |   | June 30, 2012              |    |   | June 30, 2011            |   |   | June 30, 2012 |   |   | June 30, 2011 |   |
| Gross profit: |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Antimony      |   | $                          | 191,146 |   |                     | $      | 246,991 |   |   | $ | 264,978 |   |   | $ | 528,237 |   |
| Zeolite       |   |                       | 97,774  |   |                     |   | (2,513 | ) |   |   | 144,671 |   |   |   | (4,892 | ) |
| Total         |   | $                          | 288,920 |   |                     | $      | 244,478 |   |   | $ | 409,649 |   |   | $ | 523,345 |   |

|                    |   | For the three months ended |    |   | For the six months ended |   |
|-------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                    |   | June 30, 2012              |    |   | June 30, 2011            |   |   | June 30, 2012 |   |   | June 30, 2011 |   |
| Depreciation and        |   |                       |    |   |                     |   |   |   |   |   |   |   |
|   amortization:    |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Antimony                |   | $                          | 57,533  |   |                     | $      | 50,039 |   |   | $ | 115,106 |   |   | $ | 96,866 |   |
| Zeolite                 |   |                       | 52,461  |   |                     |   | 49,498 |   |   |   | 102,278 |   |   |   | 95,637 |   |
|    Total |   | $                          | 110,014 |   |                     | $      | 99,537 |   |   | $ | 217,384 |   |   | $ | 192,503 |   |

----

| Results of Operations by Division                  |   |    |       |   |    |   |       |       |   |   |       |   |
|----------------------------------------------------|--------|---------|------------|--------|---------|--------|------------|------------|--------|--------|------------|--------|
|                                               |   |    |       |   |    |   |       |       |   |   |       |   |
| Antimony - Combined USA                            |   | 2nd Qtr |       |   | 2nd Qtr |   |       | Six Months |   |   | Six Months |   |
|    and Mexico                       |   | 2012    |       |   | 2011    |   |       | 2012       |   |   | 2011       |   |
| Lbs of Antimony Metal USA                          |   |    | 320,671    |   |    |   | 290,499    |       |   |   | 569,265    |   |   |   | 569,159 |   |
| Lbs of Antimony Metal Mexico:                      |   |    | 70,259     |   |    |   | 29,663     |       |   |   | 165,617    |   |   |   | 72,364 |   |
|    Total Lbs of Antimony Metal Sold |   |    | 390,930    |   |    |   | 320,162    |       |   |   | 734,882    |   |   |   | 641,523 |   |
| Sales Price/Lb Metal                               |   | $       | 6.46       |   |    | $      | 7.56       |       |   | $      | 6.40       |   |   | $ | 7.30 |   |
| EBITDA/Lb Metal                                    |   | $       | (0.09      | )      |    | $      | 0.43       |       |   | $      | (0.29      | )      |   | $ | 0.40 |   |
| Net income (loss)/Lb Metal                         |   | $       | (0.24      | )      |    | $      | 0.28       |       |   | $      | (0.45      | )      |   | $ | 0.25 |   |
|                                               |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Gross antimony revenue - net of discount           |   | $       | 2,525,097  |   |    | $      | 2,421,903  |       |   | $      | 4,699,906  |   |   | $ | 4,686,136 |   |
| Precious metals revenue                            |   |    | 205,771    |   |    |   | 157,841    |       |   |   | 385,909    |   |   |   | 339,040 |   |
| Production costs - USA                             |   |    | (1,647,645 | )      |    |   | (1,922,781 | )          |   |   | (3,155,275 | )      |   |   | (3,516,347 | ) |
| Product cost - Mexico                              |   |    | (328,110   | )      |    |   | (138,526   | )          |   |   | (773,433   | )      |   |   | (337,940 | ) |
| Direct sales and freight                           |   |    | (139,518   | )      |    |   | (65,220    | )          |   |   | (213,977   | )      |   |   | (143,504 | ) |
| General and administrative - operating             |   |    | (135,872   | )      |    |   | (50,062    | )          |   |   | (199,498   | )      |   |   | (106,687 | ) |
| Mexico non-production costs                        |   |    | (231,024   | )      |    |   | (106,125   | )          |   |   | (363,548   | )      |   |   | (295,595 | ) |
| General and administrative - non-operating         |   |    | (286,643   | )      |    |   | (159,576   | )          |   |   | (599,972   | )      |   |   | (369,570 | ) |
| Net interest                                       |   |    | 1,493      |   |    |   | 1,526      |       |   |   | 3,549      |   |   |   | 2,442 |   |
|    EBITDA                           |   |    | (36,451    | )      |    |   | 138,980    |       |   |   | (216,339   | )      |   |   | 257,975 |   |
| Depreciation & amortization                    |   |    | (57,553    | )      |    |   | (50,039    | )          |   |   | (115,106   | )      |   |   | (96,866 | ) |
| Net income (loss) - antimony                       |   | $       | (94,004    | )      |    | $      | 88,941     |       |   | $      | (331,445   | )      |   | $ | 161,109 |   |
|                                               |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Zeolite                                            |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Tons sold                                          |   |    | 3,251      |   |    |   | 3,133      |       |   |   | 6,717      |   |   |   | 5,843 |   |
| Sales Price/Ton                                    |   | $       | 236.06     |   |    | $      | 150.10     |       |   | $      | 218.26     |   |   | $ | 147.67 |   |
| EBITDA/Ton                                         |   | $       | 46.21      |   |    | $      | 15.00      |       |   | $      | 36.76      |   |   | $ | 15.53 |   |
| Net income (Loss)/Ton                              |   | $       | 30.08      |   |    | $      | (0.80      | )          |   | $      | 21.54      |   |   | $ | (0.84 | ) |
|                                               |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Gross zeolite revenue                              |   | $       | 767,433    |   |    | $      | 470,258    |       |   | $      | 1,466,040  |   |   | $ | 862,865 |   |
| Production costs                                   |   |    | (492,674   | )      |    |   | (315,310   | )          |   |   | (980,976   | )      |   |   | (588,612 | ) |
| Direct sales and freight                           |   |    | (46,442    | )      |    |   | (28,980    | )          |   |   | (89,718    | )      |   |   | (45,090 | ) |
| Royalties                                          |   |    | (62,236    | )      |    |   | (52,139    | )          |   |   | (129,046   | )      |   |   | (97,051 | ) |
| General and administrative                         |   |    | (15,846    | )      |    |   | (26,844    | )          |   |   | (19,351    | )      |   |   | (41,367 | ) |
|    EBITDA                           |   |    | 150,235    |   |    |   | 46,985     |       |   |   | 246,949    |   |   |   | 90,745 |   |
| Depreciation                                       |   |    | (52,461    | )      |    |   | (49,498    | )          |   |   | (102,278   | )      |   |   | (95,637 | ) |
| Net income  (loss) - zeolite             |   | $       | 97,774     |   |    | $      | (2,513     | )          |   | $      | 144,671    |   |   | $ | (4,892 | ) |
|                                               |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Company-wide                                       |   |    |       |   |    |   |       |       |   |   |       |   |   |   |   |   |
| Gross revenue                                      |   | $       | 3,498,301  |   |    | $      | 3,050,002  |       |   | $      | 6,551,855  |   |   | $ | 5,888,041 |   |
| Production costs                                   |   |    | (2,468,429 | )      |    |   | (2,376,617 | )          |   |   | (4,909,684 | )      |   |   | (4,442,899 | ) |
| Other operating costs                              |   |    | (630,938   | )      |    |   | (329,370   | )          |   |   | (1,015,138 | )      |   |   | (729,294 | ) |
| General and administrative - non-operating         |   |    | (286,643   | )      |    |   | (159,576   | )          |   |   | (599,972   | )      |   |   | (369,570 | ) |
| Net interest                                       |   |    | 1,493      |   |    |   | 1,526      |       |   |   | 3,549      |   |   |   | 2,442 |   |
|    EBITDA                           |   |    | 113,784    |   |    |   | 185,965    |       |   |   | 30,610     |   |   |   | 348,720 |   |
| Income tax benefit (expense)                       |   |    |       |   |    |   |       |       |   |   | 74,311     |   |   |   | (24,426 | ) |
| Depreciation & amortization                    |   |    | (110,014   | )      |    |   | (99,537    | )          |   |   | (217,384   | )      |   |   | (192,503 | ) |
|    Net income (loss)                |   | $       | 3,770      |   |    | $      | 86,428     |       |   | $      | (112,463   | )      |   | $ | 131,791 |   |

----

| Financial Condition and Liquidity                      |   | June 30, 2012 |       |   | December 31, 2011 |   |
|--------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                   |   |          |       |   |              |   |
| Current Assets                                         |   | $             | 5,749,111  |   |              | $      | 2,816,981 |   |
| Current liabilities                                    |   |          | (1,260,856 | )      |              |   | (1,595,433 | ) |
|    Net Working Capital                  |   | $             | 4,488,255  |   |              | $      | 1,221,548 |   |
|                                                   |   |          |       |   |              |   |   |   |
| Cash provided (used) by operations                     |   | $             | 582,617    |   |              | $      | 564,041 |   |
| Cash (used) by investing                               |   |          | (1,613,677 | )      |              |   | (2,239,441 | ) |
| Cash provided (used) by financing:                     |   |          |       |   |              |   |   |   |
|    Principal paid on long-term debt     |   |          | (128,298   | )      |              |   | (124,722 | ) |
|    Sale of Stock                        |   |          | 4,711,842  |   |              |   | 1,242,780 |   |
|    Other                                |   |          | (113,908   | )      |              |   | 113,908 |   |
|       Net change in cash |   | $             | 3,438,576  |   |              | $      | (443,434 | ) |

----

| ●   | The Company lacks proper segregation of duties. As with any company the size of ours, this lack of segregation of duties is due to limited resources. The president authorizes the majority of the expenditures and signs checks. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | During its year-end audit, our independent registered accountants discovered material misstatements in our financial statements that required audit adjustments. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The CFO will review all bank reconciliations |
|---------------------|----------------------------------------------|

| ●   | The CFO will review all material transactions for capital expenditures |
|---------------------|------------------------------------------------------------------------|

| ●   | The CFO will review all period ending entries for preparation of financial statements, including the calculation of inventory, depreciation, and amortization |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The CFO will review all material entries for compliance with generally accepted accounting principles prior to the annual audit and 10Q filings |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The CFO will develop a formal capitalization policy |
|---------------------|-----------------------------------------------------|

| ●   | In addition, we plan to consult with independent experts when complex transactions are entered into. |
|---------------------|------------------------------------------------------------------------------------------------------|

----

| Mine               |   | Mine Act §104 Violations (1) |   |   | Mine Act §104(b) Orders (2) |   |   | Mine Act §104(d) Citations and Orders (3) |   |   | Mine Act §(b)(2) Violations (4) |   |   | Mine Act §107(a) Orders (5) |   |   | Proposed Assessments from MSHA (In dollars$) |   |   | Mining Related Fatalities |   | Mine Act §104(e) Notice (yes/no) (6) |     | Pending Legal Action before Federal Mine Saftey and Health Review Commission (yes/no) |   |
|--------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------|--------|--------|----------------------------------------------|--------|--------|---------------------------|--------|-------------------------------------------|----------|---------------------------------------------------------------------------------------|--------|
|               |   |                              |   |   |                             |   |   |                                           |   |   |                                 |   |   |                             |   |   |                                         |   |   |                      |   |                                      |     |                                                                                  |   |   |   |   |   |   |   |   |
| Bear River Zeolite |   |                              | 0      |   |                             |   | 0      |                                           |   |   | 0                                    |   |   |                             | 0      |   |                                         |   | 0      |                      |   | $                                         | 1,126.00 |                                                                                  |   |   | 0 |   | No |   | No |   |

----

|   | UNITED STATES ANTIMONY CORPORATION |                                     |
|--------|------------------------------------|------------------------------------------|
|   | (Registrant)                       |                                     |
|   |                               |                                     |   |
| Date:  |                               |                                     | By: | /s/ John C. Lawrence |   |
|   |                               | John C. Lawrence, Director and President |   |
|   |                               | (Principal Executive)                    |   |

| Date:  |   |                                     | By:    | /s/ Daniel L. Parks |   |
|-------------|--------|------------------------------------------|--------|--------------------------|--------|
|        |   | Daniel L. Parks, Chief Financial Officer |   |

----