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<TITLE> UNITED STATES</TITLE>
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<p align="center">UNITED STATES</p>

<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>

<p align="center">Washington, D.C. 20549</p>

<p align="center">FORM l0-QSB</p>

<p> </p>

<p>(Mark One)</p>

<p>(X) QUARTERLY REPORT UNDER SECTlON 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p>

<p>                                      
For the quarterly period ended March 31, 2000</p>

<p>( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT</p>

<p>                                      
For the transition period from______ to_____ </p>

<p> </p>

<p align="center">Commission File Number 33-18582</p>

<p> </p>

<p align="center"><u>ITRONICS INC.</u></p>

<p align="center">(Exact name of small business issuer as specified in its charter)</p>

<p> </p>

<p>           <u>TEXAS</u>
                                      
<u>75-2198369</u></p>

<p>(State or other jurisdiction of
            (IRS Employer
Identification Number)</p>

<p>incorporation or organization) </p>

<p> </p>

<p><u>6490 S. McCarran Blvd., Bldg C-23, Reno, Nevada 89509</u></p>

<p>(Address of principal executive offices)</p>

<p> </p>

<p>Issuer's telephone number, including area code: <u>(775)689-7696</u></p>

<p> </p>

<p align="center"><u>NO CHANGE</u></p>

<p>Former name, former address and former fiscal, if changes since last report.</p>

<p> </p>

<p>Check whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act 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 during the past 90 days. Yes (x) No ( ).</p>

<p> </p>

<hr>

<p> </p>

<p>APPLICABLE ONLY TO CORPORATE ISSUERS</p>

<p>State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:</p>

<p>As of April 30, 2000, 73,104,270 shares of common stock were outstanding.</p>

<p>Transitional Small Business Disclosure Format (Check one): Yes ( ) No (X)</p>

<p align="center">2</p>

<hr>

<p> </p>

<p align="center">ITRONICS INC. AND SUBSIDIARIES</p>

<p align="center">TABLE OF CONTENTS</p>

<p align="left">PART I - FINANCIAL INFORMATION</p>

<p> </p>

<p>Item 1. Financial Statements</p>

<p>Condensed Consolidated Balance Sheets – March 31, 2000</p>

<p>  and December 31, 1999
                                          
                  
4</p>

<p>Condensed Consolidated Statements of Operations and Comprehensive</p>

<p>  (Loss) for the Three Months Ended March 31, 2000 and 1999.
                       
6</p>

<p>Condensed Consolidated Statements of Cash Flows for the</p>

<p>  Three Months Ended March 31, 2000 and 1999.
                                      
7</p>

<p>Notes to Condensed Consolidated Financial Statements
                               
8</p>

<p> </p>

<p>Item 2. Management's Discussion and Analysis or Plan of</p>

<p>Operation
                                          
                                
9</p>

<p> </p>

<p>PART II- OTHER INFORMATION</p>

<p> </p>

<p>Item 1. Legal Proceedings
                                          
               
15</p>

<p>Item 2. Changes in Securities and Use of Proceeds
                                 
15</p>

<p>Item 6. Exhibits and Reports on Form 8-K
                                          
16</p>

<p align="center">3</p>

<p> </p>

<hr>

<p>PART I - FINANCIAL INFORMATIONON</p>

<p><u>Item 1. Financial Statements</u></p>

<p> </p>

<p align="center">ITRONICS INC. AND SUBSIDIARIES</p>

<p align="center">CONDENSED CONSOLIDATED BALANCE SHEETS</p>

<p align="center">MARCH 31, 2000 AND DECEMBER 31, 1999</p>

<p align="center">(UNAUDITED)</p>

<p align="center">ASSETS</p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="729" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="934"><u><font FACE="Courier New" SIZE="2">CURRENT ASSETS</font></u></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>March 31, 2000</u> </font></td>
    <td width="320" align="right"><u><font FACE="Courier New" SIZE="2">Dec. 31, 1999</font></u></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Cash  </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">$2,362,502</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">$ 142,287</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Accounts receivable </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">194,936 </font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">225,089</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Account receivable,
    equipment financing </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">2,733</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">133,669</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Notes receivable,
    subscriptions of stock </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">13,591</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">13,591</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Inventories </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">215,891</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">54,981</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Deferred loan fees, current
    portion </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">14,307</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">7,923</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Prepaid expenses </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>211,256</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>94,669</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Total Current Assets </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>3,015,216</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>672,209</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2"><u>PROPERTY AND EQUIPMENT</u></font></td>
    <td width="299" align="right"> </td>
    <td width="320" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Land </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">215,000</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">215,000</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Building and improvements </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">971,587</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">787,526</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Plant design/construction
    in progress </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">-  </font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">681,225</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Leasehold improvements </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">14,212</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">14,212</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Equipment and furniture </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">1,194,713</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">433,316</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Vehicles </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">96,758</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">69,155</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Equipment under capital
    lease  </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>844,539</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>803,555 </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"> </td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">3,336,809</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">3,003,989</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Less: Accumulated
    depreciation and amort. </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>351,961</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>336,326</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"> </td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>2,984,848</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>2,667,663</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2"><u>OTHER ASSETS</u></font></td>
    <td width="299" align="right"> </td>
    <td width="320" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Intangibles, net of
    amortization </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">68,411</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">71,219</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Marketable securities,
    available for sale </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">195,349</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">165,660</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Investment in non-public
    company </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">30,000</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">30,000</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Deferred loan fees, less
    current portion </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">53,889</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">31,694</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Investment in American Gold
    & Silver Ltd. </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2">9,250</font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2">9,250</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"><font FACE="Courier New" SIZE="2">Deposits </font></td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>45,001</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>29,647</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"> </td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>401,900</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>337,470</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="934"> </td>
    <td width="299" align="right"><font FACE="Courier New" SIZE="2"><u>$6,401,964</u></font></td>
    <td width="320" align="right"><font FACE="Courier New" SIZE="2"><u>$3,677,342</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<dir>
  <dir>
    <p align="center">See Notes to Condensed Consolidated Financial Statements</p>
    <p align="center">4</p>
    <hr>
  </dir>
</dir>

<p ALIGN="CENTER">ITRONICS INC. AND SUBSIDIARIES</p>

<p ALIGN="CENTER">CONDENSED CONSOLIDATED BALANCE SHEETS</p>

<p ALIGN="CENTER">MARCH 31, 2000 AND DECEMBER 31, 1999</p>

<p ALIGN="CENTER">(UNAUDITED)</p>

<p ALIGN="CENTER">LIABILITIES AND STOCKHOLDERS' EQUITY</p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="716" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2"><u>CURRENT LIABILITIES</u></font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>March 31, 2000 </u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>Dec. 31, 1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accounts payable </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">$ 325,600</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">$ 382,882</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accrued management salaries
    </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">12,570</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">15,513</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accrued expenses </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">100,110</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">88,491</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Contracts payable </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">26,573</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">16,127</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Interest payable </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">7,772</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">12,490</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Current maturities of
    long-term debt </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">  and leases </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">199,900</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">162,855</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Current maturities of
    advances and leases </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">  from stockholders </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">26,501</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">35,785</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Other </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>13,131</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>13,131</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Total Current Liabilities </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>712,157</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>727,274</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2"><u>LONG-TERM LIABILITIES </u></font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Long-term debt and leases,
    less current </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">  maturities </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">931,915</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">777,960</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Convertible promissory
    notes </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">2,668,000</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">100,000</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accrued interest,
    convertible notes </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">40,421</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">-  </font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accrued salary due
    stockholder </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">27,654</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">29,454</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Deferred gain, less current
    maturities </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>31,626</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>34,209</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Total Long-Term Liabilities
    </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>3,699,616</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>941,623</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"> </td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>4,411,773</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>1,668,897</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2"><u>STOCKHOLDERS' EQUITY</u></font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Preferred stock (-0- shares
    outstanding) </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">-   </font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">-  </font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Common stock (72,961,335
    shares outstanding at</font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">  March 31, 2000 and
    70,828,231 outstanding at</font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">  December 31, 1999) </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">72,961</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">70,828</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Additional paid-in capital </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">8,800,479</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">8,013,746</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accumulated deficit </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">(7,081,512)</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">(6,276,762)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Common stock to be issued </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">128,931</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">104,061</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Accumulated other
    comprehensive income </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">95,671</font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2">92,799</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"><font FACE="Courier New" SIZE="2">Common stock options
    outstanding, net </font></td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>(26,339)</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>3,773</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"> </td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>1,990,191</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>2,008,445</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="407"> </td>
    <td width="134" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>$6,401,964</u></font></td>
    <td width="121" align="right" bordercolor="#FFFFFF" bordercolorlight="#FFFFFF"
    bordercolordark="#FFFFFF"><font FACE="Courier New" SIZE="2"><u>$3,677,342</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p align="center">See Notes to Condensed Consolidated Financial Statements</p>

<p align="center">5</p>

<hr>

<p ALIGN="CENTER">ITRONICS INC. AND SUBSIDIARIES</p>

<p ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME</p>

<p ALIGN="CENTER">FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999</p>

<p ALIGN="CENTER">(UNAUDITED)</p>

<p> </p>

<p>                                          
                
<u>Three Months Ended March 31,</u></p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="692" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2"><u>REVENUES</u></font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>2000 </u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>1999 </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Fertilizer </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">$ 11,375</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">$ 12,181</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Photobyproduct recycling </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">46,843</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">27,955</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Silver </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">34,592</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">21,034</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Mining technical services </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>188,828</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>70,313</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Total
    Revenues </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">281,638</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">131,483</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">COST OF SALES </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>331,653</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>204,813</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Gross Profit
    (Loss) </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">(50,015)</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">(73,330)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2"><u>OPERATING EXPENSES</u></font></td>
    <td VALIGN="top" width="363" align="right"> </td>
    <td VALIGN="top" width="195" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Depreciation and
    amortization </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">28,215</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">14,649</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Research and development </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">13,059</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">13,037</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Sales and marketing </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">437,567</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">184,806</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Plant moving and start-up
    costs </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">57,482</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">22,821</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">General and administration
    </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>195,208</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>113,396</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"> </td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>731,531</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>348,709</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Operating
    Income (Loss) </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>(781,546)</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>(422,039)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2"><u>OTHER INCOME (EXPENSE) </u></font></td>
    <td VALIGN="top" width="363" align="right"> </td>
    <td VALIGN="top" width="195" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Interest expense </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">(44,560)</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">(15,635)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Interest income </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>21,356</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>1,182</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Total Other
    Income (Expense) </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>(23,204)</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>(14,453)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   (Loss) before
    provision for income taxes </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>(804,750)</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>(436,492)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Provision for income taxes
    </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>-
       </u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>-
       </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Net Income
    (loss) </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2">(804,750)</font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2">(436,492)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Other comprehensive income
    (loss)</font></td>
    <td VALIGN="top" width="363" align="right"> </td>
    <td VALIGN="top" width="195" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">   Unrealized
    gains (losses) on securities </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>2,872</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>-
       </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Comprehensive Income
    (Loss) </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>$(801,878)</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>$(436,492)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Weighted average number of</font></td>
    <td VALIGN="top" width="363" align="right"> </td>
    <td VALIGN="top" width="195" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">  shares outstanding
    (1,000's)  </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>71,809</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>57,771 </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="1090"><font FACE="Courier New" SIZE="2">Earnings (loss) per share
       </font></td>
    <td VALIGN="top" width="363" align="right"><font FACE="Courier New" SIZE="2"><u>$(0.0112)</u></font></td>
    <td VALIGN="top" width="195" align="right"><font FACE="Courier New" SIZE="2"><u>$(0.0076)</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p align="center">See Notes to Condensed Consolidated Financial Statements</p>

<p align="center">6</p>

<hr>

<p align="center">ITRONICS INC. AND SUBSIDIARIES</p>

<p align="center">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</p>

<p align="center">FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999</p>

<p align="center">(UNAUDITED)</p>

<p> </p>

<p>                                          
                   
<u>Three Months Ended March 31,</u></p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="719" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2"><u>CASH FLOWS FROM (FOR)
    OPERATING ACTIVITIES</u></font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>2000 </u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Net income (loss)  </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">$(804,750)</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">$(436,492)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Adjustments to reconcile
    net income (loss) </font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  to cash used by
    operations</font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Depreciation and
    amortization </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">28,215</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">14,649</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Interest on convertible
    notes </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">40,421</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">-  </font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Option compensation </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">4,941</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">-  </font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Expenses paid with issuance
    of common stock</font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">217,010</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">53,441</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">(Increase) decrease:</font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Trade receivables </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">30,153</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">36,324</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Inventories</font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">(160,910)</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">(490)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Prepaids and other
    assets </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">(33,151)</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">(27,295)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Increase (decrease):</font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Accounts payable
      </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">(57,282)</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">(23,668)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Accrued expenses and
    contracts</font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">17,322</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">(36,539)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  Accrued interest </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>( 4,718)</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>( 6,980)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">   Net Cash Used
    by Operating Activities </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>(722,749)</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>(427,050)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2"><u>CASH FLOWS FROM (FOR)
    INVESTING ACTIVITIES</u></font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Acquisition of property and
    equipment</font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">  and intangibles </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">(311,452)</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">(417,448)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Acquisition of marketable
    securities </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>(26,817)</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>-
       </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">   Net Cash Used
    by Investing Activities </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>(338,269)</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>(417,448)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2"><u>CASH FLOWS FROM (FOR)
    FINANCING ACTIVITIES</u></font></td>
    <td VALIGN="top" width="120" align="right"> </td>
    <td VALIGN="top" width="105" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Proceeds from sale of
    common stock </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">462,883</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">1,138,070</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Proceeds from debt </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">2,883,000</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">40,000</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Payments on debt </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>(64,650)</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>(37,725)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">   Net Cash
    Provided by Financing Activities </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>3,281,233</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>1,140,345</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">   Net Increase
    (Decrease) in Cash </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2">2,220,215</font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2">295,847</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Cash, beginning of period </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>142,287</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>348,829</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="440"><font FACE="Courier New" SIZE="2">Cash, end of period </font></td>
    <td VALIGN="top" width="120" align="right"><font FACE="Courier New" SIZE="2"><u>$2,362,502</u></font></td>
    <td VALIGN="top" width="105" align="right"><font FACE="Courier New" SIZE="2"><u>$ 644,676</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<dir>
  <dir>
    <p align="center">See Notes to Condensed Consolidated Financial Statements</p>
    <p align="center">7</p>
    <hr>
  </dir>
</dir>

<p align="center">ITRONICS INC. AND SUBSIDIARIES</p>

<p align="center">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</p>

<p align="center">MARCH 31, 2000</p>

<p align="center">(UNAUDITED)</p>

<p> </p>

<p>1. The unaudited condensed consolidated financial statements printed herein have been
prepared in accordance with the instructions to Form 10-QSB and do not include all of the
information and disclosures required by generally accepted accounting principles.
Therefore, these financial statements should be read in conjunction with the consolidated
financial statements and related footnotes included in the Company's Form 1O-KSB for the
year ended December 31, 1999. These financial statements reflect all adjustments that are,
in the opinion of management, necessary to fairly state the results for the interim
periods reported.</p>

<p>2. The results of operations for the three months ended March 31, 2000 are not
necessarily indicative of the results to be expected for the full year.</p>

<p>3. The Private Placement of 9% Convertible Notes was completed during the quarter ended
March 31, 2000 and totaled $2,621,000. The notes are due in three years with dates ranging
from January 2003 through March 2003. Interest is compounded annually and payable at
maturity. The notes and accrued interest are convertible, at any time during the three
year period, into the Company’s restricted Common Stock, at prices ranging from $0.65
to $1.18 per share, depending on the date of purchase. The Company may call the notes
prior to the due date and, in that event, the note holder has 30 days to decide whether to
convert the note and accrued interest into stock. </p>

<p>New lease financing on plant equipment during the quarter amounted to approximately
$206,000, of which $174,000 was received in cash. In addition, the purchase of a new
service truck was financed with a promissory note amounting to approximately $30,400. </p>

<p>4. Following is financial information for each of the Company’s segments. No
changes have occurred in the basis of segmentation or in the basis of measurement of
segment profit or loss since December 31, 1999.</p>

<p>Reconciliation of segment revenues and operating income (loss) to the respective
consolidated amounts and to consolidated income (loss) before taxes:</p>

<p>                                          
                    
Three Months Ended March 31,</p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="715" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">Revenues:</font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2">$ 92,810</font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2">$ 61,170</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>188,828</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>70,313</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">   Consolidated
    Revenues </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>$ 281,638</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>$ 131,483</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">Operating Income (Loss):</font></td>
    <td VALIGN="top" width="95" align="right"> </td>
    <td VALIGN="top" width="94" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2">$ (688,507)</font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2">$ (323,730)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>( 93,039)</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>( 98,309)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">   Consolidated
    Operating Income (Loss) </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2">(781,546)</font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2">(422,039)</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">Other Income (Expense) </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>(23,204)</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>( 14,453)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="472"><font FACE="Courier New" SIZE="2">   Consolidated
    Net Income (Loss) before taxes  </font></td>
    <td VALIGN="top" width="95" align="right"><font FACE="Courier New" SIZE="2"><u>$ (804,750)</u></font></td>
    <td VALIGN="top" width="94" align="right"><font FACE="Courier New" SIZE="2"><u>$( 436,492)</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p align="center">8</p>

<hr>

<p>Identifiable assets by business segment for the major asset classifications and
reconciliation to total consolidated assets:</p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="715" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="458"> </td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">March 31,</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">Dec. 31,</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Current Assets:</font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>2000</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">$ 612,749</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">$ 261,740</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>298,944</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>233,822</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"> </td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>911,693</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>495,562</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Property and Equipment,
    net:</font></td>
    <td VALIGN="top" width="110" align="right"> </td>
    <td VALIGN="top" width="97" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer</font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">2,653,116</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">2,432,872</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>331,732</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>234,791</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"> </td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>2,984,848</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>2,667,663</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Other Assets, net:</font></td>
    <td VALIGN="top" width="110" align="right"> </td>
    <td VALIGN="top" width="97" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">55,806</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">45,434</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services  </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>2,629,042</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>2,926,206</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"> </td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>2,684,848</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>2,971,640</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Total Assets: </font></td>
    <td VALIGN="top" width="110" align="right"> </td>
    <td VALIGN="top" width="97" align="right"> </td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Photobyproduct
    Fertilizer </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">3,321,671</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">2,740,046</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">  Mining Technical
    Services </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>3,259,718</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>3,394,819</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Total Segment Assets </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">6,581,389</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">6,134,865</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Itronics Inc. assets </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">12,542,800</font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2">9,528,737</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Less: intercompany
    elimination </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>(12,722,225)</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>(11,986,260)</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="458"><font FACE="Courier New" SIZE="2">Consolidated Assets  </font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>$6,401,964</u></font></td>
    <td VALIGN="top" width="97" align="right"><font FACE="Courier New" SIZE="2"><u>$3,677,342</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p> </p>

<p>Item 2. Management's Discussion and Analysis or Plan of Operations</p>

<p>I. Results of Operations</p>

<p>The Company reported a net loss of $804,750, or $(0.0112) per share for the first
quarter of 2000, compared to a net loss of $436,492 or $(0.0076) per share, for the 1999
first quarter. Sales for the quarter were $281,600, compared to $131,500 for the prior
year quarter, an increase of 114%. Cost of sales increased $126,800, resulting in a net
improvement to gross profit of $23,300. The primary factor contributing to the increased
loss for the quarter was an increase in total operating costs of $382,800. The increased
operating costs are due primarily to increased corporate and product marketing. The
purpose of the substantial change in cost structure is to convert the photobyproduct
fertilizer segment from a small scale semi-works operation to full commercial scale
operation. Sales and marketing expenses increased by $252,800 over the 1999 first quarter.
Additionally, general and administration costs increased by $81,800 and plant moving and
start-up costs increased $34,700. General and administration costs increased primarily due
to additional management personnel. The plant moving and start-up costs are discussed more
fully below.</p>

<p align="center">9</p>

<hr>

<p>Interest expense increased $28,900 for the quarter and interest income increased
$20,200. These amounts reflect the private placement of convertible promissory notes and
the resultant interest expense, and the investment of those funds in interest bearing
accounts. During the quarter, approximately $41,000 in interest expense from the leased
equipment was capitalized as part of the construction costs of the manufacturing facility.
Such interest will be expensed in future quarters, however, the amount will decline as the
lease balances are paid down over a five year period. </p>

<p>To provide a more complete understanding of the factors contributing to the changes in
sales, operating expenses and the resultant operating loss, the discussion presented below
is separated into the Company's two operating segments.</p>

<p>PHOTOBYPRODUCT FERTILIZER</p>

<p>This segment, managed by Itronics Metallurgical, Inc., operates a photobyproduct
recycling plant, which includes related silver recovery. As part of the recycling process,
the Company manufactures and markets a line of liquid fertilizer products which are being
introduced into the markets in California and Nevada. Revenues are generated from
photobyproduct management services, silver sales, and fertilizer sales. </p>

<p>                                          
            
Three Months Ended March 31, </p>
</font><div align="center"><center>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="534" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="475"> </td>
    <td VALIGN="top" width="91" align="right"><font FACE="Courier New" SIZE="2"><u>2000 </u></font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2"><u>1999 </u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="475"><font FACE="Courier New" SIZE="2">Sales revenue </font></td>
    <td VALIGN="top" width="91" align="right"><font FACE="Courier New" SIZE="2">$ 92,810</font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">$ 61,170</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="475"><font FACE="Courier New" SIZE="2">Operating income (loss)
      </font></td>
    <td VALIGN="top" width="91" align="right"><font FACE="Courier New" SIZE="2">$(688,507)</font></td>
    <td VALIGN="top" width="110" align="right"><font FACE="Courier New" SIZE="2">$(323,730)</font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New" SIZE="2">

<p>Total segment sales for the first quarter of 2000 were approximately $92,800, compared
to $61,200 for the comparable quarter of 1999, an increase of 52%. Fertilizer sales for
the quarter were approximately $11,400, compared to $12,200 for the 1999 first quarter, a
decrease of 7%. Photobyproduct recycling revenue for the quarter increased by $18,900, a
68% increase, on an increased volume of 46%, compared to the first quarter of 1999. Silver
sales increased $13,600, or 64%, from the first quarter of 1999. The increase in silver
sales is due to the Hallmark Bar sales program which was begun in the fourth quarter of
1999, and to two film settlements completed in the quarter, compared to none in the first
quarter of 1999. Silver sales for the quarter do not include any sales of refined silver
from the Company’s refinery due to the Chapter 11 bankruptcy filing of Handy &
Harman Refining Group, Inc. (H&H). H&H halted all settlements of silver in
mid-March and filed for bankruptcy protection on March 28, 2000. The Company presently has
approximately 1,500 silver ounces on consignment with H&H., which is tied up in the
bankruptcy proceedings. H&H’s initial plan was to immediately come out of
bankruptcy protection and resume normal operations. However, their bankruptcy plan was
protested by a large unsecured creditor, so the bankruptcy court ordered restricted
movement of all precious metals in H&H’s possession. H&H is presently
negotiating with the creditor to reach agreement on a plan acceptable to all parties,
allowing it to resume operations. It is not known when, or if, H&H will be able to
resume operations. Company management is now evaluating alternative means of selling its
refined products. This subject is further discussed under "New Developments"
below.</p>

<p align="center">10</p>

<hr>

<p>Cost of sales for the first quarter of 2000 increased $33,900 from the 1999 first
quarter. The increase is due primarily to the increased operating costs associated with a
much larger facility, including utilities, taxes, and insurance. These factors resulted in
a gross loss of $72,800 for the first quarter of 2000, compared to a gross loss of $70,500
for the first quarter of 1999.</p>

<p>Segment operating expenses increased approximately $362,500 over the first quarter of
1999, due primarily to increases of $236,900 in sales and marketing, $34,700 in plant
start-up costs, and $79,500 in general and administration. The increase in sales and
marketing reflects expenditures for corporate marketing, expansion of the fertilizer sales
department, greater participation in industry trade shows, and the ongoing introduction of
Gold’n Gro fertilizer products to the Western Farm Services sales force in California
and introduction of a Gold’n Gro fertilizer sales program in Northern Nevada. The
plant moving and start-up costs relate to moving equipment from the pilot plant to the new
manufacturing facility, clean-up of the pilot plant, and management personnel costs
allocated to training the plant staff in the proper operation of the new processing and
manufacturing equipment. In addition, management determined that future management of
manufacturing and Company administration functions required the acquisition of Enterprise
Resource Planning (ERP) computer software and related hardware upgrades. A software
package that specializes in managing a "process flow" type of manufacturing was
acquired late in the first quarter. The software is now in the implementation stage. The
costs related to evaluating various software packages and training personnel in the
operation of an ERP system are being charged to plant start-up costs. Completion of the
clean-up of the pilot plant is expected in the second quarter of 2000. Implementation
costs of the ERP system are anticipated to be ongoing into the third quarter. </p>

<p>These factors resulted in a 2000 first quarter segment operating loss of $688,500,
compared to a loss of $323,700 for the first quarter of 1999, an increased operating loss
of $364,800.</p>

<p> </p>

<p>MINING TECHNICAL SERVICES</p>

<p>This segment, known as Whitney & Whitney, Inc., provides mining and materials
management, geology, engineering and economics consulting, and publishes specialized
mineral economics and materials financial reports. It employs technical specialists with
expertise in the areas of mining, geology, mining engineering, mineral economics,
materials processing and technology development. Technical services have been provided to
many of the leading U.S. and foreign mining companies, several public utilities with
mineral interests, to various state agencies, the U.S. and foreign governments, and the
United Nations and the World Bank.</p>

<p align="center">11</p>

<hr>

<dir>
  <dir>
    <dir>
      <dir>
        <dir>
          <dir>
            <p>                         
            Three Months Ended March 31,</p>
          </dir>
        </dir>
      </dir>
    </dir>
  </dir>
</dir>
</font><div align="center"><center>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="550" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="444"> </td>
    <td VALIGN="top" width="118" align="right"><u><font FACE="Courier New" SIZE="2">2000</font></u></td>
    <td VALIGN="top" width="101" align="right"><font FACE="Courier New" SIZE="2"><u>1999</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="444"><font FACE="Courier New" SIZE="2">Sales revenue </font></td>
    <td VALIGN="top" width="118" align="right"><font FACE="Courier New" SIZE="2">$188,828</font></td>
    <td VALIGN="top" width="101" align="right"><font FACE="Courier New" SIZE="2">$ 70,313</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="444"><font FACE="Courier New" SIZE="2">Operating income (loss) </font></td>
    <td VALIGN="top" width="118" align="right"><font FACE="Courier New" SIZE="2">$(93,039)</font></td>
    <td VALIGN="top" width="101" align="right"><font FACE="Courier New" SIZE="2">$(98,309)</font></td>
  </tr>
</TABLE>
</center></div><font FACE="Courier New" SIZE="2">

<p>Mining technical services revenue was approximately $188,800 for the quarter ended
March 31, 2000, compared to $70,300 for the comparable quarter of 1999, an increase
$118,500, or 169%. The sales increase includes an increase of $77,200 in pass-through
costs, which also accounts for the majority of the cost of sales increase of $92,900.
These factors resulted in a gross profit for the segment of $22,800, compared to a gross
loss of $2,800 for the prior year first quarter.</p>

<p>Segment operating expenses increased by $20,300 due primarily to an increase of $15,800
in sales and marketing costs. The increase in sales and marketing expense reflects both
the allocable portion of increased corporate marketing and increased efforts in marketing
technical services.</p>

<p>The combination of these factors resulted in a 2000 first quarter segment operating
loss of $93,000, compared to an operating loss of $98,300 for the first quarter of 1999. </p>

<p>SUMMARY</p>

<p>On a consolidated basis, the various changes in revenues and operating expenses
resulted in a first quarter 2000 operating loss of $781,500, compared to an operating loss
of $422,000 for the first quarter of 1999, an increased loss of $359,500. </p>

<p> </p>

<p>II. Changes in Financial Condition; Capitalization</p>

<p>Cash amounted to $2,362,502 as of March 31, 2000, compared to $644,676 as of March 31,
1999. Net cash used for operating activities was approximately $722,700 for the first
three months of 2000. The cash used for operating activities during the period was
financed primarily by the private placement of $2.6 million in proceeds from 9%
convertible promissory notes. A total of $310,000 was invested in property and equipment
during the quarter, primarily for completion of the manufacturing facility and for
computer hardware and software.</p>

<p>Total assets increased during the three months ended March 31, 2000 by approximately
$2,725,000 to $6,402,000. Current assets increased approximately $2,343,000 due to
increases in cash of $2,220,000, inventory of $160,900, and prepaid expenses of $116,600,
which were partially offset by decreases in trade accounts receivable of $30,200 and
equipment financing receivable of $130,900. The increase in inventory is due to a build-up
of silver products in anticipation of future sales and to the lack of sales of refined
products related to the H&H problem discussed above. The increase in prepaid expenses
is due primarily to consulting expenses that are paid quarterly in advance. Much of these
expenses are stock based and consequently, the value of the expenses has increased
substantially, in proportion to the rise of the Company’s stock price during the
quarter. </p>

<p align="center">12</p>

<hr>

<p>Current liabilities decreased by approximately $15,100 and total liabilities increased
by $2,743,000. The increase to total liabilities is related primarily to the private
placement of $2.6 million of 9% convertible notes as discussed above and lease financing
of $206,000 in equipment, which was partially offset by a reduction of $57,300 in accounts
payable and debt payments of $64,700.</p>

<p>During the quarter, a total of $462,900 was received from the exercise of warrants and
options from the 1999 and previous Private Placements.</p>

<p>III. Working Capital/Liquidity</p>

<p>During the three months ended March 31, 2000, working capital improved by approximately
$2,358,000 to $2,303,000. Management has continued the Company's ongoing program of
improving working capital and liquidity through exercise of warrants and payment of
consulting and other labor services with common shares. In addition, a private placement
of $2.6 million of 9% convertible promissory notes was completed during the quarter.
During the three months ended March 31, 2000, a total of $462,900 was received from the
exercise of warrants and options and approximately $217,000 in various expenses were paid
with common shares.</p>

<p>The Company is presently reviewing available alternatives for raising from $5 to $15
million in equity funds over the next two years. These funds will be used to meet working
capital requirements and for planned acquisitions. </p>

<p>IV. New Developments</p>

<p>Construction of the manufacturing facility was substantially completed in February
2000, with receipt of the Certificate of Occupancy at that time. The final installation of
the equipment from the pilot plant occurred in March. Throughout the quarter, the facility
was put through a "shake-out" period in which all the equipment was tested and
plant personnel were trained in the proper operation of the equipment. Processing of
photobyproducts and manufacturing of fertilizer were completed in progressively larger
batches. Minimal problems were encountered and the plant was fully operational by the end
of the quarter.</p>
</font><font SIZE="2">

<p></font><font FACE="Courier New" SIZE="2">Now that the plant is fully operational,
management’s focus is being shifted to growing sales. The full sales effort was not
initiated until it was clear that the plant would be able to operate as planned. Now the
near term goal is to grow sales as rapidly as possible to increase plant capacity
utilization and to achieve operational break-even. The longer term goal is to continue
growing sales and to support that sales growth with future plant expansions. During April
the Company launched an expanded advertising program for the Hallmark "Silver Nevada
Miner" bars. The Gold’n Gro Valu-Paks for home lawn fertilization are now being
offered on the Company’s web page. A "Home-Pak" containing the Gold’n
Gro 20-1-7 lawn fertilizer and the Gold’n Gro 6-3-9 plant food is being planned for
introduction on the web page in June. An advertising program for introducing the
Gold’n Gro product line to golf course superintendents in California and Nevada was
launched in mid-May. </p>
</font>

<p align="center"><font FACE="Courier New" SIZE="2">13</font></p>

<hr>
<font SIZE="2">

<p></font><font FACE="Courier New" SIZE="2">Gold’n Gro multi-nutrient liquid
fertilizer sales development efforts are being focused in California and Nevada, and the
Company is planning to initiate sales development in Oregon beginning in the third
quarter. Early in the second quarter, two fertilizer injection systems were successfully
installed, including one to a northern Nevada turf farm, which is a new customer for the
Company. Fertilizer injection system sales are now an integral part of the plan to
increase sales volumes to existing and new customers. Fertilizer sales are beginning to
increase and significant sales growth is expected in the third and fourth quarters of this
year.</p>

<p>The University of California at Davis has agreed to continue an expanded nutrition
evaluation program for diseased wine grapes. Protocols and products that are to be used
have been provided by the Company. The results of the 1999 test applications were positive
and the information has been used to revise the Gold’n Gro product application
parameters for wine grapes. This application program is now being evaluated in the central
coast area and is being introduced to the wine grape growers in that area of California.</p>

<p>Research to develop an application for citrus has been underway for several months and
a set of foliar application products and parameters was developed. These product
applications were tested on lemon and valencia orange trees in April with positive
results. An application demonstration program is now underway in southern California and
is expected to be on-going for one or more years. A second application demonstration
program is being developed with a large southern California citrus grower and the
University of California at Riverside. This program will be a multi-year program and is
being planned to launch in the fourth quarter of this year. Research conducted by the
University of California at Riverside has shown that both the quantity and quality of
oranges can be increased with the use of foliar applied lo-biuret urea at appropriate
times during the year. This information has been used to develop the Gold’n Gro
application program for citrus.</p>

<p>Planning is underway to expand on site tank storage for finished liquid fertilizer
products and a tank truck loading and unloading facility. The Company is also developing a
consumer sales product plan and is planning to install a small packaging line to package
the consumer products. This is being planned for completion in the first quarter of next
year.</p>

<p>The Company had originally planned to expand the refining operations once the plant was
operational. The bankruptcy of H & H has caused the Company to implement this
expansion sooner than was originally planned. The changes will allow the production of
high purity silver bullion and will reduce the cost of silver refining significantly. The
silver bullion bars will be sold to one or more merchant bullion dealers in the U.S.</p>

<p>During the quarter the Company is also initiating its acquisition program by entering
into discussions with companies that it has identified which will, if acquired, accelerate
the company’s internal product sales growth. Future acquisitions are planned to
expand fertilizer sales and to expand photochemical handling services. The types of
companies being considered are either fertilizer marketing companies or photochemical
service companies. The acquisition program is being focused to speed up the company’s
geographic expansion and the rate of market penetration. Presently the Company does not
have funding specifically allocated to make acquisitions which is the reason for the
previously stated goal of raising an additional $5 million to $15 million over the next 2
years. The Company is also seeking funding that will be used to expand the new Stead
manufacturing plant. The first expansion which is being planned, is expected to require
between $1 million and $1.5 million to complete. </p>

<p align="center">14</p>

<hr>

<p>VI. Forward-Looking Statements</p>

<p>The statements in this Form 10-QSB that are not historical facts or statements of
current status are forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risks and uncertainties. Actual results may
differ materially.</p>

<p> </p>

<p>PART II- OTHER INFORMATION</p>

<p><u>Item 1. Legal Proceedings</u></p>

<p> </p>

<p>1. The former president of Seahawk, Inc. (Seahawk) filed suit on June 30, 1995 in the
Superior Court of California, County of Orange, against the Company, W&W, and several
W&W employees, alleging libel and slander resulting from consulting work W&W had
done for Seahawk. The suit sought unspecified damages to be proven at trial, plus punitive
or exemplary damages. W&W's liability insurance carrier defended against the suit, and
in March 1997, the suit was dismissed. The individual has filed an appeal of the
dismissal. In February 1997, this individual served a second suit that includes the
Company, W&W, and a key employee as codefendants, along with several unrelated
parties. The suit alleges breach of contract and other causes of action and seeks in
excess of $5 million plus punitive damages. The Company's liability insurance carrier has
agreed to assume the defense of this action with a reservation of rights, including the
right to disclaim insurance coverage. Management believes the allegations are without
merit and is vigorously defending against the suit.</p>

<p>In May 1998 agreement was reached with the plaintiff that if the appeal of the first
suit fails, the second suit will be dropped. Due to a civil court backlog, the appeal
hearing has been delayed for at least two years. As of the date of this report, a hearing
date has not been set. </p>

<p> </p>

<p><u>Item 2. Changes in Securities and Use of Proceeds</u></p>

<p>(c) Recent Sales of Unregistered Securities:</p>

<p>Following is a summary of sales of unregistered securities for the three months ended
March 31, 2000. All securities were issued as restricted common shares which are subject
to Rule 144 of the Securities and Exchange Commission. Generally, Rule 144 requires
shareholders to hold the shares for a minimum of one year before sale. In addition,
officers, directors and more than 10% shareholders are further restricted in their ability
to sell such shares. There have been no underwriters of these securities and no
commissions or underwriting discounts have been paid.</p>

<p align="center">15</p>

<hr>

<p>                                          
                    
Shares       Value</p>

<p>                                          
                    
<u>Issued </u>    <u>Received</u></p>
</font>

<table BORDER="1" CELLSPACING="1" CELLPADDING="7" WIDTH="671" bordercolor="#FFFFFF"
bordercolorlight="#FFFFFF" bordercolordark="#FFFFFF">
  <tr>
    <td VALIGN="TOP" width="493"><font FACE="Courier New" SIZE="2">Exercise of warrants for
    cash </font></td>
    <td VALIGN="top" width="84" align="right"><font FACE="Courier New" SIZE="2">1,729,812</font></td>
    <td VALIGN="top" width="77" align="right"><font FACE="Courier New" SIZE="2">$ 425,648</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="493"><font FACE="Courier New" SIZE="2">Conversion of debt and
    accrued interest </font></td>
    <td VALIGN="top" width="84" align="right"><font FACE="Courier New" SIZE="2">130,580</font></td>
    <td VALIGN="top" width="77" align="right"><font FACE="Courier New" SIZE="2">13,058</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="493"><font FACE="Courier New" SIZE="2">Labor services of
    management, directors and consultants </font></td>
    <td VALIGN="top" width="84" align="right"><font FACE="Courier New" SIZE="2">51,646</font></td>
    <td VALIGN="top" width="77" align="right"><font FACE="Courier New" SIZE="2">25,540</font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="493"><font FACE="Courier New" SIZE="2">Other</font></td>
    <td VALIGN="top" width="84" align="right"><font FACE="Courier New" SIZE="2"><u>9,695</u></font></td>
    <td VALIGN="top" width="77" align="right"><font FACE="Courier New" SIZE="2"><u>5,637</u></font></td>
  </tr>
  <tr>
    <td VALIGN="TOP" width="493"> </td>
    <td VALIGN="top" width="84" align="right"><font FACE="Courier New" SIZE="2"><u>1,921,733</u></font></td>
    <td VALIGN="top" width="77" align="right"><font FACE="Courier New" SIZE="2"><u>$ 469,883</u></font></td>
  </tr>
</TABLE>
<font FACE="Courier New" SIZE="2">

<p> </p>

<p>The above transactions qualified for exemption from registration under Sections 3(b) or
4(2) of the Securities Act of 1933. Private placements for cash were non-public
transactions. The Company believes that all such investors are either accredited or,
either alone or with their purchaser representative, have such knowledge and experience in
financial and business matters that they are capable of evaluating the merits and risks of
the prospective investment.</p>

<p> </p>

<p><u>Item 6. Exhibits and Reports on Form 8-K</u></p>

<p>(b) None</p>

<p align="center">16</p>

<hr>

<p>SIGNATURES</p>

<p>Pursuant to the requirements 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.</p>

<p> </p>

<p>                                          
          
ITRONICS INC.</p>

<p>DATED: <u>May 13, 2000</u>
                                 
By: <u>JOHN W. WHITNEY</u></p>

<p>                                          
              
John W. Whitney </p>

<p>                                          
              
President, Treasurer and Director</p>

<p>                                          
              
(Principal Executive Officer)</p>

<p>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 Company and in the capacities
and on the dates indicated</p>

<p> </p>

<p>DATED: <u>May 13, 2000</u>
                                  
By: <u>JOHN W. WHITNEY</u></p>

<p>                                          
               
John W. Whitney</p>

<p>                                          
               
President, Treasurer and Director </p>

<p>                                          
               
(Principal Executive Officer)</p>

<p> </p>

<p>DATED: <u>May 13, 2000</u>
                                  
By: <u>MICHAEL C. HORSLEY</u></p>

<p>                                          
               
Michael C. Horsley</p>

<p>                                          
               
Controller</p>

<p>                                          
               
(Principal Accounting Officer)</p>

<p align="center">17</p>
</font>

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