ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

GENERAL

This report contains both historical and prospective statements concerning the Company and its operations. Prospective statements (known as "forward-looking statements") may or may not prove true with the passage of time because of future risks and uncertainties. The Company cannot predict what factors might cause actual results to differ materially from those indicated by prospective statements.

RESULTS OF OPERATIONS

FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2009 COMPARED TO THE THREE MONTH PERIOD ENDED MARCH 31, 2008.

The Company's operations resulted in a net loss of $239,044 for the three-month period ended March 31, 2009, compared with a net loss of $141,193 for the same period ended March 31, 2008. The increased loss for the first quarter of 2009 compared to the similar period of 2008 is primarily due to decreased revenues in the Antimony division.

ANTIMONY DIVISION:

Total revenues from antimony product sales for the first quarter of 2009 were $474,736 compared with $1,113,742 for the comparable quarter of 2008, a decrease of $639,006. During the three-month period ended March 31, 2009, 70% of the Company's revenues from antimony product sales were from sales to two customers. Sales of antimony products during the first quarter of 2009 consisted of 219,412 pounds at an average sale price of $2.16 per pound. During the first quarter of 2008, sales of antimony products consisted of 442,010 pounds at an average sale price of $2.52 per pound. The significant decrease in both dollars and pounds of antimony sold is primarily due to an inadequate supply of raw materials available for production.

The cost of antimony production was $357,985, or $1.63 per pound sold during the first quarter of 2009 compared to $824,728 or $1.87 per pound sold during the first quarter of 2008. The decrease in price per pound is primarily due to a decrease in the costs of raw materials and fuel.

Antimony depreciation for the first quarter of 2009 was $6,441 compared to $3,486 for the first quarter of 2008.

Antimony freight and delivery expense for the first quarter of 2009 was $28,064 compared to $65,785 during the first quarter of 2008. The decrease in freight and delivery expense is primarily due to a decrease in the cost of fuel.

General and administrative expenses in the antimony division were $18,755 during the first quarter of 2009 compared to $21,532 during the same quarter in 2008. The decrease is due to a decrease in finance charges and insurance expense which offset an increase in property tax expense.

Antimony sales expenses were $11,250 for the first quarter of 2009 and the same for the first quarter in 2008.

PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED

ZEOLITE DIVISION:

Total revenue from sales of zeolite products during the first quarter of 2009 were $320,717 at an average sales price of $125.67 per ton, compared with the same quarter sales in 2008 of $313,652 at an average sales price of $124.12 per ton.

The cost of zeolite production was $198,098, or $77.62 per ton sold, for the first quarter of 2009 compared to $266,323, or $105.39 per ton sold, during the first quarter of 2008. The decrease was due to decreased labor and maintenance expense during the first quarter of 2009 compared to the first quarter of 2008.

Zeolite depreciation for the first quarter of 2009 was $49,597 compared to $46,199 for the first quarter of 2008.

Zeolite freight and delivery for the first quarter of 2009 was $24,939 compared to $19,223 for the first quarter of 2008. The increase is due to a decrease in freight income from sample sales which offset the freight and delivery expense during the first quarter of 2009.

During the first quarter of 2009, the Company incurred costs totaling $51,907 associated with general and administrative expenses at Bear River Zeolite Company, compared to $37,424 of such expenses in the comparable quarter of 2008. The increase was primarily due to an increase in fine and penalty expense which was partially offset by reduced bank charges and travel expenses.

Zeolite royalties expenses were $44,081 during the first quarter of 2009 compared to $40,122 during the first quarter of 2008. The increase is due to an increase in tons of zeolite sold during the first quarter of 2009.

Zeolite sales expenses were $19,224 during the first quarter of 2009 compared to $20,300 during the first quarter of 2008. The decrease is caused by lower costs related to the direct selling expenses.

ADMINISTRATIVE OPERATIONS

General and administrative expenses for the corporation were $128,461 during the first quarter of 2009 compared to $127,678 for the same quarter in 2008.

Exploration expense has decreased by $8,818 from the quarter ended March 31, 2008. The decrease is primarily due to decreases in Mexico antimony exploration.

The Company did not sell mining claims during the first quarter of 2009 compared to a gain on sale of $41,268 in the first quarter of 2008 for such sales.

Interest expense of $5,094 was incurred during the first quarter of 2009 compared to $7,846 during the first quarter of 2008. The decrease is due to the conversion of a significant loan balance to common stock between periods.

Accounts receivable factoring expense was $15,663 during the first quarter of 2009 compared to $34,203 during the first quarter of 2008. The decrease in factoring expense was primarily due to a large decrease in antimony sales during the first quarter of 2009.

PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED

FINANCIAL CONDITION AND LIQUIDITY

At March 31, 2009, Company assets totaled $3,278,306 and total stockholders' equity was $2,148,855. Total stockholders' equity increased $365,357 from December 31, 2008, primarily because of sales of common stock which offset net losses. At March 31, 2009, the Company's total current liabilities exceeded its total current assets by $729,886. To continue as a going concern, the Company must generate profits from its antimony and zeolite sales and acquire additional capital resources through the sale of its securities or from short and long-term debt financing. Without financing and profitable operations, the Company may not be able to meet its obligations, fund operations and continue in existence. While management is optimistic that the Company will be able to sustain profitable operations and meet its financial obligations, there can be no assurance of such results. The Company's management is confident, however, given recent increases in pricing, the expectation of acquiring new customers, and continued reduction in capital spending, that it will be able to generate cash from operations and financing sources that will enable it to meet its obligations over the next twelve months.

Cash used by operating activities during the first three months of 2009 was $197,334, and resulted primarily from operating losses.

Cash used by investing activities during the first three months of 2009 was $47,429 and primarily related to the purchase of property, plant and equipment in Mexico for anticipated operations.

Net cash provided by financing activities was $256,861 during the first three months of 2009 and was primarily generated from proceeds from the sale of common stock and exercise of warrants.