ANTIMONY

ANTIMONY is a metal that is used primarily in plastics as
a flame retardant. It is also used in bearings, ordinance,
porcelain, glass, batteries, textile goods, elastomers, and
numerous other applications. The domestic market for
antimony oxide is approximately 70,000,000 pounds per
year (valued at more than $200,000,000), and is growing
at an annual rate of 6.8% per year. Antimony metal,
sodium antimonate, and various other products account
for another 20,000,000 pounds per year.

The Chinese supply 89% of the world production of
antimony ore. China's production is declining, and the
country is consuming more of their own production. As a
result, metal prices have risen to a 20-year high of almost
$3.00 per pound

USAC is the only significant domestic producer of antimony
products. Until recently, there were five other domestic
producers of antimony products, and all of them were
dependent on Chinese sourced material. USAC is not
dependent on Chinese feed, but it is currently limited to
obtaining raw materials sufficient to produce approximately
160,000 pounds of antimony oxide per month.

USAC has started a Mexican subsidiary called
Antimonio de Mexico, S. A. de C. V. (ADM) to explore and
develop antimony in Mexico. It has been given approval to
start production by the Mexican authorities. Every effort is
being made to have the plant operational by fourth quarter
2006. Initially, feed will be purchased from various mines
in Mexico and Central America. Both antimony metal and
oxide will be produced. By the end of this year,
concentrates are expected from the ADM mine in the
State of Queretaro, Mexico. Silver will be a major
byproduct and gold will be a minor byproduct.

Antimony Oxide production
Thompson Falls, Montana

Antimony Ore
Queretaro, Mexico