UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~Washington,~~WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
☒	~~QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

	~~For the quarterly period ended September 30, 2021~~

	OR

☐	~~TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

	~~For the transition period from to~~

~~Commission File No.~~ ☒ Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

☐Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the transition period ________ to ________

COMMISSION FILE NUMBER001-08675

UNITED STATES ANTIMONY CORPORATION

(Exact name of ~~Registrant~~small business issuer as specified in its charter)

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

P.O. Box 643 Thompson Falls, MT			59873
(Address of principal executive office)			(Postal Code)

~~P.O. Box 643, Thompson Falls, Montana~~(406) 827-3523

(~~Address of principal executive offices)~~

~~Registrant’s~~Issuer's telephone ~~number:~~ ~~(406 )827-3523~~

~~Securities registered pursuant to Section 12(g) of the Act:~~number)

Title of Each Class		Trading ~~Symbol(s)~~Symbol				Name of Each Exchange on Which Registered
Common Stock, $0.01 par value		UAMY				NYSE American

~~Check~~Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the ~~past~~preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by ~~check mark~~checkmark whether the registrant has submitted electronically and posted on its corporate ~~Web site,~~Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ~~(§232.405 of this chapter)~~ during the preceding 12 months (or for such shorter period that the registrant was required to submit and post ~~such files)~~filed). Yes ☒ No ☐

Indicate by ~~check mark~~checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “Accelerated filer ~~a smaller reporting company or an emerging growth company. See the definitions of “large~~and large accelerated ~~filer,” “accelerated~~ filer”~~, “smaller reporting company” and “emerging growth company”~~ in Rule 12b-2 of the Exchange ~~Act:~~Act (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☐
~~Non-Accelerated~~Non-accelerated Filer	☒	~~Small~~Smaller Reporting Company	☒
		Emerging Growth Company	☐

~~Indicated~~If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

~~APPLICABLE ONLY TO CORPORATE ISSUERS:~~

~~At November 15, 2021, the registrant had outstanding 106,117,844~~As of May 16, 2022, there were 106,240,361 shares of registrant’s common stock, $0.01 par value, ~~$0.01 common stock.~~issued and outstanding.

~~UNITED STATES ANTIMONY CORPORATION~~

~~QUARTERLY REPORT ON FORM 10-Q~~

~~FOR THE PERIOD~~

~~ENDED SEPTEMBER 30, 2021~~Contents

~~TABLE OF CONTENTS~~

PART I - FINANCIAL INFORMATION
			~~Page~~
ITEM 1.	FINANCIAL STATEMENTS		3

~~PART I – FINANCIAL INFORMATION~~ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.			15

~~Item 1: Financial Statements (unaudited)~~ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		~~1-18~~	21

~~Item 2: Management’s Discussion and Analysis of Results of Operations and Financial Condition~~ITEM 4.	CONTROLS AND PROCEDURES		~~19-23~~

~~Item 3: Quantitative and Qualitative Disclosure about Market Risk~~		24

~~Item 4: Controls and Procedures~~		24	22

PART II –- OTHER INFORMATION

~~Item 1: Legal Proceedings~~ITEM 1.	LEGAL PROCEEDINGS.		26	23

~~Item 2~~: ~~Unregistered Sales of Equity Securities and Use of Proceeds~~ITEM 1A.	RISK FACTORS.		26	23

~~Item 3: Defaults upon Senior Securities~~ITEM 2.	RECENT SALES OF UNREGISTERED SECURITIES.		26	23

~~Item 4: Mine Safety Disclosures~~ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.		26	23

~~Item 5: Other Information~~ITEM 4.	MINE SAFETY DISCOSURES.		26	23

~~Item 6: Exhibits and Reports on Form 8-K~~ITEM 5.	OTHER INFORMATION.		26	23

~~SIGNATURE~~ITEM 6.	EXHIBITS.		27

~~CERTIFICATIONS~~			24

~~[The balance of this page has been intentionally left blank.]~~

Page 2 of 25

Table of Contents

PART ~~I-FINANCIAL~~I - FINANCIAL INFORMATION

~~Item~~ITEM 1. ~~Financial Statements~~FINANCIAL STATEMENTS

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
September 30, 2021 and December 31, 2020
ASSETS

September 30,
2021

December 31,
2020

Current assets:

Cash and cash equivalents

$ 21,563,500

$ 665,102

Certificates of deposit

44,028

254,212

Accounts receivable

722,727

238,634

Inventories (Note 5)

733,956

650,213

Total current assets

23,064,211

1,808,161

Properties, plants and equipment, net (Note 13)

11,176,469

11,225,594

Restricted cash for reclamation bonds

57,275

57,275

IVA receivable and other assets

239,084

208,472

Total assets

$ 34,537,039

$ 13,299,502

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:

Checks issued and payable

$ 0

$ 86,685

Accounts payable

1,252,846

1,876,874

Accrued liabilities (Note 6)

571,209

635,626

Payables to related party (Note 9)

-

227,432

Notes payable to bank (Note 7)

0

100,000

Export tax assessment payable (Note 11)

0

1,120,730

Hillgrove advances payable (Note 12)

0

378,074

Long-term debt, current portion (Note 8)

0

52,122

Total current liabilities

1,824,055

4,477,543

Long-term debt, net of current portion (Note 8)

0

34,304

Hillgrove advances payable (Note 12)

0

756,147

CARES Act note payable (Note 14)

0

443,400

Stock payable to directors for services (Note 10)

84,375

110,000

Asset retirement obligations and accrued reclamation costs

296,916

291,719

Total liabilities

2,205,346

6,113,113

Commitments and contingencies (Note 6 and 11)

Stockholders' equity:

Preferred stock $0.01 par value, 10,000,000 shares authorized:

Series A: -0- shares issued and outstanding

0

0

Series B: 750,000 shares issued and outstanding (liquidation preference $945,000 and $937,500 respectively)

7,500

7,500

Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years)

1,779

1,779

Series D: 1,751,005 shares issued and outstanding (liquidation preference $5,084,770 and $5,043,622 respectively)

17,509

17,509

Common stock, $0.01 par value, 150,000,000 shares authorized; 106,117,844 and 75,949,757 shares issued and outstanding, respectively

1,061,177

759,496

Additional paid-in capital

63,992,101

39,050,899

Accumulated deficit

(32,748,373 )

(32,650,794 )
Total stockholders' equity

32,331,693

7,186,389

Total liabilities and stockholders' equity

$ 34,537,039

$ 13,299,502

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	March 31, 2022			December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	21,334,353		$	21,363,048
Certificates of deposit		259,210			259,210
Accounts receivable		1,475,853			891,314
Inventories (NOTE 5)		1,026,980			1,055,420
Total current assets		24,096,396			23,568,992
Properties, plants and equipment, net		11,102,124			11,133,733
Restricted cash for reclamation bonds		57,281			57,281
IVA receivable and other assets		283,744			242,721
Total assets	$	35,539,545		$	35,002,727
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	1,107,574		$	1,385,752
Accrued liabilities		624,817			621,873
Long-term debt, current portion		12,287			13,230
Total current liabilities		1,744,678			2,020,855

Long-term debt, net of current portion		198,806			201,920
Stock payable to directors for services		140,625			112,500
Asset retirement obligations and accrued reclamation costs (NOTE 7)		300,381			298,649
Total liabilities		2,384,490			2,633,924
COMMITMENTS AND CONTINGENCIES (NOTE 9)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 10,000,000 shares authorized:
Series A: 0 shares issued and outstanding		0			0
Series B: 750,000 shares issued and outstanding (liquidation preference $954,375 and $952,500, respectively)		7,500			7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both periods)		1,779			1,779
Series D: 1,692,672 shares issued and outstanding (liquidation preference $4,979,632)		16,926			16,926
Common stock, $.001 par value; 300,000,000 shares authorized; 106,240,361 shares issued and outstanding		1,062,402			1,062,402
Additional paid-in capital		63,991,459			63,991,459
Accumulated deficit		(31,925,011	)		(32,711,263	)
Total stockholders’ equity	��	33,155,055			32,368,803
Total liabilities and stockholders’ equity	$	35,539,545		$	35,002,727

The accompanying notes are an integral part of ~~the~~these condensed consolidated unaudited financial statements.

Page 3of 25

Table of Contents

United States Antimony Corporation and Subsidiaries

Condensed Consolidated Statements of Operations - Unaudited

For the three months ended

For the nine months ended

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

REVENUES

$ 2,051,713

$ 1,007,231

$ 5,580,562

$ 4,335,413

COST OF REVENUES

1,950,504

1,442,322

5,070,798

4,685,388

GROSS PROFIT (LOSS)

101,209

(435,091 )

509,764

(349,975 )

OPERATING EXPENSES:

General and administrative

112,744

110,051

572,905

429,973

Salaries and benefits

72,200

82,308

226,137

288,455

Site care and maintenance expenses

0

0

184,037

24,250

Professional fees

28,227

43,557

212,563

161,167

Loss on abandonment of mineral properties

0

318,502

0

318,502

TOTAL OPERATING EXPENSES

213,171

554,418

1,195,642

1,222,347

LOSS FROM OPERATIONS

(111,962 )

(989,509 )

(685,878 )

(1,572,322 )

OTHER INCOME (EXPENSE):

Interest income

13,320

19

35,202

854

Interest expense

(590 )

(3,750 )

(3,725 )

(14,937 )
Gain on forgiveness of CARES Act debt (Note 14)

0

0

443,400

0

Grant income

0

0

0

10,000

Gain on settlement of Hillgrove advance (Note 12)

0

0

113,422

0

TOTAL OTHER INCOME (EXPENSE)

12,730

(3,731 )

588,299

(4,083 )

NET LOSS

(99,232 )

(993,240 )

(97,579 )

(1,576,405 )
Preferred dividends

(12,162 )

(12,162 )

(36,487 )

(36,487 )

Net loss available to common stockholders

$ (111,394 )

$ (1,005,402 )

$ (134,066 )

$ (1,612,892 )

Net loss per share of

common stock:

Basic and diluted

Nil

$ (0.01 )

Nil

$ (0.02 )

Weighted average shares outstanding:

Basic and diluted

106,117,844

73,240,218

101,642,048

71,033,733

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	For the three months ended
	March 31, 2022			March 31, 2021
REVENUE	$	3,580,306		$	1,253,287
COST OF REVENUE		2,440,918			1,041,130
GROSS PROFIT		1,139,388			212,157
OPERATING EXPENSES:
General and administrative		160,681			170,050
Salaries and benefits		73,135			76,659
Other operating expenses		3,915			184,037
Professional fees		122,077			123,137
TOTAL OPERATING EXPENSES		359,808			553,883
INCOME (LOSS) FROM OPERATIONS		779,580			(341,726	)
OTHER INCOME (EXPENSE)
Interest expense		(2,982	)		(2,255	)
Interest income		9,654			8,493
TOTAL OTHER INCOME (EXPENSE)		6,672			6,238
NET INCOME (LOSS)		786,252			(335,488	)
Preferred dividends		(11,819	)		(12,162	)
Net income (loss) available to common stockholders	$	774,432		$	(347,650	)
Net income (loss) per share of common stock:
Basic and diluted	$	0.01		Nil
Weighted average shares outstanding:
Basic		106,240,361			92,711,336
Diluted		106,389,761			92,711,336

The accompanying notes are an integral part of ~~the~~these condensed consolidated unaudited financial statements.

Page 4

~~Table~~ of ~~Contents~~

United States Antimony Corporation and Subsidiaries

Condensed Consolidated Statement of Changes in Stockholders' Equity

For the periods ended September 30, 2021 and September 30, 2020

(Unaudited)

Total Preferred Stock

Common Stock

Additional

Total

Paid

Accumulated

Stockholders'

Three months ended September 30,2021

Shares

Amount

Shares

Amount

In Capital

Deficit

Equity

Balances, July 1, 2021

2,678,909

$ 26,788

106,005,234

$ 1,060,051

$ 63,883,227

$ (32,649,141 )

$ 32,320,925

Issuance of common stock to Directors (Note 10)

-

0

112,610

1,126

108,874

0

110,000

Net loss

-

0

-

0

0

(99,232 )

(99,232 )
Balances, September 30, 2021

2,678,909

$ 26,788

106,117,844

$ 1,061,177

$ 63,992,101

$ (32,748,373 )

$ 32,331,693

Total Preferred Stock

Common Stock

Additional

Total

Paid

Accumulated

Stockholders'

Three months ended September 30,2020

Shares

Amount

Shares

Amount

In Capital

Deficit

Equity

Balances, July 1, 2020

2,678,909

$ 26,788

70,206,899

$ 702,068

$ 37,295,259

$ (29,947,155 )

$ 8,076,960

Issuance of common stock and warrants for cash

-

0

5,742,858

57,428

1,952,572

0

2,010,000

Common stock issuance costs

-

0

-

0

(196,932 )

0

(196,932 )
Net loss

-

0

-

0

0

(993,240 )

(993,240 )
Balances, September 30, 2020

2,678,909

$ 26,788

75,949,757

$ 759,496

$ 39,050,899

$ (30,940,395 )

$ 8,896,788

Total Preferred Stock

Common Stock

Additional

Total

Paid

Accumulated

Stockholders'

Nine months ended September 30,2021

Shares

Amount

Shares

Amount

In Capital

Deficit

Equity

Balances, January 1, 2021

2,678,909

$ 26,788

75,949,757

$ 759,496

$ 39,050,899

$ (32,650,794 )

$ 7,186,389

Issuance of common stock for cash (Note 10)

-

0

26,290,000

262,900

24,734,100

0

24,997,000

Issuance of common stock to Directors (Note 10)

-

0

112,610

1,126

108,874

0

110,000

Common stock issuance costs (Note 10)

-

0

-

0

(1,654,820 )

0

(1,654,820 )
Common stock issued upon exercise of warrants (Note 10)

-

0

3,765,477

37,655

1,753,048

0

1,790,703

Net loss

-

0

-

0

0

(97,579 )

(97,579 )
Balances, September 30, 2021

2,678,909

$ 26,788

106,117,844

$ 1,061,177

$ 63,992,101

$ (32,748,373 )

$ 32,331,693

Total Preferred Stock

Common Stock

Additional

Total

Paid

Accumulated

Stockholders'

Nine months ended September 30,2020

Shares

Amount

Shares

Amount

In Capital

Deficit

Equity

Balances, January 1, 2020

2,678,909

$ 26,788

69,661,436

$ 696,614

$ 37,107,730

$ (29,363,990 )

$ 8,467,142

Issuance of common stock upon exercise of warrants

-

0

250,000

2,500

60,000

0

62,500

Issuance of common stock to Directors

-

0

295,463

2,954

127,529

0

130,483

Issuance of common stock and warrants for cash

-

0

5,742,858

57,428

1,952,572

0

2,010,000

Common stock issuance costs

-

0

-

0

(196,932 )

0

(196,932 )
Net loss

-

0

-

0

-

(1,576,405 )

(1,576,405 )
Balances, September 30, 2020

2,678,909

$ 26,788

75,949,757

$ 759,496

$ 39,050,899

$ (30,940,395 )

$ 8,896,788

~~The accompanying notes are an integral part of the condensed consolidated financial statements.~~

5 25

Table of Contents

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows - Unaudited

For the nine months ended

Cash Flows From Operating Activities:

September 30,
2021

September 30,
2020

Net loss

$ (97,579 )

$ (1,576,405 )
Adjustments to reconcile net loss to net cash provided (used) by operating activities:

Depreciation and amortization

665,604

667,298

Loss on abandonment of mineral properties

318,502

Accretion of asset retirement obligation

5,197

6,118

Common stock payable for directors fees

84,375

89,858

Gain on settlement of Hillgrove advance

(113,422 )

0

Gain on forgiveness of Cares Act debt

(443,400 )

0

Other non-cash items

0

(661 )
Change in:

Accounts receivable

(484,093 )

62,399

Inventories

(83,743 )

61,194

IVA receivable and other assets

(30,612 )

10,119

Accounts payable

(624,028 )

(252,183 )
Accrued liabilities

(64,417 )

25,769

Export tax assessment payable

(1,120,730 )

0

Payables to related parties

(171,016 )

21,405

Net cash used by operating activities

(2,477,864 )

(566,587 )

Cash Flows From Investing Activities:

Proceeds from redemption of certificates of deposit

210,184

0

Purchase of properties, plants and equipment

(616,479 )

(220,455 )
Net cash used by investing activities

(406,295 )

(220,455 )

Cash Flows From Financing Activities:

Change in checks issued and payable

(86,685 )

(2,879 )
Net proceeds from (payments to) factor

0

(5,032 )
Payments on advances from related party

(56,416 )

(64,650 )
Proceeds from note payable-SBA

0

443,400

Proceeds from issuance of common stock, net of issuance costs

23,342,180

1,813,068

Proceeds from exercise of warrants

1,790,703

0

Payments on Hillgrove advances payable

(1,020,799 )

0

Borrowing on notes payable to bank

0

(46,270 )
Principal paid on notes payable to bank

(100,000 )

0

Principal payments of long-term debt

(86,426 )

(30,876 )
Net cash provided by financing activities

23,782,557

2,106,761

NET INCREASE IN CASH AND CASH

EQUIVALENTS AND RESTRICTED CASH

20,898,398

1,319,719

Cash and cash equivalents and restricted cash at beginning of period

722,377

172,767

Cash and cash equivalents and restricted cash at end of period

$ 21,620,775

$ 1,492,486

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Common stock payable issued to directors (Note 10)

$ 110,000

$ 130,483

Payable to related party satisfied with issuance of stock (Note 10)

$ 0

$ 62,500

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the three months ended March 31, 2022 and 2021

	Total Preferred Stock				Common Stock				Additional			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Paid in Capital			Deficit			Equity
BALANCE, December 31, 2020		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(32,650,794	)	$	7,186,389
Common shares issued for cash		-		0		26,290,000		262,900		24,734,100			0			24,997,000
Common stock issuance costs		-		0		-		0		(1,654,820	)		0			(1,654,820	)
Common stock issued for exercise of warrants		-		0		3,723,810		37,238		1,726,381			0			1,763,619
Net loss		-		0		-		0		0			(335,488	)		(335,488	)
BALANCE, March 31, 2021		2,678,909	$	26,788		105,963,567	$	1,059,634	$	63,856,560		$	(32,986,282	)	$	31,956,700

BALANCE, December 31, 2021		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(32,711,263	)	$	32,368,803
Net income		-		0		-		0		0			786,252			786,252
BALANCE, March 31, 2022		2,620,576	$	26,205		106,240,361	$	1,062,402	$	63,991,459		$	(31,925,011	)	$	33,155,055

The accompanying notes are an integral part of ~~the~~these condensed consolidated unaudited financial statements.

6Page 5 of 25

Table of Contents

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

1. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES	~~Basis of Presentation~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10‑Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three and nine month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. ~~For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.~~ ~~Going Concern Consideration~~ At September 30, 2021, the Company’s condensed consolidated financial statements show working capital of approximately $21.2 million and an accumulated deficit of approximately $32.7 million. The Company has incurred losses for the past two fiscal years which are principally a result of the Company’s antimony operations due to both depressed antimony prices and production costs incurred in Mexico. To improve conditions, the Company continues searching for areas to reduce these production costs. In the nine months of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants. These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, additional managerial staff at United States Antimony Corporation (“USAC”) and Bear River Zeolite (“BRZ”) headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana. With the funds raised, management believes the Company has sufficient funds to sustain its operations and meet its financial obligations during the twelve months following the date of issuance of these condensed consolidated financial statements.

~~Developments in Accounting Pronouncements~~

~~Accounting Standards Updates Adopted~~

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s

For the three months ended

March 31, 2022

March 31, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ 786,252

$ (335,488 )
Adjustments to reconcile net loss to net cash used by operating activities

Depreciation and amortization

220,150

222,464

Accretion of asset retirement obligation

1,732

1,732

Common stock payable for directors fees

28,125

28,125

Write-down of inventory to net realizable value

0

57,530

Other non-cash items

0

(661 )
Changes in operating assets and liabilities:

Accounts receivable

(584,539 )

(298,933 )
Inventories

28,440

(125,067 )
IVA receivable and other assets

(41,023 )

(50,546 )
Accounts payable

(278,178 )

(582,360 )
Accrued liabilities

2,944

(80,998 )
Export tax assessment payable

0

(1,120,730 )
Payable to related parties

0

(164,922 )
Net cash provided (used) by operating activities

163,903

(2,449,854 )
CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of properties, plants and equipment

(188,541 )

(23,298 )
Net cash used by investing activities

(188,541 )

(23,298 )
CASH FLOWS FROM FINANCING ACTIVITIES:

Change in checks issued and payable

0

(86,685 )
Payments on advances from related party

0

(56,216 )
Proceeds from issuance of common stock, net of issuance costs

0

23,342,180

Proceeds from exercise of warrants

0

1,763,619

Principal paid on notes payable to bank

0

(100,000 )
Principal payments of long-term debt

(4,057 )

(12,518 )
Net cash provided (used) by financing activities

(4,057 )

24,850,380

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(28,695 )

22,377,228

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

21,420,329

722,377

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$ 21,391,634

$ 23,099,605

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

7Page 6 of 25

Table of Contents

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

NOTE 1 - NATURE OF OPERATIONS

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and ~~Subsidiaries~~silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc. (previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A. de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer. Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

~~Notes~~

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2022, and its results of operations for the three months ended March 31, 2022, and 2021, and cash flows for the three months ended March 31, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 31, 2022.

This summary of significant accounting policies of the Company is presented to ~~Condensed Consolidated Financial Statements (Unaudited)~~assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements.

Page 2.7

of 25

~~Developments in Accounting Pronouncements, Continued:~~

~~Accounting Standards Updates to Become Effective in Future Periods~~

~~In August 2020, the FASB issued ASU No~~.~~2019~~-12~~Debt with Conversion and Other Options (Subtopic 470~~-~~20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815~~-~~40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result~~Table of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s condensed consolidated financial statements.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption.

Contents

3. UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

~~Income (Loss) Per Common Share~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible preferred stock.

At September 30, 2021 and 2020, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:March 31, 2022

September 30,
2021

September 30,
2020

Warrants

12,489,922

6,194,899

Convertible preferred stock

1,751,005

1,751,005

Total possible dilution

14,240,927

7,945,904

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported.

COVID -19

The Company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States and elsewhere, causing disruptions to the Company’s business operations and management. These disruptions are most evident in the Company’s ability to retain and house employees and properly manage them while maintaining proper social distancing and with delays in obtaining materials and supplies.

The effects of the continued outbreak of COVID-19 and related government responses could also include extended disruptions to supply chains and capital markets, reduced availability of contractors and a prolonged reduction in economic activity. These effects could have a variety of adverse impacts on the Company, including its ability to conduct operations.

The Company has taken steps to mitigate the potential risks to suppliers and employees posed by the spread of COVID-19, including work from home policies where appropriate. The Company will continue to monitor developments affecting both its workforce and contractors, and will take additional precautions as necessary. The ultimate impact of COVID-19 depends on factors beyond management’s knowledge or control, including its duration and third-party actions to contain its spread and mitigate its public health effects. Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

New Accounting Pronouncements

Accounting standards that have been issued or proposed by the Financial Accounting Standards Board (“FASB”) that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

NOTE 3– EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

For the three months ended March 31, 2022, the calculation of diluted income per common share included 149,400 warrants to purchase one share of common stock. At March 31, 2022 and 2021, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

March 31, 2022

March 31, 2021

Warrants

9,400,207

2,471,089

Convertible preferred stock

1,692,672

1,751,005

TOTAL POSSIBLE DILUTIVE SHARES

11,092,879

4,222,094

NOTE 4 – REVENUE RECOGNITION

~~Revenue Recognition~~

Products consist of the following:

	·	Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide and antimony metal
	·	Zeolite: includes coarse and fine zeolite crushed in various sizes
	·	Precious ~~Metals:~~metals: includes unrefined and refined gold and silver

Page 8 of 25

Table of Contents

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

4.UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES	~~Revenue Recognition, Continued:~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	~~Sales of products for the three and nine month periods ended September 30, 2021 and 2020 were as follows:~~March 31, 2022

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Antimony

$ 1,284,969

$ 477,273

$ 3,371,015

$ 2,509,183

Zeolite

693,008

481,126

1,929,383

1,653,201

Precious metals

73,736

48,832

280,164

173,029

$ 2,051,713

$ 1,007,231

$ 5,580,562

$ 4,335,413

Sales of products for the three-months ended March 31, 2022 and 2021 were as follows:

~~The following is sales information by geographic area based on the location of customers for the three and nine month periods ended September 30, 2021 and 2020:~~

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

United States

$ 1,805,456

$ 891,090

$ 4,954,412

$ 3,893,374

Canada

246,257

116,141

626,150

442,039

$ 2,051,713

$ 1,007,231

$ 5,580,562

$ 4,335,413

~~Sales of products to significant customers were as follows for the three and nine month periods ended September 30, 2021 and 2020:~~

For the Three Months Ended

For the Nine Months Ended

Sales to

September 30,

September 30,

September 30,

September 30,

Largest Customers

2021

2020

2021

2020

Company A

288,640

114,075

778,211

404,447

Company B

581,609

105,865

1,284,206

0

Company C

0

0

518,226

523,660

Company D

225,800

0

225,800

0

Company E

0

131,360

0

345,899

$ 1,096,049

$ 351,300

$ 2,806,443

$ 1,274,006

% of Total Revenues

53.42 %

34.88 %

50.29 %

29.39 %

	For the three months ended
	March 31, 2022		March 31, 2021
Antimony	$	2,828,930	$	657,107
Zeolite		674,042		519,947
Precious metals		77,334		76,233
TOTAL REVENUE BY PRODUCT	$	3,580,306	$	1,253,287

~~At September 30,~~The Company’s trade accounts receivable balance related to contracts with customers was $1,475,853 at March 31, 2022 and $891,314 at December 31, 2021. The Company’s products do not involve any warranty agreements and product returns are not typical.

NOTE 5– INVENTORIES

Inventories at March 31, 2022 and December 31, 2021 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the ~~Company had a sales order backlog~~lower of ~~1,192 tons~~first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight. Inventories at March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022		December 31, 2021
Antimony Metal	$	397,815	$	234,461
Antimony Oxide		361,797		439,086
Antimony Ore Concentrates		15,222		119,046
Total antimony		774,834		792,593
Zeolite		252,146		262,827
TOTAL INVENTORIES	$	1,026,980	$	1,055,420

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico. The Company’s zeolite ~~and 44,092 pounds~~inventory consists of ~~antimony.~~saleable zeolite material.

Page 9 of 25

Table of Contents

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

4.UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

~~Revenue Recognition, Continued:~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~Accounts receivable from largest customers were as follows at September 30, 2021 and December~~March 31, ~~2020:~~2022

Largest

Accounts Receivable

September 30,
2021

December 31,
2020

Company B

$ 222,100

$ 0

Company F

110,864

0

Company G

54,400

68,055

Company H

0

21,619

Company I

0

16,600

Company J

0

12,255

$ 387,364

$ 118,529

% of Total Receivables

53.60 %

49.67 %

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at March 31, 2022 and December 31, 2021 are shown below:

Our trade accounts receivable balance related to contracts with customers was $722,727 at September 30, 2021 and $238,634 at December 31, 2020. Our products do not involve any warranty agreements and product returns are not typical.

5.	~~Inventories~~

	Inventories at September 30, 2021 and December 31, 2020 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight. Inventories at September 30, 2021 and December 31, 2020 are as follows:

	Antimony Segment						Zeolite Segment			Precious Metals
March 31, 2022	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,713,328		$	8,774,212		$	3,881,612		$	1,338,774		$	15,707,926
Buildings		243,248			613,449			1,093,554			0			1,950,251
Mineral rights and interests		0			848,012			0			0			848,012
Land and other		2,431,387			2,478,044			16,753			0			4,926,184
		4,387,963			12,713,717			4,991,919			1,338,774			23,432,373
Accumulated depreciation		(2,742,278	)		(5,761,012	)		(3,359,362	)		(467,597	)		(12,330,249	)
	$	1,645,685		$	6,952,705		$	1,632,557		$	871,177		$	11,102,124

September 30,
2021

December 31,
2020

Antimony Metal

$ 116,325

$ 268,100

Antimony Oxide

214,659

67,377

Antimony Ore

211,788

95,880

Total antimony

542,772

431,357

Zeolite

191,184

218,856

$ 733,956

$ 650,213

	Antimony Segment						Zeolite Segment			Precious Metals
December 31, 2021	USAC			USAMSA			BRZ			Segment			TOTAL
Plant and equipment	$	1,684,977		$	8,757,775		$	3,853,056		$	1,330,394		$	15,626,202
Buildings		243,248			613,449			986,736			0			1,843,433
Mineral rights and interests		0			848,012			0			0			848,012
Land and other		2,431,387			2,478,044			16,753			0			4,926,184
		4,359,612			12,697,280			4,856,545			1,330,394			23,243,831
Accumulated depreciation		(2,732,809	)		(5,622,555	)		(3,314,658	)		(440,076	)		(12,110,098	)
	$	1,626,803		$	7,074,725		$	1,541,887		$	890,318		$	11,133,733

At March 31, 2022 and December 31, 2021, the Company had $956,965 and $665,175, respectively, of assets that were not yet placed in service and have not yet been depreciated.

NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the three months ended March 31, 2022 and 2021 are as follows:

	Three months ended March 31,
	2022		2021
Asset retirement obligation, beginning of period	$	191,149	$	184,219
Accretion expense		1,732		1,732
Asset retirement obligation, end of period	$	192,881	$	185,951

The Company’s total asset retirement obligation and accrued reclamation costs of $300,318 and $298,649, at March 31, 2022 and December 31, 2021, respectively, include reclamation obligations for the Idaho and Montana operations of $107,500.

Antimony oxide inventory consisted of finished product oxide held at the Company’s plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material. The Company’s zeolite inventory consists of salable zeolite material.

~~As of September 30, 2021 and December 31, 2020, all inventory is valued at cost except for antimony ore inventory in Mexico which was valued at net realizable value as of December 31, 2020.~~

Page 10 of 25

Table of Contents

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~

6.UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES	~~Commitments and Contingencies~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three and nine month periods ended September 30, 2021, the Company had royalty expense of $64,212 and $195,779, respectively. During the three and nine month periods ended September 30, 2020, the Company had royalty expense of $52,569 and $178,187, respectively. At September 30, 2021 and DecemberMarch 31, 2020, the Company had accrued royalties payable of $376,704 and $434,981, respectively, which is included in accrued liablities. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements. 2022

NOTE 8 – DEBT

~~Notes Payable to Bank~~

~~At September 30, 2021 and December 31, 2020, the Company had the following notes payable to bank:~~

2021

2020

Promissory note payable to First Security Bank of Missoula,

bearing interest at 3.150%, payable on demand, collateralized

by a lien on Certificate of Deposit

$ 0

$ 99,999

Promissory note payable to First Security Bank of Missoula,

bearing interest at 3.150%, payable on demand, collateralized

by a lien on Certificate of Deposit

0

1

Total notes payable to the bank

$ 0

$ 100,000

Long term debt at March 31, 2022 and December 31, 2021 is as follows:

	March 31, 2022			December 31, 2021
Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit	$	211,093		$	215,150
Less current portion		(12,287	)		(13,230	)
Long term portion	$	198,806		$	201,920

At March 31, 2022, principal payments on debt are due as follows:

Twelve months ending March 31,	Principal payment
2023	$	12,287
2024		12,555
2025		12,852
2026		13,144
2027		160,255
	$	211,093

NOTE 9 – COMMITMENTS AND CONTINGENCIES

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At March 31, 2022 and December 31, 2021, the Company had accrued liabilities of $1,270 and $Nil, respectively, relating to such assessments, which is included in accrued liabilities on the condensed consolidated balance sheets.

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three months ended March 31, 2022 and 2021, the Company incurred royalty expense of $62,030 and $62,130, respectively. Royalty expense is included in cost of goods sold on the Statement of Operations. At March 31, 2022 and December 31, 2021, the Company had accrued royalties payable of $381,054 and $346,242, respectively, which is included in accrued liabilities on the condensed consolidated balance sheets. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

NOTE 10 – STOCKHOLDERS’ EQUITY

During the three months ended March 31, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the three months ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $1,763,619 in cash from the exercise of warrants.

During the three months ended March 31, 2022 and March 31, 2021, the Company expensed $28,125 and $28,125, respectively, in directors’ fees payable that will be paid in common stock.

The Company issued no shares of common stock during the three months ended March 31, 2022.

The notes are paid in full as of September 30, 2021 and the lien on the Certificate of Deposit has been released. An amount of $210,184 of the Certificate of Deposit was released during the nine months ended September 30, 2021 and the cash was transferred to the checking account, leaving a Certificate of Deposits balance of $44,028 at September 30, 2021 compared to $254,212 at December 31, 2020.

Page 11 of 25

Table of Contents

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited), Continued:~~

8.UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES	~~Debt~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	~~Long-Term debt at September 30, 2021 and December~~March 31, ~~2020 is as follows:~~2022

September 30,

December 31,

2021

2020

Note payable to Zeo Inc., non interest bearing,

payable in 11 quarterly installments of $8,300 with a final payment of $8,700;

maturing December 2022; uncollateralized.

$ 0

$ 66,800

Note payable to Cat Financial Services, bearing interest at 6%;

payable in monthly installments of $778; maturing

December 2022; collateralized by equipment.

0

17,480

Note payable to Phyllis Rice, bearing interest

at 1%; payable in monthly installments of $2,000; originally maturing

March 2015; collateralized by equipment.

0

2,146

0

86,426

Less current portion

-

(52,122 )
Long-term portion

$ 0

$ 34,304

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent.

~~Related Party Transactions~~

The Company’s previous President and Chairman, John Lawrence, rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr. Lawrence owned. The amount due to Mr. Lawrence’s estate as of September 30, 2021 and December 31, 2020 was $nil and $171,017. During the nine months ended September 30, 2021, the Company paid off the full amount of $171,017 to John Lawrence’s estate for reimbursement of these expenses.

During 2019, Mr. Lawrence advanced funds to the Company that had a balance at December 31, 2020 of $56,215. During the nine month period ended September 30, 2021, the Company paid First Security Bank on behalf of Mr. Lawrence $56,215. The balance of the advances due to Mr. Lawrence at September 30, 2021 is $nil.

John C. Gustavsen, Interim CEO of the Company, has an advance due from the Company of $200 at December 31, 2020. During the nine month period ended September 30, 2021, the Company paid $200 to Mr. Gustavsen as reimbursement on these advances.

During the nine months ended September 30, 2021, Russ Lawrence, Interim President & Director, incurred expenses of $18,487 and charged the Company for lodging and meals provided to visiting Board of Directors by an entity that Russ Lawrence owns. During the nine month period ended September 30, 2021, the Company paid Russ Lawrence $17,740, leaving a balance due of $747 which is included in accounts payable on the balance sheet.

~~Table of Contents~~

The Company issued no warrants to purchase common stock during the three months ended March 31, 2022.

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and March 31, 2022		12,489,922		$	0.75

The composition of the Company’s warrants outstanding at March 31, 2022 is as follows:

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.37
	2,285,715		0.46	7/31/2025		3.34
	804,000		0.46	1/27/2026		3.83
	7,650,000		0.85	3/8/2026		4.35
	1,606,500		0.85	2/1/2026		3.84
	12,489,922

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited), Continued:~~NOTE 11 – BUSINESS SEGEMENTS

~~10.~~

~~Stockholder’s Equity~~

In February 2021, the Company sold shares of its common stock in two separate transactions: On February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of cash issuance costs were incurred on these sales.

~~During the nine months ended September 30, 2021, the Company accrued $84,375 in directors’ fees payable that will be paid in common stock.~~

During the nine months ended September 30, 2021, the Company issued 112,610 shares of common stock to the board of director’s to satisfy the directors’ fees payable of $110,000 that were outstanding at December 31, 2020.

During the nine month period ended September 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants. For the same period in 2020, the Company’s former president, John Lawrence, exercised warrants for 250,000 shares of common stock in exchange for a payable due to him of $62,500.

~~Warrants~~

Concurrent with the February 3, 2021 sale of common stock, the Company sold warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent.

~~Transactions in common stock purchase warrants for the nine month period ended September 30, 2021 and the year ended December 31, 2020 are as follows:~~

Number of Warrants

Exercise Prices

Balance December 31, 2019

702,041

$
0.25 - $0.65

Issued

5,742,858

$ 0.46

Exercised

(250,000 )

$ 0.25

Balance December 31, 2020

6,194,899

$
0.46 - $0.65

Issued

10,060,500

$
0.46- $0.85

Exercised

(3,765,477 )

$
0.46 - $0.65

Balance September 30, 2021

12,489,922

$
0.46 - $0.85

~~These warrants expire as follows:~~

Warrants

Exercise Price

Expiration
Date

143,707

$ 0.65

2022

2,285,715

$ 0.46

2026

9,256,500

$ 0.85

2026

804,000

$ 0.46

2026

12,489,922

~~Table of Contents~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited), Continued:~~

~~11.~~

~~Income and Other Taxes~~

~~Mexican Tax Assessment~~

In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The Company engaged accountants and tax attorneys in Mexico to defend its position. The assessment was settled in 2018 with no assessment against the Company.

In early 2019, the Company was notified that SAT re-opened its audit of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $818,000 USD as of September 30, 2021. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. The Company engaged a tax attorney in Mexico to defend its position. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments. Management expects the appeal process to continue through 2021.

At September 30, 2021 and December 31, 2020, management assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorney in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at September 30, 2021 and December 31, 2020 relating to this potential tax liability. There can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position. If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its current net operating loss carryforward, or accrue penalties, interest, and tax associated with the assessment.

~~Other Taxes~~

In 2016, USAMSA imported coal from the United States to its smelter in Mexico to process Australian concentrates associated with the Hillgrove agreement (Note 12). At that time, the Company applied for and was granted a Maquiladora (IMMEX), in accordance with a Manufacturing and Export Services Industry program offered by the Mexican government to attract and promote foreign investment in Mexico. With the IMMEX, all imported goods to Mexico that are also exported in altered form are exempt from the requirement of paying the 16% tax (IVA). The Company did not pay IVA on any of the imported coal used to process the Australian concentrates. In 2020, the Company was informed by the SAT that it owed the 16% IVA money for all the coal imported for the processing of the Australian concentrates. Additionally, there were penalties and fees that SAT added to the total amount. In late 2020, the Company filed a motion before the Taxpayer’s Defense Agency (PRODECON), but the motion was denied. To avoid exorbitant penalties, the Company elected to pay the assessed amount in early 2021. For the year ended December 31, 2020, the Company recognized an export tax expense of $1,120,730 and accrued a liability for this assessment. The assessment was settled with a payment of $1,120,730 during the three month period ended March 31, 2021.

~~Table of Contents~~

~~United States Antimony Corporation and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited), Continued:~~

~~12.~~	~~Hillgrove Advances Payable~~

	On November 7, 2014, the Company entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) in which the Company was advanced funds from Hillgrove to build facilities to process Hillgrove antimony concentrate. The Company has not processed Hillgrove concentrate for more than two years. The agreement requires the Company to pay the advance balance after Hillgrove issues a stop notice. Payments would begin 90 days after the stop notice issue date and be made in six equal and quarterly installments. Hillgrove was acquired by Red River Resources LTD (“Red River”) during 2019. The balance of the advance liability due was $1,134,221 at December 31, 2020. In April 2021, the Company successfully negotiated a settlement with Red River for an agreed upon amount of $1,020,799 which was paid on paid on April 8, 2021. The Company recognized a gain on settlement of the advance in the amount of $113,422 during the three month period ended June 30, 2021.

~~13.~~

~~Business Segments~~

The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States, although the Company does have a sales operation in Canada.

Page 12 of 25

~~Segment disclosure regarding sales to major customers is located in Note 4.~~

Table of Contents

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

Properties, plants and equipment, net:	September 30, 2021		December 31, 2020
Total Assets:					March 31, 2022		December 31, 2021
Antimony
United States	$	1,617,981	$	1,637,738	$	24,749,039	$	24,130,348
Mexico		7,215,048		7,635,410		7,575,114		7,771,515
Subtotal Antimony		8,833,029		9,273,148
Subtotal antimony						32,324,153		31,901,863
Precious metals		904,647		933,885
United States						189,567		107,464
Mexico						681,610		782,854
Subtotal precious metals						871,177		890,318
Zeolite		1,438,791		1,018,561		2,344,215		2,210,546
Total	$	11,176,469	$	11,225,594
TOTAL					$	35,539,545	$	35,002,727

~~At September 30, 2021 and December 31, 2020, the Company had $807,471 and $755,978, respectively, of assets that were not yet placed in service and have not yet been depreciated.\~~

	For the three months ended
Capital expenditures:	March 31, 2022		March 31, 2021
Antimony
United States	$	28,350	$	0
Mexico		16,437		4,872
Subtotal antimony		44,787		4,872
Precious metals		8,380		18,426
Zeolite		135,374		0
TOTAL	$	188,541	$	23,298

15Page 13 of 25

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

Segment operations for the three months ended March 31, 2022

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Zeolite

Total

Total revenues

$ 2,828,930

$ 0

$ 2,828,930

$ 77,334

$ 674,042

$ 3,580,306

Depreciation and amortization

$ 9,469

$ 138,457

$ 147,926

$ 27,520

$ 44,704

$ 220,150

Income (loss) from operations

$ 1,391,512

$ (684,037 )

$ 707,475

$ 49,814

$ 22,291

$ 779,580

Other income (expense)

7,310

0

7,310

0

(638 )

6,672

NET INCOME (LOSS)

$ 1,398,822

$ (684,037 )

$ 714,785

$ 49,814

$ 21,653

$ 786,252

Segment operations for the three months ended March 31, 2021	Antimony - USA			Antimony -Mexico			Total antimony			Precious Metals		Zeolite			Total
Total revenues	$	657,107		$	0		$	657,107		$	76,233	$	519,947		$	1,253,287
Depreciation and amortization	$	7,891		$	144,952		$	152,843		$	27,604	$	42,017		$	222,464
Income (loss) from operations	$	(218,669	)	$	(238,568	)	$	(457,237	)	$	48,630	$	66,881		$	(341,726	)
Other income (expense)		6,635			0			6,635			0		(397	)		6,238
NET INCOME (LOSS)	$	(212,034	)	$	(238,568	)	$	(450,602	)	$	48,630	$	66,484		$	(335,488	)

Page 14 of 25

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

Any statement that expresses or involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates”, or “intends”, or states that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

	·	Risks related to the Company’s properties being in the exploration stage;
	·	Risks related to the mineral operations being subject to government regulation;
	·	Risks related to environmental concerns;
	·	Risks related to the Company’s ability to obtain additional capital to develop the Company’s resources, if any;
	·	Risks related to mineral exploration and development activities;
	·	Risks related to mineral estimates;
	·	Risks related to the Company’s insurance coverage for operating risks;
	·	Risks related to the fluctuation of prices for precious and base metals, such as gold, silver and copper;
	·	Risks related to the competitive industry of mineral exploration;
	·	Risks related to the title and rights in the Company’s mineral properties;
	·	Risks related to the possible dilution of the Company’s common stock from additional financing activities;
	·	Risks related to potential conflicts of interest with the Company’s management;
	·	Risks related to the Company’s shares of common stock;

This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors”, “Description of Business” and “Management’s Discussion and Analysis and Plan of Operation” of this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review the reports and documents filed from time to time with the Securities and Exchange Commission (the “SEC”), particularly the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

United States Antimony Corporation ~~and Subsidiaries~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited), Continued:~~qualifies all forward-looking statements contained in this Quarterly Report by the foregoing cautionary statement.

~~13.~~

Certain statements contained in this Quarterly Report on Form 10-Q constitute “forward-looking statements.” These statements, identified by words such as “plan,” “anticipate,” “believe,” “estimate,” “should,” “expect,” and similar expressions include the Company’s expectations and objectives regarding its future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption “Management’s Discussion and Analysis or Plan of Operation” and elsewhere in this Quarterly Report.

~~Business Segments, Continued:~~

For the Three Months Ended

For the Nine Months Ended

Capital expenditures:

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

Antimony

United States

$ 4,060

$ 0

$ 4,060

$ 32,448

Mexico

4,872

2,923

14,616

33,585

Subtotal Antimony

8,932

2,923

18,676

66,033

Precious Metals

17,607

17,366

54,954

138,211

Zeolite

474,812

0

542,849

16,211

Total

$ 501,351

$ 20,289

$ 616,479

$ 220,455

Segment Operations for the three

Antimony

Antimony

Total

Precious

Bear River

months ended September 30, 2021

USAC

Mexico

Antimony

Metals

Zeolite

Totals

Total revenues

$ 1,284,969

$ 0

$ 1,284,969

$ 73,736

$ 693,008

$ 2,051,713

Depreciation and amortization

8,032

145,027

153,059

28,361

41,776

223,196

Income (loss) from operations

528,750

(673,739 )

(144,989 )

45,375

(12,348 )

(111,962 )

Other income (expense):

13,249

0

13,249

0

(519 )

12,730

NET INCOME (LOSS)

$ 541,999

$ (673,739 )

$ (131,740 )

$ 45,375

$ (12,867 )

$ (99,232 )

Segment Operations for the three

Antimony

Antimony

Total

Precious

Bear River

months ended September 30, 2020

USAC

Mexico

Antimony

Metals

Zeolite

Totals

Total revenues

$ 477,273

$ 0

$ 477,273

$ 48,832

$ 481,126

$ 1,007,231

Depreciation and amortization

7,395

146,099

153,494

22,141

42,015

217,650

Income (loss) from operations

(208,676 )

(904,337 )

(1,113,013 )

26,691

96,813

(989,509 )

Other income (expense):

(2,883 )

(4 )

(2,887 )

0

(844 )

(3,731 )

NET INCOME (LOSS)

$ (211,559 )

$ (904,341 )

$ (1,115,900 )

$ 26,691

$ 95,969

$ (993,240 )

16Page 15 of 25

Table of Contents

As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antinomy “and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

Management’s Discussion and ~~Subsidiaries~~Analysis is intended to be read in conjunction with the Company’s condensed consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2021. The following statements may be forward-looking in nature and actual results may differ materially.

~~Notes~~Reports to ~~Condensed Consolidated Financial Statements (Unaudited), Continued:~~Security Holders

~~13.~~

The Registrant does not issue annual or quarterly reports to security holders other than the annual Form 10-K and quarterly Forms 10-Q as electronically filed with the SEC. Electronically filed reports may be accessed at www.sec.gov.

~~Business Segments, Continued:~~

Segment Operations for the nine

Antimony

Antimony

Total

Precious

Bear River

months ended September 30, 2021

USAC

Mexico

Antimony

Metals

Zeolite

Totals

Total revenues

$ 3,371,015

$ 0

$ 3,371,015

$ 280,164

$ 1,929,383

$ 5,580,562

Depreciation and amortization

23,816

434,978

458,794

84,191

122,619

665,604

Income (loss) from operations

409,723

(1,487,670 )

(1,077,947 )

195,973

196,096

(685,878 )

Other income (expense):

476,609

113,422

590,031

0

(1,732 )

588,299

NET INCOME (LOSS)

$ 886,332

$ (1,374,248 )

$ (487,916 )

$ 195,973

$ 194,364

$ (97,579 )

Segment Operations for the nine

Antimony

Antimony

Total

Precious

Bear River

months ended September 30, 2020

USAC

Mexico

Antimony

Metals

Zeolite

Totals

Total revenues

$ 2,509,183

$ 0

$ 2,509,183

$ 173,029

$ 1,653,201

$ 4,335,413

Depreciation and amortization

22,184

438,297

460,481

66,422

140,395

667,298

Income (loss) from operations

156,884

(2,182,979 )

(2,026,095 )

106,607

347,166

(1,572,322 )

Other income (expense):

(1,058 )

(4 )

(1,062 )

0

(3,021 )

(4,083 )

NET INCOME (LOSS)

$ 155,826

$ (2,182,983 )

$ (2,027,157 )

$ 106,607

$ 344,145

$ (1,576,405 )

DESCRIPTION OF BUSINESS

History

United States Antimony Corporation, or USAC, was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, we suspended antimony mining operations but continued to produce antimony products from domestic and foreign sources. In April 1998, we formed United States Antimony SA de CV or USAMSA, to mine and smelt antimony in Mexico. Bear River Zeolite Company, or BRZ, was incorporated in 2000, and it is mining and producing zeolite in southeastern Idaho. On August 19, 2005, USAC formed Antimonio de Mexico, S. A. de C. V. to explore and develop antimony and silver deposits in Mexico. Our principal business is the production and sale of antimony, silver, gold, and zeolite products. On May 16, 2012, we started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY.

Antimony Division

Our antimony smelter and precious metals plant is located in the Burns Mining District of Sanders County, Montana, approximately 15 miles west of Thompson Falls, MT. We hold 2 patented mill sites where the plant is located. We have no “proven reserves” or “probable reserves” of antimony, as these terms are defined by the Securities and Exchange Commission. Environmental restrictions preclude mining at this site.

Mining was suspended in December 1983, because antimony could be purchased more economically from foreign sources.

For 2021, and since 1983, we relied on foreign sources for raw materials, and there are risks of interruption in procurement from these sources and/or volatile changes in world market prices for these materials that are not controllable by us. We have sources of antimony in Mexico but we are still depending on foreign companies for raw material in the future. We expect to receive raw materials from our owned and leased properties for 2022 and later years. We continue working with suppliers in North America, Central America, and South America.

We currently own 100% of the common stock, equipment, and the leases on real property of United States Antimony, Mexico S.A. de C.V. or “USAMSA”, which was formed in April 1998. We currently own 100% of the stock in Antimony de Mexico SA de CV (ADM) which owns the San Miguel concession of the Los Juarez property. USAMSA has two divisions, (1) the Madero smelter in Coahuila, (2) the Puerto Blanco flotation mill and oxide circuit in Guanajuato. ADM possesses the Los Juarez mineral deposit.

In our existing operations in Montana, we produce antimony oxide, antimony metal, and precious metals. Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper. Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains. We also sell antimony metal for use in bearings, storage batteries and ordnance.

17Page 16 of 25

Table of Contents

~~United States Antimony Corporation~~We estimate (but have not independently confirmed) that our present share of the domestic market and ~~Subsidiaries~~

~~Notes~~international market for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products, while China supplies 92% of the world antimony demand. We believe we are competitive both domestically and world-wide due to ~~Condensed Consolidated Financial Statements (Unaudited), Continued:~~the following:

~~14.~~	~~Note Payable-Small Business Administration Loan~~·	We have a reputation for quality products delivered on a timely basis.

	~~On March 27, 2020,~~·	We have the ~~Coronavirus Aid, Relief,~~only two operating, permitted, antimony smelters in North and ~~Economic Security (the “CARES Act”) Act was signed into~~Central America.

	·	We are the only domestic producer of antimony products.

	·	We can ship on short notice to domestic customers.

	·	We are vertically integrated, with raw materials from our own mines, mills, and smelter in Mexico, along with the raw materials from exclusive supply agreements we have with numerous ore and raw material suppliers.

	·	Our smelter in Coahuila is the largest operating antimony smelter in Mexico or the United States ~~law.~~with a current maximum capacity of about 32,600 pounds of feed per day and permitting for 50% to 70% expansion.

Zeolite Division

We own 100% of Bear River Zeolite Company, (BRZ, an Idaho corporation) that was incorporated on June 1, 2000. BRZ has a lease with Webster Farm, L.L.C. that entitles BRZ to surface mine and process zeolite on property located near Preston, Idaho, in exchange for a royalty payment. In 2010 the royalty was adjusted to $10 per ton sold. The current minimum annual royalty is $60,000. In addition, BRZ has more zeolite on U.S. Bureau of Land Management land. The Company pays various royalties on the sale of zeolite products. William Raymond and Nancy Couse are paid a royalty that varies from $1 to $5 per ton. On a combined basis, royalties vary from 8%-13% of sales. Shortly after inception BRZ constructed a processing plant on the property which improved its productive capacity. Ground-breaking for an additional warehouse to store additional inventory and a shop to service equipment started in 2021 and the warehouse and shop are expected to be completed by mid-2022. A vertical-shaft-impactor crusher was replaced by a hammer mill for crushing line number 1 in 2021 for increased production rate. A replacement jaw crusher was installed and put into service in 2021. The new jaw crusher was further improved with a variable-speed apron feeder in late 2021 and subsequent and substantial improvements have been made to the jaw crusher in 2022. In 2021, the Company purchased a house in Preston Idaho for the express purpose of housing workers for its zeolite operation.

We have no reserves nor resources of zeolite, as these terms are defined by the Securities and Exchange Commission.

“Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice. BRZ zeolite is regarded as one of the best zeolites in the world due to its high CEC of approximately 180-220 meq/100 gr., its hardness and high clinoptilolite content, its absence of clay minerals, and its low sodium content. BRZ’s zeolite deposits’ characteristics which make the mineral useful for a variety of purposes including:

~~On April 20, 2020,~~	☐	Soil Amendment and Fertilizer. Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops

	☐	Water Filtration. Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, fisheries, fish farms, and aquariums.

	☐	Sewage Treatment. Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms.

	☐	Nuclear Waste and Other Environmental Cleanup. Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the ~~Company received a loan~~cleanup of ~~$443,400 pursuant to~~soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.

	☐	Odor Control. A major cause of odor around cattle, hog, and poultry feed lots is the ~~Paycheck Protection Program (the “PPP”) under Division A, Title I~~generation of the ~~CARES Act,~~ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which ~~was enacted March 27, 2020. The loan, which was in~~disperses the form of a Note dated April 20, 2020 had a maturity date on April 19, 2022 and an interest rate of 1% per annum. The loan was to be forgiven under the provisions of the CARES Act if the Company used the funds for qualifying expenses. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. During the three month period ended June 30, 2021, the Company received notification that the loan had been forgiven. The amount of the loan, $443,400, was recognized as gain on forgiveness of the CARES Act loan. odor.

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	☐	Gas Separation. Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fish ponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses.

	☐	Animal Nutrition. According to other research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours. BRZ does not make these claims.

	☐	Miscellaneous Uses. Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner and carriers for insecticides, pesticides and herbicides.

SELECTED FINANCIAL DATA.

Statement of Operations Information:

	For the three months ended
	March 31, 2022		March 31, 2021
Revenues	$	3,580,306	$	1,253,287
Cost of revenues		2,440,918		1,041,130
Gross profit		1,139,388		212,157
Total operating expenses		359,808		553,883
Income (loss) from operations		779,580		(341,726	)
Other income (expense)		6,671		6,238
NET INCOME (LOSS)	$	786,252	$	(335,488	)

Weighted average shares of common stock (basic)		106,240,361		92,711,336
Weighted average shares of common stock (diluted)		106,389,761		92,711,336

Income (loss) per share (basic and diluted)	$	0.01	$	Nil

Balance Sheet Information:

	March 31, 2022			December 31, 2021
Working capital	$	22,351,718		$	21,548,137
Total assets		35,539,545			35,002,727
Accumulated deficit		(31,925,011	)		(32,711,263	)
Stockholders’ equity		33,155,055			32,368,803

Page 18 of 25

Table of Contents

~~ITEM 2. Management’s Discussion~~Operational and ~~Analysis of Results of Operations and Financial Condition~~financial performance

~~COVID-19 Coronavirus Pandemic Response and Impact~~Antimony

~~One~~Financial and operational metrics of antimony for the ~~principal challenges facing the Company in~~three months ended March 31, 2022 and 2021 was as a result of stimulus funding from Covid-19 has been the evaporation of available labor. This issue has seriously impacted both operations in Montana and at its zeolite operation in Idaho. The following measures are being taken in an attempt to obtain and retain laborers:follows:

	1.	~~The Company has raised the starting wage both in Montana and Idaho and as a result increased its labor costs for existing laborers.~~
	2.	~~The Company has advertised on multiple job search platforms and is also advertising in two languages on conventional job search platforms as well as on multiple social media sites.~~
	3.	~~The Company is increasing capacity at the Mexican smelter where labor is not a problem.~~
	4.	~~The Company is investigating hiring from alternative potential labor pools.~~

Antimony – combined USA and Mexico	2022		2021
Total revenue - antimony	$	2,828,930	$	657,107
Gross profit - antimony		1,055,777		87,467
Total pounds of antimony sold		433,350		181,969
Average sales price per pound	$	6.53	$	3.61
Average cost per pound	$	4.09	$	3.13
Average gross profit per pound	$	2.44	$	0.48

ItDuring the three months ended March 31, 2022, the average sales price for antimony increased $2.92 per pound compared to the three months ended March 31, 2021. Gross profit per pound increased $1.96 over the three months ended March 31, 2021.

Total revenue from antimony increased $2,171,823 to $2,828,930 for the three months ended March 31, 2022 compared to $657,107 for the comparable prior period ending March 31, 2021. The increase is attributed to an increase in average sales price of $2.92 coupled with an increase of 251, 3851 pound in volume of antimony sold during the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

Gross profit improved from $87,467 (17.3% of revenue) for the three months ended March 31, 2021 to $1,055,777 (60.6% of revenue) for the three months ended March 31, 2022.

The company experienced increased labor costs for the current three-month period relative to the same timeframe in the prior year. A portion of that increase is due to resuming more normalized production levels in 2022 compared to 2021, while a portion is attributable to higher costs of attracting workers. The Company previously increased it starting wage to attract workers during 2021 and the effects thereof impact current cost of goods sold. While it is difficult to ~~hire people if they~~estimate the full impact of current inflationary pressures relative to other costs of production and materials, management expects labor costs to remain relatively steady as COVID-related government benefits are ~~getting paid more not~~being phased out, encouraging the labor force to ~~work, which is~~go back to work. Management expects the ~~reality~~sales price of antimony to remain strong and keep pace with inflation in ~~many cases but is hopeful that~~ the ~~situation(s) fueling this crisis will end soon.~~short term.

~~General~~Modifications to the initial two new furnaces used to produce antimony trisulfide were completed and production runs were conducted confirming the efficacies of the design changes. These furnaces produced 3,091 pounds of antimony trisulfide in January/February time period.

~~Certain matters discussed are forward-looking statements that involve risks~~Two additional electric furnaces have been ordered in anticipation of demand for antimony trisulphide and ~~uncertainties, including the impact of antimony prices and production volatility, changing market conditions~~to allow for down-time servicing. These furnaces have been delivered and the ~~regulatory environment~~necessary modifications are being completed

The Montana operating team continues to improve and ~~other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as~~was able to increase sales and shipments during the period to take advantage of the ~~date~~favorable market prices for antimony. The Company anticipates demand for antimony to remain strong for the foreseeable future and has a strong pipeline of ~~this filing. We disclaim, however, any intent or obligation~~orders in place.

Zeolite

Financial and operational performance of zeolite for the three months ended March 31, 2022 and 2021 was as follows:

Zeolite	2022		2021
Total revenue – zeolite	$	674,042	$	519,947
Gross profit – zeolite		33,797		76,061
Total tons of zeolite sold		3,026		2,743
Average sales price per ton	$	222.75	$	189.55
Average cost per pound ton	$	211.58	$	161.83
Average gross profit per ton	$	11.17	$	27.73

Sales volume of zeolite for the three months ended March 31, 2022 increased 283 tons over the three months ended March 31, 2021. Average sales price per ton increased $33.20 for the same comparable period.

Total revenue from zeolite sales increased $154,095 for the three months ended March 31, 2022 to ~~update these forward-looking statements.~~$674,042 compared to $519,947 for the three months ended March 31, 2021. The increase in revenue is attributable to stronger sales price for zeolite in 2022.

Gross profit for the three months ended March 31, 2022 decreased $42,264 to $33.797 compared to $76,061 for the three months ended March 31, 2021. The Company incurred equipment maintenance expense in the amount of $38,965 during the three months ended March 31, 202 compared to $788 for the three months ended March 31, 2021 when the Company deferred certain expenses in anticipation of closing its capital raise.

Precious Metals

Financial and operational performance of precious metals for the three months ended March 31, 2022 and 2021 was as follows:

Precious metals	2022		2021
Total revenue – precious metals	$	77,334	$	76,233
Ounces sold – gold		10.29		7.28
Ounces sold - silver		4,856		3,354

EARNINGS BEFORE INTEREST TAX DEPRECIATION AND AMORTIZATION

The Company utilizes Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”), a non-GAAP financial measurement which approximates free cash flow.

Our company-wide Earnings Before Interest Taxes Depreciation Amortization (“EBITDA”) was a $1,009,384 for the three months ended March 31, 2022, compared to a negative EBITDA of $110,769 for the three months ended March 31, 2021.

Page 19 of 25

Table of Contents

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~EBIDTA schedules by business segment is presented as follows.

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

Antimony – Combined USA and Mexico	March 31, 2022						March 31, 2021
Antimony revenue	$	2,828,930			100.0	%	$	657,107			100.0	%
Cost of sales		(1,773,153	)	(62.7%)				(569,640	)	(86.7%)
Gross profit		1,055,777			37.3	%		87,467			13.3	%
Operating expenses		(348,302	)	(12.3%)				(544,704	)	(82.9%)
Non-operating income		7,310			0.3	%		6,635			1.0	%
Net income (loss) - antimony		714,785			25.3	%		(450,602	)	(68.6%)
Interest expense		2,345			0.1	%		1,527			0.2	%
Depreciation and amortization		147,926			5.2	%		152,843			23.3	%
EBITDA - Antimony	$	865,055			30.6	%	$	(296,232	)	(45.1%)

Three Months

Three Months

Nine Months

Nine Months

Ended

Ended

Ended

Ended

Antimony - Combined USA and Mexico

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

Lbs of Antimony Metal USA

306,045

89,052

817,131

375,519

Lbs of Antimony Metal Mexico:

-

57,790

10,000

300,474

Total Lbs of Antimony Metal Sold

306,045

146,842

827,131

675,993

Average Sales Price/Lb Metal

$ 4.20

$ 3.25

$ 4.08

$ 3.71

Net loss/Lb Metal

$ (0.43 )

$ (7.60 )

$ (0.59 )

$ (3.00 )

Gross antimony revenue - net of discount

1,284,969

477,273

3,371,015

2,509,183

Cost of sales - domestic

(585,875 )

(491,092 )

(2,080,987 )

(1,559,018 )
Cost of sales - Mexico

(654,380 )

(557,399 )

(1,220,069 )

(1,805,127 )
Operating expenses

(189,703 )

(223,293 )

(1,147,906 )

(852,631 )
Non-operating income (expenses)

13,249

(2,887 )

590,031

(1,062 )
Loss on abandonment of mineral properties

-

(318,502 )

-

(318,502 )

(1,416,709 )

(1,593,173 )

(3,858,931 )

(4,536,340 )

Net loss - antimony

(131,740 )

(1,115,900 )

(487,916 )

(2,027,157 )
Depreciation,& amortization

153,059

153,494

458,794

460,181

EBITDA - antimony

$ 21,319

$ (962,406 )

$ (29,122 )

$ (1,566,976 )

Precious Metals

Ounces sold

Gold

12

6

34

31

Silver

5,638

2,403

15,246

11,434

Gross precious metals revenue

$ 73,736

$ 48,832

$ 280,164

$ 173,029

Cost of sales

(28,361 )

(22,141 )

(84,191 )

(66,422 )
Net income - precious metals

45,375

26,691

195,973

106,607

Depreciation

28,361

22,141

84,191

66,422

EBITDA - precious metals

$ 73,736

$ 48,832

$ 280,164

$ 173,029

Zeolite

Tons sold

3,045

2,500

8,823

8,354

Average Sales Price/Ton

$ 227.59

$ 192.45

$ 218.68

$ 197.89

Net income (Loss)/Ton

$ (4.23 )

$ 38.39

$ 22.03

$ 41.20

Gross zeolite revenue

$ 693,008

$ 481,126

$ 1,929,383

$ 1,653,201

Cost of sales

(681,888 )

(371,690 )

(1,685,551 )

(1,254,821 )
Operating expenses

(23,468 )

(12,623 )

(47,736 )

(51,214 )
Non-operating expenses

(519 )

(844 )

(1,732 )

(3,021 )
Net income (loss) - zeolite

(12,867 )

95,969

194,364

344,145

Depreciation

41,776

42,015

122,619

140,395

EBITDA - zeolite

$ 28,909

$ 137,984

$ 316,983

$ 484,540

Company-wide

Gross revenue

$ 2,051,713

$ 1,007,231

$ 5,580,562

$ 4,335,413

Production costs

(1,950,504 )

(1,442,322 )

(5,070,798 )

(4,685,388 )
Operating expenses

(213,171 )

(235,916 )

(1,195,642 )

(903,845 )
Non-operating income (expenses)

12,730

(3,731 )

588,299

(4,083 )
Loss on abandonment of mineral properties

-

(318,502 )

-

(318,502 )
Net loss

(99,232 )

(993,240 )

(97,579 )

(1,576,405 )
Depreciation,& amortization

223,196

217,650

665,604

667,298

EBITDA

$ 123,964

$ (775,590 )

$ 568,025

$ (909,107 )

Zeolite	March 31, 2022						March 31, 2021
Zeolite revenue	$	674,042			100.0	%	$	519,947			100.0	%
Cost of sales		(640,245	)	(95.0%)				(443,886	)	(85.4%)
Gross profit		33,797			5.0	%		76,061			14.6	%
Operating expenses		(11,506	)	(1.7%)				(9,179	)	(1.8%)
Non-operating income		(638	)	(0.1%)				(397	)	(0.1%)
Net income - zeolite		21,653			3.2	%		66,485			12.8	%
Interest expense		638			0.1	%		728			0.1	%
Depreciation and amortization		44,704			6.6	%		42,017			8.1	%
EBITDA - Zeolite	$	66,995			9.9	%	$	109,230			21.0	%

Precious Metals	March 31, 2022						March 31, 2021
Precious metals revenue	$	77,334			100.0	%	$	76,233			100.0	%
Cost of sales		(27,520	)	(35.6%)				(27,604	)	(36.2%)
Net income – precious metals		49,814			64.4	%		48,629			63.8	%
Depreciation and amortization		27,520			35.6	%		27,604			36.2	%
EBITDA - Precious metals	$	77,334			100.0	%	$	76,233			100.0	%

~~Certain amounts shown in this table may not add exactly to total amounts due to rounding differences~~

Page 20 of 25

Table of Contents

Company-wide	March 31, 2022						March 31, 2021
Revenue	$	3,580,306			100.0	%	$	1,253,287			100.0	%
Cost of sales		(2,440,918	)	(68.2%)				(1,041,130	)	(83.1%)
Gross profit		1,139,388			31.8	%		212,157			16.9	%
Operating expenses		(359,808	)	(10.0%)				(553,883	)	(44.2%)
Non-operating income		6,672			0.2	%		6,238			0.5	%
Net income (loss) - antimony		786,252			22.0	%		(335,488	)	(26.8%)
Interest expense		2,983			0.1	%		2,255			0.2	%
Depreciation and amortization		220,150			6.1	%		222,464			17.8	%
EBITDA	$	1,009,384			28.2	%	$	(110,769	)	(8.8%)

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL	March 31, 2022			December 31, 2021
Current assets	$	24,096,396		$	23,568,992
Current liabilities		(1,744,678	)		(2,020,855	)
Working capital	$	22,351,718		$	21,548,137

	For the three months ended
CASH FLOWS	March 31, 2022			March 31, 2021
Cash flow provided (used) by operating activities	$	163,903		$	(2,449,854	)
Cash flow used by investing activities		(188,541	)		(23,298	)
Cash flow provided (used) by financing activities		(4,057	)		24,850,380
Net change in cash during period	$	(28,695	)	$	22,377,228

As of March 31, 2022, the Company had cash on hand of $21,334,353.

For the year ending December 31, 2022, we are planning to use funds acquired from the two stock offerings raised in 2021 to make significant improvements to our operations at Madero, Puerto Blanco, Bear River Zeolite, and Thompson Falls facilities with the goal of increasing production and decreasing costs.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to its stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not hold any derivative instruments and does not engage in any hedging activities.

Page 21 of 25

Table of Contents

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

ITEM ~~2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

~~Company-Wide~~

For the third quarter of 2021, we recognized a net loss of $99,232 on sales of $2,051,713 and other income and expense of $12,730 after depreciation and amortization of $223,196. We reported a net loss of $993,240 in the third quarter of 2020 on sales of $1,007,231, after depreciation and amortization of $217,650.

For the first nine months of 2021, we recognized a net loss of $97,579 on sales of $5,580,562 and other income and expense of $588,299, after depreciation and amortization of $665,604. We reported a net loss of $1,576,405 for the first nine months of 2020 on sales of $4,335,413, after depreciation and amortization of $667,298.

~~For the three and nine months ended September 30, 2021, EBITDA was a positive $123,964 and $568,025 compared to a negative $775,590 and $909,107 for the same periods in 2020.~~

~~For the three and nine months ended September 30, 2021, general and administrative expenses were $112,744 and $572,905 compared to $110,051 and $429,973 for the same periods of 2020.~~

~~Antimony~~

Antimony has been the focus of the Company since its inception. China, historically the sole supplier of lump antimony trisulfide and the dominate supplier of antimony in general, has held back the export of all antimony products leading to a marked increase in price in 2021.

The Madero crew continued to produce crude antimony oxide and some of this production was simultaneously diverted to crude metal. While the price is high the Company has decided to convert some of its crude oxide to finished metal. This move will eliminate shipping charges for the finished metal as the product will be shipped directly to the customer.

Two new furnaces in Thompson Falls are fully operational and started producing test batches of antimony trisulphide in early October. Throughput nameplate capacity of antimony trisulphide will increase from 100 lbs per day to approximately 1100 lbs per day. A second sample of antimony trisulfide lump has been prepared and sent for grinding and laboratory analysis. If the quality meets specifications, the second sample will be sent to the Picatinny Arsenal of the U. S. Department of Defense.

~~The Company continues to track developments at Ambri, Inc. which has purchased the Company’s antimony metal during the year and may be a significant customer in the future.~~

For the three and nine month periods ended September 30, 2021, we sold 306,045 pounds and 827,131 pounds of antimony compared to 146,842 and 675,993 pounds for the three and nine month periods ended September 30, 2020. The raw material received from our North American supplier increased by approximately 64,077 and 238,195 pounds for the three and nine month periods ended September 30, 2021, compared to the same periods for 2020. We had an increase in raw material from Mexico of approximately 87,223 pounds for the three month period and a decrease of 86 pounds for the nine month period ended September 30, 2021, compared to the same periods for 2020.

~~Table of Contents~~

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

~~The average sales price of antimony during the three and nine month periods ended September 30, 2021 was $4.20 and $4.08 per pound compared to $3.25 and $3.71 during the same periods in 2020.~~

~~Precious Metals~~

Discussions have been initiated with Canadian and American gold and silver exploration companies, presently operating in Mexico, with a view towards a joint venture option agreement. A potential joint venture would ideally have existing personnel with experience in exploration for gold and silver in Mexico and would initially fund and manage the initial exploration programs as part of their earn-in requirement. Traditionally summer is a slow time for junior exploration companies and progress on negotiations has been slower than expected.

For the three and nine month periods ended September 30, 2021, revenue for precious metals from North American sources was $73,736 and $280,164 compared to $48,832 and $173,029 for the same periods of 2020.

~~Current and prior periods’ revenue from precious metals is as follows:~~

Precious Metal Sales
Silver/Gold

For the three months ended
September 30,

For the nine months ended
September 30,

Montana

2021

2020

2021

2020

Ounces Gold Shipped (Au)

12

6

34

31

Ounces Silver Shipped (Ag)

5,638

2,403

15,246

11,434

Total Revenues

$ 73,736

$ 48,832

$ 280,164

$ 173,029

~~Bear River Zeolite (BRZ)~~4. CONTROLS AND PROCEDURES

~~On August 12, 2021 the bearings went out on the primary jaw crusher, essentially shutting down production. The Company was able to source~~Conclusions of Management Regarding Effectiveness of Disclosure Controls and purchase a refurbished jaw crusher, which shortened the down time that would have been required for repairs and dovetailed with the continuing program to upgrade the efficiency and reliability of the zeolite plant. Installation of the new jaw crusher was completed and online by September 3, 2021. Pit production test work utilizing a D-9 dozer to rip the in-situ zeolite instead of drilling and blasting continues. New uses and increased awareness of several of the recognized uses of zeolite are becoming known to the public. This is especially apparent in the advanced treatment requirements for mine discharge water and in the removal of naturally occurring radioactive isotopes in otherwise potable drinking water sources.

~~For the three and nine month periods ended September 30, 2021, BRZ sold 3,045 and 8,823 tons of zeolite compared to 2,500 and 8,354 tons in the same periods of 2020.~~

For the three and nine month periods ended September 30, 2021, BRZ realized a net loss of $12,867 and income of $194,364 after depreciation of $41,776 and $122,619 compared to a net income of $95,969 and $344,145 after depreciation of $42,015 and $140,395 for the same period of 2020.

~~BRZ realized an EBITDA for the three and nine month periods ended September 30, 2021 of $28,909 and $316,983 compared to $137,984 and $484,540 for the same periods in 2020.~~

~~Table of Contents~~

~~PART I - FINANCIAL INFORMATION, CONTINUED:~~

~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~

~~Financial Position~~

Financial Condition and Liquidity

September 30,
2021

December 31,
2020

Current assets

$ 23,064,211

$ 1,808,161

Current liabilities

(1,824,055 )

(4,477,543 )
Net Working Capital

$ 21,240,156

$ (2,669,382 )

For the Nine Months Ended

September 30,
2021

September 30,
2020

Cash used by operations

$ (2,477,864 )

$ (566,587 )
Cash provided (used) by investing:

Cash used for capital outlay

(616,479 )

(220,455 )
Proceeds from redemption of certificates of deposit

210,184

-

Cash provided (used) by financing:

Net payments (to) from factor

(5,032 )
Payments on notes payable to bank

(100,000 )

(46,270 )
Payments on Hillgrove advances payable

(1,020,799 )

-

Proceeds from common stock issued, net

23,342,180

1,813,068

Proceeds from exercise of warrants

1,790,703

-

Principal paid on long-term debt

(86,426 )

(30,876 )
Payments on advances from related party

(56,416 )

(64,650 )
Proceeds from note payable-SBA

-

443,400

Change in checks issued and payable

(86,685 )

(2,879 )
Net change in cash, cash equivalents and restricted cash

$ 20,898,398

$ 1,319,719

Our net working capital increased by $23,909,538 from December 31, 2020 to September 30, 2021. Our cash and cash equivalents increased by $20,898,398 during the same period. We spent $616,479 for capital items, our debt decreased by $1,901,479 including $1,020,799 paid to Hillgrove, and our accounts payable and other accrued liabilities decreased by $1,895,860 including $1,120,730 paid for an export tax assessment. During the first nine months of 2021, we raised approximately $23.3 million from sale of shares of common stock and approximately $1.8 million for the exercise of warrants.
We have estimated commitments and improvements of less than $100,000 to finish building and installing the precious metals leach circuits. However, this funding will be implemented after its geological study of the Los Juarez property. The Company plans to conduct a proper study of the Los Juarez property and its tailings at its flotation plant and pending the results of these studies decide how to proceed regarding a drill program and/or mining of the property. The study may involve a partnership with a junior mining Company in order to assist US Antimony in the proper characterization of the deposit. Should the deposit be of great value, the Company will likely move the flotation plant closer to the mine. We believe that with our current cash balance, along with the future cash flow from operations and operating agreements, we have adequate liquid assets to meet these commitments and service our debt for the next twelve months.
23
~~Table of Contents~~
~~PART I - FINANCIAL INFORMATION, CONTINUED:~~
~~ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:~~Procedures

At ~~September 30, 2021,~~ the Company’s condensed consolidated financial statements show working capital of approximately $21.2 million and an accumulated deficit of approximately $32.7 million. The Company continues to search for areas to reduce production costs, and expects improvement in cash flow for the remainderend of the ~~year from~~period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the ~~sale of antimony~~supervision and ~~zeolite along~~ with the ~~increased price of antimony as the price of antimony has been increasing during the past nine months.~~
In the first half of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants. These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, a geochemical, geological, and geophysical studyparticipation of the ~~Los Juarez property, additional managerial staff at USAC~~Company's management, including the President and ~~BRZ headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair~~Principal Executive Officer ("PEO") and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana. With the funds raised, management believes the Company has sufficient funds to sustain its operations and meet its financial obligations during the 12 months following the date of issuance of these condensed consolidated financial statements.
~~ITEM 3.~~
~~None~~
~~ITEM 4. Controls and Procedures~~
~~EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES~~
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosure. Our Interim President & Director conducted an evaluationPrincipal Financial Officer ("PFO"), of the effectiveness of the ~~Company’s~~design and operations of the Company's disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the ~~Securities~~ Exchange ~~Act of 1934 Rules 13a-15(e)~~Act). Based on that evaluation, the PEO and ~~15d-15(e))~~the PFO have concluded that as of ~~September 30, 2021. It~~the end of the period covered by this report, the Company's disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and ~~procedures and, as a result~~procedures.
Management of ~~those weaknesses, our disclosure controls and procedures were not effective as of September 30, 2021. These~~the Company believes that these material weaknesses are due to the small size of the Company's accounting staff. The small size of the Company's accounting staff may prevent adequate controls in the future, such as ~~follows:~~segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Changes in Internal Control over Financial Reporting
·
~~Inadequate design of internal control over the preparation of the financial statements and financial reporting processes;~~
·
Inadequate monitoring of internal controls over significant accounts and processes including controls associated with domestic and Mexican subsidiary operations and the period-end financial reporting process; and
·
~~The absence of proper segregation of duties within significant processes and ineffective controls over management oversight, including antifraud programs and controls.~~

We are aware of these material weaknesses and will develop procedures to ensure that independent review of material transactions is performed. The Interim President & Director will develop internal control measures to mitigateThere have been no changes during the ~~lack of inadequate documentation of controls and~~quarter ended March 31, 2022 in the ~~monitoring of~~Company’s internal controls over ~~significant accounts and processes including~~financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls ~~associated with the period-ending reporting processes,~~over financial reporting.

24
~~Table~~Page 22 of ~~Contents~~
~~PART I - FINANCIAL INFORMATION, CONTINUED:~~25
~~ITEM 4. Controls and Procedures, continued:~~
~~and to mitigate the segregation of duties within significant accounts and processes and the absence of controls over management oversight, including antifraud programs and controls.~~
~~We plan to consult with independent experts when complex transactions are entered into.~~
~~CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING~~
~~There were no significant changes made to internal controls over financial reporting for the quarter ended September 30, 2021.~~
25
Table of Contents

PART II - OTHER INFORMATION

~~Item~~ITEM 1. LEGAL PROCEEDINGS.
United States Antimony Corporation is not a party to any material legal proceedings, and, to Management’s knowledge, no such proceedings are threatened or contemplated. No director, officer or affiliate of United States Antimony Corporation and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to United States Antimony Corporation or has a material interest adverse to United States Antimony Corporation in reference to pending litigation.
ITEM 1A. RISK FACTORS.
There have been no material changes from the risk factors as previously disclosed in the Company’s Form 10-K for the year ended December 31, 2021 which was filed with the SEC on March 31, 2022.
ITEM 2. RECENT SALES OF UNREGISTERED SECURITIES.
For the three months ended March 31, 2022, the Company sold no common stock.
During the three months ended March 31, 2022, neither the Company nor any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) purchased any shares of our Common Stock, the only class of the Company’s equity securities registered pursuant to section 12 of the Exchange Act at the date of this filing.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

~~Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~ITEM 4. MINE SAFETY DISCOSURES.

~~None~~
~~Item 3. DEFAULTS UPON SENIOR SECURITIES~~
~~The registrant has no outstanding senior securities.~~
~~Item 4. MINE SAFETY DISCLOSURES~~
Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. The information concerning mine safety violations or other regulatory matters required by Section 1503 (a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

~~Item~~ITEM 5. OTHER ~~INFORMATION~~INFORMATION.
None


26Page 23 of 25
Table of Contents

~~Item~~ITEM 6. ~~EXHIBITS AND REPORTS ON FORM 8-K~~EXHIBITS.
~~Certifications~~
~~Certifications Pursuant to the Sarbanes-Oxley Act~~

~~Reports on Form 8-K~~  Exhibit No.

~~None~~Description
31.1
Rule 15d-14(a) Certification by Principal Executive Officer
31.2
Rule 15d-14(a) Certification by Principal Financial Officer
32.1
Section 1350 Certification of Principal Executive Officer
32.2
Section 1350 Certification of Principal Financial Officer
95
Mine Safety Disclosure
101.INS
Inline XBRL Instance Document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
In accordance with Rule 402 of Regulation S-T, the XBRL information included in Exhibit 101 to this Form 10-Q shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

27Page 24 of 25
Table of Contents

SIGNATURES

Pursuant to the requirements of ~~Section 13 or 15(b) of~~ the Securities Exchange Act of 1934, the ~~Registrant~~registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~UNITED STATES ANTIMONY CORPORATION~~
~~(Registrant)~~

~~By:~~
~~/s/ John C. Gustavsen~~UNITED STATES ANTIMONY CORPORATION

~~Date: November 15, 2021~~
~~John C. Gustavsen, Interim CEO~~
~~(Principal Executive)~~

Date: May 16, 2022
By:
/s/ Russell Lawrence

~~Date: November 15, 2021~~
Russell Lawrence
~~Russell C. Lawrence, Interim President & Director~~

(Principal Executive Officer, President and Director)
Date: May 16, 2022
By:
/s/ Kelly J. Stopher
Kelly J. Stopher
(Principal Accounting Officer)

28
Page 25 of 25

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
September 30, 2021 and December 31, 2020
ASSETS
	September 30, 2021			December 31, 2020
Current assets:
Cash and cash equivalents	$	21,563,500		$	665,102
Certificates of deposit		44,028			254,212
Accounts receivable		722,727			238,634
Inventories (Note 5)		733,956			650,213
Total current assets		23,064,211			1,808,161

Properties, plants and equipment, net (Note 13)		11,176,469			11,225,594
Restricted cash for reclamation bonds		57,275			57,275
IVA receivable and other assets		239,084			208,472
Total assets	$	34,537,039		$	13,299,502

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued and payable	$	0		$	86,685
Accounts payable		1,252,846			1,876,874
Accrued liabilities (Note 6)		571,209			635,626
Payables to related party (Note 9)		-			227,432
Notes payable to bank (Note 7)		0			100,000
Export tax assessment payable (Note 11)		0			1,120,730
Hillgrove advances payable (Note 12)		0			378,074
Long-term debt, current portion (Note 8)		0			52,122
Total current liabilities		1,824,055			4,477,543

Long-term debt, net of current portion (Note 8)		0			34,304
Hillgrove advances payable (Note 12)		0			756,147
CARES Act note payable (Note 14)		0			443,400
Stock payable to directors for services (Note 10)		84,375			110,000
Asset retirement obligations and accrued reclamation costs		296,916			291,719
Total liabilities		2,205,346			6,113,113
Commitments and contingencies (Note 6 and 11)

Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized:
Series A: -0- shares issued and outstanding		0			0
Series B: 750,000 shares issued and outstanding (liquidation preference $945,000 and $937,500 respectively)		7,500			7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years)		1,779			1,779
Series D: 1,751,005 shares issued and outstanding (liquidation preference $5,084,770 and $5,043,622 respectively)		17,509			17,509
Common stock, $0.01 par value, 150,000,000 shares authorized; 106,117,844 and 75,949,757 shares issued and outstanding, respectively		1,061,177			759,496
Additional paid-in capital		63,992,101			39,050,899
Accumulated deficit		(32,748,373	)		(32,650,794	)
Total stockholders' equity		32,331,693			7,186,389
Total liabilities and stockholders' equity	$	34,537,039		$	13,299,502

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statements of Operations - Unaudited

	For the three months ended						For the nine months ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020

REVENUES	$	2,051,713		$	1,007,231		$	5,580,562		$	4,335,413

COST OF REVENUES		1,950,504			1,442,322			5,070,798			4,685,388

GROSS PROFIT (LOSS)		101,209			(435,091	)		509,764			(349,975	)

OPERATING EXPENSES:
General and administrative		112,744			110,051			572,905			429,973
Salaries and benefits		72,200			82,308			226,137			288,455
Site care and maintenance expenses		0			0			184,037			24,250
Professional fees		28,227			43,557			212,563			161,167
Loss on abandonment of mineral properties		0			318,502			0			318,502
TOTAL OPERATING EXPENSES		213,171			554,418			1,195,642			1,222,347

LOSS FROM OPERATIONS		(111,962	)		(989,509	)		(685,878	)		(1,572,322	)

OTHER INCOME (EXPENSE):
Interest income		13,320			19			35,202			854
Interest expense		(590	)		(3,750	)		(3,725	)		(14,937	)
Gain on forgiveness of CARES Act debt (Note 14)		0			0			443,400			0
Grant income		0			0			0			10,000
Gain on settlement of Hillgrove advance (Note 12)		0			0			113,422			0
TOTAL OTHER INCOME (EXPENSE)		12,730			(3,731	)		588,299			(4,083	)

NET LOSS		(99,232	)		(993,240	)		(97,579	)		(1,576,405	)
Preferred dividends		(12,162	)		(12,162	)		(36,487	)		(36,487	)

Net loss available to common stockholders	$	(111,394	)	$	(1,005,402	)	$	(134,066	)	$	(1,612,892	)

Net loss per share of
common stock:
Basic and diluted	Nil			$	(0.01	)	Nil			$	(0.02	)

Weighted average shares outstanding:
Basic and diluted		106,117,844			73,240,218			101,642,048			71,033,733

United States Antimony Corporation and Subsidiaries
Condensed Consolidated Statement of Changes in Stockholders' Equity
For the periods ended September 30, 2021 and September 30, 2020
(Unaudited)

	Total Preferred Stock				Common Stock				Additional						Total
									Paid			Accumulated			Stockholders'
Three months ended September 30,2021	Shares		Amount		Shares		Amount		In Capital			Deficit			Equity

Balances, July 1, 2021		2,678,909	$	26,788		106,005,234	$	1,060,051	$	63,883,227		$	(32,649,141	)	$	32,320,925
Issuance of common stock to Directors (Note 10)		-		0		112,610		1,126		108,874			0			110,000
Net loss		-		0		-		0		0			(99,232	)		(99,232	)
Balances, September 30, 2021		2,678,909	$	26,788		106,117,844	$	1,061,177	$	63,992,101		$	(32,748,373	)	$	32,331,693

	Total Preferred Stock				Common Stock				Additional						Total
									Paid			Accumulated			Stockholders'
Three months ended September 30,2020	Shares		Amount		Shares		Amount		In Capital			Deficit			Equity

Balances, July 1, 2020		2,678,909	$	26,788		70,206,899	$	702,068	$	37,295,259		$	(29,947,155	)	$	8,076,960
Issuance of common stock and warrants for cash		-		0		5,742,858		57,428		1,952,572			0			2,010,000
Common stock issuance costs		-		0		-		0		(196,932	)		0			(196,932	)
Net loss		-		0		-		0		0			(993,240	)		(993,240	)
Balances, September 30, 2020		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(30,940,395	)	$	8,896,788

	Total Preferred Stock				Common Stock				Additional						Total
									Paid			Accumulated			Stockholders'
Nine months ended September 30,2021	Shares		Amount		Shares		Amount		In Capital			Deficit			Equity

Balances, January 1, 2021		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(32,650,794	)	$	7,186,389
Issuance of common stock for cash (Note 10)		-		0		26,290,000		262,900		24,734,100			0			24,997,000
Issuance of common stock to Directors (Note 10)		-		0		112,610		1,126		108,874			0			110,000
Common stock issuance costs (Note 10)		-		0		-		0		(1,654,820	)		0			(1,654,820	)
Common stock issued upon exercise of warrants (Note 10)		-		0		3,765,477		37,655		1,753,048			0			1,790,703
Net loss		-		0		-		0		0			(97,579	)		(97,579	)
Balances, September 30, 2021		2,678,909	$	26,788		106,117,844	$	1,061,177	$	63,992,101		$	(32,748,373	)	$	32,331,693

	Total Preferred Stock				Common Stock				Additional						Total
									Paid			Accumulated			Stockholders'
Nine months ended September 30,2020	Shares		Amount		Shares		Amount		In Capital			Deficit			Equity

Balances, January 1, 2020		2,678,909	$	26,788		69,661,436	$	696,614	$	37,107,730		$	(29,363,990	)	$	8,467,142
Issuance of common stock upon exercise of warrants		-		0		250,000		2,500		60,000			0			62,500
Issuance of common stock to Directors		-		0		295,463		2,954		127,529			0			130,483
Issuance of common stock and warrants for cash		-		0		5,742,858		57,428		1,952,572			0			2,010,000
Common stock issuance costs		-		0		-		0		(196,932	)		0			(196,932	)
Net loss		-		0		-		0		-			(1,576,405	)		(1,576,405	)
Balances, September 30, 2020		2,678,909	$	26,788		75,949,757	$	759,496	$	39,050,899		$	(30,940,395	)	$	8,896,788

	September 30, 2021		September 30, 2020
Warrants		12,489,922		6,194,899
Convertible preferred stock		1,751,005		1,751,005
Total possible dilution		14,240,927		7,945,904

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Antimony	$	1,284,969	$	477,273	$	3,371,015	$	2,509,183
Zeolite		693,008		481,126		1,929,383		1,653,201
Precious metals		73,736		48,832		280,164		173,029
	$	2,051,713	$	1,007,231	$	5,580,562	$	4,335,413

	For the Three Months Ended						For the Nine Months Ended
Sales to	September 30,			September 30,			September 30,			September 30,
Largest Customers	2021			2020			2021			2020
Company A		288,640			114,075			778,211			404,447
Company B		581,609			105,865			1,284,206			0
Company C		0			0			518,226			523,660
Company D		225,800			0			225,800			0
Company E		0			131,360			0			345,899
	$	1,096,049		$	351,300		$	2,806,443		$	1,274,006
% of Total Revenues		53.42	%		34.88	%		50.29	%		29.39	%

Largest
Accounts Receivable	September 30, 2021			December 31, 2020
Company B	$	222,100		$	0
Company F		110,864			0
Company G		54,400			68,055
Company H		0			21,619
Company I		0			16,600
Company J		0			12,255
	$	387,364		$	118,529
% of Total Receivables		53.60	%		49.67	%

	September 30,		December 31,
	2021		2020
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$	0	$	66,800
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.		0		17,480
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.		0		2,146
		0		86,426
Less current portion		-		(52,122	)
Long-term portion	$	0	$	34,304

	Number of Warrants			Exercise Prices
Balance December 31, 2019		702,041		$	0.25 - $0.65
Issued		5,742,858		$	0.46
Exercised		(250,000	)	$	0.25
Balance December 31, 2020		6,194,899		$	0.46 - $0.65
Issued		10,060,500		$	0.46- $0.85
Exercised		(3,765,477	)	$	0.46 - $0.65
Balance September 30, 2021		12,489,922		$	0.46 - $0.85

Warrants		Exercise Price		Expiration Date
	143,707	$	0.65	2022
	2,285,715	$	0.46	2026
	9,256,500	$	0.85	2026
	804,000	$	0.46	2026
	12,489,922