Unico, Inc

BEACON EQUITY RESEARCHAnalyst: Lisa Springer, CFAInitial Report September 22nd, 2008

Unico, Inc.8880 Rio San Diego Drive, 8th FloorSan Diego, California 92108

Phn. 619-209-6124 Fax. 619-209-6125

www.unicomining.com

Company Introduction

Unico Inc. (OTC BB: UNCO) explores for, develops and produces gold, sil-ver, lead, zinc and copper concentrates from several mining properties locat-ed in Utah including the Deer Trail Mine the Silver Bell Mine, the Clyde and the Crown Point mineral claims, as well as 70 additional mining claims. The Company is currently focused on completing improvements and upgrades to the floatation circuit at its mill and processing facility at the Deer Trail Mine, which will enable ore processing to resume.

The Deer Trail Mine, located in Marysvale, Utah was purchased by the Com-pany from Crown Mines LLC, and has been the subject of two recent explor-atory drilling programs, a reverse circulation drilling program in 2004 and a diamond core drilling program in 2005. Unico has received approval to ex-pand its existing small mining project at the Deer Trail Mine into a large-scale mining operation. A key aspect of the plan is completing upgrades to the Deer

Market Data

UNCO daily 09/17/08

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Please carefully read the risks and disclaimer section at the end of this report.

Symbol / Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Current Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Price Targe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Outstanding Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Market Cap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Average 3M Volume. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OTC BB: UNCO$0.07$0.30

Speculative Buy10.4M

$731KNA

Analyst: Lisa Springer, CFAInitial Report September 22nd, 2008

Unico, Inc. (OTC BB: UNCO) 2

Trail mill so that Unico can begin processing its existing stockpiles of precious metal-bearing ore. In July 2008, Unico completed initial testing and made additional improvements to the mill’s floatation circuit. The Company anticipates starting up ore processing operations during the second half of 2008. Unico has also added an experi-enced senior geologist to the Deer Trail Mine who will oversee core sampling and analysis at the Deer Trail Mine in preparation for a resumption of underground mining operations later this year. In addition, Unico has raised more than $1.18 million in new capital year-to-date to fund upgrades to the mill and processing facility.

Once reconstruction and testing of the floatation circuit is complete, Unico expects to begin generating revenues from ore processing operations. The Company targets mill production commencing at 75 tons per day and rising to 177 tons per day by January 2009. Assuming this timetable is followed, Unico anticipates generating revenues exceeding $2.5 million during the five-month period ending February 2009. By August 2009, the Company ex-pects to increase production to 222 tons per day, or approximately 90% of the mill’s 250 ton total rated capacity. Assuming production ramps up as planned, Unico expects to triple FY 2010 revenues from processing opera-tions to a $7.6 million range.

Revenues from ore processing likely to commence in second half of 2008

Unico has secured the necessary licenses and approvals to expand its Deer Trail Mine operations and is complet-ing work on the mill floatation unit, which will enable ore processing to resume. The Company anticipates it will begin processing its existing stockpile of precious metal-bearing ore during the second half of 2008 at an initial rate of 75 tons per day, with production rising to 100 tons per day at year-end 2008 and 177 tons per day by Feb-ruary 2009. The cash flows generated from ore processing will provide Unico with funding for ramping up min-ing activities at its Deer Trail Mine and Silver Bell Mine, further enhancing revenue generating opportunities.

Deer Trail and Silver Bell mines scheduled to commence production within 12 months

Although mineral deposits estimates are not available for either mine, the Deer Trail Mine has produced signifi-cant quantities of gold and other minerals in the past and the Silver Bell Mine was believed to contain bonanza grades of silver, gold, lead and zinc. The Deer Trail claims total 3,275 acres and includes working interests in the Deer Trail Mine, the PTH Tunnel, and the Carisa and Lucky Boy Mines. It consists of 26 patented claims (505 acres), six patented mill sites (30 acres) and 170 unpatented claims (2,740 acres) in the Deer Trail Mountain-Alunite Ridge mining area of west central Utah about 165 miles south-southwest of Salt Lake City.

The initial Deer Trail claim dates back to 1870 and mining activity was almost continuous until 1981. By as early as 1911, an estimated $17 million in ore had been hauled from the mine at a time when gold sold for $20 per ounce. Noranda and Phelps Dodge have done work on this property and Arundel Mining shipped several million dollars worth of ore containing gold, silver, lead and other metals from the mine. Using current mineral values, over $290 million has been taken from the Deer Trail properties to date. Phelps Dodge and later Noranda believed that the Deer Trail/PTH Tunnel geology was indicative of a major ore occurrence of molybdenum and copper.

Investment Highlights


Analyst: Lisa Springer, CFAInitial ReportSeptember 22nd, 2008

Unico, Inc. (OTC BB: UNCO)

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Investment Highlights

The Silver Bell Mine includes 29 patented mine claims and three patented mill sites covering 370 acres located in American Fork Canyon in Utah County, Utah. The claims that are permitted but currently inactive are comprised of old mining properties containing vein-hosted ores. Unico became interested in the Silver Bell Mine because the ore composition is similar and compatible with the ore of the Deer Trail Mine.

Production value benefits from soaring precious metal prices

Unico expects to produce gold, silver, lead, zinc and copper concentrates from its mines. Prices for precious metals such as gold and silver as well as base metals such as copper, lead and zinc have risen substantially over the past 12 months. Gold prices have soared from around $840 per ounce in 2007 to exceed $1,000 per ounce in 2008 and metal analysts expect prices to remain high. Merrill Lynch recently raised its outlook for gold prices to average $925 per ounce in 2008 and $1,000 per ounce in 2009. Silver prices are forecast to rise 60% and hit $30 per ounce by year-end 2008. Lead and zinc prices are also expected to climb. Higher metals prices benefits Unico by increasing the value of its processed ore and mineral deposits.

Capital infusion accelerates Unico’s progress towards revenue generation

The Company has raised proceeds of $1.7 million so far in 2008 through the sale of convertible debentures, including $300,000 received in August.. These funds have been used to upgrade the processing mill floatation circuit and return it to production-ready status. Since its inception, Unico has raised a total of approximately $19 million.

The Company also recently completed a reverse stock split that it believes will enhance the visibility of its shares and position Unico for increased investor interest once revenues from ore processing commence later this year.

Addition of seasoned Senior Geologist to Deer Trail Mine team

Unico’s management team is led by Chairman Ray Brown, CEO Mark Lopez and President Wayne Ash. Brown was CEO of Unico for many years and has served as president and/or a director of Ecotech Corp. (1963-1971), Wasatch Mineral and Construction Company (1958-1963), and Courtesy Finance Corp. (1955-1958). He also held senior positions with Hometown Finance Corp., Pioneer Finance and Thrift Company, and Board of Energy and Corrosion Research Corp. Lopez has 17 years of corporate finance and management experience. Prior to joining Unico, he was a consultant to the Company closely involved in stra-tegic planning, operations and key developments. He pre-viously served as vice president of investments for Ashton Capital Management Inc. Mr. Ash has over 40 years of min-ing industry experience and has evaluated over 100 mining properties during his career.

The Company recently appointed Alex Scarbrough as senior geologist for Deer Trail Mining Company. Scar-brough has 33 years of mineral exploration experience and previously served as senior geologist for Behre Dol-




bear, which was contracted to provide geological services to the Deer Trail Mine. Most recently, Scarbrough served as president of Rush Creek Mining Company. He also worked for the Bureau of Land Management, the Colorado Geological Survey, BHP Minerals International Exploration Inc., Noranda Exploration, USMX, West-mont Mining and several other major mining companies.

Deer Trail Mine

The Deer Trail claims total 3,275 acres that include working interests in the Deer Trail Mine, the PTH Tunnel, and the Carisa and Lucky Boy Mines. They include 26 patented claims (505 acres), six patented mill sites (30 acres) and 170 unpatented claims (2,740 acres) in the Deer Trail Mountain-Alunite Ridge mining area, in the Marysvale volcanic field of west central Utah, about 165 miles south-southwest of Salt Lake City.

The initial Deer Trail claim dates back to 1870 and mining activity was almost continuous until 1981. By 1911, an estimated $17 million in ore had been hauled from the mine at a time when gold sold for $20 per ounce. Several major mining companies, including Noranda and Phelps Dodge, have done work on the property. Arundel Min-Please carefully read the risks and disclaimer section at the end of this report.

Property Overview

• 1992 – Lease agree-ment entered• 2005 – Approval for expansion into large mining company• 2007 – Completed elec-trical substation to supply power for mill and mine • 2007 – Purchase of all claims covered by the Deer Trail Lease• 2008 – Completed re-construction of mill facil-ity• 2008 – Conducted un-derground mine mainte-nance work in anticipa-tion of mining

• 1993 - Company incor-porated and acquired 26 patented mining claims, which were mined for silver lead and zinc• 2004 – Exploration work at the Silver Bell mine begins• 2006 – Preliminary JV agreement with Polymet Company, LLC, which was not further executed

• 2006 – Deer Trail Mining Co. enters into mining lease with Joel

Johnson, covering Clyde and Crown Point Claims• 2006 – Deer Trail Mining Co. enters agree-ment for non-patented mining claims lease for 70 claims, covering 1,500 acres• 2006- – Initial explora-tion and geological study conducted at Clyde and Crown Point claims

Source: Company Website

Exhibit 1: Unico’s mine properties



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ing, which is owned by a member of the DuPont family, shipped several million dollars worth of ore containing gold, silver, lead and other metals from the mine. Phelps Dodge and later Noranda believed that the Deer Trail/PTH Tunnel geology was indicative of a major ore occurrence of molybdenum and copper. For several years, these companies budgeted more than $250,000 per year for further exploration and drilling of the Deer Trail Mine. Mining operations ceased in 1981 due to a lack of mill and smelter recipients.

Through its Deer Trail Mining Company subsidiary, Unico purchased the mining claims for $4.0 million. The purchase price was paid over a three year period with the final payment being made in July of 2007. The seller, Crown Mines LLC, retains a perpetual royalty interest on minerals taken from the Deer Trail Mine claims.

The Deer Trail Mine has been the subject of two exploratory drilling programs, a reverse circulation drill pro-gram and a diamond core drilling program. Only two known mineralized horizons have been explored to date. Although the underlying formations are thought to be favorable horizons for mineralization, there has been no additional drill testing. Over the next 12 months, Unico plans to complete analysis of core samples taken from the Deer Trail Mine, upgrade the mine infrastructure and begin underground mining activities.

Silver Bell Mine

In 2000, Unico acquired all the outstanding shares of Silver Bell Mining Company for three million shares of Unico common stock. The purchase included 29 patented mine claims and three patented mill sites covering 370 acres located in American Fork Canyon in Utah County, Utah. The claims, which are permitted but currently inactive, are comprised of old mining properties containing vein-hosted ores thought to contain bonanza grades of silver, along with gold, lead and zinc. Unico became interested in the Silver Bell Mine because the ore compo-sition is similar and compatible with the ore of the Deer Trail Mine.


Property Overview

Comprises 28patented claims, 5

patented mill sites and 171 unpatented claims

Mines currently inoperation includeDeer Trail Mines,

PHT Tunnel, Carisa and Lucky Boy Mines

Contract with Lang Exploratory Drilling

Approval granted by the state for expansion into large scale mining operations

Contract with Connors Drilling for

underground diamond core drill

Agreement with Behre Dolbear & Co

for geological services, consulting

and technical advise

Lease of Clyde & Crown point claims,

Another non-patented lease

with 70 claims

Purchase of all claims covered by Deer Trail lease

Contract with Atlas Minig Co for underground maintenance, clean up and groundsupport

Reconstruction work of floatation circuit and testing

Exhibit 2: Deer Trail Mine leases and agreements

Source: Company Website



Some exploration work was conducted through 2004; Unico plans to conduct a feasibility study further analyz-ing the claim this year prior to commencing mining activities. Unico may seek a mining partner to jointly de-velop the Silver Bell Mine. The Company initialized an agreement for a development joint venture with Polymet Company LLC in 2006, but the parties failed to reach a definitive agreement.

Once production begins, the Company plans to transport ores mined from the Silver Bell Mine to the Deer Trail Mine site for further crushing and milling.

Bromide Basin lease not renewed

Unico also held leases covering six fully permitted patented claims and 21 located mining claims covering 400 acres of the Bromide Basin in the Henry Mountain mining district of Utah. The Company allowed the leases to expire in October 2007 based on its conclusion that the mine was not suitable for large-scale mining operations.

The Company’s near-term growth strategy focuses on completing upgrades to its Deer Trail mill and process-ing facility that will enable ore processing to resume and further developing its Deer Trail and Silver Bell mines. Acquisitions of additional mining claims may also be considered. Unico has already raised $1.7 million of new capital in 2008, which it used to complete upgrades to the Deer Trail mill. The Company plans to raise an addi-tional $3.5 million next year, which will be used to fund the following activities:

• Complete certification by ALS Chemex independent lab and receive final report from Behre Dolbear consult-ing firm regarding the logging and shipment of core samples extracted from the exploratory drilling program at Deer Trail Mine;

• Continue with sampling and analysis of mineralized rock samples, stockpiles and dump materials from the Deer Trail Mine;

• Expand the metallurgical research department at the Deer Trail Mine and Mill Facility and purchase additional lab equipment for metallurgical purposes;

• Upgrade the mine infrastructure and begin underground mining activities at the Deer Trail Mine;

• Continue to upgrade and complete the re-construction of the existing Deer Trail mill;

• Upgrade the crushing facility at the upper Deer Trail Mine and continue screening ore dumps;


Plan of Operations

Mining Industry Outlook



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• Begin milling and processing operations;

• Acquire new mining equipment to improve Deer Trail Mine productivity;

• Survey and map the Clyde and Crown Point mining claims, with improvements to the property and potential underground and surface exploratory drilling on the claims; and

• Commence a feasibility study in the summer of 2008 evaluating the potential of the Silver Bell Mine claims.

Accomplishing this 12 month plan depends on the Company’s ability to raise approximately $2.5 million in debt or equity financing over the next few months.

Unico’s mining operations are located in Utah. Mining is an important part of Utah’s economy. Minerals mined in this state include copper, gold, silver, molybdenum, zinc, lead and beryllium.

The value of Utah’s mineral production has grown from $2.3 billion in 2005 to approximately $4.8 billion in 2007. Strong growth in production value reflects rising prices for metals and increased coal mining.


Plan of Operations

Mining Industry Outlook

Exhibit 3: Value of Utah mineral production

Source: Utah Legislative Directory



$836.15 per ounce and continued to climb, reaching $1000 per ounce in 2008. Merrill Lynch recently raised its


Utah ranks fourth nationwide based on the value of its non-fuel minerals. Job growth in Utah’s mining sector rose 11.9% in 2007. Mining-related exports comprised 49% of the state’s total exports and were valued at $3.5 billion last year.

Precious metal prices

Gold is used to make jewelry, as an input in industrial applications and as an investment vehicle. During 2007, gold demand increased 4.3% to 3,547 tons from 3,400 tons in 2006. Gold prices rose 31.8% in 2007 to a record

Exhibit 4: Composition of mineral production in Utah in 2007

Source: Utah Legislative Directory

Exhibit 6: Average prices of gold and silver

Source: Thompson



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outlook for gold prices, and expects prices to average $925 per ounce in 2008 and $1,000 per ounce in 2009.

Similar to gold, silver is used as an investment product and a safe haven against inflation and a weak U.S. dol-lar. Although only a small portion of silver demand comes from investors, commercial demand for this metal is growing due to applications in jewelry, electrical conduction and photographic film. Gold and silver prices often move parallel to each other. Silver prices have climbed 106% in the last two and a half years and have risen 33% since mid-December 2007. Analysts forecast silver prices will reach $30 per ounce by year-end 2008, 60% higher than current levels.

The basic uses for lead are in lead acid batteries for vehicles, emergency systems in hospitals and industrial bat-teries. The International Lead Study Group forecasts consumption of refined lead metal will increase 4.1% in 2008 to 8.67 million tons.

Zinc is primarily used as a protective coating over steel to prevent corrosion. According to the International Zinc Study Group, worldwide zinc consumption is expected to rise 5.1% in 2008 but less than zinc production, which is forecast to rise 9.5% this year. Although zinc prices are subdued in 2008, they are expected to rebound next year due to strong demand from China and other emerging economies.


Exhibit 7: Average prices of copper, lead and zinc

Source: Thompson




Unico competes with other mining companies such as Golden Phoenix, Quadra Mining Ltd. and Chief Consoli-dated Mining Company for properties, financing, employees and other resources. Unico believes its primary competitive advantage is its multi-grade mineral projects, which give it greater flexibility and diversification. The Company also competes with major mining companies that have operated around the Deer Trail Mine such as Goldfields Ltd., Noranda and Phelps Dodge.

Golden Phoenix Minerals Inc (OTCBB: GPXM)

Golden Phoenix Minerals Inc. explores for, develops and produces gold, silver and molybdenum from mines in Nevada. It was founded in 1997 and is based in Sparks, Nevada. The company’s prime property is the Ash-down molybdenum project, a new molybdenum mine. Golden Phoenix owns a 60% interest in this mine. Other properties include the Mineral Ridge Mine and the Northern Champion property. Golden Phoenix has proved molybdenum reserves of 2.77 million pounds and probable reserves of 1.07 million pounds.

Quadra Mining Ltd (TSX: QUA)

Quadra Mining Ltd. mines for copper and other base metals in the United States and internationally. Through its 100% owned subsidiary, Robinson Nevada Mining Company (RNMC), Quadra owns and operates the Robinson mine, an open pit copper mine, with gold and molybdenum by-product credits located near Ely, Nevada. It also holds a 100% interest in the Carlota copper project and has an option to purchase the Sierra Gorda project, a late-stage exploration property near Antofagasta, Chile. Additionally, through a subsidiary, the company holds rights to the Malmbjerg molybdenum project in Greenland. In 2007, the Robinson mine produced approximately 134.2 million pounds of copper and 108,000 ounces of gold in concentrates.

Exhibit 8: Changes in metal prices

Source: Thompson and Beacon Research

Competitive Analysis



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Chief Consolidated Mining Company (OTCPK: CFCM)

Chief Consolidated Mining Company has 16,000 acres of mining properties and real estate near Eureka, Utah. Of its 16,000 acres of patented mining land, approximately 6,000 acres are up for sale. Chief’s principal subsid-iary is Tintic Utah Metals LLC (Tintic), in which it owns a 75% interest. Its other subsidiary is Chief Gold Mines Inc. Although the company owns interests in the Burgin Mine and the Trixie Mine, neither of these mines is in production.

Until recently, Unico has been a development-stage business. The Company has not recorded revenues over the past two years. However, Unico anticipates commencing ore processing operations at its Deer Trail mill in the second half of 2008 and generating revenues from mineral sales this year.

The Company’s operating expenses totaled approximately $2.1 million in FY 2008 and were up $0.26 million from the previous fiscal year. Higher expenses reflect drilling, exploration and maintenance expenses associated with the rehabilitation of the PTH tunnel at the Deer Trail Mine. The Company expects to begin underground mining operations at the Deer Trail Mine later this year.

For the fiscal year ended February 29, 2008, the Company recorded a net loss of $16.0 million (approximately $0.005 per share) from ongoing operations. Of this loss, $13.1 million reflects interest expense and loss on settle-ment of debt associated with derivative expenses from financing operations. For the fiscal year ended Febru-ary 28, 2007, the Company recorded an $18.3 million net loss. The reduced FY 2008 net loss is because of a $5.4 million decline in loss on settlement of debt, partially offset by a $2.4 million increase in interest expense and a $264,128 rise in operating expenses.

Liquidity and capital resources

At fiscal year-end 2008, Unico had assets totaling $6.6 million, which included prepaid expenses of $20,000 but no cash balances.

So far in 2008, the Company has raised $1.7 million in capital to fund upgrades to its mill and related activities. This amount includes $300,000 in financing received in August through the sale of new convertible debentures to Moore Investment Holdings. Since its inception, Unico has raised a total of approximately $19 million. The Company plans to raise additional capital in FY 2009 which will be used to fund its 2008-2009 business plan, primarily through debt instruments and small amounts of equity financing. There is no guarantee, however, that Unico will succeed in raising the needed funds. The Company estimates it will need at least $2.5 million in additional capital to fund planned business operations over the next 12 months.

Revenue outlook

Unico expects to commence ore processing operations at its Deer Trail mill in the second half of 2008 once up-grades and improvements to the mill’s floatation circuit are completed. The Company anticipates commencing production at approximately 75 tons per day, with production climbing to 100 tons per day at year-end and


Competitive Analysis

Financial Analysis and Outlook




reaching 177 tons per day by February 2009. Initially, the mill will be processing existing ore stockpiles. By next year, the Company anticipates processing ore produced from the Deer Trail Mine and possibly the Silver Bell Mine.

Assuming five months of processing at projected capacity levels and recent metals prices, Unico anticipates gen-erating FY 2009 revenues in a $2.5 million range. Revenues will be derived primarily from silver and gold sales with smaller contributions from lead and zinc. Spending in FY 2009 will be about the same as FY 2008 levels with the exception of laboratory spending, which is expected to double. The Company projects a $5.0 million net loss in FY 2009 mainly as a result of costs associated with accounting for derivative instruments.

In early FY 2010, Unico expects ore processing at a rate of 177 tons per day. Production is forecast to reach a sustainable rate of 222 tons per day by mid-year. The mill’s overall rated capacity is 250 tons per day. Assuming 12 months of production at planned levels and recent metals prices, Unico anticipates FY 2010 revenues will rise to a $7.6 million range. Cash flows from mill processing will support further development of the Deer Trail and Silver Bell claims as well as additional property acquisitions. Unico targets 20% average annual growth between FY 2011 and FY 2013 and anticipates reaching operating breakeven in FY 2010.

Valuation

Unico considers its closest peers to be Golden Phoenix and Quadra Mining. While no comparative valuation information is available on Quadra Mining, Golden Phoenix was recently trading at a 1.3 times Price/Sales mul-tiple. Large gold mining companies with established reserves such as Barrick Gold were recently trading at 5.6 times Price/Sales multiples and the overall precious metal mining group was trading at a 12 times forward Price/Sales multiple.



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Due to its earlier development stage and lack of quantifiable mineral reserves, we think Unico should trade at the lower end of the precious metals mining industry range at a 2.0 times forward Price/Sales multiple. We multiply our FY 2010 $7.6 million revenue estimate by a 2.0 forward Price/Sales multiple to obtain a market capitalization target, then divide the resulting amount by 50 million shares to derive our 30 cents share price target. At present, Unico has 10.4 million shares outstanding but we anticipate a significant increase in the share count and dilution resulting from future equity sales. Accordingly, we are initiating coverage of Unico Inc. with a Speculative Buy rating and a 30 cents price target.

While we believe the Company is on-track to begin generating meaningful revenues from ore processing later this year, we caution investors that Unico must overcome many obstacles to achieve its longer-term growth goals. The Company must raise significant additional financing to fund its development plans. In addition, there is no guarantee that exploitable mineral deposits will be found at Unico’s Deer Trail and Silver Bell mines. Other risk factors are cited below.

Source: Reuters,



ManagementRisk Factors

Mining is a risky business with a long gestation period

Mineral exploration involves high risks. Very few properties that are explored eventually develop into produc-ing mines. In addition, exploration costs are high and developing a producing mine can require several years and millions of dollars of investment.

Metal prices may fall

Unico’s revenues will be largely dependent on metal prices and prices often fluctuate on the world’s commodity markets. A substantial drop in silver or gold prices would likely adversely impact Unico’s prospects and hinder its ability to further develop its operations.

Capital infusion needed

Unico has little cash and a stockholders’ equity deficit. The Company will need to raise additional funds for its exploration and development activities. We anticipate future equity sales will result in considerable dilution.

Derivatives lawsuit filed in August 2008

A lawsuit alleging misconduct in connection with derivative convertible debentures issued by the Company to third parties was filed in the San Diego Superior Court in August. The lawsuit claims that, although the deben-tures were convertible to common shares at a price equal to 50% of the prior day’s closing price, Unico entered into settlement agreements with creditors requiring it to issue shares at conversion prices of 8% to 20%. Unico management has responded that the suit is without merit and indicated their confidence that they will prevail in any legal action.

Intense competition

Unico must compete with many larger mining companies for claims, financing and other resources. Many of these companies are better capitalized and have more established track records for mineral exploration and production.

Factors beyond Unico’s control

The Company is subjected to government regulations and legal uncertainties. Floods, cave-ins or other natural disasters could interrupt the Company’s mining operations and result in significant unanticipated expenses.

Default of senior securities.

As of February 29, 2008, Unico had $6.3 million in convertible debentures that were due and payable. Of this amount, $4.8 million was in default. Of the remaining debentures that are due and payable, $250,000 defaulted in March, $475,000 defaulted in April, $199,854 defaulted in May and $575,000 defaulted in June.




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Management

Ray Brown served as CEO of Unico from 1983 to 2004. Mr. Brown has been president and/or a director of several companies, including Ecotech Corp. (1963-1971), Wasatch Mineral and Construction Com-pany (1958-1963) and Courtesy Finance Corp. (1955-1958). Addition-ally, he held management positions with Hometown Finance Corp., Pioneer Finance and Thrift Company and Board of Energy and Corro-sion Research Corpo. He is a graduate of the University of Utah, with a major in Banking and Finance.

Kiyoshi Kasai has been a director of the Company since 1987. He is an engineer and has held senior positions with Hughes Helicopter, Lit-ton Systems Inc., Hoffman Electronics Corp. and RCA Service Com-pany. He holds a Bachelor of Arts in mathematics from UC Berkeley and also attended the Illinois Institute of Technology (1944-1945), and UCLA in San Diego (1957-1959).

Mark Lopez has 17 years of experience in corporate management, banking and finance. Prior to becoming CEO of Unico, he served as an interim consultant to the Company, assisting in strategic planning, operations and key developments. He was also instrumental in the Company’s selection as a business development company. Mr. Lopez formerly served as vice president of investments for Ashton Capital Management Inc., and is licensed as an independent investment ad-viser. He majored in business administration with a specialization in finance at California State University in Fullerton.

Wayne M. Ash has served as president of Unico since February 2003. From 1986 to the present, Mr. Ash has served as president of Ash & Associates Consulting Ltd. Mr. Ash has evaluated over 100 mineral prospects and potential mining properties in Canada, the United States, Latin America and Asia. He has more than forty years experi-ence in the mining industry.

Ray C. BrownChairman

Kiyoshi KasaiDirector


Mark A. LopezCEO

Wayne M. AshPresident



Alex Scarbrough joined the Company as senior geologist for Deer Trail Mining Company in July 2008. He has 33 years of mining indus-try experience, was a senior geologist for Behre Dolbear, which is the company contracted to provide geological services to Unico, formerly served as president of Rush Creek Mining Company and has worked as a consultant for the Bureau of Land Management, the Colorado Geological Survey, BHP Minerals International Exploration, Noranda Exploration, USMX, Westmont Mining and other large mining con-cerns.

Dean Misantoni, Unico consulting geologist, has extensive experi-ence in underground mining and spent many years as a consulting geologist and senior geologist, prior to joining Unico.

Edgar Blanco, the Company’s senior metallurgist, is experienced in high-temperature chemical and mineral processing. He is a member of the Minerals, Metals and Materials Society and the Society of Min-ing Metallurgy and Exploration, and has published several articles on metals concentrate processing.

Dr. Richard Kennedy holds a doctorate in economic geology, petrol-ogy, mineralogy and structural geology and serves Unico as a consul-tant. He has numerous research credits to his name and has published four papers on the geology of Utah and the southwest United States.

Key mining operations personnel




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Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

The report is a service of BlueWave Advisors, LLC, a financial public relations firm that has been compensated by the companies profiled. All direct and third party compensa-tion received has been disclosed within each individual profile in accordance with section 17(b) of the Securities Act of 1933. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BlueWave Advisors, LLC, and/or its affiliated will hold, buy, and sell securities in the companies profiled. When compensated in shares, all readers should be aware that is our policy to liquidate all shares immediately. We reserve the right to buy or sell the shares of any the companies mentioned in any materials we produce at any time. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BeaconEquity.com is a Web site wholly-owned by BlueWave Advisors, LLC. BlueWave Advisors, LLC has been compensated seven thousand five hundred dollars directly from Unico Mining Inc. (UNCO) as a marketing budget to manage a comprehensive investor awareness program including the creation and distribution of this report as well as other investor relations efforts.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Ex-change Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (includ-ing, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

All decisions are made solely by the analyst and independent of outside parties or influence.

I, Lisa Springer, CFA, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Lisa Springer, MBA, CFA - Senior Analyst Lisa serves Beacon Research Partners as a research analyst. She brings to the company over 15 years experience in equity research and investment marketing. Prior to joining Beacon, Lisa worked as an equity analyst for an independent research provider. She has also held positions as investor relations of-ficer for a NYSE-listed company and director of financial analysis for a large consulting firm. Lisa earned an MBA from the University of Chicago and is a Chartered Financial Analyst (CFA).

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Unico, Inc