Company

US Bentonite, Inc. was formed in April 2001 to acquire, mine, process and market Bentonite and related products and technologies. Bentonite is best known for its uses in environmental and civil engineering applications, oil and gas well drilling, clumping cat litter and foundry sand. The Bentonite minerals markets are substantial and its products are in worldwide demand. The Company's minerals meet industry standards, including the American Petroleum Institute API Specification 13A. The Company's most effective competition is five companies who hold substantial reserves of high-grade Wyoming Bentonite. Purchasers and end-users have expressed a strong desire for a secure alternate source of supply.

The Company has large high-grade mineral reserves, marketing relationships with prospective customers and provides investors with a potential hedge against inflation. Wyoming Sodium Bentonite is a clean non-metallic, high-grade montmorillonite clay, considered by experts to be one of the best in the world. The industry estimates worldwide sales of Bentonite and related Bentonite products of approximately one and a half billion dollars per year.

The Company's current reserves will sustain operation of a large highly competitive plant for more than 40 years and the Company is continuing to add to its reserves. The Company will sell bulk dried and crushed materials and other products during FY2008. The Company has a processing plant in Upton, Wyoming and is moving it to a railroad siding near Casper, Wyoming.