MEMORANDUM OF UNDERSTANDING

                     MEMORANDUM OF UNDERSTANDING

                               PARTIES:

Geosearch Inc. (hereinafter "Geosearch")
     Xxx Xxxxxxxxx, President, PO Box 5988, Missoula, Mt. 59806
     Xxxxxxx X. Xxxxxxxx, 0000 Xxxxxxxxx Xxxxx, Xxxxxx, Xx. 00000

United States Antimony Corporation (hereinafter "USAC")
     PO Box 643
     Xxxxxxxx Falls, Mt. 59873

                               RECITALS

1.   On 8 July 1987, Xxxxxxxxx entered into a Lease Agreement with Yellow
     Jacket Mines, Inc. of 000 Xx. Xxxxxx Xxxxx, Xxxx Xxxx, XX.

2.   On 19 February 1988, Xxxxxxxxx entered into an Assignment of the Lease
     Agreement by and between Geosearch and Yellow Jacket Mines, Inc to USAC.

3.   On 9 September 1994, Geosearch and USAC entered into a Security Agreement
     regarding a lawsuit filed by Geosearch against USAC, No. CV94-28.

4.   On 9 September 1994. Geosearch and USAC agreed to a Division Order with
     the First State Bank of Xxxxxxxx Falls, Mt.

                              AGREEMENT

     Now, therefore, it is agreed that USAC will issue 122,926 shares of USAC
common stock
to Xxx Xxxxxxxxx and 122,926 share of USAC common stock to Xxxxxxx X. Xxxxxxxx
for the full
and complete satisfaction of all covenants, royalties, and interest due
Geosearch, Xxx Xxxxxxxxx
and Xxxxxxx X. Xxxxxxxx under the 4 Agreements abovementioned under Recitals:

Dated this _______day of ___________, 1999
Geosearch, Inc                          United States Antimony Corporation

______________________________               /s/ Xxxx X. Xxxxxxxx
Xxx Xxxxxxxxx                                Xxxx X. Xxxxxxxx


/s/ Xxxxxxx X. Xxxxxxx
Xxxxxxx X. Xxxxxxxx