Initial Report September 22nd, 2008: Analyst: Lisa Springer, CFA

BEACON EQUITY RESEARCH
Analyst: Lisa Springer, CFA

Initial Report
September 22nd, 2008
UNCO daily 09/17/08

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Unico, Inc. 0.00

8880 Rio San Diego Drive, 8th Floor volume
San Diego, California 92108 60
Phn. 619-209-6124 40
Millions
Fax. 619-209-6125 20
www.unicomining.com 0
Jul Aug Sep
Market Data
Symbol / Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OTC . BB: UNCO
Current Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$0.07
Price Targe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.30 .
Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Speculative
. . . . . . . . . . . . Buy
Outstanding Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.4M
Market Cap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $731K
Average 3M Volume. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NA
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
Please carefully read the risks and disclaimer section at the end of this report.
Initial Report
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.
Investment Highlights
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.
Unico, Inc. (OTC BB: UNCO) 2

Initial Report
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-

Initial Report
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.
Property Overview
Exhibit 1: Unico’s mine properties
• 1992 – Lease agree- • 1993 - Company incor- • 2006 – Deer Trail

ment entered porated and acquired 26 Mining Co. enters into
• 2005 – Approval for patented mining claims, mining lease with Joel
expansion into large which were mined for Johnson, covering Clyde
mining company silver lead and zinc and Crown Point Claims
• 2007 – Completed elec- • 2004 – Exploration • 2006 – Deer Trail
trical substation to supply work at the Silver Bell Mining Co. enters agree-
power for mill and mine mine begins ment for non-patented
• 2007 – Purchase of all • 2006 – Preliminary JV mining claims lease for
claims covered by the agreement with Polymet 70 claims, covering
Deer Trail Lease Company, LLC, which 1,500 acres
• 2008 – Completed re- was not further executed • 2006- – Initial explora-
construction of mill facil- tion and geological study
ity conducted at Clyde and
• 2008 – Conducted un- Crown Point claims
derground mine mainte-
nance work in anticipa-
tion of mining
Source: Company Website
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-

Initial Report
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.
Exhibit 2: Deer Trail Mine leases and agreements
Comprises 28 Contract with Lang Contract with Agreement with Lease of Clyde & Contract with Atlas
patented claims, 5 Exploratory Drilling Connors Drilling for Behre Dolbear & Co Crown point claims, Minig Co for
patented mill sites underground for geological Another underground
and 171 unpatented Approval granted by diamond core drill services, consulting non-patented lease maintenance, clean
claims the state for and technical advise with 70 claims up and ground
expansion into large support
Mines currently in scale mining Purchase of all
operation include operations claims covered by Reconstruction work
Deer Trail Mines, Deer Trail lease of floatation circuit
PHT Tunnel, Carisa and testing
and Lucky Boy
Mines
Source: Company Website
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.

Initial Report
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.
Plan of 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;

Initial Report
• 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.
Mining Industry Outlook
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.
Exhibit 3: Value of Utah mineral production
Source: Utah Legislative Directory
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.

Initial Report
$836.15 per ounce and continued to climb, reaching $1000 per ounce in 2008. Merrill Lynch recently raised its
Exhibit 4: Composition of mineral production in Utah in 2007
Source: Utah Legislative Directory
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.
Exhibit 6: Average prices of gold and silver
Source: Thompson
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

Initial Report
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.
Exhibit 7: Average prices of copper, lead and zinc
Source: Thompson
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.

Initial Report
Exhibit 8: Changes in metal prices
Source: Thompson and Beacon Research
Competitive Analysis
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.

Initial Report
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.
Financial Analysis and Outlook

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

Initial Report
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.

Initial Report
Source: Reuters,
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.

Initial Report
Risk 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.

Initial Report
Management
Ray C. Brown Ray Brown served as CEO of Unico from 1983 to 2004. Mr. Brown
Chairman 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 Kiyoshi Kasai has been a director of the Company since 1987. He is an
Director 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 A. Lopez Mark Lopez has 17 years of experience in corporate management,

CEO 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 Wayne M. Ash has served as president of Unico since February 2003.
President 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.

Initial Report
Key mining operations personnel 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.

Initial Report
Disclaimer
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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
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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).

Initial Report September 22nd, 2008: Analyst: Lisa Springer, CFA

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Initial Report September 22nd, 2008: Analyst: Lisa Springer, CFA

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BEACON EQUITY RESEARCH

Analyst: Lisa Springer, CFA

UNCO daily 09/17/08

Unico, Inc. 0.00

Jul Aug Sep

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

Unico, Inc. (OTC BB: UNCO) 2

Production value benefits from soaring precious metal prices

Capital infusion accelerates Unico’s progress towards revenue generation

Addition of seasoned Senior Geologist to Deer Trail Mine team

Unico’s management team is led by Chairman Ray Brown,

Unico, Inc. (OTC BB: UNCO) 3

• 1992 – Lease agree- • 1993 - Company incor- • 2006 – Deer Trail

Source: Company Website

Deer Trail Mine

Unico, Inc. (OTC BB: UNCO) 4

Exhibit 2: Deer Trail Mine leases and agreements

Source: Company Website

Silver Bell Mine

Unico, Inc. (OTC BB: UNCO) 5

Bromide Basin lease not renewed

• Continue with sampling and analysis of mineralized

• Expand the metallurgical research department at the

• Upgrade the mine infrastructure and begin underground

• Continue to upgrade and complete the re-construction of

• Upgrade the crushing facility at the upper Deer Trail

Unico, Inc. (OTC BB: UNCO) 6

• Begin milling and processing operations;

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

Mining Industry Outlook

Exhibit 3: Value of Utah mineral production

Source: Utah Legislative Directory

Unico, Inc. (OTC BB: UNCO) 7

Exhibit 4: Composition of mineral production in Utah in 2007

Source: Utah Legislative Directory

Precious metal prices

Unico, Inc. (OTC BB: UNCO) 8

Exhibit 7: Average prices of copper, lead and zinc

Unico, Inc. (OTC BB: UNCO) 9

Exhibit 8: Changes in metal prices

Source: Thompson and Beacon Research

Golden Phoenix Minerals Inc (OTCBB: GPXM)

Quadra Mining Ltd (TSX: QUA)

Unico, Inc. (OTC BB: UNCO) 10

Chief Consolidated Mining Company (OTCPK: CFCM)

Financial Analysis and Outlook

Liquidity and capital resources

Unico, Inc. (OTC BB: UNCO) 11

Unico, Inc. (OTC BB: UNCO) 12

Unico, Inc. (OTC BB: UNCO) 13

Mining is a risky business with a long gestation period

Metal prices may fall

Capital infusion needed

Derivatives lawsuit filed in August 2008

Factors beyond Unico’s control

Default of senior securities.

Unico, Inc. (OTC BB: UNCO) 14

Mark A. Lopez Mark Lopez has 17 years of experience in corporate management,

Unico, Inc. (OTC BB: UNCO) 15

Dean Misantoni, Unico consulting geologist, has extensive experi-

Edgar Blanco, the Company’s senior metallurgist, is experienced in

Dr. Richard Kennedy holds a doctorate in economic geology, petrol-

Unico, Inc. (OTC BB: UNCO) 16