Silver and Fertilizer from Photo Wastes John W. Whitney Founder, Chairman, President, Itronics, Inc. (OTCBB: ITRO; Frankfurt and Berlin:ITG) Eliminating Waste and Improving Crop Productivity by Converting Used Photographic Chemicals to Pure Silver and High Quality GOLD’n GRO liquid Fertilizers August 5, 2006 Presented at the Southern California Small Cap Investor Conference Orange County Airport Hilton

Itronics - Participating in the Digital Technology Revolution Image capture technology is changed –Digital capture now partially replaces film capture Kodak is no longer the dominant U.S. camera company Hewlett Packard, Sony, Motorola, Nokia, Cannon, Google, Yahoo, Shutterfly, and others have entered the industry Image print technology is changing –Inkjet printing is being marketed to replace silver halide prints Consumers are taking more pictures and buying more prints using both conventional and digital cameras Silver halide photo prints are cheaper, better quality, and more permanent than inkject photoprints; consumers continue buy price and quality

Itronics - Converts Photowaste to Pure Silver and GOLD’n GRO fertilizers Operates photochemical recycling and GOLD’n GRO liquid fertilizer manufacturing facility in Reno, Nevada In early stages of long term expansion guided by an eight part 5 year growth plan that is updated annually In 2005 completed 15 years of R & D with a cumulative expenditure of $24 million

The Markets -- Photowaste Services, Silver, and Fertilizer The U.S. Environmental Protection Agency says silver bearing photoliquids are a 100 million gallon toxic waste stream in the U.S. Management of silver bearing toxic waste streams required under U.S. EPA RCRA because silver in water is toxic to fish Regulatory authorities are encouraging development of recycling technologies that increase the amount of materials used beneficially

Photosilver Disposal in the US 55 million ounces used in photography in US Silver is the toxin that must be removed from photowaste; methods include: – Partial de-silvering on site followed by discharge to sewer –Capture at the source, de-silvering off site, transport to sanitary or hazardous waste land fill –Capture at the source, de-silvering and concentration off site followed by incineration Itronics has pioneered Silver Thiosulfate recycling, a new option for completely eliminating photowaste

Photowaste in the US Photo waste is generated by medical, dental, veterinary, and consumer photo processing Well known companies such as Walmart and Costco and many drug and grocery store chains offer digital and conventional photo print production Hauling and disposal services are provided by national Companies such as Safety-Kleen and Philip Environmental Services and by smaller regional companies

The Markets --Photowaste Services Silver and Fertilizer Using Itronics’ technology, 100 million gallons of waste photoliquids are sufficient to manufacture 200 million gallons of GOLD’n GRO fertilizers, or 1 million tons 100 million gallons of photowaste contains about 20 million ounces of silver; today worth about $220 million The combined market for Itronics services and products is approximately $1 billion in the U.S. The total fertilizer market in the U.S. is 50 million tons, a market of approximately $16 billion Itronics is targeting a 35% gross profit margin

Itronics’ Recycling Technology Advantages Removes 100% of silver and converts residuals to usable products: –Zero discharge facility – consumes all input photowastes Environmentally compatible GOLD’n GRO fertilizer manufactured from liquid portion Silver extracted from solid portion Solid residual can be converted to non-toxic tile products

Itronics’ GOLD’n GRO Fertilizer Advantages GOLD’n GRO is 1.5 to 3 times more effective than other products –More economical for farmer because less fertilizer is needed Crop production is increased by up to 40% Reduces surface run-off and ground water contamination due to reduced fertilizer requirement 90% reduction in the amount of zinc metal needed-soil residuals and accumulation eliminated

Itronics - Award Winning Creative Environmental Technology John Whitney was selected as Nevada’s Inventor of the Year One of five finalists for the 2001 Kirkpatrick Chemical Engineering Award Awarded second place (IChemE), Worldwide Environmental Awards in London, England Awarded USA Gold at the International Green Apple Environmental Awards in London, England GOLD'n GRO® was named one of the top 10 new technologies representing the best of agricultural innovation by the Canadian Association of Agri-Retailers Itronics named International Green Hero by the Green Organization, London, England

Itronics’ Business Model The company generates three basic revenue streams: Paid to transport and process photowaste $$$$$$$$$$$ Recover, refine, and sell the silver on the open market $$$$$$$$$$ Manufacture and sell GOLD’n GRO® fertilizers and Guardian –Base liquid$$$$ –Chelated Micro-nutrients$$$$ –Chelated Multi-nutrients$$$$ –Developing GOLD’n GRO® Guardian, a deer repellent fertilizer -future $$$$$

Itronics’ Intellectual Property Intellectual Property Entry Barriers EPA, State, County, and City hazardous waste permits required 15 years R & D and cumulative expenditure of $24 million to create proprietary technology 10 years to create a fully commercial fertilizer - 5 years to perfect product - 5 years to commercialize - 10 years of evaluation before obtaining clearance to use on food crops - Each fertilizer must be registered in each state where it is sold Liquid fertilizer distribution is specialized and requires long lead time to establish

Itronics’ Markets Itronics Metallurgical, Inc Photochemical Processing Photo-by-product Fertilizer Manufacturing Silver Recovery and Refining Current Applications: Cotton Fruit and Nut Trees Grapes Vegetables Silver Sales Photography X-Ray Graphic Arts Motion Picture Micro Reproduction Miscellaneous Future Applications: Alfalfa Soybeans Corn (silage) Corn (grain) Nurseries Ornamental plants Timber seedlings

Distribution of GOLD’n GRO® Chelated Liquid Fertilizers Selling bulk wholesale through distributors –Chelated liquid micronutrients - 5 products –Chelated liquid multinutrients - 6 products Chelated liquid deer repellant fertilizer - 1 product (in development for registration) Consumer Fertilizers Available through the Itronics web site Developing GOLD’n GRO as a national fertilizer brand

Itronics Recycling Services Sales Model Selling photowaste management services –Retail services to all categories of small and large photo facilities in northern Nevada and California Selling photoliquid distillation machines and sludge processing service to large military, medical, and consumer photo processing facilities throughout the U.S. Selling photoliquid recycling to medium and large environmental service companies throughout the U.S.

Beneficial Use Photochemical Recycling Photo-Imaging Processor Solution Pick-up and Delivery Services Recycling, Inc. X Treatment Plant Benefits: Improved Biosolids Compliance with NPDES Limits Rivers Itronics GOLD’n GRO ® Fertilizer Silver X Recycling, Inc. Photo/Medical/Industrial Waste 80% volume reduction Licensed Processing Facility

Itronics GOLD’n GRO fertilizer Sales Model Focus is on Bulk 5,000 Gallon Tank Truck Sales -Also sell 250 gallon totes, 55 gallon drums and 2.5 gallon bottles Have an exclusive multi-year licensing, manufacturing, and distribution agreement with Western Farm Services for 5 western states, more than 100 agriculture retail stores Western Farm Services is a wholly-owned subsidiary of Agrium, Inc. a New York Stock Exchange listed fertilizer company that is now the largest agricultural fertilizer retailer in the United States, more than 500 agriculture retail stores nation wide GOLD’n GRO Guardian will be sold in small packages through distributors in the landscape maintenance market throughout the United States

Reno Facility Capacity 35,000 square foot structure on 3.5 acres 7,500 ton annual current fertilizer capacity Capable of producing 36,000 tons of fertilizer Commenced operations in January 2000

IMI’s Production Facility We pick-up photo chemicals and distribute liquid fertilizer

Impure Silver Initial separation of silver from impurities Silver “button” with gold Glass for decorative tile

.999 Silver Pouring molten silver into molds Loaves of.999+ silver Hot work

Fertilizers

The Key is Stronger Root Growth

Field Test on Sweet Corn

Field Tests on Peppers

Oranges

One Happy Customer Dayton Valley Golf Club needed to “kick- start” its greens and tees out of winter dormancy Three days after applying GOLD’n GRO ® formulation with Iron and chelates...

Itronics GOLD’n GRO Fertilizer Divison Sales are Expanding Sales Up 46% in Q2 2006; up 40% for the first half 2006 Silver recovery capacity was tripled in early 2006 Beginning registration of GOLD’n GRO Guardian, a deer repellant fertilizer

Questions and Answers