1	Silver and Fertilizer from Photo Wastes Dr. John W. Whitney Founder, Chairman, President, Itronics Inc. (OTCBB: ITRO; Frankfurt and Berlin:ITG) Recycles Used Photographic Chemicals to Pure Silver and GOLD’n GRO liquid Fertilizers February 3, 2007 Presented at the Southern California Small Cap Investor Conference Orange County Airport Hilton
2	Safe Harbor Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.
3	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 Consumer use of returnable 35 mm cameras continues to grow - 6% growth in 2006 Image print technology is changing Inkjet printing is being marketed to replace silver halide prints Consumers are taking more pictures and buying more silver halide prints using returnable, conventional, and digital cameras Silver halide photo prints are cheaper, better quality, and more permanent than inkjet photoprints; consumers continue to buy price and quality - 7% growth in 2006
4	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 - Only fully permitted facility of this type in the United States, and probably the world 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 Current Market Cap - $4 million
5	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 waste streams required under U.S. EPA RCRA because EPA data shows silver in water is toxic to fish. Regulatory authorities are encouraging development of recycling technologies that increase the amount of materials used beneficially.
6	Photosilver Disposal in the US 55 million troy ounces of silver is used in photography in US; 20 million ounces end up in used liquid photochemicals Silver 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 converting liquid photowaste to beneficial use
7	Photowaste in the U.S.A 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.
8	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 Itronics estimates the market targeted for its 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 $14 billion
9	Itronics’ Recycling Technology Advantages Achieves complete resource use!! Only fully permitted photowaste to silver and fertilizer facility in the United States!!! Removes 100% of silver and converts residuals to usable products. 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.
10	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
11	Itronics - Award Winning Creative Environmental Technology 2000--John Whitney was selected as Nevada’s Inventor of the Year. 2001--One of five finalists for the 2001 Kirkpatrick Chemical Engineering Award 2005--Awarded second place (IChemE), Worldwide Environmental Awards in London, England 2005--Awarded USA Gold at the International Green Apple Environmental Awards in London, England 2005--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 2006- Itronics named International Green Hero by the Green Organization, London, England 2007-Dr. John Whitney named “Entrepreneur of the Year,” Agriculture/Environment by The Business Report of Northern Nevada, published by the Reno Gazette-Journal
12	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
13	Itronics’ Business Model Vertical integration generates three basic revenue streams: Paid to transport and process photowaste $$$$$$$$$$ Recover, refine, and sell the silver on the open market $$$$$$$$$$ Manufacture and sell GOLD’n GRO® fertilizers and Guardian Base liquid $$$$ Chelated Micro-nutrients $$$$ Chelated Multi-nutrients $$$$ Developing GOLD’n GRO® Guardian, a deer repellent fertilizer -future $$$$$
14	Itronics’ Markets
15	Distribution of GOLD’n GRO® Chelated Liquid Fertilizers Developing GOLD’n GRO as a national fertilizer brand The GOLD’n GRO product line has a total of 12 fertilizers 11 specialty fertilizers sold bulk wholesale through distributors GOLD’n GRO Guardian liquid deer repellant fertilizer- (in for registration) Sell to Landscapers/Nurseries Consumer Fertilizers Available through the Itronics web site
16	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 Photochemical Waste Water Treatment Units 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. Two large service contracts signed in fall 2006
17	Beneficial Use Photochemical Recycling
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19	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 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. - 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.
20	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
21	IMI’s Production Facility
22	Impure Silver
23	.999 Silver
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25	GOLD’n GROâ Fertilizers
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27	The Key is Stronger Root Growth
28	Field Test on Sweet Corn
29	Field Tests on Peppers
30	Oranges
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33	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® 20-1-7 formulation with Iron and chelates.
34	Itronics GOLD’n GRO Fertilizer Divison Sales are Expanding Sales Up 47% in Q4 2006; up 39% for full year 2006 Silver sales increased 177% in 2006 Positive gross profit for full year 2006 Expect sales to double in 2007 to about $4 million Targeting a 35% gross margin Beginning registration of GOLD’n GRO Guardian, the deer repellant fertilizer
35	Questions and Answers