Silver and Fertilizer from Photo Wastes John W. Whitney Founder, Chairman, President, Itronics, Inc. (OTCBB: ITRO; Frankfurt and Berlin:ITG) Eliminating.

Silver and Fertilizer fromPhoto Wastes

John W. WhitneyFounder, 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

• 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

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.---------------PhotochemicalProcessing

Photo-by-productFertilizer

Manufacturing

Silver Recoveryand

Refining

Current Applications:

Cotton

Fruit and Nut Trees

Grapes

Vegetables

SilverSales

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-ImagingProcessor

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® 20-1-7 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