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6. Debt

9 Months Ended

Sep. 30, 2012

The following table sets forth the outstanding indebtedness of the Company at the date indicated. Inter-company transactions have been eliminated in the consolidated balance sheets:

Description	Total Due at September 30, 2012
Suprafin, Ltd.	$	836,489
Robert Dickey		175,000
Bill Hlavin		175,000
Banco de Chile Loan		91,055
Land Purchase Balance		374,110
	$	1,651,654

From February through September 2012, Suprafin, Ltd. (“Suprafin”) provided the Company a total of $2,563,453 in non-interest bearing unsecured demand loans to enable Bluestone to pay the balance of the purchase price for of the Sulfatos Acquisition and for working capital purposes. Zirk Engelbrecht, currently the Chairman of the Board, and formerly the Chief Executive Officer, of Lustros, is the owner of Suprafin. In May 2012, Suprafin agreed to cancel $429,000 of these loans in exchange for 100,000 shares of Series A Preferred Stock. As of September 2012, the Company had repaid an additional $1,297,964 of these loans, and the outstanding balance of these loans was $836,489.

In September 2012, the Company borrowed a total of $350,000 from Robert Dickey and Bill Hlavin, directors of Lustros, for working capital purposes. These loans are non-interest bearing, unsecured demand loans to be repaid from any future financing.

In April 2012, Sulfatos borrowed $40,500,223 CLP, or approximately $79,454 US dollars, from Banco de Chile for working capital purposes. This loan bears interest at the rate of 13.43% per annum and is due on March 31, 2013. Payments of principal and interest in the amount of $7,343,229 CLP, or approximately $15,608 US dollars, commence on October 1, 2012. As of September 30, 2012, the outstanding balance of this loan was $42,839,374 CLP, or approximately $91,055 US dollars.

Sulfatos currently owes $176,011,132 CLP, or approximately $374,110 US dollars due March 1, 2013, for the last payment of the land acquired in the first quarter of 2011. This obligation does not bear interest.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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