3. Sulfatos Acquisition (Tables)

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Schedule of Supplemental Cash Flows Information

The following information presents supplemental cash flows information of assets acquired and liabilities assumed in connection with the Sulfatos Acquisition:

	Twelve months
	Ended
	December 31, 2012
Prepaid expenses	$	764,551
Equipment		3,289,521
Mining property		3,492,824
Land		549,310
Accounts payable		(447,343	)
Notes payable		(2,580,399	)
	$	5,068,464
Plus, cash acquired		892,294
Total value of acquisition	$	5,960,758
Value of acquisition allocated to additional paid-in capital	$	2,696,455
Value of acquisition allocated to minority interest	$	3,264,303

Schedule of historical cost values of the assets acquired and liabilities

The following table summarizes the historical cost values of the assets acquired and liabilities assumed at the date of Sulfatos Acquisition. In accordance with US GAAP, the assets and liabilities acquired are carried over at their historical value because the transaction occurred between related parties.

	At
	February 15, 2012
Working Capital Items
Cash and cash equivalents	$	892,294
Prepaid expenses and other		764,551
Accounts payable and accrued liabilities		(447,343	)
Notes payable		(2,580,399	)
Subtotal—Working Capital Items		(1,370,897	)
Long-lived Assets:
Property & Equipment
Land		549,310
Mining property		3,492,824
FFE and Equipment		3,289,521
Subtotal—long-lived assets		7,331,655
Total value of acquisition	$	5,960,758
Value of acquisition allocated to additional paid-in capital	$	2,696,455
Value of acquisition allocated to minority interest	$	3,264,303

Schedule of pro forma amounts

Had the Sulfatos Chile Acquisition taken place on January 1, 2012, results of operations would have reflected the following pro forma amounts for the three months ended March 31, 2012 as compared to March 31, 2013:

	Three Months Ended March 31,
	2012														2013
	Lustros, Inc.			Sulfatos Chile						Purchase			Pro
	Actual			Actual			Consolidated			Adjustments			Forma		Consolidated
Revenues	$	–		$	20,886		$	20,886		$	–		$	20,886	$	–
Operating expenses		16,861			473,038			489,899			212,807			702,706		766,535
Interest expense		–			–			–			–			–		226,028
Net loss	$	(16,861	)	$	(452,152	)	$	(469,013	)	$	(212,807	)	$	723,592	$	992,563

The $212,807 purchase adjustment is the operating expenses incurred by Sulfatos Chile from January 1, 2012 to February 15, 2012.