(2)	Correction of Errors in Previously Reported Financial Statements

We have restated our previously issued financial statements for the periods prior to and including the twelve months ended December 31, 2011 to correct for certain errors which decreased net income available to AMCOL shareholders by $5.3. Although there were several errors across various categories, we have summarized the errors and quantified the amount by which they increased (decreased) net income available to AMCOL shareholders into the following categories:

●

Spain - $2.5 decrease for errors associated with accounting for inventory and other items in our environmental segment's Spanish operations;

●

Poland - $1.8 decrease relating to inaccuracies in the accounting for long term contracts and bad debts in our environmental segment's Polish operations;

●

South Africa - $0.8 decrease for errors related to the accounting for the acquisition of mineral rights in our minerals and materials segment's chromite operations in South Africa;

●

Tax - $0.1 decrease resulting largely from inaccuracies in the accounting for income tax expense in our international operations;

●

Malaysia - $0.3 increase resulting from correcting errors in our oilfield services segment's Malaysian operations, largely relating to improper recognition of expenses and errors in accounting for revenues;

●

DongMing – adjustments to correct errors made in accounting for accounts payable in this China subsidiary within our minerals and materials segment; and

●

$0.4 decrease for other insignificant errors we have aggregated together.

Adjustments by category and increase (decrease) to Net income available to AMCOL sharesholders attributable to each category	Prior to			Twelve Months Ended December 31,
	2009			2009			2010			2011			Total
Spain	$	-		$	(0.8	)	$	(0.6	)	$	(1.1	)	$	(2.5	)
Poland					(0.3	)		(0.3	)		(1.2	)		(1.8	)
South Africa		-			(0.3	)		-			(0.5	)		(0.8	)
Tax		(0.5	)		(0.5	)		(0.6	)		1.5			(0.1	)
Malaysia		-			-			(0.4	)		0.7			0.3
DongMing		0.2			0.1			0.2			(0.5	)		-
Other		(0.4	)		(1.0	)		0.5			0.5			(0.4	)

Total	$	(0.7	)	$	(2.8	)	$	(1.2	)	$	(0.6	)	$	(5.3	)

Corrections to annual periods ended December 31, 2009, December 31, 2010 and 2011 and as of December 31, 2010 and 2011

The effect of correcting these errors on our condensed consolidated statements of operations for the years ended December 31, 2009, 2010 and 2011 is as follows:

	Year Ended December 31, 2009
	Previously Reported			Adjustments																					As Adjusted
				Spain			Poland			South Africa			Tax			DongMing			Other			Total

Continuing Operations
Net sales	$	691.9		$	-		$	(0.1	)	$	-		$	-		$	-		$	(4.3	)	$	(4.4	)	$	687.5
Cost of sales		505.6			0.7			0.2			0.5			-			-			(3.8	)		(2.4	)		503.2
Gross profit		186.3			(0.7	)		(0.3	)		(0.5	)		-			-			(0.5	)		(2.0	)		184.3
Selling, general and administrative expenses		133.4			0.3						0.1						(0.1	)		1.3			1.6			135.0
Operating profit		52.9			(1.0	)		(0.3	)		(0.6	)		-			0.1			(1.8	)		(3.6	)		49.3
Other income (expense):
Interest expense, net		(12.2	)		-			-			-			-			-			0.2			0.2			(12.0	)
Other, net		(0.9	)		-			-			-			-			-			0.6			0.6			(0.3	)
		(13.1	)		-			-			-			-			-			0.8			0.8			(12.3	)
Income before income taxes and income (loss) from affiliates and joint ventures		39.8			(1.0	)		(0.3	)		(0.6	)		-			0.1			(1.0	)		(2.8	)		37.0
Income tax expense (benefit)		5.3			(0.2	)					(0.1	)		0.5			-			(0.1	)		0.1			5.4
Income before income (loss) from affiliates and joint ventures		34.5			(0.8	)		(0.3	)		(0.5	)		(0.5	)		0.1			(0.9	)		(2.9	)		31.6
Income (loss) from affiliates and joint ventures		0.1																		(0.1	)		(0.1	)		-
Income (loss) from continuing operations		34.6			(0.8	)		(0.3	)		(0.5	)		(0.5	)		0.1			(1.0	)		(3.0	)		31.6

Discontinued Operations
Income (loss) on discontinued operations		0.3			-			-			-			-			-			-			-			0.3
Net income (loss)		34.9			(0.8	)		(0.3	)		(0.5	)		(0.5	)		0.1			(1.0	)		(3.0	)		31.9

Net income (loss) attributable to noncontrolling interests		0.1			-			-			(0.2	)		-			-			-			(0.2	)		(0.1	)
Net income (loss) attributable to AMCOL shareholders	$	34.8		$	(0.8	)	$	(0.3	)	$	(0.3	)	$	(0.5	)	$	0.1		$	(1.0	)	$	(2.8	)	$	32.0

Weighted average common shares outstanding		30.8																					30.8			30.8
Weighted average common and common equivalent shares outstanding		31.0																					31.0			31.0

Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	34.5																				$	(2.8	)	$	31.7
Discontinued operations, net of tax		0.3																					-			0.3
Net income	$	34.8																				$	(2.8	)	$	32.0

Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.12																				$	(0.09	)	$	1.03
Discontinued operations		0.01																					-			0.01
Net income	$	1.13																				$	(0.09	)	$	1.04

Diluted earnings (loss) per share:
Continuing operations	$	1.11																				$	(0.09	)	$	1.02
Discontinued operations		0.01																					-			0.01
Net income	$	1.12																				$	(0.09	)	$	1.03

	Year Ended December 31, 2010
	Previously Reported			Adjustments																								As Adjusted
				Spain			Poland			South Africa			Tax			Malaysia			DongMing			Other			Total
Continuing Operations
Net sales	$	841.0		$	-		$	(0.1	)	$	-		$	-		$	(0.6	)	$	-		$	(14.0	)	$	(14.7	)	$	826.3
Cost of sales		624.1			0.6			0.1															(12.7	)		(12.0	)		612.1
Gross profit		216.9			(0.6	)		(0.2	)		-			-			(0.6	)		-			(1.3	)		(2.7	)		214.2
Selling, general and administrative expenses		146.9						0.1			(0.1	)								(0.3	)		(1.4	)		(1.7	)		145.2
Operating profit		70.0			(0.6	)		(0.3	)		0.1			-			(0.6	)		0.3			0.1			(1.0	)		69.0
Other income (expense):
Interest expense, net		(9.7	)																				0.1			0.1			(9.6	)
Other, net		1.2																					0.1			0.1			1.3
		(8.5	)		-			-			-			-			-			-			0.2			0.2			(8.3	)
Income before income taxes and income (loss) from affiliates and joint ventures		61.5			(0.6	)		(0.3	)		0.1			-			(0.6	)		0.3			0.3			(0.8	)		60.7
Income tax expense (benefit)		19.4									0.1			0.6			(0.2	)		0.1			0.3			0.9			20.3
Income before income (loss) from affiliates and joint ventures		42.1			(0.6	)		(0.3	)		-			(0.6	)		(0.4	)		0.2			0.0			(1.7	)		40.4
Income (loss) from affiliates and joint ventures		(11.3	)																				0.3			0.3			(11.0	)
Income (loss) from continuing operations		30.8			(0.6	)		(0.3	)		-			(0.6	)		(0.4	)		0.2			0.3			(1.4	)		29.4

Discontinued Operations
Income (loss) on discontinued operations		(0.9	)																				-			-			(0.9	)
Net income (loss)		29.9			(0.6	)		(0.3	)		-			(0.6	)		(0.4	)		0.2			0.3			(1.4	)		28.5

Net income (loss) attributable to noncontrolling interests		(0.5	)																				(0.2	)		(0.2	)		(0.7	)
Net income (loss) attributable to AMCOL shareholders	$	30.4		$	(0.6	)	$	(0.3	)	$	-		$	(0.6	)	$	(0.4	)	$	0.2		$	0.5		$	(1.2	)	$	29.2

Weighted average common shares outstanding		31.2																								31.2			31.2
Weighted average common and common equivalent shares outstanding		31.5																								31.5			31.5

Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	31.3																							$	(1.2	)	$	30.1
Discontinued operations, net of tax		(0.9	)																							-			(0.9	)
Net income	$	30.4																							$	(1.2	)	$	29.2

Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.00																							$	(0.03	)	$	0.97
Discontinued operations		(0.03	)																							-			(0.03	)
Net income	$	0.97																							$	(0.03	)	$	0.94

Diluted earnings (loss) per share:
Continuing operations	$	0.99																							$	(0.04	)	$	0.96
Discontinued operations		(0.03	)																							-			(0.03	)
Net income	$	0.96																							$	(0.04	)	$	0.93

	Year Ended December 31, 2011
	Previously Reported			Adjustments																								As Adjusted
				Spain			Poland			South Africa			Tax			Malaysia			DongMing			Other			Total

Continuing Operations
Net sales	$	942.4		$	-		$	-		$	-		$	-		$	0.6		$	-		$	0.8		$	1.4		$	943.8
Cost of sales		689.5			1.2			0.6			0.3			-			-			-			(0.2	)		1.9			691.4
Gross profit		252.9			(1.2	)		(0.6	)		(0.3	)		-			0.6			-			1.0			(0.5	)		252.4
Selling, general and administrative expenses		165.2			0.1			0.6			-			-			(0.2	)		0.7			(0.1	)		1.1			166.3
Operating profit		87.7			(1.3	)		(1.2	)		(0.3	)		-			0.8			(0.7	)		1.1			(1.6	)		86.1
Other income (expense):
Interest expense, net		(11.5	)					-			-			-			-			-			0.5			0.5			(11.0	)
Other, net		0.2						-			-			-			-			-			-			-			0.2
		(11.3	)		-			-			-			-			-			-			0.5			0.5			(10.8	)
Income before income taxes and income (loss) from affiliates and joint ventures		76.4			(1.3	)		(1.2	)		(0.3	)		-			0.8			(0.7	)		1.6			(1.1	)		75.3
Income tax expense (benefit)		21.8			(0.2	)		-			0.3			(1.8	)		0.1			(0.2	)		0.8			(1.0	)		20.8
Income before income (loss) from affiliates and joint ventures		54.6			(1.1	)		(1.2	)		(0.6	)		1.8			0.7			(0.5	)		0.8			(0.1	)		54.5
Income (loss) from affiliates and joint ventures		5.5			-			-			-			(0.3	)		-			-			-			(0.3	)		5.2
Income (loss) from continuing operations		60.1			(1.1	)		(1.2	)		(0.6	)		1.5			0.7			(0.5	)		0.8			(0.4	)		59.7

Discontinued Operations
Income (loss) on discontinued operations		(0.9	)		-			-			-			-			-			-			(0.3	)		(0.3	)		(1.2	)
Net income (loss)		59.2			(1.1	)		(1.2	)		(0.6	)		1.5			0.7			(0.5	)		0.5			(0.7	)		58.5

Net income (loss) attributable to noncontrolling interests		0.1			-			-			(0.1	)		-			-			-			-			(0.1	)		-
Net income (loss) attributable to AMCOL shareholders	$	59.1		$	(1.1	)	$	(1.2	)	$	(0.5	)	$	1.5		$	0.7		$	(0.5	)	$	0.5		$	(0.6	)	$	58.5

Weighted average common shares outstanding		31.7																								31.7			31.7
Weighted average common and common equivalent shares outstanding		32.1																								32.1			32.1

Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	60.0																							$	(0.3	)	$	59.7
Discontinued operations, net of tax		(0.9	)																							(0.3	)		(1.2	)
Net income	$	59.1																							$	(0.6	)	$	58.5

Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.89																							$	(0.01	)	$	1.88
Discontinued operations		(0.03	)																							(0.01	)		(0.04	)
Net income	$	1.86																							$	(0.02	)	$	1.84

Diluted earnings (loss) per share:
Continuing operations	$	1.87																							$	(0.01	)	$	1.86
Discontinued operations		(0.03	)																							(0.01	)		(0.04	)
Net income	$	1.84																							$	(0.02	)	$	1.82

The effect of correcting these errors in our condensed consolidated balance sheets as of December 31, 2010 and 2011 is as follows:

	December 31, 2010
ASSETS	Previously Reported		Adjustments																					As Adjusted
			Spain			Poland			South Africa		Tax		Malaysia			DongMing		Other			Total
Current assets:
Cash and cash equivalents	$	27.3	$	-		$	-		$	-	$	-	$	-		$	-	$	(0.5	)	$	(0.5	)	$	26.8
Accounts receivable, net		194.0		(0.4	)		(0.3	)						(1.1	)				(2.4	)		(4.2	)		189.8
Inventories		107.5		(1.0	)														(1.2	)		(2.2	)		105.3
Prepaid expenses		12.6																	0.4			0.4			13.0
Deferred income taxes		5.5																	-						5.5
Income tax receivable		8.5																	-						8.5
Other		6.2																	-						6.2
Total current assets		361.6		(1.4	)		(0.3	)		-		-		(1.1	)		-		(3.7	)		(6.5	)		355.1

Noncurrent assets:
Property, plant, equipment, and mineral rights and reserves:
Land		11.6																	(0.7	)		(0.7	)		10.9
Mineral rights		51.4								13.6									-			13.6			65.0
Depreciable assets		454.4																	(1.8	)		(1.8	)		452.6
		517.4		-			-			13.6		-		-			-		(2.5	)		11.1			528.5
Less: accumulated depreciation and depletion		256.9																	-			-			256.9
		260.5		-			-			13.6		-		-			-		(2.5	)		11.1			271.6

Goodwill		70.9																							70.9
Intangible assets, net		42.6																	(0.7	)		(0.7	)		41.9
Investment in and advances to affiliates and joint ventures		19.0																	1.9			1.9			20.9
Available-for-sale securities		14.2																	-						14.2
Deferred income taxes		7.6								1.6									-			1.6			9.2
Other assets		22.7												0.5					0.3			0.8			23.5
Total noncurrent assets		437.5		-			-			15.2		-		0.5			-		(1.0	)		14.7			452.2
Total Assets	$	799.1	$	(1.4	)	$	(0.3	)	$	15.2	$	-	$	(0.6	)	$	-	$	(4.7	)	$	8.2		$	807.3

	December 31, 2010
LIABILITIES AND SHAREHOLDERS' EQUITY	Previously Reported		Adjustments																								As Adjusted
			Spain			Poland			South Africa			Tax			Malaysia			DongMing			Other			Total
Current liabilities:
Accounts payable	$	53.2	$	-					$	-					$	-		$	(0.7	)	$	(1.1	)	$	(1.8	)	$	51.4
Accrued income taxes		4.1		(0.1	)								1.5			(0.2	)		0.2			(0.2	)		1.2			5.3
Accrued liabilities		55.2		0.1			0.3															0.2			0.6			55.8
Total current liabilities		112.5		-			0.3			-			1.5			(0.2	)		(0.5	)		(1.1	)		-			112.5

Noncurrent liabilities:
Long-term debt		236.2																				(0.5	)		(0.5	)		235.7
Pension liabilities		21.3																				-						21.3
Deferred compensation		8.7																				0.3			0.3			9.0
Deferred income tax		0.4								15.8			0.1									-			15.9			16.3
Other long-term liabilities		19.6																				(1.1	)		(1.1	)		18.5
Total noncurrent liabilities		286.2		-			-			15.8			0.1			-			-			(1.3	)		14.6			300.8

Shareholders' Equity:
Common stock		0.3																				-						0.3
Additional paid in capital		95.1																				-						95.1
Retained earnings		283.2		(1.4	)		(0.6	)		(0.3	)		(1.6	)		(0.4	)		0.5			(0.9	)		(4.7	)		278.5
Accumulated other comprehensive income (loss)		28.9								(0.1	)											(0.1	)		(0.2	)		28.7
Less: Treasury stock		8.9																				-						8.9
Total AMCOL shareholders' equity		398.6		(1.4	)		(0.6	)		(0.4	)		(1.6	)		(0.4	)		0.5			(1.0	)		(4.9	)		393.7

Noncontrolling interest		1.8								(0.2	)											(1.3	)		(1.5	)		0.3

Total equity		400.4		(1.4	)		(0.6	)		(0.6	)		(1.6	)		(0.4	)		0.5			(2.3	)		(6.4	)		394.0
Total Liabilities and Shareholders' Equity	$	799.1	$	(1.4	)	$	(0.3	)	$	15.2		$	-		$	(0.6	)	$	-		$	(4.7	)	$	8.2		$	807.3

	December 31, 2011
ASSETS	Previously Reported		Adjustments																						As Adjusted
			Spain			Poland			South Africa		Tax			Malaysia			DongMing		Other			Total
Current assets:
Cash and cash equivalents	$	23.7	$	-		$	-		$	-	$	-		$	-		$	-	$	0.4		$	0.4		$	24.1
Accounts receivable, net		206.8		(1.6	)		(0.9	)							(0.7	)				0.8			(2.4	)		204.4
Inventories		146.6		(1.8	)					0.2										(0.7	)		(2.3	)		144.3
Prepaid expenses		15.7																		(0.5	)		(0.5	)		15.2
Deferred income taxes		5.9										(1.8	)							-			(1.8	)		4.1
Income tax receivable		6.9										1.3								-			1.3			8.2
Other		6.7																		(0.5	)		(0.5	)		6.2
Total current assets		412.3		(3.4	)		(0.9	)		0.2		(0.5	)		(0.7	)		-		(0.5	)		(5.8	)		406.5

Noncurrent assets:
Property, plant, equipment, and mineral rights and reserves:
Land		13.9																		(1.8	)		(1.8	)		12.1
Mineral rights		41.9								10.6										-			10.6			52.5
Depreciable assets		482.3																		2.4			2.4			484.7
		538.1		-			-			10.6		-			-			-		0.6			11.2			549.3
Less: accumulated depreciation and depletion		275.5																		0.3			0.3			275.8
		262.6		-			-			10.6		-			-			-		0.3			10.9			273.5

Goodwill		69.5																								69.5
Intangible assets, net		36.6																		0.3			0.3			36.9
Investment in and advances to affiliates and joint ventures		26.4																		-						26.4
Available-for-sale securities		3.8																		-						3.8
Deferred income taxes		7.8								0.7		(0.4	)							-			0.3			8.1
Other assets		23.7													0.7					-			0.7			24.4
Total noncurrent assets		430.4		-			-			11.3		(0.4	)		0.7			-		0.6			12.2			442.6
Total Assets	$	842.7	$	(3.4	)	$	(0.9	)	$	11.5	$	(0.9	)	$	-		$	-	$	0.1		$	6.4		$	849.1

	December 31, 2011
LIABILITIES AND SHAREHOLDERS' EQUITY	Previously Reported			Adjustments																							As Adjusted
				Spain			Poland			South Africa			Tax			Malaysia			DongMing		Other			Total
Current liabilities:
Accounts payable	$	56.4		$	-		$	-		$	-		$	-		$	-		$	-	$	0.1		$	0.1		$	56.5
Accrued income taxes		2.7			(0.3	)								-								(0.1	)		(0.4	)		2.3
Accrued liabilities		59.0			(0.8	)		0.7									(0.3	)				0.6			0.2			59.2
Total current liabilities		118.1			(1.1	)		0.7			-			-			(0.3	)		-		0.6			(0.1	)		118.0

Noncurrent liabilities:
Long-term debt		260.7																				-						260.7
Pension liabilities		34.8																				-						34.8
Deferred compensation		8.9																				-						8.9
Deferred income tax		0.8									12.6			(0.8	)		-					0.1			11.9			12.7
Other long-term liabilities		19.2																				(0.1	)		(0.1	)		19.1
Total noncurrent liabilities		324.4			-			-			12.6			(0.8	)		-			-		-			11.8			336.2

Shareholders' Equity:
Common stock		0.3																				-						0.3
Additional paid in capital		94.5									(0.2	)										-			(0.2	)		94.3
Retained earnings		319.6			(2.5	)		(1.8	)		(0.8	)		(0.1	)		0.3			-		(0.4	)		(5.3	)		314.3
Accumulated other comprehensive income (loss)		(15.0	)		0.2			0.2														(0.1	)		0.3			(14.7	)
Less: Treasury stock		3.4																				-						3.4
Total AMCOL shareholders' equity		396.0			(2.3	)		(1.6	)		(1.0	)		(0.1	)		0.3			-		(0.5	)		(5.2	)		390.8

Noncontrolling interest		4.2									(0.1	)										-			(0.1	)		4.1

Total equity		400.2			(2.3	)		(1.6	)		(1.1	)		(0.1	)		0.3			-		(0.5	)		(5.3	)		394.9
Total Liabilities and Shareholders' Equity	$	842.7		$	(3.4	)	$	(0.9	)	$	11.5		$	(0.9	)	$	-		$	-	$	0.1		$	6.4		$	849.1

The correction of these errors had no effect on the previously reported amounts of operating, investing, and financing cash flows in our condensed consolidated statement of cash flows for the year ended December 31, 2009. The effect of correcting these errors in our condensed consolidated statements of cash flows for the years ended December 31, 2010 and 2011 is as follows:


	Year Ended December 31, 2010
	Previously Reported			Adjustments			As Adjusted

Net cash provided by (used in) operating activities	$	48.1		$	0.1		$	48.2
Net cash (used in) investing activities		(48.1	)		(0.6	)		(48.7	)
Net cash provided by (used in) financing activities		(0.8	)		-			(0.8	)
Effect of foreign currency rate changes on cash		0.4			-			0.4
Net increase (decrease) in cash and cash equivalents		(0.4	)		(0.5	)		(0.9	)
Cash and cash equivalents at beginning of period		27.7			-			27.7
Cash and cash equivalents at end of period	$	27.3		$	(0.5	)	$	26.8


	Year Ended December 31, 2011
	Previously reported			Adjustments			As Adjusted

Net cash provided by (used in) operating activities	$	38.6		$	0.7		$	39.3
Net cash (used in) investing activities		(54.7	)		0.5			(54.2	)
Net cash provided by (used in) financing activities		11.6			(0.3	)		11.3
Effect of foreign currency rate changes on cash		0.9			-			0.9
Net increase (decrease) in cash and cash equivalents		(3.6	)		0.9			(2.7	)
Cash and cash equivalents at beginning of period		27.3			(0.5	)		26.8
Cash and cash equivalents at end of period	$	23.7		$	0.4		$	24.1

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2009, correcting these errors reduced total comprehensive income by $3.0 resulting from the $3.0 decrease to net income as previously discussed.

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2010, correcting these errors reduced total comprehensive income by $1.2, reflecting the $1.4 decrease to net income as previously discussed in addition to $0.2 of income resulting from the foreign currency translation effect of these errors.

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2011, correcting these errors reduced total comprehensive income by $0.2, reflecting the $0.7 decrease to net income as previously discussed in addition to $0.5 of income resulting from the foreign currency translation effect of these errors.

With regards to our consolidated statements of equity, our retained earnings at January 1, 2009 decreased by $0.8 resulting from the decrease to net income attributable to AMCOL shareholders for the years prior to 2009.