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P.O. Box 10101 Pacific Centre
700 West Georgia Street
Vancouver, Canada
V7Y 1C7

AUDITORS' REPORT
To the Shareholders of
Cassiar Asbestos Corporation Limited:

We have examined the consolidated balance sheet of Cassiar
Asbestos Corporation Limited and its subsidiaries as at December 31, 1974 and
the consolidated statements of operations and retained earnings and changes in
financial position for the year then ended. Our examination included a general
review of the accounting procedures and such tests of accounting records and
other supporting evidence as we considered necessary in the circumstances.

In our opinion these consolidated financial statements present
fairly the financial position of the companies as at December 31, 1974 and the
results of their operations and the changes in their financial position for the
year then ended, in accordance with generally accepted accounting principles
applied on a basis consistent with that of the preceding year, after giving
retroactive effect to the change in the method of accounting for mining claims

and land referred to in note 1 to the consolidated financial statements.

Dnfoor, Kolin, &Q,
Vancouver, Canada,

February 28, 1975. Chartered Accountants

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