CORPORATE PROFILE

Cassiar Mining Corporation is a Canadian mining, exploration and development
company with its head office located in Vancouver, British Columbia. The
Company’s main business is the operation of the Cassiar mine in northwestern
British Columbia. The mine, which commenced operation in 1953, is currently
capable of producing in excess of 110 000 tonnes of high quality chrysotile asbestos
fibre per year. Sales are made to customers in 45 countries around the world. The
present open pit orebody is expected to sustain the operations until 1991.
Exploration is currently being carried out on the adjacent underground McDame
deposit which has an asbestos content similar to the Cassiar open pit orebody.

The Company’s San Antonio gold property in Manitoba, which has not operated
since 1983, has a fully equipped modern 450 tonne per day mill and associated
facilities and has produced in excess of 1.35 million ounces of gold from depths
to 1490 metres. A substantial drilling program carried out in 1986 indicates 1.46
million tons of reserves grading 0.233 oz/ton gold, equal to 340,000 ounces of
contained gold.

The Company holds an approximate 40% interest in an exploration company —
Western Canadian Mining Corporation.

Cassiar Mining Corporation is listed on The Toronto Stock Exchange (stock
symbol ‘‘CSQ’’). Series II Warrants, also listed on The Toronto Stock Exchange,
expire April 30, 1987 (see page 4 for details).

The Annual General Meeting of Shareholders will be held on May 13, 1987, in
the Garibaldi Room, Four Seasons Hotel, 791 West Georgia Street, Vancouver,
B.C., commencing at 10:00 o’clock in the forenoon (Vancouver time).

Shareholders are encouraged to attend the Annual Meeting. Those unable to do
so are asked to sign and return the form of prexy mailed with the annual report.