Dp ;
PAGE Four Casstar Aspestos Corporation LiaItep

Value of sales during the year increased approximately 9% compared with the previous
year. The outlook for future sales is satisfactory. The increase in mill capacity effected during
the year will enable the company to take advantage of any increased demand for its products

in the immediate future.

As previously reported 5,000,000 tons of high grade asbestos ore has been developed
at the Clinton Creek property. During the year, the prospector’s interest was purchased for
cash and the property is now wholly owned by your compny. No work was done on the

property during the year.

The Letain asbestos property is held by Kutcho Creek Asbestos Company Limited which
has issued 750,005 shares of its capital stock of which Cassiar owns 730,005 shares and holds
an option to purchase the remaining 20,000 shares for $40,000. An action commenced in
the British Columbia Courts by the original vendor to recover title to the property was dismissed
by the Supreme Court of British Columbia. An appeal to the Court of Appeal for British
Columbia before three judges of that Court was unanimously dismissed. A further appeal to

the Supreme Court of Canada has been heard but no decision has yet been handed down.
P )

During the year, the company’s transport division continued trucking the company’s
products from Cassiar to Whitehorse and back-hauling supplies and oil required by the company.

The efficiency of this operation has been well maintained.

The Board expresses its appreciation of the loyal and efficient services rendered the
company by Mr. J. D. Christian, General Manager, Mr. N. F. Murray, General Superintendent
and Mr. N. Gritzuk, Manager of the Transport Division and their staffs.

On behalf of the Board,

F, M. CONNELL,

President.

Toronto, Ontario,

December 16, 1960.