KUTCHO CREEK ASBESTOS COMPANY LTD.

A review of all the available data will be made in 1975 to determine whether, in the light of
current economic conditions, further exploration expenditure can be justified.

EXPLORATION

In New Zealand at the Pyke Asbestos property, two of the three proposed exploratory adits
were completed during the year. This work indicated a series of chrysotile asbestos-bearing zones.
The fibre is of good quality, but the grade is low. While a final decision has not been reached, it appears
that the property is not sufficiently attractive to warrant the major expenditures that would be required
for your Company to exercise its option.

Other than a few property examinations, no general exploration in British Columbia or the
Yukon was carried out during the year, and none is planned for 1975.

RESEARCH
Fibre research on a reduced scale is continuing at the Ontario Research Foundation.

OPERATIONAL HEADQUARTERS

The operational headquarters has been moved from Toronto to Vancouver and is providing closer
and more efficient control of all aspects of the operation. The head office remains in Toronto.

PERSONNEL

During the year a serious shortage of tradesmen and labourers has continued to hamper production
and maintenance schedules at both mines. A corporate manager of personnel services was engaged to
co-ordinate all matters relating to employees of the company. An important function of this department
will be the hiring, development and training of employees.

During the year the Company has signed agreements at Cassiar, with the United Steelworkers
of America Union, Local 6536, with an expiry date of May 31, 1976; at Clinton, with the Canadian
Mine Workers Union, Local No. 1, with an expiry date of June 30, 1976; at Whitehorse, with the United
Steelworkers of America Union, Local 925, covering garage employees and transport drivers, with an
expiry date of May 31, 1976, and at Asbestos Wharf, with the International Longshoremen’s and
Warehousemen’s Union, Ship and Dock Foremen, Local 514, with an expiry date of December 31, 1975.
The existing agreement with the Retail Clerks’ Union, Local 1518, expires April 18, 1975.

ACKNOWLEDGMENTS

The directors wish to thank the staff and employees of the company for their efforts during this
very difficult year.

On behalf of the Board,

J. D. CHRISTIAN, PETER STEEN,
Chairman President

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