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/ PCL alifax Quebec Montreal Ottawa
Cha Geiss ZZ Ce Toronto Hamilton Kitchener London Windsor

Winnipeg Regina Calgary Edmonton Vancouver

GZ
Ce Peo bp Arthur Young, Clarkson, Gordon & Co.
United States—Brazil

15 Wellington Street West, Toronto 1, Canada Telephone 368-2751 (Area Code 416)

AUDITORS' REPORT

To the Shareholders of
Cassiar Asbestos Corporation Limited:

We have examined the consolidated balance sheet of Cassiar Asbestos
Corporation Limited and its subsidiary as at December 31, 1965 and the statements
of consolidated operations and earned surplus for the year ended on that date. 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 the accompanying eonaolidated balance sheet and
statements of consolidated operations and earmed surplus present fairly the financial
position of the companies as at December 31, 1965 and the results of their operations
for the year then ended, in accordance with generally accepted accounting principles

applied on a basis consistent with that of the preceding year.

Oop hae VOIDS we G4

Toronto, Canada,
Chartered Accountants

March 2, 1966.

PaGE TEN