QUEBEC MONTREAL TORONTO HAMILTON ARTHUR YOUNG, CLARKSON,GORDON & CO.
KITCHENER LONOON WINOSOR WINNIPEG . CHARTERED ACCOUNTANTS

REGINA CALGARY EOMONTON VANCOUVER OFFICES IN PRINCIPAL CITIES OF U.S.A.

“. G AG?
VAIRDOVW, Sordow ye (DG;
Qe aw lan i

1S WELLINGTON STREET WEST

OFF
Wee lo i

CANADA

AUDITORS? REPORT

To the Shareholders of
Cassiar Asbestos Corporation Limited:

We have examined the balance sheet of Cassiar Asbestos Corporation
Limited as at December 31, 1963 and the statenents of operations and earned surplus
for the year ended on that date, and have obtained all the information and
explanations we have required. 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 accordance with Section 118 of the Companies Act (Canada), we
report that the subsidiary company referred to in the note to the financial ioe
statements, had no profit or loss as it is in the preproduction and development stage.

In our opinion and according to the best of our information and the
explanations given to us, and as shown by the: books of the company, the accompanying
balance sheet and statements of operations and earned surplus are properly drawn
up so as to exhibit a true and correct view of the state of the affairs of the
conpany at December 31, 1963 and the results of its operations for the year then
ended, in accordance with generally accepted accounting principles applied on a basis

consistent with that of the preceding year.

Toronto, Canada, 5 Sorbo « La.

February 4, 1964. Chartered Accountants.

Pact NINE