Halifax Quebec Montreal Ottawa
Cite, Ge. OL G Toronto Hamilton Kitchener London Windsor

Winnipeg Regina Calgary Edmonton Vancouver

CL eS EE Arthur Young, Clarkson, Gordon & Co,
United States—Brazil
15 Wellington Street West, Toronto 1, Canada Telephone 363-2751 (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, 1966 and the statement of
consolidated operations and earned surplus and statement of consolidated source and
application of funds 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 aforementioned financial statements present
fairly the financial position of the companies as at December 31, 1966, and the
results of their operations and the source and application of their funds for the
year then ended, in conformity with generally accepted accounting principles applied

on a basis consistent with that of the preceding year.

Learthatrl, Steal v Oe.
Toronto, Canada,

March 14, 1967. Chartered Accountants

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