MONTREAL TORONTO HAMILTON ARTHUR YOUNG, CLARKSON, GORDON & CO.
LONDON WINDSOR WINNIPEG ACCOUNTANTS AND AUDITORS
REGINA CALGARY EDMONTON OFFICES IN PRINCIPAL CITIES OF U.S.A.

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15 WELLINGTON STREET WEST

Poin 7

CANADA

VANCOUVER

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, 1961 and the statements of operations and earned surplus
for the fifteen months 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 evi-
dence 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 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 company
at December 31, 1961 and the results of its operations for the fifteen months then
ended, in accordance with generally accepted accounting principles applied on a basis

consistent with that of the preceding year.

VOILE, A ¥ Le
Toronto, Canada,

February 27, 1962. Chartered Accountants.

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