y ? y ; D
Cay Qh dor Y be Halifax Saint John Quebec Montreal! Ottawa

Toronto Hamilton Kitchener London Windsor
CZ, Y Thunder Bay Winnipeg Regina Calgary
Salevod Cl evmrlinels: Edmonton Vancouver Victoria

Arthur Young, Clarkson, Gordon & Co.

Royal Trust Tower United States—Brazil

P.O. Box 251 Toronto-Dominion Centre
Toronto 111, Canada Telephone 864-1234 (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 subsidiaries as at December 31, 1972 and the statements
of consolidated operations and retained earnings and consolidated source and application
of funds for the year then ended. Our examination included a general review of the
accounting procedures and such tests of accounting records and otner supporting
evidence as we considered necessary in the circumstances.

In our opinion these consolidated financial statements present fairly
the financial position of the companies as at December 31, 1972 and the results of
their operations and the source and application of their funds for the year then
ended, in accordance with generally accepted accounting principles applied on a

basis consistent with that of the preceding year.

Bourke, ne y, Sa
Toronto, Canada, 4 Gator!

March 13, 1973. Chartered Accountants

PAGE ELEVEN