Cassiar Asbestos Corporation Limited

To the Shareholders,
Cassiar Asbestos Corporation Limited:

During the year, Mr. George W. Smith, one of the very early directors of your Company, having
been elected on March 15, 1953, retired from the Board. He was replaced on June 13, 1972 by
Mr. J. Marcel Dorais, President of Bell Asbestos Mines, Ltd. During the past twenty years Mr. Smith’s
advice and knowledge of the asbestos industry, in which he has spent his entire life, has been of
inestimable value to the Board in directing the affairs of the Company. I am very pleased to report that
Mr. Smith has consented to serve on the President’s Advisory Committee and will still be available for
consultation.

Due to retirement from active participation in his own field, Mr. John Drybrough has requested
that he not be nominated for re-election at the forthcoming Annual Meeting. The nominee in his stead
is Mr. Jack E. Thomson, Executive Vice-President of Newmont Mining Corporation. The Company is
fortunate in having such a qualified and interested executive stand for election. Mr. John Drybrough
is well known in mining circles in Canada and we are, indeed, indebted to him for the sound advice and
guidance he has provided over the past eighteen years.

On your behalf, I sincerely thank both Mr. Smith and Mr. Drybrough and wish them good health.

Looking to the future, the directors have enacted By-Law 97, which provides for one additional
director for the Company. If this is ratified and if Mr. Peter Steen, who will be joining the Company
on April 1, 1973, is elected a director, it is the intention to appoint him Executive Vice-President.
Mr. Steen is forty-one years of age and has recently been Chief Mining Engineer for the Anglo American
Corporation of Canada Limited and General Manager of Whitehorse Copper Mines Limited. Mr. Steen
is familiar with northern mining operations and with his knowledge and experience, will considerably
strengthen the management group.

Yours very truly,

J. D. CHRISTIAN,
Chairman and President.
CASSIAR ASBESTOS CORP. LTD.

Toronto, Canada,
March 15, 1973.

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