a

April 1, 1968 to March 31, 1971, which the company previously reported as being exempt under the provisions of the Income
Tax Act, may be subjected to tax. There is no satisfactory precedent on which to base an estimate of the amount of tax, if
any, which might be involved.

Consolidated subsidiaries

Cassiar Asbestos (Alaska) Inc. — 100% owned
Kutcho Creek Asbestos Company Limited — 100% owned
Territorial Supply Company Limited — 100% owned

Remuneration of Officers and Directors

The aggregate direct remuneration paid by the companies during the year ended December 31, 1973:

TouthestOurnteenedirectOlsesi tence ce ee ee ee $ 19,975
To the seven officers of whom five are directors ................ 020.000 eee eeeeee 196,415
To three others, deemed officers pursuant to the Ontario Securities Act ............ 87,500

$ 303,890

The aggregate cost to the companies during the year ended December 31, 1973 with respect to all pension benefits proposed
to be paid in the event of retirement at normal retirement age (65 years):

Directorsande Officers 3 eee ee ee ae aU eC ae $ 25,256
Three others, deemed officers pursuant to the Ontario Securities Act ............... 11,586
$ 36,842

Pension Plan

The present value of the unfunded portion of past service benefits is approximately $715,000 at December 31, 1973. The
amount is being funded and charged to operations by annual payments of $62,000, including interest.

Subsequent Events

The company currently plans major capital expenditures for Cassiar Mine plant and equipment during 1974 and 1975 of
approximately $9,000,000 in total of which $5,200,000 has been committed to this date.

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