Pace Four

cuts and two adits. Mill tests of the ore will be made during the current year. The Clinton
Creek and the Caley properties are in the Yukon Territory approximately 40 miles
north-west of Dawson and the Letain property is in Northern British Columbia approximately
60 miles south-east of Cassiar. It will be your company’s policy to maintain an active

exploration department to explore for and acquire asbestos properties of merit in the area.

You will note that after providing for the foregoing capital expenditure, current
assets amounted to $4,571,341 and current liabilities amounted to $986,770, or net working

assets of $3,584,571 as compared with net working assets at September 30, 1956 of $2,310,450.

The company’s products are trucked from Cassiar to Whitehorse by the company’s
Transport Division and supplies including oil are moved as a back-haul with substantial
savings in transportation costs. The efficiency of this operation has been well maintained
and further improvement is expected from the replacement of gasoline powered highway
units with larger diesel powered units that have proven more economical. Maintenance
and improvement of the highway from Cassiar to the Yukon border was continued by the

British Columbia Highway Department.

The board expresses its appreciation for the loyal and efficient services rendered the
company by Mr. J. D. Christian, General Manager, and his staff, and by Mr. N. Gritzuk,

Manager of the Transport Division, and his staff.

On behalf of the Board,

F. M. CONNELL,

President.

Toronto, Ontario.

December 20, 1957.

Casstar AsBESTOS CORPORATION LIMITED