QUEBEC MONTREAL TORONTO HAMILTON ARTHUR YOUNG, CLARKSON, GORDON & CO.
KITCHENER LONDON WINDSOR WINNIPEG ACCOUNTANTS AND AUDITORS

REGINA CALGARY EDMONTON VANCOUVER OFFICES IN PRINCIPAL CITIES OF U.S.A.

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CANADA

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, 1962 and the statements of operations and earned surplus for
the year 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
end such tests of accounting records and other supporting evidence 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 51, 1962 and the results of its operations for the year then ended, in
accordance with generally accepted accounting principles applied on a basis consistent

with that of the preceding year.

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Toronto, Canada, eed ee r_&,

Pebruary, 1, 1963. Chartered Accountants.

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