Cassiar Asbestos Corporation Limited

Report of the Directors
To the Shareholders,

Cassiar Asbestos Corporation Limited.

Your directors submit herewith the eighth annual report on the operations of your
company, including the financial statements prepared as at September 30, 1959, your auditors’

report thereon and a report by Mr. J. D. Christian, General Manager.

The net profit for the year ended September 30, 1959 was $3,043,579 after charging
depreciation of $923,508, deferred exploration and development in the amount of $34,402

and outside exploration of $147,012. Dividends amounting to 50¢ per share were declared.

You will note that the current assets amounted to $6,082,120 and current liabilities
amounted to $1,150,544 or net working assets of $4,931,576 as compared with net working
assets at September 30, 1958 of $3,897,107. The expenditures on plant and equipment of
$608,230 and on stripping deferred $779,358 are referred to in the General Manager’s report.

You will note from the General Manager’s report that work in the lower adit during

the year has indicated a very substantial increase in the ore reserves.

Sales during the latter half of the year improved and total sales for the year compared
favourably with the previous year with the outlook for future sales good. To provide more
flexibility to the operation and to enable the company to take advantage of any improvement in
sales, equipment is being installed to increase the Mill capacity. Any increase in the rate of

production will be dependent upon and consistent with increased sales.

As previously reported, 5,000,000 tons of high grade asbestos ore has been developed
at the Clinton Creek property and this option will be exercised in full. The Letain asbestos

property is held by Kutcho Creek Mines Limited which has issued 750,000 shares of its capital

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