Cassiar Asbestos Corporation Limited

Report of the Directors

To the Shareholders,
Cassiar Asbestos Corporation Limited,

Your directors submit herewith the eleventh annual report on the affairs
of your company including the balance sheet as at December 31, 1962, the statement
of operations and earned surplus for the year ended on that date, your Auditors’
Report thereon and the Report of the General Manager.

You will note from the statement of operations that during the year ended
December 31, 1962, the profit from operations was $6,179,710 before providing
for depreciation, stripping and other write-offs aggregating $2,130,505 and the
current year’s taxes of $950,000. Of the remaining $3,099,205, there was transferred
to the reserve for tax reductions applicable to future years, $650,000 leaving a net
profit of $2,449,205.

During the period under review there was expended on plant and equipment
$518,235, stripping $2,007,698 and outside exploration $55,652. After providing
for these expenditures and dividends aggregating $2,376,000, working capital
increased by $299,267.

Demand for spinning fibre improved during the year and sales increased in
all types of fibre.

Your company is continuing to expand its programme of research into the
treatment and use of asbestos fibres to ensure that its products will continue to
meet competition successfully.

As previously reported, 5,000,000 tons of high grade asbestos ore have been
developed in the company’s Clinton Creek pronerty in the Dawson area of the

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