APPENDIX A

CASSIAR ASBESTOS CORPORATION LTD.
EXISTING AND PLANNED CAPITAL EXPANSION
CASSIAR MINE

Cassiar Asbestos Corporation Ltd. has undertaken a 7-year capital expansion
program of some $50.5 million to improve the asbestos fibre recovery rate
at its Cassiar mine from some 105,000 annual tons of fibre to 130,000 tons.
This expansion program began in 1974/75 and is planned to be completed by
1982. The following table details the existing and planned expenditures: -

Year Capital Item Capital Cost
(3600S)
1974/75 T-line 7,000
1974/75 Pre-Concentrator 3,000
1976/77 Mill Air System 5,500
1976/77 Mill Equipment Modification S725
1976 Mill Crusher 370
Mill/Dryer Vacuum 450
1975/77 Tailings Conveyors 1,500
EXISTING EXPENDITURES: 21,545
1978/82 New Mill Extension 23,000
Dry Rock Storage 2,000
Drying and Storage Conveying 2,900
* Fibre Storage and Container Loading

Facilities 1,100
FUTURE EXPENDITURES: 29 ,000
TOTAL EXPENDITURES: 50,545

(* Contingent on use of Cassiar-Stewart Highway
and Port of Stewart.)