CASSIAR ASBESTOS CORPORATION LIMITED

(Incorporated under The Companies Act, Canada)

————__

INTERIM BALANCE SHEET
AS AT JULY 11, 1951

ASSETS
Mining properties and options to purchase mineral claims for which 925,000
shares of capital stock were issued at 10¢ per share $ 92,500.00
Ande ama bapa etre Ca Se eee ete see eee ere 100,007.00 $192,507.00
Buildings-and ‘equipment at costs es ea 28,417.75
Road construction es 24,931.14
Preproduction development _. =f 28,142.14
Incorporationdexpense® — sastean<t a ton tek tunes dala eee ipa nee eee 3,000.00
$276,998.03
LIABILITIES
Accounts payable and accrued charges:
Conwest Exploration» Companysbimited 2" aes 22a wee eae ee eae $ 37,491.03
Other Fe Mt 33s AU ES ae ie OE OE Se eee Se eee pees 7,000.00 $ 44,491.03
Capital Stock:
Authorized—
2,500,000 shares without nominal or par value
Issued—
925,000 shares for mining properties and mineral claims $ 92,500.00
SOOO 7 shanesieto races hieee mete ieee ance Ue eee eee dn eeetc Tne I oe 140,007.00 232,507.00
1,425,007 $276,998.03
Notes:

1. Subscription privileges are to be issued to shareholders of Conwest Exploration
Company Limited as of July 16, 1951, to purchase 500,000 shares of the capital stock
at $1.00 per share; such privileges expire as at August 15, 1951.
2. Options on capital stock outstanding, exercisable from time to time as fixed by the
Board of Directors but not later than June 30, 1954—
200,000 shares at $1.25 per share
200,000 shares at $1.50 per share
174,993 shares at $1.75 per share

574,993 shares

3. Additional payments aggregating $19,900, payable at the option of the company up
to November 1, 1954, will be required to exercise in full the options to purchase
mineral claims.

On behalf of the Board:

C. R. Extiorrt, Director.
A. B. Mortimer, Director.

AUDITORS’ REPORT TO THE SHAREHOLDERS

We have audited the accounts of Cassiar Asbestos Corporation Limited for the period from May 17, 1951 (date of
incorporation) to July 11, 1951, and have obtained all the information and explanations we required.

We report that, in our opinion, the above balance sheet has been drawn up so as to exhibit a true end correct view
of the state of the company’s affairs at July 11, 1951, according to the best of our information and the explanations
given us and as shown by the books of the company.

CLARKSON, GORDON & CO.,
Toronto, Canada, Chartered Accountants.
July 12, 1951.