CASSIAR ASBESTOS CORPORATION LIMITED

(Incorporated under the laws of Canada)

Balance Sheet —lecember 31, 1962

ASSETS Current: Cash $ 796,988 Short term investments at cost (market value $350,676) 348,888 Accounts receivable 890,951 Asbestos fibre at cost 2,603,881 $ 4,640,708 Ore stockpiled at mill at cost $ 513,280 Inventory of supplies — valued at laid-down cost 1,110,016 Prepaid expenses 92,626 1,715,922 $ 6,356,630 Investment in Territorial Supply Company Limited: Shares (one-half the issued capital) at cost $ 25,000 Notes receivable 250,000 275,000 Fixed and deferred: Operating mine — Plant and equipment at cost $11,153,089 Automotive equipment at cost 2,294,517 Roads at cost 158,664 $13,606,270 Less accumulated depreciation 6,090,216 $ 7,516,054 Mining claims and properties — acquired for issue of 925,000 shares and the payment of $160,569 253,069 $ 7,769,123 Preproduction expenditures less amounts written-off , $ 152,073 Stripping costs less amounts written-off 4,981,372 5,133,445 $12,902,568 Other — Mining claims at cost and expenditures thereon ; : .. §$ 1,982,944 Investment in subsidiary company (note) — Kutcho Creek Asbestos Company Limited: 750,005 shares at cost of $128,305 and advances of $7,187 135,492 2,118,436 15,021,004 $21,652,634

Pace Six

LIABILITIES

Current: Accounts payable and accrued charges $ 556,853 Dividend payable January 25, 1963 594,000 Taxes payable 693,189 Accumulated tax reductions applicable to future years Capital and surplus: Capital — Authorized: 4,000,000 shares without nominal or par value u Issued: 3,960,000 shares $8,468,745 Earned surplus

8,274,847

On behalf of the Board:

F. M. CONNELL, Director. C. R. ELLIOTT, Director.

See accompanying note.

Pace SrveN

$ 1,844,042

3,065,000

16,743,592

$21,652,634