| ý | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934For      The Fiscal Year Ended December 31, 2007OR                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ¨ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934For      The Transition Period from ___________ to ________Commission      File Number 0-6247 |

| Delaware(State      or other jurisdiction of incorporation or organization)                             | 75-1256622(I.R.S.      EmployerIdentification      No.)  |
|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|
| 10830      North Central Expressway Suite 175Dallas,      Texas(Address      of principal executive offices) | 75231(Zip      code)                                          |

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| PART      I                                                                                                                                                                                                                                                    |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ITEM      1.   BUSINESS                                                                                                                                                                                                                         |   |   |   |
| General                                                                                                                                                                                                                                                        |   |   | 1 |   |
| International      Operations                                                                                                                                                                                                                                  |   |   | 2 |   |
| Competition                                                                                                                                                                                                                                                    |   |   | 5 |   |
| Environmental      Matters                                                                                                                                                                                                                                     |   |   | 7 |   |
| Personnel                                                                                                                                                                                                                                                      |   |   | 8 |   |
| Available      Information                                                                                                                                                                                                                                     |   |   | 8 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      1A.  RISK FACTORS                                                                                                                                                                                                                          |   |   | 8 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      1B.  UNRESOLVED STAFF COMMENTS                                                                                                                                                                                                             |   |   | 11 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      2.   PROPERTIES                                                                                                                                                                                                                       |   |   |   |   |
| United      States Specialty Products Facility                                                                                                                                                                                                                 |   |   | 11 |   |
| Mexico      Specialty Products Facility                                                                                                                                                                                                                        |   |   | 13 |   |
| Saudi      Arabia Mining Properties                                                                                                                                                                                                                            |   |   | 13 |   |
| United      States Mineral Interests                                                                                                                                                                                                                           |   |   | 19 |   |
| Offices                                                                                                                                                                                                                                                        |   |   | 19 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      3.   LEGAL PROCEEDINGS                                                                                                                                                                                                                |   |   | 21 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                                                                                                                                                         |   |   | 22 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
|  PART      II                                                                                                                                                                                                                                        |   |   |   |   |
| ITEM      5.   MARKET FOR REGISTRANT’S COMMON EQUITY AND      RELATED   SHAREHOLDER   MATTERS      AND ISSUER PURCHASES OF EQUITY SECURITIES                                                                |   |   | 23 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      6.   SELECTED FINANCIAL DATA                                                                                                                                                                                                          |   |   | 24 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF      FINANCIAL  CONDITION AND   RESULTS      OF OPERATION                                                                                                 |   |   |   |   |
| General                                                                                                                                                                                                                                                        |   |   | 24 |   |
| Liquidity      and Capital Resources                                                                                                                                                                                                                           |   |   | 24 |   |
| Results      of Operations                                                                                                                                                                                                                                     |   |   | 27 |   |
| Critical      Accounting Policies                                                                                                                                                                                                                              |   |   | 31 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET    RISK                                                                                                                                                                                    |   |   | 33 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY      DATA                                                                                                                                                                           |   |   | 34 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING   AND      FINANCIAL DISCLOSURE                                                                                                            |   |   | 34 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      9A.  CONTROLS AND PROCEDURES                                                                                                                                                                                                               |   |   | 34 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      9B.  OTHER INFORMATION                                                                                                                                                                                                                     |   |   | 35 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| PART      III                                                                                                                                                                                                                                             |   |   |   |   |
| ITEM      10.   DIRECTORS AND EXECUTIVE OFFICERS OF THE      REGISTRANT                                                                                                                                                                         |   |   | 36 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      11.   EXECUTIVE COMPENSATION                                                                                                                                                                                                          |   |   | 37 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL      OWNERS                    AND      MANAGEMENT AND RELATED STOCKHOLDER MATTERS |   |   | 41 |   |
|                                                                                                                                                                                                                                                           |   |   |   |   |
| ITEM      13.   CERTAIN RELATIONSHIPS AND RELATED      TRANSACTIONS                                                                                                                                                                             |   |   | 43 |   |

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|                                                                      |   |   |   |
|---------------------------------------------------------------------------|--------|--------|--------|
| ITEM      14.   PRINCIPAL ACCOUNTING FEES ANDSERVICES      |   |   | 43     |   |
|                                                                      |   |   |   |   |
| PART      IV                                                         |   |   |   |   |
| ITEM      15.   EXHIBITS, FINANCIAL STATEMENT    SCHEDULES |   |   | 45     |   |

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|   | • | ongoing      instability or changes in a country’s or region’s economic or political      conditions, including inflation, recession, interest rate fluctuations and      actual or anticipated military or political  conflicts; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | trade      regulations and procedures and actions affecting production, pricing and      marketing of products; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | import,      export or other business licensing requirements or requirements relating      to making foreign direct investments, which could affect our ability to      obtain favorable terms for labor and raw materials or lead to penalties or      restrictions; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | difficulties      associated with repatriating cash generated or held abroad in a      tax-efficient manner and changes in tax laws;  and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | fluctuations      in freight costs and disruptions in the transportation and shipping      infrastructure at important geographic points of exit and entry for our      products and shipments. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | speculation      in the press or investment community about, or actual changes in, our      executive team, strategic position, business, organizational structure,      operations, financial condition, financial reporting and results,      effectiveness of cost cutting efforts, prospects or extraordinary      transactions; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | announcements      of new products, services, technological innovations or acquisitions by      the Company or competitors; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | • | quarterly      increases or decreases in revenue, gross margin or earnings, changes in      estimates by the investment community or guidance provided by the Company,      and variations between actual and estimated financial    results. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | combining      product offerings and entering into new markets in which the Company is      not experienced; |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | • | convincing      customers and distributors that the transaction will not diminish client      service standards or business focus, preventing customers and distributors      from deferring purchasing decisions or switching to other suppliers (which      could result in our incurring additional obligations in order to address      customer uncertainty), and coordinating sales, marketing and distribution      efforts; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | minimizing      the diversion of management attention from ongoing business      concerns; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | • | persuading      employees that business cultures are compatible, maintaining employee      morale and retaining key employees, engaging with employee works councils      representing an acquired company’s non-U.S. employees, integrating      employees into the Company, correctly estimating employee benefit costs      and implementing restructuringprograms; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | coordinating      and combining administrative, manufacturing, and other operations,      subsidiaries, facilities and relationships with third parties in      accordance with local laws and other obligations while maintaining      adequate standards, controls andprocedures; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | managing      integration issues shortly after or pending the completion of other      independent transactions. |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

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1

2

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| 1 | “Gossan”      means the rust colored oxidized, capping or staining of a mineral deposit,      generally formed by the oxidation or alteration of iron      sulphide. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 
| 2 | “Dore”      means unrefined gold and silver bullion bars consisting of approximately      90% precious metals which will be further refined to almost pure      metal. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Average      Price               | Spot      Price as of                       |   | Percentage          |   |
|--------|----------------------------------|---------------------------------------------|--------|---------------------|--------|
|   | For 2005-2007                    | 12/28/07                                    |   | Increase (Decrease) |   |
| Gold   | $568.67      per ounce           | $833.75      per ounce                      |   |                | 46.61  | % |
| Silver | $      10.74 per ounce           | $      14.76  per ounce           |   |                | 37.43  | % |
| Copper | $  3.10      per pound | $  3.08  per      pound |   |                | (00.65 | %) |
| Zinc   | $  1.19      per pound | $  1.04  per      pound |   |                | (12.61 | %) |

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| Zone          |   | MineralizedMaterials(Tonnes) |      |   | Copper (%) |   |   | Zinc (%) |   |   | Gold  (g/t) |   |   | Silver (g/t) |   |
|---------------|--------|------------------------------|-----------|--------|-----------------|--------|--------|---------------|--------|--------|-----------------------|--------|--------|-------------------|--------|
| Saadah        |   |                         | 3,872,400 |   |            |   | 1.67   |          |   |   | 4.73                  |   |   |              | 1.00   |   |   |   | 28.36 |   |
| Al      Houra |   |                         | 2,465,230 |   |            |   | 1.22   |          |   |   | 4.95                  |   |   |              | 1.46   |   |   |   | 50.06 |   |
| Moyeath       |   |                         | 874,370   |   |            |   | 0.88   |          |   |   | 8.92                  |   |   |              | 1.29   |   |   |   | 64.85 |   |
| Total         |   |                         | 7,212,000 |   |            |   | 1.42   |          |   |   | 5.31                  |   |   |              | 1.19   |   |   |   | 40.20 |   |

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|                                        |   | Pink      Sheets/OTC Bulletin Board |   |
|---------------------------------------------|--------|-------------------------------------|--------|
|                                        |   | High                                |   |   | Low |   |
| Fiscal      Year Ended December 31, 2007    |   |                                |   |   |   |   |
| First Quarter ended March 31,      2007     |   | $                                   | 3.41   |   |   | $ | 3.30 |   |
| Second Quarter ended June 30,      2007     |   | $                                   | 6.30   |   |   | $ | 6.00 |   |
| Third Quarter ended September 30,      2007 |   | $                                   | 6.07   |   |   | $ | 5.91 |   |
| Fourth Quarter ended December 31,      2007 |   | $                                   | 7.74   |   |   | $ | 7.55 |   |
|                                        |   |                                |   |   |   |   |   |   |
| Fiscal      Year Ended December 31, 2006    |   |                                |   |
| First Quarter ended March 31,      2006     |   | $                                   | 1.70   |   |   | $ | 1.51 |   |
| Second Quarter ended June 30,      2006     |   | $                                   | 1.54   |   |   | $ | 1.38 |   |
| Third Quarter ended September 30,      2006 |   | $                                   | 2.58   |   |   | $ | 2.27 |   |
| Fourth Quarter ended December 31,      2006 |   | $                                   | 3.05   |   |   | $ | 2.94 |   |
|                                        |   |                                |   |   |   |   |   |   |

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|                                                    |   | 2007 |    |   | 2006   |   |   | 2005   |   |   | 2004   |   |   | 2003 |   |
|---------------------------------------------------------|--------|------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Revenues                                                |   | $    | 108,638 |   |   | $      | 98,502 |   |   | $      | 82,416 |   |   | $    | 59,793 |   |   | $ | 39,625 |   |
| Net      Income (Loss)                                  |   | $    | 7,771   |   |   | $      | 7,875  |   |   | $      | 16,636 |   |   | $    | (2,551 | ) |   | $ | (3,505 | ) |
| Net      Income (Loss) Per Share-Diluted                |   | $    | 0.33    |   |   | $      | 0.34   |   |   | $      | 0.73   |   |   | $    | (.11   | ) |   | $ | (.15 | ) |
| Total      Assets (at December 31)                      |   | $    | 84,221  |   |   | $      | 71,590 |   |   | $      | 66,974 |   |   | $    | 51,048 |   |   | $ | 52,672 |   |
| Notes      Payable (at December 31)                     |   | $    | 11,012  |   |   | $      | 11,013 |   |   | $      | 11,026 |   |   | $    | 11,744 |   |   | $ | 11,744 |   |
| Current      Portion of Long-Term Debt (at December 31) |   | $    | 31      |   |   | $      | 489    |   |   | $      | 1,426  |   |   | $    | 3,071  |   |   | $ | 3,170 |   |
| Total      Long-Term Obligations(at      December 31)   |   | $    | 9,078   |   |   | $      | 5,108  |   |   | $      | 9,839  |   |   | $    | 4,916  |   |   | $ | -- |   |

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|                                                                                            |   | Payments      due by period |       |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
| Contractual Obligations                                                                         |   | Total                       |       |   | Less      than1 year |   |   | 1-3      years |   |   | 3-5      years |   |   | More      than 5 years |   |
| Long-Term      Debt Obligations                                                                 |   | $                           | 9,058,726  |   |   |   | --- |   |   | $ | 6,058,726 |   |   | $ | 3,000,000 |   |   |   | --- |   |
| Capital      Lease Obligations                                                                  |   |                        | 52,994     |   |   | $ | 33,471 |   |   |   | 19,523 |   |   |   | --- |   |   |   | --- |   |
| Operating      Lease Obligations                                                                |   |                        | 2,568,000  |   |   |   | 808,500 |   |   |   | 234,600 |   |   |   | 234,600 |   |   | $ | 1,290,300 |   |
| Purchase      Obligations                                                                       |   |                        | ---        |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Other      Long-Term Liabilities Reflected on the Company’s Balance Sheet under      GAAP |   |                        | ---        |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |
| Total                                                                                           |   | $                           | 11,679,720 |   |   | $ | 841,971 |   |   | $ | 6,312,849 |   |   | $ | 3,234,600 |   |   | $ | 1,290,300 |   |

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|                                      |   | 2007                |    |   | 2006   |   |   | 2005   |   |
|-------------------------------------------|--------|---------------------|---------|--------|--------|--------|--------|--------|--------|
| TOCCO                                     |   | (in      thousands) |    |
| Product      Sales                        |   | $                   | 103,205 |   |   | $      | 93,855 |   |   | $ | 76,268 |   |
| Toll      Processing                      |   | $                   | 5,433   |   |   | $      | 4,647  |   |   | $ | 4,105 |   |
| Gross      Revenue                        |   | $                   | 108,638 |   |   | $      | 98,502 |   |   | $ | 80,373 |   |
|                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| Volume      of sales (thousand gallons)   |   |                | 40,144  |   |   |   | 38,073 |   |   |   | 34,826 |   |
| COIN                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| Gross      Revenue                        |   |                | -0-     |   |   |   | -0-    |   |   | $ | 2,043 |   |
|                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| TOCCO                                     |   |                |    |   |   |   |   |   |   |   |   |   |
| Cost      of Materials                    |   | $                   | 66,989  |   |   | $      | 60,131 |   |   | $ | 45,638 |   |
| Total      Operating Expense              |   | $                   | 22,696  |   |   | $      | 19,758 |   |   | $ | 17,989 |   |
| Natural      Gas Expense                  |   | $                   | 6,109   |   |   | $      | 5,707  |   |   | $ | 4,743 |   |
| General      & Administrative Expense |   | $                   | 5,687   |   |   | $      | 4,600  |   |   | $ | 4,281 |   |
|                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| COIN                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| Cost      of Materials                    |   |                | -0-     |   |   |   | -0-    |   |   | $ | 503 |   |
| Total      Operating Expense              |   |                | -0-     |   |   |   | -0-    |   |   | $ | 654 |   |
| Natural      Gas Expense                  |   |                | -0-     |   |   |   | -0-    |   |   | $ | 294 |   |
| General      & Administrative Expense |   |                | -0-     |   |   |   | -0-    |   |   | $ | 388 |   |
|                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| Capital      Expenditures                 |   | $                   | 10,799  |   |   | $      | 3,734  |   |   | $ | 3,491 |   |

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| (in      thousands)             |   | 2007 |   |   | 2006   |   |   | 2005   |   |
|---------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| General      corporate expenses |   | $    | 2,178  |   |   | $      | 1,242  |   |   | $ | 187 |   |

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| Name;      Current Positions Held                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Age    |     | Date      of Election |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|-----------------------|
|  Hatem      El      Khalidi                                                                           President      of the Company since 1975; prior to 1975 Vice President of the Company;      Chief Executive Officer of the Company since February 1994 |   |   | 83       |                  |  April      1968 |
|  Nicholas      N. Carter ……………………………………………….Executive      Vice President, Chief Executive Officer of the Company since January 2008,      President of the Petrochemical Company since 1987                                                                                                                                                                                                                                                                                                                                            |   |   |  61 |                  |  August      2004 |
|  Robert      E. Kennedy ……………………………………………….Chairman      of the Audit and Compensation Committees; Member of Nominating      Committee                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 64       |                  |  January      2007 |
|  Ghazi      Sultan                                                                           Chairman      of the Nominating Committee; Member of  Compensation and Audit      Committees                                                          |   |   | 70       |                  |  September      1993 |
| Ibrahim      Al      Moneef                                                                           Member      of the Compensation and Nominating Committees                                                                                                   |   |   | 67       |                  |  April      2007 |
| Mohammed      Al      Omair                                                                           Member      of  Audit, Compensation and Nominating Committees                                                                                |   |   | 64       |                  |  October      2007 |
| Charles      Goehringer,      Jr.                                                                           Member      of Compensation and Nominating Committees                                                                                                 |   |   | 49       |                  |  October      2007 |

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| Name                    | Positions                                                                                  |   | Age    |   |
|-------------------------|--------------------------------------------------------------------------------------------|--------|--------|--------|
| Hatem      El Khalidi   | President,      Chief Executive Officer and Director                                       |   |   | 83     |   |
| Nicholas      N. Carter | Executive      Vice President, Chief Operating Officer and Director/President -      TOCCO |   |   | 61     |   |
| Connie      Cook        | Secretary      and Treasurer/Secretary - TOCCO                                             |   |   | 45     |   |

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| Name      andPrincipal Position                                                                                        | Year   |   | Salary($) (1) |    |   | Bonus($) |   |   | RestrictedStockAward(s)($) |   |   | Stock      Award(s) |   |   | Non-EquityIncentivePlanCompensation($) |   |   | Change      in Pension Value and Nonqualified Deferred Compensation      Earnings($) |   |   | All      OtherCompensation($) (2)(3) |   |   | Total      ($) |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|---------|--------|----------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|----------------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------|--------|
| Hatem      El Khalidi,President      and ChiefExecutive      Officer, Director                                         | 2007   |   | $             | 72,000  |   |     |   | --     |                       |   |   | --                  |   |   |                                   | --     |   |                                                                                 |   | --     |                                 |   |   | --             |   |   | $ | 8,000 |   |   | $ | 80,000 |   |
| 2006                                                                                                                   |   | $      | 72,000        |    |   |     | --     |   |                       |   | --     |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 8,000 |   |   | $ | 80,000 |   |
| 2005                                                                                                                   |   | $      | 72,000        |    |   |     | --     |   |                       |   | --     |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 8,000 |   |   | $ | 80,000 |   |
| Nicholas      N. Carter,Executive      Vice President and Chief Operating OfficerPresident,      Petrochemical Company | 2007   |   | $             | 172,059 |   |     | $      | 96,506 |                       |   | $      | 66,000              |   |   |                                   | --     |   |                                                                                 |   | --     |                                 |   |   | --             |   |   | $ | 10,324 |   |   | $ | 344,889 |   |
| 2006                                                                                                                   |   | $      | 163,044       |    |   | $        | 97,994 |   |                       | $      | 30,000 |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 9,783 |   |   | $ | 300,821 |   |
| 2005                                                                                                                   |   | $      | 155,748       |    |   | $        | 45,705 |   |                       |   | --     |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 9,288 |   |   | $ | 210,741 |   |
| Connie      J. Cook,Secretary      and Treasurer                                                                       | 2007   |   | $             | 108,500 |   |     | $      | 70,085 |                       |   | $      | 33,000              |   |   |                                   | --     |   |                                                                                 |   | --     |                                 |   |   | --             |   |   | $ | 6,510 |   |   | $ | 218,095 |   |
| 2006                                                                                                                   |   | $      | 102,816       |    |   | $        | 73,057 |   |                       | $      | 15,000 |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 6,169 |   |   | $ | 197,042 |   |
| 2005                                                                                                                   |   | $      | 98,215        |    |   | $        | 46,067 |   |                       |   | --     |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 5,893 |   |   | $ | 150,175 |   |
| Mark      D. Williamson,Vice      President of Marketing, Petrochemical Company                                        | 2007   |   | $             | 190,393 |   |     | $      | 70,023 |                       |   |   | --                  |   |   |                                   | --     |   |                                                                                 |   | --     |                                 |   |   | --             |   |   | $ | 11,424 |   |   | $ | 271,840 |   |
| 2006                                                                                                                   |   | $      | 193,830       |    |   | $        | 80,124 |   |                       | $      | 15,000 |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 11,630 |   |   | $ | 300,584 |   |
| 2005                                                                                                                   |   | $      | 199,269       |    |   | $        | 53,116 |   |                       |   | --     |                |   |   | --                                     |   |   |                                                                                 | --     |   |                                 |   | --     |           |   | $ | 11,956 |   |   | $ | 264,341 |   |

| (1) | Includes      $0, $0 and $11,957 in compensation for the fiscal years ended December 31,      2007, 2006, and 2005, respectively, that was deferred at the election of      Mr. El Khalidi.  All present deferred compensation owing to Mr.      El Khalidi aggregating $38,053 is considered, and future deferred      compensation owing to Mr. El Khalidi, if any, will be considered payable      to Mr. El Khalidi on demand. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      $8,000 in termination benefits for each of the fiscal years ended December      31, 2007, 2006, and 2005, respectively, that was accrued for Mr. El      Khalidi in accordance with Saudi Arabian employment laws. The total amount      of accrued termination benefits due to Mr. El Khalidi as of December 31,      2007 was $308,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      amounts as shown for Mr. Carter, Ms. Cook, and Mr. Williamson that were      contributed on the employee’s behalf into the Company’s 401(k)      plan. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                  |   | Number      of Securities Underlying Unexercised Options (#) Exercisable |    |   | Number      of Securities Underlying Unexercised Options (#)      Unexercisable |   |   | Equity      Incentive Plan Awards:Number      of Securities Underlying Unexercised Unearned Options(#) |   |   | Option Exercise Price |   | Option      Expiration Date |
|-----------------------|--------|--------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|-----------------------------|
| Hatem      El Khalidi |   |                                                                     | 400,000 |   |                                                                                 |   | -      |                                                                                                   |   |   | -                               |   |                        | $ | 1.00 |   | Undetermined |
| Ghazi      Sultan     |   |                                                                     | 100,000 |   |                                                                                 |   | -      |                                                                                                   |   |   | -                               |   |                        | $ | 2.00 |   | 08/28/09 |

| Name                    |   | Number      of Shares Acquired on Vesting      (#) |   |   | Value      Realized on Vesting    ($) |   |
|-------------------------|--------|----------------------------------------------------|--------|--------|---------------------------------------|--------|
| Nicholas      N. Carter |   |                                               | 20,000 |   |                                  | $      | 66,000 |   |
| Connie      Cook        |   |                                               | 10,000 |   |                                  | $      | 33,000 |   |

| Name                    | Grant Date          |   | All      Other Stock Awards: Number of Shares of Stock or Units (#) |   |   | Grant      Date Fair Value of Stock Awards |   |
|-------------------------|---------------------|--------|-------------------------------------------------------------------------------|--------|--------|--------------------------------------------|--------|
| Nicholas      N. Carter | March      20, 2007 |   |                                                                          | 20,000 |   |                                       | $      | 66,000 |   |
| Connie      Cook        | March      20, 2007 |   |                                                                          | 10,000 |   |                                       | $      | 33,000 |   |

----

|  Name      and AddressOf      Beneficial Owner                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | SharesBeneficiallyOwned      (1) |         |   | Percentof      Class |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------------|--------|----------------------|--------|
|  Fahad      Mohammed Saleh Al      Athel                                                                               c/o      Saudi FalP.      O. Box 4900Riyadh,      Saudi Arabia  11412 |   |                             | 3,603,568    |   |                 |   | 15.7 | % |
|  Mohammad      Salem ben      Mahfouz                                                                               c/o      National Commercial BankJeddah,      Saudi Arabia                         |   |                             | 1,500,000    |   |                 |   | 6.6 | % |
|  Harb      S. Al      Zuhair                                                                               P.O.      Box 3750Riyadh,      Saudi Arabia                                                 |   |                             | 1,423,750    |   |                 |   | 6.2 | % |
|  Prince      Talal Bin Abdul      Aziz                                                                               P.      O. Box 930Riyadh,      Saudi Arabia                                       |   |                             | 1,272,680    |   |                 |   | 5.6 | % |
|  Hatem      El      Khalidi                                                                               10830      North Central Expressway, Suite 175Dallas,      Texas 75231                       |   |                             | 460,000      | (2)    |                 |   | 2.0 | % |
|  Ghazi      Sultan                                                                               P.O.      Box 5360Jeddah,      Saudi Arabia  21422                                          |   |                             | 225,000      | (3)    |                 |   | 1.0 | % |
|  Nicholas      N.      Carter                                                                               P.O.      Box 1636Silsbee,      Texas 77656                                                |   |                             |  92,500 |   |                 |   | * |   |
|  Charles      W. Goehringer,      Jr.                                                                               P.O.      Box 4915Beaumont,      Texas 77704                                       |   |                             |  3,000  |   |                 |   |  * |   |

----

|  Robert      E.      Kennedy.                                                                               450      Gears Rd., Suite 290Houston,      Texas 77067 |   |   | -            |   |   |   |  * |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|---------|--------|
|   Mohammed      O. Al      Omair.                                                                               P.      O. Box 4900Riyadh,      Saudi Arabia  |   |   |   -     |   |   |   |  * |   |
|  Ibrahim      Al      Moneef.                                                                               P.      O. Box 10850Riyadh,      Saudi Arabia          |   |   | -            |   |   |   |  * |   |
|  Connie      J.      Cook.                                                                               P.      O. Box 1636Silsbee,      Texas  77656   |   |   |  20,000 |   |   |   |  * |   |
|  Mark      Williamson.                                                                               P.      O. Box 1636Silsbee,      Texas  77656       |   |   |  10,000 |   |   |   |  * |   |
|  All      directors and executive officers as a group (8 persons)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 810,500      | (4)    |   |   | 3.5     | %      |

| (1) | Unless      otherwise indicated, to the knowledge of the Company, all shares are owned      directly and the owner has sole voting and investment    power. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      400,000 shares which Mr. El Khalidi has the right to acquire through the      exercise of presently exercisable stock options. Excludes 385,000 shares      owned by Ingrid El Khalidi, Mr. El Khalidi’s wife, and 443,000 shares      owned by relatives of Hatem ElKhalidi. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      100,000 shares which Mr. Sultan has the right to acquire through the      exercise of presently exercisable stockoptions. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      500,000 shares which certain directors and executive officers have the      right to acquire through the exercise of stock options or other rights      exercisable presently or within 60 days. Excludes 385,000 shares owned by      Ingrid El Khalidi, the wife of Hatem El Khalidi, the President, Chief      Executive Officer and a director of the Company, and 443,000 shares owned      by relatives of Hatem El Khalidi. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                    |   | 2007 |    |   |   |   |   | 2006   |   |
|-------------------------|--------|------|---------|--------|--------|--------|--------|--------|--------|
| Audit      Fees         |   | $    | 209,325 |   |   |   |   |   | $      | 192,176 |   |
| Audit-Related      Fees |   | $    | 0       |   |   |   |   |   | $      | 0 |   |
| Tax      Fees           |   | $    | 23,200  |   |   |   |   |   | $      | 16,436 |   |
| All      Other Fees     |   | $    |    |   |   |   |   |   |   | $ | 0 |   |

----

----

|   | Reports      of Independent Registered Public Accounting  Firm. |
|--------|-----------------------------------------------------------------|

|   | Consolidated      Balance Sheets dated December 31, 2007 and2006. |
|--------|-------------------------------------------------------------------|

|   | Consolidated      Statements of Income for the three years ended December 31,      2007. |
|--------|------------------------------------------------------------------------------------------|

|   | Consolidated      Statement of Stockholders’ Equity for the three years ended December 31,      2007. |
|--------|-------------------------------------------------------------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows for the three years ended December 31,      2007. |
|--------|----------------------------------------------------------------------------------------------|

|   | Notes      to Consolidated FinancialStatements. |
|--------|-------------------------------------------------|

|   | Schedule      II -- Valuation and Qualifying Accounts for the three years ended December      31, 2007. |
|--------|---------------------------------------------------------------------------------------------------------|

| ExhibitNumber | Description                                                                                                                                                                                                                                                                                                                                               |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(a)          |  - Certificate      of Incorporation of the Company as amended through the Certificate of      Amendment filed with the Delaware Secretary of State on July 19, 2000      (incorporated by reference to Exhibit 3(a) to the Company’s Annual Report      on Form 10-K for the year ended December 31, 2000 (File No.      0-6247)).  |
| 3(b)          |  - Restated      Bylaws of the Company dated April 26, 2007 (incorporated by reference to      Item 5.03 to the Company’s Form 8-K dated April 26, 2007 (File No.      0-6247)).                                                                                                                                                     |
| 10(a)         |  - Loan      Agreement dated January 24, 1979 between the Company, National Mining      Company and the Government of Saudi Arabia (incorporated      by reference to Exhibit 10(b) to the Company’s Annual Report on Form 10-K      for the year ended December 31, 1999 (File No. 0-6247)).                                   |

----

| 10(b) |  - Mining      Lease Agreement effective May 22, 1993 by and between the Ministry of      Petroleum and Mineral Resources and the Company (incorporated      by reference to Exhibit 10(c) to the Company’s Annual Report on Form 10-K      for the year ended December 31, 1999 (File No. 0-6247)).                                                                           |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(c) |  - Equipment      Lease Agreement dated November 14, 2003, between Silsbee Trading and      Transportation Corp. and South Hampton Refining Company (incorporated by      reference to Exhibit 10(o) to the Company’s Annual Report on Form 10-K for      the year ended December 31, 2003 (File No. 0-6247)).                                                                      |
| 10(d) |  - Addendum      to Equipment Lease Agreement dated August 1, 2004, between Silsbee Trading      and Transportation Corp. and south Hampton Refining Company (incorporated      by reference to Exhibit 10(q) to the Company’s Quarterly Report on Form      10-Q for the quarter ended September 30, 2004 (File No.      0-6247)).                                                 |
| 10(e) |  - Partnership      Agreement dated August 6, 2006 between Arabian American Development      Company, Thamarat Najran Company, Qasr Al-Ma’adin Corporation, and Durrat      Al-Masani’ Corporation (incorporated by reference to Exhibit 10(i) to the      Company’s Quarterly Report on Form 10-Q/A for the quarter ended September      30, 2006 (file No. 0-6247)).  |
| 10(f) |  - Judicial      Agreement dated May 19, 2005 between Fabricante Y Comercializadora Beta,      S.A. de C.V. and Productos Coin, S.A. de C.V. (incorporated by reference      to Exhibit 10(r) to the Company’s Quarterly Report on Form 10-Q for the      quarter ended June 30, 2005 (file No. 0-6247)).                                                                           |
| 10(g) |  - Agreement      dated June 6, 2005 between Fabricante Y Comercializadora Beta, S.A. de      C.V. and Productos Quimicos Coin, S.A. de C.V. (incorporated by reference      to Exhibit 10(s) to the Company’s Quarterly Report on Form 10-Q for the      quarter ended June 30, 2005 (file No. 0-6247)).                                                                           |
| 10(h) |  - Mercantile      Shares Purchase and Sale Agreement dated June 9, 2005 between Texas Oil      & Chemical Co. II. Inc. and Ernesto Javier Gonzalez Castro and      Mauricio Ramon Arevalo Mercado (incorporated by reference to Exhibit 10(t)      to the Company’s Quarterly Report on Form 10-Q for the quarter ended      September 30, 2005 (file No. 0-6247)).            |

----

| 10(i)  |  - Financial      Legal Service and Advice Agreement dated August 5, 2006 between Arabian      American Development Company, Nassir Ali Kadasa, and Dr. Ibrahim      Al-Mounif.  (incorporated by reference to Exhibit 10(j) to the      Company’s Quarterly Report on Form 10-Q for the quarter ended September      30, 2006 (file No. 0-6247)).                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(j)* |  - Retirement      Awards Program dated January 17, 2007 between Arabian American Development      Company and Jack Crichton (incorporated by reference to Exhibit 10(h) to      the Company’s Quarterly Report on Form 10-Q for the quarter ended March      31, 2007 (file No. 0-6247)).                                                                                       |
| 10(k)* |  - Retirement      Awards Program dated February 16, 2007 between Arabian American      Development Company and Hatem El Khalidi (incorporated by reference to      Exhibit 10(i) to the Company’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 2007 (file No. 0-6247)).                                                                                   |
| 10(l)  |  - Waiver      and Second Amendment to Credit Agreement and First Amendment to Borrower      Security Agreement dated September 19, 2007 between South Hampton      Resources, Inc. and Bank of America, N.A. (incorporated by reference to      Exhibit 10(i) to the Company’s Quarterly Report on Form 10-Q for the      quarter ended September 30, 2007 (file No. 0-6247)).  |
| 14     |  - Code      of Ethics for Senior Financial Officers (incorporated by reference to      Exhibit 14 to the Company’s Annual Report on Form 10-K for the year ended      December 31, 2003 (File No. 0-6247)).                                                                                                                                                                     |
| 16     |  - Letter      re change in certifying accountant (incorporated by reference to Exhibit      16 to the Company’s Current Report on Form 8-K/A dated January 31, 2003      (File No. 0-6247)).                                                                                                                                                                                    |
| 21     |  - Subsidiaries      (incorporated by reference to Exhibit 21 to the Company’s Annual Report on      Form 10-K for the year ended December 31, 2001 (File No.      0-6247)).                                                                                                                                                                                                     |
| 24     |  - Power      of Attorney (set forth on the signature page hereto).                                                                                                                                                                                                                                                                                                                    |
| 31.1   |  - Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                       |
| 31.2   |  - Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                       |
| 32.1   |  - Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                        |

----

| 32.2 |  - Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      following reports on Form 8-K were filed during the last quarter of the      period covered by this Report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

| 1.01 |  - Ministerial      Order No. 247 dated October 21, 2007 from the Saudi Arabian Minister of      Commerce and Industry approving the formation of Al Masane Al Kobra Mining      Company.  |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.02 |  - Appointment      of Mohammed Al Omair and Charles W. Goehringer, Jr. to the Company’s Board      of Directors dated October 23, 2007.                                             |

----

| Dated:      March 14, 2008 | By: | /s/ Hatem El      Khalidi |
|----------------------------|-----|---------------------------|

----

| Signature                                                    | Title                                                                                   |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| /s/ Hatem El      KhalidiHatem      El Khalidi               | President,      Chief Executive Officer and Director (principal executive      officer) |
| /s/ Nicholas      CarterNicholas      Carter                 | Executive      Vice President, Chief Operating Officer and Director                     |
| /s/ Connie      CookConnie      Cook                         | Secretary      and Treasurer(principal      financial and accounting officer)           |
| /s/ Charles      Goehringer, Jr.Charles      Goehringer, Jr. | Director                                                                                |
| /s/ Robert      KennedyRobert      Kennedy                   | Director                                                                                |
| /s/ Ghazi      SultanGhazi      Sultan                       |      Director                                                  |
| /s/ Ibrahim Al      MoneefDr.      Ibrahim Al Moneef         |     Director                                                        |
| /s/ Mohammed Al      OmairMohammed      Al Omair             |     Director                                                        |

----

| INDEX      TO FINANCIAL STATEMENTS                                                                                                             | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                           |   |
| Report      of Independent Registered Public Accounting Firm                                                                                   | F-1    |
|                                                                                                                                           |   |
| Report      of Independent Registered Public Accounting Firm on Internal  Control      Over Financial Reporting                      | F-2    |
|                                                                                                                                           |   |
| Consolidated      Balance Sheets at December 31, 2007 and 2006                                                                                 | F-4    |
|                                                                                                                                           |   |
| Consolidated      Statements of Income For the Years Ended   December      31, 2007, 2006 and 2005                              | F-6    |
|                                                                                                                                           |   |
| Consolidated      Statement of Stockholders’ Equity For the Years Ended  December      31, 2007, 2006 and 2005                 | F-8    |
|                                                                                                                                           |   |
| Consolidated      Statements of Cash Flows For the Years Ended  December      31, 2007, 2006 and 2005                                | F-9    |
|                                                                                                                                           |   |
| Notes      to Consolidated Financial Statements                                                                                                | F-11   |
|                                                                                                                                           |   |
|  INDEX      TO FINANCIAL STATEMENT SCHEDULES                                                                                              |   |
|                                                                                                                                           |   |
| Report      of Independent Registered Public Accounting Firm on    Schedules                                                                   | F-34   |
|                                                                                                                                           |   |
| Schedule      II – Valuation and Qualifying Accounts For the Three Years      Ended  December      31, 2007                    | F-35   |
|                                                                                                                                           |   |
|  INDEX      TO SUPPLEMENTAL INDEPENDENT AUDITORS’ REPORTS                                                                           |   |
|                                                                                                                                           |   |
| Independent      Auditors’ Report on Productos Quimicos Coin, S.A. DE D.V.  For      the Financial Statements at June 12, 2005 | F-36   |

----

----

----

----

|                                                                                                                                                                                                              |   | December 31, |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|
|                                                                                                                                                                                                              |   | 2007         |        |   | 2006 |   |
| ASSETS                                                                                                                                                                                                            |   |         |        |   |   |   |
| CURRENT      ASSETS                                                                                                                                                                                               |   |         |        |   |   |   |
|   Cash      and cash equivalents                                                                                                                                                                        |   | $            | 4,789,924   |   |   | $ | 2,939,022 |   |
|    Trade      Receivables, Net of allowance for doubtful accounts     of      $35,000 and $35,000, respectively                                                           |   |         | 12,310,561  |   |   |   | 8,893,182 |   |
|    Current      portion of notes receivable, net of discount and     deferred      gross profit of $101,620 and $200,492,      respectively |   |         | 609,777     |   |   |   | 605,955 |   |
|    Financial      contracts                                                                                                                                                                        |   |         | 206,832     |   |   |   | -- |   |
|    Financial      contract deposits                                                                                                                                                                |   |         | --          |   |   |   | 1,500,000 |   |
|    Prepaid      expenses and other assets                                                                                                                                                          |   |         | 648,313     |   |   |   | 404,228 |   |
|    Inventories                                                                                                                                                                                     |   |         | 2,887,636   |   |   |   | 3,576,317 |   |
|    Taxes      receivable                                                                                                                                                                           |   |         | 1,070,407   |   |   |   | 619,598 |   |
|                                                                                                                                                                                                              |   |         |        |   |   |   |   |   |
|           Total      current assets                                                                                                                             |   |         | 22,523,450  |   |   |   | 18,538,302 |   |
|                                                                                                                                                                                                              |   |         |        |   |   |   |   |   |
|   PLANT,      PIPELINE, AND EQUIPMENT – AT COST                                                                                                                                                   |   |         | 32,229,709  |   |   |   | 21,643,903 |   |
|     LESS      ACCUMULATED DEPRECIATION                                                                                                                                                        |   |         | (12,463,214 | ) |   |   | (11,017,503 | ) |
|                                                                                                                                                                                                              |   |         |        |   |   |   |   |   |
|   PLANT,      PIPELINE, AND EQUIPMENT, NET                                                                                                                                                              |   |         | 19,766,495  |   |   |   | 10,626,400 |   |
|                                                                                                                                                                                                              |   |         |        |   |   |   |   |   |
|   AL MASANE      PROJECT                                                                                                                                                                                |   |         | 37,468,080  |   |   |   | 37,137,022 |   |
|   OTHER      INTERESTS IN SAUDI ARABIA                                                                                                                                                                  |   |         | 2,431,248   |   |   |   | 2,431,248 |   |
|   MINERAL      PROPERTIES IN THE UNITED STATES                                                                                                                                                          |   |         | 1,084,617   |   |   |   | 1,084,711 |   |
|   NOTES      RECEIVABLE, net of discount of $70,421 and     $172,041,      respectively, net of current portion                                                                |   |         | 935,937     |   |   |   | 1,545,714 |   |
|   OTHER      ASSETS                                                                                                                                                                                     |   |         | 10,938      |   |   |   | 226,769 |   |
|                                                                                                                                                                                                              |   |         |        |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                                                 |   | $            | 84,220,765  |   |   | $ | 71,590,166 |   |

----

|                                                                                                                                                                                                                                                    |   | December 31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                                                                                                                                                    |   | 2007         |       |   | 2006 |   |
|  LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                   |   |         |       |   |   |   |
|   CURRENT      LIABILITIES                                                                                                                                                                                                                    |   |         |       |   |   |   |
|     Accounts      payable                                                                                                                                                                                                           |   | $            | 4,524,042  |   |   | $ | 2,989,203 |   |
|     Accrued      interest                                                                                                                                                                                                           |   |         | 85,552     |   |   |   | 59,857 |   |
|     Financial      contracts                                                                                                                                                                                                        |   |         | --         |   |   |   | 765,672 |   |
|     Accrued      liabilities                                                                                                                                                                                                        |   |         | 1,931,822  |   |   |   | 1,210,054 |   |
|     Accrued      liabilities in Saudi Arabia                                                                                                                                                                                        |   |         | 1,406,801  |   |   |   | 1,645,257 |   |
|     Notes      payable                                                                                                                                                                                                              |   |         | 11,012,000 |   |   |   | 11,012,500 |   |
|     Current      portion of long-term debt                                                                                                                                                                                          |   |         | 30,573     |   |   |   | 488,828 |   |
|     Current      portion of other liabilities                                                                                                                                                                                       |   |         | 630,731    |   |   |   | 584,349 |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|           Total      current liabilities                                                                                                                                                              |   |         | 19,621,521 |   |   |   | 18,755,720 |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|   LONG-TERM      DEBT, net of current portion                                                                                                                                                                                                 |   |         | 9,077,737  |   |   |   | 5,108,309 |   |
|   POST      RETIREMENT BENEFIT                                                                                                                                                                                                                |   |         | 441,500    |   |   |   | -- |   |
|   OTHER      LIABILITIES, net      of current portion                                                                                                                                                                                         |   |         | 990,375    |   |   |   | 1,621,105 |   |
|   DEFERRED      INCOME TAXES                                                                                                                                                                                                                  |   |         | 677,131    |   |   |   | 540,000 |   |
|   MINORITY      INTEREST IN CONSOLIDATED SUBSIDIARIES                                                                                                                                                                                         |   |         | 794,646    |   |   |   | 817,558 |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|   COMMITMENTS      AND CONTINGENCIES                                                                                                                                                                                                          |   |         |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                                                                                                                                               |   |         |       |   |   |   |   |   |
|   Common Stock      - authorized 40,000,000 shares of $.10 par value;      issued      and outstanding, 22,601,994 and 22,571,994 shares      in      2007 and 2006, respectively |   |         | 2,260,199  |   |   |   | 2,257,199 |   |
|   Additional      Paid-in Capital                                                                                                                                                                                                             |   |         | 37,183,206 |   |   |   | 37,087,206 |   |
|   Retained      Earnings                                                                                                                                                                                                                      |   |         | 13,174,450 |   |   |   | 5,403,069 |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|        Total      stockholders' equity                                                                                                                                                                               |   |         | 52,617,855 |   |   |   | 44,747,474 |   |
|                                                                                                                                                                                                                                                    |   |         |       |   |   |   |   |   |
|      TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                           |   | $            | 84,220,765 |   |   | $ | 71,590,166 |   |

----

|                                                                                                                                                                                                     |   | 2007   |        |   | 2006   |   |       | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
| Revenues                                                                                                                                                                                                 |   |   |        |   |   |   |       |   |   |
|   Petrochemical      product sales                                                                                                                                                             |   | $      | 103,204,565 |   |   | $      | 93,854,726 |   |   | $ | 76,268,360 |   |
|   Processing      fees                                                                                                                                                                         |   |   | 5,433,550   |   |   |   | 4,647,431  |   |   |   | 4,105,227 |   |
|                                                                                                                                                                                                     |   |   | 108,638,115 |   |   |   | 98,502,157 |   |   |   | 80,373,587 |   |
| Operating      costs and expenses                                                                                                                                                                        |   |   |        |   |   |   |       |   |   |   |   |   |
|   Cost      of petrochemical product sales and processing                                                                                                                                      |   |   | 88,861,365  |   |   |   | 79,888,772 |   |   |   | 63,626,497 |   |
|    Gross      Profit                                                                                                                                                                      |   |   | 19,776,750  |   |   |   | 18,613,385 |   |   |   | 16,747,090 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| General      and Administrative Expenses                                                                                                                                                                 |   |   |        |   |   |   |       |   |   |   |   |   |
|   General      and administrative                                                                                                                                                              |   |   | 7,619,280   |   |   |   | 5,842,564  |   |   |   | 4,468,253 |   |
|   Depreciation                                                                                                                                                                                 |   |   | 1,074,762   |   |   |   | 859,059    |   |   |   | 651,607 |   |
|                                                                                                                                                                                                     |   |   | 8,694,042   |   |   |   | 6,701,623  |   |   |   | 5,119,860 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Operating      income                                                                                                                                                                                    |   |   | 11,082,708  |   |   |   | 11,911,762 |   |   |   | 11,627,230 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Other      income (expense)                                                                                                                                                                              |   |   |        |   |   |   |       |   |   |   |   |   |
|   Interest      income                                                                                                                                                                         |   |   | 297,494     |   |   |   | 276,184    |   |   |   | 95,214 |   |
|   Interest      expense                                                                                                                                                                        |   |   | (142,696    | )      |   |   | (704,282   | )      |   |   | (792,976 | ) |
|   Minority      interest                                                                                                                                                                       |   |   | 22,912      |   |   |   | 17,535     |   |   |   | 8,437 |   |
|   Miscellaneous      income (expense)                                                                                                                                                          |   |   | (62,794     | )      |   |   | 383,545    |   |   |   | 16,559 |   |
|                                                                                                                                                                                                     |   |   | 114,916     |   |   |   | (27,018    | )      |   |   | (672,766 | ) |
|           Income      from continuing operations             before      income taxes |   |   | 11,197,624  |   |   |   | 11,884,744 |   |   |   | 10,954,464 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Income      tax expense                                                                                                                                                                                  |   |   | 3,426,243   |   |   |   | 4,009,416  |   |   |   | 1,133,787 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
|        Net      income from continuing operations                                                                                                                     |   |   | 7,771,381   |   |   |   | 7,875,328  |   |   |   | 9,820,677 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
| Discontinued      operations                                                                                                                                                                             |   |   |        |   |   |   |       |   |   |   |   |   |
|   Income      from operations of Coin                                                                                                                                                          |   |   | -           |   |   |   | -          |   |   |   | 989,856 |   |
|   Gain      on disposal of Coin                                                                                                                                                                |   |   | -           |   |   |   | -          |   |   |   | 5,825,668 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
|        Income      from discontinued operations                                                                                                                       |   |   | -           |   |   |   | -          |   |   |   | 6,815,524 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |
|        Net      income                                                                                                                                                |   | $      | 7,771,381   |   |   | $      | 7,875,328  |   |   | $ | 16,636,201 |   |
|                                                                                                                                                                                                     |   |   |        |   |   |   |       |   |   |   |   |   |

----

|                                                      |   | 2007   |       |   | 2006   |   |       | 2005   |   |
|-----------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Basic      weighted average net income per common share   |   |   |       |   |   |   |       |   |   |
|   Continuing      operations                    |   | $      | 0.34       |   |   | $      | 0.35       |   |   | $ | 0.43 |   |
|   Discontinued      operations                  |   |   | -          |   |   |   | -          |   |   |   | 0.30 |   |
|   Net      Income                               |   | $      | 0.34       |   |   | $      | 0.35       |   |   | $ | 0.73 |   |
|                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic      weighted average number                        |   |   |       |   |   |   |       |   |   |   |   |   |
|   of      common shares outstanding             |   |   | 22,895,394 |   |   |   | 22,804,567 |   |   |   | 22,731,994 |   |
|                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Diluted      weighted average net income per common share |   |   |       |   |   |   |       |   |   |   |   |   |
|   Continuing      operations                    |   | $      | 0.33       |   |   | $      | 0.34       |   |   | $ | 0.43 |   |
|   Discontinued      operations                  |   |   | -          |   |   |   | -          |   |   |   | 0.30 |   |
|   Net      Income                               |   | $      | 0.33       |   |   | $      | 0.34       |   |   | $ | 0.73 |   |
|                                                      |   |   |       |   |   |   |       |   |   |   |   |   |
| Diluted      weighted average number                      |   |   |       |   |   |   |       |   |   |   |   |   |
|   of      common shares outstanding             |   |   | 23,291,669 |   |   |   | 23,030,573 |   |   |   | 22,731,994 |   |

----

|                                                                      |   |         |       |   |    |   |      | Additional |   |   | Retained   |   |   |   |        |
|---------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|-----------|------------|--------|--------|------------|--------|--------|--------|-------------|
|                                                                      |   | Common stock |       |   | paid-in |   |      | Earnings   |   |   |       |   |
|                                                                      |   | Shares       |       |   | Amount  |   |      | capital    |   |   | (Deficit)  |   |   | Total  |        |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |
| DECEMBER      31, 2004                                                    |   |         | 22,431,994 |   |    | $      | 2,243,199 |       |   | $      | 36,512,206 |   |   | $      | (19,108,460 | ) |   | $ | 19,646,945 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|    Net      income                                         |   |         | -          |   |    |   | -         |       |   |   | -          |   |   |   | 16,636,201  |   |   |   | 16,636,201 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
| DECEMBER      31, 2005                                                    |   |         | 22,431,994 |   |    |   | 2,243,199 |       |   |   | 36,512,206 |   |   |   | (2,472,259  | ) |   |   | 36,283,146 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|   Common      Stock                                             |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|      Issued      to Employees                    |   |         | 40,000     |   |    |   | 4,000     |       |   |   | 56,000     |   |   |   | -           |   |   |   | 60,000 |   |
|      Issued      to Directors                    |   |         | 100,000    |   |    |   | 10,000    |       |   |   | 290,000    |   |   |   | -           |   |   |   | 300,000 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|   Stock      options issued to    directors |   |         | -          |   |    |   | -         |       |   |   | 229,000    |   |   |   | -           |   |   |   | 229,000 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|    Net      income                                         |   |         | -          |   |    |   | -         |       |   |   | -          |   |   |   | 7,875,328   |   |   |   | 7,875,328 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
| DECEMBER      31, 2006                                                    |   |         | 22,571,994 |   |    | $      | 2,257,199 |       |   | $      | 37,087,206 |   |   | $      | 5,403,069   |   |   | $ | 44,747,474 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
| Common      Stock                                                         |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|   Issued      to Employees                                      |   |         | 30,000     |   |    |   | 3,000     |       |   |   | 96,000     |   |   |   | -           |   |   |   | 99,000 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
|   Net      Income                                               |   |         | -          |   |    |   | -         |       |   |   | -          |   |   |   | 7,771,381   |   |   |   | 7,771,381 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |
| DECEMBER      31, 2007                                                    |   |         | 22,601,994 |   |    | $      | 2,260,199 |       |   | $      | 37,183,206 |   |   | $      | 13,174,450  |   |   | $ | 52,617,855 |   |
|                                                                      |   |         |       |   |    |   |      |       |   |   |       |   |   |   |        |   |   |   |   |   |

----

|                                                                                                                                               |   | 2007   |        |   | 2006   |   |        | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Operating      activities                                                                                                                          |   |   |        |   |   |   |        |   |   |
|   Net      income                                                                                                                        |   | $      | 7,771,381   |   |   | $      | 7,875,328   |   |   | $ | 16,636,201 |   |
|   Adjustments      to reconcile net income                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
|     to      net cash provided by operating activities:                                                                         |   |   |        |   |   |   |        |   |   |   |   |   |
|     Depreciation                                                                                                               |   |   | 1,074,762   |   |   |   | 859,059     |   |   |   | 651,607 |   |
|     Accretion      of notes receivable discounts                                                                               |   |   | (148,355    | )      |   |   | (166,959    | )      |   |   | (50,724 | ) |
|     Accretion      of unrealized gross profit                                                                                  |   |   | (52,137     | )      |   |   | (44,534     | )      |   |   | (40,858 | ) |
|     Unrealized      gain on financial contracts                                                                                |   |   | (972,504    | )      |   |   | 840,424     |   |   |   | (169,951 | ) |
|     Gain      on disposal of Coin                                                                                              |   |   | -           |   |   |   | -           |   |   |   | (5,825,668 | ) |
|     Share-based      compensation                                                                                              |   |   | 99,000      |   |   |   | 589,000     |   |   |   | - |   |
|     Deferred      income taxes                                                                                                 |   |   | 137,131     |   |   |   | 243,000     |   |   |   | 297,000 |   |
|     Postretirement      obligation                                                                                             |   |   | 621,500     |   |   |   | -           |   |   |   | - |   |
|     Minority      interest                                                                                                     |   |   | (22,912     | )      |   |   | (17,104     | )      |   |   | (8,436 | ) |
|   Changes      in operating assets and liabilities:                                                                                      |   |   |        |   |   |   |        |   |   |   |   |   |
|     (Increase)      decrease in trade receivables                                                                              |   |   | (3,417,379  | )      |   |   | 4,079,475   |   |   |   | (9,774,576 | ) |
|     Decrease      in notes receivable                                                                                          |   |   | 806,447     |   |   |   | 689,386     |   |   |   | 195,717 |   |
|     Increase      in income tax receivable                                                                                     |   |   | (450,809    | )      |   |   | (619,598    | )      |   |   | - |   |
|     (Increase)      decrease in inventories                                                                                    |   |   | 688,681     |   |   |   | (2,411,643  | )      |   |   | 79,019 |   |
|     (Increase)      decrease in other assets                                                                                   |   |   | 215,831     |   |   |   | 207,877     |   |   |   | (270,770 | ) |
|     (Increase)      decrease in financial contract deposits                                                                    |   |   | 1,500,000   |   |   |   | (1,500,000  | )      |   |   | - |   |
|     Increase      in prepaid expenses                                                                                          |   |   | (244,085    | )      |   |   | (38,671     | )      |   |   | (66,568 | ) |
|     Increase      (decrease) in accounts payable and                                                                           |   |   |        |   |   |   |        |   |   |   |   |   |
|         accrued      liabilities                                                                           |   |   | 2,076,607   |   |   |   | 1,128,911   |   |   |   | (81,786 | ) |
|     Increase      (decrease) in accrued interest                                                                               |   |   | 25,695      |   |   |   | 1,108       |   |   |   | (841,610 | ) |
|     Decrease      in accrued liabilities in Saudi Arabia                                                                       |   |   | (238,456    | )      |   |   | (762,025    | )      |   |   | (341,846 | ) |
|     Net      cash provided by operating activities                                                                             |   |   | 9,470,398   |   |   |   | 10,953,034  |   |   |   | 386,751 |   |
|                                                                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Investing      activities                                                                                                                          |   |   |        |   |   |   |        |   |   |   |   |   |
|   Additions      to Al Masane Project                                                                                                    |   |   | (331,058    | )      |   |   | (332,924    | )      |   |   | (383,533 | ) |
|   Additions      to plant, pipeline and equipment                                                                                        |   |   | (10,799,205 | )      |   |   | (3,738,856  | )      |   |   | (3,491,467 | ) |
|   (Additions      to) reductions in to mineral properties         in      the United States |   |   | 94          |   |   |   | -           |   |   |   | (390 | ) |
|     Net      cash used in investing activities                                                                                 |   |   | (11,130,169 | )      |   |   | (4,071,780  | )      |   |   | (3,875,390 | ) |
|                                                                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Financing      Activities                                                                                                                          |   |   |        |   |   |   |        |   |   |   |   |   |
|   Additions      to long-term debt                                                                                                       |   |   | 6,000,000   |   |   |   | 5,058,726   |   |   |   | 7,000,000 |   |
|   Repayment      of long-term debt                                                                                                       |   |   | (2,488,827  | )      |   |   | (10,726,183 | )      |   |   | (1,678,005 | ) |
|   Repayment      of note to stockholders                                                                                                 |   |   | (500        | )      |   |   | (13,333     | )      |   |   | (718,000 | ) |
|     Net      cash provided (used) in financing activities                                                                      |   |   | 3,510,673   |   |   |   | (5,680,790  | )      |   |   | 4,603,995 |   |
|                                                                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Net      increase in cash                                                                                                                          |   |   | 1,850,902   |   |   |   | 1,200,464   |   |   |   | 1,115,356 |   |
|                                                                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                                              |   |   | 2,939,022   |   |   |   | 1,738,558   |   |   |   | 623,202 |   |
|                                                                                                                                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                                                                                    |   | $      | 4,789,924   |   |   | $      | 2,939,022   |   |   | $ | 1,738,558 |   |

----

|                                                                 |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Supplemental      disclosure of cash flow information:               |   |   |      |   |   |   |      |   |   |
|   Cash      payments for interest                          |   | $      | 294,206   |   |   | $      | 720,752   |   |   | $ | 1,490,807 |   |
|   Cash      paid for income taxes                          |   | $      | 3,585,000 |   |   | $      | 3,908,398 |   |   | $ | 837,326 |   |
|                                                                 |   |   |      |   |   |   |      |   |   |   |   |   |
| Supplemental      disclosure of non-cash items:                      |   |   |      |   |   |   |      |   |   |   |   |   |
|   Notes      receivable issued for capital expansion       |   | $      | -         |   |   | $      | 952,900   |   |   | $ | 1,662,403 |   |
|   Capital      expansion amortized to depreciation expense |   | $      | (584,348  | )      |   | $      | (480,002  | )      |   | $ | (104,988 | ) |

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES |
|--------|----------------------------------------------------------------------------------------------------------|

|   | Business      and Operations of the Company |
|--------|---------------------------------------------|

----

----

|   | NOTE      1 - BUSINESS AND OPERATIONS OF THE COMPANY AND SUMMARY OF SIGNIFICANT      ACCOUNTING POLICIES – Continued |
|--------|----------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                              |   | Saudi Arabia |       |   | United States |   |       | Total  |   |
|-----------------------------------------------------------------------------------|--------|--------------|------------|--------|---------------|--------|------------|--------|--------|
|                                                                              |   |         |       |   |          |   |       |   |   |
| Current      assets                                                               |   | $            | 1,154,706  |   |          | $      | 21,368,744 |   |   | $ | 22,523,450 |   |
|                                                                              |   |         |       |   |          |   |       |   |   |   |   |   |
| Current      liabilities                                                          |   |         | 7,678,634  |   |          |   | 11,942,887 |   |   |   | 19,621,521 |   |
|                                                                              |   |         |       |   |          |   |       |   |   |   |   |   |
| Excess      (shortage) of current assets  over      current liabilities |   | $            | (6,523,928 | )      |          | $      | 9,425,857  |   |   | $ | 2,901,929 |   |
|                                                                              |   |         |       |   |          |   |       |   |   |   |   |   |

----

----

|                   |   | 2007   |      |   | 2006   |   |
|------------------------|--------|--------|-----------|--------|--------|--------|
|                   |   |   |      |   |   |   |
| Raw      material      |   | $      | 1,377,878 |   |   | $      | 2,577,555 |   |
| Finished      products |   |   | 1,509,758 |   |   |   | 998,762 |   |
|                   |   |   |      |   |   |   |   |   |
| Total      inventory   |   | $      | 2,887,636 |   |   | $      | 3,576,317 |   |

|                                                              |   | 2007   |      |   | 2006   |   |
|-------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                              |   |   |      |   |   |   |
| Note      with processing customer (A)                            |   | $      | 1,404,608 |   |   | $      | 1,894,820 |   |
|   Less      discount                                    |   |   | (154,030  | )      |   |   | (270,470 | ) |
|                                                              |   |   | 1,250,578 |   |   |   | 1,624,350 |   |
|                                                              |   |   |      |   |   |   |   |   |
| Note      with processing customer (B)                            |   |   | 313,147   |   |   |   | 534,333 |   |
| Less      discount                                                |   |   | (18,011   | )      |   |   | (49,925 | ) |
|                                                              |   |   | 295,136   |   |   |   | 484,408 |   |
|                                                              |   |   |      |   |   |   |   |   |
| Note      for sale of office building (C)                         |   |   | --        |   |   |   | 95,050 |   |
| Less      discount                                                |   |   | --        |   |   |   | (3,597 | ) |
| Less      deferred gross profit                                   |   |   | --        |   |   |   | (48,542 | ) |
|                                                              |   |   | --        |   |   |   | 42,911 |   |
|                                                              |   |   |      |   |   |   |   |   |
| Total      long-term notes receivable                             |   |   | 1,545,714 |   |   |   | 2,151,669 |   |
|                                                              |   |   |      |   |   |   |   |   |
| Less      current portion                                         |   |   | 609,777   |   |   |   | 605,955 |   |
|                                                              |   |   |      |   |   |   |   |   |
|  Total      long-term notes receivable, less current portion |   | $      | 935,937   |   |   | $      | 1,545,714 |   |
|                                                              |   |   |      |   |   |   |   |   |

----

|                 (A) | The      Company has notes receivable from a long term processing customer for      capital costs incurred in making adjustments to the processing unit at      their request.  The payment term is 5 years with interest      imputed at a rate of 8%.  Payments of $40,851 are due      monthly. |
|-----------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   (B) | The      Company has notes receivable from a long term processing customer for      capital costs incurred in making adjustments to the processing unit at      their request.  The payment term is 3 years with interest      imputed at a rate of 8%.  Payments of $18,432 are due      monthly. |
|-----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C)   | The      Company had notes receivable from a state agency from the owner financing      of an office building.  The payment term was 10 years with an      interest rate of 9%.  Payments of $95,050 were due      annually.   The final payment on this note was received in      2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  Payments      from long-term notes for the next five years ending December 31 are as      follows: |
|--------|----------------------------------------------------------------------------------------------------------|

| Year      Ending December 31,  |   | Long-Term      Notes Receivable |      |
|-------------------------------------|--------|---------------------------------|-----------|
| 2008                                |   |                            | 711,397   |   |
| 2009                                |   |                            | 582,373   |   |
| 2010                                |   |                            | 423,985   |   |
| 2011                                |   |                            | -         |   |
| 2012                                |   |                            | -         |   |
| Thereafter                          |   |                            | -         |   |
| Total                               |   |                            | 1,717,755 |   |
| Less:      discount                 |   |                            | 172,041   |   |
|                                |   | $                               | 1,545,714 |   |

|                                                       |   | December 31, |        |
|------------------------------------------------------------|--------|--------------|-------------|
|                                                       |   | 2007         |        |   | 2006 |   |
| Platinum      catalyst                                     |   | $            | 1,318,068   |   |   | $ | 40,800 |   |
| Land                                                       |   |         | 552,705     |   |   |   | 552,705 |   |
| Property,      pipeline and equipment                      |   |         | 23,721,786  |   |   |   | 19,847,411 |   |
| Construction      in progress                              |   |         | 6,637,150   |   |   |   | 1,202,987 |   |
| Total      property, pipeline and equipment                |   |         | 32,229,709  |   |   |   | 21,643,903 |   |
|     Less      accumulated depreciation |   |         | (12,463,214 | ) |   |   | (11,017,503 | ) |
| Net      property, pipeline and equipment                  |   | $            | 19,766,495  |   |   | $ | 10,626,400 |   |

----

----

|                                                                                                                                 |   | Balance      atDecember      31, 2007 |       |   | Activityfor 2007 |   |    | Balance      atDecember      31, 2006 |   |   | Activityfor 2006 |   |   | Balance      atDecember      31, 2005 |    |   | Activityfor 2005 |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|------------------|--------|---------|---------------------------------------|--------|--------|------------------|--------|--------|--------------------------------------------|---------|--------|------------------|--------|
| Property      and equipment:  Mining      equipment                                                                        |   | $                                     | 2,160,206  |   |             |   | -       |                                  |   | $      | 2,160,206        |   |   |                                       | -       |   |             | $      | 2,160,206 |   |   |   | - |   |
|   Construction      costs                                                                                                  |   |                                  | 3,140,493  |   |             |   | -       |                                  |   |   | 3,140,493        |   |   |                                       | -       |   |             |   | 3,140,493 |   |   |   | - |   |
|     Total                                                                                                        |   |                                  | 5,300,699  |   |             |   | -       |                                  |   |   | 5,300,699        |   |   |                                       | -       |   |             |   | 5,300,699 |   |   |   | - |   |
|                                                                                                                                 |   |                                  |       |   |             |   |    |                                  |   |   |             |   |   |                                       |    |   |             |   |   |   |   |   |   |   |
| Other      costs:                                                                                                                    |   |                                  |       |   |             |   |    |                                  |   |   |             |   |   |                                       |    |   |             |   |   |   |   |   |   |   |
|   Labor,      consulting    services      and project    administration      costs |   |                                  | 23,031,692 |   |             |   | 331,058 |                                  |   |   | 22,700,634       |   |   |                                       | 329,904 |   |             |   | 22,370,730 |   |   |   | 333,867 |   |
|   Materials      and     maintenance                                                              |   |                                  | 6,175,232  |   |             |   | -       |                                  |   |   | 6,175,232        |   |   |                                       | -       |   |             |   | 6,175,232 |   |   |   | - |   |
|   Feasibility      study                                                                                                   |   |                                  | 2,960,457  |   |             |   | -       |                                  |   |   | 2,960,457        |   |   |                                       | 3,020   |   |             |   | 2,957,437 |   |   |   | 49,666 |   |
|       Total                                                                                            |   |                                  | 32,167,381 |   |             |   | 331,058 |                                  |   |   | 31,836,323       |   |   |                                       | 332,924 |   |             |   | 31,503,399 |   |   |   | 383,533 |   |
|                                                                                                                                 |   | $                                     | 37,468,080 |   |             | $      | 331,058 |                                  |   | $      | 37,137,022       |   |   | $                                          | 332,924 |   |             | $      | 36,804,098 |   |   | $ | 383,533 |   |

----

|                                                                          |   | 2007   |       |   | 2006   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Notes      payable:                                                           |   |   |       |   |   |   |
|   Secured      note to Saudi Arabian government (A)                 |   | $      | 11,000,000 |   |   | $      | 11,000,000 |   |
|   Other                                                             |   |   | 12,000     |   |   |   | 12,500 |   |
|      Total                                           |   | $      | 11,012,000 |   |   | $      | 11,012,500 |   |
|                                                                          |   |   |       |   |   |   |   |   |
| Long-term      debt:                                                          |   |   |       |   |   |   |   |   |
|   Note      with vendor (B)                                         |   |   | --         |   |   |   | 460,656 |   |
|   Capital      lease with affiliated party (C)                      |   |   | 49,584     |   |   |   | 77,755 |   |
|   Revolving      note to domestic bank (D)                          |   |   | 6,058,726  |   |   |   | 5,058,726 |   |
|   Term      note to domestic bank (E)                               |   |   | 3,000,000  |   |   |   | -- |   |
|                                                                          |   |   |       |   |   |   |   |   |
|      Total      long-term debt                       |   |   | 9,108,310  |   |   |   | 5,597,137 |   |
|                                                                          |   |   |       |   |   |   |   |   |
|   Less      current portion                                         |   |   | 30,573     |   |   |   | 488,828 |   |
|                                                                          |   |   |       |   |   |   |   |   |
|      Total      long-term debt, less current portion |   | $      | 9,077,737  |   |   | $      | 5,108,309 |   |

----

|  (A) | The      Company has an interest-free loan of $11,000,000 from the Saudi Arabian      Ministry of Finance and National Economy, the proceeds of which were used      to finance the development phase of the Al Masane Project.  The      loan was repayable in ten equal annual installments of $1,100,000, with      the initial installment payable on December 31, 1984.  None of      the ten scheduled payments have been made.  Pursuant to the      mining lease agreement covering the Al Masane Project, the Company intends      to repay the loan in accordance with a repayment schedule to be agreed      upon with the Saudi Arabian government from its share of cash      flows.  An agreement has not yet been reached      regarding either the rescheduling or source of these payments. The      loan is collateralized by all of the Company’s “movable and immovable”      assets in Saudi Arabia. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (B) | On June 1, 2004,      South Hampton entered into a contract with a supplier for the purchase of      65,000      barrels per month of natural gasoline on an open account for the period      from June 1, 2004 through May 31, 2006, subsequently extended to May 31,      2007 and annually thereafter with 30 days written notice of termination by      either party.  A provision of the contract stated that      South      Hampton would begin reducing the current debt to the supplier by $250,000      per quarter beginning July 1, 2004.  The account was originally      secured by a lien on the plant assets.  The lien was removed in      December 2006.  This debt is now on open account with the vendor      and the outstanding amount due at December 31, 2007 of approximately      $2,134,000 is included in the trade accounts payable    balance. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (C) | On      August 1, 2004, South Hampton entered into a $136,876 capital lease with a      transportation company owned by a Company officer for the purchase of a      diesel powered manlift.  The lease bears interest of 6.9% over a      5 year term with a monthly payment of $3,250.  Title transfers      to South Hampton at the end of the term.  The original cost of      the diesel powered manlift was $136,876 with accumulated depreciation of      $46,766 and $33,078 at December 31, 2007, and 2006,      respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (D) | On      May 25, 2006 South Hampton entered into a $12.0 million revolving loan      agreement with a domestic bank secured by accounts receivable and      inventory. The original agreement was due to expire October 31,      2008.  An amendment was entered into on January 28, 2008 which      extended the termination date to June 30, 2010.  This agreement      replaced the October 31, 2005 loan agreement with a domestic bank and the      June 30, 2005 loan agreement with a capital investment      group.  At December 31, 2007, there was a long-term amount      outstanding of $6,058,726. The credit agreement contains a sub-limit of      $3.0 million available to be used in support of the hedging      program.  The interest rate on the loan varies according to      several options and the amount outstanding.  At December 31,      2007 the rate was 6.50%, and the amount available to be drawn was      approximately $5.7 million as determined by the borrowing base of the      Company.  A commitment fee of 0.25% is due quarterly on the      unused portion of the loan.  If the amount outstanding surpasses      the amount calculated by the borrowing base, a principal payment would be      due to reduce the amount outstanding to the calculated      base.  Interest is paid monthly.  Covenants that must      be maintained include EBITDA, capital expenditures, dividends payable to      parent, and leverage ratio. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (E) | On      September 19, 2007 South Hampton entered into a $10.0 million term loan      agreement with a domestic bank to finance the expansion of the      petrochemical facility.  This note is secured by property, plant      and equipment. The agreement expires October 31, 2018.  At      December 31, 2007, there was a long-term amount outstanding of $3.0      million.  The interest rate on the loan varies according to      several options.  At December 31, 2007 the rate was 6.25%, and      the amount available to be drawn was $7.0 million.  Interest is      paid monthly. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTE      10 - NOTES PAYABLE, LONG-TERM DEBT AND LONG-TERM OBLIGATIONS    – |
|--------|-----------------------------------------------------------------------------------|

|   | Principal      payments of long-term debt for the next five years and thereafter ending      December 31 are as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| Year      Ending December 31,                  |   | Long-Term      Debt |      |   | Capital      Lease Obligations |   |
|-----------------------------------------------------|--------|---------------------|-----------|--------|--------------------------------|--------|
| 2008                                                |   | $                   | --        |   |                           | $      | 33,471 |   |
| 2009                                                |   |                | 223,384   |   |                           |   | 19,523 |   |
| 2010                                                |   |                | 6,296,402 |   |                           |   | -- |   |
| 2011                                                |   |                | 252,883   |   |                           |   | -- |   |
| 2012                                                |   |                | 2,286,057 |   |                           |   | -- |   |
| Total                                               |   | $                   | 9,058,726 |   |                           |   | 52,994 |   |
| Less:      Amount representing interest             |   |                |      |   |                           |   | (3,410 | ) |
| Present      value of future minimum lease payments |   |                |      |   |                           | $      | 49,584 |   |

|   | NOTE 11 – ACCRUED      LIABILITIES |
|--------|------------------------------------------|

|                                      |   | 2007   |      |   | 2006   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Accrued      state taxes                  |   | $      | 258,407   |   |   | $      | 554,453 |   |
| Accrued      operating costs              |   |   | 275,000   |   |   |   | 200,000 |   |
| Accrued      payroll                      |   |   | 539,947   |   |   |   | 251,971 |   |
| Accrued      directors’ fees        |   |   | 288,250   |   |   |   | -- |   |
| Post      retirement obligation           |   |   | 180,000   |   |   |   | -- |   |
| Accrued      officers’ compensation |   |   | 100,000   |   |   |   | -- |   |
| Other      liabilities                    |   |   | 290,218   |   |   |   | 203,630 |   |
|                                      |   |   |      |   |   |   |   |   |
|    Total                   |   | $      | 1,931,822 |   |   | $      | 1,210,054 |   |

|                      |   | 2007   |      |   | 2006   |   |
|---------------------------|--------|--------|-----------|--------|--------|--------|
| Salaries                  |   | $      | 603,147   |   |   | $      | 866,376 |   |
| Termination      benefits |   |   | 783,170   |   |   |   | 758,397 |   |
| Other      liabilities    |   |   | 20,484    |   |   |   | 20,484 |   |
|                      |   |   |      |   |   |   |   |   |
|    Total   |   | $      | 1,406,801 |   |   | $      | 1,645,257 |   |

----

| Year      EndingDecember      31 |   |   |      |
|----------------------------------|--------|--------|-----------|
| 2008                             |   | $      | 808,500   |   |
| 2009                             |   |   | 117,300   |   |
| 2010                             |   |   | 117,300   |   |
| 2011                             |   |   | 117,300   |   |
| 2012                             |   |   | 117,300   |   |
| Thereafter                       |   |   | 1,290,300 |   |
|                             |   |   |      |   |
| Total                            |   | $      | 2,568,000 |   |

----

|                                    |   | 2007   |    |   | 2006                                     |   |   | 2005   |   |
|-----------------------------------------|--------|--------|---------|--------|------------------------------------------|--------|--------|--------|--------|
|                                    |   | Shares |    |   | Weighted      averageexercise price |   |   | Shares |   |   | Weighted      averageexercise price |   |   | Shares |   |   | Weighted      averageexercise price |   |
| Outstanding      at beginning of year   |   |   | 500,000 |   |                                     | $      | 1.20   |   |   |   | 400,000 |   |   | $ | 1.00 |   |   |   | 400,000 |   |   | $ | 1.00 |   |
| Granted                                 |   |   | -       |   |                                     |   |   |   |   |   | 100,000 |   |   | $ | 2.00 |   |   |   | - |   |   |   |   |   |
| Forfeited                               |   |   | -       |   |                                     |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Outstanding      at end of year         |   |   | 500,000 |   |                                     | $      | 1.20   |   |   |   | 500,000 |   |   | $ | 1.20 |   |   |   | 400,000 |   |   | $ | 1.00 |   |
| Options      exercisable at end of year |   |   | 500,000 |   |                                     | $      | 1.20   |   |   |   | 500,000 |   |   | $ | 1.20 |   |   |   | 400,000 |   |   | $ | 1.00 |   |
|                                    |   |   |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Options outstanding and      exercisable |    |
|------------------------------------------|---------|
| Number                                   |    | Remainingcontractual life |   | Exerciseprice |   |
|                                     | 400,000 |   | Undetermined |   | $ | 1.00 |   |
|                                     | 100,000 |   | 1.7      years |   | $ | 2.00 |   |

|   | NOTE      15 – INCOME TAXES |
|--------|-----------------------------------|

|                                    |   | Year      ended December 31, |      |
|-----------------------------------------|--------|------------------------------|-----------|
|                                    |   | 2007                         |      |   | 2006 |   |
|                                    |   |                         |      |   |   |   |
| Current      federal provision          |   | $                            | 3,357,184 |   |   | $ | 3,196,005 |   |
| Current      state provision (benefit)  |   |                         | (68,103   | ) |   |   | 569,903 |   |
| Deferred      federal provision         |   |                         | 141,443   |   |   |   | 222,721 |   |
| Deferred      state provision (benefit) |   |                         | (4,281    | ) |   |   | 20,787 |   |
|                                    |   |                         |      |   |   |   |   |   |
| Income      tax expense                 |   | $                            | 3,426,243 |   |   | $ | 4,009,416 |   |

|                                                                   |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Income      taxes at U.S. statutory rate                               |   | $      | 3,807,192 |   |   | $      | 4,048,863 |   |   | $ | 6,064,431 |   |
| State      taxes, net of federal benefit                               |   |   | 166,685   |   |   |   | 385,756   |   |   |   | 533,763 |   |
| Prior      year overpayments                                           |   |   | (145,250  | )      |   |   | (358,054  | )      |   |   | - |   |
| Refund      from amended state return                                  |   |   | (158,000  | )      |   |   | -         |   |   |   | - |   |
| Change      in valuation allowance                                     |   |   | -         |   |   |   | -         |   |   |   | (3,170,892 | ) |
| Foreign      operations with no  benefit      (tax) provided |   |   | -         |   |   |   | -         |   |   |   | (2,317,278 | ) |
| Permanent      and other items                                         |   |   | (244,384  | )      |   |   | ( 67,149  | )      |   |   | 23,763 |   |
|     Total      tax expense                         |   | $      | 3,426,243 |   |   | $      | 4,009,416 |   |   | $ | 1,133,787 |   |

----

|   | NOTE      15 – INCOME TAXES - Continued |
|--------|-----------------------------------------------|

|                                                                |   | December 31, |       |
|---------------------------------------------------------------------|--------|--------------|------------|
|                                                                |   | 2007         |       |   | 2006 |   |   | 2005 |   |
| Deferred      tax liabilities:                                      |   |         |       |   |   |   |   |   |   |
|   Plant,      pipeline and equipment                      |   | $            | (1,368,531 | ) |   | $ | (1,462,000 | ) |   | $ | (907,000 | ) |
|   Unrealized      gains on swap agreements                |   |         | (63,370    | ) |   |   | - |   |   |   | - |   |
| Deferred      tax assets:                                           |   |         |       |   |   |   |   |   |   |   |   |   |
|   Accounts      receivable                                |   |         | 82,250     |   |   |   | 55,000 |   |   |   | 42,000 |   |
|   Inventory                                               |   |         | 33,001     |   |   |   | - |   |   |   | - |   |
|   Mineral      interests                                  |   |         | 217,051    |   |   |   | 236,000 |   |   |   | 236,000 |   |
|   Accrued      liabilities                                |   |         | 211,158    |   |   |   | 255,000 |   |   |   | 215,000 |   |
|   Net      operating loss and contribution carry-forwards |   |         | --         |   |   |   | 75,000 |   |   |   | 55,000 |   |
|   Capital      loss carry-forward                         |   |         | 1,228,090  |   |   |   | 1,336,000 |   |   |   | 1,336,000 |   |
|   Deferred      gain on sale of property                  |   |         | --         |   |   |   | 18,000 |   |   |   | 34,000 |   |
|   Unrealized      losses on swap agreements               |   |         | --         |   |   |   | 283,000 |   |   |   | 28,000 |   |
|   Post      retirement benefits                           |   |         | 211,310    |   |   |   | - |   |   |   | - |   |
|   Gross      deferred tax assets                          |   |         | 1,982,860  |   |   |   | 2,258,000 |   |   |   | 1,946,000 |   |
|                                                                |   |         |       |   |   |   |   |   |   |   |   |   |
| Valuation      allowance                                            |   |         | (1,228,090 | ) |   |   | (1,336,000 | ) |   |   | (1,336,000 | ) |
|                                                                |   |         |       |   |   |   |   |   |   |   |   |   |
|   Net      deferred tax liabilities                       |   |         | (677,131   | ) |   |   | (540,000 | ) |   |   | (297,000 | ) |
|                                                                |   |         |       |   |   |   |   |   |   |   |   |   |
|   Net      deferred taxes                                 |   | $            | (677,131   | ) |   | $ | (540,000 | ) |   | $ | (297,000 | ) |

----

|                                             |   | December      31, 2007 |        |
|--------------------------------------------------|--------|------------------------|-------------|
|                                             |   | Petrochemical          |        |   | Mining |   |   | Total |   |
| Continuing      operations                       |   |                   |        |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 108,638,115 |   |   | $ | - |   |   | $ | 108,638,115 |   |
|   Depreciation                         |   |                   | 1,073,620   |   |   |   | 1,142 |   |   |   | 1,074,762 |   |
|   Operating      income (loss)         |   |                   | 13,261,809  |   |   |   | (2,179,101 | ) |   |   | 11,082,708 |   |
|                                             |   |                   |        |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                      | 42,077,819  |   |   | $ | 42,142,946 |   |   | $ | 84,220,765 |   |

|                                             |   | December      31, 2006 |       |
|--------------------------------------------------|--------|------------------------|------------|
|                                             |   | Petrochemical          |       |   | Mining |   |   | Total |   |
| Continuing      operations                       |   |                   |       |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 98,502,157 |   |   | $ | - |   |   | $ | 98,502,157 |   |
|   Depreciation                         |   |                   | 858,813    |   |   |   | 246 |   |   |   | 859,059 |   |
|   Operating      income (loss)         |   |                   | 13,130,693 |   |   |   | (1,218,931 | ) |   |   | 11,911,762 |   |
|                                             |   |                   |       |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                      | 29,638,657 |   |   | $ | 41,951,509 |   |   | $ | 71,590,166 |   |

|                                             |   | December      31, 2005 |       |
|--------------------------------------------------|--------|------------------------|------------|
|                                             |   | Petrochemical          |       |   | Mining |   |   | Total |   |
| Continuing      operations                       |   |                   |       |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 80,373,587 |   |   | $ | - |   |   | $ | 80,373,587 |   |
|   Depreciation                         |   |                   | 651,582    |   |   |   | 25 |   |   |   | 651,607 |   |
|   Operating      income (loss)         |   |                   | 12,252,223 |   |   |   | (624,993 | ) |   |   | 11,627,230 |   |
|                                             |   |                   |       |   |   |   |   |   |   |   |   |   |
| Discontinued      operations (Coin)              |   |                   |       |   |   |   |   |   |   |   |   |   |
|   Revenue      from external customers |   | $                      | 2,042,676  |   |   | $ | - |   |   | $ | 2,042,676 |   |
|   Depreciation                         |   |                   | -          |   |   |   | - |   |   |   | - |   |
|   Operating      income (loss)         |   |                   | 497,730    |   |   |   | - |   |   |   | 497,730 |   |
|                                             |   |                   |       |   |   |   |   |   |   |   |   |   |
| Total      assets                                |   | $                      | 26,165,931 |   |   | $ | 40,808,237 |   |   | $ | 66,974,168 |   |

|                                              |   | Year      ended December 31, |    |
|---------------------------------------------------|--------|------------------------------|---------|
|                                              |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
| Revenues                                          |   |                         |    |   |   |   |   |   |   |
|   United      States                    |   | $                            | 108,638 |   |   | $ | 98,502 |   |   | $ | 80,373 |   |
|   Mexico      (discontinued operations) |   |                         | -       |   |   |   | - |   |   |   | 2,043 |   |
|   Saudi      Arabia                     |   |                         | -       |   |   |   | - |   |   |   | - |   |
|                                              |   | $                            | 108,638 |   |   | $ | 98,502 |   |   | $ | 82,416 |   |
|                                              |   |                         |    |   |   |   |   |   |   |   |   |   |
| Long-lived      assets                            |   |                         |    |   |   |   |   |   |   |   |   |   |
|   United      States                    |   | $                            | 20,851  |   |   | $ | 11,711 |   |   | $ | 9,311 |   |
|   Mexico      (discontinued operations) |   |                         | -       |   |   |   | - |   |   |   | - |   |
|   Saudi      Arabia                     |   |                         | 39,899  |   |   |   | 39,568 |   |   |   | 39,235 |   |
|                                              |   | $                            | 60,750  |   |   | $ | 51,279 |   |   | $ | 48,546 |   |

----

|                                                             |   | Year      ended December 31, |       |
|------------------------------------------------------------------|--------|------------------------------|------------|
|                                                             |   | 2007                         |       |   | 2006 |   |   | 2005 |   |
| Basic      earnings per common share                             |   |                         |       |   |   |   |   |   |   |
|   Income      from continuing operations               |   | $                            | 0.34       |   |   | $ | 0.35 |   |   | $ | 0.43 |   |
|   Discontinued      operations                         |   |                         | -          |   |   |   | - |   |   |   | 0.30 |   |
|     Net      income                          |   | $                            | 0.34       |   |   | $ | 0.35 |   |   | $ | 0.73 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Weighted      average shares outstanding |   |                         | 22,895,394 |   |   |   | 22,804,567 |   |   |   | 22,731,994 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per common share                           |   |                         |       |   |   |   |   |   |   |   |   |   |
|   Income      from continuing operations               |   | $                            | 0.33       |   |   | $ | 0.34 |   |   | $ | 0.43 |   |
|   Discontinued      operations                         |   |                         | -          |   |   |   | - |   |   |   | 0.30 |   |
|     Net      income                          |   | $                            | 0.33       |   |   | $ | 0.34 |   |   | $ | 0.73 |   |
|                                                             |   |                         |       |   |   |   |   |   |   |   |   |   |
|     Weighted      average shares outstanding |   |                         | 23,291,669 |   |   |   | 23,030,283 |   |   |   | 22,731,994 |   |

|                                                                                      |   | Year      ended December 31, |       |
|-------------------------------------------------------------------------------------------|--------|------------------------------|------------|
|                                                                                      |   | 2007                         |       |   | 2006 |   |   | 2005 |   |
| Weighted      average shares-denominator  basic      computation                |   |                         | 22,895,394 |   |   |   | 22,804,567 |   |   |   | 22,731,994 |   |
| Effect      of dilutive stock options                                                     |   |                         | 396,275    |   |   |   | 225,716 |   |   |   | - |   |
| Weighted      average shares, as adjusted  denominator      diluted computation |   |                         | 23,291,669 |   |   |   | 23,030,283 |   |   |   | 22,731,994 |   |

|                   |   | Year      Ended December 31, 2007 |   |
|------------------------|--------|-----------------------------------|--------|
|                   |   | FirstQuarter                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | Total |   |
|                   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                                 | 23,663 |   |   | $ | 27,141 |   |   | $ | 28,038 |   |   | $ | 29,796 |   |   | $ | 108,638 |   |
| Gross      profit      |   |                              | 9,263  |   |   |   | 5,168 |   |   |   | 2,441 |   |   |   | 2,905 |   |   |   | 19,777 |   |
| Net      income (loss) |   |                              | 4,641  |   |   |   | 2,172 |   |   |   | 382 |   |   |   | 576 |   |   |   | 7,771 |   |
| Basic      EPS         |   | $                                 | 0.20   |   |   | $ | 0.10 |   |   | $ | 0.02 |   |   | $ | 0.02 |   |   | $ | 0.34 |   |
| Diluted      EPS       |   | $                                 | 0.20   |   |   | $ | 0.09 |   |   | $ | 0.02 |   |   | $ | 0.02 |   |   | $ | 0.33 |   |

|                   |   | Year      Ended December 31, 2006 |   |
|------------------------|--------|-----------------------------------|--------|
|                   |   | FirstQuarter                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | Total |   |
|                   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   | $                                 | 24,316 |   |   | $ | 24,082 |   |   | $ | 27,541 |   |   | $ | 22,563 |   |   | $ | 98,502 |   |
| Gross      profit      |   |                              | 5,917  |   |   |   | 6,086 |   |   |   | 2,777 |   |   |   | 3,833 |   |   |   | 18,613 |   |
| Net      income (loss) |   |                              | 2,701  |   |   |   | 2,648 |   |   |   | 514 |   |   |   | 2,012 |   |   |   | 7,875 |   |
| Basic      EPS         |   | $                                 | 0.12   |   |   | $ | 0.12 |   |   | $ | 0.02 |   |   | $ | 0.09 |   |   | $ | 0.35 |   |
| Diluted      EPS       |   | $                                 | 0.12   |   |   | $ | 0.11 |   |   | $ | 0.02 |   |   | $ | 0.09 |   |   | $ | 0.34 |   |

----

|   | NOTE      20 – DERIVATIVE INSTRUMENTS |
|--------|---------------------------------------------|

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|   | NOTE      22 – DISCONTINUED OPERATIONS |
|--------|----------------------------------------------|

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| Description                                 |   | Beginningbalance |      |   | Charged(credited)to earnings |   |      | Deductions(a) |   |   | Endingbalance |   |
|---------------------------------------------|--------|------------------|-----------|--------|------------------------------|--------|-----------|---------------|--------|--------|---------------|--------|
| ALLOWANCE FOR DEFERRED  TAX ASSET |   |             |      |   |                         |   |      |          |   |   |          |   |
|                                        |   |             |      |   |                         |   |      |          |   |   |          |   |
| December      31, 2005                      |   |             | 3,274,588 |   |                         |   | 1,336,451 |          |   |   | (3,274,588    | )      |   |   | 1,336,451 |   |
| December      31, 2006                      |   |             | 1,336,451 |   |                         |   | -         |          |   |   | -             |   |   |   | 1,336,451 |   |
| December      31, 2007                      |   |             | 1,336,451 |   |                         |   | (108,361  | )             |   |   | -             |   |   |   | 1,228,090 |   |

| Description                                |   | Beginningbalance |   |   | Chargedto earnings |   |    | Deductions |   |   | Endingbalance |   |
|--------------------------------------------|--------|------------------|--------|--------|--------------------|--------|---------|------------|--------|--------|---------------|--------|
| ALLOWANCE FOR DOUBTFUL  ACCOUNTS |   |             |   |   |               |   |    |       |   |   |          |   |
|                                       |   |             |   |   |               |   |    |       |   |   |          |   |
| December      31, 2005                     |   |             | -      |   |               |   | -       |       |   |   | -             |   |   |   | - |   |
| December      31, 2006                     |   |             | -      |   |               |   | 190,829 |       |   |   | (155,829      | )      |   |   | 35,000 |   |
| December      31, 2007                     |   |             | 35,000 |   |               |   | -       |       |   |   | -             |   |   |   | 35,000 |   |

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