5.  Asset Used in Business Operations

    1.  Assets

  Assets of the Company or subsidiary as at 31 December 2009 are as
  follows:

1.  Land, Buildings, and Machinery

(1) Land, Buildings

Assets of the Company and the Subsidiaries (Group)

  Cost (Baht) Net Book Value(Baht)

  ------------------------------- ------------------ ------------------ -----
  Land                            470,137,313.00     470,137,313.00     

  Land Improvement                80,045,220.25      48,722,991.47      

  Building, Building Improvement  90,144,845.99      60,668,346.86      

  Motor Vehicles                  144,498,757.37     36,351,307.45      

  Furniture and Office Equipment  17,335,308.71      4,267,061.65       

  Machinery and Equipment         695,626,485.30     513,436,902.54     

  Construction in progress and    144,179,967.69     127,273,448.26     
  Others                                                                

                                  1,641,967,892.31   1,260,857,371.22   
  ------------------------------- ------------------ ------------------ -----

Details of the Group’s lands: As at 31 December 2009, total company land
is 60 rai 2 ngan 91.10 sq wah, cost at Baht 48,283,250.00. The
Subsidiaries land is 94 rai, 3 ngan, 60.9 sq.wah, cost at Baht
421,854,063.00. The Group’s land is 155 rai, 2 ngan, 52 sq wah, cost
Baht 470,137,313.00. The details are as follows:

+--------+------+---------+-------+---------+-----------------+------+
| Lo     | Nu   | R       | Sq.   | Cost    | Owner           | St   |
| cation | mber | ai-ngan | m.    |         |                 | atus |
|        | of   | -sq.wah |       | (Baht)  |                 |      |
|        | L    |         |       |         |                 |      |
|        | ands |         |       |         |                 |      |
|        | T    |         |       |         |                 |      |
|        | itle |         |       |         |                 |      |
|        | D    |         |       |         |                 |      |
|        | eeds |         |       |         |                 |      |
+--------+------+---------+-------+---------+-----------------+------+
| Phuket | 5    | 22      | 35,   | 42,     | Tongkah Harbour | (A)  |
|        |      | -1-49.1 | 796.4 | 530,000 | PCL.            |      |
+--------+------+---------+-------+---------+-----------------+------+
| Loei   | 20   | 91-1-99 | 14    | 13,     | Tungkum Limited | (B)  |
|        |      |         | 6,396 | 284,063 |                 |      |
+--------+------+---------+-------+---------+-----------------+------+
| Sa     | 2    | 38-1-42 | 6     | 5,      | Tongkah Harbour | (B)  |
| raburi |      |         | 1,368 | 753,250 | PCL.            |      |
+--------+------+---------+-------+---------+-----------------+------+
| B      | 3    | 3       | 5,    | 408,    | Sky Cliff       | (C)  |
| angkok |      | -1-61.9 | 447.6 | 570,000 | Limited         |      |
+--------+------+---------+-------+---------+-----------------+------+
| Total  |      | 1       | 24    | 470,    |                 |      |
|        |      | 55-2-52 | 9,008 | 137,313 |                 |      |
+--------+------+---------+-------+---------+-----------------+------+

NB: 100sqwah=1ngan,1 ngan=0.25rai, 1 rai=1600sqm.

(A) Four plots of Phuket land are mortgaged with Thanachart bank for O/D
amount of Baht 15 million, Commercial loan (P/N) Baht 47 million and
long-term loans amount of Baht 140.58 million as of December 31, 2009.

(B) All land is free-hold

(C) Three pieces are mortgaged with Thanachart bank for O/D amount of
    Baht 15 million, Commercial loan (P/N) Baht 47 million and long-term
    loans amount of Baht 140.58 million as of December 31, 2009.

(2) Machinery where the book value is more than 10% of total assets.

  Quantity Depreciable Life No. of Year Used Book Value

-   The Company Only -NONE-

-   Consolidated -NONE-

    1.  Mining Rights

        1.  Andesite Mining

The mining rights granted to the Company are as follows:

  ------------- ------ ------ --------- ----------- -----------------------
                Area                                

  Mining right  Rai    Ngan   Sp. Wah   Expiry date Status
  no.                                               

  28675/15632   154    2      67        January     Under the process of
                                        2007        renewal

  28676/15268   88     3      81        May 2009    Under the process of
                                                    renewal
  ------------- ------ ------ --------- ----------- -----------------------

The mining right no. 28675/15632, under the name of a related company
expired on January 21, 2007. Until the successful renewal of the mining
right, mining operations are not allowed to proceed except for crushing
of stock pile in inventory. As of December 31, 2009 and 2008, the
Company had a rock stock balance of 154,470 tons and 243,336 tons
respectively.

On March 27, 2008, the related company obtained approval from the
Mineral Act Committee for the renewal of its expired andesite mining
right. This renewal process is now at the Ministry of Industry and still
awaiting the authorized signature of the Minister.

On October 1, 2008, the Company submitted a formal request for renewal
of mining right no. 28676/15268 which mining temporary suspended and
expired in May 2009. The renewal is under the process.

2.  Gold Mining

Tungkum Limited had been awarded the Block 4 concession totaling about
545 sq km in October 1991. Later the Company was granted the first 6
gold mining licenses (totaling 2.07 sq km) and submitted a further 114
mining license applications (totaling 52.62 sq km) along with 8 special
prospecting licenses (totaling 38.4 sq km) to cover the remaining
concession areas.

The mining licenses are valid for 25 years (with an option for
subsequent 25 year extensions upon resource confirmation).

+-----------------------+---------+------------------+----------------+
| Tungkum Limited       |         |                  |                |
|                       |         |                  |                |
| Gold Mining Licenses  |         |                  |                |
| & Applications        |         |                  |                |
+-----------------------+---------+------------------+----------------+
| Description:          | Qu      | Status:          | Area (sq km):  |
|                       | antity: |                  |                |
+-----------------------+---------+------------------+----------------+
| Mining Licenses       | 6       | Granted for 25   | 2.07           |
|                       |         | Years            |                |
+-----------------------+---------+------------------+----------------+
| Mining License        | 114     | Under            | 52.62          |
| Applications          |         | Application      |                |
+-----------------------+---------+------------------+----------------+
| Special Prospecting   | 8       | Under            | 38.40          |
| Licenses              |         | Application      |                |
+-----------------------+---------+------------------+----------------+
| TOTAL BLOCK 4 GOLD    |         |                  | 9.             |
| MINING CONCESSION     |         |                  |                |
| AREA:                 |         |                  |                |
+-----------------------+---------+------------------+----------------+

  5.2.3 Investment Promotion

Tungkum Limited (a subsidiary) is granted promotion privileges by the
Board of Investment in accordance with the Investment Promotion Act.
B.E. 2520 (1977), for the gold mining and production on February 25,
2003 and addition for Copper Sulphide Concentrate on April 21, 2009,
obtaining exemption from import duty, and exemption from income tax on
net income from the promoted business for 8 years counting from
September 15, 2006 and reduction of income tax on net income from the
promoted business equivalent to 50 percent of the normal rates for the 5
years, counting from the expiry date of the exemption from income tax.
In addition, a subsidiary is permitted to deduct twice the amount of
transportation and utilities for 10 years counting from September 15,
2006.

A subsidiary thus has to comply with the conditions specified in the
promotion certificate.

2.  Property Development

For the development property project at Phuket, it is kept on hold
during the anticipated crises.

For the property project of Skycliff, it is also kept on hold for the
time being but its approved plans are kept intact maintaining its high
approved plot ratio.

Project location is now more enhanced with the construction of the
Markasan high speed railway central station to the new airport as well
as the proposed development by SET and the Central Group. Given the
slowdown of the demand of the construction industry and the likelihood
of financing availability it augurs well for the Company to complete the
project.

SCL is proposing to build a condominium on the above property during
year 2008. The project consists of a 29-storey contemporary condominium
tower with 82 m of road frontage located at 14 Ratchadapisek Road, Huay
Kwang, Bangkok, Thailand 10320.

   

1. Location Advantages: The site is only minutes away from the Praram 9
metro (subway) station, and only one turning away from access to the
expressway accessing the motorway leading to the Suvarnabhumi
International airport and to Chon Buri, and other major highways. The
site also provides easy access to other main arterials, such as
Sukhumvit and New Petchburi Roads.

2. Status: The construction permit is valid until 15 January 2009, but
can be extended. The extension request had been submitted to Bangkok
Metropolitan Administration already the construction permit will be
valid until 23 April 2010.

The consulting service agreement with IPC Corporation Ltd (IPC) a
Singapore property investment and developmentcompany with considerable
expertise in the field of construction, architecture, property
development, marketing and sales of properties that was reached in
February 2008 has been suspended due to the current global financial
markets uncertainty and the political instability in Thailand. SCL has
had difficulties securing banking loan facilities in part due to the
ongoing political crisis and financial markets uncertainties.

However, with the current construction cost which is relatively low. We
are in talks to construct with the approved plans. Our land has a Floor
Area Ratio (FAR) of 10.5 instead of the current 7. We have put in all
efforts to preserve the FAR.

3.  Policy on Investment in Subsidiary and Associated Companies

Any significant share acquisitions or investment in projects will be
considered and approved by the Board of Directors of each company
concerned prior to recommendation to shareholders for consideration.

Management Policy

Major shareholders normally appoint their representatives to the board
of directors of the subsidiary and associated companies. Director seats
will be allocated in proportion with the investment ratio. Each
subsidiary and associated company, therefore, has its own board of
directors whose policies and regulations are guided. However, the
Company, as the major shareholder, has control in the subsidiary’s
business operations.