SECTION 1

EXECUTIVE SUMMARY

In reflecting upon the past fiscal year, it is impossible to begin
without first acknowledging the tsunami tragedy of 26 December 2004. An
event of unprecedented scale, the tsunami caused tremendous loss of life
and extreme destruction in southern Thailand and other Asian countries.
On behalf of Tongkah Harbour Public Company Limited (THL), we extend our
deepest sympathy and condolences to all that have been affected by this
most terrible catastrophe.

Our Company was founded in Phuket, Thailand, which was one of the areas
hit hard by the tsunami. For 98 years we have been proudly involved in
the Phuket community. In the aftermath of this disaster, we feel a
profound loss indeed. While we are thankful that all our personnel based
in Phuket survived, our hearts weigh heavy for fellow community members
that lost their loved ones, homes, and businesses. Phuket must now
rebuild as a community and THL hereby pledges to play a definite and
committed role in assisting the redevelopment process. In the meantime,
we salute those aid workers that are working tirelessly to bring relief.

Core Business Activities and Corporate Focus

Gold and base metal mining, offshore tin mining, igneous rock (andesite)
mining, and property development continue to be the core capabilities of
the Company and its subsidiaries. In commitment to our shareholders,
customers, and the communities in which we operate, we continually focus
on achieving operational excellence and improvement while striving for
maximum value creation in each of these core business areas.

Investment Activities

In FY04 the Company increased its equity position in its subsidiary
company, namely Sea Minerals Limited (“SML”). The Company increased its
shareholding in SML from 10% to 36%. By the end of Q1 of 05, the Company
will have further increased its shareholding in SML to 67.40%. SML is
related to the Company’s core business of tin mining, a sector that has
been performing very well on the international market and is expected to
continue to do well. SML has applied for mining leases which are viewed
as having long term potential for the benefit of the Company.

The market in General

Despite a turbulent economic market in Thailand in FY04, the price of
gold and tin continued to escalate and perform well in the international
commodity markets. Over the course of FYO4, gold traded at an average
price of US$409.25 while the price of tin increased by 66% from the
previous year.

While the gold and tin markets performed very well in FY04, the property
development market took a turn for the worse as the price of
construction materials increased dramatically due to extreme volatility
in the crude oil market.

Overall, the Company’s assets remain secure and relatively free from
foreign debt exposure. Although there are long term domestic debts, the
total consolidated debt to equity ratio is 22.70% from approximately
35.27% in FY03.

Mining Activities

The Gold Mining Project at Loei, Thailand

We are pleased that we were able to secure project financing in the
amount of US$13.3 million in late FY04 for the first phase of the Loei
gold mining project. Achieving project financing took much longer than
originally anticipated due to the lenders’ due diligence, a process
beyond the control of the Company. While awaiting lender approvals, the
Company focused on site clearing and infrastructure development. FY05
will be dedicated to the design, procurement, and installation and
commissioning of the approximately 1000 ton per day processing plant at
the site. To assist in this effort and to fast track this project, we
are engaging a world-class engineering team with a proven record in gold
plant construction.

The Igneous Rock (Andesite) Quarry at Saraburi, Thailand

In FY04, the Company initiated aggressive marketing campaigns centered
on the Company’s non-ballast aggregate products. These efforts proved
successful, particularly for the fine aggregate which is extremely well
suited for road construction material. Over the course of the year,
several new contracts were entered into with suppliers to the Highway
Department. It is expected that such orders, which have commanded a
relatively high price, shall continue on a regular basis. Demand for
ballast over the past two years has been relatively slow as only minor
track maintenance projects have been implemented by the State Railway of
Thailand (SRT) in the Central region during this period. Prospects
remain encouraging that the SRT will commence new double-track projects
in this area in FY05 which we believe will bring a much higher demand
for our ballast product.

The Tin Mining Operations at Phuket, Thailand

The Company continued to hire contractors to conduct the Company’s
offshore tin mining operations under the direct supervision of the
Company’s experienced mining engineers. Due to the dramatic escalation
in tin price and increased production from 2003, revenue from tin sales
to the Company increased by 91% from the previous year. The Company is,
however, subjected to extremely high royalty rates payable to the Royal
Thai Government on all tin revenues. At a staggering 24%, Thailand has
the highest tin royalty rate in the world. The Company is making
concerted efforts to dramatically reduce this rate which will allow the
Company to see more benefit from its tin operations. As the price of tin
is expected to remain buoyant, we expect FY05 to continue to yield
positive results in this sector.

Property Development

The Le Metro Condominium Development at Bangkok, Thailand

The Le Metro condominium development has been placed in temporary
abeyance pending more favorable construction prices which dramatically
increased in FY04. In the meantime, the Company has completed all
architectural, engineering, piling work, the environmental impact study
and all other regulatory requirements. In addition, the Company is
currently advancing negotiations with another group for a possible joint
venture agreement for the completion of the superstructure. Once
construction prices stabilize in the local market and specific prices
locked in, the Company shall move the project forward once again.

The Phuket Land Holdings

In FY04, the Company was transferred full ownership of a Phuket Bay land
plot which adjoins two already existing land parcels owned by the
Company. As such, the Company now owns one large contiguous piece of
waterfront land at Phuket Bay which dramatically increases the land
value for future development. All other land holdings remain unchanged
from the previous year.

Registered Increase in Paid-Up Capital

During FY04 the Company completed two separate private placement
exercises in accordance with shareholder guidelines provided at the last
Annual General Meeting of the Company. In addition, the Company issued
21,903,000 shares under the Employee Stock Option Plan (ESOP) also in
accordance with shareholder approval. Upon completion of these
exercises, the Company’s paid up capital subsequently increased from
483,648,570 to 605,551,170 shares, increasing equity amount from Baht
804,749,000 to Baht 1,020,619,000.

In Summary

While FY04 was certainly a turbulent year for the Thai market given the
adverse impacts of the bird flu, unrest in the south, and the recent
tsunami, we are generally pleased with our accomplishments for the year.
A number of operational objectives were met in FY04 that we feel will
provide the momentum for economic expansion in FY05. Most significantly,
we are very pleased with the solid performance realized in the tin
operations and encouraged by the prospect of bringing the gold mine into
production which will provide a very important long-term source of
revenue to the Company.

Lastly, I would like to recognize the continued dedication and loyalty
of the staff and management. It is through the focused efforts and
collective skills of these individuals that the Company has been able to
realize so many of its key objectives. I am confident that the strength
of our organization shall serve us well as we move forward to face the
challenges of the year ahead.