SECTION 1

EXECUTIVE SUMMARY

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. As a 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 FY05, the Company increased its equity position in Sea Minerals
Limited (SML) from 36% to 83.70%. SML has also applied for mining leases
which are viewed as having long term potential for the benefit of the
Company. SML is related to the Company’s original core business of tin
mining, a sector that has been performing very well on the international
market and is expected to continue to do so. The latter part of the year
finds the Company moving ahead rapidly in developing its gold mining
operations and in laying solid ground work for developing its recently
acquired offshore tin resources.

The market in General

Despite a turbulent economic market in Thailand in FY05, gold and tin
prices continued to escalate and perform well in the international
commodity markets. During FY05, gold averaged US$444.74 per ounce,
closing at US$513.00 per ounce on 31 December. Tin prices have generally
increased through years FY03 to FY05 averaging US$7.35 per kg and
closing at US$6.66 per kg in FY05. The property development market,
which had improved somewhat in the first half of FY05, weakened in the
fourth quarter as the price of construction materials increased
dramatically due to the increasing prices and ongoing volatility in the
crude oil market.

Mining Activities

The Gold Mining Project at Loei, Thailand

The Company secured US$13.3 million in project financing in the late
FY04 for the first phase of the Loei gold mining project. The financing
took much longer than originally anticipated due to the lenders’ due
diligence, a process beyond the control of the Company. However, the
second half of FY05 saw the development process in full swing as site
clearing and infrastructure development was largely completed and
activity moved on to processing plant and heavy equipment procurement,
and transport to the mining site where concrete foundation work was in
progress in preparation for installations for the 1,000(+) ton per day
processing plant. In addition, excavation and ore stockpiling has also
begun. To assist and supervise in this effort, we have engaged a
world-class engineering team with a proven record in gold plant
construction. Production is expected to begin in the second quarter of
FY06.

The Igneous Rock (Andesite) Quarry at Saraburi, Thailand

In FY05, the Company’s quarrying operations has met with mixed success.
Although the ballast and fine aggregate products are in demand, and
price increases have been sustained, contractors have often not been
able to take delivery due to ongoing logistics problems at the delivery
sites which are mainly large Government projects. However, marketing has
been aggressive with focus centered on the Company’s non-ballast
aggregate products. The Department of Highways has shown considerable
interest in the product for road surfacing, and pursuant to product
testing and negotiations, contractors supplying the highways department
will be able to place larger orders beginning in FY06. Railway ballast
demand 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 region in the near future which we believe will bring a higher
demand for our ballast product.

The Tin Mining Operations at Phuket, Thailand

The Company continues with the policy of hiring contractors to conduct
the Company’s offshore tin mining operations under the direct
supervision of the Company’s experienced mining engineers. However, even
though tin prices have increased dramatically, the extremely high
royalty rates payable to the Royal Thai Government on all tin revenues,
a staggering 24%, has made tin mining operations unprofitable. 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 to see positive results in this
sector in the near future. Pursuant to the Company’s increased holdings
in SML, sourcing in appropriate mining equipment and expertise has been
ongoing during the year, including application for a mining license
covering the maximum 50,000 rai allowable under the law.

Property Development

The Le Metro Condominium Development in Bangkok, Thailand

The Le Metro condominium development continues to be held in abeyance
pending more favorable construction costs which have remained very high
throughout the year. The Company has completed all architectural,
engineering, piling work, the environmental impact study, and all other
regulatory requirements. In addition, the Company undertook advanced
negotiations with another group for a possible joint venture agreement
for the completion of the superstructure. The negotiations include
further feasibility studies which verified the project’s viability. At
this juncture we are still waiting for the prospective partner’s
decision which had been expected earlier in the year. Once construction
prices stabilize in the local market and specific prices are locked in,
the Company again will be in a position to move the project forward.

The Phuket Land Holdings

Land holdings at Phuket remained unchanged during the year. The Company
had previously acquired full ownership of a Phuket Bay land plot which
adjoins two already existing land parcels owned by the Company. The
Company now owns one large contiguous piece of waterfront land at Phuket
Bay which dramatically increases the land value for future development.

Registered Increase in Paid-Up Capital

During FY05 the Company undertook a capital increase exercise by issuing
the additional 151.4 million shares to existing shareholders. Upon
completion of the exercises, the Company’s registered and paid up
capital has increased from 605,551,170 last year to 756,939,463 shares
in FY05, and increasing shareholders’ equity to Baht 1,206.8 million.

In Summary

FY05, as in FY04, saw continued turbulence in the Thai market given the
adverse impacts of the bird flu, unrest in the south, and the recent
tsunami, the year was one of considerable accomplishment. In particular,
two important operational objectives materialized with development of
the gold operation at Loei in full swing at year’s end and the increased
shareholdings in SML which promises to be a major contributor to the
Company’s revenues in the future.