2.7 Litigation

  2.7.1 Offshore Tin Mining Operations

  In July 31, 2003, the Phuket District Attorney filed a lawsuit against
  Tongkah Harbour Public Company Limited (the “Company”) as Defendant 1
  and Managing Director as Defendant 2 stipulating that the Company and
  Managing Director:1) had not used approved equipment to control the
  dispersal of sand and soil and 2) did not report on the replacement of
  motor and equipment. The case had already been settled and closed.

  2.7.2 Gold Mining Operations

  On June 28, 2007, the Department of Primary Industries and Mines
  (DPIM) notified the Company to acknowledge its complaints against
  Tungkum Limited (Subsidiary company) for exporting gold dores
  weighting 105.5153 kgs. out of its mine/metallurgical area without
  filing the request for transportation permit.

  On June 11, 2008 the Company received a copy of formal letter from the
  Loei District Attorney stipulating that the allegation of
  transportation of gold dores without permission between July 25-26,
  2006 was time-barred. Thus, the case is closed.

  2.7.3 Property Development Project

  2.7.3.1 Black Case No. 2071/2548, Red Case No. 2884/2549 of the Civil
  Court

  Construction Cost Consultants Limited partnership (“CCC”) initiated
  legal action against Sky Cliff Limited (“SCL”), a subsidiary of the
  Company, in the Civil Court on May 25, 2005 for full payment of
  service fees amounting to Baht 491,531.24. SCL rejected the claim as
  not all services have been rendered pursuant to the agreement. The
  Civil Court ruled in favor of CCC charging that SCL was to pay the
  above sum plus 7.5% interest. SCL did not accept the judgment and
  lodged an appeal to the Appeal Court on October 11, 2006.

  On September 19, 2007, the Appeal Court and Civil Court summoned both
  parties to appear on November 20, 2007 at 13.30 pm. to hear the
  Court's decision. On said date, the Court informed that SCL was to
  prepare a bond to place with the Court worth the specified amount,
  plus interest calculated from the date of the Civil Court's decision
  to a year in advance (Approximately Baht 600,000). The next court
  appearance was set at February 15, 2008 at 13.30 pm. for consideration
  of the bond.

  On February 15, 2008, the Court postponed the consideration of the
  bond to March 18, 2008. On such date, the Court allowed SCL to use the
  land (Title Deed No. 2615 of THL) as a security for stay of execution.
  The Court also made and appointment for THL's authorized directors or
  his proxy holder to do the security contract with the Court and allow
  the Court to seize the Title Deed within 15 days commencing from
  today, otherwise the Court shall not allow the stay of execution.

  On March 31, 2008, the Court accepted the use of the said land as a
  security for stay of execution. Therefore, SCL made a security
  contract with the Court and allowed the Court seized the Title Deed as
  the security during appeal to the Appeal Court and the case is now
  under the Appeal Court's consideration.

  2.7.3.2 Black Case No.2360/2551 of the Civil Court

  On May 8, 2008, Mr. Bobby Tai Chong Yih (TCY), the Plaintiff, filed a
  plaint against Tongkah Harbour Plc.(THL), the 1^(st) Defendant, Sky
  Cliff Co., Ltd.(SCL), the 2^(nd) Defendant, Sintana Holdings Co.,
  Ltd.(SHL), the 3^(rd) Defendant, Mr. Ronald Wai Choi Ng, the 4^(th)
  Defendant, Dr. John Peter Mills, the 5^(th) Defendant, and Ms. Montha
  Kongkum, the 6^(th) Defendant, on the grounds of a breach of the Joint
  Venture Agreement. The Plaintiff requested that the Court order the
  1^(st) -6^(th) Defendants to make payment of shares and the
  compensation totaling Baht 349,399,623.03 (Three Hundred Forty-Nine
  Million Three Hundred Ninety-Nine Thousand Six Hundred Twenty-Three
  Baht and three Satang).

  We are currently filing charges against TCY for breach of the Joint
  Venture Agreement for failure to arrange for the construction and
  financing of the project which was a fundamental undertaking on the
  part of TCY.

  2.7.3.3 Black Case No. Aor 2132/2551 of the Criminal Court

  On June 9, 2008, Mr. Tai Chong Yih, the Plaintiff, filed a criminal
  plaint against Mr. Ronald Ng Wai Choi, the 1^(st) Defendant, Dr. John
  Peter Mills, the 2^(nd) Defendant, Ms. Montha Kongkum, the 3^(rd)
  Defendant, Tongkah Harbour Plc., the 4^(th) Defendant, Sky Cliff Co.,
  Ltd., the 5^(th) Defendant and Sintana Holdings Co., Ltd., the 6^(th)
  Defendant, charging them with misappropriation, fraud and defamation.
  However, we are preparing a defamation suit as his allegations have no
  ground.

  TCY has alleged that three directors of SCL have perpetrated fraud on
  him. Apart from Mr. Ng Wai Choi as a Managing Director of Tongkah
  Harbour Plc., other directors have never met TCY prior to him taking
  up his position.

  TCY was a former Country Head of a foreign bank in Thailand and only
  after being legally terminated did TCY file fraud charges and damages.
  TCY had failed an important undertaking that was, to arrange for
  finance and construction of SCL’s project prior to April 1, 2007.

  The Board of Directors of SCL and in the opinion of legal counsel
  views that TCY has no ground in his suit. TCY has yet to appear in
  court to substantiate his allegations and charges.