5.  Asset Used in Business Operations

    1.  Assets

  Assets of the Company or subsidiary as at 31 December 2010 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                98,269,519.33      58,460,553.57      

  Building, Building Improvement  90,193,170.68      56,727,786.81      

  Motor Vehicles                  141,638,679.49     33,373,491.53      

  Furniture and Office Equipment  17,916,822.35      3,559,980.34       

  Machinery and Equipment         716,723,379.94     476,057,295.91     

  Construction in progress and    130,673,599.01     108,972,344.28     
  Others                                                                

                                  1,665,552,483.80   1,207,288,765.44   
  ------------------------------- ------------------ ------------------ -----

Details of the Group’s lands: As at 31 December 2010, total company land
is 60 rai 2ngan91.10 sqwah, 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 155rai, 2ngan, 52 sqwah, 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,     | TongkahHarbour  | (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,      | TongkahHarbour  | (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,1ngan=0.25rai, 1 rai=1600sqm.

(A) Four plots ofPhuket land aremortgagedwith Thanachartbank for O/D
amount of Baht 15 million, Commercial loan (P/N) Baht 47 million and
long-term loans amount of Baht 113.64 million as of December 31, 2010.

(B) All land is free-hold

(C) Three piecesare mortgaged with Thanachartbank for O/D amount of Baht
    15 million, Commercial loan (P/N) Baht 47 million and long-term
    loans amount of Baht 133.64 million as of December 31, 2010.

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

  QuantityDepreciable Life No. of Year UsedBook 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     Renewed
                                        2017        

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

Important progress of made in the operation of the quarry, is the
successful in co-ordination withbetween the Company and relevant
government agencies and their staff that led in attainingto signing the
renewed mining leases. With valid mining leases, THL can enter bidding
or and contracting with major construction companies for beingas an
aggregate supplier. The subsequently renewal of furtherattempt to have
another mining leases (28676/15268) subsequently renewed is dependents
on the assessment of business opportunities in the next 5-8 years. This
is due to the fact that andesite, even having with higher durability and
some other engineering properties, is only suitable for specific uses
and thus not as widely utilized in the market, compared to limestone.

Mineral reserve as of December 31, 2010 and 2009 are 78,306 tons and
154,470 tons.

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,
HuayKwang, 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.

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 and extend the
construction permit.

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.