SECTION 1

EXECUTIVE SUMMARY

Core Business Activities & Corporate Focus

The Company continues to focus its strategy and resources on our core
capabilities of gold and base metal mining, tin mining, igneous rock
(andesite) mining, and property development, both directly and through
our subsidiaries. Our aim is to accelerate operational and competitive
economic growth in these core areas through an active, but financially
disciplined and transparent program. We are determined to create value
for our stakeholders by implementing clear strategies that ensure
quality products, sustained operational excellence through effective
management, and ongoing implementation of environmentally sound
policies.

The Market & Operations in General

Although global economic activities were subdued in FY03 by the war in
Iraq, the Thai economic market experienced much improvement.
Accordingly, the Company was able to implement a number of key
initiatives that had been previously postponed pending a more favorable
economic business environment. Most notably, the Company’s subsidiary,
Sky Cliff Limited, was able to commence development of its 29-storey
luxury condominium project.

While improved market conditions further assisted the Company in
preparation to implement the Company’s gold mining project, quarry sales
were frustrated in FY03 by an extremely low demand for railway ballast
given the lack of projects initiated by the State Railway of Thailand.
The Company’s tin operations, benefited from an increase in the
international market, but experienced some decline in FY03 due to
reduced production facilities.

The Company’s assets are secure and relatively free from foreign debt
exposure. However, the domestic debt has increased due to the startup of
the condominium project and construction of infrastructure for the gold
mining project. The total consolidated debt to equity ratio increased
from approximately 0.16 times in FY02 to 0.35 times in FY03.

The Re-Listing of the Company’s Shares on the Stock Exchange of Thailand
(“SET”)

Subsequent to suspension in 1997 due to reduced earnings from tin
mining, the Company’s shares recommenced trading on 25 March 2003 under
the REHABCO sector of the SET upon having met all re-listing
requirements. Since the resumed trading, we are pleased to report that
the Company’s shares have performed well in the market.

The Gold Mining Project at Loei, Thailand

The Company is most pleased to finally report that all six gold mining
licenses required to commence its first phase of gold production were
officially presented to the Company by the Royal Thai Government on 14
March 2003. The Company has since concentrated its efforts on securing
mine development financing. Integral to this process was the
commissioning of a qualified third party report confirming the project’s
ore resources, reserves, and ore processing methodology. The detailed
analysis was completed in late August by an Australian firm well
recognized by global banking institutions for their expertise in the
gold mining industry. The report’s findings concluded that, “the ‘Proven
Ore Reserve’ component together with the much smaller ‘Probable Ore
Reserve’ component is sufficiently high to give any banker a guarantee
of low risk mining investment. [1] Based on our negotiations with
several banks, the Company is confident that a full financing package
will be secured in FQ04 whereupon construction of the processing plant
will commence immediately. The Company feels that gold prices have not
yet peaked and, accordingly, has avoided any forward gold sales. In
preparation for mine and processing plant construction, expected to be
completed this year, site infrastructure development, raw material
verification, and sourcing of essential goods and services, is ongoing.

The Igneous Rock (Andesite) Quarry at Saraburi, Thailand

FY03 proved to be a challenging year for the quarry due to poor sales of
railway ballast given the relative inactivity by the State Railway of
Thailand (“SRT”) in the region. Recognizing the need to diversify the
quarry’s financial dependence away from ballast, the Company dedicated
much of FY03 to promoting the Company’s aggregate product. Our efforts
are proving successful. Most recently, the Company’s product was
approved as the only aggregate in the region meeting the specifications
of the Highway Department for asphaltic road surfacing. This designation
has substantially increased demand for the Company’s product, which now
also commands a better price per ton. In addition, the Company is
seeking a venture agreement with another firm to manufacture
pre-stressed, concrete railway sleepers utilizing the Company’s
aggregate. Given the number of new infrastructure projects planned by
the SRT in FY04 and beyond, prospects for both increased ballast and
aggregate sales looks encouraging.

The Tin Mining Operations at Phuket, Thailand

The Company continues to contract out mining of the Company’s off-shore
concessions under its close technical and engineering supervision.
Profit to the Company is based on a production sharing scheme with the
Contractor. Due to such factors as reduce number of dredges operating,
inclement weather, dredge maintenance, production output in FY03 was
less than in FY02. The price of tin, however, improved progressively
throughout the year and has remained elevated. In order to capitalize on
the higher tin price, the Company is negotiating to add two more dredges
to increase production capacity in FY04.

The Le Metro Condominium Project at Bangkok, Thailand

Given the buoyant property market, the Company revived its pre- 1997
plans to develop a service apartment block on its land at Rachadapisek
Road. Analysis indicated, however, that a luxury condominium would be a
more appropriate development than serviced apartment. Development of the
29-storey building (“Le Metro”) commenced towards and of FY03. To date,
all piling work has been completed with construction for the
superstructure slated to commence in early FY04. A sales office at the
site opened in late November FY03, where sales to the public have been
ongoing. The property is at a prime location next to the Rama IX subway
station and is only one traffic light away from the expressway,
highways, and motorway. The building’s premium quality and convenience
has attracted a positive response. Financing for the project is already
approved.

The Land Holdings

In FY03, the Company increased its land and property holdings by adding
two new properties, including the 7^(th) floor of Tower I at Muang Thai
Phatara Complex for use as the Company’s main office. This move was
required to accommodate the construction of the Le Metro condominium
project where the Company’s office had been located. A 6.88 rai parcel
of land at Phuket Bay, which had belonged to the Company years ago, was
also purchased. The parcel connects two existing properties owned by the
Company, thus providing a contiguous waterfront land and bank at Phuket
Bay and more options for future development. The land is currently
utilized in the Company’s tin mining operations.

As reported in FY02, the Company had submitted a proposal to the Royal
Thai Government for an integrated rehabilitation and development project
at Phuket Bay. In FY03, the Company revised its proposal after attending
a series of community based discussion programs on development
alternatives for the Bay. The revised proposal continues to focus on the
rehabilitation of Phuket Bay (including the completion of the Princess
Mother’s Park and the preservation of the mangrove forest), the
development of an international cruise and ferry terminal, conference
and exhibition center, family-oriented theme park, and marina. The
concept of the cyber and container ports, which had been incorporated in
the FY02 proposal, were abandoned in deference to community input. The
proposal is now under consideration by the Royal Thai Government.

In Summary

FY03 should be viewed as an extremely productive year with many
objectives achieved in all core areas. We are particularly pleased to
obtain the first batch of gold mining licenses, re-listing of the
Company’s shares on the SET, and commenced construction of the Le Metro
condominium project. We are further encouraged by the positive prospects
for both the quarry and tin operations. With the ongoing dedication of
our management and staff and determined focus on long-term goals, we
feel that we have laid foundations for better operating results and
opportunities for growth in FY04.

[1] Information Memorandum on the Loei Gold Project by Como Engineers
Pty Ltd., from the Statement of Ore Resources & Reserves as calculated
by Mr. Edward Brennan, Economic Geologist.