SECTION 1

EXECUTIVE SUMMARY

Core Business Activities and Corporate Focus

Gold and base metal exploration and 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 2007, the Company increased its equity position in Sea Minerals
Limited (SML) from 83.7% to 89.99% from acquiring total additional share
capital. Subsequently, on 13 November 2007, in the Extraordinary General
Meeting of Sea Minerals Limited’s shareholders approved the resolution
to reduce Sea Minerals Limited’s shares from 1,171,976 to 1,054,616 by
canceling 117,360 shares, owned by Southern Kinta Consolidation Limited.
As a result of the reduction in shares, Tongkah Harbour Public Company
Limited’s shareholding in Sea Minerals Limited increased from 89.99% to
99.99% effective on 6 March 2008.

Sea Minerals Limited has also applied for offshore mining leases which
are viewed as having long term potential for Company benefit. Sea
Minerals Limited 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.

Production at the gold mining operation has been improved with a second
Ball Mill, additional crusher installations, and mining at target T-1-8.
Also, progress was made in enlisting joint venture prospects to develop
the Sky Cliff property on Ratchadapisek Road. However, further
development was delayed due to the economic recession and withdrawal of
the intended joint venture partners. The company is now researching
alternatives including sale of the property.

Mining Activities

After Tungkum Limited’s gold mining operation at Loei was officially
brought into production in September 2006, profits were low due to
insufficient production problems. The Company, therefore, decided to
proceed with phase 2 installations, to improve efficiency in existing
operations and prepare to further evaluate nearby mineralized areas to
prove up additional gold ore resources for future production.

In early 2008, we have completed and commissioned a second ball mill,
three additional leach tanks and detox facilities, and oxygenation
facilitators for leach tanks 1, 2 and 3. Our capacity in treating oxides
has increased from 80 tons per hour to 170 tons per hour (achieved). All
these facilities were fully operational in early 2008 and very much in
line with the budget and timeframe. The entire plant expansion was done
in-house by the technical engineering team. The flotation plant’s
expansion is being installed and will be completed by the end of March
2009. Again, all these installations were done in-house by the technical
engineering team.

Year 2008 was a difficult year for the quarry because of poor sales of
rail-way ballast given the current moratorium an activity in the region
by the State Railway of Thailand (“SRT”). However, prospects remain
encouraging that the SRT will commence new double-track and maintenance
projects in the Central Region in the near future for about 850,000 tons
of ballast will be required and which the Company is in a good position
to supply. Otherwise, marketing efforts are ongoing focusing on the
Company’s non-ballast aggregate products.

In offshore tin mining, the Company’s operations remain on hold pending
results of negotiations with the Government to have royalty rates
reduced to more competitive levels. On October 2007, The Government
announced the reduction of tin royalty rates which now makes it
economically viable for the Company to resume its tin mining business.

Tin prices are expected to remain buoyant, and we expect to see positive
results in this sector in the near future. Meanwhile, the Company will
push ahead with laying plans for eventual development of the Sea
Minerals Limited (SML) holdings in which the Company has controlling
interest. Sourcing in appropriate mining equipment and expertise has
been ongoing during the year, including application for a mining license
and mining plans covering the maximum 50,000 rai (8,000 hectares)
allowable under the law.

Property Development

The Sky Cliff Condominium Development at Bangkok, Thailand

The Sky Cliff Limited (“SCL”), a subsidiary company of Tongkah Harbour
Public Company Limited plans to commence development and construction of
the 29-storey condominium with 629 residential units.

The condominium is located at 14 Ratchadapisek Road, Huaykhwang,
Bangkok. The Project is scheduled for construction in early Q2 year 2008
and estimated to complete within 24 months. However, due to the current
global financial markets uncertainty and the political instability in
Thailand, both companies joint venture company and SCL have mutually
agreed to suspend all agreements. 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 negotiation with a substantial foreign entity 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.

Phuket Land Holdings

The Company had previously acquired full ownership of a Phuket Bay land
plot which adjoins two existing land parcels already owned by the
Company. As a result, the Company now owns one large contiguous piece of
waterfront land at Phuket Bay which dramatically increases the land
value and prospects for future development.

On January 2008, The Company entered into an agreement to dispose its
Phuket Land holding in the town area for a consideration of Baht 60M.

Registered Increase in Paid-Up Capital

During FY08 the Company undertook no further capital increased
exercises. After the completion of rights issued exercises in 2005, the
Company’s paid up capital has increased from 605,551,170 last year to
756,939,463 shares. Currently, the amount of shareholders’ equity is
Baht 1.165 billion.

In Summary

THL’s total revenues more than doubled to THB 980.41 million on the back
of higher gold sales which rose by over 2 times to THB 881.42 million
arising from higher gold production in 2008 and the increase in gold
prices. Total revenues also increased due to gains made through the
sales of fixed assets amounting to THB 77.90 million, gains made through
the net sales of purchased gold of THB 7.12 million and interest income
of THB 7.31 million. THL’s earnings before interest, tax, depreciation
and amortization (EBITDA) grew to THB 371.53 million compared to THB
62.55 million in 2007.

As at balance sheet date 31 December 2008, THL recorded a net positive
cash flow of THB 350.9 million. This was largely derived from cash
inflows from our gold mining operations of THB 313.37 million. This was
offset by cash outflows from operations of THB 225.16 million resulting
in net cash inflow from operations of THB 88.2 million. THL additionally
benefitted from a net cash inflow from financing activities amounting to
THB 198.6 million. At year end our total cash and deposits with banks
amounted to THB 537.2 million.