4. Business Operation

Mining and Production

4.1 Tin Mining Business

The Company owns 99.99% of the following tin mining leases at Phuket,
Thailand. The Company is persevering to obtain the final mining licenses
from the authorities. Additionally, the company has lobbied for royalty
rate reduction which was approved in late 2007.

In FY09 the Company has no income from tin operation.

Meanwhile, the Company is pursuing the ground work involved in preparing
its Sea Minerals holdings for future development. Activities now in
progress include filing of mining plans, reviewing and selection of
deep-water mining technique, sourcing relevant prospective mining
expertise and operators, resource verification, and data organization in
suitable mining software for ongoing control.

Assets of the Company (which primarily is the proven reserves) amongst
others include engineering drawings (see following pages) and equipment
and trained technical personnel to process ore.

[]

[]

[]

4.2 Igneous Rock (Andesite) Mining Business

THL’s igneous rock (andesite) mine is located near the town of Kaeng
Khoi in central Thailand, approximately 140 km transport distance from
Bangkok. Quarry operations commenced in 1999 after having identified and
surveyed minable resources of about 12 M tons. A further 15 M tons of
minable resources are indicated in the surveyed zone which is open
laterally and to depth. Current operations utilize about 215 rai
(344.000 sq m) plus crushing plant, service, maintenance, and stockpile
areas.

+--------------+---+---------+---+-------------+---+------------------------+
|              |   |   Area  |   |             |   |                        |
+--------------+---+---------+---+-------------+---+------------------------+
|   Mining     |   |   Rai   |   |   Sq. m.    |   |   Expiry date          |
|   right no.  |   |         |   |             |   |                        |
+--------------+---+---------+---+-------------+---+------------------------+
|              |   |         |   |   142,323.2 |   |   May, 2009            |
|  28676/15268 |   |  88.952 |   |             |   |                        |
+--------------+---+---------+---+-------------+---+------------------------+
|              |   |         |   |   247,467.2 |   |   January, 2007        |
|  28675/15632 |   | 154.667 |   |             |   |                        |
+--------------+---+---------+---+-------------+---+------------------------+

THL’s quarry operates under a ten year mining license, no. 28676/15268,
approved in 1999 by the Ministry of Industry. License no. 28675/15632
(under Sintana Resources Company Limited) has expired and is in the
process of being renewed. The two surveyed licensed areas total about
243.5 rai (about 390,000 sq m)

4.2.1 Mining and Production

Rock crushing operations have been contracted to Cholsin Limited, the
Company’s 72.10% owned subsidiary, since June 1998.

Production capacity of the crushing plant is about 250 tons per hour.
Sales and prices charged are dependent on demand for any particular
product and the ability to meet client specifications (such as particle
shape and abrasive index). At times, some product deliveries are
postponed at the request of the customer and, therefore, deliveries are
not always according to contract schedules.

In FY09 andesite sales increased from Baht 4.63 million to Baht 8.04
million when compared to the previous year.

+----------------+---------+---------+---------+---------+---------+
|   2009         |         |         |         |         |         |
|   AGGREGATE    |         |         |         |         |         |
|   SALES (tons) |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
|   Item         |   Qtr 1 |   Qtr 2 |   Qtr 3 |   Qtr 4 |   Total |
+----------------+---------+---------+---------+---------+---------+
|   Road base    |         |         |   ,3    |         |   5     |
|                |  703.18 |  792.29 | ,246.84 |  730.90 | ,473.21 |
+----------------+---------+---------+---------+---------+---------+
|   Railway      |         |         |   13.51 |         |         |
|   Ballast      |  350.55 |  169.31 |         |  113.75 |  647.12 |
+----------------+---------+---------+---------+---------+---------+
|   Aggregate ¾” |   5     |   4     |   10    |   8     |   28    |
|                | ,388.08 | ,652.32 | ,386.50 | ,324.14 | ,751.04 |
+----------------+---------+---------+---------+---------+---------+
|   Dust         |         |         |   7     |   4     |   8     |
|   (Coarse)     |  588.65 |  914.16 | ,352.37 | ,112.83 | ,968.01 |
+----------------+---------+---------+---------+---------+---------+
|   Dust (Fine)  |         |         |         |         |   2     |
|                |  471.11 |  183.41 |  634.80 |  820.07 | ,109.39 |
+----------------+---------+---------+---------+---------+---------+
|   TOTAL        |   7     |   6     |   17    |   14    |   45    |
|                | ,501.57 | ,711.49 | ,634.02 | ,101.69 | ,948.77 |
+----------------+---------+---------+---------+---------+---------+
|   2008         |         |         |         |         |         |
|   AGGREGATE    |         |         |         |         |         |
|   SALES (tons) |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
|   Item         |   Qtr 1 |   Qtr 2 |   Qtr 3 |   Qtr 4 |   Total |
+----------------+---------+---------+---------+---------+---------+
|   Road base    |   1     |         |   4     |   2     |   9     |
|                | ,283.77 |  438.23 | ,698.82 | ,674.12 | ,094.94 |
+----------------+---------+---------+---------+---------+---------+
|   Railway      |   52.59 |         |         |   1     |   1     |
|   Ballast      |         |  131.07 |  214.94 | ,080.24 | ,478.84 |
+----------------+---------+---------+---------+---------+---------+
|   Aggregate ¾” |   2     |         |   6     |         |   11    |
|                | ,776.35 |  550.14 | ,960.84 |  816.72 | ,104.05 |
+----------------+---------+---------+---------+---------+---------+
|   Dust         |   1     |         |   1     |         |   3     |
|   (Coarse)     | ,519.55 |  359.28 | ,755.36 |  182.82 | ,817.01 |
+----------------+---------+---------+---------+---------+---------+
|   Dust (Fine)  |         |         |         |         |   2     |
|                |  761.17 |  588.37 |  556.72 |  501.27 | ,407.53 |
+----------------+---------+---------+---------+---------+---------+
|   TOTAL        |   6     |   2     |   14    |   5     |   27    |
|                | ,393.43 | ,067.09 | ,186.68 | ,255.17 | ,902.37 |
+----------------+---------+---------+---------+---------+---------+

4.2.2 Marketing and Competition

A) Marketing Policy 

The quarry is one of the leading producers and suppliers of hard igneous
rock materials in central Thailand. The quarry produces a wide range of
aggregate sizes applicable mainly to the construction, road building,
and railway industries. Products are made to comply with specifications
set by the State Railway of Thailand (SRT), the Highway Department, and
the MRTA, thereby making them more competitive in the market place. The
quarry’s andesite aggregate is the only product in the Kaeng Khoi region
meeting the Highway Department’s specifications.

The Company prospect that the SRT will commence new double-track
projects in the Central Region and northeast regions in the near future
where our product is most competitive.

B) Competition

Located about 140 km from Bangkok, the product has several advantages in
marketing, including competitive transport costs. The deposit is the
only one of its kind known in the area and is central to a large region
of potential industrial expansion extending north and northeast of the
Bangkok area. There is no other deposit at Amphur Wiharndaeng, which
produces for its own projects and is not in high demand.

There are not many other readily available rock types that meet
standards set by the SRT. Highly silicified rock or igneous rock
material, such as the andesite, is required to meet current standards.
Alternatives of similar quality supplied by some competitors are
rhyolite, granite, and basalt. Ordinary limestone does not qualify. In
addition, our product is the only aggregate meeting the specifications
of the Highway Department for asphaltic road surfacing in Kaeng Khoi.

4.2.3 Resources and Products

(A) Resources

In mining lease areas, Andesite resources were found to 30 meter-depth
from surface. The surveyed zone is open laterally and to depth
indicating additional minable resources. Surveyed resources currently
under license are about 12 M tons and additional resources are estimated
to be at least about 15 M tons.

The andesite mining is an open pit operation and entails site clearing
followed by controlled bedrock drilling and blasting, and transport to
stockpiles or to the crushing plant. As far as possible, all mining and
crushing operations are coordinated with immediate delivery requirements
so that transport and other operating costs are kept in line with
current orders.

Environment Impact

The andesite mining impacts on the environment to the extent that the
surface is altered and there is some noise and dust from blasting. The
Company operates in accordance with OEPP, DMR, and Labour Department.
The guidelines include safety practice and environmental maintenance
procedures in and around the site area such as:

1.  Rows of trees were planted around the site before mining began to
    help reduce noise and dust into neighboring areas.

2.  Vegetation and soil are cleared from the excavation site before
    drilling and blasting, otherwise there is no lasting damage to the
    immediate environment, and no unnatural materials are used.

3.  Rock blasting is controlled to reduce shock and dust. The blasting
    does not result in any appreciable rock fragments falling outside
    the lease area.

4.  Water spraying apparatus are installed in several locations for dust
    suppression.

5.  Workers wear protective goggles and face masks against dust in their
    work areas. The Company spends for protective equipment, and on
    health checks of workers and staff.

4.3 Gold Mining Business

Tungkum Limited (TKL), an exploration and mining company registered in
Loei, Thailand, with control and working interest 98.86% held by Tongkah
Harbour Public Company Limited (THL) has 100% control of the mineral
concessions for exploration and mining of gold and related minerals at
25 km southwest of Loei Province, northeast Thailand.

On being awarded the Block 4 concession in October 1991, subsequent to
international bidding, THL entered into an agreement with the Department
of Mineral Resources (DMR) for exploration and mining of gold and
related minerals. As required, a signature bonus of Baht 5.8 million was
paid to the DMR and committed THL to pay a Baht 6.5 million bonus for
the first batch of mining license applications approved. In addition,
THL agreed to maintain the right of the Royal Thai Government to buy 5
to 10% of TKL shares at cost plus interest at MLR including
administration costs, pay 2.5% royalties, and production sharing at
1.5%.

This development was a direct result of earlier regional exploration
during the 1960’s and later decades by the DMR in cooperation with the
United States Geological Survey and, subsequently, with expertise from
several other foreign countries including Germany, Britain, and Canada
which granted (CAD)50 million to the DMR for mapping of mineral
resources for the whole of Thailand.

On receiving Special Prospecting Licenses (SPL’s) on the concession in
1992, an extensive mineral exploration program was initiated. The
geological team consist of Company geologists and foreign exploration
expertise from Australia, Canada and the U.S. By 1995, significant
economically minable gold resources were delineated and six initial
mining license applications were filed. Tungkum Limited’s mining plan
was then submitted to the DMR and subsequently approved by all the
Government regulatory agencies concerned.

Pursuant to securing project financing through a USD 13.3M loan from
EXIM Bank, and completion of the development and commissioning phases,
Tungkum Limited’s gold mining operation at Loei was brought officially
into production in September 2006. Upon some technical problems being
corrected, throughput was brought up to the desired rate of about 1500
tons per day and recovery levels of around 90%. In 2007 an agreement was
reached with Deutsche Bank on a USD 25M refinancing package which will
enable the Company to retire the loan with the EXIM Bank and proceed
with phase 2 installations and improve efficiency in existing
operations. In April 2008, the earlier loan with Deutsche Bank was
refinanced with a new loan amounting to USD 35M to enable plant
expansion and to build a flotation processing plant, and to further
evaluate nearby mineralized areas with the objective of proving up
additional gold ore resources for future production.

4.3.1 Gold Mining and Production

A) Mining Development Plans

The Project is an open pit surface to near surface operation utilizing
carbon-in-pulp (CIP) methodology. The processing plant is designed to
process up to 3,500 tons of ore per day with initial production mainly
from the readily available oxide ore. Gold dore produced is being sent
to Heraeus Limited’s refinery in Hong Kong,

With gold production and refining ongoing, plans are in progress to
delineate further ore resources focusing on: 1) mineralized sectors in
continuity with the zones now blocked out for initial mining, 2) in
other nearby oxide zones, and 3) in several regions of primary gold
and/or base metal mineralization where assays show highly significant
values for one or more of gold, copper, lead, and zinc.

The above plans will be implemented by Tungkum Limited’s management team
consisting of expertise in mineral exploration and mining, business,
finance, and administration.

B) Major expansions to the existing plant

The production levels increased upon the second ball mill,
leach-adsorption detox tanks, and thickener, coming into operations. The
second mill was able to process the transitional and sulfide ores more
efficiently and which was also of higher grade than the oxide ore. The
installation of the second ball mill and leach-adsorption detox tanks
was completed in December 2007 and the thickener was completed in
February 2008.

The new flotation plant costed approximately USD3 M and was successfully
commissioned in July 2009.

60% of the gold is recovered for sale to smelter without the using
reagents like SMBS and cyanide. This translates into highly significant
costs savings going forward.

+-----------------------------------------------------------------------+
| Flotation Process                                                     |
|                                                                       |
| Flotation is a process that principally deals with base metals, such  |
| as copper, lead, zinc, and nickel that usually occur in a mineral     |
| from which they cannot be separated by normal milling. Instead, the   |
| mill separates the mineral(s) from the ore by flotation to produce    |
| “concentrate(s),” which is the typical product from a base metal      |
| mine. The concentrates are then transported to a smelter and refinery |
| that are usually a considerable distance away.                        |
|                                                                       |
|   What is the purpose of a flotation unit?                            |
|                                                                       |
|   • To cost effectively remove valuable minerals from a slurry.       |
|                                                                       |
|   How is this done?                                                   |
|                                                                       |
|   • Flotation uses air forced into the cell to liberate particles of  |
|   valuable material that are attracted to rising air bubbles, hence   |
|   separating them from the host slurry.                               |
|                                                                       |
|   Basic Theory of Flotation                                           |
|                                                                       |
|   • Air is injected into the cells to create bubbles.                 |
|                                                                       |
|   • Reagents are also added to react with the valuable mineral and    |
|   make the mineral particles hydrophobic. (Water repelling)           |
|                                                                       |
|   • This causes the particles to attach to the bubbles.               |
|                                                                       |
|   • These bubbles rise to the surface of the flotation unit to form a |
|   froth which is removed via the launders.                            |
|                                                                       |
|   • The froth is then cleaned by passing it through a series of       |
|   smaller flotation units.                                            |
|                                                                       |
|   • This process is repeated until the final grade concentrate is     |
|   achieved.                                                           |
|                                                                       |
|   • The remaining slurry exits from the bottom of the flotation cell  |
|   and continues through the other cells                               |
|                                                                       |
|   • Other reagents are often added to ensure maximum recovery of the  |
|   mineral.                                                            |
|                                                                       |
| []                                                                    |
|                                                                       |
| View of Outoutec Flotation Cells that are being used at Tunkum.       |
|                                                                       |
| The concentrates often contain small quantities of precious metals    |
| (enhancing value) and may contain undesirable impurities, such as     |
| mercury or arsenic (reducing value). The premium paid by smelters for |
| precious metal content is referred to as a “credit” and the reduction |
| in payment because of impurities (or high moisture content) is most   |
| often called a “penalty.”                                             |
|                                                                       |
| Base metal compounds are typically sulfides and most often occur in   |
| the ore along with other (unwanted) iron sulfide compounds, such as   |
| pyrite, marcasite, pyrrhotite, and arsenopyrite. Base metal ores from |
| near the surface may have had the sulfide compounds converted to      |
| oxides by the force of nature. The oxide zone of a base metal deposit |
| in hard rock is typically only in the order of 10 m deep; however,    |
| there are cases where the oxidation penetrates to a depth of over 120 |
| m. Oxide ores (particularly partially oxidized ores or                |
| “over-oxidized” ores that contain a native base metal) represent a    |
| challenge for the mill, which is normally designed to be efficient in |
| dealing only with sulfide ores. On the other hand, oxide ores lend    |
| themselves to very economical extraction by direct cyanide leaching   |
| (for gold and silver) or SX-EW which is confined to copper ores. This |
| has been the case at Tungkum. However, the bottom of the oxide ores   |
| has essentially been reached, and the older direct leaching with      |
| dilute cyanide is no longer effective.                                |
|                                                                       |
| The principal gold bearing sulphide mineral is chalcopyrite (CuFeS₂), |
| which contains the copper present. Next, there is a massive amount of |
| pyrrhotite (FeS) present. The plans are to make 2 concentrates.       |
|                                                                       |
| A copper concentrate will assay between 18 and 25% Cu, and carry      |
| between 60 to 80 grams per tonne of Au. It will also assay about 30%  |
| S. The chemical conditions will be adjusted, and the tailings from    |
| this concentrate will be floated to produce an iron sulphide          |
| concentrate. This will average 53% Fe and 33 % S. Concentrates like   |
| this are in demand in southern China as a source of both sulphur and  |
| iron. The sulphur is roasted out of the concentrate to make sulphuric |
| cid. If there are any traces of gold or silver, they are subsequently |
| removed by leaching, and final tailings sold as “purple ore”, which   |
| is usually regarded as a premium feed for small to middle sized blast |
| furnaces.                                                             |
+-----------------------------------------------------------------------+

C) 2009 Gold Price

During the fiscal year 2009, gold prices started strongly in the first
quarter, surpassing the USD 1,212.50/ oz level in December Continued
good economic data eventually brought investors back and gold recovered
to close the year at USD 1,087.50/oz.  

  []

D) Project Financing

Project development was initially financed by a local consortium of
banks. On 29 December 2006, TKL signed a loan agreement with Deutsche
Bank for USD 25 million, and part of the new loan was utilized to
refinance the local consortium banks’ agreement. The drawdown of USD 25
million was then completed on 29 January 2007. The remaining loans will
be utilized for further plant expansion and proving up of reserves. At
the end of 2007, the Company had a remaining loan balance of USD 19.27
million; USD 2.5 million was already spent to improve and expand
production by installing the second ball mill and crushing plant
equipment to treat T-1-8 ore expected in early 2008. In April 2008, the
USD 25 million loan with Deutsche Bank was refinanced with a new USD 35
million loan to enable plant expansion and to build a 700,000 tpa
flotation processing plant.

4.3.2 Marketing and Competition

A) Marketing Policy 

In the gold mining operations, the product is bought and processed by
the refinery concerned. Prices are at international standards and vary
according to worldwide demand. The Royal Thai Government has the first
option to buy the gold output at the going world rate.

B) Competition

There is only one other registered commercial gold mining project in
production in Thailand at this time. As gold sales value will depend on
the international market, any additional producers in the country are
not likely to affect prices.

4.3.3 Resources and Products

A) Mining Concession and Licenses

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    |         |                  | 93.09          |
| MINING CONCESSION     |         |                  |                |
| AREA:                 |         |                  |                |
+-----------------------+---------+------------------+----------------+

Board of Investment (BOI) Approval

Tungkum Limited has received certain Board of Investment (BOI) approvals
from the Royal Thai Government.  Most significantly, Tungkum Limited
will have the following benefits: 

1) a 100% exemption on raw material import duties for 5 years until 31
Jan 2011 which can regain this benefit again after last expired date ;
and

2) an 8 year exemption from corporate income tax and a 50% exemption for
5 years thereafter. The benefit took effect on the first day of revenue
which was 15 September 2006; and

3) Tungkum is in process of applying from BOI full exemption from import
duties on machinery till April 2009. 

Resources and Mineralization

Measured and inferred resources (consisting of gossanous, surface, and
near surface oxide ore) total 4.49 M tons averaging 4.14 g/t gold.
Independent third party experts in the industry have recently evaluated
TKL’s ore reserves and resources. The report, compiled (reconfirmed in
November 2006) by Mr. Edward Brennan, BE (app. geo.) FausImm, MMICA, CP
(geo.), MGSA, MCIM, detailed the following:

+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Ore     |        |   Grade |            |   Strip |
|   |  Target |   Type    | Tonnes |   (g/t  |  Contained |   Ratio |
|   |   Area  |           |        |   Au)   |   Gold     |         |
|   |         |           |        |         |   (oz)     |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-1   |   Oxide   |   3    |   2.71  |   27,274   |         |
|   |         |           | 13,000 |         |            |         |
| a |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   6.66  |   18,845   |         |
|   |         | ransition | 88,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |   8    |   6.78  |   189,012  |         |
|   |         |           | 67,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Non     |   6    |   5.74  |   117,097  |         |
|   |         | -mineable | 34,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |   6    |   5.79  |   118,034  |   1 :   |
|   |         |  Mineable | 34,000 |         |            |   2.43  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |   1,2  |   5.77  |   235,131  |         |
|   |         |           | 68,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-1-8 |   Oxide   |   2    |   3.79  |   35,219   |         |
|   |         |           | 89,000 |         |            |         |
| a |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   2.46  |   554      |         |
|   |         | ransition |  7,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |        |   2.61  |   5,875    |         |
|   |         |           | 70,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Non     |        |   2.75  |   5,480    |         |
|   |         | -mineable | 62,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |   3    |   3.70  |   36,167   |   1 :   |
|   |         |  Mineable | 04,000 |         |            |   1.95  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |   3    |   3.54  |   41,647   |         |
|   |         |           | 66,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Qz    |   Oxide   |        |   3.93  |   6,066    |   1 :   |
|   |   Spur  |           | 48,000 |         |            |   NIL   |
| a |         | (eluvial) |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Gsn   |   Oxide   |        |   1.47  |   756      |   1 :   |
|   |   Cap   |           | 16,000 |         |            |   NIL   |
|   |         | (eluvial) |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-1-S |   Oxide   |   3    |   2.73  |   30,372   |         |
|   |         |           | 46,000 |         |            |         |
| b |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   16.29 |   3,667    |         |
|   |         | ransition |  7,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |   1    |   8.07  |   28,284   |         |
|   |         |           | 09,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Non     |   1    |   7.38  |   29,911   |         |
|   |         | -mineable | 26,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |   3    |   3.00  |   32,412   |   1 :   |
|   |         |  Mineable | 36,000 |         |            |   3.50  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |   4    |   4.20  |   62,323   |         |
|   |         |           | 62,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-7   |   Oxide   |        |   4.90  |   5,514    |         |
|   |         |           | 35,000 |         |            |         |
| b |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   4.59  |   1,476    |         |
|   |         | ransition | 10,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |        |   6.92  |   1,558    |         |
|   |         |           |  7,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |        |   5.11  |   8,548    |   1 :   |
|   |         |           | 52,000 |         |            |   4.97  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-88  |   Oxide   |        |   3.64  |   5,969    |         |
|   |         |           | 51,000 |         |            |         |
| b |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   5.13  |   1,814    |         |
|   |         | ransition | 11,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |   -    |   -     |   -        |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |        |   3.90  |   7,784    |   1 :   |
|   |         |           | 62,000 |         |            |   6.74  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   T-3   |   Oxide   |   6    |   3.91  |   76,000   |         |
|   |         |           | 05,000 |         |            |         |
| b |         |  Inferred |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   T       |        |   4.11  |   9,000    |         |
|   |         | ransition | 69,000 |         |            |         |
|   |         |           |        |         |            |         |
|   |         |  Inferred |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Sulfide |   1,5  |   2.94  |   146,000  |         |
|   |         |           | 39,000 |         |            |         |
|   |         |  Inferred |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |   Total   |   2,2  |   3.25  |   231,000  |         |
|   |         |           | 13,000 |         |            |         |
|   |         |  Inferred |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Total |   Oxide   |   1,0  |   3.15  |   111,212  |         |
|   |         |           | 98,000 |         |            |         |
| c |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Total |   T       |   1    |   6.63  |   26,222   |         |
|   |         | ransition | 23,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Total |   Sulfide |   1,0  |   6.64  |   229,561  |         |
|   |         |           | 53,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Total |   Non     |   8    |   5.95  |   157,365  |         |
|   |         | -mineable | 22,000 |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |   Total |           |   1,4  |   4.49  |   209,630  |   1 :   |
|   |         |  Mineable | 52,000 |         |            |   2.73  |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |   2,2  |   5.02  |   366,995  |         |
|   |         |           | 74,000 |         |            |         |
| G |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| a |         |           |        |         |            |         |
| n |         |           |        |         |            |         |
| d |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| t |         |           |        |         |            |         |
| o |         |           |        |         |            |         |
| t |         |           |        |         |            |         |
| a |         |           |        |         |            |         |
| l |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| l |         |           |        |         |            |         |
| e |         |           |        |         |            |         |
| s |         |           |        |         |            |         |
| s |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| T |         |           |        |         |            |         |
| - |         |           |        |         |            |         |
| 3 |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| i |         |           |        |         |            |         |
| n |         |           |        |         |            |         |
| f |         |           |        |         |            |         |
| e |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| e |         |           |        |         |            |         |
| d |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+
|   |         |           |   4,4  |   4.14  |   597,000  |         |
|   |         |           | 87,000 |         |            |         |
| G |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| a |         |           |        |         |            |         |
| n |         |           |        |         |            |         |
| d |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| t |         |           |        |         |            |         |
| o |         |           |        |         |            |         |
| t |         |           |        |         |            |         |
| a |         |           |        |         |            |         |
| l |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| w |         |           |        |         |            |         |
| i |         |           |        |         |            |         |
| t |         |           |        |         |            |         |
| h |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
|   |         |           |        |         |            |         |
| i |         |           |        |         |            |         |
| n |         |           |        |         |            |         |
| f |         |           |        |         |            |         |
| e |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| r |         |           |        |         |            |         |
| e |         |           |        |         |            |         |
| d |         |           |        |         |            |         |
+---+---------+-----------+--------+---------+------------+---------+

KEY

  ----- -----------------------------------------------------------------
  A     Constitutes Phase I of the Phu Thap Fah Mining Program; Mining
        Licenses Approved (25 yrs); Total Mining Area = 2.065 sq. km.

  B     Constitutes Phase II; Mining Licenses Pending Final Approval of
        Mining Plan; Mining Plan to be filed upon commencement of Phase I
        production

  C     Constitutes Total for Phase I and II; Does Not Include the
        Regional Area of which mineralization has been intercepted but
        not calculated
  ----- -----------------------------------------------------------------

B) Environmental Management

Environmental impact studies for the Project were conducted in
accordance with the Office of Natural Resources and Environmental Policy
and Planning (“ONEP”, previously known as “Office of the Environment
Policy and Planning or OEPP”) guidelines and consisting of a coordinated
study involving SPS Consulting, the Department of Geotechnology at Khon
Kaen University, NSR Environmental Consulting PTY LTD, Australia, and
Environmental Geochemical International PTY LTD, Australia. The
comprehensive program included ground water, soil mechanics, and soil
profile studies, all of which were approved by the ONEP.

Prior to production baseline surveys on soil and groundwater properties
were conducted by the Ground Water Research Center (GWRC) at Khon Kaen
University. Since production began, the GWRC team has been conducting
environmental site monitoring in accordance with ONEP and DPIM
regulations

TKL’s staff and management are committed to sound environmental
practices and compliance with all applicable laws and regulations during
operations. In addition, TKL will initiate future rehabilitation of
mined areas for suitable post-mining beneficial land use.

4.4 Property Development

In January 2008, the Company signed an agreement to sell land in Phuket
town with area 13,644 square meter to a company at Baht 60 million. The
land was purchased in 1981 at a cost of Baht 7.85 million. Tongkah
Harbour received payment for this sale in year 2008.

Despite this sale, Tongkah Harbour Public Company Limited still owns a
sea facing land parcel in Phuket totaling 35,796.4 sq m. This land
parcel has prospects for major waterfront development in the future.

The following table provides a breakdown of the Company’s current land
holdings and their status.

+------------+--------+------------------------------------------------+
| THL        |        |                                                |
| PROPERTY   |        |                                                |
| HOLDINGS   |        |                                                |
+------------+--------+------------------------------------------------+
| Area (sq   | Loc    | Property Description:                          |
| m):        | ation: |                                                |
+------------+--------+------------------------------------------------+
| 5,447.60   | B      |   Land held by THL’s 75% owned subsidiary, Sky |
|            | angkok |   Cliff Limited at the Rachadapisek / Rama IV  |
|            |        |   MRTA station - a prime location near the     |
|            |        |   CBD. Development site of Le Metro office and |
|            |        |   service apartments / condominiums.           |
+------------+--------+------------------------------------------------+
| 1,844.69   | B      |   THL corporate headquarters located at the    |
|            | angkok |   7th Floor of the Muang Thai Phatra Complex,  |
|            |        |   Tower 1.                                     |
+------------+--------+------------------------------------------------+
| 35,796.40  | Phuket |   A large land bank located on the sea front   |
|            |        |   of Phuket Bay. Currently the site for THL’s  |
|            |        |   Phuket operations. Prime for future          |
|            |        |   development.                                 |
+------------+--------+------------------------------------------------+

Sky Cliff Limited

Sky Cliff Limited (SCL) is 75% owned subsidiary of the Company. SCL owns
a 3 rai,1 ngan, 61.9 sq wah (5,447.60 sq m), land plot with prime
frontage on Ratchadapisek Road. The site is near the CBD and close to
the Rama 9 subway station and expressways with convenient connections to
the new airport. Given its convenient location and a rising property
market, SCL was reviewing plans to develop a 28 story office and service
apartment / condominium complex on the site in 2007.

The years since 2003 were dedicated to advancing the Le Metro project,
structural and engineering plans have been finalized, all piling work
has been completed, and the environmental impact study has been
completed and approved by appropriate Government authorities in
accordance with building permit requirements. However, the price of
construction materials dramatically escalated then following the sharp
increase in the price of crude oil.

As the building was then slated to be a luxury class development at high
quality specifications, the increase in construction material prices
dramatically impacted our ability to move forward with the project
profitably. Therefore, Management decided to put the Project on hold
pending stabilization of oil prices and construction materials costs at
more reasonable rates.

Project location is now more enhanced with the construction of the
Markasan high speed railway central station to the new airport, proposed
development by the SET and development of the Central Departmental
Store. 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, Huay
Kwang, 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 23 April 2010, but can
be extended. The extension request had been submitted Bangkok
Metropolitan Administration

Phuket Property Holding

Development Plans and Proposal

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 and
prospects for future development.