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 will 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.

The gold mining operation is in the process of improving production with
a second Ball Mill, additional crusher installations, and obtaining an
operating permit to open target T-1-8. Also, during the last quarter,
further progress was made in enlisting joint venture prospects to
develop the Sky Cliff property on Ratchadapisek Road.

MINING ACTIVITIES

Year 2007 proved to be a challenging year for gold mining operations.
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.

Year 2007 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 as bidding on projects
is expected in the first quarter of 2008 for which 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

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 FY07 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 1.2 billion.

In Summary

Although not a financially rewarding year, year 2007 did allow the
Company to accomplish a number of key objectives that we believe will
help the Company to improve its operating results in 2008 and beyond. We
have confidence in our strategies, our employees, and feel that we are
poised for economic recovery given the optimistic outlook for gold, tin,
and the property market sectors, which promises to be a major
contributor to the Company’s revenues in the future.