National Policy on the Environment The National Policy on the Environment aims at continued economic, social, and cultural progress of Malaysia and enhancement of the quality of life of its people, through environmentally sound and sustainable development. The nation's growth has unquestionably drawn from nature and its natural resources. As it moves towards attaining developed-nation status, Vision 2020 envisages that the land should remain productive and fertile, rich in natural diversity, the air clear and clean, the water unpolluted. These resources will assume an even more important role as sources of wealth creation, as essential support systems for the uniquely diverse Malaysian culture, as manifestations of natural heritage, and as symbols of national pride. In exercising her sovereign right over her natural resources, Malaysia will develop and utilize them sustainably. Malaysia recognises that indiscriminate resource utilisation, over-consumption, and other unsustainable development practices will erode the bases of success of the nation, and could jeopardise its continued progress. This policy statement sets out the principles and strategies necessary to ensure that the environment remains productive both ecologically and economically. The objectives of the Policy are to achieve: •

A clean, safe, healthy and productive environment for present and future generations.

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Conservation of the country's unique and diverse cultural and natural heritage with effective participation by all sectors of society.

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Sustainable lifestyles and patterns of consumption and production

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Recycling History in Malaysia Recycling - In general, the practice of separating waste materials at source in households is non-existent. In 1992, the amount of solid waste separated for recycling in Malaysia was less than 2 percent, and a 1994 survey showed no further increase or separation at source. Manufacturers recycled because there was a strong demand for materials, a stable market price and to reduce production cost. Currently, the key players in the recycling business are landfill scavengers, collection workers, middlemen and traders as the activities provide income for scavengers, extra income for municipal collectors and new business for traders and costs savings for manufacturers. Municipalities play a minimal and a non-formal role in recycling. A major hindrance to recycling lies in the lack of policy guidelines at the local, state and national levels. Waste recycling has economic and environmental benefits including energy savings, conserve landfill space and natural resources. Scavenging and scrap-dealing are traditional trades carried out by a group of Indian chettiars in the urban areas. They collect scrap metal for export to Japan and retrieve timbers from condemned buildings for local resale. They scavenge for used bottles, tin drums and newspaper for sale to recycling centres. A field survey of 30 municipalities in 1994 revealed that households generated the most solid waste, up to 40 percent, followed by industrial and construction waste and shops and markets. Where there is heavy industry, such as at Shah Alam and Johor Bahru, the percentage of industrial waste was higher than for households. In 1995, Malaysians generated 5.5 million tons of domestic and commercial waste, exclusive of toxic material - this comes to 13,500 tons per day. With a growing population and a rising standard of living, waste is projected to rise to 7 million tons per day and an average of 0.95 kg person per day by the year 2000. Source: Sahabat Alam Malaysia (SAM) or Friends of the Earth Malaysia, the oldest independent national environmental organization in the country. The NGO was set-up in 1977. The organization is also the coordinator of the Asia-Pacific Peoples' Environmental Network (APPEN). In 1988 Sam’s Marudi office was awarded the Right Livelihood Award by the Swedish Parliament.

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BENEFITS OF RECYCLING

A steel mill using scrap iron and steel in place of virgin iron ore to make a new product gives the public outstanding value. The new product is comparable in performance to a similar product made from virgin iron ore and its manufacturing process offers fewer risks to the environment.

The United States Environmental Protection Agency (USEPA) calculates the benefits this way: • Energy savings 75% • Savings in virgin materials use 90% • Reduction in air pollution 86% • Reduction in water use 40% • Reduction in water pollution 76% • Reduction in mining wastes 97% • Reduction in consumer wastes 105%

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Every tonne of new steel made from scrap steel saves: • 1,115 kg of iron ore, 625kg of coal, and 53kg of limestone In a 'greenhouse' gas – constrained future, energy is one of the most important benefits of metal recycling. Savings from recycling other metals include: • Aluminum 95% • Copper 85% • Lead 65% • Zinc 60% Recycling conserves ever-diminishing landfill space and the surface biodiversity destroyed in mining of new raw materials from the ground. It closes the resources loop ensuring valuable resources are not lost, but are put to back into good use. The metals made from these 'secondary resources' then make much less impact in the remanufacturing process the second time around. Recycling is a true example of a 'sustainable' industry - a concept fundamental to our society's drive to reduce its environmental impact on the planet.

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About Us High Cans Corporation Sdn Bhd was formed in 1993 by Mr. Sri Parrenthaaman. High Cans Corporation Sdn Bhd is a leading recycling company with a workforce of about 70 employees and stands at the forefront of the recycling industry in Malaysia with an annual turnover of about RM70 million where its current assets stands at RM 3 million. We handle over 40,000 tonnes of various scraps a year at approximately 50 sites, predominantly in Malaysia, and have liaison offices in several Southeast Asian cities. We also operate and maintain our own fleet of trucks and equipment, along with a chosen few reliable sources to service our customers and consumers. High Cans Corporation is a registered company with the Government Authority and GLC’s such as Ministry of Finance (Reg.35700048398), Tenaga Nasional Berhad (Reg.3006621),Keretapi Tanah Melayu Berhad (Reg.7224),Telekom Malaysia Berhad & Construction Industry Development Board, Gred G5 ( CIDB ). With good logistics, investment and expertise, High Cans Corporation is a main player in the collection and processing of ferrous metals (iron and steel) and nonferrous metals (principally aluminum, copper, nickel-based, titanium and hightemperature alloys) from Multinational Corporations (MNC), Manufactures of Metal related Products, Government Link Companies (GLC), and Recycling Dealers & Yards. We collect industrial scrap and obsolete scrap, process it into reusable forms and supply the recycled materials to our customers who include electric arc furnace mills, integrated steel mills, foundries, secondary smelters and metals brokers. In addition, we are frequently engaged as demolition contractors in several local Malaysia enterprises. We believe and are always committed to be an asset to the companies we service as well as the communities in which we reside.

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Corporate Philosophy Vision High Cans Corporation to continue to develop new and enhanced services Locally & Internationally and to meet the changing needs of its clients & the marketplace. We envisage increasing our current turnover from RM 70 Million to RM 300 Million in 3 years.

Mission The mission of High Cans Corporation is to help redefine the Metal Recycling Industry to meet today's challenges and tomorrow's opportunities by being the industry leader in safety and environmental compliance, by building lasting customer relationships, by fostering professional growth for employees, and by sharing our success with the community. We aim to achieve ISO 9001 registration in the near future.

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Corporate Values Customer Sovereignty Our customers are the reason for our existence. We anticipate their needs and endeavor to meet and surpass their expectations. Passion for Excellence We will strive to attain individual and team excellence through a spirit of continuous learning, lofty standards, new ideals and a commitment to high levels of achievement. Continuous Innovation We aspire to seek and create a 'new way.' We will continuously reengineer our processes and mindsets and encourage individual creativity and improvisation in our business. Transparency & Integrity We will nurture a culture of spontaneity and mutual trust. The cornerstone of all our interactions and relationships would be a high standard of ethics and morals. People Orientation We will accord empathy, respect and dignity to every Employee. We will create an environment where every committed and capable member of the organization is given ample opportunities for growth and rewarded accordingly.

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Quality Commitment The rationale for creating High Cans Corporation was to enhance the quality, integrity and scope of services available to industrial scrap generators and consumers. We share a commitment to performance, customer satisfaction and environmental responsibility; we hope to achieve ISO 9001 and ISO 9002 certification for exceptional process control and product quality in the near future.

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Environment Health & Safety Policies It is our intention and practice to pursue rigorously high standards in order to improve safety and health for its employees and to protect the environment. The company recognizes that its long-term success in the marketplace is dependent on it adopting increasingly efficient environmentally sound business practices. By embracing these measures, High Cans Corporation will succeed in adding value for customers and maintaining a positive and safe working environment for employees. Every employee is encouraged and required to be proactively committed to maintaining safe and healthy working environments; the conservation of natural resources and raw materials; the protection of the local and global environment; and the minimization of any adverse impact of its business on the environment by continuous improvement of EHS performance. Every employee has responsibility for EHS policy and performance.

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Board of Directors Executive Chairman – Ramalingam Vadivelu Mr. Ramalingam is the Advisor and Executive Chairman of High Cans Corporation Sdn Bhd. He has been with the Department of Chemical Engineering, Faculty of Engineering, University of Malaya from 1977 to 1993, where he was involved in the undergraduate laboratory training in the areas of Mass Transfer, Liquid-liquid distillation, Fuel Technology, Separation Technology, Process Control, Gas Chromatography, Heat Transfer, Instrumentation and Filtration. He was also involved in research in Palm Oil Pollution Control and Fermentation Technology. Mr. Ramalingam was instrumental in setting up the first computer laboratory in the department in 1984 and subsequently establishing networking of the same in 1988 and managing the computer laboratory until 1993. Mr.Ramalingam joined a multinational Aluminium Sheet and Foil Rolling Company in 1993 and was involved in the ISO 9002 team. He was personally involved in writing up several procedures and implementation of the same. Parallel to ISO 9002 development he was strategically involved in the computerization of the 30 acres Aluminium Sheet and Foil Rolling plant. He was key liaison person between the Production and Administration and Accounts departments and contributed largely to computerizing most of the manual process employed. He had also contributed immensely to the research undertaken to reduce the process route from casting to the finishing stage. The research was successful and contributed to cost savings. From 1996 to 2001, Mr. Ramalingam was employed as Head, Information Technology Division of a Swedish/Canadian Oil and Gas Company. He was instrumental in establishing a network across three floors, teleconferencing connectivity to overseas head office and satellite connectivity between KL main office and Oil Rig off the coast of Terengganu. Mr. Ramalingam was also responsible for DataBase Operations of the company.

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Managing Director - Sri Parrenthaaman Ayarpadde, ANS Mr. Sri Parrenthaaman is the founder of High Cans Corporation Sdn Bhd, a leading Metal Recycling Company. Mr. Sri has over 20 years of experience in Business Development and Marketing in the Metal Recycling Industry. Prior to establishing Syarikat Logam Sri Paranthaman in 1993, he has been working with numerous Scrap Metal Companies as Sales & Marketing and Business Development Executive for about a decade. With almost two decades of business development & marketing experience in the Metal Recycling Industry, Mr. Sri has proved that hard work & a sound experience can turn dreams into reality; this he has proved by upgrading High Cans Corporation from its modest beginning in 1993 to one with a current turnover of about RM 70 million In July 2004, Mr. Sri was recognized by DYMM Tuanku Ja'afar, the Yang DiPertuan Besar Negeri Sembilan and was conferred the title of Ahli Setia Negeri Sembilan which carries the title of ANS. Mr. Sri is also an active Associate Member of TiE Malaysia Chapter a Global Non Profit Organization, Kuala Lumpur & Selangor Indian Chamber of Commerce & Industry (KLSICC) and Malaysian Indian Metal Traders Association. Mr. Sri is also known for his trademark management style which includes leaving no stone unturned, initiating paradigm shifts, instilling innovative thinking and creative ideas. Director – Harsha Verthine Ms. Harsha is a Director of High Cans Corporation Sdn Bhd. Prior to setting up High Cans Corporation. Ms. Harsha has been instrumental in managing her family owned Metal Recycling company. During her stint in her family owned business, Ms. Harsha has gained over 10 years experience in the Business Management of the Metal Recycling Operations. Her overall experience includes from financial management, operations, administrative and day to day business transactions. Ms. Harsha manages the Financial & Operations of High Cans Corporation, which encompasses logistics, manpower, cash flow, banking transactions, customer queries and forward planning.

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Our Services & Operation •

Ferrous Scrap - The Purchase Process

We are ready to serve you irrespective of the volume or diversity of recyclable material or how challenging the removal process is. We purchase ferrous scrap from several sources: •

Industrial scrap - from manufacturers and service centers that generate steel and iron as a by-product of their production processes as well as furnace iron from steel mills and foundries.

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Obsolete scrap- from auto wreckers, demolition contractors, railroads, busses and others, including anyone's metallic maintenance scrap, and from smaller scrap yards who generate obsolete steel and iron scrap.

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High Cans Corporation also purchases scrap generated from our own auto crushing and demolitions jobs and from smaller scrap dealers, peddlers and others who deliver both industrial and obsolete scrap directly to our recycling premises.

We collect ferrous scrap from the metal-working industry, metal service centers and other sources by providing in-plant accumulation and retrieval bins and/or truck containers at their facilities. When full, the bins and containers are transported to our processing facilities. Prices paid for scrap metals, on a delivered basis, are determined primarily by market demand and the composition, quality, size and weight of the materials. Our substantial investment in processing equipment and an extensive truck fleet ensures the highest level of service. High Cans Corporation, with facilities has the ability to coordinate all scrap activity for large producers of scrap and improve their net scrap revenue. For expert consultation in material handling to safe, clean and advanced technology at our facilities, please consult High Cans Corporation for leadership in recycling and raw material management for the 21st Century.

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•

Ferrous Scrap - The Sale Process

Scrap generators are vital to the entire process of scrap recycling. We prepare the ferrous scrap purchased for sale to customers for remelting into new metallic products. Purchased scrap is processed through a variety of methods including sorting, shredding, shearing or cutting, bailing, briquette or breaking. With suitable equipment and trained employees, our ferrous processing capabilities are considered competent in the industry. We produce a number of different sized and shaped products to customer specifications and market demand. Here is a brief overview of some of the processes we offer to meet the needs of our end users. This will also give you, the scrap generator, an understanding of what happens to the scrap we purchase. Sorting After purchasing ferrous scrap metal, we inspect the material to determine how it should be processed. In some cases, scrap may be sorted and sold without further processing. Most scrap, however, is separated for further processing according to its form, size and composition by using conveyor systems, front-end loaders, crane-mounted electromagnets or claw-like grapples. Shredding Obsolete scrap, such as automobiles, home appliances and other consumer goods, as well as certain light gauge industrial scrap, is typically processed in our shredding operations. These items are fed into massive shredders that quickly break the bulky, mixed quality scrap into small fist-sized pieces, or fragments. The shredding production process then uses magnets and other equipment to separate ferrous fragments from non-ferrous and non-metallic materials. The ferrous and non-ferrous metal product is sold to our customers, who remelt this scrap into new steel or metals, and the non-metallic by-product of the shredding operations, is properly disposed of in qualified third-party landfills. Thus, as much as 99% of the metallic content of all unprocessed scrap shredded is able to be recycled through our processing facilities.

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Shearing or Cutting Pieces of oversized ferrous scrap, such as obsolete steel girders, plate, rail and used drill pipes, which are too large for other processing, are prepared by cutting with hand torches, crane-mounted alligator shears or large stationary guillotine shears. After being reduced to a more manageable size, the scrap is then sold to those customers, steel mills and foundries, who remelt this scrap product into new steel or castings. Baling Light-gauge ferrous metals such as clips and sheet iron, and by-products from industrial manufacturing processes such as stampings, clippings and excess trimmings, are fed into large hydraulic presses that compress the bulky materials, at high pressure, into dense, uniformly sized blocks, called "bales" or "bundles." These large bundles, weighing almost a ton each, are able to be efficiently remelted into new steel or castings by our steel mill and foundry customers. Breaking of Furnace Iron High Cans Corporation processes furnace iron, which includes blast furnace iron, steel pit scrap, steel skulls and beach iron. Large pieces of iron are broken down by impact of eight to ten ton forged steel cutters. The fragments are then sorted and screened according to size and iron content for custom blends sold to steel mills and foundries

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•

Nonferrous Scrap - The Purchase Process

Nonferrous scrap is purchased from several primary sources: •

Industrial scrap - from manufacturers, service centers and other nonferrous scrap sources who generate new metal scrap as a by-product of their production processes, such as scrap aluminum, copper, stainless steel, brass, high temperature alloys and other metals.

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Obsolete scrap- from telecommunications, aerospace, defense, demolition and recycling companies that generate obsolete scrap consisting primarily of copper wire and exotic metal alloys; and smaller scrap dealers and peddlers who deliver their scrap directly to our facilities.

We collect nonferrous scrap from the metal-working industry, metal service centers and other sources by providing in-plant accumulation and retrieval bins and/or truck containers at their facilities. When full, the bins and containers are transported to our processing facilities. Prices paid for scrap metals, on a delivered basis, are determined primarily by market demand and the composition, quality, size and weight of the materials. Once received, the material is sorted, graded, properly prepared and packaged for sale. High Cans Corporation sells its nonferrous scrap products to end-users, such consumers as refineries, smelters, specialty steel makers, foundries, and specialty ingot makers throughout the Malaysia. Prices for some nonferrous scrap metals change daily based on the London Metals Exchange spot and future prices. Copper, brass, aluminum, zinc, die cast, stainless steel, titanium and hightemperature alloys are among the significant nonferrous metals we buy, process and sell.

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•

Nonferrous Scrap - The Sale Process

Scrap generators are vital to the entire process of scrap recycling. We prepare the nonferrous scrap metal we purchase from you for resale to our customers for remelting into new metallic products. Your scrap is processed through a variety of methods including sorting, shredding, shearing or cutting, baling, briquetting or chopping. With suitable equipment and highly trained employees, our nonferrous metal processing capabilities are considered competent in the industry. We produce a number of different sized and shaped products to each customer's specifications and market demand. Here is a brief overview of some of the processes we offer to meet the needs of our consumer customers. This will also give you, the scrap generator, an understanding of what happens to the nonferrous metal scrap we purchase. Sorting After purchasing nonferrous scrap metal, the material is inspected to determine how it should be processed to maximize its value. In some cases, scrap may be sorted and sold without further processing to consumers for remelting. Most metal scrap, however, is separated for further processing according to its form, size and composition. The company's sorting operations separate different types of nonferrous metal scrap, out of mixed loads of material received, by using conveyor systems, magnets, sorting tables and/or eddy current separation systems. In addition, many nonferrous metals are sorted and identified by using grinders, hand torches, and spectrometers. We have the ability to identify metallurgical composition, which is critical to maintaining high quality.

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Baling High Cans Corporation processes light-gauge; bulky nonferrous metals, such as clippings from industrial manufacturing processes, aluminum beverage cans and obsolete scrap, by baling these materials into various sized blocks, called "bales". Front-end loaders and conveyors are used to feed the bulky metal into different types of large hydraulic presses or "balers". One type compresses the bulky materials at high pressure, into dense, uniformly sized bales, able to be efficiently remelted by our customers. Another type of baler compresses bulky material at lower pressure into bigger, less dense, uniformly sized bales, able to be more efficiently stored and transported to consumers who require certain material delivered in this form. Chopping Copper and aluminum scrap wire is processed by using large, high production wire chopping machines which grind the wire into small pellets. Through further quality control processes, the chopped metal is analyzed and packaged by size. During chopping operations, the plastic casing of the wire is separated from the copper or aluminum using a variety of techniques and is discharged separately from the metallic scrap. Some of our facilities even recycle the non-metallic choppings by selling graded material to manufacturers of products using recycled plastics or rubber.

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Shearing Large pieces of scrap not able to be baled need to be cut using crane-mounted alligator shears or stationary alligator-type hydraulic shears. The smaller pieces of scrap metal produced, after analysis for composition, are separated by grade and repackaged to meet customer specifications. Crushing Some industrial aluminum turnings and obsolete scrap, such as automobile radiators, or heavily mixed scrap "breakage" may be best processed in our crushing operations. These items are fed into massive crushers that quickly break the bulky, mixed quality scrap down into very small pieces, or fragments. The separation production process then uses magnets and other equipment to separate the nonferrous fragments from ferrous and non-metallic materials. The metals are then shipped to our customers for remelting.

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Demolition Services High Cans Corporation offers a turn-key approach to demolition projects. We maintain a strong safety commitment and competitive charges. Let High Cans Corporation show you the way for the demolition of: •

Old Refineries

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Metal Plant Dismantlement • Selective Demolition

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We Purchase

Steel Turnings

Tin Scrap

Unprepared P&S

Unprepared HMS/Steel

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Aluminium Cans

Used Batteries

Copper Wire- Type 1

Aluminium

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Aluminium Clips

Brass Clips

Used Radiators

Copper Wire – Type 2 22

Insulated Copper Wire

Copper Sheet

Copper Clips

Cast Aluminium

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Alloy Rims

Brass

Stainless Steel Pieces

Candy Bale

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Other Material Purchases Domestic Scrap • • • • • • • • • • • • • • • • • • • • • • • •

Copper - All Forms and Grades. Aluminum - All Forms and Grades. Brass and Bronze - All Forms and Grades. Stainless Steel - All Forms and Grades. Nickel Alloy solids, turnings and grindings. High Temp Alloys - All Forms and Grades. Circuit Boards and Electronic Scrap Motors - AC, DC, and Fractional hp. Transformers. Large and Small - Cu or Al. Insulated Wire Tool Steel - Taps, Drills, Cutters, Reamers. Carbide - Tooling, Inserts, Circuit Board Drills. Magnetic Resonance Imaging Coils Breakage with Copper and/or Aluminum content. Nonferrous Spills and High Grade Dross Metal Powders - Nonferrous and Ferrous, New, Off-Spec and Floor Sweeps. Furnace Belting and Muffles Precious Metals Plated, Clad Scrap - Silver, Tin. Metallic Fines Metallic Foil Pup Coils and Sheet - Steel, Stainless, Aluminum. Silicon Steel Coils and Sheets. Pipe, Tubing - Stainless, Aluminum or Copper Alloy.

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