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					                      NEWALTA
                      is leading the
                      evolution of
                      Canada’s waste
                         management
                       industry.




N   A   L   Q   3         0        1




                Third quarterly report to shareholders
Competitive strength Newalta Corporation maximizes the inherent value in oil, gas and industrial
wastes through recovery of saleable products and recycling, rather than disposal. Through 32 integrated
facilities in western Canada, Newalta delivers world-class solutions to a broad customer base of national
and international corporations, including producers of crude oil and natural gas, and automotive and
industrial businesses. With a strong track record of profitable growth and environmental stewardship,
Newalta is focused on leveraging its proven competencies in new service sectors and geographic
markets from coast to coast.


HIGHLIGHTS OF Q3



         Earnings and earnings per share increased                    Operating costs as a percent of revenue were
         150% and 146% respectively.                                  reduced 5.5% to 63.3%.
         Revenue of $26.6 million, up 29% from the prior year.        Capital expenditures of $42 million lay the
                                                                      foundation for 2002 growth.
                                                                              EARNINGS
                                                                               increased
                                                                              150 percent for
                                                                                the quarter.

                   Summary
                   For the three months ended September 30, 2001, revenue increased 29%, reflecting increasing demand and
                   strong performance across all business segments.
                   Operating income increased 110% from the same period last year while earnings increased 150% to $3.9 million,
                   or 11.8 cents per share. These increases reflect robust market conditions and relatively strong commodity prices
                                                                      during the quarter, as well as the success of pricing adjustments
Q         3       R       E         V     I     E       W             in the second quarter and improved operating efficiency.
                                                                      Capital expenditures during the quarter totalled $28.1 million,
                   reflecting investments in several facility expansions currently underway at Airdrie, Calgary, Elk Point, Nanaimo,
                   Zama and Drayton Valley.
                   Year-to-date revenue increased 22% from the same period last year while operating income increased 38%.
                   Excluding costs associated with the successful defeat of Canadian Crude Separators Inc.’s (“CCS”) unsolicited
                   hostile takeover bid, operating income was up approximately 61% over the same period last year.
                   During the quarter, management concluded the $20 million acquisition of Anadime Corporation (“Anadime”),
                   an oilfield services company offering waste processing and treatment solutions to the oil and gas industry in
                   western Canada. As expected, the acquisition was immediately accretive to earnings, exceeding management’s
                   early estimates, and has allowed Newalta to realize substantial operating synergies in staffing and facilities.
                   Anadime has been completely integrated into Newalta’s network and is expected to make a significant
                   contribution to bottom-line growth in the fourth quarter.
                   Anadime is the second of two acquisitions made by Newalta in 2001. In June, the Company acquired
                   Aqua-Pure Venture Inc.’s Calgary industrial water recovery facility to enhance Newalta’s multiple waste stream
                   processing capabilities in both the oilfield and industrial services areas.

Financial Highlights

                                                         Three Months Ended September 30                 Nine Months Ended September 30
                                                                               % Increase                                     % Increase
($000s)                                                  2001          2000     (Decrease)              2001          2000     (Decrease)

Revenue                                               26,578        20,671            29              68,785       56,537               22
Operating income                                       5,979         2,843           110              10,505        7,624               38
Earnings                                               3,882         1,554           150               8,236        4,128              100
      Earnings per share (cents)                        11.8            4.8          146                25.1         12.6               99
      Diluted EPS (cents)                               11.8            4.7          151                25.1         12.6               99
EBITDA                                                 9,113         5,869            55              19,656       16,620               18
Trailing 12 month EBITDA                                   –              –            –              25,146       21,134               19
Cash flow                                              8,161         4,823            69              16,765       13,474               24
Capital expenditures                                  28,100         4,012           600              41,838        5,554              653
Average shares outstanding (000s)                          –              –            –              32,793       32,696                –
Total shares outstanding (000s)                            –              –            –              35,453       32,804                8


                                                                                                                 NEWALTA CORPORATION      1
                     Outlook
                     Management anticipates continued strong performance in the fourth quarter, and expects to deliver record
                     financial performance for fiscal 2001, in line with previous guidance published on May 15, 2001. The contribution
                     from the Anadime operations will offset the lower heavy oil netbacks. The guidance for 2002 did not include
                     additional revenue and earnings expected from Anadime and, therefore, management expects performance
                     in 2002 to meet or exceed the guidance published on May 15, 2001.
                     “Through a combination of continuing organic growth and acquisitions, Newalta has secured its position
                     as a dynamic, long-term growth company. Fiscal 2001 will be a record year, which reflects the quality of the
                     investments we’ve made as well as robust market conditions,” said Al Cadotte, President and Chief Executive
                     Officer. “We are now the largest waste management solutions provider in western Canada. This critical mass,
                     along with the strength of our balance sheet and breadth of expertise, ideally positions Newalta to aggressively
                     pursue a national leadership position in 2002. We are in a strong position to accelerate our strategy and we have
                     begun to review opportunities in eastern Canada.”
                     Mr. Cadotte concluded,“We intend to set the agenda for the evolution of Canada’s waste management industry
                     and capitalize on our competitive strengths to generate superior returns for our shareholders.”


                     Management’s discussion and                       The following discussion and analysis should be read in conjunction with the
                                                                       financial statements and notes thereto for the three and nine month periods
A      N        A         L     Y       S       I      S               ended September 30, 2001, and with the MD&A in the fiscal 2000 annual report,
                                                                       including the section on risks and uncertainties.

                     Results of Operations – Three Months Ended September 30, 2001
                     The third quarter saw high activity levels at most of the Company’s 32 facilities. These activity levels, combined
                     with an average 7% price increase, resulted in record revenue, operating income, EBITDA and earnings. Despite
                     lower crude oil prices, revenue for the quarter improved 29% to $26.6 million. The acquisition of Anadime on
                     August 20, 2001 contributed approximately $1.7 million of revenue in the quarter.
                     In July, the Company reduced its total workforce by approximately 10%, or 43 employees. As a result, operating
                     costs as a percent of revenue decreased to 63.3% from 68.8% in 2000. G&A, interest and depreciation expenses
                     were 14.2% of revenue compared with 17.4%. Operating income improved to 22.5% of revenue compared to
                     13.8%. EBITDA improved 55% to $9.1 million from $5.9 million. Diluted EPS for the quarter improved 151% to
                     11.8 cents per share from 4.7 cents in 2000.

                     Conventional and Heavy Oilfield
                     Segment revenue improved 34% and net margins improved 67% despite lower crude oil prices and high heavy
                     oil differentials. This segment accounted for 66% of total revenue and 64% of total assets. In the third quarter,
                     Heavy Oilfield recovered 52,150 barrels (net $26.67 Cdn.) compared with 14,883 barrels (net $31.12 Cdn.) in 2000.
                     Conventional Oilfield recovered 36,473 barrels (net $35.61 Cdn.) compared with 22,289 barrels (net $44.10 Cdn.).
                     On August 20, 2001, the Company acquired six oilfield facilities with Anadime. The contribution from these
                     facilities, which were fully integrated into the Newalta network by September 1, 2001, offset the revenue and
                     margin decline attributable to reduced heavy oil netbacks.
                     Strong activity levels, price increases and reduced operating and overhead costs improved net margins to
                     44% of revenue from 35% in 2000.



2   NEWALTA CORPORATION
Industrial and Oil Recycling
This segment collects waste lube oil, automotive and industrial waste in western Canada and represents 33%
of total assets and 34% of total revenue. Higher prices for recycled products continued in the quarter. Product
sales accounted for 50% of segmented revenue compared with 43% in 2000. During the quarter, 11 million litres
of waste lube oil were collected compared with 11.5 million litres in 2000.
Higher product prices combined with lower operating and overhead costs improved net margins to 15.2%
of revenue, up from 6.6% in 2000.

Results of Operations – Nine Months Ended September 30, 2001
For the nine months, revenue improved 22% to $68.8 million. This increase is due to strong demand for the
Company’s services, price increases, and higher product prices, and is net of lower crude oil prices. The underlying
profitability was enhanced by the 10% staff reduction in the third quarter, which reduced operating costs to
66.7% of revenue from 68.2%. G&A, interest and depreciation increased to $10.7 million or 15.5% of revenue from
$10.4 million or 18.3% of revenue. As a result, operating income, excluding the takeover bid costs, increased to
$12.3 million or 17.8% of revenue, compared to $7.6 million, or 13.5% of revenue. EBITDA, excluding the takeover
bid costs, increased 29% to $21.4 million from $16.6 million in 2000.
Results for the nine months include $1.7 million (3.6 cents/share) in costs to defeat the CCS hostile takeover
bid, as well as the $1.9 million (5.8 cents/share) reduction in future income taxes. Current income taxes reflect
the large corporation and provincial capital taxes. The effective tax rate is approximately 33%, with no cash taxes
payable in 2001. Diluted EPS improved 99% to 25.1 cents from 12.6 cents in 2000.

Conventional and Heavy Oilfield
Segment revenue improved 25% to $46 million. Conventional Oilfield revenue increased 28% to $31.6 million
from $24.6 million. Heavy Oilfield revenue, which was negatively affected by high differentials, improved 17% to
$14.3 million from $12.3 million. Conventional Oilfield recovered 97,868 barrels of crude oil (net $38.06 Cdn.) versus
77,611 barrels (net $39.08 Cdn). Heavy Oilfield recovered 124,050 barrels (net $23.45 Cdn.) versus 51,314 barrels
(net $33.63 Cdn.). The profitability of this segment is affected by the price realized for the crude oil recovered
from waste. A price change of $1 US/barrel WTI is approximately equal to one cent in earnings per share.

Oil Recycling and Industrial
Segment revenue improved 16% to $22.8 million. Oil Recycling revenue improved 22% to $9.3 million from
$7.6 million, reflecting higher product prices. Waste lube oil collection volumes were fairly constant at 32.8 million
litres versus 33.6 million litres in 2000. Oil Recycling product sales accounted for 76% of revenue versus 71% in
2000. Industrial revenue rose 12.5% to $13.6 million. Industrial product sales were 29% of revenue versus 23%.
As a result of general price increases, improved product prices and reduced operating costs, margins as a percent
of revenue improved to 13.4% from 7.3% in the same period last year.




                                                                                              NEWALTA CORPORATION     3
                     Capital Expenditures
                     During the third quarter, capital expenditures were $28.1 million, of which Anadime accounted for approximately
                     $20 million. The remaining $8.1 million related to facility expansions and upgrades at Airdrie, Elk Point, Nanaimo,
                     Zama, Drayton Valley and Calgary. Total capital expenditures for the nine months were $41.8 million. Capital
                     expenditures for fiscal 2001 are anticipated to be approximately $47 million.

                     Liquidity and Financial Resources
                     The Company renegotiated its credit facility on October 11, 2001. The new credit facility consists of a $60 million
                     term facility repayable over 48 months commencing January 5, 2002. Monthly principal payments will be
                     $1.25 million. On October 12, 2001, the term facility was fully drawn to fund capital expenditures. On September
                     30, 2001, total long-term debt (including current portion) was $58.2 million. The draw down increased long-term
                     debt to $63 million, which includes a convertible debenture for $3 million assumed with Anadime. Working
                     capital was increased to $7.1 million. The Company also increased its operating line to $12 million. Total capital
                     expenditures for 2001 are estimated to be $47 million and will be funded by $11.3 million in long-term debt,
                     $12 million from issuance of common shares and $23.7 million from cash flow. Anticipated cash flow in 2002
                     is sufficient to fund principal repayments and capital expenditures.
                     During the nine month period, $2.56 million was spent repurchasing 915,100 common shares pursuant to the
                     Company’s normal course issuer bid.

                     Accounting Changes
                     Effective the first quarter of 2001, the Company adopted recommendations of the CICA Handbook sections 1751,
                     regarding the presentation and disclosure of interim financial statements, and 3500 regarding the presentation
                     and disclosure of earnings per share. Under section 3500 the treasury stock method is now used instead of the
                     current imputed earnings approach for determining the dilutive effect of options issued.


                     RONALD L. SIFTON > Senior Vice President, Finance and Chief Financial Officer




                     This document may contain forward-looking statements, relating to the Company’s operations or to the environment in which it
                     operates, which are based on Newalta’s operations, estimates, forecasts and projections. These statements are not guarantees of future
                     performance and involve risks and uncertainties that are difficult to predict, or are beyond Newalta’s control. A number of important
                     factors, including commodity prices and volumes as well as others set forth in other public filings, could cause actual outcomes and
                     results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue
                     reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made.
                     Newalta disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information,
                     future events or otherwise.




4   NEWALTA CORPORATION
                                         financial
                                           statements

Consolidated balance sheets


                                        September 30              December 31
($000s)                                        2001                     2000
                                            (unaudited)                 (audited)
ASSETS
Current
     Cash                                          –                       891
     Accounts receivable                      22,659                    15,696
     Inventory                                 5,002                     3,046
     Future income tax                         1,016                     1,179
                                             28,677                    20,812
Capital assets (note 3)                     181,403                   149,824
Goodwill (note 3)                            13,121                    10,402
                                            223,201                   181,038

LIABILITIES
Current
    Bank indebtedness                          7,514                         –
    Accounts payable                          18,816                    11,190
    Current portion of long-term debt          1,158                        60
                                              27,488                    11,250
Long-term debt                                57,003                    51,620
Future income taxes                           24,501                    22,088
Site restoration                               2,326                     1,865
                                            111,318                     86,823

SHAREHOLDERS’ EQUITY
Share capital (note 2)                        69,563                    59,216
Retained earnings                             42,320                    34,999
                                            111,883                     94,215
                                            223,201                   181,038




                                                       NEWALTA CORPORATION    5
                     Consolidated statements of operations and retained earnings


                                                                Three Months Ended September 30   Nine Months Ended September 30

                     ($000s, unaudited)                                2001           2000               2001           2000

                     REVENUE                                        26,578         20,671             68,785         56,537
                     EXPENSES
                          Operating                                 16,831         14,224             45,870         38,550
                          General and administrative                   634            578              1,505          1,367
                          Interest                                     832            941              2,531          2,831
                          Depreciation and amortization              2,302          2,085              6,620          6,165
                          Takeover bid costs (note 4)                    –              –              1,754              –
                                                                    20,599         17,828             58,280         48,913
                     O P E R AT I N G I N C O M E                     5,979          2,843            10,505           7,624
                     Income taxes
                         Current                                        120            105                360            315
                         Future                                       1,977          1,184              1,909          3,181
                     EARNINGS FOR THE PERIOD                         3,882          1,554              8,236          4,128
                     Retained earnings, beginning of period         38,494         29,859             34,999         27,285
                     Repurchase of common shares (note 2)              (56)             –               (915)             –
                     Retained earnings, end of period               42,320         31,413             42,320         31,413
                     Earnings per share (cents)                        11.8             4.8              25.1           12.6
                     Diluted earnings per share (cents)                11.8             4.7              25.1           12.6




6   NEWALTA CORPORATION
Consolidated statements of cash flows


                                                 Three Months Ended September 30   Nine Months Ended September 30

($000s, unaudited)                                      2001           2000               2001           2000

Net inflow (outflow) of cash related
to the following activities:
O P E R AT I O N S
     Cash flow from operations
         Earnings for the period                       3,882          1,554              8,236          4,128
         Items not requiring cash
             Depreciation and amortization             2,302          2,085              6,620          6,165
             Future income taxes                       1,977          1,184              1,909          3,181
     Funds provided from operations before
         changes in non-cash working capital           8,161          4,823            16,765         13,474
     Changes in non-cash working capital                  17          1,103            (1,098)        (1,546)
                                                       8,178          5,926            15,667         11,928

INVESTMENTS
     Site restoration                                      (1)             1                 (2)          (16)
     Acquisition of Anadime, including
           bank indebtedness (note 2 and 3(b))        (3,867)             –             (3,867)             –
     Additions to capital assets                      (6,851)        (4,012)           (17,588)        (5,554)
     Proceeds on sale of capital assets                    –             45                 81             72
                                                     (10,719)        (3,966)           (21,376)        (5,498)

FINANCING
     Issuance of common shares                             –             42                 23            307
     Repurchase of common shares                        (145)             –             (2,562)             –
     Net increase (decrease) in long-term debt           (97)             –               (157)        (3,060)
                                                        (242)            42             (2,696)        (2,753)
Increase (decrease) in cash                           (2,783)         2,002             (8,405)         3,677
Cash (bank indebtedness), beginning of period         (4,731)          (929)               891         (2,604)
Cash (bank indebtedness), end of period               (7,514)         1,073             (7,514)         1,073




                                                                                       NEWALTA CORPORATION       7
                                                                                       financial
                                                                                            notes

Notes to the consolidated financial statements


For the three and nine month periods ended September 30, 2001 ($000’s unaudited)


1 > ACCOUNTING POLICIES

Interim Financial Statements
The accompanying interim consolidated financial statements of Newalta Corporation (the “Company”) have been
prepared in accordance with Canadian generally accepted accounting principles. These interim financials statements
and the notes thereto should be read in conjunction with the Company’s financial statements contained in its
Annual Report for the year ended December 31, 2000. In addition, effective January 1, 2001 the Company retroactively
adopted the new standards for the presentation and disclosure of earnings as recommended by the Canadian
Institute of Chartered Accountants.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end and
the results of operations for the interim periods shown in this report are not necessarily indicative of results to be
expected for the fiscal year. In the opinion of management, the accompanying unaudited interim consolidated
financial statements include all adjustments (of a normal recurring nature) necessary to present fairly the
consolidated result of its operations and cash flows for the periods ended September 30, 2001 and 2000.

Accounting Change
Effective the first quarter of 2001, the Company retroactively adopted recommendations of the CICA Handbook
section 3500 regarding earnings per share. Under the revised standard, the treasury stock method is used instead
of the imputed earnings approach for determining the dilutive effect of options issued. Prior to the adoption of
the new recommendations diluted per share amounts were determined using the imputed earnings method. If the
imputed earnings method were utilized, diluted earnings per common share would have been 11.8 cents per share
in Q3 and 24.8 cents per share in the first nine months (4.6 cents and 12.2 cents in 2000). At September 30, 2001
the basic number of shares outstanding is 32,792,544 (2000 – 32,696,170) and the diluted number of shares is
33,341,544 (2000 – 32,812,402).


2 > SHARE EQUITY

Pursuant to the December 19, 2000 normal course issuer bid, the Company purchased 915,100 common shares
for a total cost of $2,562, of which $1,647 was charged to share capital and the balance to retained earnings.

On June 20, 2001, the Company purchased the Calgary facility of Aqua-Pure Ventures Inc. (“Aqua-Pure”) for $3,500.
The purchase price consisted of 857,143 shares of Newalta Corporation and $500 cash.




8     NEWALTA CORPORATION
On August 20, 2001 the Company acquired all the issued and outstanding shares of Anadime Corporation
(“Anadime”) in exchange for 2,677,894 shares of Newalta Corporation and $2,500 cash. The Company’s shares were
valued at $3.35 based on the average market price of the Company’s common shares over the three week period
before the terms of the acquisition were agreed to and announced.

The non-cash components of the above transactions are not included in additions to capital assets or issuance of
common shares in the consolidated statements of cash flows.


3 > ACQUISITIONS

(a) The following table summarizes the value of the consideration given, and the values of the assets and liabilities
    acquired in the purchase of the assets of Aqua-Pure:

Shares issued                                                                                             $   3,000
Cash                                                                                                            500
Total consideration                                                                                       $   3,500
Land, building, and equipment                                                                             $   3,500

(b) On August 20, 2001 the Company acquired all the issued and outstanding shares of Anadime in exchange
    for 2,677,894 of the Company’s shares, $2,500 in acquisition and related costs, and the assumption of liabilities
    and net working capital deficiency. Anadime is engaged in the recovery and recycling of oilfield waste
    materials, and its six facilities are very similar to the Company’s existing oilfield facilities. The following table
    summarizes the value of the consideration given, and the values of the assets and liabilities acquired in the
    acquisition of Anadime:

Shares issued                                                                                             $   8,971
Cash                                                                                                          2,500
Total consideration                                                                                       $ 11,471

Working capital deficiency                                                                                $ (2,177)
Long term debt                                                                                              (3,453)
Convertible debenture                                                                                       (3,000)
Fixed Assets                                                                                                16,900
Goodwill                                                                                                     3,201
Total                                                                                                     $ 11,471

The above valuations include some accruals and are management’s best estimate at the present. Some values may
change as actual costs are incurred.




                                                                                                 NEWALTA CORPORATION        9
4 > TA K E - O V E R B I D

On May 2, 2001 Canadian Crude Separators Inc. (“CCS”) made an unsolicited offer for the common shares and
warrants of the Company. CCS terminated the offer on July 6, 2001. The costs of defending against the take-over
bid were expensed during the second quarter.


5 > SUBSEQUENT EVENTS

During October the Company renegotiated its credit facility. The revised credit facility is composed of two segments:

a) $60,000: Revolving reducing term bearing interest at prime plus .75% or RBPAF plus 1.25% at the Company’s
   option. Principal repayments of $1,250 per month begin in January, 2002.

b) $12,000: Demand revolving, bearing interest at prime plus .50% of RBPAF plus 1.00% at the Company’s option.

The credit facility is secured principally by a general security agreement over the Company’s assets.


6 > SEGMENTED EARNINGS

The Company has two reportable segments. The Conventional and Heavy Oilfield segment recovers and resells
crude oil from oilfield waste. The Industrial and Oil Recycling segment collects waste lubricating oil, automotive,
and industrial wastes in western Canada, which are processed into resaleable products.




10   NEWALTA CORPORATION
Segmented information


For the Three Months Ended
September 30, 2001 and 2000                         Conventional and          Industrial and                             Corporate and              Consolidated
($000s, unaudited)                                     Heavy Oilfield          Oil Recycling       Inter-Segment           Unallocated                      Total

2001
External revenue                                               17,575                 9,003                                                                 26,578
Inter-segment revenue                                              95                    61                  (156)
Operating expense                                               7,446                 6,425                  (156)                                          13,715
Indirect operating expense                                        961                   546                                      1,609                       3,116
Depreciation and amortization                                   1,487                   724                                         91                       2,302
Net margin                                                      7,776                 1,369                                      (1,700)                     7,445
General and administrative                                                                                                          634                        634
Interest expense                                                                                                                    832                        832
Operating income                                                7,776                 1,369                                      (3,166)                     5,979
Capital expenditures                                           23,252                 2,383                                       2,465                     28,100
Total assets                                                 142,678                73,489                                       7,034                  223,201

2000
External revenue                                               13,158                 7,513                                                                 20,671
Inter-segment revenue                                              10                   194                  (204)
Operating expense                                               5,777                 5,802                  (204)                                          11,375
Indirect operating expense                                      1,456                   701                                        692                       2,849
Depreciation and amortization                                   1,273                   707                                        105                       2,085
Net margin                                                      4,662                   497                                        (797)                     4,362
General and administrative                                                                                                          578                        578
Interest expense                                                                                                                    941                        941
Operating income                                                4,662                   497                                      (2,316)                     2,843
Capital expenditures                                            2,798                   763                                         451                      4,012
Total assets                                                 107,442                64,394                                       3,573                  175,409

Note: Inter-segment revenue is recorded at market, less the costs of serving external customers. Management does not allocate general and administrative,
taxes, and interest costs in the segment analysis.




                                                                                                                                       NEWALTA CORPORATION      11
Segmented information


For the Nine Months Ended
September 30, 2001 and 2000                         Conventional and          Industrial and                             Corporate and              Consolidated
($000s, unaudited)                                     Heavy Oilfield          Oil Recycling       Inter-Segment           Unallocated                      Total

2001
External revenue                                               45,951               22,834                                                                  68,785
Inter-segment revenue                                             237                  138                   (375)
Operating expense                                              21,469               16,156                   (375)                                          37,250
Indirect operating expense                                      3,178                1,555                                       3,887                       8,620
Depreciation                                                    4,094                2,196                                         330                       6,620
Net margin                                                     17,447                 3,065                                     (4,217)                     16,295
General and administrative                                                                                                       1,505                       1,505
Interest expense                                                                                                                 2,531                       2,531
Takeover bid costs                                                                                                               1,754                       1,754
Operating income                                               17,447                 3,065                                    (10,007)                     10,505
Capital expenditures                                           30,478                 8,198                                      3,162                      41,838
Total assets                                                 142,678                73,489                                       7,034                  223,201

2000
External revenue                                               36,858               19,679                                                                  56,537
Inter-segment revenue                                              68                  335                   (403)
Operating expense                                              16,414               14,520                   (403)                                          30,531
Indirect operating expense                                      4,112                1,945                                       1,962                       8,019
Depreciation and amortization                                   3,747                2,104                                         314                       6,165
Net margin                                                     12,653                 1,445                                      (2,276)                    11,822
General and administrative                                                                                                        1,367                      1,367
Interest expense                                                                                                                  2,831                      2,831
Operating income                                               12,653                 1,445                                      (6,474)                     7,624
Capital expenditures                                            3,771                 1,085                                         698                      5,554
Total assets                                                 107,442                64,394                                       3,573                  175,409

Note: Inter-segment revenue is recorded at market, less the costs of serving external customers. Management does not allocate general and administrative,
taxes, and interest costs in the segment analysis.




12     NEWALTA CORPORATION
                                                                                                               corporate
                                                                                                                 infor mation

Directors                                 Officers                                Head Office
Clayton H. Riddell              (2) (3)
                                          Alan P. Cadotte                         Suite 1200, 333 Eleventh Avenue SW
Chairman of the Board                     President and Chief Executive Officer   Calgary, Alberta T2R 1L9
President                                                                         Tel: (403) 266-6556
Paramount Resources Ltd.
                                          Ronald L. Sifton                        Fax: (403) 262-7348
                                          Senior Vice President, Finance and      Website: www.newalta.com
Calgary, Alberta
                                          Chief Financial Officer
Alan P. Cadotte                                                                   Auditors
President and Chief Executive Officer     John W. Knoeck
                                          Vice President, Oilfield                Deloitte & Touche LLP
Newalta Corporation
                                                                                  3000 Scotia Centre
Calgary, Alberta                          Peter A. Dugandzic                      700 Second Street SW
                                          Vice President, Environment and
Ronald L. Sifton                                                                  Calgary, Alberta T2P 0S7
                                          Technology
Senior Vice President, Finance and
Chief Financial Officer                   J. Craig Wilkie                         Bank
Newalta Corporation                       Vice President, Industrial              Royal Bank of Canada
Calgary, Alberta
                                          Alan P. Swanson                         339 Eighth Avenue SW
John W. Knoeck                            Vice President, Business Development    Calgary, Alberta T2P 3N4
Vice President, Oilfield
Newalta Corporation                                                               Legal Counsel
Calgary, Alberta                                                                  Bennett Jones LLP
Felix Pardo     (1)(3)                                                            4500 Bankers Hall East
Chairman                                                                          855 Second Street SW
Dyckerhoff Inc.                                                                   Calgary, Alberta T2P 4K9
Boston, Massachusetts
                               (1)(2)                                             Stock Exchange
Richard H. Pinder
President                                                                         The Toronto Stock Exchange
Ricly Holdings Inc.                                                               Symbol NAL
Calgary, Alberta
                           (1)(3)(4)
                                                                                  Transfer Agent and Registrar
R. Vance Milligan
                                                                                  Valiant Corporate Trust Company
Partner
                                                                                  510, 550 Sixth Avenue SW
Bennett Jones LLP
                                                                                  Calgary, Alberta T2P 0S2
Calgary, Alberta
                         (2)
Jack G. Williams
President
Adeco Exploration Company Ltd.
Calgary, Alberta

(1)
      Audit Committee
(2)
      Compensation Committee
(3)
      Corporate Governance Committee
(4)
      Corporate Secretary
In the dawn of global waste opportunities, one company emerges with
the experience, technology and competency to be a leader.

				
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