STATEMENT OF QUALITY POLICY AND AUTHORITY

Responsible party: President/COO

1.1 STATEMENT OF QUALITY POLICY

It is the objective of Stainless Foundry & Engineering Inc. to provide on-time delivery of castings, machined components, and services at a competitive price which conform to or exceed our customer’s requirements the first time, everytime.

To achieve the above statement of Quality Policy and other quality objectives, Stainless Foundry & Engineering Inc. is committed to:

A. Providing adequate resources and assigning trained personnel for management, performance, and verification of work including audit activities.

B. Ensuring that this Quality Policy is communicated and understood at all levels in the organization.

C. Implementing and maintaining a quality improvement process through preventive action, internal audits, and management reviews.

D. Implementing and maintaining the Quality Systems described in this Manual and the supporting Quality Management Procedures.

E. Setting of Quality Policies and Goals.

R.M. King President and Chief Operating Officer (COO) Date May 31, 2002