[Translation] Ref. PDI.B.02.138/1998 16 November, 1998 To : President The Stock Exchange of Thailand Re. : Clarifications on company's performance in the third quarter and the three quarters 1998 Attached please find a copy each of Thai and English version of the unaudited equity method and consolidated interim financial statements of Padaeng Industry Public Company Limited for the quarter and for the three quarters ended 30 September, 1998 for the SET's information. From the statement of profit and loss, the company has incurred net loss of Bt472.18m in the third quarter of 1998 against the net loss of Bt1,083.28m in the same period of 1997. The loss was due mainly to a provision of loans and accrued account receivable of Padaeng Poongsan Metals Co., Ltd. amounting to Bt526.44m. However, the net loss profit in the first 9 months of 1998 was merely 6.88 due to continuing improved operations in the main zinc business since the beginning of the year. From the consolidated financial statement, the company has Bt77.87m net profit in the third quarter of 1998. And for the first nine months of 1998, the net profit amounts to Bt543.17m, an increase of Bt269.98m or 98.82% from the same period of 1997. This was attributed partly to increase in the total expenses rose by 26.90%. Yours truly, - Signature - (Brett T. Lambert) President & CEO