[Translation] Ref. PDI/BK-02-037/2004 13 May 2004 To : President The Stock Exchange of Thailand Re: Clarification on the company's performance in the first quarter of 2004 Attached please find a copy each of Thai and English version of the reviewed company only interim financial statements and consolidated interim financial statements of Padaeng Industry Public Company limited for the quarter ended 31 March 2004 for the SET's information. For the first quarter of 2004, total zinc metal sold was 26,436 tons, a 4.1% decrease from 27,565 tons of the same quarter last year. This is due to a slowdown in production during the annual plant shutdown. Even as sales volume decreased, sales value rose owing to a rebound in world zinc price to 1,070 USD or a 36.1% increase from the same quarter last year and the increased utilization of zinc silicate ore in the production process. Nevertheless, the company still suffers from high electricity costs, fuel and freight costs, which have increased steadily since the previous year as well as an appreciation of Thai Baht over the US dollar. Bearing these factors in mind, the company reported the first quarter result as follows: From the company's statement of income on Equity Method, the company's total revenues from sales and services was Bt1,247.1m which increased from the same quarter of year 2003 by Bt111.6m or 9.8% increase. There was net gain of Bt85.2m or a net gain per share of Bt0.38 compared to a net gain per share of Bt0.15 in the same period of year 2003. From the company's consolidated statement of income, total revenues from sales and services was Bt1,249.0m which increased by Bt110.8m or a 9.7% increase from the same quarter of last year. There was net gain of Bt84.4m or a net gain per share of Bt0.37 compared to a net gain per share of Bt0.14 in the same quarter of year 2003. Please be informed accordingly. Yours truly - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 Fax. 0 2661 9946 Page 1 of 1