[Translation] Ref. PDI/BK-BS-042/2007 11 May 2007 To : President The Stock Exchange of Thailand Re: Clarification on the company's performance in the first quarter of 2007 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 2007 for the SET's information. For the first quarter of 2007, Padaeng Industry Public Company Limited announces a consolidated net profit of Bt314m giving earnings per share of 1.39 Baht. This compares with Bt456m and 2.02 Baht for the same quarter last year. After reaching historically high levels in December, the LME average zinc price decreased by 22% to 3,456 USD/ton in this quarter. Still inflated by the high zinc price, total sales revenues for the period totaled Bt3,424m to compare with Bt2,133m last year's first quarter. Nevertheless, the total margin was capped by lower sales on the local market and by a temporary lower contribution of the mine due to quality issues with the concentrate. Both factors, combined with the fixed volume of forward sales, reduced the potential benefit of the higher zinc price. Thanks to increased exports, total sales reached 25,617 tons, a similar level to the same quarter last year. However, local demand was 12% lower thereby confirming the domestic market slowdown. The average sale price was also impacted negatively by higher export volumes (which generate somewhat lower premiums) and reduced import duties in Thailand which created price pressure on the domestic market. Please be informed accordingly. Yours truly - Signature - (Bernard Tonnon) Managing Director Board Secretary Division Tel. 0 2661 9900 Ext. 1402 Fax. 0 2661 9946