[Translation] Ref. PDI.B.02.07/99 3 February, 1999 To : President The Stock Exchange of Thailand Re. : Notification of the company's zinc ore reserves and 1999 business strategies In response to many current queries and questions of investors and the media recently, Padaeng Industry Public Company Limited therefore organized a press conference on 3 February 1999 to clarify on the company's ore reserves at Mae Sod mine as well as business strategies in 1999, which could be highlighted by the company's President & CEO, Mr. Brett Lambert, as follows : - The company has begun implementation of its strategy to secure a position amongst the ranks of the world's lowest cost zinc producers. In 1999, approx. 220,000 tonnes of silicate ore from Mae Sod mine, an increase by 20%, will be supplied to Tak refinery. As of 31 December 1998, the mine has a combined ore stock and mineable ore reserves for a total of 1.05 million tonnes with an average of 13.13% Zn content at above a 5% cut off, sufficient to feed the zinc refinery for over 4 years. In fact, an additional measured ore resource of 1.38 million tonnes, averaging 11.49% Zn, have been identified by diamond drilling carried out on the company's existing mining concessions. Additionally measured and inferred resources of about 0.47 million tonnes, averaging 15.78%Zn, have been identified in an adjacent area that is now subject to a mining .../2 - 2 - lease application by PDI. Currently, the new mining license application is awaited approval of the Department of Mineral Resources. Upon its being granted, the company's Mae Sod mine, with total ore reserves of 2.9 million tonnes, will be in a position to achieve additional increases in production output to further reduce dependence on imported raw materials. - In September 1998, the company was granted three special prospecting licenses covering an approximate area of 45 square kilometers surrounding Mae Sod mine. The exploration program in search of additional zinc reserves in the new tenements is currently under way. For 1999, the company has set aside Bt30m on exploration in the mine area. - The company has also planned to improve its competitiveness by increase of its productivity at Tak refinery. The yearly cathode production is expected to exceed 100,000 tonnes for the first time. And an increase of 8-10% in the production of saleable zinc in the form of special high grade (99.995% Zn) ingot and higher premium diecasting alloy to about 97,000 tonnes has been targeted. During 1999, the company is expecting to see gradual improvement in domestic zinc consumption. And an estimated 55% of total sales volume will satisfy local demand, against 50% in the previous year. Please be notified accordingly. Yours truly, - Signature - (Brett Lambert) President & CEO