[Translation] Ref. PDI.B.02.87/99 1 November 1999 To : President The Stock Exchange of Thailand Re : Report (No. 6) on readiness to face problems in the year 2000 We refer to (i) Notification of Office of the Securities and Exchange Commission, ref. Sor. Jor. 34/B.E.2541 of 10 July 1998 with respect to the issuer of securities readiness to face problems in the year 2000 and (ii) Notification of the Stock Exchange of Thailand, No. 1/1998 of 7 August 1998 as regards the same matter. Attached please find a report on the readiness to face problems in the year 2000 (No. 6) of Padaeng Industry Public Company Limited for the SETs information. As the expenses to solve the said problem was about Bt1.05m, being less than Bt10m (or not exceeding 5% of the shareholders equity) coupled with all work plan and steps have been totally completed, and the external auditor has already carried out the last checking of Y2K, the company deemed it appropriate to terminate the above-mentioned report. And this report will be regarded as the final report. Yours truly, - Signature - (Mrs. Anita Maria Chanrasmi) Senior Vice President - Finance and Corporate Planning Board Secretary Division Tel. 661 9900 Ext. 230, 232 Report on readiness to face problems in the year 2000 (Form 57 Y2K) Company : Padaeng Industry Public Company Limited (PDI) Nature of business : Mining and smelting of zinc concentrates Bangkok Office : 26th and 27th Floor, CTI Tower, 191/18-25 Ratchadaphisek Road, Klongtoey, District Bangkok 10110 Telephone : 661-9900 Telefax : 261-1110 Report on the readiness to face problems for the year 2000, No. 6 (Information as at 30 September, 1999) Preparations to face problems in the year 2000 1. Progress on the latest problem solving 1.1 The company has followed plans and steps as referred in the previous report No. 5. As at 30 September about 90% of total work had completed (at the date of this report 100% completed). - Computer system used for controlling production at Tak plant, has, at the date of this report, been upgraded and is now Y2K compliant. The upgrade work was completed concurrently with the plant shutdown for annual maintenance to avoid impact on production target. - Last solving and checking of Y2K. PDI has subcontracted an external auditor, EDS (Thailand) Limited to review and carry out the audit word over the period July-August 1999. A complete report is under way. 1.2 Expenses remains unchanged as referred in the previous report No. 5. i. e. about Bt1,050,000 (for Foxboro computer system which are used for controlling production at both Rayong and Tak plants and for the external auditor being subcontracted for the last checking). Solving problem at this step is dependent on Foxboro (Thailand) Company Limited since it is the sole distributor in Thailand. The expenses comprise about Bt200,000 for Rayong plant, about Bt600,000 for Tak plant and about Bt250,000 for subcontracting the external auditor. 2. Analysis and explanations of management Although problems in the year 2000 have no significant impact on production and application, the management has much concern and has given full support. Action plans to solve this problem in the . . . / 2 2 course of 2 years have been set up with 6 month reserve time for following them step by step. Although some applications have been delayed but scheduling is according to plan. The responsible team is accelerating modification works. And the management has confidence that the company and affiliated companies will solve the Y2K problems within the timeframe.Indeed, although the problem has significant impact on the company and that the year 2000solving will be expectedly finished on time, the management has assigned each office to prepare a contingency plan when 1 January 2000 arrives. We have checked the particulars and information indicated in this report and certify that all particulars and information are true, accurate and not misleading to any persons and nothing in all material aspects which should have been disclosed has been omitted therefrom which would or might cause any damage to holder(s) or purchaser(s) of the stock. As evidence in this regard, all documents which are duly certified by us are being made in one set. We hereby authorize Mrs.Anita Maria Chanrasmi to be our authorised signatory signing on every page of these documents. Should there be no signature of Mrs.Anita Maria Chanrasmi affixed on any page thereof, it shall not be considered that this information has been certified by us. Authorised director Position Signature - Signature - Mr. Pinit Vongmasa President & CEO Authorised signatory - Signature - Mrs. Anita Maria Chanrasmi Senior Vice President Financial and Corporate Planning