Unaudited 1997 Net Income of Lepanto Consolidated Mining Co.

February 2, 1998 PSE CIRCULAR FOR BROKERS NO. 011-98 SUBJECT : Unaudited 1997 Net Income of Lepanto Consolidated Mining Co . Lepanto Consolidated Mining Co., (the "Company") in a letter dated 30 January 1998, confirmed that the unaudited net income for 1997 of the Company, under the equity method of investment, reached P558.5 million compared to P45.7 million (audited) in 1996. Said net income came almost entirely from the sale of 106,336 oz. of gold in bullion from the Victoria Gold Project which started operating in March 1997. The Company stated in its letter that the cost of gold production for the year averaged $185.3/oz., while selling price averaged $327.13/ oz. It further stated that the gold price dropped by 15.6% from 1996 levels; this was however offset by the 14.9% depreciation of the Philippine Peso from P26.14/$1.00 to P30.04/$1.00. cdasaia For your information and guidance. (SGD.) MARIA ISABEL T. GARCIA Head, Listing & Disclosures Group