PSE Circular for Brokers No. 1025-99

May 10, 1999 PSE CIRCULAR FOR BROKERS NO. 1025-99 May 7, 1999 PHILIPPINE STOCK EXCHANGE INC . 4/F Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City, Metro Manila Fax No. 636-0809 Attention: Disclosure Department Listings and Disclosure Group Gentlemen : We refer to Your fax letter dated 07 May regarding the unusual movement in the trading of United Paragon Mining Corporation ("UPM") shares today. The share price of UPM having increased by 47.06% from P0.1700 to P0.2500 per share. Please be advised that we are not aware of any information that could have affected the increase in share price except what has been disclosed to you on May 5, 1999. Moreover, the news article that appeared in the May 7 issue of the Manila Times (copy attached) could have caused such unusual movement. cdll Very truly yours, (SGD.) AUGUSTO B. SUNICO Corporate Secretary African company wants to by UPMC A SOUTH African mining firm is interested in buying into United Paragon Mining Corp. (UPMC) which is operating at reduced capacity when electricity supply at its mine site was cut off for failing to pay its bills. In a disclosure to the Philippine Stock Exchange, UPMC said Durban Roodeport Deep Ltd. (DRD) has begun conducting due diligence on the mining company. "Please be advised that a South African mining company called Durban Roodeport Deep Ltd. has expressed interest in UPMC. Technical information has just been submitted for their due diligence on the company," UPMC said. In an interview with The Times . UPMC financial comptroller Gloria Gerona said the two companies are holding exploratory talks. "The talks are in a very initial stage. Doorban asked for technical information and for state of operations. They are evaluating these information," Gerona said. UPMC, until its financial setback, was one of the country's biggest gold producers. In November 1998, UPMC retrenched around 800 of its employees due to a reduction in production capacity of its Longos mine. Carmina E . Reyes