PSE Circular for Brokers No. 1402-99

June 16, 1999 PSE CIRCULAR FOR BROKERS NO. 1402-99 BENGUET REACHES AGREEMENT WITH CREDITOR BANKS ON DEBT REPAYMENT Manila, Philippines, June 15, 1999 Benguet Corporation today announced that it reached an agreement with its creditor banks on June 11, 1999, on the repayment of its outstanding loans. A Term Sheet in the form of a letter-agreement prepared by Union Bank of the Philippines as agent of the creditor banks was signed to this effect by the Company. The Term Sheet, which sets forth the basic terms and conditions of the repayment plan, is subject to ratification by the respective boards and approving authorities of the parties and will be formalized in a Memorandum of Agreement to be signed by all secured and unsecured bank creditors. The Term Sheet extends the maturity of Benguet's loans up to June 30, 2000, with automatic renewal every anniversary date up to the year 2002, upon payment of annual interest, and subject to the Company's compliance with the Memorandum of Agreement. A major provision in the agreement concerns the sale of the Company's non-performing assets to pay off its debts. The other terms of the agreement include providing additional collateral. aisadc The banks' loans to Benguet Corporation are secured by a Mortgage Trust Indenture (MTI) which the banks will maintain as collateral for the loans. The loans, which are the subject of the repayment plan, total P1.363 billion (US$34 million) plus interest. Benguet, established in 1903, is the oldest mining company. In addition to its core business of mining for gold, copper concentrates and chromite, Benguet, through its various divisions and subsidiaries, is engaged in the development of water and land resources, as well as providing engineering and construction, drilling, reforestation, trading and transportation and warehousing services.