PSE Circular for Brokers No. 1476-98

July 1, 1998 PSE CIRCULAR FOR BROKERS NO. 1476-98 June 29, 1998 Disclosure Department Listings and Disclosure Group 4th Floor, Philippine Stock Exchange PSE Centre, Exchange Road Ortigas Center, Pasig City Gentlemen : We refer to the report that appeared in the 26 June 1998 issue of the Business World entitled "Lepanto obtains 530B for Benguet mining expansion." The report appears to be a mixture of misquotations and rehashed statements, taken out of context, from previous Company disclosures. So as not to further mislead the investing public, allow us to make the following clarifications: Lepanto has executed a mandate letter in favor of Rothschild Australia Limited and Dresdner Australia Limited ("Banks") for a $30 million, not billion , loan the Banks have yet to approve the loan as they are still conducting a technical review of the Victoria Gold Project. The $30 million loan will finance the twin decline and internal shaft for the Victoria Gold Project and other requirements of Lepanto. llcd The Far Southeast Gold orebody is not a new ore discovery, this was discovered in the 1980's yet. The Far Southeast project is still in the pre-development stage; the estimated value of the ore deposit, i.e., $3.6 billion gross revenue from recoverable copper and gold in 20.5. years of operation, is based on a feasibility study completed in 1984 which needs to be reviewed and updated. The commissioning of the carbon-in-pulp plant of the Victoria Gold Project was completed in March 1997, not early this year, copper underground operations ceased early last year. Lepanto is currently concentrating on gold production but continually conducts exploration work in Benguet and other areas to increase its ore reserves. We thank you for this opportunity to clarify this matter. Very truly yours, (SGD.) EDMUNDO T. QUINTO Senior Vice President