Benguet Management Corporation Reaches Accord with Its Creditor Banks on Debt Repayment

June 28, 1999 PSE CIRCULAR FOR BROKERS NO. 1536-99 BENGUET MANAGEMENT CORPORATION REACHES ACCORD WITH ITS CREDITOR BANKS ON DEBT REPAYMENT Manila, Philippines, June 25, 1999 Benguet Corporation today announced that its wholly-owned subsidiary, Benguet Management Corporation (BMC), had reached an agreement with its creditor banks on June 21, 1999, on the repayment of its outstanding loans. A Term Sheet in the form of a letter-agreement prepared by Keppel Monte Bank for itself as creditor and lead bank of BMC, was signed to this effect by the Company. The Term Sheet, which set forth the basic terms and conditions of the repayment plan, is subject to the approval of the respective Board of Directors of all the creditor banks and BMC and will be formalized in a Memorandum of Agreement (MOA) to be signed by all secured and unsecured creditors. The Term Sheet extends the maturity of BMC's loans up to June 30, 2000, renewable for another year upon payment of regular interest and interest on accrued interest, and compliance of the terms and conditions of the MOA. The bank loans to BMC are secured by a Mortgage Trust Indenture (MTI) on the Foundry plant in Alaminos, Laguna and Mango Farm in Zambales. Additional security will be given in the form of assignment of the sale proceeds of the above properties and interest in a Canlubang property. The loans subject of the repayment plan approximately total P247 million plus interest. BMC was founded in 1980 and was organized to manage BenguetCorp's non-mining businesses such as foundry, real estate, timber, Mine production, agribusiness, trucking, warehousing, and trading.