PSE Circular for Brokers No. 1916-99

August 2, 1999 PSE CIRCULAR FOR BROKERS NO. 1916-99 July 30, 1999 PHILIPPINE STOCK EXCHANGE INC . 4/F Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City, Metro Manila Attention: Disclosure Department Listings and Disclosure Group Gentlemen : Please be advised that during the annual stockholders' meeting today, the stockholders of United Paragon Mining Corporation ("the Corporation") approved and ratified the following resolutions of the Board of Directors authorizing: (i) the decrease of the Corporation's outstanding capital stock by fifty percent (50%) in order to reduce company deficit and accordingly, decrease its authorized capital stock from P3,027,000,000.00 to P1,903,500,000.00; (ii) the simultaneous or subsequent increase of its authorized capital stock from P1,903,500,000.00 (as decreased) to an amount not exceeding Four Billion Pesos (P4,000,000,000.00) as may be determined by the Board of Directors; (iii) the reclassification of 2,200,000 unissued Preferred "B" shares to common shares (iv) the change of the par value of preferred "A" shares from P0.01 to P1.00 per share, and (v) the amendment of Article Seventh of the Amended Articles of Incorporation to reflect the aforementioned changes At the same meeting the following were elected directors of the Corporation for the ensuing year. Alfredo C. Ramos Eduardo B. Castillo Carlos G. Dominguez Maxima G. Licauco III Ricardo Miguel Sian Ramos Manuel D. Recto Augusto B. Sunico At the organizational meeting of the Board of Directors held immediately after the annual stockholders' meeting, the following were elected to the offices set forth after their respective names: Alfredo C. Ramos Chairman of the Board and President Constante P. Bumanglag Vice President for Operations Maximo G. Licauco III Treasurer Ruben C. Reyes Assistant Treasurer Roberto V. San Jose Corporate Secretary Delfin P. Angcao Assistant Corporate Secretary Very truly yours, (SGD.) CARLOS E. ASPILLERA Corporate Information Officer