PSE Circular for Brokers No. 2042-98

September 3, 1998 PSE CIRCULAR FOR BROKERS NO. 2042-98 September 2, 1998 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 at the regular meeting of the Board of Directors of United Paragon Mining Corporation ("the Corporation") held this morning, the Board authorized the temporary placement of the Main Shaft in a caretaking mode until appropriate financing for its further development has been put in place. cdll As a result of the foregoing, the Board of Directors has also authorized a review of the manpower requirements of the Corporation in the minesite to achieve greater efficiency. At today's meeting of the Board of Directors of the Corporation, the President, Mr. Alfredo C. Ramos was authorized to accept for and in behalf of the Corporation the proposal of Penta Capital Finance Corporation to provide a US dollar discounting line facility to the Corporation in the US dollar equivalent of P50 Million secured by the Corporation's future gold proceeds. Thank you. Very truly yours, (SGD.) JOCELYN I. SANCHEZ-SALAZAR Assistant Corporate Secretary