Securities and Exchange Commission Sec Form 11-C Current Report Under Section 11 of the Revised Securities Act (RSA) And Rsa Rule 11(a)-1(b)(3) Thereunder

August 26, 1999 PSE CIRCULAR FOR BROKERS NO. 2126-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. Date of Report (Date of earliest event reported) August 18, 1999 2. SEC Identification Number THE SEC Registration No. of the Registrant is 10044 3. BIR Tax Identification No. The BIR Tax Identification No. of the Registrant is 043 000 283 731 4. Exact name of registrant as specified in its charter PHILEX MINING CORPORATION 5. Province, country or other jurisdiction of incorporation Manila, Philippines 6. Industry Classification Code (SEC Use Only) 7. Address of principal office Philex Bldg., Brixton and Fairlane Sts., Pasig City 8. Registrant's telephone number, including area code (632) 6319496 9. Former name or former address, if change since last report The Registrant has not changed its address since its last report to this Honorable Commission 10. Securities registered pursuant to Sections 4 and 8 of the RSA Number Shares Title of No. of Shares Registrant Each Class Outstanding 5,000,000,000 Common A 1,795,779,839 Common B 1,162,010,421 11. Indicate the item numbers reported herein: Item No. 5. Legal Proceedings On 10 August 1999, the Supreme Court, in G.R. No. 125132 (entitled " Philex Mining Corporation v . NLRC, Rosella Austria, Lina Tamondong, Cornelio Borja and Gerald de la Cruz ") rendered a decision requiring the Company to reinstate therein respondents Rosella Austria, Lina Tamondong, Cornelio Borja and Gerald de la Cruz as regular employees and to pay them benefits due to workers enjoying regular employment status. The case before the Supreme Court is a petition for certiorari filed by the Company to set aside the decision of the National Labor Relations Commission (NLRC) holding that respondents should be considered regular employees. The NLRC had in turn overturned a decision by the Labor Arbiter, holding that the termination of respondents' services was a result of the expiration of their employment contracts and was thus lawful. In 1987 respondents requested the Company for an opportunity to train in its metallurgical department. The Company acceded to their request, without making any promise that they would be employed after their training. After training for 6 months, the respondents were informed that the Company had no opening for them in the regular work force. However, the Company had a special large-scale exploration project, and the Company was willing to retain them as contractual employees for this project. The four claimed that they should be regularized. The Company learned of the Supreme Court decision on 18 August 1999. In a letter dated 19 August 1999 (received by the Company on 23 August 1999), the SEC required the Company to disclose this matter "in accordance with SEC Form 11-C." The Company has requested its counsel, ACCRA Law Offices, to file a Motion for Reconsideration. PHILEX MINING CORPORATION By: (SGD.) BARBARA ANNE C. MIGALLOS Corporate Secretary