PSE Circular for Brokers No. 2550-98

November 9, 1998 PSE CIRCULAR FOR BROKERS NO. 2550-98 4 November 1998 Securities and Exchange Commission SEC Building, E. de los Santos Avenue Greenhills, San Juan, Metro Manila Attention: Ms . Linda A . Daoang Director, MMOD Gentlemen : In compliance with SEC rules and regulations on disclosure, our Company hereby informs the SEC that last October 1998, Benguet Corporation (BC) temporarily suspended its Masinloc Chromite Operation (MCO) in Coto, Masinloc, Zambales. Due to economic reasons beyond its control, such as: the limited market for chromite products, increasing cost of production, sluggish sales and an inventory of processed ore equivalent to more than one year of production, the Company was forced to suspend MCO's mining operation to prevent its further losses. But in the interim, our Company will still continue to market its inventory of processed ore and evaluate the business potential of other mineral assets of the project. We hope that this constitutes compliance with the disclosures requirements of the SEC. Thank you for your kind attention Very truly yours, BENGUET CORPORATION By: (SGD.) JOSEFA K. CAUTON Corporate Secretary