United Paragon Mining Corporation

December 9, 1999 PSE CIRCULAR FOR BROKERS NO. 3137-99 SUBJECT : United Paragon Mining Corporation United Paragon Mining Corporation ("UPM") advised the Exchange that the Securities and Exchange Commission (SEC) has approved the application for the decrease of authorized capital stock and the amendments to the Articles of Incorporation of UPM providing for the following: LexLib a) the decrease of UPM'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; cdll b) the reclassification of 2,200,000 unissued Preferred "B" shares to common shares; c) the change of the par value of Preferred "A" shares from P0.01 to P1.00 per share, and cdlex d) the amendment of Article Seventh of the Amended Articles of Incorporation to reflect the aforementioned changes. cdlex The present subscribed and paid-up capital stock of UPM, as reflected in its SEC approved Certificate of Decrease of Capital Stock, totaling P1,184,910,574 will be decreased by 50% or by P920,955,287.00, such that after the decrease, the outstanding capital stock would be P920,955,287.00. Said decrease in the outstanding capital stock of UPM as approved by the SEC has the effect of automatically reducing the number of shares held by the stockholders by 50% retaining, however, the par value of P1.00 per share. This means for example, that every two (2) shares held by a stockholder shall henceforth be considered as one (1) share of the capital stock of UPM at the same par value of P1.00 per share. In view thereof, please be informed that the Exchange has issued a trading halt on UPM securities effective December 8, 1999 pending clarification of the following matters: llcd 1) Effective date of the reduction in the authorized capital stock and number of listed common shares; LexLib 2) Disposition of old stock certificates and issuance of new ones; and prcd 3) Reconciliation of the UPM's number of issued/outstanding shares with the Exchange. For your information. (SGD.) MARIA ISABEL T. GARCIA OIC, Listings and Disclosure Group