PSE Circular for Brokers No. 408-99

March 5, 1999 PSE CIRCULAR FOR BROKERS NO. 408-99 March 4, 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 the Board of Directors of United Paragon Mining Corporation at its regular meeting held today approved, subject to the approval of the stockholders of the Corporation, the increase of the par value of the Class "A" preferred shares of stock of the Corporation from P0.01 to P1.00 per share. The resolution was passed in light of the prior change in the par value of the common shares of the Corporation from P0.01 to P1.00 per share as required by the Philippine Stock Exchange. The Board also approved the closure of the open pit operations to minimize further losses effective March 15, 1999 and as a result thereof, the Corporation will lay off approximately 110 workers more. Notwithstanding the foregoing, the Corporation will continue exploration and development drilling to confirm and increase ore reserves in the Longos and sub-parallel vein systems. Very truly yours, (SGD.) JOCELYN SANCHEZ-SALAZAR Assistant Corporate Secretary