Ref. PDI/BK-BS-060/2006 1 August, 2006 To : President The Stock Exchange of Thailand Re.: Clarifications on company's performances in the second quarter and first-half of 2006 Attached are a copy each of Thai and English version of the unaudited interim financial statements (both consolidated and on the company only) of Padaeng Industry Public Company Limited for the second quarter and six-month period ended 30 June 2006 together with clarifications on the company's performances during the said periods for the SET's information as follows: From the company's consolidated statement of income for the second quarter of 2006, there was a net profit of Bt555m or a net profit per share of Bt2.46 compared to net profit of Bt198m or a net profit per share of Bt0.88 in the same period of year 2005, a 179.9% increase. Total sales from revenues and services was Bt2,670m which increased by Bt1,026m or a 62.4% increase from the same quarter of last year. From the company's consolidated statement of income for the first six months of 2006, There was a net profit of Bt1,011m or a net profit per share of Bt4.47 compared to net profit of Bt333m or a net profit per share of Bt1.47 in the same period of year 2005, a 203.6% increase. Total sales from revenues and services was Bt4,803m which increased from the same period of last year by Bt1,691m or a 54.3% increase. Due to lack of concentrates and lower production at the mine, the company's total sales volume for the first half of the year decreased by 4.6% to 50,605 metric tons as compared to the same period of 2005 but the impact was limited mainly to the export market. The extent of the company's improved performance is largely due to the rise of the LME zinc price, which has increased since last year from an average of USD1,295 per ton in the first half of 2005 to average of USD2,767 per ton in the first half of 2006, a growth of 113.7%. Please be informed accordingly. Yours truly, - Signature - (Bernard Tonnon) Managing Director Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 Fax. 0 2661 9946