[Translation] Ref.PDI.B.02.70/1998 23 July, 1998 To: President The Stock Exchange of Thailand Re: Signing of Share Subscription Agreement with a foreign investor Please be notified that on 23 July, 1998 Padaeng Industry Public Company Limited (PDI) has entered into a Share Subscription Agreeement with Western Metals Limited , an Australian investor, regarding the subscription of 81,630,442 newly issued ordinary shares of PDI, equal to 36.12% of PDI's total registered 226 million shares under private placement. The offer price is Bt14 per share (at par value of Bt10 each). The proceeds of the share offered are Bt1,142,826,188. Since the subscription of shares by foreign investor will result in its acquiring more than 25% of the capital of PDI, which is an acquisition of securities for the purpose of taking control of a business and is subject to requirement for making a tender offer for a all remaining shares, Western Metals shall seek a waiver from the Securities and Exchange Commission. A copy of press release on the agreement signing and information on the foreign investor is attached herewith. Yours truly, (Signed) Arsa Sarasin (Mr. Arsa Sarasin) Executive Chairman & CEO PRESS RELEASE For further information Padaeng Industry Public Company Chitchai Thaveepanich July 23 , 1998 Tel. 261-1111 ext. 211 Padaeng joins hands with Western Metal with a 36% share to expand the business opportunity Padaeng Industry Public Co., Ltd. (PDI) has entered into Share Subscription Agreement with Western Metals Ltd. (WML). The agreement involves the placement of 81.6 million new shares in PDI to WML at a price of Baht 14 per share. The placement will raise Baht 1,142 million which will be used to retire a significant portion of existing debt with the remaining debt to be represent 36% of the expanded share capital. This agreement will bring together the individual strengths of PDI and WML to build PDI into a preeminent resources and processing company in the Asean region. WESTERN METALS LIMITED COMPANY PROFILE Establishment Founded in 1994, Western Metals Limited acquired the Cadjebut zinc and lead mine and processing plant in the Kimberley region of Western Australia from BHP Minerals and Shell Australia. Since that time, the company has significantly expanded operations and instigated a variety of workforce and operation changes to ensure continuing success of the Lennard Shelf province over the next 10 to 15 years. Objective The company is pursuing additional, long term growth through exploration, mining, smelting and marketing ventures in South East Asia and elsewhere. Company Western Metals Limited is registered on Australian Stock Exchange with 265 million shares on issue and a market capitalisation of approximately A$ 200 million. Management Chairman : Mr.Alan James Castleman Managing Director & CEO : Mr.Roderick John Webster Products Western Metals Limited produces approximately 260,000 metric tons of high quality zinc concentrate and 60,000 metric tons of lead concentrate annually, mainly exported to Japan, Korea, India and Thailand. Resources The company has a large mineral resource in the area of Lennard Shelf in Western Australia, covering over 2,400 square kilometres which comprises of 3 producing mines: Goongewa, Kapok and Pillara.