Ref. PDI/BK-02-014/2005 16 March 2005 To : President The Stock Exchange of Thailand RE.: Padaeng extends its zinc hedging for 2005. In addition to the already reported 30,000 tons sold forward in January, the company has now sold forward over the remaining of the year another 20,000 tons of the 2005 production at the average price of 54,299 Baht per ton. In the current environment of extreme volatility of the zinc price and very high sensitivity of Padaeng income to the zinc price, it has proved very difficult to manage a zinc business in a long term perspective without any possibility to anticipate the margins. Padaeng gross margin is indeed depending on the zinc price through the sale of unpaid zinc, which is essentially coming from the own mine production as well as from part of the purchased concentrates Therefore, the company has since the fourth quarter of 2004 entered into a policy of protecting part of its result from zinc price fluctuations. Padaeng has now covered about 74% of its total exposure for 2005. While these conservative hedging transactions will obviously prevent the company from taking advantage of any further upside on the tonnage hedged, the company will in any case lock-in an acceptable return for its shareholders and be protected against future drops of the Zinc price and/or a strengthening THB. Please be informed accordingly. Yours truly, - Signature - (Pinit Vongmasa) Chief Executive Officer Board Secretary Division Tel. 0 2661 9900 Ext. 1402, 1501 Fax. 0 2661 9946