Press Release

Padaeng partners up with Pan Australian Resources to prospect for copper project.

Padaeng Industry Public Company Limited signs a participation agreement today [August 21,2000] with Pan Australian Resources N.L. or PNA on behalf of Puthep Company Limited, a wholly-owned subsidiary of Padaeng, to explore and develop a copper deposit in Loei Province, in northeast Thailand. Puthep is licensed by the Department of Mineral Resources to prospect for copper ore in this area.

According to results of a pre-feasibility study, conducted by PNA, the copper ore deposit in Loei could potentially be mined for copper cathode production at a production capacity of 30,000 metric tonnes per year by using a heap leach and solvent extraction-electrowinning technology which is widely used in copper cathode producton.

PNA, however, will pursue its detailed study upon signing the agreement today with approximately 162 million baht to be spent to complete the study by the next three years or within 2003.

Once completed, PNA is entitled to take up a 51 % stake in Puthep in the name of PNA [Puthep] Company.

PNA, a listed company in Australia, is currently exploring for gold ore in the Western states of Australia. The company showed its interest to explore and develop a copper ore deposit in Thailand and negotiated with Padaeng to prospect for copper ore in Loei. PNA and Padaeng signed a memorandum of understanding on July 23,1999 before signing the participation agreement today.