Press Release

Padaeng Profits 32.7 million Baht in First Quarter 2003

In its report to the Stock Exchange of Thailand, Padaeng Industry Public Company Limited announces consolidated total revenue from sales and services of 1,138.2 million Baht, an increase of 20.6 million Baht or 1.8 % from the previous year. The company registered a net gain of 32.7 million Baht, equivalent to a net gain of 0.14 Baht per share, compared to a net loss of 0.03 Baht per share in the same quarter last year.

The average Zinc price of $785 per MT during first quarter 2003 was down by 1.25% compared to the previous year. Our local currency expressed versus the US dollar was stronger by 2.15%. Thanks to the good support of the domestic market, the company could nevertheless raise its sales of metal up to 27,565 MT compared to 26,059 MT on the previous year, effectively boosting the proportion of domestic sales from 76% to 88% of total sales. The Company consumed more of lower grade raw material and thereby could rely less on the import of concentrates.

During this quarter the company has not yet been affected by the prices of concentrates, higher in 2003 than in 2002.

Established in Thailand on April 10, 1981, Padaeng Industry Public Company Limited is the sole zinc mining and smelting company in Southeast Asia, with an annual production capacity of approximately 100,000 metric tons.