Report to SET

Hedging to protect Padaeng’s income against any fluctuation in LME zinc price (revised).

Padaeng has taken advantage of the rally in zinc price at the end of 2004 and has sold forward at approximately 7,500 tons per quarter for a total of 30,000 tons of the 2005 zinc production at an average price of 46,955 Baht per ton (as compared to average price of 42,294 Baht per ton in 2004).

This operation corresponds to the coverage of almost 30% of Padaeng’s annual income to the exposure of the zinc price. As such it will partially protect Padaeng’s income in 2005 against any potential decrease in zinc price (in 2005).

Please be informed accordingly.

Yours truly,

Pinit Vongmasa
Chief Executive Officer

Board Secretary Division
Tel. 0 2661 9900 Ext. 1402, 1501
Fax. 0 2661 9946