Benguet announces 1995 results.

NEW YORK--(BUSINESS WIRE)--March 26, 1996--Benguet Corp. (NYSE:BE) today announced 1995 consolidated net earnings of P40,200,000 (US$ 1,533,000) or P0.35 (US$ 0.013) per share, representing a 50% decrease compared with consolidated net earnings of P81,000,000 (US$ 3,317,000) or P0.71 (US$ 0.029) per share in 1994.

1994's results have been restated to give retroactive effect to the adoption in 1995 of the liability method of accounting for income tax as required by the Philippine Accounting Standards Council Statement No. 23. Prior to this accounting change, 1994's net earnings were P33,800,000 (US$ 1,385,000) or P0.30 (US$ 0.012) per share.

The consolidated earnings for 1995 included the P191,300,000 (US$ 7,297,000) or P1.68 (US$ 0.06) per share net earnings from the option payment for the Kingking Copper-Gold Project. These option proceeds were included as other income net of the carrying cost of the Kingking project to date. The consolidated net earnings for 1994 include the nonrecurring gain of P124,900,000 (US$ 5,114,000) or P1.10 (US$ 0.045) per share from the sale of Benguet's portfolio holdings in the AsianBank Group. Throughout 1995, Benguet experienced lower production output due to declining ore grades resulting in the reduction of earnings versus 1994.

Operating revenue declined to P2,921,600,000 (US$ 111,452,000) in 1995 from P3,131,400,000 (US$ 128,244,000) in 1994. The average composite metal prices for 1995 rose slightly to US$ 385 per ounce for gold and US$ 1.28 per pound for copper versus US$ 383 per ounce for gold and US$ 1.21 per pound for copper in 1994.

Parent company operations (excluding subsidiaries) generated net funds of P1,105,500,000 (US$ 45,987,000). P489,000,000 or 41% of these funds were used to repay the principal amortization of the company's bank loans, while the remaining 59% were used to fund capital expenditures. In 1995, the parent company's outstanding loan balance was reduced to P1,327,000 (US$ 50,620,000) and is repayable in equal semiannual installments up to March 1999.

Earnings from the Dizon mine declined to P49,900,000 (US$ 1,902,000) in 1995 from P136,900,000 in 1994. The threat of a slide in the southeast/southwest areas of the present pit has forced the relocation of mining activities to the northeast/northwest areas where the ore grades, particularly for gold, are lower. This resulted in lower production outputs for this year as compared to 1994.

Production volume at the Dizon mine consisted of 28,946,675 pounds of copper and 67,990 ounces of gold from 6,277,945 tons of ore containing 0.27% copper and 0.53 grams of gold per tonne. In 1994, production volume consisted of 31,316,018 pounds of copper and 90,058 ounces of gold from 6,033,560 tonnes of ore containing 0.30% copper and 0.73 grams of gold per tonne. Net production cost averaged US$ 1.93 per pound copper (before gold/silver credits of US$ 0.92 and financing charges of US$ 0.01) in 1995, 10% higher than the average net production cost per pound copper of US$ 1.76 (before gold/silver credits of US$ 1.12 and financing charges of US$ 0.01) in 1994.

The Benguet Antomok open pit mine suffered a higher net loss in 1995 of P76,800,000 (US$ 2,929,000) from the net loss of P53,100,000 in 1994. While the daily average throughput of the mine increased to 4,114 tonnes per day, the average ore grade was lower at 1.92 grams of gold per tonne this year, as compared to 2.25 grams of gold per tonne a year ago.

Gold production in 1995 aggregated 73,055 ounces from 1,501,754 tonnes of ore. In 1994, gold production was 76,438 ounces from 1,316,287 tonnes of ore. Net production cost per ounce averaged US$ 408 in 1995, 9% higher than the average net production cost of US$ 375 in 1994.

In the latter part of 1995, mining operations began in the Luneta area of the Antamok open pit. Opening this area will improve the overall grade of the Antamok mine and provide additional source of ore for mining. Other reserves are currently being confirmed and studied for economic feasibility.

The non-recurring gain of P111,300,000 (US$ 4,269,000) from the sale of the Paracale Gold Operation to Base Metals Mineral Resources Corp. (BMMR), which was accrued and reported in the third quarter of this year pursuant to BMMR's notice to exercise its option, was reversed in the fourth quarter. The company entered into an option agreement with BMMR on April 28, 1995, and the sale was subject to option payments totaling P14.28 million and the final payment of P128.53 million as the purchase price for the Paracale mill facilities. With the failure of BMMR to pay the purchase price, however, its option under the agreement has effectively lapsed.

On March 1, 1996, Benguet and BMMR entered into a supplemental agreement wherein BMMR was granted an extension of its option period to May 30, 1996, upon payment of the additional amount of P28 million on Feb. 29, 1996. A further payment of P45 million on May 30, 1996, will likewise allow BMMR another extension up to June 30, 1996. Under this agreement, BMMR will carry out at its own expense all necessary repairs of the plant facilities damaged by typhoon "Rosing" and reimburse the company for the retrenchment costs of the minesite personnel. BMMR would take over full responsibility over the minesite effective March 15, 1996. Until BMMR exercises its option, however, Benguet would retain ownership of the Paracale mine.

In 1995, the Paracale mine incurred a net loss of P15,400,000 (US$ 589,000), 43% lower than the net loss of P26,900,000 in 1994, principally from buying activities intended to augment funds for caretaking of the mothballed operations.

Caretakership expenses for the underground mines of the Benguet Gold Operation, in which operations continue to be suspended, amounted to P49,000,000 (US$ 1,870,000), 3% lower than the P50,300,000 spent in 1994.

The Masinloc mine generated net earnings of P11,900,000 (US$ 453,000) in 1995, 47% higher than the earnings of P8,100,000 in 1994. Shipments of refractory ore for the year improved to 65,464 tonnes from the 55,493 tonnes shipped in 1994. Cost of sales per tonne, however, were higher in 1995 than a year ago.

In November 1995, the Masinloc Chromite Operation earned the distinction of being the first and only mining operation in the Philippines to be awarded the International Organization for Standardization (ISO 9000) certificate. This certification was awarded after the Masinloc mine's quality management system was subjected to thorough adequacy and rigid compliance audit by Certification International Philippines Inc. which found the mine to have met the standards of ISO 9002 model of quality management and quality assurance.

Benguet incurred a net loss of P12,300,000 (US$ 470,000) from metal trading activities in 1995, mainly from amortization of option premiums paid for copper and gold options bought in 1994 and in 1995, net of P8,200,000 (US$ 313,000) gains from deferred sales of gold. In 1994, Benguet incurred a metal trading loss of P34,200,000 also mainly from option premium costs for copper and gold options.

As of the end of 1995, the company has outstanding option contracts for 30,000,000 pounds of copper at the average price of US$ 1.14 per pound -- a protection from price fluctuations below this level.

Benguet Management Corp. (BMC), a 100% owner subsidiary of Benguet and its subsidiaries, reported consolidated net loss of P10,500,000 (US$ 402,000) in 1995, principally from the loss provision of P30,800,000 (US$ 1,175,000) in BMC's shareholdings in Philippine Cocoa Estates Corp. (PCEC) which BMC sold in December 1995. A year ago BMC reported consolidated net earnings of P1,400,000. In October 1995, BMC also sold 20% of its 40% shareholdings in Ebara-Benguet Inc. (EBI) at a net gain of P9,300,000 (US$ 356,000), with a buy-back option arrangement within a period of five years. By year-end, BMC's holdings in EBI were further reduced to 10.6% with EBI's increased capitalization being fully subscribed to by Ebara Corp. of Japan.

The relocation of BMC's foundry facilities from its Mandaluyong City site to Alaminos, Leguna was completed in February 1996. The improved plant layout in the new site, which is expected to bring about gains in operating efficiency, together with the sale of BMC's holdings in PCEC and the reduced holdings in EBI should bring a turnaround in BMC's profit performance in 1996.

BenguetCorp International Limited (BIL), Benguet's Hong Kong-based and 100% owned subsidiary for international operations, reported a net loss of P48,000 (US$ 2,000) in 1995, 84% lower than the net loss of P300,000 in 1994. In April 1995, BenguetCorp USA (BUSA), BIL's 100% owned subsidiary, entered into an option agreement for the sale of its mineral properties in Silver Peak, Nevada. BUSA continues to hold mineral properties in Royson Hills, Nevada.

The Bureau of Internal Revenue and the Department of Finance have favorably granted the company the additional amount of P60.2 million in tax credits, all of which were offset against the company's excise tax obligations. This brings the total tax credit to P151.5 million for direct export shipments covering the first quarter of 1991 up to the fourth quarter of 1992.

Currently, the balance of Benguet's claims consist of approximately P253.4 million for gold sold to the Bangko Sentral ng Pilipinas, in which claims are under judicial review, and P278.2 million for direct exports pending administrative review.

Under the agreement of the sale of the Kingking Copper-Gold Project to Echo Bay Mines (Echo Bay), TVI Pacific, Inc. (TVI), and Kingking Mines, Inc. (KKM), Benguet received a nonrefundable option payment of US$20 million in October of 1995. The additional amount of US$10 million is payable in 1996.

Echo Bay/TVI/KKM must conduct confirmatory exploration work on the properties and prepare within 24 months from October 1995 a bankable feasibility study, which will serve as the basis for their final decision, not later than 180 days thereafter, on whether or not to exercise their option to acquire the Kingking property. Should Echo Bay/TVI/KKM exercise the option, they will make an additional payment of US$67 million to Benguet at the time of exercising their option.

A further payment of US$18 million will also be due should the proven and probable gold reserves, as shown by the bankable feasibility study, exceed the reserves indicated in your company's pre-feasibility study. Benguet has the option to acquire a 20 percent interest in the Kingking project at the time Echo Bay/TVI/KKM exercise their option to acquire the Kingking project.

Dennis R. Belmonte, president and CEO of Benguet said, "With the additional funds received and expected from the option on the Kingking Copper-Gold Project, the pressure on the company's cash flow to service outstanding long-term bank debt has correspondingly eased. This liquidity problem partly resolved, the company can now resume its efforts in exploring new mineral properties and further develop existing one."

Benguet Corp. is the Philippines' oldest mining company. Its principal products are gold, copper concentrates and chromite. -0-

                      Benguet Corp. and Subsidiaries
                   Consolidated Results of Operations
                  In thousands (except per share data)
                             (Unaudited)

                       Three months ended    Twelve months ended
                            Dec. 31               Dec. 31
PHILIPPINE PESOS       1995        1994(a)    1995        1994(a)

Operating Revenue   P 686,100   P 887,900 P2,921,600     P3,131,400
Operating Profit       84,200     286,100    193,500        519,400
Other Income
 (Expenses) - Net      30,000    (218,900)  (153,300)      (563,300)
Net Income (Loss)
 Before Other Items   114,200      67,200     40,200        (43,900)
Other Items (b)      (111,300)         --         --        124,900
Net Income (c)      P   2,900   P  67,200  P  40,200      P  81,000
Earnings Per
 Share (d)                 --          --         --             --
Net Income (Loss)
 Before Other Items P    1.00   P    0.59  P    0.35      P   (0.39)
Other Items            (0.087)         --         --           1.10
Net Income          P    0.03   P    0.59  P    0.35      P    0.71

U.S. DOLLARS (e)

Operating Revenue   $  26,173   $  36,367  $  111,452     $ 128,244
Operating Profit        3,214      11,718       7,383        21,271
Other (Expenses) -
 Net                   (1,144)     (8,965)     (5,850)      (23,067)
Net Income (Loss)
 Before Other Items     4,358       2,753       1,533        (1,795)
Other Items (b)        (4,247)         --          --         5,113
Net Income (c)            111       2,753       1,533         3,317
Earnings Per Share(d)      --          --          --            --
Net Income (Loss)
 Before Other Items  $  0.038    $  0.024  $     0.01     $   3,318
Other Items            (0.037)         --          --         0.045
Net Income (Loss)    $  0.001    $  0.024       0.013     $   0.029

(a)   As restated to give effect to the adoption of the liability
      method of accounting for income tax under Accounting Standards
      Council Statement No. 23 "Accounting for Income Taxes."

(b)   Consist of non-recurring gains from the sale of investments in
      shares of stock.

(c)   Unrealized foreign exchange losses are deferred and amortized
      to coincide with the actual repayment of outstanding foreign
      currency obligations, while pension costs are actuarially
      computed and are funded as accrued.  The effect of these
      methods is to increase net income by P13,000,000 (US$495,000)
      for the fourth quarter and by P22,400,000 (US$853,000) for the
      year 1995.  In 1994, the effect is to decrease net income for
      the fourth quarter by P49,100,000 (US$2,011,000) and by
      P118,700,000 (US$4,861,000) for the year.

(d)   Earnings per share are based on the weighted average number of
      common shares outstanding of 114,059,217 in 1995 and
      114,005,511 in 1994.

(e)   Benguet is a Philippine corporation and its books of accounts
      are kept in Philippine pesos.  U.S. dollar figures are shown
      purely for convenience and were computed based on the
      interbank guiding rate at Dec. 31 of P26.214 to US$1.00 in
      1995 (P24.418 to US$1.00 in 1994).

CONTACT: Georgeson & Co. Inc., New York

John Shave, 212/440-9981