Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

OVERSEAS REGULATORY ANNOUNCEMENT

Please refer to the attached disclosure filed by Philex Mining Corporation ("Philex") with the Philippine Stock Exchange, in relation to Philex's press release on its unaudited results of operations for the second quarter ended 30 June 2014.

Dated this the 1st day of August, 2014

As at the date of this announcement, the board of directors of First Pacific Company Limited comprises the following directors:

Executive Directors:

Manuel V. Pangilinan, Managing Director and CEO

Edward A. Tortorici

Robert C. Nicholson

Non-executive Directors: Anthoni Salim, Chairman Benny S. Santoso

Tedy Djuhar

Napoleon L. Nazareno

Independent Non-executive Directors:

Graham L. Pickles

Prof. Edward K.Y. Chen, GBS, CBE, JP Margaret Leung Ko May Yee, SBS, JP Philip Fan Yan Hok

PRESS RELEASE

August 01, 2014

HIGHLIGHTS

2Q 2014 REPORTED NET INCOME AT P333.0 MILLION VS 1Q 2014: 267.4 MILLION, UP 25%
CORE NET INCOME THIS QUARTER AT P280.6 MILLION VS P278.4 MILLION LAST QUARTER, UP 1%
CONSOLIDATED REVENUES REACHED P2.868 BILLION (1Q2014: P2.913 BILLION)
CONSOLIDATED EXPENSES AT P2.194 BILLION (1Q2014: P2.274 BILLION)

Manila, Philippines - The Board of Directors of Philex Mining Corporation (PSE:PX) ("Philex" or the

"Company") today announced that the Company's Unaudited Core Net Income in the second quarter of

2014 reached P280.6 million, up from P278.4 million in the first quarter as the Company implemented cost-control measures to mitigate the impact of declining ore grades and low metal production since the start of the year. Reported Net Income for the period improved 25% to P333.0 million from the first quarter due to unrealized foreign exchange gains.

In the first half of 2014, Core Net Income amounted to P558.0 million while Reported Net Income stood at P600.5 million, lower by 32% and 37%, respectively, compared with last year due to lower gold and copper grades. Last year's figures were also raised by insurance proceeds related to business interruptions.

Production and Revenues

In the second quarter of this year, Consolidated Revenues amounted to P2.868 billion, slightly below the

P2.913 billion from the previous quarter as a result of lower metal output.

Gold production during the period totaled 25,844 ounces, 2% lower than 26,442 ounces produced in the previous quarter. Realized prices for gold dropped to an average of US$1,311 per ounce from US$1,373 per ounce in the first quarter of 2014. As a result, revenues from gold dropped to P1.478 billion from P1.610 billion.

Similarly, copper produced declined to 8,728,904 pounds from 9,468,009 pounds in the first quarter. However, with realized prices for copper improving to an average of US$3.33 per pound in the second quarter from US$2.85 per pound in the first three months, revenues from copper increased to P1.274 billion from P1.174 billion.

Consolidated Revenues in the first six months of this year reached P5.782 billion, 38% better than last year due largely to higher number of operating days in 2014 (178 days vs 115 days). Gold production similarly rose 28% to 52,286 ounces, while copper output grew 33% to 18,196,913 pounds.

Nonetheless, operational adjustments to address the declining ore grades, aimed at bringing in better grade ore sources and maximizing metal recoveries, are being implemented both at the mine underground and mill plant.

Operating Costs and Expenses

Consolidated costs and expenses went down to P2.194 billion in the second quarter from P2.274 billion in the first quarter due to the Company's conscious efforts to rein in controllable costs, and mitigate the impact of declining ore grades and volatile metal prices.

Consolidated costs and expenses in the first six months of this year on the other hand reached P4.468 billion from P2.726 billion due primarily to a higher number of operating days and the change in mineralogy, or the ore body's physical characteristics, making it more expensive to process.

EBITDA and Net and Core Earnings per Share

Consolidated EBITDA for the three-month period ending June 2014 amounted to P875.4 million, slightly higher than the P870.8 million in the first quarter. First half of 2014 EBITDA declined to P1.746 billion from P1.804 billion in 2013 as the increase in costs outpaced the growth in revenues.

On a per share basis, Net Earnings per share improved to 7.6 centavos in the second quarter of this year (1Q2014: 5.1 centavos), while Core Earnings per share was unchanged at 5.7 centavos (1Q2014: 5.7 centavos). As of the first six months Core and Net earnings per share dropped to 13.3 centavos (1H2013:

16.1 centavos) and 12.7 centavos (1H2013: 21.8 centavos), respectively.

---------------------- 000 -------------------- For Further Information, please contact:

Danny Y. Yu

Chief Finance Officer dyyu@philexmining.com.ph (632) 631-1381-88 loc 288

Rolli S. Bondoy

Investor Relations Head rsbondoy@philexmining.com.ph (632) 631-1381-88 loc 533

PHILEX MINING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Amounts in Peso Thousands, except Par Value Per Share which is in Peso) 30 June 2014

31 December 2013

ASSETS Current Assets

(UNAUDITED) (AUDITED)

Cash and cash equivalents 2,698,322 4,080,512
Accounts receivable 719,406 295,451
Inventories 2,090,774 2,668,274

Other current assets 1,500,887 1,343,245

Total Current Assets 7,009,389 8,387,482 Noncurrent Assets

Property, plant and equipment - net 6,957,893 6,880,096
Available-for-sale (AFS) financial assets 1,186,316 975,380
Goodwill 1,208,020 1,208,020
Deferred income tax assets - net 10,195 11,818

Deferred exploration costs and other non-current assets 24,341,019 22,427,186

Total Noncurrent Assets 33,703,443 31,502,500 TOTAL ASSETS 40,712,832 39,889,982 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities

Loans payable - current 6,897,500 6,176,369
Accounts payable and accrued liabilities 2,074,562 2,321,301
Income tax payable 42,974 11,519
Dividends payable 472,799 460,650
Provisions and subscriptions payables
Derivative liability

577,983 10,088

805,108
-

Total Current Liabilities 10,075,906 9,774,947 Noncurrent Liabilities

Deferred income tax liabilities - net 3,966,725 3,916,378
Loans payable - net of current portion - 55,014
Pension obligation 22,477 21,598

Provision for losses and mine rehabilitation costs 204,238 204,791

Total Noncurrent Liabilities 4,193,440 4,197,781 TOTAL LIABILITIES 14,269,346 13,972,728 Equity Attributable to Equity Holders of the Parent Company

Capital Stock - P1 par value 4,936,996 4,936,996
Additional paid-in capital 1,076,736 1,058,497
Retained earnings
Unappropriated 4,513,559 4,128,826
Appropriated 10,000,000 10,000,000
Net unrealized gain on AFS financial assets 215,624 4,689
Cumulative translation adjustments (10,294) 25,116
Net revaluation surplus 1,611,397 1,611,397

Effect of transaction with non-controlling interests 45,099 45,099

22,389,117 21,810,620


Non-controlling Interests 4,054,369 4,106,634

Total Equity 26,443,486 25,917,254 TOTAL LIABILITIES & EQUITY 40,712,832 39,889,982

PHILEX MINING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX MONTHS ENDED 30 JUNE 2014 AND 2013 (Amounts in Peso Thousands, except Earnings Per Share which are in Peso)

REVENUE

2014 2013

Gold 3,087,995 2,254,074
Copper 2,452,730 1,800,562

Silver 43,044 34,955

5,583,769 4,089,591


Less: Marketing charges 424,984 244,208

5,158,785 3,845,383

Petroleum 195,045 95,290

Coal 2,709 1,031

5,356,539 3,941,704 COSTS AND EXPENSES

Mining and milling costs (including depletion and
depreciation) 3,514,810 1,778,603
General and administrative expenses 540,032 640,632
Mine products taxes and royalties 280,627 222,992
Petroleum production costs 87,938 52,794
Handling, hauling and storage 41,830 29,687
Cost of coal sales 2,794 792

4,468,031 2,725,500 INCOME FROM OPERATIONS 888,508 1,216,204 OTHER INCOME (CHARGES)

Foreign exchange gains (losses) 94,777 (50,735)
Interest income 9,190 11,892
Insurance proceeds - 1,017,125
Gain on sale of AFS financial assets - 26,880
Interest expense (162,614) (217,032) Padcal maintenance costs during suspension of operations - (439,590)

Others - net (3,614) (78,134)

(62,261) 270,406 INCOME BEFORE INCOME TAX 826,247 1,486,610


PROVISION FOR INCOME TAX (225,787) (532,240)

NET INCOME 600,460 954,370 NET INCOME (LOSS) ATTRIBUTABLE TO:

Equity holders of the Parent Company 626,949 1,074,650

Non-controlling interests (26,489) (120,280)

600,460 954,370 CORE NET INCOME 559,034 817,656 BASIC EARNINGS PER SHARE 0.1270 0.2178 DILUTED EARNINGS PER SHARE 0.1270 0.2178 CORE NET INCOME PER SHARE 0.1132 0.1657

PHILEX MINING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) FOR THE SECOND QUARTER ENDED 30 JUNE 2014 AND 2013 (Amounts in Peso Thousands, except Earnings Per Share which are in Peso)

REVENUE

2014 2013

Gold 1,477,593 1,761,051
Copper 1,274,281 1,459,608

Silver 20,339 27,119

2,772,213 3,247,778


Less: Marketing charges 211,234 196,687

2,560,979 3,051,091


Petroleum 96,031 48,818

2,657,010 3,099,909 COSTS AND EXPENSES

Mining and milling costs (including depletion and
depreciation) 1,719,271 1,452,217
General and administrative expenses 254,476 365,280
Mine products taxes and royalties 142,652 178,547
Petroleum production costs 55,675 24,321
Handling, hauling and storage 22,010 22,373
Cost of coal sales - (29)

2,194,084 2,042,709 INCOME FROM OPERATIONS 462,926 1,057,200 OTHER INCOME (CHARGES)

Foreign exchange gains (losses) 128,425 (34,044)
Interest income 3,582 5,040

Interest expense (90,916) (111,756) Others - net (54,235) (35,215)

(13,144) (175,975) INCOME BEFORE INCOME TAX 449,782 881,225


PROVISION FOR INCOME TAX (116,745) (330,170)

NET INCOME 333,037 551,055 NET INCOME (LOSS) ATTRIBUTABLE TO:

Equity holders of the Parent Company 374,421 653,966

Non-controlling interests (41,384) (102,911)

333,037 551,055 CORE NET INCOME 280,620 685,283 BASIC EARNINGS PER SHARE 0.0758 0.1326 DILUTED EARNINGS PER SHARE 0.0758 0.1326 CORE NET INCOME PER SHARE 0.0568 0.1389
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