Regalito Copper completes its C$151 million sale to Pan Pacific Copper

Date Closed: 5/12/2006

Value: C$151 million

Pan Pacific Copper Co., Ltd. (PPC) has completed its takeover bid for all of the issued and outstanding common shares of Regalito Copper Corp. Regalito’s common shares are listed on the Toronto Stock Exchange and American Stock Exchange. The offer to acquire Regalito’s common shares for cash consideration of US$6 per share was made by PPC Canada Enterprises Corp., a wholly owned subsidiary of PPC, pursuant to a takeover bid circular dated April 3, 2006. By the expiry of PPC’s offer on May 9, 2006, approximately 90 per cent of the issued and outstanding Regalito common shares were deposited to the offer. PPC Canada Enterprises intends to acquire all the outstanding Regalito common shares not tendered to the offer pursuant to compulsory acquisition procedures. The transaction values Regalito at approximately C$151 million.

PPC was established in October 2000 by Nippon Mining&Metals and Mitsui Mining&Smelting, and engages in a wide range of copper businesses including the procurement of copper concentrate, the production through tolling arrangement of, and the marketing of products such as, refined copper, precious metals and sulphuric acid.

The Regalito special committee was represented by BLG with a team that consisted of Ian Webb, Fred Pletcher, Steve McKoen and Graeme Martindale.