<Page>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-K
(Mark One)
/X/        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934
           For the fiscal year ended OCTOBER 31, 2001

                                       Or

/ /        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
           EXCHANGE ACT OF 1934
           For the transition period from _______ to _______

                        COMMISSION FILE NUMBER 333-52285

                        THE DOE RUN RESOURCES CORPORATION
             (Exact name of registrant as specified in its charter)

                      NEW YORK                                13-1255630
        (State or other jurisdiction of                      (IRS Employer
         incorporation or organization)                   Identification No.)

           1801 PARK 270 DRIVE, SUITE 300
                 ST. LOUIS, MISSOURI                             63146
      (Address of principal executive offices)                (Zip Code)

   (Registrant's telephone number, including area code)      (314) 453 - 7100


Securities registered pursuant to Section 12(b) of the Act:

       TITLE OF EACH CLASS             NAME OF EACH EXCHANGE ON WHICH REGISTERED
              None                                   Not Applicable

Securities registered pursuant to Section 12(g) of the Act:

                                      None
                                (Title of Class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
                                                             [ ] YES     [X] NO

Indicate by check mark if disclosure of delinquent filers pursuant to ITEM 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. /X/

Number of shares outstanding of each of the issuer's classes of common stock, as
of May 16, 2002: COMMON STOCK, $.10 PAR VALUE 1,000 SHARES

Aggregate market value of the voting stock held by non-affiliates of the
registrant: $0; all shares of the voting stock of the registrant are owned by
its parent, DR Acquisition Corp.

<Page>

                       THE DOE RUN RESOURCES CORPORATION
                               INDEX TO FORM 10-K

<Table>
<Caption>
                                                                        PAGE NO.
                                                                        --------
<S>                                                                     <C>
PART I

     Item 1.   Business                                                     1

     Item 2.   Properties                                                   9

     Item 3.   Legal Proceedings                                           11

     Item 4.   Submission of Matters to a Vote of Security Holders         13

PART II

     Item 5.   Market for Registrant's Common Equity and Related
               Stockholder Matter                                          13

     Item 6.   Selected Financial Data                                     14

     Item 7.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations                         15

     Item 7A.  Quantitative and Qualitative Disclosures About
               Market Risk                                                 30

     Item 8.   Financial Statements and Supplementary Data                 30

     Item 9.   Changes in and Disagreements with Accountants on
               Accounting and Financial Disclosures                        99

PART III

     Item 10.  Directors and Executive Officers of the Registrant          99

     Item 11.  Executive Compensation                                     100

     Item 12.  Security Ownership of Certain Beneficial Owners
               and Management                                             103

     Item 13.  Certain Relationships and Related Transactions             103

PART IV

     Item 14.  Exhibits, Financial Statement Schedules, and
               Reports on Form 8-K                                        105

     SIGNATURES                                                           107

     EXHIBIT INDEX                                                        108
</Table>

<Page>

                                     PART I

ITEM 1. BUSINESS

         The Doe Run Resources Corporation (the Company) is a producer of base
and precious metals with operations in the United States and Peru. The Company
is the largest integrated lead producer in North America and the largest primary
lead producer in the western world. In Peru, the Company operates the La Oroya
smelter (La Oroya), one of the largest polymetallic processing facilities in the
world offering an extensive product mix of non-ferrous and precious metals,
including silver, copper, zinc, lead and gold.

         All of the Company's issued and outstanding capital stock is indirectly
owned by The Renco Group, Inc. (Renco). Renco is owned by trusts established by
Mr. Ira Leon Rennert, Renco's Chairman and Chief Executive Officer, for himself
and members of his family. As a result of such ownership, Mr. Rennert controls
the Company and its subsidiaries. The Company owns 100% of Doe Run Cayman Ltd.
(Doe Run Cayman), a Cayman Islands corporation. Doe Run Cayman owns in excess of
99% of the interest in Doe Run Peru S.R.L. (Doe Run Peru, a Peruvian
corporation), with a DE MINIMIS number of shares owned by employees of both Doe
Run Peru and Empresa Minera del Centro del Peru S.A. (Centromin) pursuant to
Peruvian law. Centromin is the Peruvian government entity whose subsidiary held
the assets and liabilities of La Oroya, which was purchased on October 23, 1997
by Doe Run Peru. The Company's business in the United States includes an
integrated primary lead operation, a secondary lead operation and lead
fabrication operations. In Peru, the Company produces various base metals and
precious metals and has a copper mining and milling operation. These operations
will be discussed in greater detail in the "Overview" sections below. Reference
with respect to operating segment information is hereby made to "Item 8.
Financial Statements and Supplementary Data", Note 13 to the Company's
Consolidated Financial Statements. The Company's business does not involve: 1)
seasonal fluctuations, 2) unusual working capital requirements, 3) significant
order backlog or 4) federal contracting.

OVERVIEW -- U.S. OPERATIONS

         The Company's U.S. primary lead operation consists of two primary
smelters, which obtain concentrates from the Company's four operating mills,
supplemented from time to time with concentrates purchased in the open market.
The mills are supplied with ore mined from six production shafts along
approximately 40 miles of the Viburnum Trend in southeastern Missouri, one of
the world's most productive lead deposits. As of October 31, 2001, the Company's
U.S. ore reserves consisted of approximately 50 million proven and probable
tons, containing grades of 5.85% lead, 1.34% zinc and .25% copper. The Company
also operates a secondary smelter in southeastern Missouri where it produces
lead metal from recycled lead-acid batteries and other lead bearing materials.
Through its subsidiary, Fabricated Products, Inc. (FPI), the Company produces
value-added lead products such as lead oxide, lead sheet and lead bricks at
facilities in Arizona, Washington and Texas. These operations permit the Company
to participate in and manage the entire lead life cycle from mining lead ore, to
producing refined lead metal, to fabricating value-added lead products, to
recycling batteries and other materials containing lead.

         In fiscal 2001, the Company's U.S. operations shipped approximately
490,000 tons of refined lead metal and lead alloy products, including recycled
lead, representing approximately 23% of North American consumption and 8% of
western world consumption and generating net sales of $303.1 million and a net
loss of $48.4 million.

         Approximately 67% of the U.S. operation's lead metal sales, in 2001,
were to battery manufacturers or their suppliers. Historically the lead-acid
battery has been the dominant technology for automotive and other starting,
lighting and ignition (SLI) batteries. Management believes this will continue to
be the case for the foreseeable future because of its cost competitiveness,
recycleability and existing infrastructure. Refined lead is also used in
products such as computer and television screens, ammunition, stationary
batteries used as backup power sources and rolled and extruded lead products
used in radiation shielding and roofing materials.

         Fluctuations in lead and other base metal prices could have a material
adverse effect on the results of operations, financial condition and liquidity
of the Company. These prices are affected by numerous factors beyond the
Company's control, including expectations for inflation, speculative activities,
global and regional demand and production, political and economic conditions and
production costs in major producing regions. The aggregate effect of these
factors is impossible for the Company to predict. The Company, by taking
advantage of its extensive polymetallic ore resources, is somewhat able to
reduce its exposure to metal price volatility through adjustments to its mining
and milling plans to take advantage of prevailing market conditions for lead and
zinc. In addition, sales from tolling services, by-products and fabricated
products provide the Company with sources of revenue largely independent of lead
prices


                                       1
<Page>

         The average market price for refined lead, determined on the London
Metal Exchange (LME), was $428.80 per short ton in fiscal 2001. This represents
a 4% increase compared to the average for fiscal 2000. From 1998 through 2000
the LME lead price declined as new mines were developed in Australia and
Ireland, and as China increased its lead metal production and exports. During
the second and third quarters of fiscal 2000 lead prices declined to near
historic lows. Despite the modest improvement in fiscal 2001, lead prices remain
substantially below the average for the ten years 1992 through 2001.

         In the U.S. market, premiums over the LME were adversely impacted by
the recessionary conditions in the U.S. economy during 2001. Slower automotive
replacement battery shipments have weakened overall demand, compared to the
prior year. Also, a significant drop in demand for batteries for the
telecommunications industry occurred as a result of lower capital expenditures
for the industry's infrastructure. In fiscal 2001, western world consumption of
lead declined by 5% and U.S. consumption declined by 10%, reflecting weakened
economic conditions. Management believes that demand is near its lowest point
and is likely to increase as a result of economic recovery and worldwide
economic growth.

         Management believes that lead prices will recover from the current low
level, as several large lead-producing mines will be depleted beginning in 2001
through 2006. In 2001, mine closures and cutbacks occurred in Spain, Sweden,
Canada and the U.S., reducing supply by approximately 200,000 tons, or
approximately 3% of western world consumption. These closures should
significantly reduce western world production and bring about a deficit in
supply versus demand. In recent months, the industry has seen evidence of this
deficit as some primary smelters have cut back due to limited concentrate
availability. In publications issued in December of 2001, international
commodity consultants forecasted annual average lead prices for the years 2002
through 2007, which are higher than those experienced in 2001.

         Zinc prices dropped precipitously in 2001 as a result of weak demand
and excess production. The last several years have seen large zinc mines open in
Australia, Ireland and Peru and a major expansion of a zinc mine in Alaska. In
fiscal 2001, world zinc mine production increased 5% and zinc metal production
increased 4%. Demand was weak during 2001 because of general economic
conditions, and in particular because of weakness in the auto and construction
industries. Western world zinc demand dropped 3% and U.S. zinc demand dropped
13% in 2001, compared to 2000. As a result, the average LME price for refined
zinc declined more than 19% to $846.40 per ton in fiscal 2001. Industry analysts
project this zinc surplus will continue to grow, making the prospects for a
recovery in zinc prices unlikely in 2002. If zinc mine production is reduced, in
order to balance supply and demand, lead concentrate supplies are likely to
tighten even further as lead is a by product of many zinc mines.

OVERVIEW-- PERUVIAN OPERATIONS

         The Company's Peruvian operations consist of the La Oroya smelting
complex, acquired in October 1997, and the Cobriza mine and mill, acquired in
August 1998. La Oroya's unique combination of base metal smelters, refineries
and by-product circuits enable it to process complex polymetallic concentrates
and to produce high quality finished metals and by-products. For the year ended
October 31, 2001, net sales and net income were $434.3 million and $1.6 million,
respectively. Refined silver, copper, zinc, lead and gold accounted for 36%,
25%, 17%, 14% and 5%, respectively, of fiscal 2001 net sales. Sales of various
by-products accounted for the balance of fiscal 2001 sales. In 2001, La Oroya
was one of Peru's largest exporters, exporting approximately 89% of its total
shipments to North America, Europe and Asia, as well as other Latin American
countries. Its customers include end-users of base metals and metal by-products,
as well as international metal trading companies.

         La Oroya 's operations consist of the smelting and refining of complex
concentrates obtained from Cobriza and from unaffiliated mining operations. La
Oroya typically purchases concentrate feedstock pursuant to contracts under
which the cost of concentrates is based on a percentage of the payable base
metal and precious metal content of the concentrates, reduced by processing
fees, treatment charges to refine the concentrates and penalties for impurities
within the concentrates, such as arsenic, antimony and bismuth, which the
smelter can process and sell as by-products. Base metal prices are generally
established by reference to international metal markets, primarily the LME.
Treatment charges and penalties are negotiated with concentrate sellers. They
are affected by numerous factors beyond the Company's control including:
expectations for inflation, global and regional demand for smelter capacity,
availability and quality of concentrates and production costs in major producing
regions. The aggregate effect of these factors is impossible for the Company to
predict. Currently, La Oroya has secured approximately 93% of its concentrate
requirements for fiscal 2002, through material supplied by Cobriza and contracts
with suppliers. For the year ended October 31, 2001, approximately 25% of the La
Oroya smelter's copper concentrate requirements were met by Cobriza,
representing 100% of Cobriza's output.


                                       2
<Page>

         Because La Oroya pays for the majority of the metal content of the
concentrates purchased, it derives its operating profit primarily from treatment
charges and penalties. Additional operating profit is generated from the sale of
by-products, as well as from premiums over market prices received on its refined
metal sales. Because La Oroya's metallurgical recoveries are typically greater
than the percentage of metal content paid for, it is able to sell the excess
recoveries and increase its operating profit.

         The markets for La Oroya's products are global and demand depends upon
world wide economic conditions. Given the diversity of its products and
by-products, the Company's financial performance is not solely dependent upon
any single product or by-product. Also, because the La Oroya smelter is
primarily a processor of complex concentrates that are purchased based on market
prices, its financial performance is less sensitive to the volatility of metal
prices.

THE COMPANY'S U.S. OPERATIONS

PRODUCTS AND SERVICES

         The principal products produced by the Company's U.S. operations
include refined lead from primary and secondary sources, zinc and copper
concentrates, fabricated lead products and other by-products. The Company also
generates revenue from tolling fees received for recycling spent lead-acid
batteries and other lead-bearing materials for its customers. The following
table sets forth net sales for the Company's products and services:

<Table>
<Caption>
                                                       YEAR ENDED OCTOBER 31,
                                                    2001       2000       1999
                                                  --------   --------   --------
                                                      (dollars in thousands)
<S>                                               <C>        <C>        <C>
Primary lead metal sales ......................   $169,955   $192,690   $217,062
Secondary lead:
     Tolling ..................................     26,003     24,230     23,441
     Metal sales ..............................     47,917     38,810     31,754
     Other ....................................      4,743      4,821      5,620
Zinc concentrates .............................     23,654     35,452     31,373
Copper concentrates ...........................      1,102      3,644      3,511
Fabricated Products ...........................     25,271     26,254     25,699
Other .........................................      4,501      3,066      4,380
                                                  --------   --------   --------
      Total ...................................   $303,146   $328,967   $342,840
                                                  ========   ========   ========
</Table>

         For the year ended October 31, 2001, exports represented approximately
1% of the U.S. operations' net sales. For each of the years ended October 31,
2000, and 1999 exports were approximately 2% of the U.S. operations' net sales

CUSTOMERS

         The Company's U.S. operations had approximately 170 lead metal
customers including six of the eight largest lead-acid battery manufacturers in
the world. These six customers accounted for approximately 43% of U.S. net sales
in fiscal 2001. The loss of any of the Company's large customers or curtailment
of purchases by these customers could have a material adverse effect on the
results of operations, financial condition and liquidity of the Company. For
fiscal 2001, Johnson Controls Inc. accounted for approximately 11% of the U.S.
operations' net sales. In fiscal 2000 and 1999 no single customer accounted for
more than 10% of the U.S. operations' net sales.

COMPETITION

         The Company is the largest integrated lead producer in North America
and the largest primary producer in the western world. The Company competes
primarily in the North American market where its competitors are other major
primary and secondary lead producers. Competition within the North American
market is based primarily on quality, price, service, timely delivery and
reliability. Because lead is generally sold on a delivered basis with freight
charges included, the Company's central U.S. location allows it to have
transportation costs significantly lower than its major competitors with
operations outside of North America. Due to its location, the Company is also

                                       3
<Page>

able to provide its customers just-in-time delivery at a lower cost than most of
its competitors. In addition, management believes the Company's primary and
secondary production capacities and focus on the lead business as its core
business provide the Company with additional competitive advantages.

RAW MATERIALS

         Lead concentrates are supplied by the Company's mining operations and,
from time to time, purchased from third parties. For a discussion of the
Company's mineral reserves, see "Item 2. Properties -- Ore Reserves." At planned
production rates, U.S. operations expect to produce all of the concentrates
required by its primary smelters for fiscal year 2002.

         The Company's U.S. operations utilize various other raw materials,
principally spent batteries, coke, and chemicals and reagents, which are secured
from external sources, primarily on the basis of competitive bid. The Company
believes that it has adequate sources of these raw materials to meet its present
production needs.

POWER

         The electric power source for the majority of the Company's U.S.
operations is Ameren UE, a public utility headquartered in St. Louis, Missouri.
The Viburnum-35 mine and Glover primary smelter obtain their electric power from
Black River Electric Cooperative, a public utility located in Southeastern
Missouri. Natural gas and propane are secured from external sources, primarily
under contracts that are awarded on the basis of competitive bid. The Company
believes that it has adequate power sources to meet its present production
needs. The cost of both natural gas and propane increased significantly in the
last quarter of fiscal 2000 and the first half of fiscal 2001, adversely
affecting the Company's results of operations. Natural gas and propane prices
declined in the last quarter of 2001 to levels lower than the average for 2000.

ENVIRONMENTAL MATTERS

         The Company's U.S. operations are subject to numerous federal, state
and local environmental laws and regulations governing, among other things, air
emissions, waste water discharge, solid and hazardous waste treatment, and
storage, disposal and remediation of releases of hazardous materials. In common
with much of the mining industry, the Company's facilities are located on sites
that have been used for heavy industrial purposes for decades and may require
remediation. Environmental laws and regulations may become more stringent in the
future which could increase costs of compliance. See "Item 8. Financial
Statements and Supplementary Data", Note 16 to the Company's Consolidated
Financial Statements.

EXPLORATION

         The Company continues to explore for additional reserves within the
Viburnum Trend, which is one of the world's most productive lead ore deposits,
located in southeastern Missouri. Current exploration, which has been reduced
due to the low metal prices, is focused on surface and underground drilling in
and adjacent to the operating mines for the purpose of discovering new ore
reserves, as well as delineating previously drilled ores for mining purposes. In
addition, drilling work is being pursued in most of the mines to access ore
beyond the present mining areas. The Company also holds exploration tracts
outside the Viburnum Trend in the U.S. and in the Republic of South Africa that
are being explored. In Missouri, 50 miles east of the Viburnum trend, the
Company has conducted pre-development work on a lead-zinc-cobalt deposit. In
South Africa, the Company has conducted pre-feasibility work on a lead and zinc
deposit approximately 100 miles from Kimberly, in the Northern Cape province.
These properties are currently being held with minimal cost pending further
economic evaluation. In fiscal 2001, 2000 and 1999, the Company spent $3.8
million, $4.2 million and $4.9 million, respectively, on exploration activities,
including $2.4 million, $2.4 million and $3.7 million, respectively, outside the
Viburnum Trend.

SAFETY

         Throughout its operations, the Company strongly emphasizes providing
employees a safe working environment through extensive training to ensure safe
work practices and worker knowledge of proper equipment operation. In the U.S.,
the Company's mining and milling operations are regulated by the Mine Safety and
Health Administration of the Department of Labor (MSHA) and its smelting and
fabricating operations by the Occupational Safety and Health Administration of
the Department of Labor (OSHA). The Company believes it has achieved safety
results that are among the best in its industry classifications. In 2000, the
Company's Sweetwater mine was presented the Sentinels of Safety Award, for 1999,
by the National Mining Association and MSHA, for being the


                                       4
<Page>

safest in the underground metal mine category. Each year between 1973 and 1999,
one of the mining units has been named either the safest or second safest
underground metal mine in the United States by MSHA. The Company has achieved
the top award 15 times in the last 29 years. Although the mining and milling
operations' safety performance in 2001 did not meet the Company's expectations,
the results were still about two times better than the industry average. The
smelting operations have achieved a strong safety record as well, with typical
lost time accident rates averaging approximately three to four times better than
industry averages in recent years.

EMPLOYEES

         As of October 31, 2001, the Company had 400 active salaried employees
and 1,138 active hourly employees in the United States, of which, 139 hourly
employees were represented by Local 7450 of the United Steelworkers of America
(USWA). The Company has a three-year agreement with the union, which expires in
May 2002. The Company began negotiations in April 2002. Management believes that
its labor relations are good.

THE COMPANY'S PERUVIAN OPERATIONS

PRODUCTS

         La Oroya's principal products include refined silver, copper, zinc,
lead and gold. In addition, La Oroya produces a variety of by-products,
including bismuth, indium, tellurium, antimony, cadmium, selenium, sulfuric
acid, zinc-silver concentrate, zinc sulfate, copper sulfate, arsenic trioxide
and others. The following table sets forth net sales for each of La Oroya's
principal products.

<Table>
<Caption>
                                                       YEAR ENDED OCTOBER 31,
                                                    2001       2000       1999
                                                  --------   --------   --------
                                                      (dollars in thousands)

<S>                                               <C>        <C>        <C>
Silver ........................................   $153,993   $174,651   $170,023
Copper ........................................    106,772    118,452    102,235
Zinc ..........................................     76,039     90,564     77,969
Lead ..........................................     59,165     53,262     54,754
Gold Bullion ..................................     22,756     26,345     19,719
By-Products ...................................     15,611     22,801     32,734
                                                  --------   --------   --------
        Total .................................   $434,336   $486,075   $457,434
                                                  ========   ========   ========
</Table>

CUSTOMERS

         La Oroya had approximately 375 customers in 2001, including a wide
variety of industrial and international trading companies, of which the five
largest accounted for approximately 37% of its net sales. In 2001, approximately
89% of net sales were exported, with sales to North American countries
representing approximately 29% of net sales, followed by Latin America, Europe
and Asia with 35%, 22% and 14% of net sales, respectively. Substantially all of
La Oroya's 2001 metal sales were pursuant to contractual agreements, typically
one year or less. Such contracts generally set forth minimum volumes and pricing
mechanisms. Substantially all of La Oroya's sales were denominated in U.S.
dollars.

COMPETITION

         La Oroya's unique combination of base metal smelters, refineries and
by-product circuits are capable of processing complex concentrates into high
quality base and precious metals. Only three other facilities in the western
world have the capability to treat lead and copper concentrates containing high
antimony, arsenic, bismuth and precious metal values in addition to a variety of
residues. Unlike La Oroya, none of these facilities has a dedicated zinc
production circuit. As a result of La Oroya's proximity to significant sources
of concentrates, management believes that it operates at a geographic
competitive advantage. In addition, La Oroya's proximity to Lima's Callao port
provides ready access to major world markets.


                                        5
<Page>

RAW MATERIALS

         La Oroya's primary raw material is concentrate feedstock. In addition,
the Company's process consumes various other raw materials, principally coal and
fluxes.

         COPPER. During 2001, approximately 61% of the copper concentrates
processed at La Oroya were obtained from the Peruvian domestic market,
approximately 41% of which were supplied by Cobriza. In fiscal 2002, La Oroya
expects to obtain approximately 62% of its copper concentrates from the Peruvian
domestic market, 45% of which will come from Cobriza. The balance will be
obtained primarily from neighboring Latin American countries. The Company
believes that sufficient concentrates will be available to meet its requirements
for the foreseeable future.

         ZINC. All of the zinc concentrates processed at La Oroya, during 2001,
were secured from the Peruvian domestic market. La Oroya requires approximately
90,000 tons of zinc metal contained in concentrates per year to maximize
production capacity. With present mine production, the Company believes that
sufficient concentrates will be available to meet its requirements for the
foreseeable future.

         LEAD. Approximately 96% of La Oroya's 2001 lead concentrates were
obtained from the Peruvian domestic market, with the Paragsha, Andaychagua and
Mahr Tunnel mines, owned by Volcan Compania Minera S.A., accounting for
approximately 40% of the total feedstock. La Oroya has no local Peruvian
competitors in lead smelting, therefore it has a substantial freight advantage
for all of the concentrates produced in Peru, the total of which far exceeds La
Oroya's requirements. However tightness in the market for lead concentrates has
resulted in intense competition for lead concentrates from buyers outside of
Peru, adversely affecting treatment charges received.

         FEED SUPPLY. As described above, a significant portion of La Oroya's
feed supply is currently secured from the Peruvian domestic market. The effects
of low metals prices have caused some of the Company's current supplies to
suffer financial distress. If one or more of the local producers were to cease
delivery of concentrates, there can be no assurance the Company would be able to
secure sufficient replacement feedstock or at economically acceptable terms. A
significant interruption in feed supply could result in a material reduction in
the production of metals from La Oroya which would likely have a significant
adverse effect on the Company's results of operations, financial condition and
liquidity.

         WATER. Water for the La Oroya facility is obtained from three main
sources: the Mantaro River, the Tishgo River and the Cuchimachay Spring.
Management believes these three sources, in addition to numerous adjacent
springs and wells provide adequate water supplies for the facility.

         POWER. La Oroya receives electric power from Empresa de Electricidad de
los Andes S.A., (Electroandes), a local electric power company owned by PSGE
Global Inc. The smelting complex consumes approximately 67 megawatts of ongoing
load, which represents approximately one-third of the capacity of Electroandes.
La Oroya has a long-term power supply contract with Electroandes, which
management believes will provide sufficient power to La Oroya at satisfactory
long-term rates. The contract expires in October 2007. Most of Cobriza's
electrical power is also provided by Electroandes. Cobriza's requirements do not
represent a significant portion of Electroandes' capacity.

         OTHER. At La Oroya, an oxygen plant supplies oxygen for the oxy-fuel
burners of the reverberatory furnace of the copper smelter and for the blast
furnaces of the lead smelter. The oxygen plant was installed in 1994 with a
capacity of 353 tons per day. It is owned by a local bank and leased to the
Company under a sale and leaseback agreement. Coal is imported to produce
metallurgic coke for the lead circuit blast furnaces. Fluxes consumed in the
smelting process are supplied by company-controlled mining concessions near La
Oroya. The company also purchases silica and pyrite fluxes containing precious
metal values. Management believes that its sources of these materials are
adequate to support operations for the foreseeable future.

ENVIRONMENTAL MATTERS

         Modern environmental legislation has been introduced only in the last
decade in Peru. For mining and metallurgical activities, the Ministry of Energy
and Mines (MEM) is the principal regulatory authority. The MEM has issued
"maximum permissible limits" for liquid effluent and air emissions. In addition,
the Consejo Nacional del Ambiente (National Environmental Council) coordinates
government regulations and policies, including the air quality standards for
Peru. The Direccion General de Salud Ambiental (Directorate General of
Environmental


                                       6
<Page>

Health) (DIGESA), a division of the Ministerio de Salud (Ministry of Health),
issues wastewater discharge permits based on standards governing receiving water
quality. Peruvian law requires all new mining or metallurgical operations, and
existing operations that are undergoing an expansion of over 50% of installed
capacity, to submit to the MEM an Estudio de Impacto Ambiental (Environmental
Impact Study).

         For mining and metallurgical operations in existence prior to 1994,
concession holders (i.e. owner/operators) were required to submit to the MEM an
Evaluacion Ambiental Preliminar (Preliminary Environmental Assessment) (EVAP)
that identified environmental impacts and twelve months of baseline monitoring.
Based on the results of the EVAP, the operator submitted to the MEM a Programa
de Adecuacion y Manejo Ambiental (Environmental Remediation and Management
Program) (PAMA) that consisted of an environmental impact analysis, monitoring
plan and data, mitigation measures and closure plan. The PAMA also sets forth
the actions and corresponding annual investments the concession holder agrees to
undertake in order to achieve compliance with the applicable standards prior to
expiration of the PAMA (ten years for smelters, such as La Oroya's operations,
and five years for any other type of mining or metallurgical operation, like
Cobriza). The required amount of annual investment must not be less than 1% of
annual sales. Once approved, the PAMA functions as the equivalent of an
operating permit with which the operator must comply. After expiration of the
PAMA, the operator must comply with all applicable standards and requirements.
Mining, metallurgical and processing operators must present annual sworn
statements to the MEM that describe their operations and resultant emissions. In
addition, Peruvian environmental law allows operators to enter into a Contrato
de Estabilidad Administrativa Ambiental (Contract for Administrative
Environmental Stabilization) (Environmental Stabilization Agreement) in order to
provide some potential limit to the applicability of new laws during the life of
the PAMA.

         The initial PAMA for La Oroya's predecessor was submitted by Centromin
and approved by the MEM on January 13, 1996. The PAMA was modified in connection
with the acquisition of La Oroya to reflect a reallocation of environmental
responsibilities between Centromin and the Company, and corresponding revisions
were made to the investment schedule. The MEM approved separate PAMAs for
Centromin and the Company and an Environmental Stabilization Agreement for the
Company.

Doe Run Peru has committed under its PAMA to implement the following projects
through December 31, 2006:
     o    New sulfuric acid plants
     o    Treatment plant for the copper refinery effluent
     o    Industrial waste water treatment plant for the smelter and refinery
     o    Improve Huanchan lead and copper slag deposits
     o    Build an arsenic trioxide deposit
     o    Management and disposal of lead and copper slag wastes
     o    Domestic waste water treatment and domestic waste disposal
     o    Monitoring station

         La Oroya's operations historically and currently exceed some of the
applicable MEM maximum permissible limits pertaining to air emissions, ambient
air quality and wastewater effluent quality. The PAMA projects, which are more
fully discussed below, have been designed to achieve compliance with these
requirements prior to the expiration of the PAMA on January 13, 2007. No
assurance can be given that implementation of the PAMA projects is feasible or
that their implementation will achieve compliance with the applicable legal
requirements by the end of the PAMA period. In January 2002, the Company
received permission from the MEM to change certain PAMA projects and the timing
of their completion. However, there can be no assurance that the Peruvian
government will not, in the future, require compliance with additional
environmental regulations that could adversely affect the Company's business,
financial condition or results of operations. Under the Subscription Agreement,
pursuant to which the Company acquired La Oroya, Centromin agreed to indemnify
the Company against environmental liability arising out of its prior operations,
and performance of the indemnity has been guaranteed by the Peruvian government
through the enactment of the Supreme Decree No. 042-97-PCM. However, there can
be no assurance that Centromin will satisfy its environmental obligations and
investment requirements, including those in its PAMA, or that the guarantee will
be honored. Any failure by Centromin to satisfy its environmental obligations
could adversely affect the Company's business, financial condition or results of
operations.

         As part of the acquisitions of La Oroya and Cobriza, the Company
entered into certain agreements with MEM to expand and modernize their
operations, including expenditures to comply with environmental regulations in
Peru, such as those governing the treatment, handling and disposal of solid
wastes, liquid effluent discharges and gaseous emissions. Principal projects
related to environmental matters at the La Oroya smelter include: 1) building
sulfuric acid plants for the metal circuits, 2) new converter and roaster
technology for the copper circuit, 3)


                                       7
<Page>

replacement of the roaster equipment for the zinc circuit, 4) water and sewage
treatment facilities, and 5) slag and slimes handling equipment and disposal
facilities. The Company estimates that expenditures related to environmental
matters and related process changes will be approximately $170 million for
fiscal 2002 through fiscal 2007.

         The Cobriza mine has a separate PAMA in which the Company has committed
to complete projects to manage tailings, mine drainage, sewage and garbage by
mid-2002. After beginning construction on the largest of the projects, the
tailings backfill project, the revised project cost estimate increased
substantially. As a result, in February 2001 the Company requested a revision of
its PAMA from the MEM, which would allow it to operate for a time without
completing the backfill project. Future economic and operating conditions could
affect the Company's ability to complete the backfill project. The Company is
currently in compliance with its requirement to reduce emissions from the mine
under the PAMA through a decrease in production. In April 2002, the MEM proposed
a pending regulation extending the PAMA for all companies for an additional 18
months for work remaining under the PAMA. For companies still not in compliance
at the end of this 18-month extension period, each company would have an
additional six months to close the operation. In light of this pending
regulation, Doe Run will be re-evaluating its options with the expectation that
a decision will be made within the next six to twelve months regarding the
future course of action to be taken.

         In conjunction with the MEM agreement, the Company has undertaken a
ten-year capital investment program, which runs through 2007, to enhance various
elements of its operations. The objectives of the capital investment program are
increasing net sales by improving product quality, increasing production
capacity and reducing unit costs. In addition, through planned environmental
expenditures, the Company will endeavor to achieve compliance with environmental
regulations in Peru. Management believes that additional financing will be
necessary in order to fund the capital investment program. See "Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations --Liquidity and Capital Resources."

SAFETY

         In Peru, the MEM is responsible for regulations enacted to minimize
accidents. It conducts annual inspections to ensure compliance with numerous
safety standards. The Company's Peruvian operations suffered two fatal accidents
at Cobriza during 2001. One was a Company employee and was the result of a rock
fall; the other was a contract laborer involved in a mobile equipment accident.
Management has thoroughly investigated each of these incidents and reinforced
the appropriate safety procedures with the workforce. Despite these unfortunate
incidents, the safety performance of the Peruvian operations, in terms of both
fatalities and lost time accidents, has improved significantly. Under the
Company's management, lost time accidents rates are lower by more than 60% at La
Oroya and more than 65% at Cobriza, compared to similar periods under the former
owner. With further assistance and direction provided by the U.S.
representatives of the Company, the Peruvian operations will continue to
maintain a high regard for safety and health.

EMPLOYEES

         As of October 31, 2001, the Company's Peruvian employees included 955
active salaried employees, 2,131 active hourly employees, and 1,475 contractors.
There are three unions for hourly employees and two unions for salaried
employees. The principal union representing 82% of the hourly employees is the
Sindicato de Trabajadores Metalurgicos La Oroya (La Oroya Metallurgic Workers
Union). The Sindicato de Trabajadores Ferroviarios La Oroya (La Oroya Railway
Workers Union) and the Sindacato de Trabajudones Cobriza (Cobriza Workers Union)
represent 4% and 9%, respectively, of the hourly workers. The remaining hourly
workers, 5%, are not affiliated with a union. On July 26, 1998, the Company
entered into a five-year labor agreement with the hourly unions at La Oroya. The
salaried employees are represented by the Sindicato de Empleados Yauli-La Oroya
(Yauli-La Oroya Employees Union), representing 39% of the salaried employees and
by the Sindicato de Empleados Ferroviarios La Oroya (La Oroya Railway Employees
Union), representing 3% of salaried employees. The remaining salaried employees,
58%, are not affiliated with a union. The current salaried employees' labor
agreement continues until December 31, 2002. Management believes the Company's
contract labor relations are good. A Peruvian law adopted in January, 2002
limits employers on the number of contract employees they may have. As of
May 15, 2002, Doe Run Peru has made the necessary changes into its plans to
comply with the law, resulting in the conversion of 190 and 133 contract
employees at LA Oroya and Cobriza, respectively, to employee status.


                                       8
<Page>

ITEM 2. PROPERTIES

U.S. OPERATIONS

         The Company's Missouri mining operations have eight production shafts
that form a north-south line along approximately 40 miles of the Viburnum Trend
ore body. Three production shafts, Viburnum-28, Viburnun-29 and Viburnum-35, lie
within a five-mile radius east, north and south, respectively, of Viburnum,
Missouri. Viburnum is located approximately 125 miles southwest of St. Louis,
Missouri. The Buick, Brushy Creek, Fletcher, West Fork and Sweetwater production
shafts are within thirty miles of Viburnum. Six of the production shafts are
currently operating. The Viburnum-29 and West Fork production shafts are on care
and maintenance status.

         The Company also has available five grinding/floatation mills located
near its production shafts. Four of the mills are currently operating. The West
Fork mill is on care and maintenance status. All of the mining and milling
facilities are accessible by state or county roads or Company-owned haul roads.
Products are shipped by truck over public roads or by rail. The Viburnum and
Buick mills have rail access.

           The production capacities of the Company's mills are as follows:

<Table>
<Caption>
                                                  Concentrate Capacity
                          Mill                       (Tons per Day)
                    ------------------         ----------------------------
                    <S>                                   <C>
                    Buick                                 7,200
                    Fletcher                              5,000
                    Brushy Creek                          5,000
                    West Fork                             4,000
                    Sweetwater                            6,800
</Table>

         The Herculaneum primary lead smelter, with a capacity of 250,000 tons
per year, is located approximately 35 miles south of St. Louis on the
Mississippi River in Herculaneum, Missouri. The Herculaneum smelter is the
largest primary lead smelter in North America and the second largest in the
world.

         Located in Glover, Missouri, approximately 20 miles southeast of the
Sweetwater production shaft, the Glover primary smelter has a capacity of
approximately 136,000 tons per year.

         The secondary lead recycling smelter is located in Boss, Missouri
approximately ten miles south of Viburnum. The annual capacity of the facility
is approximately 165,000 tons. The facility operates under a Resource
Conservation and Recovery Act (RCRA) permit allowing it to handle waste,
primarily lead-bearing material.

         The Company owns its two primary smelters and its secondary smelter.

         The secondary facility submitted a PSD (Prevention of Significant
Deterioration) air permit application to Missouri Department of Natural
Resources, in October 2001, which would allow the facility to expand its
production limit to nearly 200,000 tons annually. The permit review for this
application should be completed by mid to late 2002.

         The Company's fabricated products operations are leased facilities,
located in Casa Grande, Arizona, Vancouver, Washington, and Houston, Texas.

         The Company owns the property where the necessary surface structures
for mining and milling are located. The mineral rights are held either by fee
title or mineral leases with either private landowners or the federal
government. There are also numerous prospecting permits, most of which are for
exploration of new mineral ore deposits. Five of the production leases are
private leases and 11 are government leases. The mineral leases with private
landowners have no expiration periods. The government leases are for a period of
either 10 or 20 years and are renewable. Although no assurance can be given,
management anticipates that these leases will be renewed at similar royalty
rates. The Company makes royalty payments under these leases.


                                       9
<Page>

The Company's leases from the federal government consist of the following:

<Table>
<Caption>
                                   Number of            Expiration
          Location                  Leases                 Date
          --------                  ------                 ----
<S>                                    <C>           <C>
        Viburnum                       4             March 31, 2018
        Fletcher                       2             May 31, 2003
        Buick                          1             October 31, 2004
        Brushy Creek                   2             May 31, 2003
        West Fork                      1             January 31, 2003
        Sweetwater                     1             December 31, 2003
</Table>

         The Company's $50 million Senior Secured Notes are secured by a first
priority lien in the Sweetwater and West Fork mine and mill properties and the
Glover smelter property. These properties were acquired from Asarco
Incorporated's Missouri Lead Division (MLD) in September of 1998 (MLD
Acquisition).

ORE RESERVES

         The following table sets forth the mineable reserves, estimated by the
Company, as of October 31, 2001 for the Viburnum Trend mineral deposits and the
Higdon deposit, which is outside the Viburnum Trend.

                                            MINEABLE RESERVES
                                            AS OF OCTOBER 31, 2001

<Table>
<Caption>
                                                                     GRADE+
                                                         --------------------------------
                                              TONS        LEAD        ZINC        COPPER
                                         --------------   ----        ----        ------
                                         (IN THOUSANDS)
<S>                                          <C>          <C>         <C>          <C>
Proven .................................     11,956       7.90%       1.61%        .31%

Probable ...............................     37,568       5.20%       1.25%        .24%
                                             ------

      Total Proven and Probable ........     49,524       5.85%       1.35%        .25%
                                             ======
</Table>

+        The estimated average extraction recovery, of metals, after allowing
         for expected dilution for lead, zinc and copper are approximately 89%.
         These losses are included in the above reserve table. Estimated average
         metallurgical recoveries for lead, zinc and copper are 96.5%, 83.0% and
         50.0%, respectively. Metallurgical recovery losses have not been
         included in the above reserve table.

         The term "reserve" means that part of a mineral deposit which could be
economically and legally extracted or produced at the time of the reserve
determination. The term "proven (measured) reserves" means reserves for which:
1) quantity is computed from dimensions revealed in outcrops, trenches, workings
or drill holes; grade and/or quality are computed from the results of detailed
sampling and 2) the sites for inspection, sampling and measurement are spaced so
closely and the geologic character is so well defined that size, shape, depth
and mineral content of reserves are well-established. The term "probable
(indicated) reserves" means reserves for which quantity and grade and/or quality
are computed from information similar to that used for proven (measured)
reserves, but the sites for inspection, sampling, and measurement are farther
apart or are otherwise less adequately spaced. The degree of assurance, although
lower than that for proven (measured) reserves, is high enough to assume
continuity between points of observation.

PERUVIAN OPERATIONS

         La Oroya's operations are located in the central Peruvian Andes town of
La Oroya, approximately 110 miles from the Peruvian capital of Lima and at an
altitude of approximately 12,000 feet above sea level. The complex is linked to
port facilities by highway and railroad service. Most supply sources also have
rail service. The facilities, which the Company owns, consist of a copper
smelter, lead smelter, copper refinery, lead refinery, copper fabricating plant,
zinc refinery, precious metals refinery, antimony plant, arsenic plant, coke
plant, cadmium plant, maintenance shops and other support facilities. Current
production capacities of primary products are as follows:


                                       10
<Page>

<Table>
<Caption>
                PRODUCT                                     ANNUAL CAPACITY
                --------                                    ---------------
                <S>                                             <C>
                Copper (short tons)                              77,000
                Lead (short tons)                               132,000
                Zinc (short tons)                                86,000
                Silver (thousands of troy ounces)                35,000
                Gold Bullion (thousands of troy ounces)              93
</Table>


         The Cobriza mine is located approximately 250 miles southeast of Lima
in the district of San Pedro de Coris, Churcampa Province. Access to the site is
by improved dirt road through rugged terrain. Concentrates produced at the mine
are trucked 130 miles over dirt road to Huancayo and then an additional 70 miles
over paved road to the La Oroya smelter. Cobriza's mill has a capacity of 10,000
short tons per day and its current throughput is approximately 5,000 short tons
per day.

         Landholdings at Cobriza include approximately 2,600 acres of surface
ownership and approximately 128,000 acres of mining concessions. The current
mining operation is located on a portion of the area held. Economic
mineralization outside the existing mining area has not been confirmed. The
Company's estimates, which have not been audited, indicate mineable proven and
probable ore reserves of approximately 6.0 million short tons containing
approximately 1.25% copper

ITEM 3.  LEGAL PROCEEDINGS

         Doe Run is a defendant in twelve lawsuits alleging certain damages
from lead emissions stemming from the operations at the Herculaneum smelter.
The cases brought in the Circuit Court 23rd Judicial Circuit at Hillsboro,
Jefferson County, Missouri are: KARLA RICHARDSON ET AL. V. THE DOE RUN
RESOURCES CORP., ET AL, filed September 12, 1995; RONALD HEATH, ET AL. V. THE
DOE RUN RESOURCES CORP. ET AL., filed November 20, 1995; ANDREA MASSA, ET AL.
V. THE DOE RUN RESOURCES CORP., ET AL., filed December 8, 1995; GOVREAU, ET
AL. V. THE DOE RUN RESOURCES CORP., ET AL, filed February 1, 1999, CASEY II,
ET AL. V. THE DOE RUN RESOURCES CORP., ET AL., filed March 23, 2000, SWARTS,
ET AL. VS. LEADCO INVESTMENTS, INC. ET AL., FILED JUNE 14, 1996, WARDEN, ET
AL. VS. THE DOE RUN RESOURCES CORP. ET AL. filed September 21, 2001, and ENOS
GREEN V. THE DOE RUN RESOURCES CORP. ET AL., filed November 30, 1999. The
cases brought in the Circuit Court of the City of St. Louis are: MITCHELL,
ET. AL. V. FLUOR CORPORATION, ET AL., DOYLE, ET AL. VS. FLUOR CORPORATION, ET
AL., FIGGE, ET AL. VS. FLUOR CORPORATION ET AL., all filed July 9, 2001. The
Company has been named as a defendant in JARROD GROSS VS. THE DOE RUN
RESOURCES CORPORATION ET AL., but has not yet been served.

         The HEATH, SWARTS, DOYLE AND MITCHELL cases are class action lawsuits.
In the HEATH AND DOYLE cases, the plaintiffs seek to have certified a class of
property owners in a certain section of Herculaneum, alleging that property
values have been damaged due to the operations of the smelter. In the MITCHELL
case, plaintiffs seek to have certified a class of children who lived in
Herculaneum during a period of time when they were nine months to six years old
and children born to mothers who lived in Herculaneum during their pregnancies.
The remedy sought is medical monitoring for the class. In the SWARTS case,
plaintiffs seek to have certified a class of employees of a certain contractor
who worked at the Herculaneum smelter.

         The RICHARDSON, MASSA, GOVREAU, CASEY, FIGGE, AND WARDEN cases are
personal injury actions by thirty four individuals who allege damages from the
effects of lead poisoning they attribute to operations at the smelter and seek
punitive damages. The Company is vigorously defending all of these claims.

         In the ENOS GREEN case, the plaintiff is seeking damages for the
alleged disposal of lead contaminated fill material on plaintiff"s property.

         The Company signed a voluntary Administrative Order of Consent (AOC) in
September 2000 to study and address issues related to the operation of the
primary smelter in Herculaneum. In December 2000 the Company entered into a
consent judgment with the Missouri Department of Natural Resources and the
Missouri Air Conservation Commission. The U.S. EPA and the Missouri DNR signed
the AOC with an effective date of May 29, 2001. The Company signed a new AOC,
with the U.S. EPA on December 21, 2001, which accelerates certain requirements
of the May 29 AOC and requires certain additional cleanup activities. On April
26, 2002, the Company signed a Settlement Agreement with the State of Missouri
whereby it agreed to offer buyouts to approximately 160 homeowners in an area
close to the smelter. See "Item 8. Financial Statements and Supplementary Data",
Note 16 to the Company's Consolidated Financial Statements. On April 11, 2002, a
report in the media contained allegations by former employees of improper
disposal of hazardous materials on the Herculaneum smelter site. The


                                       11
<Page>

Company does not believe that there has been any violation of law and is
cooperating with State and federal agencies in their investigations into the
allegations.

         Doe Run is a defendant in five lawsuits alleging certain damages from
past mining operations in St. Francois County. On July 9, 2001 DOWD, ET AL. V.
FLUOR CORPORATION, ET AL. was filed in the Circuit Court of the City of St.
Louis, Missouri. The case alleges injury to two children living in St. Francois
County as a result of emissions from tailings, chat piles and other wastes from
past mining operations. On December 13, 2001 Doe Run was served regarding LEE
ANN STOTLER AND KEELY STOTLER V. FLUOR CORPORATION, ET AL. This case, which was
filed in the Circuit Court of the City of St. Louis, Missouri, seeks a class
action for property damages caused by tailings and related operations. On
December 14, 2001 Doe Run was served regarding LAYNE STOTLER V. FLUOR
CORPORATION, ET AL. This case, which was filed in the Circuit Court of the City
of St. Louis, Missouri, seeks a class action for medical monitoring for minors
who lived, went to school, or went to day care in Bonne Terre, St. Francois
County, Missouri or whose mothers lived in Bonne Terre when they were pregnant.
The action alleges damages caused by tailings and related operations. On April
29, 2002, Doe Run was served regarding CHARLES MULLINS V. THE DOE RUN RESOURCES
CORPORATION and CHARLES MULLINS II V. THE DOE RUN RESOURCES CORPORATION, filed
in the Circuit Court of the City of St. Louis, Missouri, class actions for
property damage and medical monitoring, respectively, concerning alleged
damages caused by chat, tailings, and related operations in six areas in
St. Francois County, Missouri.

         The Company, with several other defendants, was named in several
lawsuits alleging personal injuries as a result of lead poisoning from exposure
to lead paint and tetraethyl lead dust. These suits which have not yet been
served on the Company include: HALL V. LEAD INDUSTRIES ASSOCIATION, INC. ET AL.,
HART V. LEAD INDUSTRIES ASSOCIATION, INC. ET AL., WILLIAMS V. LEAD INDUSTRIES
ASSOCIATION, INC. ET AL. AND RANDLE V. LEAD INDUSTRIES ASSOCIATION, INC. ET AL.
The suits were all filed in the Circuit Court for Baltimore City, Maryland and
seek damages, including punitive damages.

         On January 26, 2000, CITY OF ST. LOUIS V. LEAD INDUSTRIES ASSOCIATION,
INC. ET AL was filed in the Circuit Court of the City of St. Louis, Missouri.
The Company and several other parties were named defendants in the suit for
costs allegedly incurred and to be incurred by the plaintiff for the care of
lead-poisoned persons, education programs for children injured by exposure to
lead and the abatement of lead hazards purportedly created by the defendants in
the City of St. Louis. The complaint alleges that the defendants made material
misrepresentations and intentional omissions of material facts to the City
and/or its residents regarding the nature of lead and lead products, such as
paint. The suit also seeks punitive damages. Discovery has yet to be initiated.

         On November 1, 2000 one hundred and seven individual cases were
filed in the Circuit Court of the City of St. Louis, Missouri, that list the
Company among the defendants, alleging that the employees or ex-employees of
Burlington Northern and Santa Fe Railway Co. who filed the cases were exposed
to lead from the hauling of lead concentrates by the railroad. On April 8,
2002, the Company was served with an additional suit bringing this total to
108 cases. The Company was served with nine additional cases on May 14, 2002
for a total of one hundred and seventeen cases.

         HARRIS V. TERMINAL RAIL ROAD ASSN., ET AL. was filed in the Circuit
Court of the City of St. Louis, Missouri and the Company was served on
November 9, 2001. This is an individual action for damages by an ex-employee
of Terminal Rail Road alleging exposure to lead from hauling concentrates,
similar to the one hundred and seventeen cases discussed above.

         HERD V. ASARCO, INC. ET AL., REEVES V. ASARCO, INC., ET AL., and CARR
V. ASARCO, INC., ET AL., each alleging injury to a child living in Picher,
Oklahoma as a result of lead contamination from chat piles and/or tailings, were
filed in the District Court of Ottawa County, Oklahoma on November 5, 2001,
January 10, 2002, and February 5, 2002, respectively. HERD V. ASARCO, INC. ET
AL. after originally being filed in state court, has been moved to the U.S.
District Court for the Northern District of Oklahoma and the U.S. Department of
Interior has been joined as a third party defendant.

         CRAWFORD V. FABRICATED PRODUCTS, INC. ET AL, filed on February 28,
2002, is a wrongful death action regarding a former employee who died in an
accident at the Company's FPI facility in Vancouver, Washington. The suit was
filed in the Superior Court of Washington for Clark County.

         On January 15, 2002, arbitration proceedings were also initiated
against the Company's Fabricated Products subsidiary by the ITHACA
CORPORATION, the former owners of the Seafab Metals Corporation. The former
owners are claiming additional monies are owed to them under the Asset
Purchase Agreement. The Company disputes this claim and has filed a
counterclaim claiming overpayment.


                                       12
<Page>

         TARACORP INDUSTRIES, INC. V. FABRICATED PRODUCTS, INC., filed on March
21, 2000, alleges the Company's Fabricated Products subsidiary sold impure lead
to the plaintiff, who used the lead to manufacture a product commercially used
in radiation shielding aprons. This is a suit for breech of contract and implied
warranty.

         The Company is unable at this time to estimate the expected outcome and
the final costs of any of these cases. Therefore, there can be no assurance that
these cases would not have a material adverse effect on the results of
operations, financial condition and liquidity of Doe Run.

         SARA DIXON, ET AL. V. THE DOE RUN RESOURCES CORP, filed August 25,
1995, was withdrawn without prejudice by the plaintiffs on July 9, 2001.
COPPEDGE V. EAGLE-PICHER INDUSTRIES, INC., ET AL., filed January 23, 2001, was
withdrawn without prejudice by plaintiffs on November 14, 2001. CHARLES MULLINS
II, ET AL. V. THE DOE RUN RESOURCES CORP, filed May 21,1999, was withdrawn
without prejudice by the plaintiffs on February 8, 2002. YOUNG, ET AL. V. THE
LEAD INDUSTRIES ASSOCIATION, INC. and SMITH, ET AL. V. THE LEAD INDUSTRIES
ASSOCIATION, INC., both filed September 21, 1999, were dismissed with prejudice
on December 7, 2001 and February 21, 2002, respectively.

         All existing litigation involving La Oroya at the time of the
acquisition was retained by Centromin. In Peru, the Company is involved in
various claims and lawsuits incidental to the ordinary course of its business
that are not expected to have a material adverse effect on the business,
financial condition and results of operations of the Company.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         No matters were submitted to a vote of security holders during the year
ended October 31, 2001.

PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

         All of the Company's issued and outstanding common equity, 1000 shares
of common stock, $.10 par value, are owned by a single stockholder, DR
Acquisition Corp., a wholly-owned subsidiary of Renco, which Mr. Rennert
controls. There is no established public trading market for these shares.


                                       13
<Page>

ITEM 6.  SELECTED FINANCIAL DATA

                 SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA

The following tables set forth historical consolidated financial data of The Doe
Run Resources Corporation and subsidiaries for the five fiscal years ended
October 31, 2001, which have been derived from the Company's audited
consolidated financial statements. It is important that the selected historical
consolidated financial data presented below be read in conjunction with
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the Company's audited financial statements and the accompanying
notes included elsewhere in this document.

<Table>
<Caption>
                                                                  YEAR ENDED OCTOBER 31,
                                           ------------------------------------------------------------------
                                              1997          1998          1999          2000          2001
                                           ----------    ----------    ----------    ----------    ----------
                                                                 (DOLLARS IN THOUSANDS)
<S>                                        <C>           <C>           <C>           <C>           <C>
STATEMENT OF OPERATIONS DATA:
Net sales ..............................   $  280,467    $  710,921    $  800,274    $  815,042    $  737,482
Cost of sales ..........................      234,351       599,522       686,027       723,178       665,279
Depletion, depreciation and
   amortization ........................       14,718        24,540        31,400        30,520        30,461
Selling, general and
   administrative expenses .............       10,959        29,370        30,842        32,142        29,726
Exploration expense ....................        2,705         4,312         3,919         4,337         1,602
Unrealized gain on derivative
   financial instruments ...............           --            --            --            --        (1,764)
                                           ----------    ----------    ----------    ----------    ----------
Operating income .......................       17,734        53,177        48,086        24,865        12,178
Interest expense .......................       13,740        40,659        59,417        61,595        59,992
Interest income ........................           21         9,586        14,755        14,433        14,870
Other income (expense) .................          (37)          775        (1,346)          935        (1,676)
                                           ----------    ----------    ----------    ----------    ----------
Income (loss) before income tax
   expense, extraordinary item
   and cumulative change in
   accounting principle ................        3,978        22,879         2,078       (21,362)      (34,620)
Income tax expense .....................        4,331        11,398         3,488         1,753         8,226
                                           ----------    ----------    ----------    ----------    ----------
Income (loss) before
   extraordinary item and
   cumulative change in
   accounting principle ................         (353)       11,481        (1,410)      (23,115)      (42,846)
Extraordinary item net of income
   tax benefit .........................       (1,062)       (4,388)           --            --          (159)
                                           ----------    ----------    ----------    ----------    ----------
Cumulative effect of change in
   accounting principle net of
   income tax benefit ..................           --            --            --            --        (3,774)
                                           ----------    ----------    ----------    ----------    ----------
Net income (loss) ......................   $   (1,415)   $    7,093    $   (1,410)   $  (23,115)   $  (46,779)
                                           ==========    ==========    ==========    ==========    ==========
</Table>


<Table>
<Caption>
                                                                        AS OF OCTOBER 31,
                                                ---------------------------------------------------------------
                                                   1997         1998         1999         2000          2001
                                                ----------   ----------   ----------   ----------    ----------
                                                                     (DOLLARS IN THOUSANDS)
BALANCE SHEET DATA:
<S>                                             <C>          <C>          <C>          <C>           <C>
Cash ........................................   $    8,943   $    4,646   $    9,886   $    8,295    $    6,263
Working capital .............................       64,306      139,892      141,896      127,844        33,027
Property, plant and equipment, net ..........      207,630      264,047      269,042      275,514       264,300
Total assets ................................      384,440      663,639      664,717      664,945       603,115

Total debt (including current portion)
                                                   234,740      478,302      485,868      513,510       495,981
 Shareholder's equity .......................       14,174       18,578       16,621       (6,914)      (65,801)
</Table>


                                       14
<Page>

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         The following discussion and analysis includes both the U.S. operations
and the Peruvian operations of the Company and should be read in conjunction
with the consolidated financial statements of the Company and the notes thereto,
and other financial information included herein.

LIQUIDITY

         The Company's primary available sources of liquidity are cash provided
by operating activities and two revolving credit facilities. In the U.S., the
Company has available a revolving credit facility (the Doe Run Revolving Credit
Facility) that provides for advances by the lender to a maximum of $75.0 million
less outstanding letters of credit, based on specific percentages of eligible
receivables and inventories. In Peru, the Company has available a revolving
credit facility (the Doe Run Peru Revolving Credit Facility) that provides for
advances by the lender to a maximum of $40.0 million, less outstanding letters
of credit, guarantee letters and customs bonds based upon specific percentages
of eligible receivables and inventories. These credit facilities are discussed
in more detail in the "Liquidity and Capital Resources" section below.

         On January 4, 2002, the Company entered into an amendment to the Loan
and Security Agreement governing the Doe Run Revolving Credit Facility, under
which the lender agreed to make supplemental loans, in addition to those
originally provided for under the facility, of up to $5.0 million. Renco
provided the lender with $5.0 million of cash collateral and a limited guarantee
of $2.0 million. The amendment also waived, through February 27, 2002, existing
defaults resulting from the Company's failure to maintain consolidated net worth
and EBITDA for U.S. operations, as required by the agreements governing the Doe
Run Revolving Credit Facility. On February 28, 2002, the Company's lender issued
a letter that extended the waiver of these existing defaults through March 14,
2002.

         Net unused availability at October 31, 2001 was $1.8 million under the
Doe Run Revolving Credit Facility and $9.7 million under the Doe Run Peru
Revolving Credit Facility. In addition to availability under the credit
facilities, the Company had $6.3 million of cash at October 31, 2001. At
April 30, 2002 availability was $7.4 million under the Doe Run Revolving Credit
Facility and $0.1 million under the Doe Run Peru Revolving Credit Facility, and
the Company's cash balance was $2.3 million.

         Low metal prices over the past four years, coupled with the Company's
substantial debt service requirements, have severely reduced the Company's
liquidity. In fiscal 2001, cash from operating activities was sufficient to meet
the Company's capital and debt service requirements only because of a
significant reduction in working capital. In addition to a $23.7 million
reduction of taxes receivable in Peru, the Company reduced trade receivables by
$4.0 million and reduced inventories by $11.3 during 2001. The reductions in
receivables and inventory coupled with increases in borrowings on revolving
credit lines have reduced availability under revolving credit facilities to the
minimal levels discussed above. Further reductions of working capital of this
magnitude are very unlikely.

       Due to the non-payment of interest due March 15, 2002 on the 11 1/4%
Senior Notes due 2005, Floating Interest Rate Senior Notes due 2003 and 11 1/4%
Senior Secured Notes due 2005 (collectively, the Notes), and the expiration of
the grace period during which the Company could cure the non-payment, and the
violation of other financial covenants, the Company is in default of its
covenants under the Notes indentures and its revolving credit facilities. In an
event of default, the lenders have the right to accelerate the payment of any
unpaid principal and interest balances. No actions have been taken by the
lenders to accelerate the payment of outstanding debt balances. The Company is
in restructuring negotiations as described below and in negotiations with the
lenders of its revolving credit facilities to execute amended revolving credit
facilities.

       On April 15, 2002, the Company announced that it had reached an agreement
in principle with Renco and Regiment Capital Advisors, LLC (Regiment) for Renco
and Regiment to provide the Company with significant capital for the purpose of
restructuring its existing debt. Pursuant to the agreement in principle, Renco
will purchase $20 million of the Company's preferred stock and Regiment, a
significant holder of the Notes, will commit to lend the Company $35 million and
will offer other holders of Notes the opportunity to participate in making such
loan.


                                       15
<Page>

       Under the proposed restructuring transaction, the Company would make a
cash tender offer for a portion of the Notes and an exchange offer for the
balance of the Notes. The $55 million in proceeds of the Renco investment and
the loan, together with borrowings under its revolving credit facility would be
used to finance the cash tender offer, to pay the accrued interest as of March
15, 2002 on the Notes exchanged in the exchange offer and to pay certain costs
of the transactions. If successful, the cash tender offer and the exchange
offer would significantly reduce the Company's future debt service and provide
sufficient liquidity to continue to operate all its facilities at present
levels and will not adversely affect the Company's trade creditors.

       The non-binding agreement in principle is subject to agreement on the
terms of definitive documentation and the successful completion of the
transactions is subject to several conditions, including, among others, the
participation by holders of at least 90% of the aggregate principal amount of
each class of Notes in the cash tender offer and/or the exchange offer and the
satisfactory modification of Doe Run's United States and Peruvian revolving
credit facilities.

CONSOLIDATED FINANCIAL POSITION

         During the fiscal year ended October 31, 2001 (2001), net cash provided
by operating activities was $37.3 million, proceeds from asset sales were $5.0
million and capital expenditures were $24.5 million. As a result, total debt,
mainly revolving loans and short-term borrowings, was reduced by $17.5 million.
The Company's working capital declined $94.8 million in 2001 due primarily to
the reclassification of revolving loan balances of $58.4 million to current
maturities of long-term debt, the reduction of Peruvian prepaid income tax and
value added tax balances due to the Company of approximately $25.4 million and a
$11.3 million reduction in inventories.

RESULTS OF OPERATIONS

         FISCAL 2001 COMPARED TO FISCAL 2000

         The Company reported a net loss of $46.8 million for 2001 compared to a
net loss of $23.1 million for the twelve months ended October 31, 2000 (2000).
The Company's U.S. operations reported a net loss of $48.4 million (excluding
intercompany fees and eliminations of $9.3 million) for 2001 compared to a net
loss of $36.2 million (excluding intercompany fee revenue of $18.9 million) for
2000, reflecting the effects of lower realized prices for zinc concentrates,
lower premiums for lead metal, severance costs and increased energy costs,
partially offset by improved LME lead prices and lower production costs.

         Peruvian operations generated net income of $1.6 million for 2001
(excluding intercompany fees of $9.3 million) compared to net income of $13.1
million (excluding intercompany fees and eliminations of $18.9 million) for
2000. This decrease in net income is primarily due to the effects of lower
realized prices for copper, zinc and silver and lower treatment charges,
partially offset by lower production costs and lower selling and administrative,
interest and other expenses. An income tax benefit in 2001 also helped to
mitigate the lower realized prices and treatment charges.

         The Company's results for the year ended October 31, 2001 reflect
declines in the market prices of copper, zinc and silver and an increase in the
price of lead compared to 2000. The following table sets forth average London
Metal Exchange (LME) prices for lead, copper and zinc and the average London
Bullion Market Association (LBMA) price for silver for the periods indicated:

<Table>
<Caption>
                                           Year Ended October 31,
                                ------------------------------------------
                                    2001           2000          1999
                                ------------   ------------   ------------
<S>                             <C>            <C>            <C>
AVERAGE PRICES
 Lead ($/short ton)             $     428.80   $     414.00   $     458.40
 Copper ($/short ton)               1,485.20       1,634.40       1,394.00
 Zinc ($/short ton)                   846.40       1,039.00         946.80
 Silver ($/troy ounce)                  4.44           5.03           5.18
</Table>


                                       16
<Page>

         Low metal prices, primarily lead and zinc, contributed to the operating
loss generated by the Company's U.S. operations in 2001. The Company has
implemented changes to its operations in an effort to mitigate the impact of low
metal prices. These actions, which are described below, are expected to reduce
certain costs, and achieve certain operating efficiencies resulting in lower
production cost and improved margins. However, prices sustained at these levels,
or decreasing further, are likely to result in the continuation of operating
losses for the Company's U.S. operations.

        The following table sets forth the Company's production statistics for
the periods indicated:

<Table>
<Caption>
                                                      Year Ended October 31,
                                                  -----------------------------
                                                   2001       2000       1999
                                                  -------    -------    -------
<S>                                               <C>        <C>        <C>
U.S. OPERATIONS
  Lead metal - primary (short tons)               329,594    382,474    384,441
  Lead metal - secondary (short tons)             157,562    144,087    117,718
  Lead concentrates (metal content, short tons)   318,744    319,184    381,769
  Ore Grade                                          6.17%      5.77%      5.66%

PERUVIAN OPERATIONS
  Refined copper (short tons)                      71,419     72,616     74,314
  Refined lead (short tons)                       133,144    130,963    120,129
  Refined zinc (short tons)                        87,303     86,097     80,940
  Refined silver (thousands of troy ounces)        34,525     34,696     32,639
  Refined gold (thousands of troy ounces)              85         93         71
  Copper concentrates (metal content, short tons)  17,906     19,523     23,934
  Ore Grade (copper content)                         1.07%      0.91%      0.97%
</Table>

         In March 2001, in response to continued poor lead metal market
conditions, the Company announced production changes at its U.S. primary lead
operations (the Revised Operating Plan). The key elements of this plan are that
the Company's Herculaneum primary smelter reduced its annual refined metal
production rate by 80,000 tons from 250,000 to 170,000 tons by reducing blast
furnace and sinter plant operating time. The Company eliminated purchases of
lead concentrates and reduced production of concentrates at its southeast
Missouri mining operations. In May, the Company placed its No. 29 mine on care
and maintenance and plans to mine out its No. 28 mine during the second half of
fiscal 2002. The Company also reduced total concentrate production at its other
five mines. These production changes resulted in a workforce reduction of
approximately 200 employees, which was completed in early May. The changes were
made in an effort to allow the Company to compete more effectively in the global
market and improve overall financial performance. The change in operating plan
was made to reduce production costs and enhance product mix as the smelters
focus on producing specialty and alloy products. In an additional step, the
Company announced a management restructuring of its domestic operations in
September 2001, which resulted in an additional production decrease at
Herculaneum, to 155,000 tons annually, and another workforce reduction, of
approximately 80 employees, involving both terminations and an early retirement
program. This reduction was implemented in the first quarter of 2002.

         The cost of severance benefits and outplacement services provided to
certain employees of approximately $1.1 million was recorded during fiscal 2001
of which approximately $0.5 million was paid in 2001 and $0.6 million will be
paid in 2002. In addition, the Company recorded a charge of $2.6 million to
adjust its pension and other post retirement benefit liabilities. The cost of
these benefits will be paid as part of the ongoing funding of these programs.
The estimated cost of closing the No. 28 mine, the Viburnum mill and related
surface structures and tailings areas of approximately $0.6 million was
previously accrued during the operating life of the mine. These closure
activities will be performed as personnel and funds are available.

         Primarily due to changes associated with the Revised Operating Plan,
the Company's U.S. mining operations reduced ore production during 2001 in an
effort to increase grade and decrease unit production costs. Compared to 2000,
ore production was scaled back approximately 309,000 tons or 7% while lead ore
grade improved by 7%. The improvement in grade offset almost all of the impact
of the reduction in ore tonnage, as production of lead metal contained in
concentrates was approximately the same in fiscal years 2001 and 2000.


                                       17
<Page>

         Primary lead metal production decreased 14% in 2001 period, compared to
the prior year, due to partial implementation of the lower production rate at
the Company's Herculaneum smelter and to production problems at both primary
smelters during the year.

         At Herculaneum, during 2001 production was reduced as a result of the
partial implementation of the Revised Operating Plan. In addition, poor
performance of the backup furnace during scheduled maintenance, multiple cooling
system failures due to poor water quality, and poor coke quality caused outages
and caused the furnaces to run poorly for much of the first nine months of the
year. As a result, production was approximately 47,500 tons, or 19% lower in
2001, compared to 2000. The scheduled maintenance was completed during the
second quarter and the water quality and coke problems have been resolved.
Herculaneum's furnaces are currently operating at the planned 155,000 ton annual
production rate.

         The Company's Glover primary smelter was forced to shut down several
times during the year due to mechanical failures of cooling system components,
the failure of a blast furnace baghouse fan motor and bearing problems with a
process baghouse fan. In addition, Glover was faced with the same coke quality
problem as Herculaneum. As a result, production at Glover was down about 4% or
5,400 tons for 2001, compared to the prior year. Repairs to the cooling system
and the blast furnace baghouse fan are complete and coke problems have been
resolved. Installation of redesigned bearings for the process baghouse was
completed during November 2001. The smelter is currently operating at its
planned production rate.

         The Company's Buick secondary smelter installed a larger burner on the
reverberatory furnace and modifications were made to the feed delivery system
during the first quarter of 2001 in order to increase capacity. In addition,
operating procedures were changed in the plant's battery breaker, which
eliminated bottlenecks and improved throughput by 15%, making more feed
available to the furnaces. During the second quarter of 2001 Buick replaced its
blast furnace. The material feed and air control systems on the new blast
furnace were redesigned, improving output by approximately 25%. The results of
all of these improvements are reflected in Buick's production volume, which
improved approximately 9% for 2001, compared to 2000, in spite of downtime
associated with the blast furnace replacement during the second quarter.

         In Peru, at the La Oroya metallurgical complex, production of refined
lead and zinc increased 2% and 1%, respectively, in 2001, compared to the prior
year. Refined copper production was down 2% for 2001 primarily due to a ductwork
failure in the copper circuit during the third quarter. Repairs were completed
in October and the copper circuit is currently producing at planned levels.
Refined silver and gold production were both lower in 2001 primarily due to
lower metal content in the concentrate feed used.

         In May 2000, the Company implemented changes in operations at its
Cobriza copper mining operation intended to improve ore grade and reduce unit
production cost. The changes involved a reduction in annualized ore production
of approximately 31%. During the second quarter of 2001, a new ore zone was
identified near the existing workings in the Cobriza mine. The Company is
currently developing this area and drilling to determine whether measurable ore
reserves can be identified. During 2001 approximately 3% of Cobriza's ore
production, or 54,900 tons with a grade of approximately 1.6% were extracted
from the new ore zone. At this time it is not known whether, or for how long,
the area can continue to yield ore of similar tonnages and grades. The
combination of the operational changes and production from the new ore zone
resulted in an increase in ore grade of 18% in 2001 compared to 2000. Production
of metal contained in concentrates was 9% lower due to the reduction in
annualized ore production, partially offset by the improvement in grade.
Efficiency improved significantly, as cost per ton of ore was lower by 6% and
cost per ton of metal in concentrates was down 20% in 2001, compared to 2000.

         The following tables set forth the separate operating results, sales
volumes and realized prices for the Company's U. S. and Peruvian operations
(excluding intercompany transactions) for the periods indicated:


                                       18
<Page>

                           RESULTS OF U.S. OPERATIONS

<Table>
<Caption>
                                                                   Year Ended October 31,
                                                             -----------------------------------
                                                                2001        2000         1999
                                                             ---------    ---------    ---------
<S>                                                          <C>          <C>          <C>
Net sales (a)                                                $ 303,146    $ 328,967    $ 342,840

Costs and expenses:
  Cost of sales (a)                                            280,808      296,418      295,005
  Depletion, depreciation and amortization                      20,275       20,760       23,557
  Selling, general and administrative                           18,351       17,854       17,450
  Exploration                                                    1,602        2,851        3,919
  Unrealized gain on derivative financial instruments             (566)           -            -
                                                             ---------    ---------    ---------
    Total costs and expenses                                   320,470      337,883      339,931
                                                             ---------    ---------    ---------

    Income (loss) from operations                              (17,324)      (8,916)       2,909

Other income (expense):
  Interest expense                                             (41,994)     (42,037)     (40,786)
  Interest income                                               14,214       14,105       14,119
  Other, net                                                      (437)       1,540         (184)
                                                             ---------    ---------    ---------
                                                               (28,217)     (26,392)     (26,851)
                                                             ---------    ---------    ---------

  Loss before income tax expense, extraordinary
    item and cumulative effect of change in
    accounting principle                                       (45,541)     (35,308)     (23,942)
Income tax expense                                                  59          869        7,239
                                                             ---------    ---------    ---------
  Loss before extraordinary item and cumulative
    effect of change in accounting principle                   (45,600)     (36,177)     (31,181)
Extraordinary item related to retirement of long-term debt        (159)           -            -
Cumulative effect of change in accounting principle             (2,649)           -            -
                                                             ---------    ---------    ---------
  Net loss                                                   $ (48,408)   $ (36,177)   $ (31,181)
                                                             =========    =========    =========

  (a) Intercompany sales and fees that are eliminated in the consolidated
      results of the Company and have been excluded from the results presented
      above are as follows:

        Net sales and fees                                   $  10,210    $  18,942   $   17,690
        Cost of sales                                              888            -            -

SALES VOLUMES (SHORT TONS)
             Lead metal                                        416,249      443,374      450,782
             Zinc concentrates                                  93,253      100,778       99,419
             Copper concentrates                                 7,730       12,769       15,883

REALIZED PRICES ($/TON)(b)
             Lead metal                                       $ 523.42    $  522.13   $   551.97
             Zinc concentrates                                  253.65       351.78       315.56
             Copper concentrates                                142.56       285.38       221.05
</Table>

  b)  Net realized prices for metals, concentrates, and by-products include the
      effects of changes in: 1) premiums received, including charges for special
      alloys and shapes, 2) adjustments to provisionally priced sales, 3)
      treatment and refining charges and 4) net hedging activity.


                                       19
<Page>

                         RESULTS OF PERUVIAN OPERATIONS

<Table>
<Caption>
                                                                    Year Ended October 31,
                                                              -----------------------------------
                                                                2001         2000         1999
                                                              ---------    ---------    ---------
<S>                                                               <C>          <C>          <C>
    Net sales (a)                                                 $ 434,336    $ 486,075    $ 457,434

    Costs and expenses:
      Cost of sales (a)                                             384,471      426,760      391,022
      Depletion, depreciation and amortization                       10,186        9,760        7,843
      Selling, general and administrative (a)                        11,375       14,288       13,392
      Exploration                                                         -        1,486            -
      Unrealized gain on derivative financial instruments            (1,198)           -            -
                                                                  ---------    ---------    ---------
        Total costs and expenses                                    404,834      452,294      412,257
                                                                  ---------    ---------    ---------

        Income from operations                                       29,502       33,781       45,177

    Other income (expense):
      Interest expense                                              (17,998)     (19,558)     (18,631)
      Interest income                                                   656          328          636
      Other, net                                                     (1,239)        (605)      (1,162)
                                                                  ---------    ---------    ---------
                                                                    (18,581)     (19,835)     (19,157)
                                                                  ---------    ---------    ---------

        Income before income tax expense (benefit) and
           cumulative effect of change in accounting principle       10,921       13,946       26,020
    Income tax expense (benefit)                                      8,167          884       (3,751)
                                                                  ---------    ---------    ---------
        Income before cumulative effect of change
            in accounting principle                                   2,754       13,062       29,771
        Cumulative effect of change  in accounting principle         (1,125)           -            -
                                                                  ---------    ---------    ---------
        Net income                                                $   1,629    $  13,062    $  29,771
                                                                  =========    =========    =========

     (a) Intercompany sales and fees that are eliminated in the consolidated
         results of the Company and have been excluded from the results
         presented above are as follows:

     Net sales                                                    $       -    $   1,573    $   2,898
     Cost of sales                                                        -        1,573        3,013
     Selling, general and administrative expense                      9,322       18,942       17,690

SALES VOLUMES
        Copper (short tons)                                          71,445       72,658       74,352
        Lead (short tons)                                           133,241      127,702      115,730
        Zinc (short tons)                                            87,664       85,325       81,743
        Silver (thousands of troy ounces)                            34,519       34,574       32,722
        Gold (thousands of troy ounces)                                  85           93           71

REALIZED PRICES (B)
        Copper ($/ton)                                            $1,494.47    $1,630.26    $1,375.02
        Lead ($/ton)                                                 444.04       417.08       473.12
        Zinc ($/ton)                                                 867.39     1,061.40       953.82
        Silver  ($/troy ounce)                                         4.46         5.05         5.20
        Gold  ($/troy ounce)                                         268.98       282.68       278.47
</Table>

     b) Net realized prices for metals, concentrates, and by-products include
        the effects of changes in: 1) premiums received, including charges for
        special alloys and shapes, 2) adjustments to provisionally priced sales,
        3) treatment and refining charges and 4) net hedging activity.


                                       20
<Page>

         Results of operations for the years ended October 31, 2001, 2000, and
1999 include the results of the Company's U.S. and Peruvian operations. In order
to provide a more meaningful analysis, the results of operations attributable to
Peruvian operations will be noted and discussed separately under "Results of
Peruvian Operations."

        NET SALES for 2001 were $737.4 million compared to $815.0 million for
2000. A decrease of $51.7 million is attributable to Peruvian operations. U.S.
net sales decreased $25.8 million in 2001, compared to 2000, primarily due to
lower volume of lead metal, and lower realized prices for zinc concentrates,
partially offset by an increase in purchased zinc sales and increased toll
volume. Due primarily to partial implementation of the Revised Operating Plan,
discussed previously, lead metal sales volume was off 27,100 tons or 6% in 2001,
compared to the prior year, accounting for a $14.2 million reduction in net
sales. As discussed in "Overview -- U.S. Operations" the LME average lead price
improved approximately 4% during 2001, but premiums were lower. The net impact
is that realized prices for lead metal were marginally higher in 2001, compared
to 2000. Zinc concentrate net sales were $11.8 million lower in 2001, compared
to 2000, primarily due to a 19% decline in the LME average zinc price and lower
sales volume associated with the production changes discussed previously.
By-product sales were $3.0 million lower in 2001 primarily due to a reduction of
silver by-product produced by Herculanuem. Copper concentrate net sales
decreased $2.5 million in 2001 due to lower realized prices and lower volume.
These changes were partially offset by increases in purchased zinc metal sales
and toll lead volumes, which added $6.2 million to net sales.

         COST OF SALES in 2001 was $665.3 million compared to $723.2 million in
2000. Of this decrease, $42.3 million is attributable to Peruvian operations.
U.S. cost of sales in 2001 was $15.6 million less than 2000. Volume changes,
primarily lower lead metal, zinc concentrate and copper concentrate sales
volumes reduced cost of sales by $14.0 million. Production costs for 2001
reflect cost reductions resulting from partial implementation of the Revised
Operating Plan, including the impact of improved ore grade. During 2001, the
Company recognized an adjustment of property tax expense at the Herculaneum
smelter resulting from the settlement of a multi-year property tax dispute,
which reduced cost of sales $1.2 million. As a result, lead metal unit
production costs for 2001 were down approximately 1%, compared to 2000, which
reduced cost of sales $1.3 million. This was accomplished despite the impacts of
reduced production volumes associated with the Revised Operating Plan and the
primary smelter problems, discussed earlier, and a significant increase in
energy costs. Energy costs for 2001 were $2.8 million higher than 2000, due to
price increases primarily for natural gas and propane, which increased
approximately 66% and 16%, respectively. During the last quarter of 2001,
natural gas and propane prices moderated to the point that they were lower than
the average prices for 2000.

         SELLING, GENERAL AND ADMINISTRATIVE expenses decreased by $2.4 million
in 2001, compared to 2000. Of this decrease, $2.9 million is attributable to
Peruvian operations. The increase in selling, general and administrative
expenses for U.S. operations of $0.5 million for 2001 is primarily due to the
$2.6 million charge related to the workforce reductions, discussed previously,
partially offset by reductions in several other expense categories, including
legal fees, professional fees, association dues, travel costs. Legal fees were
down approximately $0.6 million for the 2001 period, compared to the prior year,
primarily due to reduced activity on a case that was being prepared for trial in
2000. The other expense reductions are primarily the result of continuing
efforts to reduce expenses in light of current economic conditions.

         EXPLORATION expense decreased $2.7 million for 2001, compared to the
prior year. A decrease of $1.5 million is attributable to Peruvian operations.
The reductions in the U.S. are attributable to the suspension of all drilling
and fieldwork on the Company's Missouri and South African exploration properties
in an effort to conserve cash.

         UNREALIZED GAIN ON DERIVATIVES relates to the change in fair market
value of derivative financial instruments pursuant to FAS 133. For 2001 the
unrealized gain on derivatives was $1.8 million, of which $1.2 million was
attributable to Peruvian operations. Gains of $0.6 million in the U.S. resulted
primarily from the factors discussed above, partially offset by the effect of
falling zinc prices on purchased futures contracts at October 31, 2001.

          INCOME FROM OPERATIONS for 2001 was $12.2 million compared to $24.9
million for 2000. A decrease of $4.3 million is attributable to Peruvian
operations. In the U.S., the operating loss increased to $17.3 million in 2001
from $8.9 million in 2000 primarily due to the factors discussed above.

         OTHER, net expense was $1.7 million in 2001, compared to other net
income of $0.9 million in 2000. Of the $2.6 million difference, $0.6 million is
attributable to Peruvian operations. For U.S. operations, other net expense was
$0.4 million in 2001 compared to other net income of $1.5 million in 2000. The
change is primarily due to a


                                       21
<Page>

$0.7 million reduction of rental income on the helicopter used for Peruvian
operations, which was sold in the third quarter of 2001, and to a $1.1 million
write-off, during the fourth quarter, of two dross furnaces at the Herculanuem
smelter, which will no longer be used for production.

         INCOME TAX EXPENSE for 2001 reflects the provision for the Company's
Peruvian subsidiaries. As a result of the Company's tax status in the U.S., the
Company is not subject to federal and most state income taxes.

         CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE relates to the
adoption of FAS 133. See "Item 8. Financial Statements and Supplementary Data -
Note 1 to the Company's Consolidated Financial Statements" for a discussion of
FAS 133.

         FISCAL 2000 COMPARED TO FISCAL 1999

         NET SALES for 2000 were $815.0 million compared to $800.3 million for
1999. An increase of $28.6 million is attributable to Peruvian operations. U.S.
net sales for 2000 were $13.9 million less than the 1999 period primarily due to
lower lead metal prices and volume, partially offset by increased realized
prices for zinc concentrates. The average LME price for lead metal declined 10%
in 2000, compared to 1999. However, as a result of improved premiums, the
Company's net realized price was only 5% lower than the prior year, reducing net
sales by $13.2 million. Lead metal sales volume was 2% lower than the prior
year, reducing net sales by $4.1 million. Sales volume was adversely affected by
reduced automotive battery demand and increased competition from imported lead.
For 2000, automotive battery demand in the U.S. was down about 1%, compared to
1999, while imports of lead metal increased by approximately 80,000 tons or 40%.
Zinc concentrate sales were $4.1 million higher in 2000 compared to 1999,
primarily due to the increase in the LME zinc price.

         COST OF SALES for 2000 was $723.2 million compared to $686.0 million
for 1999. Of this increase, $35.7 million is attributable to Peruvian
operations. U.S. cost of sales for 2000 increased by $1.4 million compared to
1999. The unit production cost of primary lead metal increased by approximately
4%, compared to the prior year, accounting for an increase of $8.4 million in
cost of sales. Unit production costs for zinc and copper concentrates also
increased compared to the prior year. Primary production costs increased due to:
1) the impact of reduced mine production volume 2) repair costs and reduced
production volume associated with the major blast furnace repairs at Herculaneum
and repair of a failed and 3) costs related to increased production of lead
alloy products. The primary production cost increases were partially offset by
lower unit production costs at the Buick smelter, which reduced cost of sales by
$5.7 million, and lower lead metal sales volume.

         DEPLETION, DEPRECIATION AND AMORTIZATION for 2000 decreased by $0.9
million compared to 1999. An increase of $1.9 million is attributable to
Peruvian operations. The decrease in depletion, depreciation, and amortization
for U.S. operations of $2.8 million for 2000 was primarily attributable to a
significant number of assets with five-year lives that were fully depreciated in
March of 2000 and a reduction in depletion expense associated with lower mine
production rates and the shifting of production to areas with lower depletion
rates.

         EXPLORATION expense for 2000 increased $0.4 million compared to the
prior year. An increase $1.5 million is attributable to Peruvian operations. In
the U.S., exploration expense decreased by $1.1 million due to the completion of
underground test work on a Missouri property, which was in process during 1999.
This reduction was partially offset by increased costs associated with an
ongoing feasibility study on a South African property.

         INCOME FROM OPERATIONS for 2000 was $24.9 million compared to $48.1
million for 1999. A decrease of $11.4 million is attributable to Peruvian
operations. The remaining fluctuation is primarily due to the factors discussed
above.

         INTEREST EXPENSE for 2000 increased $2.2 million compared to 1999. An
increase of $1.0 million was attributable to Peruvian operations. The remaining
fluctuation is the result of higher average borrowings and a higher rate in 2000
on floating rate debt.

         OTHER, net income was $0.9 million in 2000, compared to other net
expense of $1.3 million in 1999. Of the $2.2 million difference, $0.6 million is
attributable to Peruvian operations. For U.S. operations, other net income was
$1.5 million in 2000 compared to other net expense of $0.2 million in 1999. The
change is primarily due to a full year of rental income on the helicopter
provided for Peruvian operations, compared to only four months of income in
1999.


                                       22
<Page>

         INCOME TAX EXPENSE for 2000 reflects the provision for the Company's
Peruvian subsidiaries of $884 and Peruvian taxes on intercompany fees earned by
the U.S. operations. See also "Item 1. Financial Statements--Note 2 to the
Company's Consolidated Financial Statements." As a result of a change in tax
status, the Company is not subject to federal and most state income taxes.


    RESULTS OF PERUVIAN OPERATIONS

         FISCAL 2001 COMPARED TO FISCAL 2000

         NET SALES for 2001 were $51.7 million less than 2000 due to lower
realized prices for copper, silver, zinc, and gold and lower sales volumes for
gold bullion and by products, partially offset by increased sales volumes for
lead and zinc and higher lead prices. Silver prices declined 12% in 2001,
compared to 2000, reducing net sales $20.4 million. The net realized price for
zinc was 18% lower in 2001, reducing net sales by $17.0 million. Lower prices
for copper, gold and by products decreased net sales $11.5 million. Lower sales
volumes of copper, silver, gold and by products reduced net sales another $11.3
million. These reductions were partially offset by higher realized prices for
lead metal, which increased net sales by $3.6 million, and increased sales
volumes of lead and zinc, which increased net sales $4.8 million.

         COST OF SALES for 2001 was $384.5 million, compared to $426.8 million
for 2000. Changes in unit production costs, which declined for all metals except
lead, accounted for a $39.1 million reduction in cost of sales in the 2001
quarter, compared to the 2000 quarter. Unit costs declined, primarily due to
lower feed costs, which reflected the impact of lower metal prices, partially
offset by lower treatment charges. In addition, production costs at the
Company's Cobriza copper mining operation were 20% lower in 2001, compared to
2000, due to improved grade and reduced operating costs resulting from the
operating changes implemented in May of 2000 as well as the new ore zone
identified during the second quarter of 2001. Conversion costs at La Oroya were
somewhat lower, primarily due to the Company's efforts at cost containment. The
volume changes discussed above reduced net sales $6.0 million.

         SELLING, GENERAL AND ADMINISTRATIVE expenses decreased by $2.9 million
for 2001, compared to the prior year, primarily due to reduced professional fees
and expenses associated with the Company's helicopter, which was sold during the
third quarter of 2001.

         EXPLORATION Expense decreased $1.5 million in 2001, compared to 2000,
as the current phase of exploration work done to further delineate reserves at
the Company's Cobriza mine was completed during 2000.

         UNREALIZED GAIN ON DERIVATIVES relates to the change in fair market
value of derivative financial instruments pursuant to FAS 133. Gains for 2001
resulted primarily from the effect of falling copper prices on sold futures
contracts.

         INCOME FROM OPERATIONS decreased $4.3 million in 2001, compared to
2000, due primarily to the factors discussed above.

         INTEREST EXPENSE decreased $1.6 million for 2001, compared to the prior
year, primarily due to lower revolver interest resulting from lower interest
rates, partially offset by higher average outstanding revolver balances.
Increased capitalized interest and lower outstanding balances on capital lease
obligations and short-term bank debt also contributed to the reduction in
interest expense.

         INTEREST INCOME increased $0.3 million in 2001, compared to the prior
year, primarily due to interest on income taxes due to the Company, which was
received during 2001.

         Other, net expense increased $0.6 million the 2001, compared to 2000,
primarily due to a reduction of miscellaneous sales from Cobriza and La Oroya,
offset by other miscellaneous income and expenses.

         INCOME TAXES increased $7.3 million in 2001, compared to 2000,
primarily due to a change in the valuation allowance reflecting management's
assessment regarding the future realization of deferred tax assets.

         CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE relates to the
adoption of FAS 133. See "Item 8. Financial Statements and Supplementary Data -
Note 1 to Doe Run Peru's Financial Statements" for a discussion of FAS 133.


                                       23
<Page>

         FISCAL 2000 COMPARED TO FISCAL 1999

         Net sales for 2000 were $486.1 million compared to $457.4 million in
1999. The increase is primarily the result of higher sales volumes for lead,
zinc, silver and gold and improved realized prices for copper, zinc and gold,
partially offset by lower realized prices for lead and silver, and reduced
by-product sales. Capital investments and other process improvements increased
the capacities of the lead and zinc refineries during 2000. These improvements
resulted in increased refined silver sales volume of 1.9 million ounces or 6%,
increased net sales by $9.6 million and a 10% increase in lead metal sales
volume which added $5.7 million to net sales. Gold bullion sales volume was up
more than 22 thousand ounces or 32%, compared to the prior year, accounting for
$6.2 million of the sales increase and higher zinc volume added another $3.4
million to the net sales improvement. The Company's net realized price for
refined copper increased by 19% in 2000, increasing net sales by $18.5 million.
Improvements in zinc realized prices added $9.2 million to the net sales
increase. These increases were partially offset by lower realized prices for
lead metal and bullion lead, which reduced net sales by $8.8 million, and the
absence $6.5 million of blister copper sales which were eliminated in 2000 in
favor of more profitable refined copper sales.

         COST OF SALES for 2000 was $426.8 million, compared to $391.0 million
in 1999. A 27% increase in the unit production cost of refined copper increased
cost of sales by $25.0 million. This increase was primarily the result of higher
feed costs for copper due to a 12% increase in LME copper price, an increase in
the cost of concentrates produced by Cobriza and a reduction in copper treatment
and refining charges of approximately 11%. Higher sales volumes for refined
lead, zinc, silver and gold increased cost of sales by $21.1 million. These
increases were partially offset by lower feed cost for lead metal and bullion
lead, and reduced by-product sales volume, primarily blister copper.

         DEPRECIATION AND AMORTIZATION expense increased by $1.9 million in
2000, compared to 1999 prior year, primarily due to recent capital additions.

         EXPLORATION Expense increased due to work done to identify additional
reserves within, and in the immediate vicinity of, the Company's Cobriza mine.

         INCOME FROM OPERATIONS decreased $11.4 million for 2000, compared to
1999 due primarily to the factors discussed above.

         INTEREST EXPENSE increased $0.9 million in 2000 compared to 1999 due
primarily to an increase in the average outstanding revolver balance of
approximately $13.5 million.

         INTEREST INCOME decreased $0.3 million for 2000, compared to 1999, due
primarily to interest from a customer on a past due account receivable in 1999,
which has been collected.

         Other, net expense was $0.6 million in 2000 compared to $1.2 million in
1999. The decrease was primarily due to fluctuations in foreign currency
transaction gains and losses and reductions in other miscellaneous expenses,
offset by the reduction in the insurance recoveries related to the turbine
failures at La Oroya's oxygen plant, which occurred in 1998 and 1999.

         INCOME TAXES for 2000 reflect the non-deductibility of certain interest
expenses, offset by the recognition of benefits relating to deferred tax assets
for which benefit had not previously been recognized.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's liquidity requirements arise from its working capital
requirements, and capital investment and debt service obligations. The Company's
primary available sources of liquidity are cash provided by operating activities
and two revolving credit facilities. In the U.S., the Company has available a
revolving credit facility (the Doe Run Revolving Credit Facility) that provides
for advances by the lender to a maximum of $75.0 million less outstanding
letters of credit, based on specific percentages of eligible receivables and
inventories. As of October 31, 2001, $37.4 million, exclusive of $8.7 million of
letters of credit, was outstanding under the Doe Run Revolving Credit Facility.


                                       24
<Page>

         On January 4, 2002 the Company entered into an amendment to the Loan
and Security Agreement governing the Doe Run Revolving Credit Facility, which
increased the interest rate by .25% to prime plus 1%, reduced the maximum credit
from $100.0 million to $75.0, reduced the maximum available to borrow based on
eligible inventory from $50.0 million to $35.0 million and temporarily eased a
reserve against calculated availability which gradually reverted back to a $5.0
million reserve on March 14, 2002. Under this amendment, the lender agreed to
make supplemental loans, in addition to those originally provided for under the
facility, of up to $5.0 million. Renco provided the lender with $5.0 million of
cash collateral and a limited guarantee of $2.0 million. The amendment also
waived, through February 27, 2002, existing defaults resulting from the
Company's failure to maintain consolidated net worth and EBITDA for U.S.
operations, as required by the agreements governing Doe Run Revolving Credit
Facility. This waiver was subsequently extended on February 28, 2002 to run
through March 14, 2002. No other significant terms of the original agreement
were amended by this amendment.

         In Peru, the Company has available a revolving credit facility (the Doe
Run Peru Revolving Credit Facility) that provides for advances by the lender to
a maximum of $40.0 million, less outstanding letters of credit, guarantee
letters and customs bonds based upon specific percentages of eligible
receivables and inventories. In addition the lender provides a separate line of
$12.0 million for the issuance of certain classes of guarantee letters. The sum
of the advances on both of these lines is limited to $42.0 million. At October
31, 2001, $21.0 million, exclusive of $2.5 million of guarantee letters, was
outstanding under the Doe Run Peru Revolving Credit Facility. The Company also
has available, in Peru, unsecured and uncommitted credit arrangements and
additional availability related to letters of credit and customs bonds, provided
by local financial institutions. At October 31, 2001, $1.9 million in customs
bonds was outstanding under these arrangements.

         Net unused availability at October 31, 2001 was $1.8 million under the
Doe Run Revolving Credit Facility and $9.7 million under the Doe Run Peru
Revolving Credit Facility. In addition to availability under the credit
facilities, the Company had $6.3 million of cash at October 31, 2001. At
April 30, 2002, availability was $7.4 million under the Doe Run Revolving
Credit Facility and $0.1 million under the Doe Run Peru Revolving Credit
Facility, and the Company's cash balance was $2.3 million.

         For 2001, cash provided by operating activities was $37.3 million, cash
used in investing activities was $19.5 million and cash used in financing
activities was $19.8 million. The cash from operating activities for 2001
includes the refund mentioned above and reductions of other Peruvian prepaid
income tax and value added tax balances due to the Company totaling
approximately $25.4 million.

         The Company had capital expenditures, including equipment financed with
capital leases, of $25.2 million in 2001 and has projected total capital
expenditures of approximately $29.2 million for fiscal 2002. In the U.S., the
Company had capital expenditures of $12.7 million for 2001 and has projected
capital expenditures of approximately $12.3 million for fiscal 2002, primarily
for environmental and operational improvements and to support ongoing
operations. In addition to these capital investments, the Company's U.S.
operations expended an average of approximately $68.9 million per year on
repairs and maintenance from fiscal 1996 through fiscal 2001. As a result of
these expenditures, the Company believes that it operates and will continue to
maintain modern and efficient facilities.

         As part of the acquisition of its Peruvian operations, the Company has
undertaken a capital investment program, in part to satisfy an investment
commitment of $120.0 million as set forth in the Subscription Agreement. For
expenditures through October 31, 2001 Centromin has approved qualifying
expenditures under the investment commitment of approximately $103 million.
Peruvian operations had capital expenditures, including equipment financed with
capital leases, of $12.5 million in 2001 and have projected total capital
expenditures of approximately $16.9 million for fiscal 2002, primarily for
environmental improvements and to support ongoing operations.

         The Company has substantial indebtedness and debt service requirements.
As of October 31, 2001, on a consolidated basis, the Company had $496.0 million
of indebtedness outstanding, or $371.0 million net of the Special Term Deposit
made in a foreign bank as collateral for a loan made to Doe Run Peru, securing
indebtedness of a like amount.


                                       25
<Page>

         Low metal prices over the past four years, coupled with the Company's
substantial debt service requirements, have severely reduced the Company's
liquidity. In fiscal 2001, cash from operating activities was sufficient to meet
the Company's capital and debt service requirements only because of a
significant reduction in working capital. In addition to a $25.4 million
reduction of taxes receivable in Peru, the Company reduced trade receivables by
$4.0 million and reduced inventories by $11.3 during 2001. The reductions in
receivables and inventory coupled with increases in borrowings on revolving
credit lines have reduced availability under revolving credit facilities to the
minimal levels discussed above. Further reductions of current assets of this
magnitude are very unlikely.

         At October 31, 2001 the Company failed to maintain consolidated net
worth and EBITDA for U.S. operations, as required by the Doe Run Revolving
Credit Facility. The amendments discussed above waived these defaults through
March 14, 2002.

         Management has made significant changes to operations, discussed
previously, which it believes will significantly improve profit margins and cash
generated from operations. In recent months the Company has also seen some
improvement in lead prices, which should improve margins and cash position.

         The Doe Run Revolving Credit Facility, the Doe Run Peru Revolving
Credit Facility, and the indentures governing the Notes contain numerous
covenants and restrictions. The more restrictive covenants included limitations
on allowable indebtedness and maintenance of minimum net worth, as defined, a
limitation on capital expenditures in the U.S. and EBITDA requirements in the
U.S. The indentures covering the Notes limit principal outstanding under various
Peruvian working capital facilities to $60 million.

         The ability of the Company to meet its debt service requirements and to
comply with these covenants is dependent upon future operating performance and
financial results, which are subject to financial, economic, political,
competitive and other factors affecting the Company, many of which are beyond
the Company's control.

         Due to the non-payment of interest due March 15, 2002 on the 11 1/4%
Senior Notes due 2005, Floating Interest Rate Senior Notes due 2003 and 11 1/4%
Senior Secured Notes due 2005 (collectively, the Notes), and the expiration of
the grace period during which the Company could cure the non-payment, and the
violation of other financial covenants, the Company is in default of its
covenants under the Notes indentures and its revolving credit facilities. In an
event of default, the lenders have the right to accelerate the payment of any
unpaid principal and interest balances. No actions have been taken by the
lenders to accelerate the payment of outstanding debt balances. The Company is
in restructuring negotiations as described below and in negotiations with the
lenders of its revolving credit facilities to execute amended revolving credit
facilities.

         On April 15, 2002, the Company announced that it had reached an
agreement in principle with Renco and Regiment Capital Advisors, LLC (Regiment)
for Renco and Regiment to provide the Company with significant capital for the
purpose of restructuring its existing debt. Pursuant to the agreement in
principle, Renco will purchase $20 million of the Company's preferred stock and
Regiment, a significant holder of the Notes, will commit to lend the Company $35
million and will offer other holders of Notes the opportunity to participate in
making such loan.

         Under the proposed restructuring transaction, the Company would make a
cash tender offer for a portion of the Notes and an exchange offer for the
balance of the Notes. The $55 million in proceeds of the Renco investment and
the loan, together with borrowings under its revolving credit facility would be
used to finance the cash tender offer, to pay the accrued interest as of March
15, 2002 on the Notes exchanged in the exchange offer and to pay certain costs
of the transactions. If successful, the cash tender offer and the exchange offer
would significantly reduce the Company's future debt service and provide
sufficient liquidity to continue to operate all its facilities at present levels
and will not adversely affect the Company's trade creditors.

         The non-binding agreement in principle is subject to agreement on the
terms of definitive documentation and the successful completion of the
transactions is subject to several conditions, including, among others, the
participation by holders of at least 90% of the aggregate principal amount of
each class of Notes in the cash tender offer and/or the exchange offer and the
satisfactory modification of Doe Run's United States and Peruvian revolving
credit facilities.


                                       26
<Page>

         The following tables summarize Doe Run's contractual obligations and
commercial commitments at October 31, 2001. For a discussion of environmental
and reclamation obligations, see "Item 8. Financial Statements and Supplementary
Data - Note 16 to the Company's Consolidated Financial Statements".

<Table>
<Caption>
       CONTRACTUAL OBLIGATIONS:      ($ millions)                 Payments Due By Period
                                                   ------------------------------------------------------
                                                    Less Than       1 - 3        4 - 5        After 5
                                        Total         1 Year        Years        Years         Years
                                        -----         ------        -----        -----         -----
<S>                                     <C>            <C>          <C>            <C>          <C>
       Current portion of
         long-term debt                 $ 62.6         $62.6           -            -            -
       Long-term Debt (a)                433.4           -          $433.4          -            -
       Operating Leases                   19.6           7.3           8.8         $1.4         $2.1
       Capital Leases                     11.6           5.1           6.5          -            -
       Rents and Royalties                 3.4            .3            .9           .5          1.7
                                     ------------- ------------- ------------ ------------- -------------
              Total                     $530.6         $75.3        $449.6         $1.9         $3.8
                                     ============= ============= ============ ============= =============
</Table>


     (a) Total long-term debt, net of the $125 special term deposit, is $308.4.
         Subsequent to October 31, 2001, the Company was in default of the
         covenants related to long-term debt. See "Item 8. Financial
         Statements and Supplementary Data - Note 8 to the Company's
         Consolidated Financial Statements".


<Table>
<Caption>
       COMMERCIAL COMMITMENTS:       ($ millions)                 Payments Due By Period
                                                   ------------------------------------------------------
                                                    Less Than       1 - 3        4 - 5        After 5
                                        Total         1 Year        Years        Years         Years
                                        -----         ------        -----        -----         -----
<S>                                     <C>            <C>            <C>          <C>          <C>
       Customs Bonds                    $  1.9         $1.9           -            -             -
       Standby Letters of Credit          11.2          5.8           -            -            $5.4
       Tolling Commitments                (b)           -             -            -             -
       Purchase Commitments               (c)           -             -            -             -
       Sales Commitments                  (d)           -             -            -             -
                                     ------------- ------------- ------------ ------------- -------------
              Total                     $ 13.1         $7.7           -            -            $5.4
                                     ============= ============= ============ ============= =============
</Table>

     (b) The Company has entered into tolling arrangements with major battery
         manufacturers whereby the manufacturers will deliver spent lead-acid
         batteries and other lead-bearing material to the Company's recycling
         facility and, for a processing fee, the Company will return finished
         lead metal. The largest of these contracts expire in September and
         December 2003. The agreements cover approximately 10% of the Company's
         anticipated combined primary and secondary lead metal production for
         the 2002 fiscal year.
     (c) The Company has minimum-take purchase agreements for coke and zinc
         under which it has committed to purchase minimum quantities of these
         products. For coke, the annual minimum-take quantity is 87,000 tons and
         the contracts run through December 2003. The coke contracts are fixed
         priced contracts. For zinc, the monthly minimum-take quantity is 140
         tons and the contracts run through February and March 2003,
         respectively. Pricing for the zinc contracts is the average market
         price of zinc for the month of delivery plus a premium.
     (d) The Company has commitments to sell approximately 66%, 74%, 75%, 38%
         and 100% of its anticipated 2002 lead, copper, zinc, silver and gold
         metal production, respectively under agreements, with terms of
         generally less than one year. Sales prices are generally based on the
         average quoted exchange prices for the month of shipment, plus a
         premium.


                                       27
<Page>

IMPACT OF ACCOUNTING STANDARDS NOT YET ADOPTED

         In June 2001, the Financial Accounting Standards Board issued Statement
No. 143, ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS, which addresses financial
accounting and reporting for obligations associated with the retirement of
tangible long-lived assets and the associated asset retirement costs. The
standard applies to legal obligations associated with the retirement of
long-lived assets that result from the acquisition, construction, development
and (or) normal use of the asset.

         Statement No. 143 requires that the fair value of a liability for an
asset retirement obligation be recognized in the period in which it is incurred
if a reasonable estimate of fair value can be made. The fair value of the
liability is added to the carrying amount of the associated asset and this
additional carrying amount is depreciated over the life of the asset. The
liability is accreted at the end of each period through charges to operating
expense. If the obligation is settled for other than the carrying amount of the
liability, the Company will recognize a gain or loss on settlement.

         The Company plans to adopt the provisions of Statement No. 143 as of
November 1, 2002. To accomplish this, the Company must identify all legal
obligations for asset retirement obligations, if any, and determine the
fair value of these obligations on the date of adoption. The determination
of fair value is complex and will require the Company to gather market
information and develop cash flow models. Additionally, the Company will be
required to develop processes to track and monitor these obligations. Because
of the effort necessary to comply with the adoption of Statement No. 143, it is
not practicable for management to estimate the impact of adopting this Statement
at the date of this report. It is currently the Company's practice to accrue for
mine and other closure obligations at their estimated, undiscounted cost. See
"Item 8. Financial Statements and Supplementary Data", Note 16 to the Company's
Consolidated Financial Statements for disclosures related to these obligations.

         In August 2001, the Financial Accounting Standards Board issued
Statement No. 144, ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED
ASSETS, which supersedes both FASB Statements No. 121, ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF and
the accounting and reporting provisions of APB Opinion No. 30, REPORTING THE
RESULTS OF OPERATIONS - REPORTING THE EFFECTS OF DISPOSAL OF A SEGMENT OF A
BUSINESS, AND EXTRAORDINARY, UNUSUAL AND INFREQUENTLY OCCURRING EVENTS AND
TRANSACTIONS, for the disposal of a segment of a business. Statement 144 retains
the fundamental provisions in Statement 121 for recognizing and measuring
impairment losses on long-lived assets held for use and long-lived assets to be
disposed of by sale, while also resolving significant implementation issues
associated with Statement 121. Statement 144 retains the basic provisions of
Opinion 30 on how to present discontinued operations in the income statement but
broadens that presentation to include a component of an entity (rather than a
segment of a business.

         The Company plans to adopt the provisions of Statement No. 144 as of
November 1, 2001. Management does not expect the adoption of Statement 144
for long-lived assets held for use to have a material impact on the Company's
financial statements because the impairment assessment under Statement 144 is
largely unchanged from Statement 121. The provisions of the Statement for
assets held for sale or other disposal generally are required to be applied
prospectively after the adoption date to newly initiated disposal activities.
Therefore, management cannot determine the potential effects that adoption of
Statement 144 will have on the Company's financial statements.

SIGNIFICANT ACCOUNTING POLICIES

         The consolidated financial statements are impacted by the accounting
policies used and the estimates and assumptions made by management during their
preparation. Significant accounting policies and estimates that most impact the
consolidated financial statements are those related to revenue recognition, ore
reserves, and estimated reserves for environmental and legal claims.

         The Company's sales revenues are generally recognized at the time
products are shipped to the customer or, in the case of tolling revenues, as the
tolling services are performed. Actual selling prices are determined by customer
contract. The Company has both fixed price contracts where the unit selling
price is fixed at the time the contract is entered into and market price based
contracts where the unit selling price is tied to some future market price or
average future market price. The Company may also have contracts that are tied
to future market prices whereby the actual selling price cannot be determined
until after the date of actual shipment. In these cases, the Company will
invoice the customer provisionally at the time of shipment and then subsequently
true-up the provisional billing with a final invoice once the actual market
price is known. Provisional invoices are based on the


                                       28
<Page>

then current market price of the product shipped. The final, actual selling
price may be more or less than the amount of the provisional invoice and can
result in subsequent period revenue adjustments.

         The selling prices of certain of the Company's products and by-products
may also be dependent on the actual assay or composition of the material
shipped. The assaying process involves the exchange and independent testing of
product samples with the customer before a final assay can be determined for
billing purposes and can take several months or more to complete after the
shipment is made. In these cases, the Company will generally invoice the
customer provisionally at the time of shipment using a previously agreed upon
assay with the customer and subsequently follow this up with a final, settlement
invoice once the actual assay is known. This final, settlement invoice can
result in either a debit or credit billing to the customer and a subsequent
period revenue adjustment to the Company.

         The Company's ore reserves are based on geological studies and test
hole drillings conducted by the Company's geologists. These estimates are
reviewed and certified every two years by an independent mining consultant. The
most recent independent report on the Company's ore reserves was issued in
January 2001. The ore reserves are adjusted monthly to reflect the current
month's mining activity. Ore reserves can and do fluctuate with the underlying
market price or prices of the ores to be mined. As such, there can be no
assurances that the reserves currently reported will be economic to mine in the
future.

         Environmental and reclamation reserves are established by the Company
for probable and known commitments and where a reasonable estimate of the
commitment can be made. In general, these reserves are based on engineering cost
studies and estimates as well as the Company's past experiences, if any, in
completing work of a similar nature. All reserves are reviewed periodically and
adjusted as necessary and when circumstances change. However, there can be no
assurance the reserves will be sufficient to cover the costs of the actual
commitments or that in the future, new commitments will not arise that could
have a material adverse effect on the results of operations, financial condition
and liquidity of the Company. See "Item 8. Financial Statements and
Supplementary Data", Note 16 to the Company's Consolidated Financial Statements
for a more detailed discussion of environmental related matters.

         Similar to the environmental and reclamation reserves discussed
previously, reserves for legal claims and judgements are established when the
expected outcome is either known or reasonably likely and where a reasonable
estimate of the claim can be determined. All legal claims and their associated
reserves are periodically reviewed with the Company's internal and external
attorneys and the reserves adjusted as necessary and when circumstances change.
As of the reporting date, no amounts had been accrued for legal claims. See
"Item 8. Financial Statements and Supplementary Data", Note 16 to the Company's
Consolidated Financial Statements for a more detailed discussion of litigation
related matters.

FORWARD-LOOKING STATEMENTS

        This report includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 which involve known and
unknown risks, uncertainties and other important factors that could cause the
actual results, performance or achievements of the Company to differ materially
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks, uncertainties, and other important
factors include, among others: general economic and business conditions;
increasing industry capacity and levels of imports of non-ferrous metals or
non-ferrous metals products; industry trends, including product pricing;
competition; currency fluctuations; the loss of any significant customer;
availability of qualified personnel; effects of future collective bargaining
agreements; outcome of litigation; changing environmental requirements,
political uncertainty and major equipment failures. These forward-looking
statements speak only as of the date of this report. The Company expressly
disclaims any obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions,
or circumstances on which any such statement is based.


                                       29
<Page>

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

        In the normal course of its business, the Company has used in the past,
and may use in the future, forward sales commitments and commodity put and call
option contracts to manage its exposure to fluctuations in the prices of lead,
copper, zinc, silver, and gold. Contract positions are designed to ensure that
the Company will receive a defined minimum price for certain quantities of its
production. Gains and losses and the related costs paid or premiums received for
option contracts which hedge the sales prices of commodities are recognized in
net sales when the related production is sold. None of the aforementioned
activities have been entered into for speculative purposes.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         Financial statements and supplementary data follow immediately and are
listed in Item 14 of Part IV of this report.


                                       30
<Page>

[KPMG LOGO]

         10 South Broadway
         Suite 900
         St. Louis, MO 63102-1761





                          INDEPENDENT AUDITORS' REPORT

The Board of Directors
The Doe Run Resources Corporation
   and Subsidiaries:

We have audited the accompanying consolidated balance sheets of The Doe Run
Resources Corporation and subsidiaries as of October 31, 2001 and 2000, and the
related consolidated statements of operations, comprehensive income and
shareholder's equity (deficit), and cash flows for each of the years in the
three-year period ended October 31, 2001. These consolidated financial
statements and financial statement schedule are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated financial statements and financial statement schedule based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of The Doe Run
Resources Corporation and subsidiaries as of October 31, 2001 and 2000, and the
results of their operations and their cash flows for each of the years in the
three-year period ended October 31, 2001, in conformity with accounting
principles generally accepted in the United States of America. Also, in our
opinion, the related financial statement schedule, when considered in
relation to the basic consolidated financial statements taken as a whole,
presents fairly, in all material respects, the information set forth therein.

The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. As discussed in
Note 17 to the consolidated financial statements, the Company has suffered
recurring net losses, has a net capital deficiency, and liquidity issues that
raise substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in Note 17.
The consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.

As discussed in Note 1 to the consolidated financial statements, the Company
changed its method of accounting for derivative instruments and hedging
activities in 2001.

St. Louis, Missouri
December 14, 2001, except as to Notes 8 and 17,
 which are as of April 15, 2002

                                               KPMG LLP



                                       31
<Page>

                        THE DOE RUN RESOURCES CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<Table>
<Caption>
                                                                                       OCTOBER 31,
                                                                                ----------------------
                                                                                  2001         2000
                                                                                ---------    ---------
<S>                                                                             <C>          <C>
                                     ASSETS
Current assets:
 Cash                                                                           $   6,263    $   8,295
 Trade accounts receivable, net of allowance for
    doubtful accounts of $684 and $143, respectively                               73,006       77,018
 Inventories                                                                      107,404      118,726
 Prepaid expenses and other current assets                                         19,331       40,250
 Net deferred tax assets                                                                -        2,592
                                                                                ---------    ---------
      Total current assets                                                        206,004      246,881

Property, plant and equipment, net                                                264,300      275,514
Special term deposit                                                              125,000      125,000
Net deferred tax assets                                                                 -        4,598
Other noncurrent assets, net                                                        7,811       12,952
                                                                                ---------    ---------
      Total assets                                                              $ 603,115    $ 664,945
                                                                                =========    =========

                      LIABILITIES AND SHAREHOLDER'S DEFICIT
Current liabilities:
 Short-term borrowings and current maturities of long-term debt                 $  62,611    $  14,824
 Accounts payable                                                                  52,037       53,738
 Accrued liabilities                                                               58,329       50,475
                                                                                ---------    ---------
      Total current liabilities                                                   172,977      119,037

Long-term debt, less current maturities                                           433,370      498,686
Other noncurrent liabilities                                                       62,569       54,136
                                                                                ---------    ---------
      Total liabilities                                                           668,916      671,859

Shareholder's deficit:

 Common stock, $.10 par value, 1,000 shares authorized,
      issued, and outstanding                                                           -            -
 Additional paid-in capital                                                         5,238        5,238
 Accumulated deficit                                                              (57,726)     (10,947)
 Accumulated other comprehensive losses                                           (13,313)      (1,205)
                                                                                ---------    ---------
  Total shareholder's deficit                                                     (65,801)      (6,914)
                                                                                ---------    ---------
  Total liabilities and shareholder's deficit                                   $ 603,115    $ 664,945
                                                                                =========    =========
</Table>

        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       32
<Page>

                        THE DOE RUN RESOURCES CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                YEAR ENDED OCTOBER 31,
                                                         -----------------------------------
                                                           2001         2000         1999
                                                         ---------    ---------    ---------
<S>                                                      <C>          <C>          <C>
Net sales                                                $ 737,482    $ 815,042    $ 800,274

Costs and expenses:
  Cost of sales                                            665,279      723,178      686,027
  Depletion, depreciation and amortization                  30,461       30,520       31,400
  Selling, general and administrative                       29,726       32,142       30,842
  Exploration                                                1,602        4,337        3,919
  Unrealized gain on derivative financial instruments       (1,764)           -            -
                                                         ---------    ---------    ---------
    Total costs and expenses                               725,304      790,177      752,188
                                                         ---------    ---------    ---------

    Income from operations                                  12,178       24,865       48,086

Other income (expense):
  Interest expense                                         (59,992)     (61,595)     (59,417)
  Interest income                                           14,870       14,433       14,755
  Other, net                                                (1,676)         935       (1,346)
                                                         ---------    ---------    ---------
                                                           (46,798)     (46,227)     (46,008)
                                                         ---------    ---------    ---------

    Income (loss) before income tax expense                (34,620)     (21,362)       2,078

Income tax expense                                           8,226        1,753        3,488
                                                         ---------    ---------    ---------
  Loss before extraordinary item and cumulative
    effect of change in accounting principle               (42,846)     (23,115)      (1,410)

  Extraordinary item related to
    retirement of long term debt                              (159)           -            -

  Cumulative effect of change in accounting principle,
    net of income tax benefit                               (3,774)           -            -
                                                         ---------    ---------    ---------
        Net loss                                         $ (46,779)   $ (23,115)   $  (1,410)
                                                         =========    =========    =========
</Table>

        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       33
<Page>

                       THE DOE RUN RESOURCES CORPORATION
         CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND SHAREHOLDER'S
                                EQUITY(DEFLICIT)
                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                                    YEAR ENDED OCTOBER 31,
                                                                              --------------------------------
                                                                                2001        2000        1999
                                                                              --------    --------    --------
<S>                                                                           <C>         <C>         <C>
Net loss                                                                      $(46,779)   $(23,115)   $ (1,410)
Unrealized loss on derivative financial instruments:
  Unrealized gain on derivative financial instruments during period              2,674           -           -
  Less: reclassification adjustment for losses included in net income           (2,682)          -           -
                                                                              --------    --------    --------
   Unrealized loss on derivative financial instruments, net                         (8)          -           -

Unrealized loss on available-for-sale investments                                  (43)          -           -

Minimum pension liability                                                      (12,057)       (420)       (785)
                                                                              --------    --------    --------

  Comprehensive loss                                                          $(58,887)   $(23,535)   $ (2,195)

Shareholder's equity (deficit), beginning of year                               (6,914)     16,621      18,578
  Additional paid in capital - expenses paid by parent                               -           -         238
                                                                              --------    --------    --------
Shareholder's equity (deficit), end of year                                   $(65,801)   $ (6,914)   $ 16,621
                                                                              ========    ========    ========
</Table>

        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       34
<Page>

                        THE DOE RUN RESOURCES CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                                       YEAR ENDED OCTOBER 31,
                                                                                 --------------------------------
                                                                                  2001         2000       1999
                                                                                 --------    --------    --------
<S>                                                                              <C>         <C>         <C>
Cash flows from operating activities:
 Net loss                                                                        $(46,779)   $(23,115)   $ (1,410)
 Extraordinary loss on debt retirement                                                159           -    $      -
 Cumulative effect of change in accounting principle                                4,254           -           -
 Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
     Depreciation, depletion and amortization                                      30,461      30,520      31,400
     Imputed interest and amortization of deferred financing costs                  3,665       3,757       3,979
     Unrealized gain on derivative financial instruments                           (1,764)          -           -
     Loss on retirement of plant, property and equipment                              996         170         426
     Deferred income taxes                                                          7,190      (3,469)        (92)
     Expenses paid by parent                                                            -           -         238
     Increase (decrease) resulting from changes in:
        Trade accounts receivable                                                   4,012      11,866      (2,546)
        Inventories                                                                11,322       1,535       6,542
        Prepaid expenses and other current assets                                  22,892      (7,631)     (3,404)
        Accounts payable                                                           (1,701)       (998)      1,038
        Accrued liabilities                                                         3,595         668        (899)
        Other noncurrent assets and liabilities, net                               (1,038)     (4,234)        893
                                                                                 --------    --------    --------
            Net cash provided by operating activities                              37,264       9,069      36,165

Cash flows from investing activities:
 Purchases of property, plant and equipment                                       (24,537)    (37,254)    (35,939)
 Net proceeds from sales of assets                                                  4,999           -           -
 Payments for acquisition                                                               -           -        (375)
                                                                                 --------    --------    --------
     Net cash used in investing activities                                        (19,538)    (37,254)    (36,314)

Cash flows from financing activities:
 Proceeds from (payments on) revolving loans and
    short term borrowings, net                                                     (8,832)     31,781     (13,417)
 Proceeds from long-term debt                                                           -           -       5,665
 Payments on long-term debt                                                       (10,551)     (5,187)     (4,431)
 Proceeds from sale/leaseback transactions                                              -           -      17,923
 Payment of deferred financing costs                                                 (375)          -        (351)
                                                                                 --------    --------    --------
   Net cash provided by (used in) financing activities                            (19,758)     26,594       5,389
                                                                                 --------    --------    --------
   Net increase (decrease) in cash                                                 (2,032)     (1,591)      5,240

Cash at beginning of period                                                         8,295       9,886       4,646
                                                                                 --------    --------    --------
Cash at end of period                                                            $  6,263    $  8,295    $  9,886
                                                                                 ========    ========    ========

Supplemental disclosure of cash flow information -
  Cash paid during the period for:
   Interest, net of capitalized interest                                         $ 56,666    $ 57,831    $ 55,507
                                                                                 ========    ========    ========
   Income taxes                                                                  $    457    $  1,651    $  6,577
                                                                                 ========    ========    ========
</Table>

        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       35
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)

(1)      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

               PRINCIPLES OF CONSOLIDATION

         These consolidated financial statements include the accounts of The Doe
         Run Resources Corporation and its wholly owned subsidiaries (the
         Company). All material intercompany balances and transactions have been
         eliminated.

               RECLASSIFICATIONS

         Certain balances have been reclassified from their previous
         presentation in order to conform to their current presentation.

               NATURE OF BUSINESS

         The principal domestic business of the Company is the exploration,
         development, mining and processing of base metals, primarily lead, and
         recycling of lead-acid batteries and other lead-bearing materials. The
         Company's fabrication businesses fabricate lead products used in
         radiation and X-ray shielding, pollution control devices, and medical
         equipment; produce lead oxide for use in automotive batteries and
         fabricate and repair lead-lined process equipment. In Peru, the Company
         is engaged in the mining, smelting and refining of polymetallic
         concentrates, mainly copper, lead, zinc and silver which are sold as
         refined metals primarily to customers located outside of Peru.

               FOREIGN CURRENCY TRANSLATION

         The functional currency of the Company's foreign subsidiaries is the
         U.S. Dollar. Accordingly, foreign currency transaction gains and losses
         are included in determining net income.

               USE OF ESTIMATES

         The preparation of consolidated financial statements in conformity with
         accounting principles generally accepted in the United States of
         America requires management to make estimates and assumptions that
         affect the reported amounts of assets and liabilities, the disclosure
         of contingent assets and liabilities at the date of the consolidated
         financial statements and the reported amounts of revenues and expenses
         during the reporting periods. Actual results could differ from these
         estimates.

               INVENTORIES

         Finished metals and concentrates, metals and concentrates in process
         and raw materials are stated at the lower of cost or market. The
         last-in, first-out (LIFO) method of determining cost is used for the
         majority of the Company's inventories. Supplies and repair parts are
         principally stated at average cost, net of reserves for obsolescence.

         Inventory costs include labor, material and other production costs.

               PROPERTY, PLANT AND EQUIPMENT

         Property, plant and equipment are recorded at the lower of cost or fair
         value. Long-lived assets are reviewed for impairment when events or
         circumstances indicate that the carrying amount of the assets may not
         be recoverable. The impairment loss on such assets, as well as
         long-lived assets and certain identifiable intangibles to be disposed
         of, is measured as the amount by which the carrying value of the assets
         exceeds the fair value of the assets.


                                       36
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         Major additions and improvements to property, plant and equipment are
         capitalized, at cost, when they significantly increase the productive
         capacity or the life of the asset. Routine or unanticipated repair and
         maintenance expenditures, which do not extend the useful life or
         increase the productive capacity of the asset, are charged to
         operations as incurred. Major expenditures required to maintain the
         originally anticipated productive capacity and life of the asset (such
         as furnace rebuilds), for which both the amount and timing can be
         reasonably estimated, are accrued and charged to operations over the
         period through the next anticipated maintenance date.

         Mineral interests are amortized using the units of production method.

         Depreciation is computed using the straight-line method over the
         estimated useful lives of the assets, as follows:

<Table>
<S>                                                            <C>
                     Buildings and improvements                3 to 20 years
                     Machinery and equipment                   2 to 15 years
</Table>

         Facilities at which operations have temporarily ceased may be placed on
         a standby care and maintenance basis. The Company continues to
         depreciate the related assets during the standby period and the
         expected useful lives are adjusted prospectively to reflect the reduced
         usage. During the standby period all care and maintenance expenditures
         incurred are expensed.

               DEFERRED FINANCING COSTS

         Deferred financing costs represent fees paid in conjunction with the
         acquisition of long-term debt or amending debt agreements and are
         amortized using the interest method over the term of the respective
         debt.

               EXPLORATION AND DEVELOPMENT COSTS

         Exploration costs are charged to operations as incurred. Development
         costs incurred to maintain production at operating mines are charged to
         operations as incurred. Development expenditures for mining properties
         that are considered to be commercially feasible, but are not yet
         producing, and major development expenditures at operating mines that
         are expected to benefit future production are capitalized and amortized
         using the units of production method over the estimated proven ore
         reserves to be benefited.

               RECLAMATION COSTS

         The Company's mines and related processing facilities are subject to
         governance by various agencies that have established minimum standards
         for reclamation. Company estimates of mine closure costs are accrued
         and charged to expense using the units of production method during the
         estimated life of the operations. A reserve for reclamation costs has
         been established for the restoration of certain abandoned mining and
         processing sites based on current estimates of the cost to comply with
         existing standards. Routine environmental expenditures are expensed as
         incurred or capitalized and depreciated depending on their future
         economic benefit.

               COMMITMENTS AND CONTINGENCIES

         The Company accrues for loss contingencies, including costs associated
         with environmental remediation obligations, when such costs are
         probable and reasonably estimable. Accruals are reviewed and adjusted
         as circumstances change. Costs of future expenditures for environmental
         remediation obligations are not discounted to their present value.


                                       37
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



               REVENUE RECOGNITION

         Sales are recorded as products are shipped to customers or as tolling
         services are performed. Concentrate and certain smelter product sales
         are recorded based on estimated weights, metal contents and prices
         using applicable customer agreements and hedge contracts. Revenues with
         respect to such sales are adjusted to reflect settlement when final
         weights, metal contents and prices are determined.

               DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

         Statement of Financial Accounting Standards No. 133, ACCOUNTING FOR
         DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, was issued by the
         Financial Accounting Standards Board in June 1998, and amended by
         Statement No. 138, ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND
         CERTAIN HEDGING ACTIVITIES, AN AMENDMENT OF FASB STATEMENT NO. 133,
         issued in June 2000 (collectively, FAS 133). Under FAS 133, entities
         are required to carry all derivative instruments in the statement of
         financial position at fair value. The accounting for changes in the
         fair value (i.e. gains and losses) of a derivative instrument depends
         on whether it has been designated and qualifies as part of a hedging
         relationship, and if so, whether the derivative instrument is
         designated as a hedge of exposures to changes in fair values, cash
         flows or foreign currencies. If the hedged exposure is changes in fair
         values, the gain (loss) is recognized in earnings in the period of
         change, with an equal and offsetting (loss) gain recognized on the
         change in value of the hedged item. If the hedged exposure is changes
         in cash flows, the effective portion of the gain (loss) is reported as
         a component of other comprehensive income (outside earnings) until the
         forecasted hedged transaction affects earnings, when it is reclassified
         into earnings.

         The Company adopted FAS 133 as of November 1, 2000, in the first
         quarter in which it was required by the standard, as amended. The
         adoption of FAS 133 resulted in a net transition loss of $3,774, net of
         income tax benefit of $480, and a gain recorded in other comprehensive
         income of $70.

               RESEARCH AND DEVELOPMENT

         Research and development costs are expensed when incurred and are
         included in selling, general and administrative expenses on the
         consolidated statements of operations. Research and development costs
         are not significant.

               INCOME TAXES

         On January 15, 1999, The Renco Group Inc. (Renco), the Company's
         ultimate parent, filed an election, with the consent of its
         shareholders, with the Internal Revenue Service to change its taxable
         status from that of a subchapter C corporation to that of a subchapter
         S corporation, effective November 1, 1998. At the same time, Renco
         elected for the Company to be treated as a qualified subchapter S
         subsidiary (QSSS). Most states in which the Company operates will
         follow similar tax treatment. QSSS status requires the ultimate
         shareholders to include their pro rata share of the Company's income or
         loss in their individual tax returns. The election does not affect
         foreign income taxes related to the Company's foreign subsidiaries.

         Deferred tax assets and liabilities are recognized in foreign
         jurisdictions for the future tax consequences attributable to
         differences between the financial statement carrying amounts of
         existing assets and liabilities and their respective tax bases.
         Deferred tax assets and liabilities are measured using enacted tax
         rates expected to apply to taxable income in the years in which those
         temporary differences are expected to be recovered or settled.

               IMPACT OF ACCOUNTING STANDARDS NOT YET ADOPTED

         In June 2001, the Financial Accounting Standards Board issued Statement
         No. 143, ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS, which addresses
         financial accounting and reporting for obligations associated with the


                                       38
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         retirement of tangible long-lived assets and the associated asset
         retirement costs. The standard applies to legal obligations associated
         with the retirement of long-lived assets that result from the
         acquisition, construction, development and (or) normal use of the
         asset.

         Statement No. 143 requires that the fair value of a liability for an
         asset retirement obligation be recognized in the period in which it is
         incurred if a reasonable estimate of fair value can be made. The fair
         value of the liability is added to the carrying amount of the
         associated asset and this additional carrying amount is depreciated
         over the life of the asset. The liability is accreted at the end of
         each period through charges to operating expense. If the obligation is
         settled for other than the carrying amount of the liability, the
         Company will recognize a gain or loss on settlement.

         The Company is required and plans to adopt the provisions of Statement
         No. 143 for the quarter ending January 31, 2003. To accomplish this,
         the Company must identify all legal obligations for asset retirement
         obligations, if any, and determine the fair value of these obligations
         on the date of adoption. The determination of fair value is complex and
         will require the Company to gather market information and develop cash
         flow models. Additionally, the Company will be required to develop
         processes to track and monitor these obligations. Because of the effort
         necessary to comply with the adoption of Statement No. 143, it is not
         practicable for management to estimate the impact of adopting this
         Statement at the date of this report. It is currently the Company's
         practice to accrue for mine and other closure obligations at their
         estimated, undiscounted cost. See "Item 8. Financial Statements and
         Supplementary Data", Note 16 to the Company's Consolidated Financial
         Statements for disclosures related to these obligations.

         In August 2001, the Financial Accounting Standards Board issued
         Statement No. 144, ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF
         LONG-LIVED ASSETS, which supersedes both FASB Statements No. 121,
         ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED
         ASSETS TO BE DISPOSED OF and the accounting and reporting provisions of
         APB Opinion No. 30, REPORTING THE RESULTS OF OPERATIONS - REPORTING THE
         EFFECTS OF DISPOSAL OF A SEGMENT OF A BUSINESS, AND EXTRAORDINARY,
         UNUSUAL AND INFREQUENTLY OCCURRING EVENTS AND TRANSACTIONS, for the
         disposal of a segment of a business. Statement 144 retains the
         fundamental provisions in Statement 121 for recognizing and measuring
         impairment losses on long-lived assets held for use and long-lived
         assets to be disposed of by sale, while also resolving significant
         implementation issues associated with Statement 121. Statement 144
         retains the basic provisions of Opinion 30 on how to present
         discontinued operations in the income statement but broadens that
         presentation to include a component of an entity (rather than a segment
         of a business.

         The Company is required and plans to adopt the provisions of Statement
         No. 144 for the quarter ending January 31, 2003. Management does not
         expect the adoption of Statement 144 for long-lived assets held for use
         to have a material impact on the Company's financial statements because
         the impairment assessment under Statement 144 is largely unchanged from
         Statement 121. The provisions of the Statement for assets held for sale
         or other disposal generally are required to be applied prospectively
         after the adoption date to newly initiated disposal activities.
         Therefore, management cannot determine the potential effects that
         adoption of Statement 144 will have on the Company's financial
         statements.

(2)      RELATED PARTY TRANSACTIONS

         The Company has entered into a management consulting agreement with
         Renco. Under the agreement, Renco will provide the Company with
         management services for an annual fee. The agreement is automatically
         renewed every three years, unless either party gives six months prior
         notice, with the current term ending October 31, 2003. Fees expensed
         under this agreement were $2,400 in each of the years ended October 31,
         2001, 2000, and 1999, respectively. Fees outstanding and unpaid were
         $1,600 and $0 at October 31, 2001 and 2000, respectively.


                                       39
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         To obtain the advantages of volume, Renco purchases certain categories
         of property and casualty insurance for a number of its subsidiaries,
         including the Company, and the actual cost of such insurance, without
         markup, is reimbursed by the covered subsidiaries. For the years ended
         October 31, 2001, 2000 and 1999, the Company expensed costs of
         approximately $1,822, $4,294, and $3,695, respectively, under the Renco
         insurance program. Outstanding and unpaid broker fees due to Renco were
         $131 and $0 at October 31, 2001 and 2000, respectively.

         On January 4, 2002 Renco signed a Cash Collateral Pledge Agreement and
         a Limited Guarantee with the Company's primary lender in the U.S. Under
         the Cash Collateral Agreement, Renco posted $5,000 cash collateral to
         the lender and under the Limited Guarantee, Renco temporarily
         guaranteed $2,000 of the Company's obligations to the lender. See Note
         8.

(3)      INVENTORIES

         Inventories consist of the following:

<Table>
<Caption>
                                                                 OCTOBER 31,
                                                         ---------------------------
                                                             2001           2000
                                                         ------------   ------------

<S>                                                      <C>            <C>
         Finished metals and concentrates                $     15,887   $     20,408
         Metals and concentrates in process                    50,988         50,526
         Materials, supplies and repair parts                  40,529         47,792
                                                         ------------   ------------

                                                         $    107,404   $    118,726
                                                         ============   ============
</Table>

         Materials, supplies and repair parts are stated net of reserves for
         obsolescence of $5,484 and $4,472 at October 31, 2001 and 2000,
         respectively.

         The FIFO cost of inventories valued under the LIFO cost method were
         approximately $70,812 and $79,032 at October 31, 2001 and 2000,
         respectively. If the FIFO cost method had been used to determine cost,
         inventories would have been $5,526 lower and $1,116 higher at October
         31, 2001 and 2000, respectively.

         As a result of reducing certain inventory quantities valued on the LIFO
         basis, inventory costs prevailing in previous years were charged to
         cost of sales in 2001 and 2000. The Company calculates the effect of
         LIFO liquidations on net income based on the current cost method. The
         effect was a decrease in net income of $59 and increases in net income
         of $27, and $400 for the years ended October 31, 2001, 2000 and 1999,
         respectively.

(4)      PREPAID TAXES AND TAX CREDITS

         Certain of the Company's Peruvian subsidiaries had been required to
         prepay income taxes monthly in previous years. The balance of prepaid
         taxes was $0 and $11,893 at October 31, 2001 and 2000, respectively.

         In Peru, value added tax (VAT) paid on purchases can be offset against
         the VAT resulting from local sales, Peruvian income tax obligations and
         other taxes collected by the Peruvian Public Treasury. In addition, the
         Company may apply for a refund in the form of cash or negotiable credit
         notes from the tax authorities. The tax credits receivable were $4,433
         and $19,550 at October 31, 2001 and 2000, respectively. The credits on
         Peruvian value added tax outstanding as of October 31, 2001 and 2000
         were collected subsequent to the respective year-end.


                                       40
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



(5)      PROPERTY, PLANT AND EQUIPMENT, NET

         Property, plant and equipment, net consists of the following:

<Table>
<Caption>
                                                                      OCTOBER 31,
                                                              ---------------------------
                                                                  2001           2000
                                                              ------------   ------------

<S>                                                           <C>            <C>
         Land                                                 $     12,406   $     12,442
         Buildings and improvements                                 75,614         68,237
         Machinery and equipment                                   260,667        252,508
         Mineral interests                                          31,313         31,313
         Construction in progress                                   41,698         42,017
                                                              ------------   ------------

                                                                   421,698        406,517
         Less accumulated depreciation and depletion               157,398        131,003
                                                              ------------   ------------

         Property, plant and equipment, net                   $    264,300   $    275,514
                                                              ============   ============
</Table>


       Depreciation and depletion expense are as follows:

<Table>
<Caption>
                                         YEAR ENDED OCTOBER 31,
                                ------------------------------------------
                                    2001           2000           1999
                                ------------   ------------   ------------

<S>                             <C>            <C>            <C>
         Depreciation           $     28,350   $     27,977   $     27,568
         Depletion              $      2,055   $      2,464   $      3,752
</Table>

         Rental expense applicable to minimum rentals under operating leases was
         $9,726, $8,633, and $7,567 for the years ended October 31, 2001, 2000,
         and 1999, respectively. Contingent rental payments, based primarily on
         equipment usage, were $520, $1,210, and $405 for the years ended
         October 31, 2001, 2000, and 1999, respectively.

         The Company's operating leases relate primarily to operating equipment,
         office facilities and office equipment. The minimum rental commitments
         under noncancellable leases, with terms in excess of one year are as
         follows:

<Table>
<S>                                                            <C>
         Fiscal year ending October 31:
             2002                                              $      7,324
             2003                                                     4,607
             2004                                                     2,495
             2005                                                     1,650
             2006                                                       918
             Thereafter                                               2,581
                                                               ------------
                                                               $     19,575
                                                               ============
</Table>


(6)      SPECIAL TERM DEPOSIT

         The Special Term Deposit represents a deposit made in a foreign bank as
         collateral for a loan made to Doe Run Mining. See further discussion in
         Note 8.


                                       41
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



(7)      ACCRUED LIABILITIES

         Accrued liabilities consist of the following:

<Table>
<Caption>
                                                                          OCTOBER 31,
                                                                   ---------------------------
                                                                       2001           2000
                                                                   ------------   ------------

<S>                                                                <C>            <C>
         Interest                                                  $      6,236   $      6,576
         Reclamation and environmental                                    6,918          4,988
         Property taxes                                                   5,082          4,678
         Payroll, related taxes and employee benefits                    19,966         20,673
         Other                                                           20,127         13,560
                                                                   ------------   ------------

                                                                   $     58,329   $     50,475
                                                                   ============   ============
</Table>

         Reclamation and environmental costs represents the estimate of
         reclamation and environmental spending for the following fiscal year.
         See Note 16.


(8)      DEBT

         Long-term debt consists of the following:

<Table>
<Caption>
                                                                                               OCTOBER 31,
                                                                                       ---------------------------
                                                                                           2001           2000
                                                                                       ------------   ------------

<S>                                                                                    <C>            <C>
         Revolving credit facilities                                                   $     58,375   $     57,891
         11.25% unsecured senior notes due March 15, 2005                                   200,000        200,000
         Floating interest rate unsecured senior notes due March 15,
             2003, effective rate of 9.38% at October 31, 2001                               55,000         55,000
         11.25% secured senior notes due March 15, 2005, less unamortized
             discount of $2,728 and $3,536 at October 31, 2001 and 2000,
             respectively                                                                    47,272         46,464
         Note payable to foreign bank                                                       125,000        125,000
         Deferred purchase price obligation, no stated interest rate                              -          1,382
         Note payable, interest payable at 9.89%, maturing July 6, 2009                           -          5,224
         Note payable, no stated interest rate                                                  178              -
         Sale and leaseback obligations                                                       9,393         12,912
         Capital leases                                                                         763            321
                                                                                       ------------   ------------

                                                                                            495,981        504,194
         Less current maturities                                                             62,611          5,508
                                                                                       ------------   ------------

                    Long-term debt, less current maturities                            $    433,370   $    498,686
                                                                                       ============   ============
</Table>


         The Company has available two revolving credit facilities. The first
         facility allows the Company to borrow up to $100,000 and expires
         January 15, 2003. The availability of loans under the facility is
         limited to a percentage of eligible U.S. accounts receivable and
         inventories, less any outstanding loans and letters of credit. The
         facility bears interest at the prime rate plus .75% per annum for an
         effective rate of 6.75% at October 31, 2001. The Company is also
         obligated to pay an unused line fee equal to .25% on the amount by
         which the maximum credit


                                       42
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



         of $100,000 exceeds the average daily balance of outstanding loans and
         letters of credit. The facility is secured by accounts receivable and
         inventories generated by the Company's U.S. operations. All cash
         received from the Company's domestic operations is transferred by wire
         daily to the financial institutions to pay down the outstanding loan
         balance, if any. Revolving loans outstanding under this facility were
         $37,375 and $24,891 at October 31, 2001 and 2000, respectively. Actual
         availability was $1,796 at October 31, 2001 and $9,823 at March 31,
         2002.

         On January 4, 2002, the Company entered into an amendment of its U.S.
         revolving credit facility. The amendment increased the interest rate by
         .25% to prime plus 1%, reduced the maximum credit to $75,000, reduced
         the maximum available to borrow based on eligible inventory from
         $50,000 to $35,000 and temporarily eased a reserve against calculated
         availability which gradually reverted back to a $5,000 reserve on March
         14, 2002. The amendment provided for supplemental loans of up to
         $5,000. Renco provided the lender with $5,000 million of cash
         collateral and a limited guarantee of $2,000. See Note 2 for details of
         the credit support provided by Renco. The amendment also waived,
         through February 27, 2002, existing defaults resulting from the
         Company's failure to maintain consolidated net worth and EBITDA for
         U.S. operations, as required by the agreements governing the credit
         facility. On February 28, 2002, the Company's lender issued a letter
         that extended this waiver through March 14, 2002.

         The second facility allows Doe Run Peru to borrow up to $40,000 and
         expires June 19, 2002. In addition, the lender approved an independent
         line of $12,000 for the issuance of guarantee letters. Unlike the
         Revolving Credit Facility, this independent line is not committed and
         is subject to modification or cancellation at the option of the lender.
         The sum of the advances on both of these lines is limited to $42,000.
         The Doe Run Peru facility bears interest at LIBOR (1-month, 3-month or
         6-month rate, depending on the term of the loan) plus 2.0% per annum.
         The facility is secured by accounts receivable and inventories
         generated by the Company's Peruvian operations. The effective rate was
         6.59% at October 31, 2001. An unused line fee of .375% per annum on the
         average unused portion of the line is payable quarterly, in arrears.
         Availability of loans under the facility is limited to a percentage of
         Doe Run Peru's eligible accounts receivable and inventories, less any
         outstanding loans and letters of credit. Revolving loans outstanding
         under this facility were $21,000 and $33,000 at October 31, 2001 and
         2000, respectively. Actual availability was $9,692 at October 31, 2001
         and $2,402 at March 31, 2002. The Company is currently in negotiations
         with its lender to extend the facility, but has not yet received any
         commitment.

         The $200,000 11.25% senior notes (the Fixed Rate Notes) and $55,000
         Floating Interest Rate Senior Notes due 2003 (collectively, the
         Unsecured Notes) are guaranteed by certain subsidiaries of the Company.
         See Note 18 for disclosures regarding guarantor subsidiaries. The
         Company used $125,000 of the proceeds from the Unsecured Notes to make
         the Special Term Deposit into a foreign bank, which in turn loaned such
         amount to Doe Run Peru. The Special Term Deposit and note payable to
         the foreign bank have payment terms that match the timing and amount of
         the payments on $125,000 of the Fixed Rate Notes, except that
         additional interest of 0.25% through September 11, 2004 is payable on
         the note payable to the foreign bank. The note payable to the foreign
         bank is collateralized by the Special Term Deposit.

         The 11.25% senior secured notes (the Secured Notes) have a face value
         of $50,000 and are secured by the property, plant and equipment
         acquired and are guaranteed by certain subsidiaries of the Company. See
         Note 18.

         The deferred purchase price obligation was payable to the former owner
         of the Company's Peruvian subsidiary for mining assets purchased. The
         last of three annual payments of $1,495 was made in August 2001. The
         note had no stated interest rate and the balance at October 31, 2000
         was discounted to an effective rate of 10%.


                                       43
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         The 9.89% note payable outstanding at October 31, 2000 financed the
         purchase of certain equipment, and was secured by that equipment. The
         equipment was sold in the current year, and the note paid off with the
         proceeds. In doing so, the Company incurred prepayment penalties of
         $314, for which it signed a noninterest-bearing note, payable in 36
         monthly installments, commencing November 1, 2001. The new note was
         discounted to a fair value of $159.

         In January 1999, Doe Run Peru finalized an agreement for the sale and
         leaseback of its oxygen plant at the La Oroya facility for $17,162. Doe
         Run Peru has an option to repurchase the oxygen plant at the end of the
         five-year lease term for $200. In April 1999, Doe Run Peru entered into
         a sale and leaseback of computer equipment for $761. These transactions
         have been accounted for as financing arrangements. The interest rates
         applicable under the oxygen plant and computer equipment leases are
         12.35% and 8.50%, respectively.

         A capital lease for computer equipment caused property, plant and
         equipment, prepaid expenses and long term debt to increase by $647, $99
         and $746, respectively, during the year ended October 31, 2001.

         The aggregate estimated amounts of long-term debt maturing after
         October 31, 2001 are as follows:

<Table>
<S>                                                       <C>
         Fiscal year ending October 31:
             2002                                         $    62,611
             2003                                              59,459
             2004                                               1,639
             2005                                             372,272
                                                          -----------

                                                          $   495,981
                                                          ===========
</Table>


         At October 31, 2001, the Company's various debt agreements contained
         certain requirements with respect to net worth, a limitation on capital
         expenditures in the U.S., and requirements for earnings before
         interest, taxes, depreciation, depletion and amortization (EBITDA).
         These agreements also place limitations on dividend payments and other
         outside borrowings. The Company was in violation of its net worth and
         EBITDA covenants at October 31, 2001 but had received a waiver of any
         violations through March 14, 2002, through the amendment and subsequent
         extension discussed previously. Accordingly, the balance under the U.S.
         revolving credit facility is classified as current.

         Due to the non-payment of interest due March 15, 2002 on the 11 1/4%
         Senior Notes due 2005, Floating Interest Rate Senior Notes due 2003 and
         11 1/4% Senior Secured Notes due 2005 (collectively, the Notes), and
         the expiration of the grace period during which the Company could cure
         the non-payment, and the violation of other financial covenants, the
         Company is in default of its covenants under the Notes indentures and
         its revolving credit facilities. In an event of default, the lenders
         have the right to accelerate the payment of any unpaid principal and
         interest balances. No actions have been taken by the lenders to
         accelerate the payment of outstanding debt balances. The Company is in
         restructuring negotiations as described below and in negotiations with
         the lenders of its revolving credit facilities to execute amended
         revolving credit facilities.

         On April 15, 2002, the Company announced that it had reached an
         agreement in principle with Renco and Regiment Capital Advisors, LLC
         (Regiment) for Renco and Regiment to provide the Company with
         significant capital for the purpose of restructuring its existing debt.
         Pursuant to the agreement in principle, Renco will purchase $20 million
         of the Company's preferred stock and Regiment, a significant holder of
         the Notes, will commit to lend the Company $35 million and will offer
         other holders of Notes the opportunity to participate in making such
         loan.


                                       44

<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



         Under the proposed restructuring transaction, the Company would make a
         cash tender offer for a portion of the Notes and an exchange offer for
         the balance of the Notes. The $55 million in proceeds of the Renco
         investment and the loan, together with borrowings under its revolving
         credit facility would be used to finance the cash tender offer, to pay
         the accrued interest as of March 15, 2002 on the Notes exchanged in the
         exchange offer and to pay certain costs of the transactions. If
         successful, the cash tender offer and the exchange offer would
         significantly reduce the Company's future debt service and provide
         sufficient liquidity to continue to operate all its facilities at
         present levels and will not adversely affect the Company's
         trade creditors.

         The non-binding agreement in principle is subject to agreement on the
         terms of definitive documentation and the successful completion of the
         transactions is subject to several conditions, including, among others,
         the participation by holders of at least 90% of the aggregate principal
         amount of each class of Notes in the cash tender offer and/or the
         exchange offer and the satisfactory modification of Doe Run's United
         States and Peruvian revolving credit facilities.

         Doe Run Peru has had available from time to time unsecured and
         uncommitted lines of credit and additional availability for letters of
         credit and custom bonds provided by local banks. Borrowings take the
         form of short-term notes, with interest rates determined at the
         borrowing date. Borrowings under the unsecured and uncommitted lines of
         credit were $0 and $9,316 at October 31, 2001 and 2000, respectively.

(9)      FAIR VALUE OF FINANCIAL INSTRUMENTS

         At October 31, 2001 and 2000, the fair values of the Company's
         financial instruments, except for long-term debt and the hedge
         positions described in Note 15, were not materially different from
         their carrying amounts.

         The fair values of the Company's long-term debt were based on the
         estimates of incremental borrowing rates for similar types of borrowing
         arrangements or dealer quotes. The fair value of the Company's
         long-term debt was approximately $291,109 and $327,042 at October 31,
         2001 and 2000, respectively.

(10)     INCOME TAXES

         On January 15, 1999, Renco filed an election, with the consent of its
         shareholders, with the Internal Revenue Service to change its taxable
         status from that of a subchapter C corporation to that of a subchapter
         S corporation, effective November 1, 1998. At the same time, Renco
         elected for the Company to be treated as a qualified subchapter S
         subsidiary (QSSS). Most states in which the Company operates will
         follow similar tax treatment. QSSS status requires the ultimate
         shareholders to include their pro rata share of the Company's income or
         loss in their individual tax returns. The election does not affect
         foreign income taxes related to the Company's foreign subsidiaries. As
         a result of this change in tax status, the elimination of federal and
         most state deferred tax assets and liabilities for income tax purposes
         totaling $6,200 was recorded as income tax.

         Doe Run Cayman is subject to the regulations of the Cayman Islands,
         which currently have no corporate income or capital gains tax. Doe Run
         Cayman's subsidiaries located in Peru are subject to Peruvian taxation.
         The statutory income tax rate in Peru is 30%. Doe Run Peru has obtained
         a ten-year tax stabilization agreement with the Peruvian government,
         which provides for Peruvian taxation based on tax statutes and
         regulations prevailing on November 6, 1997, beginning with the Peruvian
         tax year ending on December 31, 1997 through December 31, 2006.


                                       45
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         Income tax expense is comprised of the following:

<Table>
<Caption>
                                                     YEAR ENDED OCTOBER 31,
                                          --------------------------------------------
                                              2001            2000            1999
                                          ------------    ------------    ------------
<S>                                       <C>             <C>             <C>
         Current:
             Federal                      $          -    $          -    $        238
             State                                   -               -               -
             Foreign                               555           5,222           3,342
                                          ------------    ------------    ------------

                                                   555           5,222           3,580
                                          ------------    ------------    ------------
         Deferred:
             Federal                                 -               -           6,200
             Foreign                             7,671          (3,469)         (6,292)
                                          ------------    ------------    ------------

                                                 7,671          (3,469)            (92)
                                          ------------    ------------    ------------

                                          $      8,226    $      1,753    $      3,488
                                          ============    ============    ============
</Table>

         As a result of the change in tax status, the Company was not subject to
         federal income taxation for the years ended October 31, 2001, 2000 and
         1999.

         The deferred tax expense in fiscal 2001 results from the increase in
         the valuation allowance resulting from the assessment of the Company's
         ability to use loss carryforwards in the future, see Note17. Current
         tax expense decreased as a result of a merger between Doe Run Mining
         and Doe Run Peru, offsetting taxable income of Doe Run Mining with
         losses of Doe Run Peru.

         The income tax expense recorded in the consolidated statement of
         operations for the year ended October 31, 1999 reflects primarily: 1)
         deferred federal income tax expense of $6,200 relating to the
         elimination of net U.S. federal and state deferred tax assets,
         including related valuation allowances, as a result of the change in
         tax status, 2) current U.S. federal income tax expense resulting from
         the change in tax status, which will be paid by Renco and 3) the income
         tax provision of the Company's Peruvian subsidiaries. The net deferred
         income tax benefit generated by the Peruvian subsidiaries for the years
         ended October 31, 2000 and 1999 results primarily from the recognition
         of benefits related to tax losses generated in 2000 and 1999 and to the
         recognition in 1999 of an acquired tax loss of Cobriza for which no
         previous benefit was recognized.


                                       46
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



         The tax effects of temporary differences that give rise to significant
         portions of the deferred tax assets and deferred tax liabilities are as
         follows:

<Table>
<Caption>
                                                                            OCTOBER 31,
                                                                   ----------------------------
                                                                       2001            2000
                                                                   ------------    ------------
<S>                                                                <C>             <C>
         Deferred tax assets:
             Inventories                                           $        148    $      1,959
             Property, plant and equipment                               20,313          27,275
             Accrued liabilities                                          1,017           1,348
             Tax loss carryforwards                                      20,623          12,315
             Other noncurrent assets and liabilities                      3,167           2,851
                                                                   ------------    ------------
                                                                         45,268          45,748
             Less valuation allowance                                   (30,159)        (25,903)
                                                                   ------------    ------------
                    Total deferred tax assets                            15,109          19,845
                                                                   ------------    ------------

         Deferred tax liabilities:
             Inventories and other current assets                             -            (628)
             Property, plant and equipment                              (15,109)        (12,027)
                                                                   ------------    ------------
                    Total deferred tax liabilities                      (15,109)        (12,655)
                                                                   ------------    ------------

                    Net deferred tax assets                        $          -    $      7,190
                                                                   ============    ============
</Table>

         The deferred tax balances as of October 31, 2001 and 2000 relate solely
         to the Company's Peruvian subsidiaries. The deferred tax assets and
         liabilities related to property, plant and equipment are principally
         due to differences in book and tax allocations of the excess of the
         fair value of the sum of assets acquired, less liabilities assumed over
         the purchase price paid and accelerated depreciation methods used for
         tax purposes.

         Net operating loss carryforwards in Peru are available for use for four
         years beginning with the first year the Company has taxable income
         against which it can take a credit.

         Management believes that sufficient uncertainty exists regarding the
         realization of certain deferred tax assets and that a valuation
         allowance is required. The valuation allowance increased (decreased)
         $4,256 and $(7,180) in the years ended October 31, 2001 and 2000,
         respectively. The increase in the valuation allowance reflects a change
         in management's assessment regarding the future realization of deferred
         tax assets as a result of current projections of liquidity and taxable
         income, see Note 17. Benefits were realized in 2000 relating to certain
         deferred tax assets against which a valuation allowance had previously
         been provided.

(11)     EMPLOYEE BENEFITS

         DOMESTIC PLANS

               DEFINED BENEFIT PLANS

         The Company sponsors a noncontributory defined benefit plan for its
         U.S. and expatriate employees. Benefits provided to salaried employees
         under the defined benefit plan are based on final average compensation
         and years of service. Benefits provided to hourly employees are based
         on a flat rate and years of service. The Company has also adopted a
         supplemental defined benefit plan, The Supplemental Employee Retirement
         Plan (SERP), effective November 1, 1996. The SERP provides benefits to
         those participants of the defined benefit plan whose benefits under the
         plan are limited by Sections 401(a)(17) or 415 of the Internal Revenue
         Code. Benefits under the SERP


                                       47
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



         represent the amount by which the benefits under the defined benefit
         plan, if such benefits were not limited, exceed those benefits the
         participants are entitled to receive. The SERP plan is unfunded.

         Net periodic pension expense is comprised of the following:

<Table>
<Caption>
                                                                              YEAR ENDED OCTOBER 31,
                                                                   --------------------------------------------
                                                                       2001            2000            1999
                                                                   ------------    ------------    ------------
<S>                                                                <C>             <C>             <C>
         Service cost                                              $      1,938    $      2,330    $      2,323
         Interest cost on projected benefit obligation                    5,180           4,841           4,435
         Expected return on assets                                       (6,026)         (5,262)         (4,622)
         Net amortization and deferral of unrecognized net
             losses                                                          93             164             761
         Special termination benefits                                     1,570               -               -
                                                                   ------------    ------------    ------------
                    Net periodic pension expense                   $      2,755    $      2,073    $      2,897
                                                                   ============    ============    ============
</Table>

         The following assumptions were used in the determination of net
         periodic pension expense:

<Table>
<Caption>
                                                            YEAR ENDED OCTOBER 31,
                                                       ------------------------------
                                                         2001       2000       1999
                                                       --------   --------   --------
<S>                                                        <C>        <C>        <C>
         Discount rates                                    7.10%      7.75%      7.50%
         Rate of increase in compensation levels           3.00%      3.00%      3.00%
         Expected long-term rate of return on assets       9.00%      9.00%      9.00%
</Table>

         The following table sets forth the funded status of the Company's
         defined benefit plan:

<Table>
<Caption>
                                                                  OCTOBER 31,
                                                         ----------------------------
                                                             2001            2000
                                                         ------------    ------------
<S>                                                      <C>             <C>
         Change in benefit obligation:
              Beginning of year                          $     67,841    $     64,360
              Service cost                                      1,938           2,330
              Interest cost                                     5,180           4,841
              Actuarial (gains)/losses                          4,218            (278)
              Plan amendments                                       -               7
              Benefits paid                                    (3,930)         (3,420)
              Special termination benefits                      1,570               -
                                                         ------------    ------------
              End of year (a)                            $     76,817    $     67,841
                                                         ============    ============
</Table>

         (a) Includes accumulated benefit obligation related to the SERP plan of
             $3,297 and $3,534, respectively

<Table>
<S>                                                      <C>             <C>
         Change in plan assets:
              Beginning of year at fair value            $     68,767    $     59,299
              Actual return on plan assets                    (10,064)         11,203
              Employer contributions                              289           1,685
              Benefits paid                                    (3,930)         (3,420)
                                                         ------------    ------------
              End of year at fair value                  $     55,062    $     68,767
                                                         ============    ============
</Table>

                                       48
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                                                     OCTOBER 31,
                                                                             ----------------------------
                                                                                 2001            2000
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
         Reconciliation of funded status:
            Plan assets (projected benefit obligation) in excess of
                projected benefit obligation (plan assets)                   $    (21,755)   $        926
              Unamortized net transition asset                                        547             587
              Unrecognized actuarial (gains) losses                                19,701            (548)
              Unrecognized prior service cost                                          19              13
                                                                             ------------    ------------
                   Net amount recognized                                     $     (1,488)   $        978
                                                                             ============    ============

         Amounts recognized in the balance sheet:
             Prepaid benefit cost - noncurrent                               $          0    $      2,456
             Intangible asset                                                         897             207
             Accrued benefit liability - current                                      (20)            (20)
             Accrued benefit liability - noncurrent                               (15,627)         (2,870)
             Accumulated other comprehensive income                                13,262           1,205
                                                                             ------------    ------------
                    Net asset (liability) at end of year                     $     (1,488)   $        978
                                                                             ============    ============
</Table>


         The special termination benefits relate to an early retirement
         incentive that was offered to certain eligible employees retiring
         between November 1, 2001 and January 1, 2002. The early retirement
         incentive provided an enhanced retirement benefit based on years of
         benefit service and age compared to what is normally provided for in
         the plan.

         POSTRETIREMENT BENEFIT PLANS

         The Company sponsors three postretirement medical plans for its U.S.
         and expatriate employees. Two of these plans are self-insured plans.
         The plans generally cover medical expenses subject to deductibles,
         copayments and limits on specified coverage. For persons retired on or
         before January 1, 1992, the retiree's contribution to the cost of these
         plans varies primarily based upon the date of retirement and the
         respective plan. Effective January 1, 1992, the Company's contribution
         to the cost of coverage of employees retiring after that date decreased
         gradually, until, beginning in 1997, retirees pay 100% of the cost of
         coverage. The Company maintains stop-loss insurance for claims
         exceeding $200 per person in any calendar year for those plans that are
         self-insured.

         Net periodic postretirement benefit cost includes the following
         components:

<Table>
<Caption>
                                                                                        OCTOBER 31,
                                                                        --------------------------------------------
                                                                            2001            2000            1999
                                                                        ------------    ------------    ------------

<S>                                                                     <C>             <C>             <C>
         Service cost                                                   $         58    $         59    $         85
         Interest cost                                                           677             729             709
         Amortization of gains                                                  (150)            (93)            (57)
         Special termination benefits                                            988               -               -
                                                                        ------------    ------------    ------------
                    Net periodic postretirement benefit cost            $      1,573    $        695    $        737
                                                                        ============    ============    ============
</Table>


                                       49
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         The postretirement benefit plans are unfunded. The following
         illustrates the Company's postretirement benefit obligation:

<Table>
<Caption>
                                                                                     OCTOBER 31,
                                                                             ----------------------------
                                                                                 2001            2000
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
         Change in benefit obligation:
             Beginning of year                                               $      9,996    $     10,333
             Service cost                                                              58              59
             Interest cost                                                            677             729
             Actuarial (gains)/losses                                                (363)           (347)
             Benefits paid                                                           (628)           (778)
             Special termination benefits                                             988               -
                                                                             ------------    ------------
             End of year                                                     $     10,728    $      9,996
                                                                             ============    ============

         Reconciliation of funded status:
             Projected benefit obligation in excess of plan assets           $    (10,728)   $     (9,996)
             Unrecognized actuarial gains                                          (3,102)         (2,889)
                                                                             ------------    ------------
                  Accrued postretirement benefit cost                        $    (13,830)   $    (12,885)
                                                                             ============    ============

             Current portion                                                 $       (953)   $       (953)
             Noncurrent portion                                              $    (12,877)   $    (11,932)
</Table>

         The weighted average annual assumed rate of increase in the per capita
         cost of covered benefits (i.e., health care cost trend rate) for the
         medical plans was 8% for fiscal 2001, with a decrease to 5% over 6
         years, remaining level thereafter. A one percentage point
         increase/(decrease) in each year would increase/(decrease) the
         accumulated postretirement benefit obligation and the net periodic
         postretirement benefit cost by $552/$(530) and $36/$(35), respectively.

         The special termination benefits relate to the early retirement
         incentive discussed above with respect to the defined benefit plan.
         Most of the employees accepting the incentive received healthcare
         coverage benefits for up to seven years at a cost that would not
         normally be available to retirees, a portion of which will be covered
         by the Company.

               DEFINED CONTRIBUTION PLANS AND PROFIT SHARING PROGRAM

         The Company sponsors a 401(k) plan that covers substantially all U.S.
         and expatriate employees. Participants can contribute up to 15% of
         compensation on a before-tax basis. The Company's mandatory match under
         the plan is 25% of the first 6% of a participant's before-tax
         contribution. The Company may make additional contributions at
         management's discretion. For the fiscal year ended October 31, 2001,
         the Company increased the match to 40% of the first 6% of a
         participant's before-tax contribution. The Company's expense
         representing its matching contribution was $1,101, $686, and $607 for
         the years ended October 31, 2001, 2000 and 1999, respectively. Plan
         assets consist primarily of investments in common stock and debt
         securities.

         The Company has a profit sharing program, which covers substantially
         all U.S. employees. The program provides for a distribution to
         employees equal to 15% of U.S. income before income tax expense, plus
         any extraordinary items, excluding the related tax effect. At
         management's discretion, a portion of the distribution may be made in
         the form of a contribution to the 401(k) plan. The remainder is paid in
         cash to employees. The Company had no expense for the years ended
         October 31, 2001, 2000 and 1999 as a result of losses before income tax
         expense in the U.S.


                                       50
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


               FOREIGN PLANS

         Doe Run Peru is required to make semiannual deposits into a bank
         account for severance indemnity benefits for Peruvian employees under
         Peruvian government regulations. The balance in the account represents
         the full benefit due to such employees upon termination. The Company
         accrues for the additional amount that would be contributed to the
         account since the last deposit date as if all such employees were to
         terminate as of the balance sheet date. The Company's expense related
         to severance indemnity benefits was $2,946 $2,951 and $2,786 for the
         years ended October 31, 2001, 2000 and 1999, respectively.

         In accordance with government regulations in Peru, employees are
         entitled to receive 8% of the Doe Run Peru's taxable income, 50% of
         which is distributed to employees based on number of days worked, and
         the remaining distributed in proportion to their salaries. Such profit
         sharing, which is tax deductible, is limited to 18 times the annual
         salary for each worker. Any excess is to be reserved and used for
         training of the workers. The Company had no expense relating to
         workers' profit sharing payments years ended October 31, 2001, 2000 and
         1999, due to tax losses in those years.

         In addition, the Company recorded a deferred workers' profit sharing
         asset of $0 and $2,094 at October 31, 2001 and 2000, respectively,
         representing the amount the Company expects to recover through future
         reduction of workers' profit sharing payments.

(12)     BUSINESS AND CREDIT CONCENTRATIONS

         Metal prices fluctuate and are affected by numerous factors beyond the
         Company's control, including expectations for inflation, speculative
         activities, the relative exchange rate of the U.S. dollar, global and
         regional demand and production, political and economic conditions and
         production costs in major producing regions. The aggregate effect of
         these factors makes it impossible for the Company to predict metal
         prices. Fluctuations in metal prices could have a material adverse
         effect on the results of operations, financial condition and liquidity
         of the Company.

         For the years ended October 31, 2001, 2000 and 1999, approximately 67%,
         70%, and 65%, respectively, of the Company's U.S. operations' revenues
         from unaffiliated customers were from U.S. battery manufacturers
         (primarily automotive) or their suppliers. At October 31, 2001 and
         2000, the accounts receivable balances related to these U.S. battery
         manufacturers were $33,425 and $33,239, respectively.

         No single customer accounted for greater than 10% of consolidated
         revenues for the years ended October 31, 2001, 2000 and 1999.

(13)     SEGMENT INFORMATION

         The Company's operating segments are separately managed business units
         that are distinguished by products, location and production process.
         The primary lead segment includes integrated mining, milling and
         smelting operations located in Missouri. The secondary lead segment,
         located in Missouri, recycles lead-bearing feed materials, primarily
         spent batteries. The fabricated products segment produces value-added
         lead products. The Peruvian operations produce an extensive product mix
         of non-ferrous and precious metals through the Company's subsidiary,
         Doe Run Peru.

         The accounting policies of the segments are the same as those described
         in the summary of significant accounting policies, except that the
         primary lead, secondary lead and fabricated products segments value
         finished metals and concentrates, work in process and raw materials
         inventories at FIFO cost. Certain functions are performed at the
         Company's corporate office for the primary lead and secondary lead
         segments, such as sales and billing, as well as


                                       51
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         the general administration of the Company. Related accounts receivable
         and corporate overhead expenses are not allocated to operating
         segments.

<Table>
<Caption>
        OPERATING SEGMENTS - REVENUES                                                 YEAR ENDED OCTOBER 31,
                                                                             ------------------------------------------
                                                                                2001           2000           1999
                                                                             ------------   ------------   ------------
<S>                                                                          <C>            <C>            <C>
           Revenues from external customers:
                Peruvian operations                                          $  434,336     $ 486,075      $  457,434
                Primary lead                                                    194,934       233,372         243,075
                Secondary lead                                                   78,121        67,273          60,016
                Fabricated products                                              25,271        26,231          25,700
                                                                             ------------   ------------   ------------
                          Total                                                 732,662       812,951         786,225
                                                                             ------------   ------------   ------------
           Revenues from other operating segments: (1)
                Peruvian operations                                                   -         1,573           2,898
                Primary lead                                                      3,386         2,535           1,516
                Secondary lead                                                      541           588             745
                Fabricated products                                                   -            23               -
                                                                             ------------   ------------   ------------
                          Total                                                   3,927         4,719           5,159
                                                                             ------------   ------------   ------------
                          Total reportable segments                             736,589       817,670         791,384
           Other revenues (2)                                                     4,820         2,091          14,049
           Intersegment eliminations                                             (3,927)       (4,719)         (5,159)
                                                                             ------------   ------------   ------------
                          Total revenues                                     $  737,482     $ 815,042      $  800,274
                                                                             ============   ============   ============
</Table>


(1)        Transactions between segments consist of metal sales recorded based
           on sales contracts that are negotiated between segments on an
           arms-length basis.
(2)        Other revenues consist of metal sales not attributed to operating
           segments and gains (losses) on hedging transactions.

<Table>
<Caption>
        REVENUES BY COUNTRY (3)                                                        YEAR ENDED OCTOBER 31,
                                                                              -----------------------------------------
                                                                                 2001           2000          1999
                                                                              ------------  ------------- -------------
<S>                                                                          <C>            <C>            <C>
              United States                                                   $  418,915    $  453,732    $  493,163
              Peru                                                                46,892        56,126        68,333
              Japan                                                               55,848        67,918        29,183
              Brazil                                                              67,052        59,555        50,184
              United Kingdom                                                      54,039        48,982        37,379
              India                                                                2,005         5,137        28,890
              Other                                                               92,731       123,592        93,142
                                                                              ------------  ------------- -------------

                   Total revenues                                             $  737,482    $  815,042    $  800,274
                                                                              ============  ============= =============
</Table>


(3)      Revenues are attributed to countries based on destination of shipments.


                                       52
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


<Table>
<Caption>
        OPERATING SEGMENTS - EBITDA (EARNINGS BEFORE INTEREST,                        YEAR ENDED OCTOBER 31,
             TAXES, AND DEPLETION, DEPRECIATION AND AMORTIZATION)            ------------------------------------------
                                                                                 2001           2000          1999
                                                                             -------------  ------------- -------------
<S>                                                                          <C>            <C>            <C>
             Peruvian operations                                             $   37,251     $   44,442    $     51,743
             Primary lead                                                        (1,049)        13,606        28,795
             Secondary lead                                                      16,154         15,316        10,917
             Fabricated products                                                  2,618          2,654         2,464
                                                                             -------------  ------------- -------------
                   Total reportable segments                                     54,974         75,998        93,919
             Other revenues and expenses (4)                                      1,090         (3,155)          109
             Corporate selling, general and administrative expenses             (16,854)       (16,529)      (16,045)
                 Intersegment eliminations                                          (11)             6           157
                                                                             -------------  ------------- -------------
                   Consolidated EBITDA                                           39,199         56,320        78,140
             Depreciation, depletion and amortization                           (30,461)       (30,520)      (31,400)
             Interest income                                                     14,870         14,433        14,755
             Interest expense                                                   (59,992)       (61,595)      (59,417)
             Unrealized gain on derivatives                                       1,764              -             -
                                                                             -------------  ------------- -------------

                   Income (loss) before taxes and extraordinary item         $  (34,620)    $  (21,362)   $    2,078
                                                                             =============  ============= =============
</Table>

       (4) Other revenues and expenses include primarily exploration expenses,
           gains and losses recognized on hedge transactions, and adjustments
           necessary to state inventories at LIFO cost.

<Table>
<Caption>
        OPERATING SEGMENTS - TOTAL ASSETS                                                         OCTOBER 31,
                                                                                         ------------------------------
                                                                                              2001            2000
                                                                                         ---------------  -------------
<S>                                                                                      <C>              <C>
              Peruvian operations                                                        $   241,786      $   282,041
              Primary lead                                                                   129,570          140,088
              Secondary lead                                                                  33,584           30,960
              Fabricated products                                                             12,728           11,979
                                                                                         ---------------  -------------
                    Total reportable segments                                                417,668          465,068
              Unallocated corporate assets (5)                                               234,405          246,766
              Intersegment eliminations                                                      (48,958)         (46,889)
                                                                                         ---------------  -------------
                    Total assets                                                         $   603,115      $   664,945
                                                                                         ===============  =============
</Table>

       (5) Unallocated corporate assets consist primarily of the Special Term
           Deposit, cash, primary lead and secondary lead segments' accounts
           receivable, investments in subsidiaries, pension assets, and deferred
           financing costs.

(14)     COMMITMENTS AND CONTINGENCIES

               INVESTMENT COMMITMENT

         Doe Run Peru is obligated to expend $120,000 through October 23, 2002
         to expand and modernize its operations, including certain expenditures
         to comply with environmental regulations within Peru, as discussed
         below. In the event that Doe Run Peru has not fulfilled its obligations
         under the investment commitment by the end of October 23, 2002, it will
         be obligated to pay a penalty equal to 30% of any shortfall to Empresa
         Minera del Centro del Peru S.A. (Centromin), the previous owner of the
         La Oroya assets. As of October 31, 2001, Centromin had approved
         qualifying expenditures through October 31, 2001 totaling approximately
         $102,712. The Company has planned expenditures for fiscal year 2002
         which management believes will satisfy the investment commitment.


                                       53

<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         However, there can be no assurance that all of these expenditures will
         be completed or that these expenditures will be accepted in their
         entirety as qualifying under the Contract.

               TOLLING

         The Company has entered into tolling arrangements with major battery
         manufacturers whereby the manufacturers will deliver spent lead-acid
         batteries and other lead-bearing material to the Company's recycling
         facility and, for a processing fee, the Company will return finished
         lead metal. The largest of these contracts expire in September and
         December 2003. The agreements cover approximately 10% of the Company's
         anticipated combined primary and secondary lead metal production for
         the 2002 fiscal year.

               SALES

         The Company has commitments to sell approximately 66%, 74%, 75%, 38%
         and 100% of its anticipated 2002 lead, copper, zinc, silver and gold
         metal production, respectively under agreements, with terms of
         generally less than one year. Sales prices are generally based on the
         average quoted exchange prices for the month of shipment, plus a
         premium.

               LETTERS OF CREDIT

         At October 31, 2001, the Company had issued irrevocable standby letters
         of credit totaling $11,211 in connection with the Company's insurance
         and bonding activities. The Company also had outstanding customs bonds
         of $1,945 respectively, relating to concentrate and other purchases.

               EMPLOYMENT AGREEMENTS

         The Company has employment agreements with a number of its senior
         executives through October 31, 2002, with automatic renewal annually
         unless written notice is given at least three months prior to the
         expiration date.

(15)     HEDGING AND DERIVATIVE FINANCIAL INSTRUMENTS

         A significant portion of the Company's sales contracts are priced based
         on an average London Metal Exchange (LME) or other exchange prices for
         the respective metal plus a negotiated premium. As such, the prices of
         the Company's products fluctuate due to factors in the market that are
         beyond the Company's control. These price changes expose the Company to
         variability in its cash receipts. The purpose of the Company's price
         risk management program is to limit the Company's risk to acceptable
         levels, while enhancing revenue through the receipt of option premiums.

         The Company's price risk management program uses various derivative
         instruments in its attempt to mitigate commodity price risks. The
         Company uses purchased futures contracts as a fair value hedge of the
         change in fair value of inventory related to firm sales commitments
         with customers or as a cash flow hedge to lock in the price of lead
         purchases for its fabricated products subsidiary. In fair value hedges,
         the futures contracts are established at terms (quantities, prices and
         timing) that mirror those of the firm commitments. The Company uses
         sold futures contracts as a cash flow hedge to lock in the price of a
         portion of forecasted lead metal sales and to lock in the price of
         by-product sales whose prices are based on an average for a period
         after they are shipped.

         The Company routinely writes call options that, if exercised, will
         create sold futures contracts that will be designated as cash flow
         hedges of forecasted lead metal sales. The options generate premium
         income, which enhance revenues. The Company also uses futures contracts
         and options and combinations thereof to enhance revenue at contract
         prices that are acceptable to the Company, should the options be
         exercised. Because these


                                       54
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         instruments do not meet the requirements for hedge accounting under FAS
         133, the changes in fair market value related to these instruments
         (including the time value portion), which reflect market prices and
         volatility at the balance sheet date, are recorded in results of
         operations, and are expected to increase the volatility of reported
         results.

         The unrealized gain reflected in the consolidated statement of
         operations relates to the change in fair market value of derivative
         financial instruments that are not designated as hedges. For derivative
         instruments designated as hedges (futures contracts), the Company
         assesses effectiveness based on changes in the forward rate, and as a
         result, does not expect hedge ineffectiveness.

         The fair market value of the Company's derivative financial instruments
         reflected in the Company's balance sheet as of October 31, 2001 is the
         difference between quoted prices at the balance sheet date and the
         contract settlement value. The fair market value represents the
         estimated net cash the Company would receive (pay) if the contracts
         were canceled on the balance sheet date.

         The Company's open derivative financial instruments at October 31, 2001
         were:

           SOLD (PURCHASED) FUTURES CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                        WEIGHTED                FAIR MARKET
              METAL            QUANTITY              AVERAGE PRICE                 VALUE                 PERIOD
        ----------------  -------------------- ---------------------------- -----------------  -----------------------
        <S>                <C>                     <C>                       <C>                <C>
        Lead (Hedges)          (4,959) tons           $478.90/ton             $      (81,167)      Nov. 01 to Aug. 02
        Lead (Other)           (8,902) tons           $447.86/ton                   (284,375)      Nov. 01 to Jan. 02
        Copper (Other)            500  tons          $1,771.00/ton                   286,550       Nov. 01
                                 (564) tons          $1,775.27/ton                  (260,626)      Nov. 01 to Dec. 01
        Zinc (Hedges)            (331) tons          $1,010.15/ton                  (104,346)      Jan. 02
        Zinc (Other)              552  tons           $682.00/ton                       (850)      Nov. 01
                               (1,984) tons           $908.12/ton                   (438,055)      Nov. 01
        Silver                960,022   oz.            $5.18/oz.                   1,283,350       Nov. 01
                           (1,097,168)  oz.            $5.38/oz.                  (1,678,663)      Nov. 01
</Table>

           SOLD (PURCHASED) CALL OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                                                FAIR MARKET
              METAL            QUANTITY               PRICE RANGE                  VALUE                 PERIOD
        ------------------- ---------------- -------------------------------- -----------------  -----------------------
        <S>                 <C>              <C>                              <C>                <C>
        Copper                  3,672  tons  $1,440.00/ton to $1,632.93/ton   $      (18,754)      Nov. 01 to Jun. 02
        Lead                   74,461  tons    $421.84/ton to $789.88/ton           (879,575)      Nov. 01 to Jul. 02
                               (4,960) tons    $444.52/ton to $476.27/ton             39,427       Nov. 01 to Feb. 02
        Zinc                    2,756  tons    $798.00/ton to $997.91/ton             (1,990)      Nov. 01 to Apr. 02
        Silver                658,301    oz.     $4.01/oz. to $4.56/oz.              (40,944)      Nov. 01 to Mar. 02
        Gold                    5,925    oz.   $246.09/oz. to $252.47oz.             (83,623)      Dec .01
</Table>


                                       55
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



           SOLD (PURCHASED) PUT OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                                                FAIR MARKET
              METAL            QUANTITY               PRICE RANGE                  VALUE                 PERIOD
        ------------------- ---------------- -------------------------------- -----------------  -----------------------
        <S>                  <C>              <C>                             <C>                <C>
        Copper                  2,018  tons   $1360.78/ton to $1587.57/ton    $     (680,655)      Nov. 01 to Jun. 02
        Lead                   39,462  tons    $421.84/ton to $444.52/ton           (812,012)      Nov. 01 to Jun. 02
                               (8,322) tons    $430.91/ton to $439.98/ton            173,109       Nov. 01 to Jun. 02
        Zinc                    2,205  tons   $952.54/ton to $1,001.53/ton          (625,910)      Nov. 01 to Jun. 02
        Silver                482,754    oz.     $3.82/oz. to $3.92/oz.              (66,602)      Jan. 02 to Mar.02
        Gold                    8,119    oz.          $236.98/oz.                    (17,588)      Mar. 02
</Table>

         At October 31, 2001, the Company had recorded an asset of $1,593 and a
         liability of $5,872 related to the fair market values of these
         instruments. The Company also had recorded an asset of $178 for the
         fair value of firm commitments designated as the hedged item in fair
         value hedges. The balance of $(8) in comprehensive income will be
         recognized in earnings as the forecasted sales/purchases occur through
         December 2001.

         The Company's open derivative financial instruments at October 31, 2000
         were:

           FUTURES SALES (PURCHASE) CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                                                   FAIR
               METAL           QUANTITY               PRICE RANGE              MARKET VALUE             PERIOD
           --------------- ------------------ -----------------------------   ---------------- -------------------------
           <S>             <C>                <C>                             <C>              <C>
           Lead              40,509  tons       $.1988/lb. to $.2400/lb.      $     (403,000)    Nov. 00 to Dec. 01
           Copper            (4,325) tons       $.8140/lb. to $.9072/lb.            (669,619)    Nov. 00 to Mar. 01
           Zinc              (5,897) tons       $.4967/lb. to $.5498/lb.            (157,943)    Nov. 00 to Jun. 01
           Silver          (175,000)   oz        $5.59/oz. to $5.70/oz.             (217,975)    Nov. 00
</Table>

           SOLD CALL OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                                                   FAIR
               METAL           QUANTITY               PRICE RANGE              MARKET VALUE             PERIOD
           --------------- ------------------ -----------------------------   ---------------- -------------------------
           <S>             <C>                <C>                             <C>                <C>
           Copper             12,973 tons       $.7800/lb. to $.9000/lb.      $   (1,544,285)    Nov. 00 to Aug. 01
           Lead               72,890 tons       $.2041/lb. to $.2404/lb.          (1,480,600)    Nov. 00 to Feb. 02
           Zinc                4,904 tons       $.5216/lb. to $.5670/lb.             (15,470)    Nov. 00 to Apr. 01
           Silver            150,000   oz.       $5.00/oz. to $5.10/oz.               (4,200)    Nov. 00 to Dec. 00
           Gold                3,000   oz.        $285/oz. to $290/oz.                (2,600)    Nov. 00 to Dec. 00
</Table>

SOLD PUT OPTION CONTRACTS (NUMBERS NOT IN THOUSANDS)

<Table>
<Caption>
                                                                                   FAIR
               METAL           QUANTITY               PRICE RANGE              MARKET VALUE             PERIOD
           --------------- ------------------ -----------------------------   ---------------- -------------------------
           <S>             <C>                  <C>                           <C>              <C>
           Copper              1,261 tons       $.8200/lb. to $.8845/lb.      $     (275,000)    Nov. 00 to Feb. 01
           Lead               19,566 tons       $.2063/lb. to $.2223/lb.            (112,300)    Nov. 00 to Apr. 01
           Zinc                6,560 tons       $.4876/lb. to $.5443/lb.            (260,500)    Nov. 00 to May. 01
           Silver            200,000   oz.       $4.70/oz. to $4.85/oz.              (22,500)    Nov. 00 to Dec. 00
           Gold                3,000   oz.        $270/oz. to $280/oz.               (33,700)    Nov. 00 to Dec. 00
</Table>


                                       56
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)



         Sold put option contracts used by the Company to offset certain fixed
         price sales to customers did not meet the definition of a hedge prior
         to the adoption of FAS 133, and the net mark to market adjustment
         related to these contracts was a loss of $242, for the year ended
         October 31, 2000. No net mark to market adjustment was required in the
         year ended October 31, 1999.

         The Company does not obtain collateral or other security to support
         hedge instruments subject to credit risk, but assesses the reliability
         and reputation of its counterparties before contracts are established.

(16)     ENVIRONMENTAL AND LITIGATION MATTERS

         ENVIRONMENTAL

         The Company has recorded a liability of approximately $30,110 as of
         October 31, 2001, which represents management's best estimate of known
         obligations relating to the environmental and reclamation matters that
         are discussed below.

               DOMESTIC OPERATIONS

         The Company is subject to numerous federal, state and local
         environmental laws and regulations governing, among other things, air
         emissions, waste water discharge, solid and hazardous waste treatment,
         and storage, disposal and remediation of releases of hazardous
         materials. In common with much of the mining industry, the Company's
         facilities are located on sites that have been used for heavy
         industrial purposes for decades and may require remediation. The
         Company has made and intends to continue making the necessary
         expenditures for environmental remediation and compliance with
         environmental laws and regulations. Environmental laws and regulations
         may become more stringent in the future which could increase costs of
         compliance.

         Primary smelter slag produced by and stored at the primary smelter in
         Herculaneum, Missouri is currently exempt from hazardous waste
         regulation under the Resource Conservation and Recovery Act of 1976, as
         amended (RCRA), but is subject to a state closure permit. The Company
         has accrued approximately $1,000 related to the cost of closure
         pursuant to this permit, which is management's best estimate of closure
         costs under the current requirements of the permit.

         The Company signed a voluntary Administrative Order on Consent (AOC) in
         September 2000 to study and address issues related to the slag pile,
         plant property, community soils adjacent to the primary smelter in
         Herculaneum, elevated blood lead levels in the community and lead
         releases from the plant. The U.S. Environmental Protection Agency (EPA)
         and the Missouri Department of Natural Resources (DNR) signed the AOC
         with an effective date of May 29, 2001. In addition, the Company has
         agreed to replace the soil in yards of private residences within a
         four-tenths of a mile radius of the smelter. The Company also agreed to
         test soils in an area outside the half-mile zone to determine if
         additional remediation is required. In September 2001, the Company
         agreed to an acceleration of the lead testing program on the remaining
         area within one mile of the smelter. As a result of the completion of
         this testing, the Company signed an AOC with the U.S. EPA on December
         21, 2001. The new AOC requires additional yard replacement relating to
         those residences with the highest soil lead measurements and those with
         children. The current total estimated cost of community cleanup
         included in the Company's accrual for remediation costs, is
         approximately $2,600, with the spending to be completed by the end of
         calendar 2002. At this time, it is not possible to determine the
         outcome of the remaining areas of study or what additional
         remediation actions, if any, may be required after the study is
         completed. Estimated costs may change if required levels of
         remediation are different than currently estimated or if additional
         homes are identified as a result of additional regulatory decisions.


         On April 26, 2002, the Company signed a Settlement Agreement with
         the State of Missouri whereby it agreed to offer buyouts to
         approximately 160 homeowners in an area close to the smelter. Under
         the terms of the proposed


                                    57


<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         buyout plan, an estimated 26 homeowners, each having children less
         than 72 months old living in them, would be offered immediate buyouts
         with the remaining affected homeowners to be extended buyout offers
         by the end of 2004. The amount to be paid to the homeowners who
         accept the buyout offer will be based on an appraisal of the
         property's value at August 31, 2001. The accrual for cleanup at
         January 31, 2002 does not include any cost associated with the
         buyout plan, which could be as high as $10,000 if all qualifying
         homeowners accept the Company's buyout offer. Management believes
         that it is highly unlikely that all of the qualifying homeowners will
         accept the offer, but it cannot currently be estimated how many of
         the homeowners will accept the buyout offer, or, if the buyout offer
         is accepted, what the price to be paid for the property will be. The
         Company will attempt to rent out certain purchased houses, once they
         are remediated to the standards required by the regulatory agencies.
         To the extent the Company will be able to rent these properties, the
         fair value will be capitalized. To the extent the properties cannot
         be rented out, or the amount paid exceeds the fair value of the
         property at the buyout date, an impairment loss will be recognized.


         On April 11, 2002, a report in the media contained allegations by
         former employees of improper disposal of hazardous materials on the
         Herculaneum site. The Company does not believe that there has been any
         violation of law and is cooperating with State and federal agencies in
         their investigations into the allegations.

         The Company, working with the Missouri DNR and the Missouri Air
         Conservation Commission, has developed a plan to bring the Herculaneum
         smelter in compliance with the ambient air quality standard for lead
         promulgated under the federal Clean Air Act. The plan was included in a
         consent judgement entered into by the Company in December 2000, and has
         been approved at the state level and by the U.S. EPA. Capital
         expenditures for this plan were $5,900 in fiscal 2001. Future capital
         expenditures are expected to total $4,500 in fiscal 2002, and $1,000 in
         2003. A substantial part of the equipment is now in place and the
         monitors have been reflecting compliance.

         The Company has received notice that it is a potentially responsible
         party (PRP) subject to liability under The Comprehensive Environmental
         Response, Compensation and Liability Act of 1980, as amended (CERCLA)
         at the following sites: six sites in St. Francois County, Missouri,
         including the Big River Mine Tailings site, the Bonne Terre site, the
         Federal site, the National site, the Rivermines site and the Leadwood
         site; the Oronogo-Durenweg site in Jasper County, Missouri; the
         Cherokee County site in Cherokee County, Kansas; the Tar Creek site in
         Ottawa County, Oklahoma; the Block "P" site in Cascade County, Montana;
         and the Missouri Electric Works site in Cape Girardeau, Missouri. There
         are two additional sites in St. Francois County for which the EPA has
         indicated it will issue notice. These sites involve historical
         operations of predecessors of the Company. CERCLA provides for strict
         and, in certain circumstances, joint and several liability for response
         costs and natural resource damages. The Company has a reserve as of
         October 31, 2001 of approximately $7,800 for these sites, including the
         two additional sites in St. Francois County, which the Company believes
         is adequate based on its investigations to date. However, depending
         upon the types of remediation required and certain other factors, costs
         at these sites, individually or collectively, could have a material
         adverse effect on the results of operations, financial condition and
         liquidity of the Company.

         The Company has completed an Engineering Evaluation/Cost Analysis
         (EE/CA) for the Bonne Terre site, and has signed two AOCs to conduct
         removal actions on the west and east portions of the site. Work began
         in late fiscal 2001 and is scheduled for completion within two years.

         The Company signed a voluntary AOC in 1994 with the EPA to remediate
         the Big River Mine Tailings site. The remediation work required by the
         AOC has been substantially completed, and will be followed by
         revegetation and ongoing monitoring and maintenance activities.

         The Company has also signed AOC's to perform an EE/CA on each of the
         National, Rivermines, and Leadwood sites for remediation of the mine
         waste areas at these sites. The National EE/CA is complete, the
         Rivermines EE/CA is due by the end of fiscal 2002 and the Leadwood
         EE/CA is due by the end of fiscal 2003. In addition, the Company has
         signed an AOC with the EPA to conduct a Remedial
         Investigation/Feasibility Study (RI/FS) to


                                    58

<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         assess potential off-site impacts of site operations on and the need
         for remediation regarding groundwater, residential soils, several
         creeks and a river. The initial draft of the RI/FS was submitted in
         early March 2002. The Company has signed an order to conduct interim
         measures until the RI/FS is complete, consisting of blood lead
         testing of young children, residential soil sampling, and limited
         soil remediation as indicated by the testing and sampling results.
         The Company believes the current reserves assigned to these sites
         are adequate. However, should remediation goals or areas change,
         requiring substantially increased measures, there can be no
         assurance that the reserves would be adequate.

         The Company has been advised by the EPA that it is considering taking
         certain response actions at a mine site in Madison County, Missouri
         known as the Mine LaMotte Site. The Company and the owner of the other
         50% share have signed an AOC to conduct an RI/FS at the site. This site
         is substantially smaller than the sites in St. Francois County where
         the Company has been named a PRP, and the potential issues are less
         complex. The Company has also been advised that remediation is required
         at a related small satellite mine site. After conducting an
         investigation, the Company has determined that it was not involved in
         operations at the satellite site. Further review will be required
         before a determination can be made as to whether the Company has any
         liability at the main site. At this time, based on this preliminary
         information and an inspection of the sites, management does not believe
         that any future action will result in a material adverse impact to the
         results of operations, financial condition or liquidity of the Company.

         The Company's Buick recycling facility is subject to corrective action
         requirements under RCRA as a result of a storage permit for certain
         wastes issued in 1989. This will involve remediation of solid waste
         management units at the site, although the plan for corrective action
         has not yet been finalized. The Company has reserves as of October 31,
         2001 of approximately $1,200 for corrective action and $2,900 for
         closure costs for the permitted storage area. While management believes
         these reserves are adequate based on expectations of the closure plan
         requirements, regulators could require that additional measures be
         included in the finalized plan, which could change the estimate of the
         costs for corrective action.

         The Company's domestic operating facilities have wastewater discharge
         permits issued under the federal Clean Water Act, as amended. It is
         possible that stricter discharge limits than previously in effect may
         be included in certain permits now in renewal. If additional treatment
         facilities were required under these permits, capital expenditures of
         approximately $2,500 would be required. Management does not expect an
         appreciable increase in operating costs.

         The Company's mining and milling operations include six mine waste
         disposal facilities that are subject to Missouri mine closure permit
         requirements. Certain closure requirements have already been performed,
         and the remaining estimated cost of future closure activities is
         approximately $7,600. The Company's mine and mill closure reserves were
         approximately $7,500 as of October 31, 2001.

               FOREIGN OPERATIONS

         Doe Run Peru submitted to and received approval from the Peruvian
         government for an Environmental Adjustment and Management Program
         (PAMA) that consisted of an environmental impact analysis, monitoring
         plan and data, mitigation measures and closure plan. The PAMA also sets
         forth the actions and corresponding annual investments the concession
         holder agrees to undertake in order to achieve compliance with the
         maximum applicable limits prior to expiration of the PAMA (ten years
         for smelters, such as Doe Run Peru's operations in La Oroya, and five
         years for any other type of mining or metallurgical operation like
         Cobriza). The required amount of annual investment must not be less
         than one percent of annual sales. Once approved, the PAMA functions as
         the equivalent of an operating permit with which the operator must
         comply. After expiration of the PAMA, the operator must comply with all
         applicable standards and requirements. Future changes in legal rules
         and maximum permissible levels would not be applicable to Doe Run Peru
         for the remaining period of the PAMA.


                                       59
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         Doe Run Peru has committed under its PAMA to implement the following
         projects at its La Oroya smelter through December 31, 2006:

         o  New sulfuric acid plants
         o  Treatment plant for the copper refinery effluent
         o  Industrial waste water treatment plant for the smelter and refinery
         o  Improve Huanchan lead and copper slag deposits
         o  Build an arsenic trioxide deposit
         o  Management and disposal of lead and copper slag wastes
         o  Domestic waste water treatment and domestic waste disposal
         o  Monitoring station

         Through October 31, 2001, the Company had spent approximately $25,000
         on projects under the La Oroya PAMA.

         Annual spending on a calendar year basis approved in the La Oroya PAMA,
         as amended, most recently on January 25, 2002, are as follows:


<Table>
<Caption>
                                                Estimated
                      Year                        Cost
                    --------                 -------------
                    <S>                      <C>
                      2002                         5,750
                      2003                         9,350
                      2004                        12,800
                      2005                        53,500
                      2006                        67,700
                                                ---------
                                                $149,100
                                                =========
</Table>

         The current estimate for the total to be expended on environmental
         projects under the PAMA and on additional related process changes for
         Doe Run Peru is approximately $174,000 for the remaining term of the
         PAMA.

         Doe Run Peru's operations historically and currently exceed some of the
         applicable Ministry of Energy and Mines (MEM) maximum permissible
         limits pertaining to air emissions, ambient air quality and waste water
         effluent quality. The PAMA projects, which are more fully discussed
         below, have been designed to achieve compliance with such requirements
         prior to the expiration of the PAMA on January 13, 2007. No assurance
         can be given that implementation of the PAMA projects is feasible or
         that their implementation will achieve compliance with the applicable
         legal requirements by the end of the PAMA period. Further, there can be
         no assurance that the Peruvian government will not in the future
         require compliance with additional or different environmental
         obligations that could adversely affect Doe Run Peru's business,
         financial condition or results of operations. Under the purchase
         agreement related to the acquisition of the La Oroya assets in October
         1997, Centromin agreed to indemnify Doe Run Peru against environmental
         liability arising out of its prior operations, and performance of the
         indemnity has been guaranteed by the Peruvian government through the
         enactment of the Supreme Decree No. 042-97-PCM. However, there can be
         no assurance that Centromin will satisfy its environmental obligations
         and investment requirements, including those in its PAMA, or that the
         guarantee will be honored. Any failure by Centromin to satisfy its
         environmental obligations could adversely affect Doe Run Peru's
         business, financial condition or results of operations.


                                       60
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         The Cobriza mine has a separate PAMA in which the Company has committed
         to complete projects to manage tailings, mine drainage, sewage and
         garbage by mid-2002. The Company has spent approximately $8,800 under
         the PAMA as of October 31, 2001. After beginning construction on the
         largest of the projects, the tailings backfill project, revisions to
         the cost estimate increased substantially. As a result, the Company has
         requested a revision of its PAMA from the MEM, which would allow it to
         operate for a time after the end of the current PAMA without completing
         the backfill project. Future economic and operating conditions could
         affect the Company's ability to complete the backfill project. The
         Company is currently in compliance with its requirement to reduce
         emissions from the mine under the PAMA through a decrease in
         production. In April 2002, the MEM proposed a pending regulation
         extending the PAMA for all companies for an additional 18 months for
         work remaining under the PAMA. For companies still not in compliance at
         the end of this 18-month extension period, each company would have an
         additional six months to close the operation. In light of this pending
         regulation, Doe Run will be re-evaluating its options with the
         expectation that a decision will be made within the next six to twelve
         months regarding the future course of action to be taken.

         The Company is responsible for the closure costs relating to a zinc
         ferrite disposal site. The Company has accrued $7,200 for the closure
         costs and, although a plan for closure of the site has not been
         finalized, management believes that this reserve is adequate.

               CONSOLIDATED

         The Company believes its reserves for domestic and foreign
         environmental and reclamation matters are adequate, based on the
         information currently available. Depending upon the type and extent of
         remediation activities required, costs in excess of established
         reserves are reasonably possible. Therefore, there can be no assurance
         that additional costs, both individually and in the aggregate, would
         not have a material adverse effect on the results of operations,
         financial condition and liquidity of the Company.

               LITIGATION

         The Company is a defendant in twelve lawsuits alleging certain damages
         stemming from the operations at the Herculaneum smelter. Four of these
         cases are class action lawsuits. In two separate cases, the plaintiffs
         seek to have certified a class of property owners in a certain section
         of Herculaneum, alleging that property values have been damaged due to
         the operations of the smelter. In a third case, plaintiffs seek to have
         certified a class of children who lived in Herculaneum during a period
         of time when they were nine months to six years old and children born
         to mothers who lived in Herculaneum during their pregnancies. The
         remedy sought is medical monitoring for the class. In a fourth case,
         plaintiffs seek to have certified a class of employees of a certain
         contractor who worked at the Herculaneum smelter. Seven of the cases
         are personal injury actions by 35 individuals who allege
         damages from the effects of lead poisoning due to operations at the
         smelter. Punitive damages also are being sought in each case. The
         last suit is a property damage case alleging lead contamination of
         fill material used on the plaintiff's property.

         A resident of Herculaneum has retained counsel who has forwarded to the
         Company information about personal injuries allegedly because of
         exposure to emissions from the smelter. No suit has yet been filed
         against the Company in this matter.

         The Company is a defendant in five lawsuits alleging certain damages
         from discontinued mine facilities in St. Francois County. Four of the
         cases are class action lawsuits. The first case seeks to have certified
         a class consisting of property owners, alleging that property values
         have been damaged due to the tailings from the discontinued operations.
         In the second case plaintiffs seek to have certified a class of
         children who lived, went to school or day care in Bonne Terre, Missouri
         or whose mothers lived in Bonne Terre during their pregnancies. The
         third and fourth cases are class actions for property damage and
         medical monitoring concerning alleged damages


                                       61
<Page>

                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         caused by chat, tailings, and related operations in six areas in St.
         Francois County. The fifth case, filed in July 2001, alleges personal
         injury against two children living in St. Francois County.

         Three lawsuits have been filed against the Company each alleging
         personal injury to a child living in Picher, Oklahoma as a result of
         lead contamination from chat piles and/or tailings generated by
         historic operations of the Company's predecessor.

         The Company, with several other defendants, has been named in four
         cases in Maryland, but not joined as a defendant in any of these cases.
         These suits seek damages, alleging personal injuries as a result of
         lead poisoning from exposure to lead paint and tetraethyl lead dust.
         The suits seek punitive damages. The Company has recently been
         dismissed from two similar cases in which it was joined as a defendant.
         Until The Company is actually joined as a defendant in one or more of
         these cases, material liability from these cases is considered remote.

         The Company and several other parties have been named defendants in a
         suit brought by the City of St. Louis, Missouri for costs allegedly
         incurred and to be incurred by the plaintiff for the care of
         lead-poisoned persons, education programs for children injured by
         exposure to lead and the abatement of lead hazards purportedly created
         by the defendants in the City of St. Louis. The complaint alleges that
         the defendants made material misrepresentations and intentional
         omissions of material facts to the City and/or its residents regarding
         the nature of lead and lead products, such as paint. The suit also
         seeks punitive damages.

         One hundred and seventeen individual cases have been filed that list
         the Company among other defendants, alleging that the employees or
         ex-employees of Burlington Northern Railroad who filed the cases were
         exposed to lead from the hauling of lead concentrates by the railroad.
         An ex-employee of the Terminal Rail Road Association of St. Louis has
         filed a similar case.

         The Company has been named as a defendant in a breach of
         contract/warranty action for damages arising from the sale of allegedly
         impure lead. The plaintiff has indicated, although the amount has not
         been confirmed through depositions, that its claims exceed $1,000.

         On January 15, 2002, The Doe Run Company received a Demand for
         Arbitration regarding payments Fabricated Products, Inc. was to make
         under an Asset Purchase Agreement.

         On February 28, 2002, Fabricated Products, Inc. (FPI) and others were
         served with a wrongful death action on behalf of the estate of a former
         worker at FPI's Vancouver facility.

         Since all of the above cases are either in the pleading or discovery
         stages, the Company is unable at this time to estimate the expected
         outcome of and the final costs of any of these actions. Therefore,
         there can be no assurance that these cases would not have a material
         adverse effect, both individually and in the aggregate, on the results
         of operations, financial condition and liquidity of the Company. The
         Company has and will continue to vigorously defend itself against these
         all these claims.

(17)     LIQUIDITY

         Low metal prices over the past four years, coupled with the Company's
         substantial debt service requirements, have severely reduced the
         Company's liquidity. In fiscal 2001, cash from operating activities was
         sufficient to meet the Company's capital and debt service requirements
         only because of a significant reduction in working capital. Reductions
         in receivables and inventory coupled with increases in borrowings on
         revolving credit lines and accounts payable have reduced availability
         under


                                       62


<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


         revolving credit facilities to the minimal levels discussed in Note 8.
         Further reductions of current assets of this magnitude are very
         unlikely.

         At October 31, 2001 the Company failed to maintain consolidated net
         worth and EBITDA for U.S. operations, as required by the Doe Run
         Revolving Credit Facility. The amendment and subsequent extension
         discussed above waived these defaults through March 14, 2002.


         Due to the non-payment of interest due March 15, 2002 on the 11 1/4%
         Senior Notes due 2005, Floating Interest Rate Senior Notes due 2003
         and 11 1/4% Senior Secured Notes due 2005 (collectively, the Notes),
         and the expiration of the grace period during which the Company could
         cure the non-payment, and the violation of other financial covenants,
         the Company is in default of its covenants under the Notes indentures
         and its revolving credit facilities. In an event of default, the
         lenders have the right to accelerate the payment of any unpaid
         principal and interest balances. No actions have been taken by the
         lenders to accelerate the payment of outstanding debt balances. The
         Company is in restructuring negotiations as described below and in
         negotiations with the lenders of its revolving credit facilities to
         execute amended revolving credit facilities.

         On April 15, 2002, the Company announced that it had reached an
         agreement in principle with Renco and Regiment Capital Advisors,
         LLC (Regiment) for Renco and Regiment to provide the Company with
         significant capital for the purpose of restructuring its existing
         debt. Pursuant to the agreement in principle, Renco will purchase
         $20 million of the Company's preferred stock and Regiment, a
         significant holder of the Notes, will commit to lend the Company
         $35 million and will offer other holders of Notes the opportunity
         to participate in making such loan.

         Under the proposed restructuring transaction, the Company would make
         a cash tender offer for a portion of the Notes and an exchange offer
         for the balance of the Notes. The $55 million in proceeds of the Renco
         investment and the loan, together with borrowings under its revolving
         credit facility would be used to finance the cash tender offer, to pay
         the accrued interest as of March 15, 2002 on the Notes exchanged in
         the exchange offer and to pay certain costs of the transactions. If
         successful, the cash tender offer and the exchange offer would
         significantly reduce the Company's future debt service and provide
         sufficient liquidity to continue to operate all its facilities at
         present levels and will not adversely affect the Company's trade
         creditors.

         The non-binding agreement in principle is subject to agreement on the
         terms of definitive documentation and the successful completion of the
         transactions is subject to several conditions, including, among others,
         the participation by holders of 90% of the aggregate principal amount
         of each class of Notes in the cash tender offer and/or the exchange
         offer and the satisfactory modification of Doe Run's United States and
         Peruvian revolving credit facilities.


                                       63
<Page>


                       THE DOE RUN RESOURCES CORPORATION

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


(18)     GUARANTOR SUBSIDIARIES

         The Guarantor Subsidiaries (Fabricated Products, Inc. (FPI) and DR Land
         Holdings, LLC (the Domestic Guarantors) Doe Run Cayman Ltd. (Doe Run
         Cayman) and its subsidiary Doe Run Peru have jointly and severally,
         fully, unconditionally and irrevocably guaranteed the Unsecured Notes
         and Secured Notes of the Company. Doe Run Cayman has no operations
         separate from those of Doe Run Peru. Separate financial statements and
         other disclosures concerning certain Guarantor Subsidiaries and
         disclosures concerning non-Guarantor Subsidiaries have not been
         presented because management has determined that such information is
         not material to investors. Intercompany transactions eliminated in
         consolidation consist of various service and agency fees between The
         Doe Run Resources Corporation and Doe Run Peru and sales of metal to
         The Doe Run Resources Corporation by Doe Run Peru and to FPI by The Doe
         Run Resources Corporation.

         Doe Run Peru was merged with its parent, Doe Run Mining S.R.L.
         effective June 1, 2001. The following consolidating statements reflect
         the historical cost basis of assets and liabilities and the results of
         operations assuming the merger had occurred on October 23, 1997, the
         date at which common control was established. The consolidating
         statements have been restated accordingly.


                                       64
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                          YEAR ENDED OCTOBER 31, 2001

<Table>
<Caption>
                                                                  The Company
                                                                    Excluding                  Doe Run
                                                                    Guarantor     Domestic    Cayman and                   The
                                                                  Subsidiaries   Guarantors   Subsidiary  Eliminations   Company
                                                                  ------------   ----------   ----------  ------------  ---------
<S>                                                                 <C>           <C>         <C>         <C>           <C>

                                     ASSETS
Current assets:
     Cash                                                           $       -     $     -     $  6,263    $       -     $  6,263
     Trade accounts receivable, net of allowance for
         doubtful accounts                                             41,944       5,975       25,352         (265)      73,006
     Inventories                                                       44,654       1,623       61,152          (25)     107,404
     Prepaid expenses and other current assets                         10,695          89        8,547            -       19,331
     Due from subsidiaries                                             16,783           -            -      (16,783)           -
                                                                    ---------     -------     --------    ---------     --------
         Total current assets                                         114,076       7,687      101,314      (17,073)     206,004
Property, plant and equipment, net                                    118,927       5,126      140,247            -      264,300
Special term deposit                                                  125,000           -            -            -      125,000
Other noncurrent assets, net                                            7,401         185          225            -        7,811
Investment in subsidiaries                                             19,690           -            -      (19,690)           -
                                                                    ---------     -------     --------    ---------     --------
         Total assets                                               $ 385,094     $12,998     $241,786    $ (36,763)    $603,115
                                                                    =========     =======     ========    =========     ========

                 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
     Short-term borrowings and current maturities
         of long-term debt                                          $  37,423     $     -     $ 25,188    $       -     $ 62,611
     Accounts payable                                                  21,361       2,770       28,171         (265)      52,037
     Accrued liabilities                                               36,140         397       21,792          -         58,329
     Due to parent                                                          -       7,910        8,873      (16,783)           -
                                                                    ---------     -------     --------    ---------     --------
         Total current liabilities                                     94,924      11,077       84,024      (17,048)     172,977
Long-term debt, less current maturities                               302,402           -      130,968            -      433,370
Other noncurrent liabilities                                          53,569        1,660        7,340            -       62,569
                                                                    ---------     -------     --------    ---------     --------
         Total liabilities                                            450,895      12,737      222,332      (17,048)     668,916
Shareholders' equity (deficit):
     Common stock, $.10 par value, 1,000 shares authorized,
         issued, and outstanding                                            -           -            -            -            -
     Common stock, $1 par value, 1,000 shares authorized,
         issued, and outstanding                                            -           1            -           (1)           -
     Common stock, $1 par value, 2,005,000 shares authorized,
         issued and outstanding                                             -           -        2,005       (2,005)           -
     Additional paid in capital                                         5,238       1,205                    (1,205)       5,238
     Retained earnings (accumulated deficit) and
         accumulated other comprehensive loss                         (71,039)       (945)      17,449      (16,504)     (71,039)
                                                                    ---------     -------     --------    ---------     --------
         Total shareholders' equity (deficit)                         (65,801)        261       19,454      (19,715)     (65,801)
                                                                    ---------     -------     --------    ---------     --------
         Total liabilities and shareholders' equity (deficit)       $ 385,094     $12,998     $241,786    $ (36,763)    $603,115
                                                                    =========     =======     ========    =========     ========
</Table>


                                       65
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                      CONDENSED CONSOLIDATING BALANCE SHEET
                             AS OF OCTOBER 31, 2000



<Table>
<Caption>
                                                                The Company
                                                                  Excluding                  Doe Run
                                                                  Guarantor     Domestic    Cayman and                   The
                                                                Subsidiaries   Guarantors   Subsidiary  Eliminations   Company
                                                                ------------   ----------   ----------  ------------   -------
<S>                                                               <C>          <C>          <C>         <C>          <C>

                                     ASSETS
Current assets:
  Cash                                                            $       -    $       -    $   8,295   $       -    $   8,295
  Trade accounts receivable, net of allowance for
       doubtful accounts                                             48,745        3,197       25,425        (349)      77,018
  Inventories                                                        49,388        1,988       67,364         (14)     118,726
  Prepaid expenses and other current assets                           7,510          202       33,243        (705)      40,250
  Net deferred tax assets                                                 -            -        2,592           -        2,592
  Due from subsidiaries                                              18,882            -            -     (18,882)           -
                                                                  ---------    ---------    ---------   ---------    ---------
       Total current assets                                         124,525        5,387      136,919     (19,950)     246,881
Property, plant and equipment, net                                  130,822        6,657      138,035           -      275,514
Special term deposit                                                125,000            -            -           -      125,000
Net deferred tax assets                                                   -            -        4,598           -        4,598
Other noncurrent assets, net                                         10,258          205        2,489           -       12,952
Investment in subsidiaries                                           27,209            -            -     (27,209)           -
                                                                  ---------    ---------    ---------   ---------    ---------
       Total assets                                               $ 417,814    $  12,249    $ 282,041   $ (47,159)   $ 664,945
                                                                  =========    =========    =========   =========    =========

                 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
  Short-term borrowings and current maturities
       of long-term debt                                          $     396    $       -    $  14,428   $       -    $  14,824
  Accounts payable                                                   19,043        2,011       33,033        (349)      53,738
  Accrued liabilities                                                29,186          357       21,637        (705)      50,475
  Due to parent                                                           -        7,965       10,917     (18,882)           -
                                                                  ---------    ---------    ---------   ---------    ---------
       Total current liabilities                                     48,625       10,333       80,015     (19,936)     119,037
Long-term debt, less current maturities                             331,183            -      167,503           -      498,686
Other noncurrent liabilities                                         44,920        1,840        7,376           -       54,136
                                                                  ---------    ---------    ---------   ---------    ---------
       Total liabilities                                            424,728       12,173      254,894     (19,936)     671,859

Shareholders' equity (deficit):
  Common stock, $.10 par value, 1,000 shares authorized,
    issued, and outstanding                                               -            -            -           -            -
  Common stock, $1 par value, 1,000 shares authorized,
    issued, and outstanding                                               -            1            -          (1)           -
  Common stock, $1 par value, 2,005,000 shares authorized,
    issued and outstanding                                                -            -        2,005      (2,005)           -
  Additional paid in capital                                          5,238        1,205            -      (1,205)       5,238
  Retained earnings (accumulated deficit) and
    accumulated other comprehensive loss                            (12,152)      (1,130)      25,142     (24,012)     (12,152)
                                                                  ---------    ---------    ---------   ---------    ---------
       Total shareholders' equity (deficit)                          (6,914)          76       27,147     (27,223)      (6,914)
                                                                  ---------    ---------    ---------   ---------    ---------
       Total liabilities and shareholders' equity (deficit)       $ 417,814    $  12,249    $ 282,041   $ (47,159)   $ 664,945
                                                                  =========    =========    =========   =========    =========
</Table>


                                       66
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                          YEAR ENDED OCTOBER 31, 2001

<Table>
<Caption>
                                                                The Company
                                                                  Excluding                Doe Run
                                                                  Guarantor   Domestic    Cayman and                   The
                                                                Subsidiaries Guarantors   Subsidiary  Eliminations   Company
                                                                ------------ ----------   ----------  ------------   -------
<S>                                                             <C>          <C>          <C>          <C>          <C>

Net sales                                                       $ 291,124    $  25,271    $ 434,336    $ (13,249)   $ 737,482

Costs and expenses:
  Cost of sales                                                   263,592       21,132      384,471       (3,916)     665,279
  Depletion, depreciation and amortization                         18,688        1,587       10,186            -       30,461
  Selling, general and administrative                              16,854        1,497       20,697       (9,322)      29,726
  Exploration                                                       1,602            -            -            -        1,602
  Unrealized (gain)/loss on derivatives                              (573)           7       (1,198)           -       (1,764)
                                                                ---------    ---------    ---------    ---------    ---------
    Total costs and expenses                                      300,163       24,223      414,156      (13,238)     725,304
                                                                ---------    ---------    ---------    ---------    ---------

    Income (loss) from operations                                  (9,039)       1,048       20,180          (11)      12,178

Other income (expense):
  Interest expense                                                (41,929)        (831)     (17,998)         766      (59,992)
  Interest income                                                  14,980            -          656         (766)      14,870
  Other, net                                                         (413)         (24)      (1,239)           -       (1,676)
  Equity in earnings of subsidiaries                               (7,511)           -            -        7,511            -
                                                                ---------    ---------    ---------    ---------    ---------
                                                                  (34,873)        (855)     (18,581)       7,511      (46,798)
                                                                ---------    ---------    ---------    ---------    ---------

    Income (loss) before income tax  expense                      (43,912)         193        1,599        7,500      (34,620)

  Income tax expense                                                   59            -        8,167            -        8,226
                                                                ---------    ---------    ---------    ---------    ---------
    Income (loss) before extraordinary item and cumulative
        effect of change in accounting principle                  (43,971)         193       (6,568)       7,500      (42,846)
    Extraordinary item related to
        retirement of long term debt                                 (159)           -            -            -         (159)
    Cumulative effect of change in accounting
        principle, net of income tax benefit                       (2,649)           -       (1,125)           -       (3,774)
                                                                ---------    ---------    ---------    ---------    ---------

    Net income (loss)                                           $ (46,779)   $     193    $  (7,693)   $   7,500    $ (46,779)
                                                                =========    =========    =========    =========    =========
</Table>


                                       67
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                          YEAR ENDED OCTOBER 31, 2000

<Table>
<Caption>
                                             The Company
                                               Excluding                Doe Run
                                               Guarantor   Domestic    Cayman and                   The
                                             Subsidiaries Guarantors   Subsidiary  Eliminations   Company
                                             ------------ ----------   ----------  ------------  ---------
<S>                                          <C>          <C>          <C>          <C>          <C>
Net sales                                    $ 324,801    $  26,254    $ 487,648    $ (23,661)   $ 815,042

Costs and expenses:
  Cost of sales                                277,320       22,250      428,333       (4,725)     723,178
  Depletion, depreciation and amortization      19,188        1,572        9,760            -       30,520
  Selling, general and administrative           16,529        1,325       33,230      (18,942)      32,142
  Exploration                                    2,851            -        1,486            -        4,337
                                             ---------    ---------    ---------    ---------    ---------
     Total costs and expenses                  315,888       25,147      472,809      (23,667)     790,177
                                             ---------    ---------    ---------    ---------    ---------

     Income from operations                      8,913        1,107       14,839            6       24,865

Other income (expense):
  Interest expense                             (42,023)      (1,028)     (19,558)       1,014      (61,595)
  Interest income                               15,119            -          328       (1,014)      14,433
  Other, net                                     1,565          (25)        (605)           -          935
  Equity in earnings of subsidiaries            (5,820)           -            -        5,820            -
                                             ---------    ---------    ---------    ---------    ---------
                                               (31,159)      (1,053)     (19,835)       5,820      (46,227)
                                             ---------    ---------    ---------    ---------    ---------
     Income (loss) before income tax
       expense                                 (22,246)          54       (4,996)       5,826      (21,362)
  Income tax expense                               869            -          884            -        1,753
                                             ---------    ---------    ---------    ---------    ---------

     Net income (loss)                       $ (23,115)   $      54    $  (5,880)   $   5,826    $ (23,115)
                                             =========    =========    =========    =========    =========
</Table>


                                       68
<Page>


                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                     CONSOLIDATING STATEMENT OF OPERATIONS
                          YEAR ENDED OCTOBER 31, 1999


<Table>
<Caption>
                                             The Company
                                               Excluding                Doe Run
                                               Guarantor   Domestic    Cayman and                   The
                                             Subsidiaries Guarantors   Subsidiary  Eliminations   Company
                                             ------------ ----------   ----------  ------------   -------
<S>                                          <C>          <C>          <C>          <C>          <C>
Net sales                                    $ 337,091    $  25,700    $ 460,332    $ (22,849)   $ 800,274

Costs and expenses:
  Cost of sales                                275,621       21,687      394,035       (5,316)     686,027
  Depletion, depreciation and amortization      22,054        1,503        7,843            -       31,400
  Selling, general and administrative           16,045        1,405       31,082      (17,690)      30,842
  Exploration                                    3,919            -            -            -        3,919
                                             ---------    ---------    ---------    ---------    ---------
    Total costs and expenses                   317,639       24,595      432,960      (23,006)     752,188
                                             ---------    ---------    ---------    ---------    ---------

    Income from operations                      19,452        1,105       27,372          157       48,086

Other income (expense):
  Interest expense                             (40,586)      (1,101)     (18,631)         901      (59,417)
  Interest income                               15,020            -          636         (901)      14,755
  Other, net                                       (40)        (144)      (1,162)           -       (1,346)
  Equity in earnings of subsidiaries            11,983            -            -      (11,983)           -
                                             ---------    ---------    ---------    ---------    ---------
                                               (13,623)      (1,245)     (19,157)     (11,983)     (46,008)
                                             ---------    ---------    ---------    ---------    ---------
    Income (loss) before income tax
        expense (benefit)                        5,829         (140)       8,215      (11,826)       2,078
  Income tax expense (benefit)                   7,239            -       (3,751)           -        3,488
                                             ---------    ---------    ---------    ---------    ---------

    Net income (loss)                        $  (1,410)   $    (140)   $  11,966    $ (11,826)   $  (1,410)
                                             =========    =========    =========    =========    =========
</Table>


                                       69
<Page>



                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                         YEAR ENDED OCTOBER 31, 2001



<Table>
<Caption>
                                                    The Company
                                                     Excluding                Doe Run
                                                     Guarantor    Domestic   Cayman and                 The
                                                    Subsidiaries Guarantors  Subsidiary Eliminations  Company
                                                    ------------ ----------  ---------- ------------  -------
<S>                                                   <C>         <C>         <C>         <C>         <C>
Net cash provided by (used in) operating activities   $ (8,765)   $     55    $ 38,463    $  7,511    $ 37,264
Cash flows from investing activities:
  Purchases of property, plant and equipment           (12,720)          -     (11,817)          -     (24,537)
  Net proceeds from sales of assets                      4,999           -           -           -       4,999
  Investment in subsidiaries                             7,511           -           -      (7,511)          -
                                                      --------    --------    --------    --------    --------
    Net cash provided by (used in)
      investing activities                                (210)          -     (11,817)     (7,511)    (19,538)
Cash flows from financing activities:
  Proceeds from (payments on) revolving
    loans and short-term borrowings, net                12,484           -     (21,316)          -      (8,832)
  Payments on long-term debt                            (5,233)          -      (5,318)          -     (10,551)
  Payment of deferred financing costs                     (375)          -           -           -        (375)
  Due to/due from parent/subsdiaries                     2,099         (55)     (2,044)          -           -
                                                      --------    --------    --------    --------    --------
    Net cash provided by (used in)
      financing activities                               8,975         (55)    (28,678)          -     (19,758)
                                                      --------    --------    --------    --------    --------
    Net increase in cash                                     -           -      (2,032)          -      (2,032)

Cash at beginning of period                                  -           -       8,295           -       8,295
                                                      --------    --------    --------    --------    --------
Cash at end of period                                 $      -    $      -    $  6,263    $      -    $  6,263
                                                      ========    ========    ========    ========    ========
</Table>


                                       70
<Page>


                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


(18) Guarantor Subsidiaries (Continued)

                   CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                          YEAR ENDED OCTOBER 31, 2000



<Table>
<Caption>
                                                    The Company
                                                     Excluding                Doe Run
                                                     Guarantor    Domestic   Cayman and                 The
                                                    Subsidiaries Guarantors  Subsidiary Eliminations  Company
                                                    ------------ ----------  ---------- ------------  -------
<S>                                                   <C>         <C>         <C>         <C>         <C>
Net cash provided by (used in) operating activities   $ (8,487)   $  2,413    $  9,323    $  5,820    $  9,069
Cash flows from investing activities:
    Purchases of property, plant and equipment          (9,689)       (365)    (27,200)          -     (37,254)
    Investment in subsidiaries                           5,820           -           -      (5,820)          -
                                                      --------    --------    --------    --------    --------
      Net cash provided by
        investing activities                            (3,869)       (365)    (27,200)     (5,820)    (37,254)
Cash flows from financing activities:
    Proceeds from revolving loans
       and short-term borrowings, net                   13,077           -      18,704           -      31,781
    Payments on long-term debt                            (357)          -      (4,830)          -      (5,187)
    Due to/due from parent/subsdiaries                  (7,561)       (701)      8,262           -           -
                                                      --------    --------    --------    --------    --------
      Net cash provided by
         financing activities                            5,159        (701)     22,136           -      26,594
                                                      --------    --------    --------    --------    --------
      Net increase (decrease) in cash                   (7,197)      1,347       4,259           -      (1,591)

Cash at beginning of period                              7,197      (1,347)      4,036           -       9,886
                                                      --------    --------    --------    --------    --------
Cash at end of period                                 $      -    $      -    $  8,295    $      -    $  8,295
                                                      ========    ========    ========    ========    ========
</Table>


                                       71
<Page>

                        THE DOE RUN RESOURCES CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (DOLLARS IN THOUSANDS)

(18) Guarantor Subsidiaries (Continued)

               CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                         YEAR ENDED OCTOBER 31, 1999

<Table>
<Caption>
                                                    The Company
                                                     Excluding                Doe Run
                                                     Guarantor    Domestic   Cayman and                 The
                                                    Subsidiaries Guarantors  Subsidiary Eliminations  Company
                                                    ------------ ----------  ---------- ------------  -------
<S>                                                   <C>         <C>         <C>         <C>         <C>
Net cash provided by (used in) operating activities   $ 27,678    $  1,175    $ 19,295    $(11,983)   $ 36,165
Cash flows from investing activities:
    Purchases of property, plant and equipment         (12,543)       (120)    (23,276)          -     (35,939)
    Payments for acquisitions                             (375)          -           -           -        (375)
    Investment in subsidiaries                         (11,983)          -           -      11,983           -
                                                      --------    --------    --------    --------    --------
      Net cash provided by (used in)
        investing activities                           (24,901)       (120)    (23,276)     11,983     (36,314)
Cash flows from financing activities:
    Payments on revolving loans
        and short-term borrowings, net                  (9,029)          -      (4,388)          -     (13,417)
    Proceeds from long-term debt                         5,665           -           -           -       5,665
    Payments on long-term debt                            (978)          -      (3,453)          -      (4,431)
    Proceeds from sale/leaseback transactions                -           -      17,923           -      17,923
    Payment of deferred financing costs                   (351)          -           -           -        (351)
    Due to/due from parent/subsdiaries                   9,113      (2,402)     (6,711)          -           -
                                                      --------    --------    --------    --------    --------
      Net cash provided by (used in)
         financing activities                            4,420      (2,402)      3,371           -       5,389
                                                      --------    --------    --------    --------    --------
      Net increase (decrease) in cash                    7,197      (1,347)       (610)          -       5,240

Cash at beginning of period                                  -           -       4,646           -       4,646
                                                      --------    --------    --------    --------    --------
Cash at end of period                                 $  7,197    $ (1,347)   $  4,036    $      -    $  9,886
                                                      ========    ========    ========    ========    ========
</Table>


                                       72
<Page>

                          INDEPENDENT AUDITORS' REPORT


To the Shareholders
Doe Run Peru S.R.L.:

We have audited the accompanying combined balance sheets of Doe Run Peru
S.R.L. (a Peruvian Company) as of October 31, 2001 and 2000, and the related
combined statements of operations, changes in shareholders' equity and cash
flows for each of the years in the three-year period ended October 31, 2001.
These combined financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these combined
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the combined financial statements referred to above present
fairly, in all material respects, the financial position of Doe Run Peru S.R.L.
as of October 31, 2001 and 2000, and the results of their operations and their
cash flows for each of the years in the three-year period ended October 31, 2001
in conformity with accounting principles generally accepted in the United States
of America.

As discussed in Note 4 to the combined financial statements, the Company
adopted FAS 133 beginning November 1, 2000. The adoption of FAS 133 resulted
in a net transition loss of $1,125, net of income tax benefit of $480.

The accompanying combined financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 20 to
the combined financial statements, the Company faces liquidity issues that
raise substantial doubt about its ability to continue as going concern.
Management's plans in regards to these matters are also described in Note 20.
The combined financial statements do not include any adjustments that might
result from the outcome of this uncertainty.

Lima, Peru

December 5, 2001 except as to Note 20 which is as of April 15, 2002

Countersigned by:




----------------------------
Juan Jose Cordova (Partner)
Peruvian Public Accountant
Registration No 18869


                                       73
<Page>

                               DOE RUN PERU S.R.L.
                             COMBINED BALANCE SHEETS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<Table>
<Caption>
                                                                                        October 31,
                                                                                -------------------------
                                                                                    2001         2000
                                                                                ------------  -----------
<S>                                                                                <C>            <C>

                                   A S S E T S

Current assets:
   Cash                                                                            $  6,263      $  8,295
   Trade accounts receivable, net                                                    25,352        25,425
   Inventories                                                                       61,152        67,364
   Prepaid expenses and other current assets                                          8,547        33,243
   Net deferred tax assets                                                                -         2,592
                                                                                   --------      --------
            Total current assets                                                    101,314       136,919

Property, plant and equipment, net                                                  140,247       138,035
Net deferred tax assets                                                                   -         4,598
Other non current assets, net                                                           225         2,489
                                                                                   --------      --------
            Total assets                                                           $241,786      $282,041
                                                                                   ========      ========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Short-term borrowings and current maturities
      of long-term debt                                                            $ 25,188      $ 14,428
   Accounts payable                                                                  28,170        33,033
   Due to related parties                                                             8,873        10,917
   Accrued liabilities                                                               21,793        21,637
                                                                                   --------      --------
            Total current liabilities                                                84,024        80,015

Long-term debt, less current maturities                                             130,968       167,503
Other non-current liabilities                                                         7,340         7,376
                                                                                   --------      --------
        Total liabilities                                                           222,332       254,894

Shareholders' equity:
   Capital stock, $ 0.01 par value, 15,912,083,739 shares in 2001, $ 0.3709           2,005         2,005
       par value, 729,548,157 shares in 2000
   Retained earnings                                                                 17,449        25,142
                                                                                   --------      --------
           Total shareholders' equity                                                19,454        27,147
                                                                                   --------      --------

         Total liabilities and shareholders' equity                                $241,786      $282,041
                                                                                   ========      ========
</Table>

      The accompanying notes are an integral part of these combined financial
                                   statements.


                                       74
<Page>

                               DOE RUN PERU S.R.L.
                        COMBINED STATEMENTS OF OPERATIONS
               FOR THE YEARS ENDED OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                                              Year Ended October 31,
                                                                    ------------------------------------------
                                                                       2001             2000            1999
                                                                    -----------     -----------      ----------
<S>                                                                   <C>             <C>             <C>

Net sales                                                             $434,336        $487,648        $460,332

Costs and expenses:
   Costs of sales                                                      384,471         428,333         394,035
   Exploration and development                                               -           1,486               -
   Depreciation                                                         10,186           9,760           7,843
   Fees and commissions to related parties                               9,322          18,942          17,690
   Selling, general and administrative expenses                         11,375          14,288          13,392
   Unrealized gain on derivatives                                       (1,198)              -               -
                                                                      --------        --------        --------
           Total costs and expenses                                    414,156         472,809         432,960
                                                                      --------        --------        --------
           Income from operations                                       20,180          14,839          27,372
                                                                      --------        --------        --------
Other income (expense):
   Interest expense                                                    (17,998)        (19,558)        (18,631)
   Interest income                                                         656             328             636
   Exchange difference                                                    (412)           (281)         (2,529)
   Other, net                                                             (827)           (324)          1,367
                                                                      --------        --------        --------
                                                                       (18,581)        (19,835)        (19,157)
                                                                      --------        --------        --------
           Income (loss) before income tax expense (benefit)             1,599          (4,996)          8,215

Income tax expense (benefit)                                             8,167             884          (3,751)
                                                                      --------        --------        --------
      Income (loss) before cumulative effect of change
          in accounting principle                                       (6,568)         (5,880)         11,966

Cumulative effect of change in
   accounting principle, net of income tax benefit                      (1,125)              -               -
                                                                      --------        --------        --------
           Net income (loss)                                           $(7,693)        $(5,880)        $11,966
                                                                      ========        ========        ========
</Table>


                  The accompanying notes are an integral part of these combined
                                     financial statements.


                                       75
<Page>

                               DOE RUN PERU S.R.L.
             COMBINED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
               FOR THE YEARS ENDED OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                                Capital         Retained
                                                                 Stock          Earnings        Total
                                                                -------         --------      --------
<S>                                                             <C>             <C>           <C>

Balance as of October 31, 1998                                    2,005         19,056         21,061

     Net income                                                       -         11,966         11,966
                                                                -------        -------        -------
Balance as of October 31, 1999                                    2,005         31,022         33,027

     Net loss                                                         -         (5,880)        (5,880)
                                                                -------        -------        -------
Balance as of October 31, 2000                                    2,005         25,142         27,147

     Net loss                                                         -         (7,693)        (7,693)
                                                                -------        -------        -------
Balance as of October 31, 2001                                  $ 2,005        $17,449        $19,454
                                                                =======        =======        =======
</Table>



                  The accompanying notes are an integral part of these combined
                                       financial statements.


                                       76
<Page>

                               DOE RUN PERU S.R.L.
                        COMBINED STATEMENTS OF CASH FLOWS
               FOR THE YEARS ENDED OCTOBER 31, 2001, 2000 AND 1999
                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                             2001             2000             1999
                                                                           ---------       ----------        ---------
<S>                                                                         <C>             <C>               <C>
     Cash flows from operating activities:
        Net income (loss)                                                   $(7,693)        $ (5,880)         $11,966
        Cumulative effect of change in accounting principle                   1,605                -                -
        Adjustments to reconcile net income to net cash
           provided by operating activities:
           Deferred income taxes                                              7,190           (3,469)          (6,292)
           Depreciation                                                      10,186            9,760            7,843
           Amortization of deferred financing fees                              170              170              169
           Imputed interest                                                     113              239              415
           Unrealized gain on derivatives                                    (1,198)               -                -
           Increase (decrease) resulting from changes in:
              Trade accounts receivable                                          73           13,439           (7,929)
              Inventories                                                     6,212            3,758           13,927
              Prepaid expenses and other current assets                      25,315           (6,467)            (592)
              Trade accounts payable                                         (4,862)          (3,757)           6,038
              Accrued liabilities                                              (772)           2,544           (4,602)
              Other noncurrent assets and liabilities                         2,124           (1,014)          (1,648)
                                                                            -------          -------          -------
           Net cash provided by operating activities                         38,463            9,323           19,295
                                                                            -------          -------          -------
     Cash flows from investing activities:
        Purchases of plant, property and equipment                          (11,817)         (27,200)         (23,276)
                                                                            -------          -------          -------
           Net cash used in investing activities                            (11,817)         (27,200)         (23,276)
                                                                            -------          -------          -------
     Cash flows from financing activities:
        Proceeds from (payments on) revolving loans, net                    (12,000)          13,000           (8,000)
        Proceeds from (payments on) short-term borrowings, net               (9,316)           5,704            3,612
        Proceeds from sales and leaseback transactions                            -                -           17,923
        Payments on long term debt                                           (5,318)          (4,830)          (3,453)
        Due to related parties                                               (2,044)           8,262           (6,711)
                                                                            -------          -------          -------
           Net cash provided by (used in) financing activities              (28,678)          22,136            3,371
                                                                            -------          -------          -------
           Net increase (decrease) in cash                                   (2,032)           4,259             (610)

     Cash at beginning of year                                                8,295            4,036            4,646
                                                                            -------          -------          -------
     Cash at end of year                                                    $ 6,263          $ 8,295          $ 4,036
                                                                            =======          =======          =======

     Supplemental disclosure of cash flow information
               Cash paid during the period for:
                  Interest                                                  $17,754          $19,098          $18,048
                                                                            =======          =======          =======
                  Peruvian income tax                                       $   457          $ 1,651          $ 6,577
                                                                            =======          =======          =======
</Table>

          The accompanying notes are an integral part of these combined
                             financial statements.


                                       77
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


1.       NATURE OF BUSINESS

         Doe Run Peru S.R.L. (Doe Run Peru or the Company) is a Peruvian company
         incorporated on September 8, 1997 and, since June 1, 2001, 99.9% owned
         by Doe Run Cayman Ltd. (Doe Run Cayman). Prior to May 31, 2001 Doe Run
         Peru was 99.9% owned by Doe Run Mining S.R.L. (Doe Run Mining), a
         subsidiary of Doe Run Cayman. See Note 2.

         Doe Run Peru is engaged in the smelting and refining of polymetallic
         concentrates, mainly copper, lead and zinc, which are sold primarily to
         customers located outside of Peru as refined metals.

2.       BUSINESS ACQUISITIONS

         Effective March 1, 1999, Doe Run Peru was merged with Empresa Minera
         Cobriza S.A. (Cobriza), an entity previously controlled by Doe Run
         Mining since the acquisition of substantially all of Cobriza's
         outstanding shares on August 31, 1998. The accompanying combined
         financial statements of the Company reflect the historical cost basis
         of assets and liabilities and the results of operations of Cobriza for
         the periods before the merger, during which Doe Run Peru and Cobriza
         were under common control. These financial statements have been
         prepared as if the merger occurred October 31, 1998.

         At the General Shareholders' Meetings held on May 14, 2001 by Doe Run
         Peru and Doe Run Mining, respectively, the merger by absorption of
         these two companies was approved, with Doe Run Peru the absorbing
         company and Doe Run Mining the absorbed company. This merger was
         effective as of June 1, 2001.

         On the day before the effective date of the merger Doe Run Mining's
         shareholders' equity transferred to Doe Run Peru, the absorbing
         company. As a result of the transfer of the shareholders' equity of Doe
         Run Mining to Doe Run Peru after the merger, and taking into account
         that Doe Run Mining was the majority shareholder of Doe Run Peru,
         several accounts were consolidated, such as the capital stock of Doe
         Run Peru and the investment account of Doe Run Mining, resulting in a
         decrease in the capital stock of Doe Run Peru from $271,435 to $2,005.
         The capital stock of Doe Run Peru is comprised of 15,912,083,739 shares
         with a par value of $ 0.01 each, less an adjustment of $157,115
         resulting from a write up of fixed assets which is allowed for Peruvian
         GAAP but not under U.S. GAAP.

         For comparability purposes, the merger of Doe Run Mining and Doe Run
         Peru resulted in the following adjustments to amounts previously
         reported for Doe Run Peru:

<Table>
<Caption>
                                                                 2000                1999
                                                                 ----                ----
<S>                                                            <C>                 <C>
                        Net Income
                             Previously Reported               $  9,163            $25,731
                             Adjustments (a)                    (15,043)           (13,765)
                                                               --------            -------
                             Reported Herein                   $ (5,880)           $11,966
                                                               ========            =======
                        Total Assets
                             Previously Reported               $319,646               n/a
                             Adjustments (b)                    (37,605)              n/a
                                                               --------
                             Reported Herein                   $282,041               n/a
                                                               ========
                        Total Liabilities
                             Previously Reported               $122,256               n/a
                             Adjustments (c)                    132,638               n/a
                                                               --------
                             Reported Herein                   $254,894               n/a
                                                               ========


                                       78
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


                                                                 2000                 1999
                                                                 ----                 ----
                        Total Shareholders' Equity
                             Previously Reported               $197,390               n/a
                             Adjustments (d)                   (170,243)              n/a
                                                               --------
                             Reported Herein                   $ 27,147               n/a
                                                               ========
</Table>


                (a)  Adjustment is primarily the result of additional interest
                     expense of $14,666 and $14,835 in 2000 and 1999,
                     respectively that was previously reported as an expense of
                     Doe Run Mining.
                (b)  Adjustment is primarily due to the elimination of an
                     intercompany receivable balance with Doe Run Mining of
                     $34,667.
                (c)  Adjustment is primarily due to the addition of the $125,000
                     bank loan that was previously maintained on the books of
                     Doe Run Mining, an increase of $3,887 in the balance due to
                     related parties, and an increase of $2,055 in accrued
                     liabilities reflecting the addition of accrued interest
                     expense on the $125,000 bank loan previously maintained on
                     the books of Doe Run Mining.
                (d)  Adjustment is comprised of reductions of $269,430 in common
                     stock and $42,047 in retained earning partially offset by
                     the elimination of the deficit balances in additional paid
                     in capital, due to parent, and accumulated other
                     comprehensive income of $16,234, $104,090 and $20,910,
                     respectively, reflecting the elimination of Doe Run
                     Mining's investment in Doe Run Peru.

         The accompanying combined financial statements of the Company reflect
         the historical cost basis of assets and liabilities and the results of
         operations of Doe Run Mining for the periods before the merger, during
         which Doe Run Peru and Doe Run Mining were under common control of Doe
         Run Cayman. These financial statements have been prepared as if the
         merger occurred October 31, 1998. Prior to the merger Doe Run Mining's
         principal asset was its investment in Doe Run Peru and its principal
         liabilities were the bank loan, see Note 11, and intercompany loan due
         to Doe Run Peru.

3.       BASIS OF PRESENTATION

         The combined financial statements of the Company have been prepared in
         accordance with accounting principles generally accepted in the United
         States of America (U.S. GAAP).

         The combined financial statements include all the accounts of the
         Company and its subsidiaries, after eliminating intercompany balances
         and transactions, including gains and losses resulting from such
         transactions. The minority interest is not significant.

         USE OF ESTIMATES

         The preparation of combined financial statements in conformity with
         accounting principles generally accepted in the United States of
         America requires management to make estimates and assumptions that
         affect the reported amounts of assets and liabilities, the disclosure
         of contingent assets and liabilities at the date of the combined
         financial statements and the reported amounts of revenues and expenses
         during the reporting periods. Actual results could differ from these
         estimates.

         RECLASSIFICATIONS

         Certain balances have been reclassified from their previous
         presentation in order to conform to their current presentation.


                                       79
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


4.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         INVENTORIES

         Inventories are stated at the lower of cost or market. The cost of
         refined metals for sale, as well as metals and concentrates in process
         are determined under the last-in, first-out method (LIFO). Materials,
         supplies and spare parts are principally stated at average cost.

         Inventory costs include concentrates purchased, labor, depreciation and
         other production costs.

         PROPERTY, PLANT AND EQUIPMENT

         Property, plant and equipment are recorded at the lower of cost or fair
         value. Long-lived assets are reviewed for impairment when events or
         circumstances indicate that the carrying amount of the assets may not
         be recoverable. The impairment loss on such assets, as well as
         long-lived assets and certain identifiable intangibles to be disposed
         of, is measured as the amount by which the carrying value of the assets
         exceeds the fair value of the assets.

         Depreciation is calculated on a straight-line basis at the rates
         indicated in Note 9. Major additions and improvements to property,
         plant and equipment are capitalized, at cost, when they significantly
         increase the productive capacity or the life of the assets. Routine or
         unanticipated repair and maintenance expenditures, which do not extend
         the useful life or increase the productive capacity of the asset, are
         charged to operations as incurred. Major expenditures required to
         maintain the originally anticipated productive capacity and life of the
         assets are deferred and charged to operations over the period through
         the next anticipated maintenance date.

         DEFERRED FINANCING FEES

         Deferred financing fees represent fees paid in conjunction with the
         acquisition of revolving loans and are amortized using the interest
         method over the term of the respective line of credit.

         EXPLORATION AND DEVELOPMENT COSTS

         Exploration costs are charged to operations as incurred. Development
         costs incurred to maintain production at operating mines are charged to
         operations as incurred. Development expenditures for mining properties
         that are considered to be commercially feasible, but are not yet
         producing, and major development expenditures at operating mines that
         are expected to benefit future production are capitalized and amortized
         using the units of production method over the estimated proven ore
         reserves to be benefited.

         COMMITMENTS AND CONTINGENCIES

         The Company accrues for loss contingencies, including costs associated
         with environmental remediation obligations, when such costs are
         probable and reasonably estimable. Accruals are reviewed and adjusted
         as circumstances change. Costs of future expenditures for environmental
         remediation obligations are not discounted to their present value.


                                       80
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


         REVENUE RECOGNITION

         Sales are recorded when title passes to the customer, which typically
         occurs at the time of shipment. Sales are recorded based on estimated
         weights, assays and prices using applicable customer agreements and
         hedge contracts. Revenues with respect to such sales are adjusted to
         reflect settlement when final weights, metal contents and prices are
         determined.

         DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

         Statement of Financial Accounting Standards No. 133, ACCOUNTING FOR
         DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, was issued by the
         Financial Accounting Standards Board in June 1998, and amended by
         Statement No. 138, ACCOUNTING FOR CERTAIN DERIVATIVE INSTRUMENTS AND
         CERTAIN HEDGING ACTIVITIES, AN AMENDMENT OF FASB STATEMENT NO. 133,
         issued in June 2000 (collectively, FAS 133). Under FAS 133, entities
         are required to carry all derivative instruments in the statement of
         financial position at fair value. The accounting for changes in the
         fair value (i.e. gains and losses) of a derivative instrument depends
         on whether it has been designated and qualifies as part of a hedging
         relationship, and if so, whether the derivative instrument is
         designated as a hedge of exposures to changes in fair values, cash
         flows or foreign currencies. If the hedged exposure is changes in fair
         values, the gain (loss) is recognized in earnings in the period of
         change, with an equal and offsetting (loss) gain recognized on the
         change in value of the hedged item. If the hedged exposure is changes
         in cash flows, the effective portion of the gain (loss) is reported as
         a component of other comprehensive income (outside earnings) until the
         forecasted hedged transaction affects earnings, when it is reclassified
         into earnings.

         The Company adopted FAS 133 beginning November 1, 2000, in the first
         quarter in which it was required by the standard, as amended. The
         adoption of FAS 133 resulted in a net transition loss of $1,125, net of
         income tax benefit of $ 480.

         DEFERRED INCOME TAXES

         Deferred tax assets and liabilities are recognized for the future tax
         consequences attributable to differences between the financial
         statement carrying amounts of existing assets and liabilities and their
         respective tax bases. Deferred tax assets and liabilities are measured
         using enacted tax rates expected to apply to taxable income in the
         years in which those temporary differences are expected to be recovered
         or settled.

         DEFERRED WORKERS' PROFIT SHARING

         In accordance with government regulations in Peru, employees are
         entitled to receive 8% of the Doe Run Peru's taxable income, 50% of
         which is distributed to employees based on number of days worked, and
         the remaining distributed in proportion to their salaries. Such profit
         sharing, which is tax deductible, is limited to 18 times the annual
         salary for each worker. Any excess is to be reserved and used for
         training of the workers.

         Because workers' profit sharing is calculated on taxable income, the
         Company recognizes the effect of temporary differences between
         financial reporting and tax bases of assets and liabilities related to
         workers' profit sharing on a basis consistent with that used for income
         taxes.


                                       81
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


         IMPACT OF ACCOUNTING STANDARDS NOT YET ADOPTED

         In June 2001, the Financial Accounting Standards Board issued Statement
         No. 143, ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS, which addresses
         financial accounting and reporting for obligations associated with the
         retirement of tangible long-lived assets and the associated asset
         retirement costs. The standard applies to legal obligations associated
         with the retirement of long-lived assets that result from the
         acquisition, construction, development and (or) normal use of the
         asset.

         Statement No. 143 requires that the fair value of a liability for an
         asset retirement obligation be recognized in the period in which it is
         incurred if a reasonable estimate of fair value can be made. The fair
         value of the liability is added to the carrying amount of the
         associated asset and this additional carrying amount is depreciated
         over the life of the asset. The liability is accreted at the end of
         each period through charges to operating expense. If the obligation is
         settled for other than the carrying amount of the liability, the
         Company will recognize a gain or loss on settlement.

         The Company is required and plans to adopt the provisions of Statement
         No. 143 for the quarter ending January 31, 2003. To accomplish this,
         the Company must identify all legal obligations for asset retirement
         obligations, if any, and determine the fair value of these obligations
         on the date of adoption. The determination of fair value is complex and
         will require the Company to gather market information and develop cash
         flow models. Additionally, the Company will be required to develop
         processes to track and monitor these obligations. Because of the effort
         necessary to comply with the adoption of Statement No. 143, it is not
         practicable for management to estimate the impact of adopting this
         Statement at the date of this report.

         In August 2001, the Financial Accounting Standards Board issued
         Statement No. 144, ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF
         LONG-LIVED ASSETS, which supersedes both FASB Statements No. 121,
         ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED
         ASSETS TO BE DISPOSED OF and the accounting and reporting provisions of
         APB Opinion No. 30, REPORTING THE RESULTS OF OPERATIONS - REPORTING THE
         EFFECTS OF DISPOSAL OF A SEGMENT OF A BUSINESS, AND EXTRAORDINARY,
         UNUSUAL AND INFREQUENTLY OCCURRING EVENTS AND TRANSACTIONS, for the
         disposal of a segment of a business. Statement 144 retains the
         fundamental provisions in Statement 121 for recognizing and measuring
         impairment losses on long-lived assets held for use and long-lived
         assets to be disposed of by sale, while also resolving significant
         implementation issues associated with Statement 121. Statement 144
         retains the basic provisions of Opinion 30 on how to present
         discontinued operations in the income statement but broadens that
         presentation to include a component of an entity (rather than a segment
         of a business.

         The Company is required and plans to adopt the provisions of Statement
         No. 144 for the quarter ending January 31, 2003. Management does not
         expect the adoption of Statement 144 for long-lived assets held for use
         to have a material impact on the Company's financial statements because
         the impairment assessment under Statement 144 is largely unchanged from
         Statement 121. The provisions of the Statement for assets held for sale
         or other disposal generally are required to be applied prospectively
         after the adoption date to newly initiated disposal activities.
         Therefore, management cannot determine the potential effects that
         adoption of Statement 144 will have on the Company's financial
         statements.

5.       REMEASUREMENT INTO U.S. DOLLARS

         The functional currency of Doe Run Peru is the U.S. dollar. Until
         December 31, 1999 the accounting records of Doe Run Peru and its
         subsidiary were kept in Peruvian nuevos soles and remeasured into


                                       82
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         U.S. dollars. Since January 1, 2000 the accounting records of Doe Run
         Peru have been kept in U.S. dollars due to a modification of the
         Contract of Guarantees and Measurement to Promote Investments described
         in Note 13 (b). This change did not have an effect on the financial
         position or results of operations of Doe Run Peru.

         The methodology utilized for the re-measurement of nuevos soles into
         U.S. dollars, as established by SFAS 52, is as follows:

         (a)  Non-monetary accounts have been re-measured at historical exchange
              rates.

         (b)  Monetary accounts in Peruvian currency have been re-measured at
              free market average exchange rates in effect at the respective
              year-end, see Note 6.

         (c)  Income and expenses have been re-measured at the average monthly
              exchange rates. Cost of sales was determined from its components
              once re-measured. The net effect of foreign exchange differences
              has been reflected in the accompanying combined statements of
              operations.

6.       FOREIGN CURRENCY TRANSACTION AND EXCHANGE RISK EXPOSURE

         Under current law, foreign currency transactions are made through the
         Peruvian financial banking system at free market exchange rates. The
         exchange rates in effect were S/3.439, S/3.515 and S/3.489 per each $1
         for assets at October 31, 2001, 2000 and 1999, respectively, and
         S/3.443, S/3.510 and S/3.493 per each $1 for liabilities at October 31,
         2001, 2000 and 1999, respectively.

         Assets and liabilities denominated in Peruvian nuevos soles are as
         follows (in thousands):

<Table>
<Caption>
                                                                                 OCTOBER 31,
                                                              -------------------------------------------
                                                                   2001            2000            1999
                                                                   ----            ----            ----
<S>                                                           <C>             <C>              <C>
            Assets:
              Cash                                            S/.  12,105     S/.   1,917      S/.    739
              Prepaid expenses and other current assets             1,805           8,026          83,118
                                                                 --------         -------          ------
                                                                   13,910           9,943          83,857
                                                                 --------         -------          ------
            Liabilities:
              Accounts payable                                      4,250           1,110               -
              Accrued liabilities                                  32,360          32,340          48,110
                                                                 --------         -------          ------
                                                                   36,610          33,450          48,110
                                                                  -------         -------          ------
                     Net position                             S/. (22,700)    S/. (23,507      S/. 35,747
                                                                  =======         =======          ======
</Table>

         Net foreign currency transaction losses relating to transactions
         denominated in Peruvian nuevos soles were $412, $281 and $2,529 for the
         years ended October 31, 2001, 2000 and 1999, respectively, which have
         been reflected in the combined statements of operations in other income
         (expense), net.


                                       83
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



7.       INVENTORIES

         Inventories consist of the following:

<Table>
<Caption>
                                                                                2001         2000
                                                                               -------      -------
<S>                                                                            <C>          <C>

       Refined metals for sale                                                 $ 1,775      $ 2,307
       Metals and concentrates in process                                       45,516       45,753
       Materials, supplies and spare parts                                      13,861       19,304
                                                                               -------      -------
                                                                               $61,152      $67,364
                                                                               =======      =======
</Table>


         Materials, supplies and spare parts are stated net of reserves for
         obsolescence of $826, $250 and $0 at October 31, 2001, 2000 and 1999,
         respectively.

         The FIFO cost of inventories valued under the LIFO cost method were
         approximately $42,575 and $48,972 at October 31, 2001 and 2000,
         respectively. If the FIFO cost method had been used to determine cost,
         inventories would have been $4,415 lower and $1,185 higher at October
         31, 2001 and 2000, respectively.

         As a result of reducing certain inventory quantities valued on the LIFO
         basis, lower (higher) inventory costs prevailing in previous years were
         charged to cost of sales in 2001, 2000 and 1999. The Company calculates
         the effect of LIFO liquidations on net income based on the current cost
         method. The effect was an increase (decrease) in net income of $(35),
         $27 and $400 in 2001, 2000 and 1999, respectively.


8.       PREPAID EXPENSES AND OTHER CURRENT ASSETS

         Prepaid expenses and other current assets consist of the following:

<Table>
 <Caption>
                                                                                   October 31,
                                                                               --------------------
                                                                                2001         2000
                                                                               -------      -------
<S>                                                                            <C>          <C>

       Credit on Peruvian value added tax                                      $4,443       $19,550
       Prepaid Peruvian income tax                                                  -         8,613
       Other                                                                    4,104         5,080
                                                                                -----       -------
                                                                               $8,547       $33,243
                                                                               ======       =======
</Table>

         The value added tax (VAT) paid on purchases can be offset against the
         VAT resulting from local sales, Peruvian income tax and other taxes
         collected by the Peruvian Public Treasury. In addition, the Company may
         apply for a refund in the form of cash or negotiable credit Notes from
         the tax authorities.

         The credits on Peruvian value added tax outstanding as of October 31,
         2001 and 2000 were collected subsequent to year-end.


                                       84
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                      (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         The Company received a refund of income tax prepayments from the
         Peruvian Government of approximately $ 12,700 on June 4, 2001. At the
         same time, the Company paid $ 2,700 for certain tax liabilities.


9.       PROPERTY, PLANT AND EQUIPMENT, NET

         Property, plant and equipment consists of the following:

<Table>
<Caption>
                                                          Average Annual               October 31,
                                                           Depreciation       ----------------------------
                                                               Rate               2001             2000
                                                          --------------      ------------     -----------
<S>                                                         <C>                  <C>             <C>
       Cost:
          Land                                                   -               $  5,989        $ 5,989
          Buildings and improvements                         5% and 10%            22,672         20,224
          Machinery and equipment                                 6.67%            85,597         84,091
          Transportation units                                   33.33%             3,610          3,610
          Other equipment                                   10% and 20%            18,582         13,749
          Construction in progress                               -                 38,529         34,940
                                                                                 --------       --------
                                                                                  174,979        162,603
       Less accumulated depreciation                                               34,732         24,568
                                                                                 --------       --------
                                                                                 $140,247       $138,035
                                                                                 ========       ========
</Table>


10.      ACCRUED LIABILITIES

         Accrued liabilities consist of the following:

<Table>
<Caption>
                                                                                 October 31,
                                                                         ---------------------------
                                                                            2001              2000
                                                                         ----------        ---------
<S>                                                                        <C>              <C>

           Salaries, wages and employee benefits                           $ 6,782          $ 7,787
           Accounts payable to contractors                                   4,199            4,554
           Taxes payable                                                     3,132            1,666
           Due to power company                                              2,116            2,089
           Other accrued liabilities                                         5,564            5,541
                                                                           -------          -------
                                                                           $21,793          $21,637
                                                                           =======          =======
</Table>


                                       85
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                    (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



11.      DEBT

         Long-term debt consists of the following:

<Table>
<Caption>
                                                                                   October 31,
                                                                           --------------------------
                                                                              2001            2000
                                                                           ----------      ----------
<S>                                                                         <C>             <C>
         Revolving credit facility                                          $ 21,000        $ 33,000
         Bank Loan                                                           125,000         125,000
         Deferred purchase price obligation                                     -              1,382

         Sale and leaseback obligations                                        9,393          12,912
         Capital leases                                                          763             321
                                                                            --------        --------
                                                                             156,156         172,615
         Less current maturities                                              25,188           5,112
                                                                            --------        --------
                   Long-term debt, less current maturities                  $130,968        $167,503
                                                                            ========        ========
</Table>

         The revolving credit facility with a Peruvian bank allows Doe Run Peru
         to borrow up to $40,000 and expires June 19, 2002. This revolving
         credit facility provides for advances by the lender to a maximum of
         $40,000 less outstanding letters of credit, guarantee letters and
         customs bonds and is based upon specific percentages of eligible
         receivables and inventories. In addition the lender provides a separate
         line of $ 12,000 for the issuance of certain classes of guarantee
         letters. The sum of the advances on both of these lines is limited to
         $42,000. The Company is currently in negotiations with its lender to
         extend the facility, but has not yet received any commitment.

         The facility bears interest at LIBOR (1-month, 3-month or 6-month rate,
         depending on the term of the loan) plus 2.0% per annum. The facility is
         secured by accounts receivable and inventories. The average effective
         rate was 6.59% at October 31, 2001. An unused line fee of 0.375% per
         annum on the average unused portion of the line is payable quarterly,
         in arrears. Individual loans must be greater than $1,000. Actual
         availability was $9,692 at October 31, 2001.

         The bank loan with a commercial bank matures in a single installment on
         March 12, 2005. Interest on the principal amount of the loan is payable
         semi-annually on each March 12 and September 12, commencing on
         September 12, 1998. Interest on the outstanding principal amount of the
         loan accrues at a rate of 11.50% per annum through September 11, 2004
         and at a rate of 11.25% from September 12, 2004 to March 11, 2005.

         The deferred purchase price obligation was payable to Empresa Minera
         del Centro del Peru S.A. (Centromin) for the assets of the Cobriza mine
         purchased in 1998. The last payment of three in the amount of $1,495
         was paid August 31, 2001.

         In January 1999, Doe Run Peru finalized an agreement for the sale and
         leaseback of its oxygen plant at the La Oroya facility for $17,162. Doe
         Run Peru has an option to repurchase the oxygen plant at the end of the
         five-year lease term for $200. In April 1999, Doe Run Peru entered into
         a three-year sale and leaseback of computer equipment for $761. In
         January 2001 Doe Run Peru entered into a three-year leasing of an
         additional computer equipment and equipment maintenance for $ 746.
         These transactions have been accounted for as financing arrangements.
         The interest rates applicable under the oxygen plant, computer
         equipment and additional computer equipment leases are 12.35%, 8.50%
         and 6.81%, respectively.



                                       86

<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                    (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         The aggregate estimated amounts of long-term debt maturing after
         October 31, 2001 are as follows:

<Table>
                     <S>                                                             <C>
                     Fiscal year ending October 31:
                      2002                                                           $ 25,188
                      2003                                                              4,410
                      2004                                                              1,558
                      2005                                                            125,000
                                                                                     --------
                                                                                     $156,156
                                                                                     ========
</Table>

         The Doe Run Peru revolving credit facility contains certain covenants
         that set a net worth requirement, limit indebtedness and investments
         and restrict the payment of dividends in the event of default. An event
         of default could result in the termination of the revolving credit
         facility and/or the acceleration of all amounts due thereunder. The
         Company was in compliance with the covenants as of October 31, 2001.


12.      OTHER LONG-TERM LIABILITIES

         Other long-term liabilities are principally comprised of estimated
         closure cost of a zinc ferrite site of $7,200, as explained in Note 15.


13.      TAXATION

         (a)      Doe Run Peru and its subsidiary are subject to Peruvian
                  taxation. The statutory income tax rate of 30% is applied
                  separately to the taxable income of each company and not to
                  the consolidated taxable income.

         (b)      Doe Run Peru is a party to a Tax Stabilization Agreement and a
                  Contract of Guarantees and Measures to Promote Investments
                  with the Peruvian Government as follows:

                  TAX STABILIZATION AGREEMENT

                  The Tax Stabilization Agreement expires as of December 31,
                  2006. Under this agreement, Doe Run Peru will utilize tax
                  statutes prevailing as of November 6, 1997. The principal
                  provisions of the agreement are as follows:

                  -   Utilization of the tax statutes prevailing as of April 25,
                      1994. In exercise of the regulation permitted in the tenth
                      clause of the Tax Stabilization Agreement, Doe Run Peru
                      adopted the tax statutes prevailing as of November 6,
                      1997.

                  -   Custom duties will be calculated at rates ranging from 15%
                      to 25%.

                  -   Free trade of its products.

                  -   No restrictions on the use of proceeds from export sales.

                  -   Free conversion of foreign currency generated by local
                      sales.

                  -   No discrimination in foreign currency transactions.


                  CONTRACT OF GUARANTEES AND MEASURES TO PROMOTE INVESTMENTS

                  On December 30, 1997, Doe Run Peru signed a Contract of
                  Guarantees and Measures to Promote Investments. This agreement
                  is effective beginning in the calendar year ended December 31,
                  2007, provided that Doe Run Peru complies with the committed
                  investments


                                       87

<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                      (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                  related to the improvements of the facilities [see Note
                  15(b)], and provides tax stability through December 31, 2022.
                  The principal provisions are similar to those established in
                  the Tax Stabilization Agreement, except that Doe Run Peru will
                  utilize the tax statutes prevailing as of December 23, 1997.

         The provision for Peruvian income tax is comprised of the following for
         the years ended October 31, 2001, 2000 and 1999:

<Table>
<Caption>
                                                                      Year Ended October 31,
                                                                  ------------------------------
                                                                    2001       2000        1999
                                                                  -------    -------     -------
<S>                                                               <C>        <C>         <C>

                Current                                           $   496    $ 4,353     $ 2,541
                Deferred                                            7,671     (3,469)     (6,292)
                                                                  -------    -------     -------
                   Total income tax expense (benefit)             $ 8,167    $   884     $(3,751)
                                                                  =======    =======     =======
</Table>

         Peruvian income tax expense (benefit) differed from the amount computed
         by applying the statutory income tax rate of 30% to income before
         income tax expense (benefit) as a result of the following:

<Table>
<Caption>
                                                                           Year Ended October 31,
                                                                     ---------------------------------
                                                                       2001         2000        1999
                                                                     --------     -------     --------
<S>                                                                  <C>          <C>         <C>

                 Income tax expense at statutory rate                $   480      $(1,499)    $  2,465
                 Increase (reduction) in income tax expense
                     Resulting from:
                        Change in valuation allowance                  4,256       (7,180)     (12,413)
                        Effect of converting Peruvian nuevos
                          Soles into U.S. dollars                    (1,037)        2,833        1,262
                        Non-deductible interest on long term
                           Debt                                        2,531        4,386        4,386
                        Other,  net                                    1,937        2,344          549
                                                                     -------      -------      -------
                                                                     $ 8,167      $   884      $(3,751)
                                                                     =======      =======      =======
</Table>


         Current tax expense decreased as a result of the merger between Doe Run
         Mining and Doe Run Peru, offsetting taxable income of Doe Run Mining
         with losses of Doe Run Peru.


                                       88
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


The tax effects of temporary differences that give rise to significant portions
of the deferred tax assets and deferred tax liabilities are as follows:

<Table>
<Caption>
                                                                                            October 31,
                                                                                     --------------------------
                                                                                        2001          2000
                                                                                     ------------  ------------
<S>                                                                                 <C>            <C>
             Deferred tax assets:
                 Inventories                                                        $      148     $    1,959
                 Property, plant and equipment                                          20,313         27,275
                 Accrued liabilities                                                     1,017          1,348
                 Tax loss carryforwards                                                 20,623         12,315
                 Other noncurrent assets and liabilities                                 3,167          2,851
                                                                                     ------------  ------------
                                                                                        45,268         45,748
                 Less valuation allowance                                              (30,159)       (25,903)
                                                                                     ------------  ------------
                        Total deferred tax assets                                       15,109         19,845
                                                                                     ------------  ------------

             Deferred tax liabilities:
                 Inventories and other current assets                                        -           (628)
                 Property, plant and equipment                                         (15,109)       (12,027)
                                                                                     ------------  ------------
                        Total deferred tax liabilities                                 (15,109)       (12,655)
                                                                                     ------------  ------------

                        Net deferred tax assets                                      $       -     $    7,190
                                                                                     ============  ============
</Table>


         The tax loss carryforwards in Peru are available for use for four years
         beginning with the first year the Company obtains taxable income
         against which it can take a credit.

         Management believes that sufficient uncertainty exists regarding the
         realization of certain deferred tax assets and that a valuation
         allowance is required. Changes in the valuation allowance reflects a
         change in management's assessment regarding the future realization of
         deferred tax assets as a result of the current estimates of future
         earnings and liquidity.


14.      EMPLOYEE BENEFITS

         SEVERANCE INDEMNITIES

         Doe Run Peru is required to make semiannual deposits into a bank
         account for severance indemnity benefits for Peruvian employees under
         Peruvian government regulations. The balance in the account represents
         the full benefit due to such employees upon termination. The Company
         accrues for the additional amount that would be contributed to the
         account since the last deposit date as if all such employees were to
         terminate as of the balance sheet date. The Company's expense related
         to severance indemnity benefits was $2,946, $2,951 and $2,786 for the
         years ended October 31, 2001, 2000 and 1999, respectively.

         WORKERS' PROFIT SHARING

         In accordance with government regulations in Peru, employees are
         entitled to receive 8% of the Doe Run Peru's taxable income, 50% of
         which is distributed to employees based on number of days worked, and
         the remaining distributed in proportion to their salaries. Such profit
         sharing, which is tax


                                       89

<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         deductible, is limited to 18 times the annual salary for each worker.
         Any excess is to be reserved and used for training of the workers. The
         Company had no expense relating to workers' profit sharing payments
         years ended October 31, 2001, 2000 and 1999, due to tax losses in those
         years.

         In addition, the Company recorded the deferred workers' profit sharing
         asset of $0 and $2,094 at October 31, 2001 and 2000, respectively,
         representing the amount the Company expects to recover through future
         reduction of workers' profit sharing payments.

15.      COMMITMENTS AND CONTINGENCIES

         INVESTMENT COMMITMENTS

         (a)  According to the Contract described in Note 2, Doe Run Peru is
              obligated to expend $120,000 through October 23, 2002 to expand
              and modernize its operations, including certain expenditures to
              comply with environmental regulations within Peru, as discussed
              below. In the event that Doe Run Peru has not fulfilled its
              obligations under the investment commitment by the end of October
              23, 2002, it will be obligated to pay a penalty to Centromin equal
              to 30% of any shortfall. Centromin has approved qualifying
              expenditures through October 31, 2001 totaling approximately
              $102,712. Although there can be no assurance, management
              anticipates that capital and other qualifying expenditures during
              2002 will enable Doe Run Peru to meet its investment commitment.
              Management plans to fund these expenditures primarily from future
              operating cash flows.

         (b)  According to the Contract of Guarantees and Measures to Promote
              Investments mentioned in Note 13(b), (as modified in April, 2001)
              Doe Run Peru has committed to performing certain economic
              expansion projects by December 31, 2006, in order to provide tax
              stability from January 1, 2007 through December 31, 2022. Doe Run
              Peru expects to spend $105,587 to expand and modernize its
              facilities, including environmental expenditures. To the extent
              the related investments are made before October 23, 2002, they can
              also be considered as part of the $120,000 investment discussed in
              the above paragraph. Through October 31, 2001, Doe Run Peru has
              invested approximately $37,357.

         ENVIRONMENTAL MATTERS

         Doe Run Peru submitted to and received approval from the Peruvian
         government for an Environmental Adjustment and Management Program
         (PAMA) that consisted of an environmental impact analysis, monitoring
         plan and data, mitigation measures and closure plan. The PAMA also sets
         forth the actions and corresponding annual investments the concession
         holder agrees to undertake in order to achieve compliance with the
         maximum applicable limits prior to expiration of the PAMA (ten years
         for smelters, such as Doe Run Peru's operations in La Oroya, and five
         years for any other type of mining or metallurgical operation like
         Cobriza). The required amount of annual investment must not be less
         than one percent of annual sales. Once approved, the PAMA functions as
         the equivalent of an operating permit with which the operator must
         comply. After expiration of the PAMA, the operator must comply with all
         applicable standards and requirements. Future changes in legal rules
         and maximum permissible levels would not be applicable to Doe Run Peru
         for the remaining period of the PAMA.


                                       90
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


         Doe Run Peru has committed under its PAMA to implement the following
         projects at its La Oroya smelter through December 31, 2006:

         o  New sulfuric acid plants
         o  Treatment plant for the copper refinery effluent
         o  Industrial waste water treatment plant for the smelter and refinery
         o  Improve Huanchan lead and copper slag deposits
         o  Build an arsenic trioxide deposit
         o  Management and disposal of lead and copper slag wastes
         o  Domestic waste water treatment and domestic waste disposal
         o  Monitoring station

         Through October 31, 2001, the Company had spent approximately $25,000
         on projects under the La Oroya PAMA.

         Annual spending on a calendar year basis approved in the La Oroya PAMA
         as amended, most recently on January 25, 2002 are as follows:

<Table>
<Caption>
                                                Estimated
                       Year                        Cost
                       ----                     ---------
<S>                                             <C>

                       2002                        5,750
                       2003                        9,350
                       2004                       12,800
                       2005                       53,500
                       2006                       67,700
                                                --------
                                                $149,100
                                                ========
</Table>

         The current estimate for the total to be expended on environmental
         projects under the PAMA and on additional related process changes for
         Doe Run Peru is approximately $174,000 for this period.

         Doe Run Peru's operations historically and currently exceed some of the
         applicable Ministry of Energy and Mines (MEM) maximum permissible
         limits pertaining to air emissions, ambient air quality and waste water
         effluent quality. The PAMA projects, which are more fully discussed
         below, have been designed to achieve compliance with such requirements
         prior to the expiration of the PAMA on January 13, 2007. No assurance
         can be given that implementation of the PAMA projects is feasible or
         that their implementation will achieve compliance with the applicable
         legal requirements by the end of the PAMA period. Further, there can be
         no assurance that the Peruvian government will not in the future
         require compliance with additional or different environmental
         obligations that could adversely affect Doe Run Peru's business,
         financial condition or results of operations. Under the purchase
         agreement related to the acquisition of the La Oroya assets in October
         1997, Empresa Minera del Centro del Peru S.A. (Centromin), the previous
         owner of the La Oroya assets, agreed to indemnify Doe Run Peru against
         environmental liability arising out of its prior operations, and
         performance of the indemnity has been guaranteed by the Peruvian
         government through the enactment of the Supreme Decree No. 042-97-PCM.
         However, there can be no assurance that Centromin will satisfy its
         environmental obligations and investment requirements, including those
         in its PAMA, or that the


                                       91


<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


         guarantee will be honored. Any failure by Centromin to satisfy its
         environmental obligations could adversely affect Doe Run Peru's
         business, financial condition or results of operations.

         The Cobriza mine has a separate PAMA in which the Company has committed
         to complete projects to manage tailings, mine drainage, sewage and
         garbage by mid-2002. The Company has spent approximately $8,800 under
         the PAMA as of October 31, 2001. After beginning construction on the
         largest of the projects, the tailings backfill project, revisions to
         the cost estimate increased substantially. As a result, the Company has
         requested a revision of its PAMA from the MEM, which would allow it to
         operate for a time without completing the backfill project. Future
         economic and operating conditions could affect the Company's ability to
         complete the backfill project. The Company is currently in compliance
         with its requirement to reduce emissions from the mine under the PAMA
         through a decrease in production. In April 2002, the MEM proposed a
         pending regulation extending the PAMA for all companies for an
         additional 18 months for work remaining under the PAMA. For companies
         still not in compliance at the end of this 18-month extension period,
         each company would have an additional six months to close the
         operation. In light of this pending regulation, Doe Run will be
         re-evaluating its options with the expectation that a decision will be
         made within the next six to twelve months regarding the future course
         of action to be taken.

         ZINC FERRITE DISPOSAL

         According to the Subscription Agreement governing the purchase of La
         Oroya, the Company was entitled to use the existing zinc ferrite
         disposal site until October 23, 2000. After this date, the Company
         could take ownership of this deposit or abandon it, create a new site,
         and remit to Centromin $7,200, the estimated cost of closure. On
         September 29, 2000, the Company decided to take ownership of this
         deposit. Therefore, it subscribed an agreement with Centromin for
         transferring to the Company the concessions (lands), including the zinc
         ferrite existing in the deposit. Pursuant to this contract, the
         transfer was effective as of October 22, 2000. The Company has accrued
         $7,200 for the closure costs and, although a plan for closure of the
         site has not been finalized, management believes that this reserve is
         adequate.

         LITIGATION

         All existing and pending litigation at the time of the acquisition of
         Metaloroya was retained by Centromin. The Company is from time to time,
         a party to litigation arising in normal course of its business.
         Management believes that none of these actions will have a material
         adverse effect on the financial position or results of operations of
         the Company.

         LETTERS OF CREDIT

         At October 31, 2001 the Company had outstanding customs bonds of $4,441
         relating to concentrate and other purchases.

         SALES COMMITMENTS AND CONCENTRATION

         The Company has commitments to sell approximately 54%, 74%, 75%, 38%
         and 100% of its anticipated 2002 lead, copper, zinc, silver and gold
         metal production, respectively under agreements, with terms of
         generally less than one year. Sales prices are generally based on the
         average quoted exchange prices for the month of shipment, plus a
         premium.


                                       92
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         Doe Run Peru derives its revenue from the sale of its refined metals
         and other products to numerous customers. Doe Run Peru's three largest
         customers accounted for: 9%, 8% and 8%, respectively, of net sales in
         the year ended October 31, 2001, 10%, 10% and 7%, respectively, of net
         sales in the year ended October 31, 2000 and 8%, 8%, and 6%,
         respectively for the year ended October 31, 1999. The customers have
         sales contracts, under which the Company will supply products at prices
         based on international market quotations.

16.      HEDGING AND DERIVATIVE FINANCIAL INSTRUMENTS

         The Company uses derivative financial instruments primarily to enhance
         revenue by receiving premiums on option contracts. The Company sells
         futures contracts and options and combinations thereof that effectively
         establish contract prices for sales and purchases that are acceptable
         to the Company, should the options be exercised. The options generate
         premium income, which enhance revenues. Because these instruments do
         not meet the requirements for hedge accounting under FAS 133, the
         changes in fair market value related to these instruments (including
         the time value portion), which reflect market prices and volatility at
         the balance sheet date, are recorded in results of operations, and are
         expected to increase the volatility of reported results.

         The unrealized gain reflected in the statement of operations relates to
         the change in fair market value of derivative financial instruments
         that are not designated as hedges. For derivative instruments
         designated as hedges (futures contracts), the Company assesses
         effectiveness based on changes in the forward rate, and as a result,
         does not expect hedge ineffectiveness.

         The fair market value of the Company's derivative financial instruments
         reflected in the Company's balance sheet as of October 31, 2001 is the
         difference between quoted prices at the balance sheet date and the
         contract settlement value. The fair market value represents the
         estimated net cash the Company would receive (pay) if the contracts
         were canceled on the balance sheet date.

         The Company's open hedging positions as of October 31, 2001 were:
         (numbers not in thousands)

         SOLD/(PURCHASED) FUTURES CONTRACTS

<Table>
<Caption>
                                                                   Fair market
         Metal            Quantity            Price range             value               Period
       --------       ----------------     ------------------     ------------        ---------------
       <S>            <C>                   <C>                  <C>                  <C>
       Copper                550 tons        $1,771.00/ton           $286,550             Nov 01
                            (564) tons       $1,775.27/ton          ($260,626)         Nov 01 - Dec 01
       Lead                4,134 tons         $439.98/ton             $31,706          Nov 01 - Dec 01
                          (3,858) tons        $429.97/ton             $10,137          Nov 01 - Dec 01
       Silver            960,022 oz            $5.18/oz            $1,283,350             Nov 01
                       (1,097,168) oz          $5.38/oz           ($1,678,663)            Nov 01
</Table>


                                       93
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         SOLD / (PURCHASED) CALL OPTION CONTRACTS


<Table>
<Caption>
                                                                            Fair market
         Metal           Quantity                  Price range                 value            Period
       --------        ------------       -----------------------------     -----------     --------------
<S>                    <C>                <C>                               <C>             <C>
       Copper              1,990 tons     $1,440.00/ton - $1,632.93/ton        ($1,767)     Nov 01 -- Mar 02
                            (551) tons            $1,632.93/ton                   $171           Mar 02
       Silver          1,141,055 oz            $4.01/oz to $4.56/oz           ($67,018)     Dec 01 -- Mar 02
                        (482,754) oz                 $4.01/oz                  $26,075       Dec 01 - Jan 02
       Zinc                  551 tons              $798.00/ton                 ($1,590)      Nov 01 - Feb 02
       Gold               10,533 oz          $246.09/oz to $252.47/oz        ($117,294)      Dec 01 - Mar 02
                          (4,608) oz         $246.09/oz to $264.32/oz          $33,671           Dec 01
</Table>

       SOLD / (PURCHASED) PUT OPTION CONTRACTS

<Table>
<Caption>
                                                                              Fair market
        Metal            Quantity                  Price range                   value            PERIOD
       -------         ------------       -------------------------------     -----------     ---------------
<S>                     <C>                <C>                                <C>             <C>
       Copper             1,426 tons       $1,360.78/ton to $1,542.21/ton      ($380,376)     Nov 01 - Mar 02
                           (400) tons               $1,560.00/ton               $124,000          Nov 01
       Silver           482,754 oz              $3.82/oz to $3.92/oz            ($66,602)     Jan 02 - Mar 02
       Lead               1,543 tons                $439.98/ton                 ($29,076)     Nov 01 - Dec 01
       Gold               8,119 oz                   $236.97/oz                 ($17,588)         Mar 02
</Table>

         At October 31, 2001, the Company had recorded an asset and a liability
         of $520 and $1,345 related to the fair market values of these
         instruments. To affect this balance, the Company recorded the
         transition adjustment discussed in Note 4 and a gain of $1,198, net of
         the effect of balances of deferred option premiums and options at fair
         market value previously recorded on the balance sheet.

         The Company's open hedging positions as of October 31, 2000 were:
         (numbers not in thousands)

         SOLD/(PURCHASED) FUTURES CONTRACTS

<Table>
<Caption>
                                                                         Fair market
         Metal           Quantity                Price range                 value          Period
       --------       --------------     --------------------------      -----------    ---------------
<S>                    <C>               <C>                              <C>           <C>
       Copper            (5,096) tons    $0.8140/lb. to $0.9072/lb.       ($682,619)    Nov 00 - Mar 01
       Zinc              (4,795) tons    $0.4967/lb. to $0.5053/lb.        ($99,674)    Nov 00 - Dec 00
       Silver          (175,000) oz.       $5.59/oz. to $5.70/oz.         ($217,975)    Nov 00
</Table>

         SOLD / (PURCHASED) CALL OPTION CONTRACTS

<Table>
<Caption>
                                                                            Fair market
         Metal           Quantity                Price range                    value           Period
       --------       --------------       ----------------------------     ------------    ---------------
<S>                     <C>                 <C>                             <C>             <C>
       Copper             8,848 tons        $0.8000/lb. to $0.9000 /lb.     ($1,100,385)    Nov 00 - Aug 01
       Zinc               1,102 tons         $0.5670/lb. to $0.5670/lb.         ($2,100)    Nov 00 - Mar 01
       Silver           150,000 oz.            $5.00/oz. to $5.10/oz.           ($4,200)    Nov 00 - Dec 00
       Gold               3,000 oz.          $285.00/oz. to $290.00/oz.         ($2,600)    Nov 00 - Dec 00
</Table>


                                       94
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         SOLD / (PURCHASED) PUT OPTION CONTRACTS

<Table>
<Caption>
                                                                             Fair market
         Metal           Quantity                  Price range                   value          Period
       --------       --------------        ---------------------------      -----------   ---------------
<S>                     <C>                 <C>                              <C>           <C>
       Copper             1,261 tons        $0.8200/lb. to $0.8845 /lb.       ($275,000)   Nov 00 - Feb 01
       Zinc               3,197 tons         $0.4876/lb. to $0.4990/lb.        ($80,600)   Nov 00 - Mar 01
       Silver           200,000 oz.            $4.70/oz. to $4.85/oz.          ($22,500)   Nov 00 - Dec 00
       Gold               3,000 oz.          $270.00/oz. to $280.00/oz.        ($33,700)   Nov 00 - Dec 00
</Table>

         Sold put option contracts used by the Company to offset certain fixed
         price sales to customers did not meet the definition of a hedge, and
         the net mark to market adjustment prior to the adoption of FAS 133
         related to these contracts was a loss of $242 for the year ended
         October 31, 2000. No net mark to market adjustments was required in the
         year ended October 31, 1999.


17.      FAIR VALUE OF FINANCIAL INSTRUMENTS

         The fair values of the Company's long-term debt were estimated using
         discounted cash flow analysis, based on the estimates of incremental
         borrowing rates for similar types of borrowing arrangements. At October
         31, 2001 and 2000, the fair values of the Company's financial
         instruments, except for the hedge positions described in Note 16, were
         not materially different from their carrying amounts.

18.      RELATED PARTY TRANSACTIONS

         The Company through Doe Run Mining and Doe Run Peru, has signed the
         following agreements with Doe Run Resources Corporation:


        (a)   Doe Run Mining was a party to a Technical, Managerial and
              Professional Services Agreement, under which Doe Run Resources
              committed to provided the necessary resources for managerial,
              financial, communications, information technology and operating
              services. Doe Run Mining paid $5,512 in the years ended October
              31, 2000 and 1999, respectively. The contract was terminated
              effective October 31, 2000.

              Doe Run Mining was a party to a Technical Assistance Agreement,
              under which Doe Run Resources committed to provide technological
              assistance and technology transfer. Doe Run Mining paid $ 357 in
              the years ended October 31, 2000 and 1999, respectively. In
              conformity with the addendum to the original contract signed on
              November 1, 2000. The contract was terminated effective October
              31, 2000.

        (b)   Doe Run Peru was a party to a Foreign Sales Agency and Hedging
              Services Agreement, under which Doe Run Resources agreed to
              perform marketing and selling of metallurgical products and
              trading and hedging services. The contract was terminated October
              31, 2000 and replaced with an International Sales Agency Services
              Contract and a Hedging Services Contract. The commission was 3% of
              the foreign sales. The amounts expensed were $13,073 and $11,821
              for the years ended October 31, 2000 and 1999, respectively.

              Pursuant to the terms and conditions included in the International
              Sales Agency Services Contract, Doe Run Resources agreed to
              perform marketing and sales services for Doe Run Peru. The term of
              this agreement is for two years after which it is automatically
              renewed on an annual

                                       95
<Page>


                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


              basis unless either party gives notice of non-renewal. The
              commission is 2.25% of the sales revenue. Doe Run Peru paid $8,818
              for the year ended October 31, 2001.

              Pursuant to the terms and conditions included in the Hedging
              Services Contract, Doe Run Resources agreed to perform trading and
              hedging services. The term of this agreement is for two years
              after which it is automatically renewed on an annual

              basis unless either party gives notice of non-renewal. The
              commission is $42 per month. Doe Run Peru paid $504 for the year
              ended October 31, 2001.

         In addition to the above described, the following balances relating to
         intercompany transactions were outstanding as of October 31, 2001 and
         2000:

         (a)  As a result of these transactions,  the Company had a due to
              related parties of $ 8,873 and $10,917 at October 31, 2001 and
              2000, respectively.

         (b)  Sales of refined metals to Doe Run Resources were $0, $1,573 and
              $2,898 for the years ended October 31, 2001, 2000 and 1999,
              respectively. There were no balances outstanding relating to these
              sales as of October 31, 2001 and 2000, respectively.

         Doe Run Cayman and its wholly-owned subsidiary, Doe Run Peru have
         jointly and severally, fully, unconditionally guaranteed $200,000
         11.25% senior Notes due 2005 and $55,000 floating interest rate senior
         Notes due 2003, issued by Doe Run Resources (collectively, the
         Unsecured Notes). Additionally, the above-referred companies together
         with their subsidiaries have jointly and severally, fully,
         unconditionally guaranteed $50,000 aggregate principal amount of 11.25%
         senior Secured Notes due 2005, issued by Doe Run Resources (the Secured
         Notes).

         The guarantee of Doe Run Peru is contractually subordinated to the
         indebtedness of Doe Run Peru under the Revolving Credit Facility
         described in Note 11.

         The Secured Notes and the Unsecured Notes contain certain covenants
         that limit the ability of Doe Run Peru and its subsidiary to, among
         other things, incur additional indebtedness, make certain restricted
         payments, consummate certain asset sales, enter into certain
         transactions with affiliates, incur lines, impose restrictions on the
         ability of a subsidiary to pay dividends or make certain payments to
         Doe Run Resources and its subsidiaries, merge or consolidate with any
         other person or sell, assign, transfer, lease, convey or otherwise
         dispose of all or substantially all of its assets. The Company is in
         compliance with these covenants as of October 31, 2001.


                                       96
<Page>



                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


19.      GEOGRAPHIC DATA

         The following is an analysis of net sales by country of destination:

<Table>
<Caption>
                                                 2001              2000              1999
                                              ---------         ---------         ---------
<S>                                           <C>               <C>               <C>

       USA                                    $ 120,119         $ 154,911         $ 159,506
       Brazil                                    67,052            59,555            50,184
       Japan                                     55,848            67,918            29,183
       United Kingdom                            54,039            48,982            37,379
       Peru                                      46,892            56,126            68,333
       Switzerland                               22,711             6,310                 -
       Venezuela                                 14,387            11,752             8,366
       Chile                                     10,016             9,220             6,689
       Colombia                                  12,121            12,827             9,028
       Italy                                      9,627            10,372            10,713
       Mexico                                     7,262            11,441            13,411
       India                                      2,005             5,054            28,864
       Germany                                        -            12,491             8,951
       Other                                     17,225            25,827            34,025
                                              ---------         ---------         ---------
          Total sales                         $ 439,304         $ 492,786         $ 464,632

       Less:
          Sales expense, net                      4,968             5,138             4,300
                                              ---------         ---------         ---------
          Total net sales                     $ 434,336         $ 487,648         $ 460,332
                                              =========         =========         =========
</Table>


20.      LIQUIDITY

         Deteriorating market conditions over the past four years, coupled with
         the Company's substantial debt service requirements, have severely
         reduced the Company's liquidity. In fiscal 2001, cash from operating
         activities was sufficient to meet the Company's capital and debt
         service requirements only because of a significant reduction in working
         capital. In addition to a $23,720 reduction of tax receivables, the
         Company reduced inventories by $6,212.

         On March 12, 2002, Doe Run Peru, with the consent of its parent
         company, The Doe Run Resources Corporation, (Doe Run) did not pay
         $7,031 of interest due to Banco de Credito Overseas Limited (the Bank)
         under a Contract for a Loan in Foreign Currency. Failure to pay such
         interest was cured by instructing the Bank to offset the amount of such
         payment against the amount otherwise payable by the Bank to Doe Run
         under a Special Term Deposit Contract.

         Due to the non-payment of interest due March 15, 2002 on the 11 1/4%
         Senior Notes due 2005, Floating Interest Rate Senior Notes due 2003 and
         11 1/4% Senior Secured Notes due 2005 (collectively, the Notes), and
         the expiration of the grace period during which Doe Run could cure the
         non-payment, the Company, as a guarantor is in default of its covenants
         under the Notes indentures and its revolving credit facilities. No
         actions have been taken by the lenders to accelerate the payment of
         outstanding debt balances. Doe Run is in restructuring negotiations as
         described below and in negotiations with the lenders of its revolving
         credit facilities to execute amended revolving credit facilities.




                                       97
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         On April 15, 2002, Doe Run announced that it had reached an agreement
         in principle with Renco and Regiment Capital Advisors, LLC (Regiment)
         for Renco and Regiment to provide Doe Run with significant capital for
         the purpose of restructuring its existing debt. Pursuant to the
         agreement in principle, Renco will purchase $20 million of Doe Run's
         preferred stock and Regiment, a significant holder of the Notes, will
         commit to lend Doe Run $35 million and will offer other holders of
         Notes the opportunity to participate in making such loan.

         Under the proposed restructuring transaction, Doe Run would make a cash
         tender offer for a portion of the Notes and an exchange offer for the
         balance of the Notes. The $55 million in proceeds of the Renco
         investment and the loan, together with borrowings under its revolving
         credit facility would be used to finance the cash tender offer, to pay
         the accrued interest as of March 15, 2002 on the Notes exchanged in the
         exchange offer and to pay certain costs of the transactions. If
         successful, the cash tender offer and the exchange offer would
         significantly reduce Doe Run's future debt service and provide
         sufficient liquidity to continue to operate all its facilities at
         present levels and will not adversely affect Doe Run's trade
         creditors.

         The non-binding agreement in principle is subject to agreement on the
         terms of definitive documentation and the successful completion of the
         transactions is subject to several conditions, including, among others,
         the participation by holders of at least 90% of the aggregate principal
         amount of each class of Notes in the cash tender offer and/or the
         exchange offer and the satisfactory modification of Doe Run's United
         States and Peruvian revolving credit facilities.


                                       98
<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                     (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURES

         None.

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         The following table sets forth certain information regarding the
directors and executive officers of the Company:

<Table>
<Caption>
NAME                                   AGE                        POSITION
-----                                  ---                        --------
<S>                                     <C> <C>
  Ira Leon Rennert..................... 67  Chairman and sole Director of the Company,
                                            Doe Run Cayman and FPI
  Jeffrey L. Zelms..................... 57  Vice Chairman, President and Chief Executive
                                            Officer of the Company and President of Doe
                                            Run Cayman
  Marvin K. Kaiser..................... 60  Executive Vice President and Chief Financial
                                            and Administrative Officer of the Company,
                                            Vice President and Chief Financial Officer of
                                            FPI, Vice President of Doe Run Cayman and
                                            Finance Manager of Doe Run Peru
  Richard L. Amistadi.................. 57  Vice President Sales and Marketing of the Company
  Kenneth R. Buckley................... 63  Vice President of the Company and General Manager
                                            of Doe Run Peru and Cobriza
  Jerry L. Pyatt....................... 46  Vice President and Chief Operating Officer of the
                                            Company's U.S. Operations and President of FPI
  Juan Carlos Huyhua, Ph.D............. 49  Operations Manager of Doe Run Peru
</Table>

         Ira Leon Rennert has been Chairman, Chief Executive Officer and deemed
beneficial shareholder of the parent company, Renco (including predecessors),
since Renco's first acquisition in 1975, Chairman and Director of the Company
since April 1994, Chairman and Director of Doe Run Cayman since October 1997 and
Chairman and Director of FPI since August 1996. Renco holds controlling
interests in a number of mining and manufacturing concerns operating in
businesses not competing with the Company including Renco Steel Holdings, Inc.,
WCI Steel, Inc., Renco Metals, Inc., AM General Corporation, for all of which he
serves as Chairman of the Board of Directors. Mr. Rennert also serves as
Chairman of the Board of Directors of Lodestar Holdings, Inc. in which he holds
a controlling interest. Renco Metals, Inc. (effective August 2, 2001) and
Lodestar Holdings, Inc. (effective April 27, 2001) and their respective
subsidiaries are curently operating under Chapter 11 of the U.S. Bankruptcy
Code.

         Jeffrey L. Zelms has served as Vice Chairman of the Company since
December 1998 and as President and Chief Executive Officer of the Company and
its predecessor since August 1984 and President of Doe Run Cayman since October
1997. Mr. Zelms has over 30 years of experience in the mining industry. Mr.
Zelms serves on the boards of directors of Homestake Mining Company and Phoenix
Textiles.

         Marvin K. Kaiser has served as Executive Vice President and Chief
Financial and Administrative Officer since September 2001, as Vice President and
Chief Financial Officer of the Company and its predecessor since January 1994
and of FPI since April 1998, Vice President of Doe Run Cayman since October 1997
and Finance Manager of Doe Run Peru since October 1997. From June 1989 to
December 1993, Mr. Kaiser was the Chief Financial Officer of AMAX Gold, Inc., a
gold producing company. Mr. Kaiser is a Certified Public Accountant.

         Richard L. Amistadi has served as Vice President of Sales and Marketing
of the Company and its predecessor since November 1986. Mr. Amistadi has over 30
years of experience in sales, marketing and product development of lead metal,
lead alloys, zinc metal, lead, zinc and copper concentrates and associated
by-products.

         Kenneth R. Buckley has served as Vice President of the Company since
September 1996, General Manager of Doe Run Peru since October 1997 and General
Manager of Cobriza since August 31, 1998. From January 1996 until September
1996, Mr. Buckley was Vice President of Smelting for the Company. Mr. Buckley
served as General Manager of the Resource Recycling Division for the Company and
its predecessor from September 1988 until January 1996. Mr. Buckley has over 35
years of experience in managing metal milling and smelting operations in five
countries.


                                       99

<Page>

                               DOE RUN PERU S.R.L.

                     NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)
                      (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



         Jerry L. Pyatt has served as Vice President and Chief Operating Officer
Of the Company's U.S. operations since September 2001. Prior to that time Mr.
Pyatt served as Vice President Secondary Smelting of the Company, General
Manager of the Company's Resource recycling Division and he has been President
of FPI since October 1, 1998. Mr. Pyatt joined the Company in 1991 as a
Metallurgical Engineer.

         Juan Carlos Huyhua, Ph. D., has been Operations Manager of Doe Run Peru
since October 1997. From January 1995 to June 1997, Dr. Huyhua was Chief
Operating Officer of Centromin. Dr. Huyhua has served in various capacities for
Centromin since 1978, including as Assistant General Manager--Metallurgical
Operations, General Superintendent--Smelting and Refining Department and
Manager--Metallurgical Operations. Dr. Huyhua received his doctorate in
Extractive Metallurgy from the New Mexico Institute of Mining and Technology in
1989.


ITEM 11.  EXECUTIVE COMPENSATION

         The following table sets forth certain information concerning
compensation of the named executive officers by the Company for services
rendered to it in all capacities:

                           SUMMARY COMPENSATION TABLE

<Table>
<Caption>
                                                                     ANNUAL                               AMOUNTS
                                                                 COMPENSATION(A)                          UNPAID AT
                                                   FISCAL      -------------------       ALL OTHER       OCTOBER 31,
      NAME AND POSITION                             YEAR       SALARY        BONUS    COMPENSATION(B)       2001
      -----------------                             ----       ------        -----    ---------------       ----
<S>                                                 <C>       <C>          <C>        <C>                 <C>

Ira Leon Rennert(c)                                 2001          --          --       $2,400,000         $1,600,000
   Chairman of the Board and sole Director          2000          --          --        2,400,000              --
                                                    1999          --          --        2,400,000              --
-------------------------------------------------------------------------------------------------------------------
Jeffrey L. Zelms                                    2001      $500,000        --           75,157              --
   Vice Chairman, President and Chief               2000       500,000     $200,000       121,463           200,000
    Executive Officer                               1999       253,821      400,000        68,401           400,000
-------------------------------------------------------------------------------------------------------------------
Marvin K. Kaiser                                    2001       244,375        --           25,344             --
    Executive Vice President and Chief              2000       240,000       40,000        41,796            40,000
    Chief Financial and Administrative Officer      1999       195,000       80,000        38,851            80,000
-------------------------------------------------------------------------------------------------------------------
Richard L. Amistadi                                 2001       213,000        --           22,996             --
    Vice President Sales and Marketing              2000       213,000       37,000        38,763            37,000
                                                    1999       187,500       75,000        37,517            75,000
-------------------------------------------------------------------------------------------------------------------
Kenneth R. Buckley                                  2001       200,000        --          150,221             --
    President - Doe Run Peru                        2000       200,000       93,333       124,762            93,333
                                                    1999       185,400      158,333       124,219           158,333
-------------------------------------------------------------------------------------------------------------------
Jerry L. Pyatt                                      2001       164,749        --           23,041             --
    Vice President and Chief Operating              2000       150,000       51,000        21,297            51,000
     Officer - U.S. Operations                      1999       121,665       60,000        13,451            60,000
-------------------------------------------------------------------------------------------------------------------
</Table>


(a)      Value of perquisites and other personal benefits did not exceed the
         lesser of $50,000 or 10% of total salary and bonus for any named
         executive officer.

(b)      The amounts shown as "All Other Compensation" in the table for fiscal
         2001 for each named executive officer, except Mr. Rennert, represent
         payments to Messrs. Zelms, Kaiser, Amistadi, Buckley and and Pyatt
         under the gainsharing and profit sharing plans of $42,715, $20,544,
         $18,196, $12,728 and $22,641, respectively, auto allowance of $11,236
         for Mr. Zelms and $4,800 of for Messrs. Kaiser, Amistadi and Pyatt,
         $21,206 of life insurance premiums, tax services and medical expenses
         for Mr. Zelms and $137,493 of expatriate compensation for Mr. Buckley.

(c)      Mr. Rennert receives no compensation directly from the Company. He is
         Chairman of the Board and the deemed beneficial shareholder of Renco
         which receives a management fee from the Company pursuant to the
         Management Consultant Agreement (as defined). The amount shown as all
         other compensation to Mr. Rennert are the management fees paid by the
         Company to Renco. See "Item 13. Certain Relationships and Related
         Transactions."


                                      100
<Page>



NET WORTH APPRECIATION AGREEMENTS

         Certain of the named executive officers (not including Mr. Rennert)
and five other current and former employees of the Company are each parties to
net worth appreciation agreements with the Company, pursuant to which, upon
termination of each person's employment with the Company, he is entitled to
receive a fixed percentage of the increase in the net worth of the Company, as
defined, from a base date until the end of the fiscal quarter preceding the date
of his termination. Such amount is payable without interest in 40 equal
quarterly installments, commencing three months after the termination of each
person's employment, and at three month intervals thereafter. In addition, Mr.
Buckley's agreement provides for a "Peru Credit" under which he is entitled to
receive a fixed percentage of the cumulative net income of Doe Run Peru S.R.L.
with provisions similar to those described above. Four other employees are
parties to net worth appreciation agreements providing for a Peru Credit.

         The following table summarizes the net worth appreciation agreements
now held by the named executive officers and the amounts earned thereunder.

<Table>
<Caption>
                                                                                       ACCUMULATED
                                                                                          AS OF
                                                    NET WORTH                          OCTOBER 31,
                                                   PERCENTAGE          BASE DATE         2001 (A)
                                                   ----------          ---------       -----------
<S>                                                    <C>             <C>             <C>

Jeffrey L. Zelms.................................      5.0%              4/7/94         $      -
Marvin K. Kaiser.................................      1.0               4/7/94                -
Richard L. Amistadi..............................      1.5               4/7/94                -
Kenneth R. Buckley...............................      0.5               4/7/94                -
Kenneth R. Buckley - Peru Credit.................      1.0             10/23/97          301,920
</Table>

-----------

(a)      Represents the gross aggregate amount that each participant is entitled
         to receive as of October 31, 2001 subject to the vesting terms of the
         applicable agreement.

         The net worth appreciation agreements also provide that, in the event
of payment of a dividend or a sale of the Company, the active participants will
be entitled to receive a percentage of the dividend or the net proceeds of the
sale equal to their maximum percentages under the agreements.


                                      101
<Page>


RETIREMENT PLANS

         The following table shows the estimated amount of annual retirement
income (calculated as a straight life annuity benefit) payable to employees
under The Doe Run Resources Corporation Retirement Plan for Salaried
Employees(the Plan), supplemented by the Doe Run Resources Corporation
Supplemental Employee Retirement Plan (SERP). The SERP is a non-qualified plan
under which any benefits not payable from Plan assets by reason of the
limitations imposed by the Internal Revenue Code of 1986, as amended (the Code)
are paid by the Company. The benefits paid are not subject to any deduction for
Social Security or other offset amount.

<Table>
<Caption>
                                                 PENSION PLAN TABLE

                                          Approximate Annual Retirement Benefits
                           -------------------------------------------------------------------------------
         Final Average      15 Years of    20 Years of    25 Years of    30 Years of    35 Years of
         Compensation         Service        Service        Service        Service        Service
         -------------     -------------  -------------  -------------  -------------  ------------
         <S>               <C>            <C>            <C>            <C>            <C>

          $ 125,000          $ 28,125       $ 37,500       $  46,875      $ 56,250       $ 65,625
            150,000            33,750         45,000          56,250        67,500         78,750
            175,000            39,375         52,500          65,625        78,750         91,875
            200,000            45,000         60,000          75,000        90,000        105,000
            225,000            50,625         67,500          84,375       101,250        118,125
            250,000            56,250         75,000          93,750       112,500        131,250
            300,000            67,500         90,000         112,500       135,000        157,500
            400,000            90,000        120,000         150,000       180,000        210,000
            450,000           101,250        135,000         168,750       202,500        236,250
            500,000           112,500        150,000         187,500       225,000        262,500
            600,000           135,000        180,000         225,000       270,000        315,000
            700,000           157,500        210,000         262,500       315,000        367,500
            800,000           180,000        240,000         300,000       360,000        420,000
            900,000           202,500        270,000         337,500       405,000        472,500
          1,000,000           225,000        300,000         375,000       450,000        525,000
</Table>

         Retirement benefits are based on a Member's monthly "Compensation" for
the highest 36 consecutive months out of the final 120 months. "Compensation"
covered by the Plan includes basic salary, overtime pay, cash bonuses, amounts
contributed through a salary reduction arrangement to a qualified plan which
meets the requirements of Section 401(k) of the Internal Revenue Code or to a
cafeteria plan which meets the requirements of Section 125 of the Internal
Revenue Code. "Compensation" covered by the plan does not include commissions,
income from the exercise of stock options or income from shadow stock, other
special pay or allowances, severance pay, payments in the nature of royalties,
and the cost to the Company of any public or private employee benefit plan.

         As of December 31, 2001, the following officers had completed the
number of years of service indicated opposite their names: Jeffrey L. Zelms, 33
years; Marvin K. Kaiser, 8 years; Richard L. Amistadi, 33 years; Kenneth R.
Buckley, 24 years. Covered compensation under the Plan for the year ended
October 31, 2001 did not differ by more than 10% from the compensation disclosed
in the Summary Compensation Table.


EMPLOYMENT AGREEMENTS

         The named executive officers are parties to employment agreements with
the Company which expire October 31, 2002, except for Mr. Buckley's, which
expires December 31, 2002. The agreements are automatically renewable for
additional one-year terms, unless either party gives written notice at least
three months of the respective renewal dates. Pursuant to the terms of these
agreements compensation is composed of: 1) a base annual salary, 2) certain
year-end bonuses and 3) such additional amounts, if any, as the sole Director
may determine from time to time in his discretion.

         The agreements require that, during the term of their employment, the
officers shall not directly or indirectly, engage in any aspect of the business
of lead mining, milling, recycling or sale within the continental United States
as an officer, director, partner, proprietor, investor, associate, employee or
consultant except with the Company. In addition, each of the above executive
officers has agreed to maintain the confidentiality of information obtained
during employment with the Company.


                                      102
<Page>

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         The following table sets forth certain information as of the date
hereof with respect to beneficial ownership of the Company's common stock by
each beneficial owner of 5% or more of the common stock, each director and each
named executive officer of the Company during the last fiscal year, and by all
directors and executive officers of the Company as a group. Except as otherwise
noted, the persons named in the table below have sole voting and investment
power with respect to all shares or interests, as applicable, shown as
beneficially owned by them.

<Table>
<Caption>
                                                                                          NUMBER OF
NAME                                                                                        SHARES    PERCENT
----                                                                                        ------    -------
<S>                                                                                         <C>        <C>
The Renco Group, Inc.(a)(b)............................................................     1,000      100.0%
DR Acquisition Corp.(a)................................................................     1,000      100.0
Ira Leon Rennert(a)(c).................................................................     1,000      100.0
Jeffrey L. Zelms.......................................................................        --         --
Marvin K. Kaiser.......................................................................        --         --
Richard L. Amistadi....................................................................        --         --
Kenneth R. Buckley.....................................................................        --         --
All directors and executive officers of the Company as a group (7 persons).............     1,000      100.0
</Table>

-----------

(a)      The address of this beneficial owner is c/o The Renco Group, Inc., 30
         Rockefeller Plaza, Suite 4225, New York, New York 10112.

(b)      Renco is deemed to beneficially own the shares owned by DRA due to
         Renco's ownership of all of the outstanding capital stock of DR
         Acquisition Corp.

(c)      Mr. Rennert is deemed to beneficially own the interests and shares
         owned by Renco due to the ownership by trusts established by him for
         himself and members of his family of all of the outstanding common
         stock of Renco.

         By virtue of Renco's indirect ownership of all of the outstanding
common stock of the Company, and Mr. Rennert's ownership of the stock of Renco,
Mr. Rennert is in position to control actions that require the consent of a
majority of the holders of equity interests in the Company and its subsidiaries.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Under a management consultant agreement, dated as of April 7, 1994, as
amended (Management Consultant Agreement), between Renco and the Company, the
Company pays an annual fee of $2.4 million to Renco. The Management Consultant
Agreement provides that the Company shall not make any payment thereunder which
would violate any of its agreements with respect to any of its outstanding
indebtedness. The Management Consultant Agreement extends to October 31, 2003
and thereafter shall continue for additional terms of three years each unless
sooner terminated by either party by giving six months prior written notice.
Management believes that the agreement will continue beyond October 31, 2003. In
the year ended October 31, 2001, the Company recorded expense of $2.4 million
pursuant to the management consultant agreement and paid $0.8 million to Renco..
The Company believes that the cost of obtaining the type and quality of services
rendered by Renco under the Management Consultant Agreement was, and continues
to be, no less favorable than that at which the Company could obtain such
services from unaffiliated entities.

         To obtain the advantages of volume, Renco purchases certain insurance
coverages for its subsidiaries, including the Company, and the cost of such
insurance, without markup, is reimbursed by the covered subsidiaries. Currently,
the major areas of insurance coverage obtained under the Renco programs for the
Company's U.S. operations are property, business interruption and fidelity and
for its Peruvian operations foreign general liability and fidelity. The premiums
for property, business interruption, fidelity and foreign general liability (as
applicable) are allocated by Renco to its covered subsidiaries, substantially as
indicated in the underlying policies. Renco also purchases and administers
certain insurance policies exclusively for the Company's U.S. operations,
including fiduciary, general and product liability, workers' compensation,
political risk, automobile liability, and casualty umbrella, and for its
Peruvian operations, including property, business interruption, general and
product liability, automobile liability, hospital liability and casualty
umbrella. The cost of such insurance, without markup, is reimbursed by the
Company as incurred. The total insurance cost


                                      103
<Page>

reimbursed under the Renco insurance programs in fiscal 2001 was approximately
$5.3 million, of which Doe Run financed $.9 million directly with insurance
premium finance companies.

         Pursuant to a tax sharing agreement between the Company and Renco, the
Company pays to Renco an amount equal to the amount the Company would have been
required to pay for taxes on a stand-alone basis to the Internal Revenue Service
and the applicable state taxing authority, as the case may be, except that the
Company will not have the benefit of any of its tax loss carryforwards unless
such tax losses were a result of timing differences between the Company's
accounting for tax and financial reporting purposes. This agreement also
provides that transactions between the Company and Renco and its other
subsidiaries are accounted for on a cash basis and not on an accrual basis.

         Effective with the beginning of fiscal 1999, Renco, formerly a C
corporation, elected to be treated as an S corporation pursuant to a change in
the Federal tax laws allowing corporations with subsidiaries to elect such
Subchapter S status. In connection with that election, Renco is permitted to
designate its subsidiaries as qualified S corporation subsidiaries, and the
Company has been so designated. As a result, the Company's taxable income will
be included in Renco's shareholders' income tax returns. Generally, no provision
for federal income taxes will be included in the Company's statements of income
for periods beginning after October 31, 1998. The Company will continue to
provide for foreign, state and local income taxes for those taxing jurisdictions
that do not recognize qualified S corporation subsidiary status. However, under
the "build-in gains" provisions of the tax law, federal and state taxes may
become payable and will be charged to the Company's statement of income. Such
taxes are measured by the excess of the fair market value of assets over their
tax bases on the effective date of the S corporation election if the appreciated
assets are disposed of within the ten-year post-conversion period. It is not
management's present intent to trigger any taxes under the built-in gains
provisions of the tax laws. Deferred tax assets of $8.0 million and deferred tax
liabilities of $1.8 million were reflected as a charge and credit to income,
respectively, in the first quarter of the Company's consolidated statement of
income in fiscal 1999.

         The Company may from time to time in the future sell zinc and other
alloys to WCI Steel, Inc., an indirect subsidiary of Renco. The Company believes
that such sales are on an arm's length basis at a price no less favorable than
that at which the Company could sell to unaffiliated entities.


                                      104

<Page>

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

     A.  Documents filed as part of this Form 10-K:

         1.  FINANCIAL STATEMENTS (included in Part II, Item 8):

<Table>
<Caption>
                                                                                                         Page #
                                                                                                         ------
<S>                                                                                                      <C>
             a) The Doe Run Resources Corporation
                 Independent Auditors' Report                                                               31
                 Consolidated Balance Sheets - October 31, 2001 and 2000                                    32
                 Consolidated  Statements of  Operations - Years ended October 31, 2001,  2000
                    and 1999                                                                                33
                 Consolidated  Statements of Comprehensive  Income and Shareholder's  Equity -
                    Years ended October 31, 2001, 2000 and 1999                                             34
                 Consolidated  Statements of Cash Flows - Years ended  October 31, 2001,  2000
                    and 1999                                                                                35
                 Notes to Consolidated Financial Statements                                              36-72

             b) Doe Run Peru S.R.L
                 Independent Auditors' Report                                                               73
                 Balance Sheets - October 31, 2001 and 2000                                                 74
                 Combined  Statements of  Operations - Years ended October 31, 2001,  2000 and
                    1999                                                                                    75
                 Combined Statements of Changes in Shareholders'  Equity - Years ended October
                    31, 2001, 2000 and 1999                                                                 76
                 Combined  Statements of Cash Flows - Years ended  October 31, 2001,  2000 and
                    1999                                                                                    77
                 Notes to Combined Financial Statements                                                  78-98



         2.  FINANCIAL STATEMENT SCHEDULES  (included in Part IV):

             Schedule II     Valuation and Qualifying Accounts                                             106


             Schedules not listed above have been omitted because the
             information required to be set forth therein is not applicable or
             is included in the consolidated financial statements or notes
             thereto.

         3.  EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-K.

              The information called for by this paragraph is contained in the
              Exhibit Index of this report which is incorporated herein by
              reference.


</Table>


                                      105
<Page>

                                                                     SCHEDULE II

                        THE DOE RUN RESOURCES CORPORATION

                        Valuation and Qualifying Accounts

                   Years ended October 31, 2001, 2000 and 1999

                              (dollars in thousands)
<Table>
<Caption>
                                                                              Additions     Deductions -
                                                                Balance at   charged to      write-offs
                                                                 beginning    costs and        against       Balance at
                                                                  of year     expenses        allowance      end of year
                                                                -----------  -----------    -------------    -----------
<S>                                                              <C>            <C>             <C>             <C>
Year ended October 31, 2001:
  Applied against asset accounts:
       Allowance for doubtful accounts                           $     143        541              -              684
       Allowance for inventory obsolescence                      $   4,472      1,724            712            5,484
Year ended October 31, 2000:
  Applied against asset accounts:
       Allowance for doubtful accounts                           $     675         16            548              143
       Allowance for inventory obsolescence                      $   4,300        437            265            4,472
Year ended October 31, 1999:
  Applied against asset accounts:
       Allowance for doubtful accounts                           $     876        103            304              675
       Allowance for inventory obsolescence                      $   4,559         66            325            4,300

</Table>


                                      106
<Page>

(b) REPORTS ON FORM 8-K.

         None

                               S I G N A T U R E S


         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                                           THE DOE RUN RESOURCES CORPORATION
                                           (Registrant)


                                      By:         /s/ Jeffrey L. Zelms
                                           -------------------------------------
                                                    Jeffrey L. Zelms
                                                Vice Chairman, President and
                                                  Chief Executive Officer

                                                      May 16, 2002
                                           -------------------------------------
                                                         (Date)



         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

<Table>
<S>                                                           <C>                                    <C>
     Ira Leon Rennert
     Chairman of the Board and Director                             /s/ Ira Leon Rennert              May 16, 2002
                                                              -----------------------------------    --------------------
                                                                         Signature                         Date

     Jeffrey L. Zelms
     Vice Chairman, President and Chief Executive Officer
     (principal executive officer)                                  /s/ Jeffrey L. Zelms              May 16, 2002
                                                              -----------------------------------    --------------------
                                                                         Signature                         Date


     Marvin K. Kaiser
     Executive Vice President and Chief Financial and
     Administrative Officer
     (principal financial and accounting officer)                   /s/ Marvin K. Kaiser              May 16, 2002
                                                              -----------------------------------    --------------------
                                                                         Signature                         Date
</Table>


     SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO
        SECTION 15(D) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED
                  SECURITIES PURSUANT TO SECTION 12 OF THE ACT.

         No annual report to security holders covering the registrant's last
fiscal year and no proxy statement, form of proxy or other proxy soliciting
material with respect to any annual or other meeting of security holders has
been or will be sent to security holders.


                                      107
<Page>

                                  EXHIBIT INDEX

<Table>
<Caption>
 EXHIBIT
   NO.                               DESCRIPTION
   ---                               -----------
<S>            <C>
       3.1     Certificate of Incorporation of Doe Run.(1)
       3.2     Amended and Restated By-laws of Doe Run.(1)
       3.3     Certificate of Incorporation of FPI.(1)
       3.4     Bylaws of FPI.(1)
       3.5     Certificate of Incorporation of Doe Run Cayman.(1)
       3.6     Memorandum and Articles of Association of Doe Run Cayman.(1)
       3.7     Constitucion de Sociedad Comercial de Responsibilidad Limitada de
               Doe Run Mining (with English translation).(1)
       3.8     Constitucion de Sociedad Comercial de Responsibilidad Limitada de
               Doe Run Peru (with English translation).(1)
     3.9.1     Constitucion Simultanea de Sociedad Anonima Cerrada de Doe Run
               Air (with English translation).(3)
     3.9.2     Constitucion Simultanea de Sociedad Anonima Cerrada de Doe Run
               Development (with English translation).(3)
     3.9.3     Modificacion Total de Estatuto Social, Designacion de membros de
               Directorio, Nombramiento de Gerente General, Nombriento de
               Apoderados Especiales y Otorgamiento de Poderes Especiales de
               Cobriza (with English translation).(3)
      3.10     Certificate of Formation of DRLH.(3)
      3.11     Limited Liability Company Agreement of DRLH.(3)
     4.1.1     Indenture, dated as of March 12, 1998, by and among Doe Run, as
               issuer, FPI, Doe Run Cayman, Doe Run Mining and Doe Run Peru, as
               guarantors, and State Street Bank and Trust Company, as trustee,
               relating to the 11 1/4% Senior Notes due 2005, Series A, Floating
               Interest Rate Senior Notes due 2003, Series A, 11 1/4% Senior
               Notes due 2005, Series B and Floating Interest Rate Senior Notes
               due 2003, Series B and the Guarantees thereof (containing, as
               exhibits, specimens of the Notes and the Guarantees).(1)
     4.1.2     First Supplemental Indenture, dated as of September 1, 1998, by
               and among Doe Run, as issuer, FPI, Doe Run Cayman, Doe Run
               Mining, Doe Run Peru, Doe Run Air and Doe Run Development, as
               guarantors, and State Street Bank and Trust Company, as trustee,
               supplementing the Indenture, dated as of March 12, 1998.(2)
     4.1.3     Second Supplemental Indenture, dated as of September 16, 1998, by
               and among Doe Run, as issuer, FPI, Doe Run Cayman, Doe Run
               Mining, Doe Run Peru, Doe Run Air, Doe Run Development and
               Cobriza, as guarantors, and State Street Bank and Trust Company,
               as trustee, supplementing the Indenture, dated as of March 12, 1998.(3)
     4.1.4     Third Supplemental Indenture, dated as of January 13, 1999, by
               and among Doe Run, as issuer, FPI, Doe Run Cayman, Doe Run
               Mining, Doe Run Peru, Doe Run Air, Doe Run Development, Cobriza
               and DR Land Holdings, LLC ("DRLH"), as guarantors, and State
               Street Bank and Trust Company, as trustee, supplementing the
               Indenture, dated as of March 12, 1998.(3)
     4.2.1     Indenture, dated as of September 1, 1998, by and among Doe Run,
               as issuer, FPI, Doe Run Cayman, Doe Run Mining, Doe Run Peru, Doe
               Run Air and Doe Run Development, as guarantors, and State Street
               Bank and Trust Company, as trustee, relating to the 11 1/4% Senior
               Secured Notes due 2005, Series A and 11 1/4% Senior Secured Notes
               due 2005, Series B and the Guarantees thereof (containing, as
               exhibits, specimens of the Notes and the Guarantees).(2)
     4.2.2     First Supplemental Indenture, dated as of September 16, 1998, by
               and among Doe Run, as issuer, FPI, Doe Run Cayman, Doe Run
               Mining, Doe Run Peru, Doe Run Air, Doe Run Development and
               Cobriza, as guarantors, and State Street Bank and Trust Company,
               as trustee, supplementing the Indenture, dated as of September 1, 1998.(3)
     4.2.3     Second Supplemental Indenture, dated as of January 13, 1999, by
               and among Doe Run, as issuer, FPI, Doe Run Cayman, Doe Run
               Mining, Doe Run Peru, Doe Run Air, Doe Run Development, Cobriza
               and DRLH, as guarantors, and State Street Bank and Trust Company,
               as trustee, supplementing the Indenture, dated as of September 1, 1998. (3)
     4.2.4     Pledge Agreement, dated as of January 15, 1999, by Doe Run to
               State Street Bank and Trust Company.(3)
       4.4     Registration Rights Agreement, dated as of September 1, 1998, by
               and among Doe Run, FPI, Doe Run Cayman, Doe Run Mining, Doe Run
               Peru, Doe Run Air, Doe Run Development and Jefferies & Company,
               Inc., relating to the 11 1/4% Senior Secured Notes due 2005.(2)
    10.1.1     Employment Agreement, dated as of April 7, 1994, between The Doe
               Run Resources Corporation and Jeffrey

                                      109
<Page>

               L. Zelms.(1)
    10.1.2     Employment Agreement, dated as of April 7, 1994, between The Doe
               Run Resources Corporation and Marvin K. Kaiser.(1)
    10.1.3     Employment Agreement, dated as of April 7, 1994, between The Doe
               Run Resources Corporation and Richard L. Amistadi.(1)
    10.1.4     Employment Agreement, dated as of April 7, 1994, between The Doe
               Run Resources Corporation and John E. FitzSimmons.(6)
    10.1.5     Employment Agreement, dated as of April 7, 1994, as amended,
               between The Doe Run Resources Corporation and Kenneth R. Buckley.(1)
    10.2.1     Net Worth Appreciation Agreement, dated as of April 7, 1994, as
               amended, between The Doe Run Resources Corporation and Jeffrey L. Zelms.(1)
    10.2.2     Net Worth Appreciation Agreement, dated as of April 7, 1994, as
               amended, between The Doe Run Resources Corporation and Marvin K. Kaiser.(1)
    10.2.3     Net Worth Appreciation Agreement, dated as of April 7, 1994, as
               amended, between The Doe Run Resources Corporation and Richard L. Amistadi.(1)
    10.2.4     Net Worth Appreciation Agreement, dated as of April 7, 1994, as
               amended, between The Doe Run Resources Corporation and John E. FitzSimmons.(6)
    10.2.5     Net Worth Appreciation Agreement, dated as of January 15, 1999,
               as amended, between The Doe Run Resources Corporation and Kenneth R. Buckley.(6)
    10.2.6     Form of second amendment to net worth appreciation agreements
               dated January 15, 1999 (Amendments to Exhibits 10.1.1-10.1.4).(6)
      10.3     The Doe Run Resources Corporation Supplemental Employee Retirement Plan.(1)
      10.4     The Doe Run Company Executive Tax Services Plan.(1)
    10.5.1     Loan and Security Agreement, dated March 12, 1998, by and among
               Doe Run, FPI and Congress Financial Corporation.(1)
    10.5.2     Amendment No. 1 to Loan and Security Agreement, dated September 1,
               1998, among Doe Run, FPI and Congress Financial Corporation.(2)
    10.5.3     Amendment No. 2 to Loan and Security Agreement, dated January 13,
               1999, by and among Doe Run, FPI and Congress Financial Corporation. (3)
    10.5.4     Guarantee, dated January 13, 1999, between DRLH and Congress
               Financial Corporation.(3)
    10.5.5     Amendment No. 3 to Loan and Security Agreement dated February 1,
               1999 by and among the Doe Run Resources Corporation, Fabricated
               Products, Inc. and Congress Financial Corporation.(4) Ex. 10.1
    10.5.6     Amendment No. 4 to Loan and Security Agreement dated June 11,
               1999 by and among the Doe Run Resources Corporation, Fabricated
               Products, Inc. and Congress Financial Corporation.(5) Ex 10.3
    10.5.7     Amendment No. 5 to Loan and Security Agreement dated January 26,
               2001 by and among the Doe Run Resources Corporation, Fabricated
               Products, Inc. and Congress Financial Corporation.(8)
    10.5.8     Amendment No. 6 to Loan and Security Agreement dated January 26,
               2002 by and among the Doe Run Resources Corporation, Fabricated
               Products, Inc. and Congress Financial Corporation.(9)
    10.5.9     Cash Collateral Pledge Agreement dated January 26, 2002 by and
               between the The Renco Group and Congress Financial Corporation.(9)
   10.5.10     Limited Guarantee dated January 26, 2002 by and between The Renco
               Group and Congress Financial Corporation.(9)
      10.6     Contrato de Transferencia de Acciones, Aumento del Capital Social
               y Suscripcion de Acciones de La Empresa Metalurgica La Oroya S.A.
               (Contract of Stock Transfer, Capital Increase and Stock
               Subscription) (with English translation).(1)
      10.7     Programa de Adecuacion y Manejo Ambiental (Environmental Remedy
               and Management Program) (with English translation).(1)
    10.8.1     Convenio de Estabilidad Juridica Entre el Estado y La Empresa
               Metalurgica La Oroya S.A. (Legal Stability Agreement between the
               State and Empresa Metalurgica La Oroya S.A.) (with English
               translation).(1)
    10.8.2     Convenio de Estabilidad Juridica con Doe Run Mining S.R. Ltda.
               (Legal Stability Agreement with Doe Run MiningCommission for
               Foreign Investments and Technologies) (with English translation).(1)
    10.8.3     Convenio de Estabilidad Juridica con Doe Run Mining S.R. Ltda.
               (Legal Stability Agreement with Doe Run MiningMinistry of Energy
               and Mines) (with English translation).(1)
    10.8.4     Convenio de Estabilidad Juridica con Doe Run Peru S.R. Ltda.
               (Legal Stability Agreement with Doe Run PeruMinister of Energy
               and Mines) (with English translation).(1)
    10.8.5     Convenio de Estabilidad Juridica con Doe Run


                                      110
<Page>

               Peru S.R. Ltda. (Legal Stability Agreement with Doe Run PeruVice
               Minister of Mines) (with English translation).(1)
    10.8.6     Convenio de Estabilidad Juridica con Doe Run Cayman Ltd. (Legal
               Stability Agreement with Doe Run CaymanCommission for Foreign
               Investments and Technologies) (with English translation).(1)
    10.8.7     Remite Contrato de Estabilidad Administrativa Ambiental
               (Environmental Stability Agreement) (with English translation).(1)
    10.9.1     Contrato de Linea de Credito en Moneda Extranjero (Contract for a
               Line of Credit in Foreign Currency), dated June 11, 1998, between
               Banco de Credito del Peru and Doe Run Peru (with English translation).(1)
    10.9.2     Modificacion al Contrato de Linea de Credito en Moneda Extranjera
               y al Contrato de Afectacion en Garantia de Pagos y/o Cobranzas y
               de Cuentas Cobranza (amendment to the Contract for Line of Credit
               in Foreign Currency and Collection Account Agreement, dated as of
               October 6, 1998, between Banco de Credito del Peru and Doe Run
               Peru S.R.L. (English translation to be filed by amendment).(3)
    10.9.3     Amendments to Contract for a Line of Credit in Foreign Currency,
               dated June 11, 1998 (with English translation).(7) Ex. 10.1.1
     10.10     Contrato de Afectacion en Garantia de Pagos y/o Cobranzas y de
               Cuentas Cobranza (Collection Account Agreement), dated June 11,
               1998, between Banco de Credito del Peru and Doe Run Peru (with
               English translation).(1)
     10.11     Contrato de Prenda de Minerales (Ore Collateral Agreement), dated
               June 11, 1998, between Banco de Credito del Peru and Doe Run Peru
               (with English translation).(1)
     10.12     Security Agreement, dated as of September 1, 1998, by Doe Run in
               favor of State Street Bank and Trust Company, as trustee and
               collateral agent.(2)
     10.13     Intercreditor Agreement, dated as of September 1, 1998, between
               State Street Bank and Trust Company, as note trustee, and
               Congress Financial Corporation, as lender.(2)
     10.14     Management Consulting Agreement, dated as of April 17, 1994, as
               amended, between The Renco Group, Inc. and The Doe Run Resources
               Corporation.(3)
     10.15     Financial leasing dated January 20, 1999 entered into by and
               between Credito Leasing S.A. and Banco de Credito del Peru as
               party of the first part and Doe Run Peru S.R.L. as party of the
               second part (English).(5) Ex. 10.1
     10.16     Unconditional Guarantee dated June 11,1999 by and among the Doe
               Run Resources Corporation, Boeing Capital Corporation and First
               Security Bank, N.A.(5) Ex 10.2.1
     10.17     Promissory Note dated July 6, 1999 by and among Boeing Capital
               Corporation and First Security Bank, N.A.(5) Ex 10.2.2
     10.18     Loan and Security Agreement dated June 11, 1999 by and among
               Boeing Capital Corporation and First Security Bank, N.A.(5) Ex 10.2.3
        21     List of Subsidiaries of Registrant.(3)
</Table>
----------------------------
(1)    Incorporated by reference to the same numbered exhibit filed with the
       Registration Statement on Form S-4, as amended, (File No. 333-52285)
       originally filed May 11, 1998

(2)    Incorporated by reference to Form 8-K (File No. 333-52285) filed
       September 16, 1998.

(3)    Incorporated by reference to the same numbered exhibit filed with the
       Registration Statement on Form S-4, as amended, (File No. 333-66291),
       originally filed October 29, 1998.

(4)    Incorporated by reference to the exhibit number in Form 10Q filed
       June 11, 1999.

(5)    Incorporated by reference to the exhibit number in Form 10Q filed
       September 13, 1999.

(6)    Incorporated by reference to the exhibit number in Form 10K filed
       January 26, 2000.

(7)    Incorporated by reference to the exhibit number in Form 10Q filed June 8,
       2000.

(8)    Incorporated by reference to the exhibit number in Form 10K filed
       January 29, 2001.

(9)    Filed with this Form 10K.

                                      111