nominal location

INVESTMENT OPPORTUNITIES IN THE PHILIPPINE MINING SECTOR

By: BENJAMIN PHILIP G. ROMUALDEZPresident, ASEAN Federation of Mining Association (AFMA), Chamber of Mines of the Philippines and President and CEO, Benguet Corporation

NEW PARADIGM NEW PARADIGM ON MININGON MINING

• Tolerance to Promotion

• Strictly adhere to Sustainable Development (economic growth, social equity and environmental protection)

EXECUTIVE ORDER NO. 270National Policy Agenda on

Revitalizing Mining in the Philippines

Issued on 16 January 2004, with amendments on 20 April 2004

With 12 guiding principles for responsible mining towards sustainable development

Calls for the formulation of Minerals Action Plan

MINERALS ACTION PLAN

Formulated by DENR in consultation with other government agencies & stakeholders

Contains 57 strategies & 126 activities to address the problems of mining

Approved by the President thru Memorandum Circular No. 67 dated 13 September 2004

RECENT DEVELOPMENTSSupreme Court upheld constitutionality of Mining Act of 1995 thru Dec. 1, 2004 Resolution

“Decided for the greater good of the greatest number of people”

Affirmed President/Congress prerogative to enter into Financial or Technical Assistance Agreement (FTAA) with foreign corporations to explore, develop and utilize mineral resources

RECENT DEVELOPMENTSGovernment and Chamber of Mines have identified mining as a priority program to attract foreign investments

Mining roadshow to China on January 17-19, 2005 generates US $1.6 Billion in investment commitments

International Mining Investment Conference held on Feb. 2-4, 2005 , generates 29 MOUs.

RECENT DEVELOPMENTS

Indaba South Africa PDAC, Toronto, CanadaEITI , London , UKAsia Mining Congress, SingaporeAfrican Asean Business Conference, Jakarta, IndonesiaBoao Forum , Hainan, ChinaMyanmar

PLANNED ACTIVITIES• Roadshows

Seoul , KoreaTokyo, JapanParis , FranceLondon , UKKuching , Malaysia Sydney , Australia

• Asean Federation of Mining Association Conference (AFMA)

RECENT DEVELOPMENTSReduced processing time for mining permit applications

57% reduction to Exploration Permits

54% reduction to Mineral Production Sharing Agreements

27% reduction in NCIP Certification

Approval of Environmental Compliance Certificate (ECC) within 120 days

RECENT DEVELOPMENTS

Issued new mining permits/contracts (January 2004 to February 2005)

20 Mineral Production Sharing Agreements

3 Mineral Processing Permits

1 Special Mines Permit

2 Exploration Permit renewals

5 new Exploration Permits

RECENT DEVELOPMENTSOpened up new areas for investments

Cancelled 84 mining permits and contracts covering 100,000 hectares to give way to serious investors Ongoing cleansing of mining applications including FTAAs covering 1.8 million hectaresSignificantly reduced pending cases in the Mines Adjudication Board and the Panel of Arbitrators

RECENT DEVELOPMENTSIdentified legislative agenda in support of responsible mining

Direct remittance of LGU shares on excise taxesSupported the proposed National Land Use Act to provide guidelines for the use and allocation of lands for mining purposesIncentives for pollution control devices

RECENT DEVELOPMENTSAddressed stakeholder concerns on mining

Conducted Stakeholders Forum on Mining on February 3, 2005 at Malacañang with representatives from industry, civil society, IPs, LGUs and church groupsDENR directed Marcopper to undertake USGS recommendations to rehabilitate affected areas in Marinduque

REPUBLIC ACT NO. 7942, THE PHILIPPINE MINING ACTREPUBLIC ACT NO. 7942, THE PHILIPPINE MINING ACT

MAJOR TYPES OF MINING TENEMENTS:

EXPLORATION PERMIT (EP) – 2 years/renewable up to 8 yearsGrants exclusive right to explore and eventually enter into Mineral Agreement or Financial or Technical Assistance Agreement

MINERAL AGREEMENT (MA) – 25 years/renewable for 25 yearsThree (3) modes: Mineral Production Sharing; Co-Production and Joint VentureGrants exclusive rights to explore, develop and utilize minerals

FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT (FTAA) –25 years/renewable for 25 years

Involves large-scale mining operations with minimum committed investment of $50 Million for infrastructure and developmentNeeds approval by the President of the Republic of the Philippines

MINERAL PROCESSING PERMIT (MPP) – 5 years/renewable up to 25 years

Issued for mineral processing operations

100% Foreign participation is allowed under EP, FTAA and MPP except for MA which requires at least 60% Filipino ownership

Mining Incentives under the Omnibus Investment Code of 1987

• Fiscal incentives: tax exemptions, tax credit on raw materials and supplies, additional deductions from taxable income

• Non-fiscal incentives: employment of foreign nationals, simplified customs importation procedures, importation of consigned equipment for a period of 10 years

INCENTIVES UNDER THE INCENTIVES UNDER THE NEW MINING ACT OF 1995NEW MINING ACT OF 1995

ENTITLEMENT TO-

Tax Holiday during recovery of pre-operating expenses for a maximum of 5 years from commercial production (FTAA)

Income Tax carry forward of losses

Income Tax accelerated depreciation of fixed assets

Exemption from payment of real property taxes on pollution control devices

INCENTIVES UNDER THE INCENTIVES UNDER THE NEW MINING ACT OF 1995NEW MINING ACT OF 1995 contcont’’d.d.

Fiscal and Non-Fiscal incentives of the Omnibus Investment Code

Investment GuaranteesRepatriation of CapitalFreedom from ExpropriationRemittance from earnings and interest on foreign loansFreedom from requisition of propertiesConfidentiality of Information

MINING RIGHTS GRANTED

There are currently 471,510.75 hectares of There are currently 471,510.75 hectares of land covered by approved mining land covered by approved mining tenements, namely:tenements, namely:

209 Mineral Production Sharing Agreements (MPSAs)13 Exploration Permits (EPs)2 Financial or Technical Assistance

Agreements (FTAAs)310 Mining Lease Contracts/Patents

OPERATING MINESOPERATING MINES2 Big mines2 Big mines

Victoria Gold MineVictoria Gold MinePadcal Copper MinePadcal Copper Mine

4 Medium4 Medium--scale nickel minesscale nickel minesRio Tuba Nickel MineRio Tuba Nickel MineCagdianao Nickel MineCagdianao Nickel Mine

HMC Sigbanog ProjectHMC Sigbanog ProjectTaganito Nickel MineTaganito Nickel Mine

3 Medium3 Medium--scale chromite minesscale chromite minesBenguet Corp. Masinloc ProjectCrau Minerals Omasdang ProjectHeritage Res. Homonhon Project

5 medium5 medium--scale gold minesscale gold minesTVI Canatuan ProjectBenguet Acupan SSM OperationsNRDC Diwalwal Direct State

Development ProjectPhilsaga Mining Corp. Banahaw Gold

ProjectJohson Gold Mining Corp.

15 Cement plants and quarries15 Cement plants and quarries

ECONOMIC CONTRIBUTIONS ECONOMIC CONTRIBUTIONS OF THE MINERALS SECTOR (FY 2003)OF THE MINERALS SECTOR (FY 2003)

P 2.1 Billion (CY 2002)Taxes and Fees Estimate

For each mining job, 4 to 10 allied jobs created upstream and downstream

Multiplier Effect

P 4 to P5 BillionWages and Benefits104,000EmploymentP 367 Million (CY2002)Paid-up Investments

US$ 638 Million or 1.8% of total Phil. Exports

Exports

P 18.0 Billion or 1.6% of Phil. GDPor 1.52% of the Phil. GNP (CY 2003)

Value Added Contribution

P 41.5 Billion or 19% increase from CY 2002

Production Value

MINERAL RESOURCES POTENTIALMINERAL RESOURCES POTENTIAL(ON(ON--SHORE)SHORE)

Mineral Land Distribution(As % of Total Philippine Land Area)

30% or 9 Million Hectares

1.4% Covered w/permits

High-Potential

Low-Medium Potential70%

9 million hectares are high potential sites for copper, gold, nickel, chromite, etc.Only 1.4% covered by mining permitsHas the potential to be top 10 largest mining power in the world

OFFSHORE MINERAL RESOURCESOFFSHORE MINERAL RESOURCES

Philippines offshore area including EEZ 2.2 million Km2

• Placer minerals including gold, chromite, magnetite, silica

Potential offshore mineral resources:

• Aggregate resources (sand & gravel)

• Manganese nodules/ encrustrations with associated copper, gold, zinc, cobalt

• Polymetallic sulphide deposits containing gold, copper, cobalt, etc.

Manganese

Gold

Gold

Magnetite

Chromite

Chromite

Chromite

Chromite

Magnetite

ECONOMIC POTENTIAL

23 potential medium- to large-scale metallic mining projects:

• US $ 90.8 B - Gross value of mineral deposits• US $ 6.5 B - Foreign direct investments• US $ 3.4 B - Annual sales/foreign exchange• US $ 61.4 M - Annual excise tax on minerals• US $ 432 M - Annual corporate income tax• 200,000 - Additional direct & indirect

employment

PHILIPPINE MINING INVESTMENT

OPPORTUNITIES

WITH PROJECT STATUS

I. For Development and Expansion Projects


1. Coral Bay Mining Corp.Palawan Nickel ProjectImmediate Plan: To Start commercial operation in December 2004.Producing 10,000MT/yr of Nickel and 750 MT/yr of Cobalt Production, Reserves @ 11.5 Million WMT @ 2.3% Nickel with Gross Value of US $ 2.3 Billion , Estimated Investment Cost @ US $ 180 Million , Potential Gross Sales of US $ 53 Million per year and Mine life @ 20 years.

Coral Bay Mining Corp. View of High Pressure Acid Leach (HPAL) Processing Plant

Coral Bay Mining Corp. Aerial View of Palawan Nickel Project, Coral Bay & Rio Tuba, located at Bataraza, Palawan

Present Status

Started operation on April 13, 2005; Treated 38,353 MT of Nickel ore, producing 341 and 28 DMT of Nickel and Cobalt, respectively for April 2005

STATUS: OPERATING

PalawanPalawan HPP Project HPP Project –– ((MPP)MPP)Coral Bay Nickel CorporationCoral Bay Nickel CorporationBatarazaBataraza, , PalawanPalawan


2. Lafayette NL of AustraliaRapu-Rapu Polymetallic ProjectImmediate Plan: To commence operation by 2005 , Producing 10,000MT/yr of Copper; 50,000 oz/yr of Gold; 600,000 oz/yr of Silver and 14,000 MT/yr of Zinc , Reserves @ 5.9 Million MT @ 1.2%Cu ; 2.5 g/t Au , 28 g/t Ag & 2.1% Zinc , Estimated Investment Cost @ US $ 42 Million , Potential Gross Sales of US $ 41 Million and Mine life @ 7 years.

Lafayette NL of Australia Rapu-Rapu Polymetallic ProjectConceptual Design of Polymetallic Mill Plant

Lafayette NL of Australia Rapu-Rapu Polymetallic ProjectOn going minesite construction in preparation for Mine Development

Present Status

PLAN/S

To complete construction of Base Meta(Copper, Zinc) plant by August 2005.

Started mining operations 1st Q 2005;Gold-Silver Plant construction ongoing near completion. First gold-silver production scheduled this month.Mineral Processing Permit (MPP) issued by DENR May 2005.

STATUS: OPERATING

RapuRapu--RapuRapu PolymetallicPolymetallic Project Project ––MPSA & MPPMPSA & MPP

Lafayette Philippines Inc.Lafayette Philippines Inc.RapuRapu--RapuRapu, , AlbayAlbay


3. TVI Pacific of CanadaCanatuan Gold ProjectImmediate Plan: To sustain the present operation of 180 TPD; 250 TPD by October, 2005; 850 TPD by 2006. Reserves are 964,743 MT @ 3.81 g/t Au, 142.6g/t Ag. With Gross Value of US $ 140 Million. Estimated Potential Investment @ US $ 7.4 Million, Potential Gross Sales @ US $ 10 Million per year and Mine Life @ 5 years.

Aerial view of Canatuan Gold Project (TVI of Canada) Siocon , Zamboanga del Norte

Conceptual Design of Open Pit for Canatuan Gold Project (TVI of Canada) Siocon , Zamboanga del Norte

P r e s e n t S t a t u s

PLAN/S

NEEDS/CONCERNS

• Submission of FS & EPEP for entire MPSA • Secure Business Permit from LGU• Continued opposition of IP/Religious groups• Encroachment of SSM groups

Expand production of Oxide orebody, & to develop Sulfide orebody to increase production capacity to 800 TPD in 2 years

Initially started operations in 2003 @ 80-120 TPD, & expanded capacity to 450 TPD as of Oct 2004

STATUS: OPERATING

CanatuanCanatuan Gold Project Gold Project -- MPSAMPSA

TVI Resource TVI Resource DevtDevt. . PhilsPhils., Inc.., Inc.SioconSiocon, , ZamboangaZamboanga del Nortedel Norte


4. Lepanto Consolidated Mining Co.Teresa Gold ProjectImmediate Plan: To commence commercial operation by 2005. Reserves is 7.3 Million MT @ 5.29 g/t Au & 0.19 g/t Ag with Gross Value of US $ 304 Million. Production rate @ 2,300-2,500 Tonnes / day. Potential Investment @ US $ 80 Million, Potential Gross Sales @ US $ 60 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

Final approval of Feasibility Study, EPEP, & 3-Yr Work Program

Continued exploration and development for additional ore reserves

Started production in April 2004. 2005 1st Q production: 49,340 MT of ore; 6,033 ounces of gold and 7,753 ounces of silver

STATUS: OPERATING

Teresa Gold Project Teresa Gold Project -- MPSAMPSALepantoLepanto Consolidated Mining CompanyConsolidated Mining CompanyMankayanMankayan, , BenguetBenguet


5. Philex Mines, Inc.Padcal Expansion ProjectImmediate Plan: To commence commercial operation by 2006. Reserves are 49.5 Million MT @ 0.29% Cu & 0.79 g/t Au with Gross Value of US $ 962 Million. Production rate @ 20,238 MT per day. Mine life at 6 to 7 years. Potential Investment @ US $ 15 Million , Potential Gross Sales @ US $ 50 Million per year and Mine Life @ 6 to 7 years.

Mill Plant - Philex Mines, Pacdal , Benguet

Mine Camp Philex Mines, Pacdal , Benguet

Present Status

PLAN/S

Targeted for commissioning 4th Q of 2005 and full commercial production by 2006

Construction and development of the 782-m level that would extend current mine life by 7 yearsOperating; 782-meter level scheduled for commissioning on 4th quarter of 2005

STATUS: OPERATING w EXPANSION PROJECT

PadcalPadcal Copper Expansion Project Copper Expansion Project -- MLCMLCPhilexPhilex Mining CorporationMining CorporationPadcalPadcal, Tuba, , Tuba, BenguetBenguet


6. Pacific Nickel,PhilippinesNonoc Iron Fines ProjectImmediate Plan: To continue shipment as market becomes available. Reserves @ 25 Million MT @ 46% Fe with Gross Value of US $ 225 Million. Potential Investment @ US $ 7 Million and Potential Gross Sales @ US $ 16 Million per year. Production rate at 4 Million per year. Mine Life at 6 to 7 years.

Present Status

PLAN/S

NEEDS/CONCERNS

• Company to complete documents for renewal of exploration period;• Settle loan arrears with government/PMO•Secure approval of FS & ECC

• Complete exploration work and feasibility study, & EIA• Finalize financial agreements with foreign partners

Technical due diligence by potential Chinese partners;

STATUS: EXPLORATION

NonocNonoc Nickel Project Nickel Project –– MPSA & MPPMPSA & MPPNonocNonoc Processing Corp./ Pacific Nickel PhilippinesProcessing Corp./ Pacific Nickel PhilippinesNonocNonoc Island, Island, SurigaoSurigao CityCity


7. Natural Resources Development CorpDiwalwal Direct State Utilization ProjectImmediate Plan: For Expansion below 600 meter level. Tinago Reserves is 312,010 MT @ 10.93 g/t Au; Balite Reserves is 2,259,590 MT @ 9.88 g/t Au with Gross Value of US $ 461 Million. Production rate @ 100 MT per day to expand to 750 MT/day. Potential Investment @ US $ 2 Million and Potential Gross Sales is US $ 20 Million per year.

Natural Resources Development CorpDiwalwal Direct State Utilization Project

Aerial View of the Diwalwal Area

Natural Resources Development CorpDiwalwal Direct State Utilization Project

Schematic Diagram of Diwalwal Gold Vein Deposit

800 METER LEVEL

600 METER LEVEL

BUENAS-TINAGO VEIN SYSTEM BALITE VEIN SYSTEM

JB Sunshine AditJB Sunshine Adit

JB 2000 Adit

JB 2000 Adit

JB Victory Adit

JB Victory Adit

JB Encroaching JB Encroaching TunnelTunnel

Helica AditHelica Adit

AustraliaAustralia--Helix AditHelix Adit

Blucor Bullex AditBlucor Bullex Adit

Proposed JointVenture Area

Present Status

PLAN/S

NEEDS/CONCERNS

• Resolution of the SC case re: Southeast Mindanao Gold Mining, Inc.• Secure project financing

Develop areas below the 600-m level for mining operations.

Exploration drilling conducted (1 DDH below 600 meter level); Developed a concrete plans of exploration drilling

STATUS: EXPLORATION STAGE

DiwalwalDiwalwal Direct State Development Direct State Development Project Project -- MOAMOANatural Resources Mining Development Corp.Natural Resources Mining Development Corp.MonkayoMonkayo, , CompostelaCompostela ValleyValley

II. Final Feasibility Study / Mine Plan Design


1. Philex Gold/Anglo-American UKBoyongan Copper Project

Immediate Plan: To commence commercial operation on 2010. Reserves @ 300 Million MT @ 0.60% Cu & 1.0 g/t Au with Gross Value of US $ 5.6 Billion. Production Rate @ 100,000 MT per day, Potential Investment @ US $ 1 Billion , Potential Gross Sales – US $ 250 Million per year and Mine Life @ 10 years.

Present Status

PLAN/S

NEEDS/CONCERNS

Project proponents looking for additional area to increase ore reserves and enhance project feasibility

To complete detailed exploration works and feasibility study

Exploration activities temporarily suspended

STATUS: EXPLORATION

BoyonganBoyongan Copper Project Copper Project –– MPSA & EPMPSA & EPSilanganSilangan Mindanao Mining Corporation (Anglo American Mindanao Mining Corporation (Anglo American and and PhilexPhilex Gold Joint Venture)Gold Joint Venture)TimamanaTimamana, , TubodTubod, , SurigaoSurigao del Nortedel Norte


2. Crew Development Corporation Mindoro Nickel Project

Immediate Plan: To conduct comprehensive information campaign and social preparation; to commence commercial operation by 2009. Reserves @ 120 Million MT @ 0.94 % Ni & 0.07 % Co with Gross Value of US $ 9.8 Billion. Potential Investment @ US $ 1000 Million and Potential Gross Sales – US $ 300 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Secure LGU endorsement• Reinstatement of MPSA

Complete exploration works and feasibility study

On-going efforts to secure LGU endorsements.

STATUS

MindoroMindoro Nickel Project Nickel Project --MPSAMPSAAglubangAglubang Mining Corp./Crew Development CorporationMining Corp./Crew Development CorporationVictoria, Victoria, MindoroMindoro OrientalOriental


3. Benguet Corp/NADECORKingking Copper Gold Project

Immediate Plan: Declaration of Mining Feasibility Study in 2005.Copper Porphyry/Open Pit Operation; Reserves @ 353 Million MT @ 0.385% Cu,0.439 g/t Au with Gross Value of US $ 3.94 Billion ; Production Rate @ 70,000/TPD ; Mine Life – 13.83 years ; Potential Investment @ US $ 482 Million and Potential Gross Sales @ US $ 285 Million per year.

BENGUET CORP/NADECOR Kingking Copper Gold ProjectTypical Kingking Orebody outcrop

BENGUET CORP/NADECOR Kingking Copper Gold ProjectConceptual Mine/Infrastructure layout

Present Status

PLAN/S

NEEDS/CONCERNS

Completion of Feasibility Study/ ECC for government approvals

• Complete exploration of gold-rich portion of deposit;• Conversion of MPSA to FTAA

Additional exploration work to enhance feasibility of the copper-gold deposit

STATUS

King King CopperKing King Copper--Gold Project Gold Project -- MPSAMPSABenguetBenguet Corp. and Nationwide Development Corp.Corp. and Nationwide Development Corp.PantukanPantukan, , CompostelaCompostela ValleyValley


4. Sagittarius Mines/Indophil Resources of Australia Tampakan Copper Project

Immediate Plan: To commence operation by 2009. Reserves @ 901 Million MT @ 0.75% Cu & 0.30 g/t Au with Gross Value of US $ 14 Billion. Production Rate @ 50,000 MT/day , Potential Investment @ US $ 500 Million and Potential Gross Sales @ US $ 250 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

Feasibility Study, ECC, EPEP, SDMP, Endorsement of Sanggunian

• Completion of Feasibility Study in 2006• Prepare EIA documents • Target production by 2009

Finalization of exploration drilling for the preparation of Feasibility Study and Mine Plan design

STATUS: Pre-FS Stage

TampakanTampakan Copper Project Copper Project -- FTAAFTAASagittarius Mines, Inc. (w/ Sagittarius Mines, Inc. (w/ IndophilIndophil & & AlsonsAlsons DevDev’’tt Co.)Co.)South South CotabatoCotabato, , DavaoDavao del del SurSur & North & North CotabatoCotabato


5. Pacific NickelNonoc Nickel ProjectImmediate Plan: Expected to commence commercial operation on 2009. Reserves @ 60 Million MT @ 1.13% Ni & 0.094 % Co with Gross Value of US $ 5.9 Billion. Potential Investment @ US $ 800 Million and Potential Gross Sales – US $ 300 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Company to complete documents for renewal of exploration period;• Settle loan arrears with government/PMO•Secure approval of FS & ECC

• Complete exploration work and feasibility study, & EIA• Finalize financial agreements with foreign partners

Technical due diligence by potential Chinese partners;

STATUS: EXPLORATION

NonocNonoc Nickel Project Nickel Project –– MPSA & MPPMPSA & MPPNonocNonoc Processing Corp./ Pacific Nickel PhilippinesProcessing Corp./ Pacific Nickel PhilippinesNonocNonoc Island, Island, SurigaoSurigao CityCity


6.Queensland Nickel, Inc. / BHP- Biliton Pujada Nickel ProjectImmediate Plan: To commence commercial operation in 2009. Reserves @ 200 Million MT @ 1.3% Ni with Gross Value of US $ 22.70 Billion. Potential Investment @ US $ 1000 Million and Potential Gross Sales – US $ 500 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

Approval of remaining 3 MPSA applicationsl

To complete detailed exploration work and feasibility study

Exploration drilling and test-pitting on-going.4 MPSAs approved; 3 MPSAsremaining for approval

STATUS: ON-GOING EXPLORATION

PujadaPujada Nickel Project Nickel Project -- MPSAMPSAAsiaticusAsiaticus (BHP(BHP--BillitonBilliton))Governor Governor GenerosoGeneroso and and MatiMati, , DavaoDavao OrientalOriental


7.Climax-Arimco Mining AustraliaDidipio Copper ProjectImmediate Plan: Declaration of Mining Feasibility Study and commence development in late 2005. Reserves @ 20 Million MT @ 0.65% Cu & 1.7 g/t Au with Gross Value of US $ 513 Million. Production Rate @ 2 Million MT per year , Potential Investment @ 63 Million , Potential Gross Sales @ US $ 49 Million per year and Mine life @ 12 years.

Climax-Arimco Mining AustraliaDidipio Copper Project

Porphyry Prospects at Didipio

Present Status

PLAN/S

NEEDS/CONCERNS

• Declaration of Mining Project Feasibility for approval within June 2005;• Remaining stumbling block: LGU endorsement

Target construction early 2006, 12 months construction period and production in 2007

Completing final documents with MGB, tying up financing

STATUS: FINAL MINE-DESIGN PLANNING

DidipioDidipio CopperCopper--Gold Project Gold Project -- FTAAFTAAAustralasia Philippines Mining Inc. Australasia Philippines Mining Inc. (transferred from Climax (transferred from Climax ArimcoArimco Mining Corp.)Mining Corp.)KasibuKasibu, , NuevaNueva VizcayaVizcaya & & CabaruquisCabaruquis, , QuirinoQuirino


8. QNI/BHP Billiton,AustriaAdlay-Cagdianao-Tandawa (ACT) ProjectImmediate Plan: Construction/Development in early 2005 and full operation by 2006. Reserves @ 8.9 Million MT @ 1.53% Ni, 0.144% Co. 36.9% Fe with Gross Value of US $ 818 Million. Production Rate @ 1 Million WMT per year, Potential Investment @ US $ 15 Million and Potential Gross Sales @ US $ 8 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

Declaration of Mining Project Feasibility for approval and issuance within June 2005

Construction – July 2005Mine development – July 2006Operation – July 2007

Preparations for Construction and Development

STATUS: PRE-CONSTRUCTION

AdlayAdlay--CagdianaoCagdianao--TandawaTandawa (ACT) Nickel (ACT) Nickel Project Project -- MPSAMPSASurigaoSurigao Integrated Resources Company (SIRC)Integrated Resources Company (SIRC)AdlayAdlay, , SurigaoSurigao del del SurSur and Claver, and Claver, SurigaoSurigao del Nortedel Norte


9. Alakor/Toledo Copper , UKToledo Copper ProjectImmediate Plan: To commence operation by 2008. Reserves @ 873.8 Million MT @ 0.41% Cu with Gross Value of US $ 6.5 Billion. Production Rate @ 18,000 MT/day to 42,000 MT/day in Year 3, Potential Investment @ US $ 171 Million and Potential Gross Sales @ US $ 124 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Complete submission of compliance with conditions of the approved MPSA/Feasibility Study/EPEP• Finalize financial/smelting agreements

Rehabilitation within one (1) year; To commence operation on 2008;Projected mine life of 12 years

Rehabilitation of Carmen Mining Area

STATUS: FINANCING STAGE

Toledo Copper Project Toledo Copper Project –– MPSA MPSA Atlas Consolidated Mining & Development Corp.Atlas Consolidated Mining & Development Corp.Don Andres Don Andres SorianoSoriano, Toledo City, , Toledo City, CebuCebu


10. Lepanto Consolidated Mining Co./Far Southeast Gold Resources, Inc. - Far-Southeast Gold ProjectImmediate Plan: To commence commercial operation by 2009. Reserves @ 163 Million MT @ 1.76 g/t Au & 0.81% Cu with Gross Value of US $ 4.7 Billion. Production Rate @ 50,000 MT/day , Potential Investment @ US $ 500 Million and Potential Gross Sales – US $ 250 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Need for a joint venture partner/project financing;• Deep-seated deposit requires expertise and mining technology

No specific plans yet from company

All necessary government permits issued as early as 1997Project ready for development

STATUS

FarFar--Southeast Gold Project Southeast Gold Project -- MPSAMPSALepantoLepanto Consolidated Mining CompanyConsolidated Mining CompanyMankayanMankayan, , BenguetBenguet


11. Itogon-Suyoc Mining CorpItogon Gold ProjectImmediate Plan: To commence commercial operation on 2009.Reserves @ 32 Million MT @ 3.30 g/t Au with Gross Value of US $ 839 Million. Potential Investment @ US $ 10 Million , Potential Gross Sales @ US $ 19 Million per year, Production Rate @ 3,000 MT/day with a Mine Life @ 10 years.

Present StatusItogonItogon Gold Project Gold Project -- MLCMLCItogonItogon--SuyocSuyoc Resources Mines, Inc. Resources Mines, Inc. ItogonItogon, , BenguetBenguet

PLAN/S

NEEDS/CONCERNS

• Secure ECC• Raise project financing

Rehabilitate old mine workings with target commercial operations by 2009

Care and maintenance works (reforestation, tailing dams maintenance, safeguarding the mine underground); Exploration and development in designated areas covered by the mineral claims.

STATUS


12. Filminera Resources/Thistle CanadaAroroy Gold Project

Immediate Plan: Declaration of Mining Feasibility Study by 2005. Reserves @ 71 Million MT @ 1.34 g/t Au with Gross Value of US $ 754 Million. Potential Investment @ US $ 63 Million , Potential Gross Sales @ US $ 74 Million per year and Production Rate @ 3.2 Million MT/year with a Mine Life @ 8 years.

Present Status

PLAN/S

NEEDS/CONCERNS

Secure approval of Declaration of Mining Project Feasibility, including approval of FS, ECC, EPEP, and 3-yr WP

Submit Declaration of Mining Project Feasibility to MGB, and secure financing within 2005;Target commercial operation by 2007 @ 9,000 MT/day.

Completing final confirmatory drilling for bankable feasibility study

STATUS: BANKABLE FEASIBILITY STUDY

MasbateMasbate Gold Project Gold Project -- MPSAMPSAFilmineraFilminera Resources CorporationResources CorporationAroroyAroroy, , MasbateMasbate


13. JCG Resources/Red V AustraliaSiana Gold Project

Immediate Plan: Finalize drilling evaluation and submit Declaration of Mining Feasibility study. Potential Investment @ US $ 10 Million; Potential Gross Sales- US $ 15 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Secure approval of Declaration of Mining Project Feasibility• Submission and approval of ECC

Commercial operation by January 2006

Finalizing confirmatory drilling for Feasibility Study preparation

STATUS: FEASIBILITY-STUDY

SianaSiana Gold Project Gold Project -- MPSAMPSAJCG Resources Corporation/AngloJCG Resources Corporation/Anglo--AshantiAshantiTubodTubod, , SurigaoSurigao del Nortedel Norte

III. Other Mining Projects


1. San Antonio Copper Project, MarcopperSta Cruz , Marinduque

Immediate Plan: Final clean-up of tailings spillage. Reserves @ 178 Million MT @ 0.44% Cu & 0.09 g/t Au with Gross Value of US $ 1.6 Billion. Potential Investment @ US $ 100 Million , Potential Gross Sales @ US $ 150 Million per year, Production Rate @ 20,000 MT/day with a Mine Life @ 17 years.

Present Status

PLAN/S

Complete rehabilitation works based on the USGS report.

DENR has issued orders and necessary ECC to company to implement clean-up Boac river and rehabilitation of mine site/structures

STATUS: FOR REHABILITATION

San Antonio Copper ProjectSan Antonio Copper ProjectMarcopperMarcopper Mining CorporationMining CorporationSta. Cruz, Sta. Cruz, MarinduqueMarinduque


2. Batong-Buhay Gold ProjectPasil, Kalinga-Apayao

Immediate Plan: For bidding by PMO with Technical Assistance from Mines and Geosciences bureau. Reserves @ 86.9 Million MT @ 0.599 % Cu & 0.253 g/t Au with Gross Value of US $ 1.10 Billion. Potential Investment @ US $ 200 Million and Potential Gross Sales @ US $ 150 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Resolve claims of Tankiangfamily, the original claimowners• Secure necessary mining tenements and ECC

Finalize investment package preparatory for public bidding

Recently transferred from APT/PMO NRMDC; Ongoing due technical and legal due diligence

STATUS

BatongBatong BuhayBuhay CopperCopper--Gold ProjectGold ProjectBatongBatong BuhayBuhay Gold Mines Inc. / PMO / NRMDCGold Mines Inc. / PMO / NRMDCPasilPasil, , KalingaKalinga


3. Amacan Copper Project/Hijo Gold ProjectMabini , Compostela Valley

Immediate Plan: For bidding by PMO with Technical Assistance from Mines and Geosciences bureau. Reserves Amacan @ 110 Million MT @ 0.30% Cu & 0.433 g/t Au; Hijo @ 133 Million MT @ 1.5 to 10 g/t Au with Gross Value of US $ 6.20 Billion. Potential Investment @ US $ 200 Million and Potential Gross Sales – US $ 150 Million per year.

Present Status

PLAN/S

NEEDS/CONCERNS

• Resolution of case against Apex Mining Co., Inc. in the Panel of Arbitrators of Region Xl.

• Finalize legal and technical due diligence;• Prepare prospectus for the target bidding by July 2005

Recently transferred from PMO to NRMDC

STATUS

AmacanAmacan CopperCopper--Gold ProjectGold ProjectNorth North DavaoDavao Mining Corp. / PMO / NRMDCMining Corp. / PMO / NRMDCMabiniMabini, , CompostelaCompostela ValleyValley

MINERAL EXPLORATIONPROJECTS

1. DEL GALLEGO GOLD PROJECT• Commodity : Gold • Nominal Location : Tagkawayan , Quezon and Del Gallego• Camarines Sur• Geographic Location : Latitude 13˚ 57’ 15” - 14˚ 00’ 00”• Longitude 122˚ 41’ 30“-122˚ 44’ 30“• Type of Permit : Exploration Permit No.IV-A-0078• Area : 2,282.6123 Has.• Date Approved : May 20, 2002• Permitee/Operator : Kumakata Mining Co. Inc.• (Phelps Dodge Explo. Corp.)• 4th Flr. YL Holdings Bldg.• Legaspi Village , Makati • Philippines Tel. No. 894-3562

• Local Geology and Mineralization :• The project area is underlain by andesite to dacitic flows and pyroclastics

hosting low sulphidation epithermal gold in the eastern portion.•

2. PAMPLONA SULFUR PROJECT• Commodity : Sulfur• Nominal Location : Amlan , Tanjay & Pamplona • Negros• Geographic Location : Latitude 9˚ 20’ 30” - 9˚ 25’ 15”• Longitude123˚ 05’ 00“-123˚ 10’ 55“• Type of Permit : Exploration Permit No. 000007-VII• Area : 3,737.60 Has.• Date Approved : July 04, 2003 • Permitee/Operator : Altai Phils. Mining Corp.• (Crew Minerals Phil. , Inc.)• 3rd Flr. , Legaspi Tower , Roxas Blvd.

Metro Manila , Philippines • Tel. No. 525-7757

• Local Geology and Mineralization :• The area is underlain by volcanic flows and pyroclastics on the flank of the

volcanic crater hosting sulfur mineralization. Three types of alteration are recognized : silification ,argillic , and advance argillic

3. SOUTHERN NEGROS GOLD PROJECT• Commodity : Gold • Nominal Location : Amalan, San Jose , Sibulan , Valencia &

Sa. Catalina , Negros Occidental• Geographic Location : Latitude 9˚ 16’ 00” - 9˚ 24’ 00”• Longitude 123˚ 06’ 00“-123˚ 13’ 00“

• Type of Permit : Exploration Permit No. 006-97• Area : 8,960.25 Has.• Date Approved : January 10, 2002 (Renewal)• Permitee/Operator : Philippine National Oil Corp. - EDC• Energy Complex , Merrit rd., Forth Bonifacio • Makati City , Philippines

• Local Geology and Mineralization:– Deposit type: Low sulphidation epithermal gold related to porphyry copper.

The area is covered by andesitic to dacitic lava flows and pyroclastics. Pyrite , chalcopyrite , bornite and sulfur assemblage are found in silica rich rock occurring as veinlets/stockworks with some significant gold values.

•

4. ALICIA GOLD PROJECT• Commodity : Gold , Copper & Silver• Nominal Location : Alicia , Malangas , Payao & Imelda ,

Sibugay , Zamboanga del Sur• Geographic Location : Latitude 7˚ 32’ 00” - 7˚ 35’ 30”• Longitude 122˚ 54’ 00 “-122˚ 58’ 30“• Type of Permit : Exploration Permit No. 002-97IX• Area : 5,893.92 Has.• Date Approved : March 15, 2002• Permitee/Operator : Philippine National Oil Corp. - EDC• Energy Complex , Merrit rd., Forth

Bonifacio , Makati City , Philippines

• Local Geology and Mineralization :• The area is underlain by phyllites and ultramafic rocks, andesitic to basaltic

flows interacalated with sedimentary rocks. The occurrence of the elevated gold values commonly coincides with the underlying andesite flows that are known to host the sulfide bearing quartz veins.

5. KINGKING EPITHERMAL GOLD PROJ.• Commodity : Gold & Silver• Nominal Location : Kingking , Pantukan , Compostela Valley• Geo. Location : 3km northeast of the Kingking Porphyry

Copper project of Benguet Corporation • Type of Permit : MPSA No. 009-92-XI • Area : 439.3 Has.• Date Approved : May 27, 1992 (Amended Dec. 10, 2002)• Permitee /Operator : NADECOR / Benguet Corp• Local Geology and• Mineralization :

• Gold Resource: Preliminary or “first-pass” fieldwork conducted by Benguet has shown that at least eight (8) of the fourteen (14) veins mapped showed good promise, with average grades of 4.17-15.37 gram/tonne gold. Initial resource estimates for the same structures yielded about 67,000 tonnes averaging 8.02g/t Au (Table 1)

5. KINGKING EPITHERMAL GOLD PROJ.• Con’t.• Local Geology: The area is generally underlain by a sequence

of volcano-sedimentary rocks dated Cretaceous-Paleogene (Kpg) in age. The rock sequence is oriented in a northwest to east-west direction with moderate to steep southwesterly and northeasterlydips. It consists of intercalated, siltstone, greywacke and sandstone beds that exhibit more or less uniform thicknesses. The sedimentary sequence is, in places, intruded by biotite-feldspar diorite porphyry in the form of stocks and dikes.

• The intrusive is dated Lower Miocene to Middle Miocene in age and is believed to be the progenitor of the gold and copper mineralization in the Kingking district.

• The gold-bearing epithermal veins are mainly hosted by sedimentary rocks and, to a lesser degree, by biotite feldspar diorite porphyry intrusives.

5. KINGKING EPITHERMAL GOLD PROJ.

• Con’t.TABLE 1: PRELIMINARY GOLD RESOURCE:KINGKING EPITHERMAL GOLD PROSPECT

17,2388.0268,83111,3206.4849,3406,96512.3917,491Total

1,2867.675,2141,1657.514,8251219.73389DIAT

15,9518.0561,6169,1076.3644,5146,84312.4517,101PANGANASON

Contained Oz. Au

g/t AuTonnesContained Oz. Au

g/t AuTonnesContained Oz. Au

g/t AuTonnes

TOTAL RESOURCEINFERRED RESOURCEINDICATED RESOURCEPROSPECT AREA

6. STA. CRUZ NICKEL PROJECT• Commodity : Nickel, Chromite, Platinum Group• Nominal Location : Bgry. Guisquis, Sta. Cruz, Zambales• Geo.Location : Latitude15°37’00 - 15°44’00 "• Longtitude 120°01’35 -

120°04’30"• Type of Permit : Mineral Production Sharing

Agreement No. 191-2004-III• Area : 3,765.38 Has.• Date Approved : May 22, 2004• Permitee / Operator: Benguet Corporation• One Corporate Plaza• 845 Arnaiz Avenue, Makati City,

Philippines•

6. STA. CRUZ NICKEL PROJECT

• Con’t.• Local Geology: The property is underlain by mafic and

ultramafic rocks which are part of the Zambales Ultramafic Complex. The main bedrock is harzburgite which is in gradational contact with dunitic lenses east of the property. The harzburgite is medium to coarse grained and moderately serpentinized. Stress and deformation features are not pronounced but microfracturing is moderate to intense. The dunite is massive, granular, and consists of olivine with disseminated chromite and magnetite. The ultramafics are overlain by gabbro, olivine gabbro, norite and pegmatite.

6. STA. CRUZ NICKEL PROJECT• Con’t.• Total Work Performed By Benguet:• Number of test pits 1,299• Total depth of test pits (meters) 8,622• Number of auger drill holes 101• Meters drilled 817• Test Pit Grid (m): 100• Test Pit Average Depth (m): 8 Test Pit

Sampling:Vertical channel cut @ 1m; interval on two (2) sides.

• Present Nickel Resource Inventory:• Ni Resource = 16.238M tonnes• Average Grade of 1.56% Ni and 0.047% Co• @ Ni Cut-off Grade of 1%• Preliminary Stripping Ratio = 1.67t ore to 1t waste

7. PANTINGAN GOLD PROJECT

•Commodity : Gold, Silver, Copper•Nominal Location : Bagac. Bataan•Geo. Location : Latitude 14°30’49" - 14°32’49"

Longtitude120°27’28" -120°29’59"•Type of Permit : Mineral Production Sharing

Agreement No. 154-2000-III•Area : 1,410.24 Has•Permitee / Operator: Bataan Minerals Corp.

Benguet Corporation

7. PANTINGAN GOLD PROJECT•Con’t.

•The veins and structures ranging in width from 0.70 m to 20.0 m consist of chalcedonic vein quartz or silica ± clay altered material containing significant sulfides (up to 10 %), notably pyrite, marcasite, ±arsenopyrite, and ±chalcopyrite. The sulfides occur as fine disseminations, blebs, and as minute bands. Vein breccias were also noted in some of the structures. These characteristics typify the upper horizon of an epithermal system.•Geological mapping and sampling validated five (5) potentially gold-bearing veins hosted in andesite, agglomerate and andesite porphyry. These NW trending structures range in width that from 1.50m to 20.0 m and have potential strikelengths up to 1km.

8. KALAYA-AN GOLD PROJECT• Commodity : Copper , Gold & Silver• Nominal Location : Mainit , Sison , Placer , Surigao Del Norte• Geographic Location : Latitude 9˚ 36’ 30” - 9˚ 37’ 00”• Longitude 125˚ 31’ 00 “-125˚ 31’ 30“• Type of Permit : Exploration Permit No. XIII-014

(Expired ,2nd Renewal under evaluation)• Area : 2,462.92 Has.• Date Approved : July 17, 2002• Permitee/Operator : Manila Mining Corporation• 20/F Lepanto Bldg., Makati , • Philippines Tel. No. 815-9447

• Local Geology and Mineralization :• The area is underlain by pre-teriary ultramafic rocks and metamorphosed

sediments, limestone , volcanic flows , tuffs/ashes and breccias. Numerous gold occurrences and presnt in the area.

•

9. PANAON GOLD PROJECT• Commodity : Gold & Silver• Nominal Location : Panaoan Island , Southern Leyte• Geographic Location: Latitude9˚ 58’ 00” - 10˚ 06’ 00”• Longitude 125˚ 07’ 00 “-125˚ 15’ 00“• Type of Permit : Exploration Permit No. 2002-001-VIII• Area : 6,611.50 Has.• Date Approved : June 21, 2001• Permitee/Operator : Buena Suerte Mining Corporation• 27-A Southdrive , P O Box 298 ,• Baguio City , Philippines • Tel. No. 074-444-5576• Local Geology and Mineralization :• The area is underlain by ultramafics and andesitic flows intruded by

diorite. Possible mineralization is epithermal gold vein/stock work.

10. TONGONAN GOLD PROJECT• Commodity : Gold , Copper , Silver & other

associated mineral• Nominal Location : Ormoc , Albuera , Burauen , La Paz,

Baybay , Province of Leyte• Geographic Location: Latitude10˚ 50’ 00” - 11˚ 04’ 29”• Longitude124˚ 45’ 00“-124˚ 53’ 46“• Type of Permit : Exploration Permit No. 000005-VIII• Area : 8,979.26 Has.• Permitee/Operator : Philippine National Oil Corp. - EDC• Energy Complex , Merrit rd., Forth

Bonifacio ,Makati City , Philippines • Local Geology and Mineralization :• Deposit type: Low sulphidation epithermal gold related to porphyry

copper. The project area is underlain by ultramafics and volcanic lavas, Pyroclastics and lahars showing advance argillic , argillic and propylitic alteration.

11. SURIGAO GOLD PROJECT• Commodity : Gold & Silver• Nominal Location : Malimono , Placer , Bacuag and Gila

Quit ,Surigao del Norte• Geographic Location: Latitude 9˚ 31’ 00” - 9˚ 46’ 10”• Longitude 125˚ 23’ 42 “-125˚ 39’ 30“• Type of Permit : Exploration Permit No. XIII-015(Ist Renewal)

• Area : 4,952.40 Has.• Date Approved : December 26, 2002• Permitee/Operator : Buena Suerte Mining Corporation• 27-A Southdrive , P O Box 298 , • Baguio City ,Philippines Tel. No. 074-444-5576

• Local Geology and Mineralization :• Deposit type: Low sulphidation epithermal gold. The area lies in the

northern most portion of the eastern Minindanao Ridge , which is a complex NW-Trending Island arc structure that developed at Least in the late Cretaceous period.

12. PAO GOLD PROJECT• Commodity : Gold, Silver• Nominal Location : Kasibu, Nueva Vizcaya• Geographic Location : Latitude 16 14’00”• Longitude121 21’00” (Central Geographic Location)

• Type of Permitt : Exploration Permit No. II-00014• Area : 5,873.68 Has.• Permitee / Operator : Oxiana Phils., Inc.• 27-A Southdrive, P.O. Box 298, Baguio

Post Office, B.C., Philippines Tel. # (74) 4445576

• Local Geology and • Mineralization:• The area is dominantly underlain by andesitic volcanoclastics consisting of

lava flows, welded tuff and volcanic breccias believed to be of the same age as the late Oligocene-early Miocene syenites/monzonites of the Palali batholith.

13. TABUK COPPER PROJECT• Commodity : Copper, Lead, Zinc• Nominal Location : Pinukpok & Balbalan, Tabuk, Kalinga

Geographic • Location : Latitude 17 25’00” – 17 27’00”• Longitude 121 17’37.297” – 121 18’30”• Type of Permit : Exploration Permit Application No. 070• Area : 3,807.00 Has.• Permitee / • Operator : Wolfland Resources, Inc.• P.O. Box 1042• 2600 Baguio City, Philippines• Local Geology and • Mineralization:• The project area is underlain by propylitic altered volcanic flows with

intercalated sedimentary rocks intruded later on by andesitic dikes. Possible mineralization is porphyry copper.

14. ROAD 5 M GOLD PROJECT• Commodity : Gold• Nominal Location : Sitio Napo, Barrio Caatijan, Boston, • Daval Oriental• Geographic Location : Latitude 7°55’30" - 7°56’30"• Longtitude 126°18’00" - 126°19’00"• Type of Permit : Exploration Permit No. XI-0002• (Expired, Renewal application pending )• Area : 338 Has.• Date Approved : April 18, 2000• Permitee / Operator : Boston Mineral Mining Corporation• Road 5 Napo, Caatijan, Boston, • Davao Oriental , Philippines• Local Geology and• Mineralization:• Deposit type: low sulphidation epithermal gold deposit. The project area is

underlain by tuff, andesite, basalt with interbedded sandstone, biomicrite and andesite porphyry intrusions. Area is located on the steep NE trenching ridge which is part of the valley system on which NAPO creek runs. Outcrop mapping and drilling has identified a sequence of nterbedded pyroclastics sediments and dykes. The area is host to a low-sulfidation epithermal system, most likely late Quaternary to Mid-Miocene in age. The area varies in grade between 4g to 40g/ton.

15. CONNER COPPER GOLD PROJ• Commodity : Copper, Gold• Nominal Location : Conner, Kalinga, Apayao, CAR• Geo.Location : Latitude 17 38’00” – 17 42’00”• Longitude 124 45’00” – 124 53’46”• Type of Permit : Exploration Permit No. 037• Area : 7,337.00 Has.• Permitee / Operator : Cordillera Exploration Company• (Newmont Phils.)• PSE Center West Tower, Ortigas, Pasig,

Philippines Tel. # 6372091

• Local Geology and • Mineralization:• The area is underlain by quartz diorite intruding the propylitic altered basalt

flow. Swarms of later hornblende andesitic dikes intrude the quartz diorite and metavolcanics. Possible mineralization is low sulphidation epithermal gold mineralization associated to porphyry copper mineralization.

16. CAMP 3 GOLD PROJECT• Commodity : Gold• Nominal Location : Tuba, Benguet• Geo.Location : Latitude17 38’00” – 17 42’00”• Longitude 124 45’00” – 124 53’46”• Type of Permit : Exploration Permit Appl. No. 072• Area : 1,741.00 Has.• Permitee / Operator :Northern Luzon Exploration and

Mining Company• (Anglo America / Philex) Tel no. # 6311381• #27 Brixton St., Pasig City, Philippines• Local Geology and Mineralization:• The area is underlain by the Paleogene metamorphosed sediments

and volcanics belonging to the Pugo formation and Zigzag formation intruded by the late Oligocene Central Cordillera Porphyry Complex and the late Miocene Black Mountain Quartz diorite porphyry. There is a possible gold vein/ stockwork mineralization related to porphyry copper and lead zinc skarn mineralization.

17. GAMBANG GOLD PROJECT• Commodity : Gold, Copper• Nominal Location : Bakun, Benguet• Geo.Location : Latitude16 42’00” – 16 49’00”• Longitude120 44’00” – 120 48’00”• Type of Permit : Exploration Permit Appl.No. 007• Area : 5,241.51 Has.• Permitee /Operator : Tribal Mining Corporation

• Local Geology and • Mineralization:• The area is underlain by propylitic altered volcanic flows and

pyroclastics rocks intercalated with sedimentary rocks and intruded by gabbroic to tonalitic rocks of Oligocene to Miocene in age. Possible mineralization is porphyry copper-gold.

18. PANTUYAN GOLD PROJECT• Commodity : Gold• Nominal Location : Pantuyan, Panaoan Island,Southern

Leyte• Geo.Location : Latitude 9 58’00” – 10 04’00”• Longitude 125 13’30” – 125 16’00”• Type of Permit : Exploration Permit Application No. 007• Area : 5,241.51 Has.• Permitee /Operator : Vulcan Industrial and Mining Corp.• 5 & 6th Flr. Quadalpha Centrum Bldg.,

Pioneer St. Mandaluyong City, Philippines• Tel. #6345045

• Local Geology and • Mineralization:• Diorite and andesite underlie the area. Gold mineralization occurs in

association with quartz veins, disseminated pyrite and chalcopyrite. Available data shows that the veining in the diorite trend NW while the andesite trends to the NS to NE.

19. SOGOD COPPER GOLD PROJ• Commodity : Copper, Gold• Nominal Location : Sogod, Southern Leyte• Geo. Location : Latitude 10 24’00” – 10 28’00”• Longitude 124 56’00” – 125 02’00”• Type of Permit : Exploration Permit Appl.000032-VII• Area : 6,814.83 Has.• Permitee /Operator : UP Mines Incorporated• IDC Bldg., E. Rodriguez Ave., • Ugong Norte, Q.C.Philippines• Tel. No. 6331256• Local Geology and • Mineralization:• The area is underlain by andesitic flows and pyroclastics rocks. The

rocks are strongly dissected by numerous faults which are complimentary to the Philippine Rift zone. A strong gouge or clay zone with copper-lead-zinc is observed and appears related to the geologic structures in the area.

•

20. BATOTO GOLD PROJECT• Commodity : Gold• Nominal Location : Brgy. Camanlangan, New Bataan,

Compostela Valley Province• Geo.Location : Latitude 7 29’15”• Longitude125 05’15” (Central Geographic Location)

• Type of Permit : Mineral Production Sharing Agreement Application (APSA No. 000246)

• Area : 681.00 Has.• Permitee / Operator : Philco Mining Corporation• 23rd Flr. Multinational Bancorporation

Centre,Ayala Ave., Makati City, Philippines

• Local Geology and • Mineralization:• Deposit type: low sulphidation epithermal gold related to porphyry copper.

The project area is underlain by volcanic floes and dikes intruded by diorite and late dacitic stocks and dikes capped by younger volcanics and dacitic composition.

21. TAGPURA COPPER PROJECT

• Commodity : Copper• Nominal Location : Brgy. Camanlangan, New Bataan,

Compostela Valley Province• Geo. Location : Latitude 7 29’25”• Longitude 125 07’25” (Central Geographic Location)

• Type of Permit : Exploration Permit Appl.No. 000163• Area : 2,152.00 Has.• Permitee /Operator : Philco Mining Corporation• 23rd Flr. Multinational Bancorporation

Centre Ayala Ave., Makati City, Philippines

• Local Geology and • Mineralization:• Deposit type: low sulphidation epithermal gold related to porphyry copper.

The project area is underlain by volcanic floes and dikes intruded by diorite and late dacitic stocks and dikes capped by younger volcanics and dacitic composition.

22. ACOJE / PGE / NICKEL PROJ• Commodity : Nickel . Platinum Group , Chromite • Nominal Location : Santa Cruz , Candelaria , Zambales• Geographic Location : Latitude 15˚ 37’ 00” - 15˚ 44’ 00”• Longitude 120˚ 01’ 00“-120˚ 04’ 00“• Type of Permit : MPSA No. 191-2004-III• Area : 3,765.38 Has.• Date Approved : May 22, 2004• Permitee/Operator : Crau Mineral Resources Corp / Kinloch

Resources Ltd. Rusina Mining Ltd.

• Local Geology and Mineralization :• Type of deposit is nickel laterite . The area is underlain by a complete sequence of

layered cumulates (harzburgites/dunites) at the base (westernend) to layered gabbro/diorite and chert spillites (eastern end). The dunite horizons host mostt of the known nickel, chromite and platinum group element (PGE) mineralization.

• A previous diamond core drilling program carried but by Kinloch in 2003 was able to define a projected 800 meter long PGE bearing layer oe lense with apparent widths ranging between 0.8 m to 7.2 m and with elevated PGE values from 1.104 g/t to 16.108 g/t

• A more detailed reverse circulation drilling program is being undertaken as a follw-up to the encouraging results of the previous drilling program.

23. KEMATU GOLD PROJECT• Commodity : Gold & Silver• Nominal Location : Kematu , Tiboli South Cotabato• Geographic Location :Latitude 6˚ 11’ 30” - 6˚ 12’ 00”• Longitude 120˚ 51’ 00“-124˚ 51’ 30“

• Type of Permit : MPSA No. 090-97-XI• Area : 84.98 Has.• Date Approved : November 20, 1997• Permitee/Operator : Tribal Mining Corporation• Local Geology and Mineralization :• The area is underlain by dacite porphyry and to the south by a

sequence of tuff agglomerates. Gold values from the tunnel sampling have varied up to a high of 656.37 g/t – 80 samples value soil sampling was 6990 ppb Au.

•

24. HIXBAR COPPER GOLD PROJ• Commodity : Copper, Gold, Silver, Zinc• Nominal Location : Canogcog, Sta. Barbara • Rapu-Rapu Island, Albay• Geographic Location : Latitude 13 11’00” – 13 13’00”• Longitude 124 07’00” – 124-11’30”• Type of Permit : Mineral Production Sharing Agreement

No. 192-2004-V• Area : 2,640.936 Has.• Permitee / Operator : Rapu-Rapu Minerals Inc.• Legaspi Suites, Salcedo St. Makati,

Philippines Tel. No. 8134131• Local Geology and • Mineralization:• The Hixbar massive sulphide deposit occurs within a folded sequence of

mafic and felsic volcanic rocks. The Hixbar deposit is a deformed massive sulfide orebody classified as Besshi-type. It is hosted by locally altered dacitic layers that are closely associated with intercalated quartz-feldspathic schists. The deposit is composed predominantly of pyrite with chalcopyrite, sphalerite, chalcocite, bornite and gold.

25. ARCHANGEL GOLD PROJECT• Commodity : Gold, Silver• Nominal Location : Brgy. Balibago, Labo, Batangas• Geographic Location : Latitude 13°37’30" - 13°39’30"• Longtitude 121°17’30" - 121°19’30"• Type of Permit : Mineral Production Sharing Agreement

No. 177-2002-IV• Area : 981.00 Has.• Date Approved : November 21, 2002• Permitee / Operator : Mr. Manuel G. Arteficio• C/o Egerton Gold Phils., Inc.• 111 D. South Star Plaza, South Super Hi-

way cor Gen. Estrella St., Bangkal,• Makati City• Local Geology and• Mineralization:• The project is situated in a Tertiary calc-alkaline volcano-plutonic arc complex

related to subduction of the South China plate underneath the southern most segment of the Manila Trench. Lithology consists of strongly altered volcanics intruded by andesitic and dacitic intrusives and overlain by younger cover volcanics to the northeast.

25. ARCHANGEL GOLD PROJECT

• Con’t.• Local Geology and• Mineralization:

• Epithermal gold-silver mineralization is associated with quartz stockworking of varying intensity and massive replacement quartz. Trench channel sample in Kay Tanda prospect, Pulang Lupa Area gave 15 m of 3.18 g/t Au and 63.54 g/t Ag.

• A channel sample in Lumbangan area gave 20 m of 2.66 g/t Au and 46 g/t Ag. At the Marita prospect, a quartz stockwork float boulder assayed 9.92 g/t gold.

• At lower elevations, alterations characteristic of phorphyry copper-gold system has been mapped over an area of at least 3 km by 1 to 1.5 km wide. A 3 m trench sample at Balibago gave 5.58% Cu and at South Lumbagan, a 5 m trench sample of quartz stockworked material assayed 3.22% Au and 4% Zn.

26. HINONANGAN GOLD PROJECT

• Commodity : Gold, Silver• Nominal Location : St. Bernard, Southern Leyte• Geo. Location : Latitude 10 17’30” – 19 58’80”• Longitude 125 07’30” – 125 09’26.71”• Type of Permit : Mineral Production Sharing Agreement

No.169-2001-VIII• Area : 855.71 Has.• Date Approved : January 16, 2001• Permitee / Operator : San Christo Mineral Exploration Corp.• 3rd Flr. L&F Bldg., 107 Aguirre St. Legaspi

Village,Makati City, Philippines 1200• Local Geology and • Mineralization:• Rock units mapped in the area are porphyritic andesite and

sandstone/conglomerate. Minor malachite and fine pyrite dissemination as patches and masses are noted to be associated with hydrothermal breccia, quartz veins/ stockwork.

•

27. LABO GOLD PROJECT• Commodity : Gold, Silver• Nominal Location : Brgys. Dalas & Masalong, Labo, • Camarines Sur• Geographic Location : Latitude 14°08’30" - 14°10’30"• Longtitude 122°48’00" - 122°49’30"• Type of Permit : Mineralization Production Sharing

Agreement No.119-98-V• Area : 995.38 Has.• Date Approved : June 4, 1998• Permitee / Operator : Indophil Resources Phils.,

Incorporated• 3rd Flr., L & F Bldg., 107 Aguirre St.,

Legaspi Village , Makati City, • Local Geology and• Mineralization:• Geology consists of hydrothermally altered volcanics intruded by hornblende

porohyry in intrusions and overlain in places by younger cover volcanics and limestone.

27. LABO GOLD PROJECT• Con’t.• MRL gold has drilled 28 holes totaling 1996.4 m at the southwest breccia.

Gold resource estimate was carried out on the southwest breccia ore shoot estimates indicated resources to a depth of 130 meters, are 270,000 tonnes at a grade of 6.4 g/t, containing 56,300 oz. of Au. Additional inferred resources are 61,000 tonnes at a grade of 5.35 g/t, containing 10,500 oz. of Au.

• Hole 38 on the Sampson Vein Breccia Trend intersected a 12m of 7.42 g/t Au including 2.5m at 29.46 g/t Au. The most recent drilling tested the Camo prospect area where mineralization is at high sulphidation type with copper and silver associated with gold mineralization. Hole 49 intersected 3 zones mineralization; 1.12 g/t Au, 133.5 g/t Ag and 1.24% Cu over 1.0 m; 0.19 g/t Au, 114.88 g/t Ag and 0.36% Cu over 3.5m ; and 0.16 g/t Au, 64.56 g/t Ag and 0.29% Cu over 2.0m. Hole 51 drilled 45m along strike intersected 0.17 g/t Au, 488.38 g/t Ag and 1.83% Cu over 4.5m, as well as a deeper zone of mineralization assaying 0.11 g/t Au, 83 g/t Ag and 0.38% Cu over 2.25m

28. SAMAR BAUXITE PROJECT• Commodity : Aluminum• Nominal Location : Municipality of Motiong, San Jose,

De Buan, Wright Western Samar• Geo. Location : Latitude 11 52’00” – 11 57’00”• Longitude 125 02’00” – 125 -06’00”• Type of Permit : Mineral Production Sharing

Agreement No. 179-2002-VIII• Area : 6,480.00 Has.• Date Approved : December 12, 2002• Permitee / Operator: Alumina Mining Phil. Inc.• Kennedy St., Greenhills, San Juan,

Philippines Tel. #2410657• Local Geology and • Mineralization:• The bauxite deposit in Western Samar is situated in the sinkholes

and solution channels of the Tertiary limestone member of the Param Formation. It is relatively soft to friable.

29. NALESBITAN GOLD PROJECT• Commodity : Gold• Nominal Location : Brgy. Dumagmang, Labo, • Camarines Norte• Geo. Location : Latitude 14 05’00” – 14 06’30”• Longitude 122 37’30” – 122 38’30”• Type of Permit : Mining Lease Contract• Area : 497.75 Has.• Permitee / Operator : El Dore Mining Corp.• Local Geology and • Mineralization:• Located o a major tectonic terrane boundary and an intersecting crustal

fracture zone, the project is characterized by a major hydrothermally remobilized large porphyry Cu-Au-Mo- system, i.e., a two phase porphyry copper – hydrothermal system. Renison Goldfields Consolidated mined the narrow-low grade hydrothermal breccia areas ores referred to as the Nalesbitan high sulphidation Au-Cu deposit. In 1989, major new zones of high grade gold and copper mineralization in the form of a vertical sheeted vein wide system were uncovered.

30. BUNAWAN LIMESTONE PROJ• Commodity : Limestone and Shale• Nominal Location : Bunawan and Lasang, Davao del Norte• Geo. Location : Latitude 7 13’00” – 7 19’00”• Longitude 125 35’00” – 125 38’15”• Type of Permit : Mineral Production Sharing Agreement

No. 187-2002-XI• Area : 5,247.44 Has.• Permitee /Operator : Solid North Mineral Corporation• Rm. 204 Alegria Bldg., • 2229 Pasong Tamo St.• Makati Philippines• Local Geology and Mineralization:• Late Pliocene Masuhi Formation consisting of sandstone, shale, and

conglomerate interbeds underlie the area. This is unconformably overlain by early Pleistocene Mandog Formation consisting of interbedded and well consolidated sandstone and shale with minor conglomerate. Porous and poorly compacted limestones were deposited during the early Holocene time.

31. AGATA GOLD PROJECT• Commodity : Gold• Nominal Location : Jabonga, Santiago, Tublay, • Agusan del Norte• Geographic Location : Latitude 9°10’00" - 9°20’30"• Longtitude 125°30’00" - 125°34’00"• Type of Permit : Mineral Production Sharing Agreement• No. 134-99-XIII• Area : 7,086.00 Has.• Permitee / Operator : Minimax Mineral Exploration Corp• 4th Flr., J & T Bldg., Ramon Magsaysay

Blvd., Manila, Philippines• Local Geology and• Mineralization:• Geology consist of green schist overthrust by ultramafics, uncomformably overlain

by limestone and intruded by intermediate and alkaline intrusions. Strong gold and copper anomalies in soil samples have been defined over 2 by 1 km encompassing clusters of gold showing associated with the American tunnels. Assmicor and Limestone Prospects. Drilling program conducted over Assmicor oxide prospect showed two best holes, namely Hole 5 with 1.1 g/t Au over 19m and Hole 6 with 1.4 g/t Au over 2.4 m. Drilling undertaken in Limestone prospect showed Holes 9 and 10 encountering 2.7 g/t Au and 2.2 g/t Au over 7 and 8m respectively at shallow depths.

32. COLET MINING CORP. & DEV’T PROJ• Commodity : Copper, Gold, Silver, Molybdenum• Nominal Location : Brgy. Manlucahoc, Sipalay City, • Negros Occidental• Geo.Location : Latitude 12 04’12” – 12 06’54”• Longitude 121 21’15” – 121 25’00”• Type of Permit : Mineral Production Sharing Agreement

Application No. 000087-VI• Area : 2,991.80 Has.• Permitee / Operator: Colet Mining Corp. and Development• Local Geology and • Mineralization:• The porphyry copper mineralization is related to the intrusion of the

hornblende-dacite porphyry intruding the Panlubangan biotite-hornblende monzo-diorite stock. The prevalent minerals are chalcopyrite, bornite, chalcocite, covellite and molybdenite.

33. TERESA MARBLE CORP. GOLD PROJ

• Commodity : Gold, Copper• Nominal Location : Sara and Lemery, Iloilo

• Dumarao, Maayon, • Pres. Roxas, Monteverde, Capiz• Geographic Location: Latitude11°16’30” - 11°19’30”

• Longtitude 122°52’00" - 122°58’30" • Type of Permit : Mineral Production and Sharing

Agreement No. 107-98-VI• Area : 4,719.75 Has.• Date Approved : March 23, 1998• Permitee / Operator : Teresa Marble Corporation

33. TERESA MARBLE CORP. GOLD PROJ• Con’t. • Local Geology and• Mineralization:• The project is underlain by basaltic to andesitic lava flows of the Sibala Formation and

intruded by the Sara Diorite. A younger hornblende diorite porphyry intruded the older two rock units. A much later diorite and andesite dikes intruded the Sibala volcanics and the hornblende diorite porphyry. The result of the geological / alteration mapping suggests that porphyry copper-gold and gold/copper bearing quartz veins/stockwork type of mineralization maybe present in the area.

• There were 15 holes drilled with a total meterage of 2,597.6m. PDDH 1 encountered 34 m @ 0.28 g/t Au and 0.18% Cu in K-silicate altered hornblende plagioclase diorite porphyry with quartz stockworks. PDDH 2 showed 18 m. @ o.18 g/t Au and 0.09% Cu in the same potassic altered hornblende plagioclase diorite porphyry. PDDH 3 intercepted 63 m @ 0.1 – 0.6 g/t Au and elevated Cu values generally between 200 –900 ppm in sericite-chlorite-clay (SCC) altered hb-plag diorite porphyry overprinted by propylic alteration. PDDH 4 encountered 60 m @ 0.12 – 0.34 g/t Au and 100 – 300 ppm Cu in propylitic altered andesitic volcanic wall rocks. PDDH 5 showed gold values ranging from 0.01 – 0.05 g/t Au and 200 – 800 ppm Cu. PDDH 8 showed gold assay values of 0.1 – 0.9 g/t and Cu values of 0.1 – 0.8% in moderately altered biotite potassic core. PDDH 9 showed gold values of 0.14 – 0.4 g/t and Cu values from 100 – 250 ppm in weal K-siul altered potassic core with SCC overprinting. PDDH 10 showed gold values of 0.11 – 0.22 g/t and very low Cu values in weak to moderate K-sil alteration overprinted by SCC alteration

34. PAPAYA COPPER GOLD PROJ

• Commodity : Copper, Gold• Nominal Location : Brgy. Papaya, Kasibu,

Nueva Vizcaya• Geographic Location: Latitude 16°20’30"• Longtitude 121°18’00"• Type of Permit : Exploration Permit No. 02-

0007• Area : 820.9574 Has.• Date Approved : November 21, 1997• Permitee / Operator : Lasseter Mining

Corporation • (Climax Arimco)

34. PAPAYA COPPER GOLD PROJ• Con’t.

• Local Geology and• Mineralization:• The Papaya Copper-Gold Project sits on the southern inner wall of the

Runruno caldera associated with the emplacement of the Palali syenite (25 Ma). The prospect area is covered by trachytic to andesitic lavas and pyroclastics of Mamparang Formation. A thin veneer of well sorted sandstone, siltstone and mudstone overlies the pyroclastics along the Paliduan River in the north. A N-S trending bird’s eye porphyry dike intrudes the pyroclastics. Uncomformably overlying the Mamparang Formation is the Paldi Formation which is composed of conglomerate, basaltic and andesitic lavas, mudstone, sandstone and dacitic pyroclastics from Early to Middle Miocene Age.

• Preliminary regional geological mapping and geochemical sampling showed that the area is host to porphyry copper-gold and gold/copper bearing quartz veins/stockworks related to alkalic intrusion. Stream sediment (-80#) sampling on creeks draining the prospect assayed 126 ppb Au/668 ppm Cu, 119 ppb Au/1533 ppm Cu. A five meter wide channel sample o K-silicate-magnetite altered monzonite assayed 3.7 ppm Au, 0.1 % Cu and 0.1% Mo. In addition, a 3 meter wide channel sample along Ubon Creek yielded 0.5 g/t Au and 0.2% Cu (E431447). Geochemical survey conducted by MMAJ-JICA (1997 ) identified Cu-Mo anomalies in creeks draining the prospect area.

•

35. BERONG NICKEL PROJECT

• Commodity : Nickel & Iron • Nominal Location : Quezon , Aborlan , Palawan• Type of Permit : MPSA No. 00536 IV• Area : 6,006.24 Has.• Date Approved : October 16, 1991• Permitee/Operator : Atlas Conslidated Mining Development • TMM Management Inc.• Local Geology and Mineralization :• The in-situ weathering of the Mt. Beaufort ultramafics resulted in the

concentration and enrichment of nickel and cobalt in the preserved laterite (soil) profile . In the saprolite zone , the minerals found are serpentine, talc, garnierite and goethite. Based on 3,868 test pits at 300m by 300m grid system, Atlas reported the following estimates of indicated and probable reserves a cut-off gardes of 0.9% Ni for Laterites and 1.3 % Ni for Saprolite:

% Nickel % CobaltLaterite 92,514.00 1.15 0.134Saprolite 95,173.00 1.66 0.049

AVERAGE GRADEMineral Resources Indicated/Probable Reserves

“The business of mining is the business

of nation-building.”

nominal location

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