PSE Circular for Brokers No. 052-98

February 5, 1998 PSE CIRCULAR FOR BROKERS NO. 052-98 February 4, 1998 PHILIPPINE STOCK EXCHANGE, INC. (PSE) Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig, Metro Manila Attention : Ms . Maria Isabel T . Garcia Head, Listing Department Gentlemen/Mesdames : Please be advised that the Board of Directors of Petron Corporation, during its regular quarterly meeting hold this morning: (1) Approved a P135 million funding for additional storage tanks, new aviation facilities, and a berthing facility; and (2) Approved the amendment of the Article II, Section 2 of the By-Laws by authorizing the Board to fix the date of its Annual Stockholders' Meeting to a business day in April or to another later date, if circumstances so warrant at the discretion of the Board. At the same time, the Board-fixed the forthcoming Stockholders' Meeting to July 20, 1998, subject to SEC approval of the amendment of the By-Laws. The Board of Directors received the 4th quarter Financial Report which showed that as of December 31, 1997 Petron ended with a net loss of P631 million despite an increase volume of sales of 61.4 million barrels. The Company's consolidated assets increased to P48.8 billion. We trust that we have sufficiently complied with your disclosure requirements. Very truly yours, (SGD.) LIBERADOR V. VILLEGAS Corporate Secretary