Philippine Stock Exchange

February 5, 1998 PSE CIRCULAR FOR BROKERS NO. 063-98 PHILIPPINE STOCK EXCHANGE Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City, Metro Manila Fax No. 636-0809 Attention : Ms. Maria Isabel T. Garcia Head, Listing Department Gentlemen : Alcorn Petroleum and Minerals Corporation (APMC), together with Petrofields Corporation and Trans-Asia Oil & Energy Development Corp. as co-contractors, signed today a Geophysical Survey and Exploration Contract ("GSEC No. 93") with the Department of Energy covering the East Visayan Sea Basin and some parts of the Island of Leyte totalling 1,456,000 hectares, more or less. The GSEC provides for an initial term of one year during which the contractor will carry out a geophysical survey program consisting of a technical evaluation which shall include, among others, depth to basement mapping, acquisition of at least 100 sq. km of onshore gravity survey, reprocessing and interpretation of at least 100 line kms. of onshore seismic lines, integrated geophysical interpretation and basin and maturation modelling with a minimum expenditure commitment of US$150,000. The GSEC may be renewed for a like period under a secondary program comprising of the acquisition, processing and interpretation of a minimum 250 line kms. of offshore seismic data or 80 line kms. of onshore seismic data or the drilling of one stratigraphic well to reach at least the top of the target mapped structure with a minimum expenditure commitment of US$150,000. The contract area was formerly covered under GSEC No. 61 with Ampolex of Australia as the Operator and APMC, Petrofields and Trans-Asia as the Philippine partners. The Villaba-1 well, drilled under GSEC No. 61, discovered substantial gas in offshore Leyte. APMC owns 46.60% interest in GSEC No. 93 while Petrofields and Trans-Asia, respectively, own 20.06% and 33.34% interest. A similar but separate report has been filed with the Securities and Exchange Commission pursuant to its rules. Very truly yours, ALCORN PETROLEUM AND MINERALS CORPORATION by: (SGD.) MARIO M. USON VP Legal & Assistant Corporate Secretary