PSE Circular for Brokers No. 078-99

January 19, 1999 PSE CIRCULAR FOR BROKERS NO. 078-99 January 18, 1999 PHILIPPINE STOCK EXCHANGE 4/F Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention: Disclosure Department Listings and Disclosure Group RE : Disclosure Statement Gentlemen: Pursuant to existing rules and regulations on the full disclosure of material events that are or may be of interest to the investing public, we hereby disclose the following: Alcorn Petroleum and Minerals Corporation (APMC), together with its partners in Service Contract #14 (Nido-Matinloc-Linapacan/Galoc Area) executed a Consolidated Deed of Assignments and Assumptions ("D/A & A") covering a net undivided thirty five percent (35%) Participating Interest in the Service Contract in favor of Socdet Production Pty. Ltd. of Australia and The Philodrill Corporation in consideration of the fulfillment by Socdet and its assignee, Philodrill, of the Earning Obligations under the Farm-in Agreement dated September 26, 1996 which required Socdet/Philodrill to conduct a 3-D seismic program over the Contract Area, process and interpret the data and furnish the SC14 partners with copies of the processed data and the interpretation thereof. The D/A & A was signed by the parties on January 15, 1999 at Makati City and the same was submitted to the DOE for approval pursuant to the terms of the Service Contract. Socdet (and its assignee, Philodrill) retains an option to earn an additional twenty five percent (25%) Participating interest by drilling a well in the Contract Area at its sole cost and expense on or before October 30, 1999. cdpr APMC retains an undivided Participating Interest of 4.810% after the assignment made to Socdet/Philodrill. 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