PSE Circular for Brokers No. 1909-98

August 17, 1998 PSE CIRCULAR FOR BROKERS NO. 1909-98 August 14, 1998 The Philippine Stock Exchange Philippine Stock Exchange Center Exchange Road, Pasig City FAX NO. 636-0809-634-5920 Attention: Surveillance and Compliance Department Gentlemen : Please be informed that this evening, Round Peak Realty & Development Corporation ("Round Peak"), through its President, Mr. Victor Yu, entered into an Agreement to Subscribe to shares of stock of Balabac Resources & Holdings Co., Inc. ("Balabac"). The Agreement to Subscribe was executed on behalf of Balabac by its President, Mr. Raymundo O. Feliciano and its Executive Vice President, Mr. Antonio Q. Sevilla. The salient features of the Agreement to Subscribe are the following: a) At the Closing, Round Peak will subscribe to five hundred thirty eight million (538,000,000) shares of the Corporation's unsubscribed shares of stock; b) At the Closing, Round Peak will also subscribe to shares comprising the increase in the authorized capital stock of Balabac from its present authorized capital stock of One Billion Pesos (1,000,000,000) to Two Billion Five Hundred Million Pesos (P2,500,000,000.00)). The increase in the authorized capital stock has already been approved by the Board of Directors and stockholders of Balabac. prLL c) As full payment for its subscriptions, Round Peak shall assign to Balabac a parcel of land located at the Coastal Road, Bacoor, Cavite consisting of two hundred ten thousand seven hundred sixty two (210,762) square meters, more or less. d) Upon subscription by Round Peak and approval of the increase in Balabac's authorized capital stock, Round Peak will be the holder of 81.52% of the total outstanding capital stock of Balabac. e) Closing will take place at such date as may be mutually agreed upon by Round Peak and Balabac, but no later than December 31, 2000. Very truly yours, (SGD.) ROLANDO F. DEL CASTILLO Corporate Secretary