South Seas Natural Resources, Inc.

September 9, 1999 PSE CIRCULAR FOR BROKERS NO. 2250-99 SUBJECT : South Seas Natural Resources, Inc . During the last years, South Seas Natural Resources, Inc. ("SSO") attempted to raise additional working capital for operations, but unfortunately, the financial crisis hit the country, and the company was frustrated. It therefore, informally approached some major stockholders, as a means to protect their interest against possible company collapse, for advances pending success in increasing capital stock. As there is no pre-emptive rights as to future issuances of SSO stock, priority chance will be given to stockholders who have made cash advances against subscriptions. There will be no change in management control, since they are already in control, only an assurance that initiated policies will be pursued. The exercise will give the company a chance to continue fruitful operations. In connection with the proposed increase in authorized capital stock of the company from P200 million to P300 million, assuming due approval thereof by shareholders, it is planned to allocate the entire amount of the increase for subscription and conversion into equity at par against advances made by certain stockholders who have signified their interest to convert said advances into equity. In a meeting of the Board of Directors of SSO held on August 24, 1999, the Board resolved to offer for subscription and sale the entire P100 million increase in authorized capital stock, to stockholders who have made cash advances of at least P500,000.00, which to date remain unpaid, at par to the extent of their cash advances, rounded upwards to the nearest million pesos, payable upon subscription, in full in cash or offset against unpaid cash advance. LibLex Below is the list of stockholders including their approximate advances: June 1999 Name of Stockholder Advances per SSO Books Industrial Enterprises, Inc. 39,210,294.69 Del Sur Agro Industrial Corp. 682,127.98 Jesus S. Cabarrus 24,086,711.66 Jesus G. Cabarrus, Jr. 2,203,404.41 Jose Miguel Cabarrus 3,725,995.44 Ma. Ines Cabarrus 2,189,336.38 Ma. Cristina Cabarrus 2,198,287.19 Elizabeth LK Armstrong 10,000,000.00 Jose Marie Moraza 1,500,000.00 Antonio Moraza 500,000.00 Isabel Moraza 1,500.000.00 P 87,796,157.75 For your information. (SGD.) JOSE LUIS U. YULO President and CEO