PSE Circular for Brokers No. 2328-98

October 8, 1998 PSE CIRCULAR FOR BROKERS NO. 2328-98 October 7, 1998 Philippine Stock Exchange Phil. Stock Exchange Centre Exchange Road, Pasig City FAX NO. 636-0809-634-5920 RE : Postponement of Annual Meeting of Stockholders Ladies/Gentlemen : Please be informed that during the regular meeting of the Board of Directors of Balabac Resources & Holdings Co., Inc. which has just concluded: 1. The Board of Directors approved a postponement of the annual meeting of stockholders from November 10, 1998 to January 26, 1999, because of the inability to finish proxy solicitation materials and to have this approved by the Securities and Exchange Commission and mailed to its stockholders within the prescribed period. cdlex 2. The Board of Directors elected Atty. Cecilia Pesayco and Mr. Victor Yu as directors, to fill vacancies on the Board. 3. The Board of Directors ratified the Agreement to Subscribe executed by the Corporation and Round Peak Realty & Development Corporation under the terms of which Round Peak would acquire an 81.52% equity interest in the Corporation with an aggregate par value of P2,038,000,000 by subscribing to all of the Corporation's unissued shares and subscribing to shares comprising an increase in the Corporation's authorized capital stock from P1 Billion to P2.5 Billion. Please be further informed that one of the vacancies on the Board that was filled was created by the resignation of the undersigned as a member of the Board of Directors, effective October 5, 1998. Very truly yours, (SGD.) ROLANDO F. DEL CASTILLO Corporate Secretary