PSE Circular for Brokers No. 2360-98

October 14, 1998 PSE CIRCULAR FOR BROKERS NO. 2360-98 October 13, 1998 Disclosure Department Listing and Disclosure Group 4/F Philippine Stock Exchange Centre PSE Center, Exchange Road Ortigas Center, Pasig City FAX No. 634-2051/6345113 Attention: Mr . Reynold P . Ong Vice-President, Listings & Disclosure Group Gentlemen : Please be informed that in the regular meeting of the Board of Directors of Bacnotan Cement Corporation held today, the Board of Directors approved the following: 1) Subject to approve by the shareholders, the creation of convertible debt instruments to be issued on a pre-emptive basis to all shareholders of record to be determined approximately 1760 million under such terms and conditions as Management may deem appropriate in the best interests of the corporation; 2) Subject approval by the shareholders, the increase in authorized capital stock of the corporation from P2.4 billion to P3.8 billion consisting of 140,000,000 shares of common stock at the per value of P10.00 per share, the increase to be implemented prior to the commencement of the Conversion Period for the aforementioned convertible debt instruments; cdlex 3) Subject to approval by the shareholders and by the Securities and Exchange Commission, the amendment of Article Eighth of the Amended Articles of Incorporation to reflect the aforesaid increase; and 4) Subject to approval by the shareholders, the renewal of the Management Contract with Philippine Investment-Management Consultants (PHINMA), Inc. for a period of five years from the start of the current fiscal year. Very truly yours, (SGD.) JUAN J. DIAZ Corporate Secretary