Philippine Stock Exchange

March 2, 1998 PSE CIRCULAR FOR BROKERS NO. 257-98 February 27, 1998 PHILIPPINE STOCK EXCHANGE Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City, Metro Manila Attention : Ms . Ma . Isabel T . Garcia Listing Department Madam : In compliance with the Continuing Disclosure Requirements of the Exchange, we report that at a special meeting of the Board of Directors of Baguio Gold Holdings Corporation held earlier today, the Board resolved to amend the existing resolutions thereof relating to the increase in the authorized capital stock of the Corporation from Two Hundred Million Pesos (P200,000,000) to Four Billion Pesos (P4,000,000,000), to provide that the increased authorized capital stock of Four Billion Pesos shall be divided into Two Billion Eight Hundred Million (2,800.000,000) common shares and One Billion Two Hundred Million (1,200,000,000) preferred shares, all with par value of One Peso (P1.00) per share. The Board further resolved to submit the foregoing amendment for the approval of the stockholders at a special meeting to be held on April 13, 1998 and fixed March 13, 1998 as the record date for the purpose of determining the stockholders who shall be entitled to notice of and to vote at the same meeting. LLjur Very truly yours, (SGD.) GEMMA M. SANTOS Corporate Secretary