BW Resource Corporation

October 13, 1999 PSE CIRCULAR FOR BROKERS NO. 2611-99 SUBJECT : BW Resource Corporation With reference to BW Resource Corporation's ("BW") negotiations for the acquisition of Best World Gaming and Entertainment Corporation (Best World), BW informed the Exchange of the following additional information on Best World: 1. Date of Incorporation : August 11, 1998 2. Nature of Business : Nationwide Computerized On-Line Bingo Bingo Filipino 3. Capital Structure : Authorized Capital Stock - 2,000,000,000.00 Subscribed Capital - 525,250,000.00 Paid-up Capital - 250,250,000.00 4. Ownership Structure : Subscribed Capital - 525,250,000.00 Name No. of Shares Amount Amount Paid on Subscription Dante T. Tan 525,049,997 525,049,997.00 250,049,997.00 Teresita U. Tan 50,000 50,000.00 50,000.00 Jose Salvador Rivera, Jr. 75,001 75,001.00 75,001.00 Jimmy Gomez 25,000 25,000.00 25,000.00 William P. Pascaran 50,000 50,000.00 50,000.00 Michelle U. Tan 1 1.00 1.00 Domingo T. Tan 1 1.00 1.00 525,250,000 525,250,000.00 250,250,000.00 5. Subsidiaries/Affiliates : Non subsidiaries 6. Products/Services, operations, recent corporate developments, projects: Please see Information Memorandum, available for reference at the PSE-Centre and PSE Plaza Libraries. 7. Board of Directors: Dante T. Tan Teresita U. Tan Michelle U. Tan William P. Pascaran Jose Salvador M. Rivera, Jr. Officers: Dante T. Tan - President/Chief Executive Officer Teresita U. Tan - Treasurer William P. Pascaran - EVP/Chief Operating Officer Raul M. Sagullo - Chief Finance Officer Victor M. Romano - Vice President for Marketing Jose Salvador M. Rivera, Jr. - Corporate Secretary 8. Financial Statements Please see attached financial statements: With respect to Atlas Fertilizer Corporation's ("FER") acquisition of AB Leisure Exponent, Inc., BW explained that: "The disclosure of Atlas Fertilizer Corporation that it had acquired the entire outstanding capital stock of AB Leisure Exponent, Inc. does not substantially affect BW's plans, programs and prospective revenues. BWRC is still negotiating for the acquisition of twenty (20) Bingo Bonanza gaming centers which are different from the six (6) Bingo Bonanza gaming centers owned by AB Leisure Exponent, Inc. The negotiations for the acquisition of these twenty (20) Bingo Bonanza gaming centers and Best World Gaming and Entertainment Corp. is going well and are in accordance with BWRC's plans in establishing a strong presence in the gaming and entertainment sectors. BWRC expects to receive good revenues from the acquisition of these businesses. For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO BALANCE SHEET July 31, 1999 ASSETS Current Assets P 3,864,.201.01 Cash on hand 138,232,304.41 Cash in bank Advances to: Officers and employees 714,564.72 Others 30,492.57 Suppliers 2,239,131.80 Accounts Receivables - Trade Ticket Sales 3,893.337.75 Terminal Fee 24.049,156.39 Cash bond 4,350.000.00 Others 162.390.00 Accounts Receivables - Non Trade Best World Resource Corporation 3,450,556.40 Motorists' House 23.600.00 PDC on hand 5,700,000.00 Total Current Assets 186.709.735.05 Investment 548.013.503 10 Property and Equipment 364,913,804.94 Due from PAGCOR 1,036,653.01 Preoperating Expenses 113,971,558.14 Other Assets 10,898,679.18 TOTAL ASSETS P 1,225,543.933.42 LIABILITIES & STOCKHOLDER'S EQUITY Current Liabilities Accounts payable P 58,565,434.45 Unclaimed Prizes Payables 937,200.00 Prize Fund Payables 3,459,000.00 Due to Pagcor 73,075,440.00 Loan payables 70,759,775.65 Retention Payables - Contractors 1433,989.12 Reservation deposits 26,360,000.01 Agents cash bond deposit - on line 12,350,000.00 Agents cash bond deposit - off line 2,250,000.00 PDC payables 4,159,275.72 Other Liabilities Withholding tax payables 580,498.10 SSS payables 385,568.30 Medicare payables 41,494.15 Pag-IBIG payables 111,462.90 Total Current Liabilities 983,469,138.40 Stockholders' Equity Capital Stock - P 1.00 par value Authorized - 500,000,000 shares Outstanding - 150,250,000 shares 150,250,000.00 Deposits for future subscription 100,000,000.00 Net Income (Loss) (8,175,204.98) Total Stockholders' Equity 242,074,795.02 TOTAL LIABILITIES & STOCKHOLDERS EQUITY P 1,225,543,933.42 Prepared by: Ely C. Saravillo Best World Gaming & Entertainment Corp. Statement of Income & Expense as of July 31, 1999 REVENUES Bingo ticket sales 20,741,200.00 Income from installed terminals 49,600.000.00 Gross income from resale items 40,817.65 Other income 113,800.00 Interest Income 52,753.96 TOTAL REVENUE 70,548,571.61 OPERATING EXPENSES Prizes 10,370,600.00 Blocktime Leasing 6,466,227.28 Launching Expenses 3,483,922.63 5% BIR Franchise tax 1,037,060.00 15% Pagcor's share 3,111,180.00 Commission expenses 703,889.00 Advertising expense 8,624,701 ;83 Brokerage charges 11,372.17 Freight charges 194,770.83 Materials & Supplies 2,684,866.88 TOTAL OPERATING EXPENSES 36,688,590.62 GENERAL & ADMINISTRATIVE EXPENSES Depreciation Expense 6,121,413.24 Amortization Expense 957,744.19 Professional fees 1,010,880.44 Compensation & benefits 5,981,409.04 Representation expenses 6,635,803.66 Taxes & licenses 2,994,197.70 Legal fees 13,390.00 Foreign consultant expenses 2,354,714.70 Interest & bank charges 9,167,984.28 Light & water 251,191.02 Transportation & travel 485,499.91 Communication 146,055.10 Dues & subscription 175,041.51 Insurance expense 612,951.94 Janitorial & security 794,351.37 Office supplies 200,567.82 Press relation expense 500,000.00 Rent expense 3,142,612.80 Repairs & maintenance 153,759.08 Gasoline 109,195.59 Donations & contributions 154,340.00 Miscellaneous expenses 72,082.58 TOTAL GENERAL & ADMINISTRATIVE EXPENSES 42,035,185.97 78,723,776.59 INCOME (LOSS) FROM OPERATION (8,175,204.98)