Seafront Resources Corporation Decrease in Authorized Capital Stock

November 25, 1998 PSE CIRCULAR FOR BROKERS NO. 2660-98 SUBJECT : Seafront Resources Corporation Decrease in Authorized Capital Stock Further to Circular No. 2354-98 dated October 12, 1998, please be informed that in line with the approval by the SEC of a decrease in authorized capital stock of SEAFRONT RESOURCES CORPORATION (the "Company") , a corresponding reduction in the issued capital stock from P575.00 Million or 575,000,000 shares to P163.00 Million or 163,000,000 shares at a par value of P1.00 per share, shall be applied proportionately to all stockholders effective October 5, 1998 . Attached herewith is a copy of the letter of the company to its existing shareholders setting forth the procedures to follow for replacing old stock certificates with new certificates which shall reflect the shareholders' reduced holdings. According to the Company, the replacement of the stock certificates started on October 12, 1998 and will be for an indefinite period of time until its Board of Directors mandates a new policy . As advised by the Philippine Central Depository, Inc., effective November 24, 1998, the brokers' holdings and outstanding trades of Seafront will be adjusted to reflect the said reduction. Cdphil The consequential delisting of the pertinent listed shares shall be reflected in the Exchange's registry and computer systems after the approval of the same by the Board of Governors. For your information and guidance. (SGD.) JOSE LUIS U. YULO, JR. President and CEO Dear Stockholder, On February 11, 1998, your Board of Directors approved a quasi-reorganization plan for Seafront Resources Corporation (Company). The plan provides for the decrease of the Company's authorized capital stock from P800.00 Million to P388.00 Million or 800,000,00 shares to 388,000,00 shares at a par value of P1.00 per share and corresponding reduction in issued capital stock from P575.00 Million to P163.00 Million or 575,000,000 shares to 163,000,000 shares at a par value of P1.00 per share to be applied proportionately to all stockholders. The reduction surplus resulting from the foregoing decrease in capital stock accounts will be used to offset the deficit of P411,603,070 posted by the Company as at December 31, 1997. On May 6, 1998, the stockholders approved the abovementioned quasi-reorganization plan during the regular annual stockholders' meeting held on that date. On October 5, 1998, the Securities an Exchange Commission found the plan in order and approved the same. Accordingly, with the quasi-reorganization plan duly approved, you are hereby requested to return your old stock certificate/s for replacement to RCBC-Stock Transfer Department, RCBC Building, Senator Gil J. Puyat Ave., Makati City. The new stock certificates to be issued shall reflect, the reduced new authorized capital stock and the corresponding reduced number of shares. LLpr Should you fail to return the old stock certificate/s, the Transfer Agent is authorized to proportionately reduce your number of shares. For facility, hereunder is a sample computation: 100,000 shares the original number of shares in the old certificate x 0.2834782 (163,000,000/575,000,00) 28,347 the new number of shares which will be credited to your account/stamped on the new stock certificate. Thank you. Very truly yours, (SGD.) ATTY. FLORENTINO M. HERRERA III Corporate Secretary