PSE Circular for Brokers No. 2789-98

December 18, 1998 PSE CIRCULAR FOR BROKERS NO. 2789-98 18 December 1998 PHILIPPINE STOCK EXCHANGE, INC . PSE Centre Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace de Guia Assistant Manager Disclosure Department/Listing Group Gentlemen : Please be informed of the following actions the Board of Directors of Seafront Resources Corporation ("Corporation") made in a regular meeting held on 15 December 1998. LLphil 1. Retrenchment of Personnel The Board of Directors, after thorough deliberation, ratified the retrenchment program for personnel. Formal notices were already sent to those persons affected. Upon motion duly made and seconded, the following resolutions were approved and adopted: "RESOLVED, as it is hereby, that the Corporation regretfully ratifies the retrenchment program for its personnel as part of downsizing/rightsizing plan to counter the adverse financial impact of the current economic crisis; "RESOLVED, that the Corporation, through the Board of Directors, extends its thanks for the fruitful time, loyalty and valuable services rendered by its personnel; "RESOLVED, FINALLY, that every employee who would be affected by the retrenchment program be paid with benefits equivalent to two (2) months of salary per year of service. The following officers are either retired or retrenched effective December 31, 1998. 1. BENEDICTO L. TABIN Vice President/Treasurer 2. FLORENTINO E. SANTOS, JR. Asst. Treasurer 3. ARTURO B. MAULION AVP/Asst Corporate Secretary 4. NEOLY J. JANEO AVP/Chief Accountant Five regular rank and file employees were also retrenched. The President, MANUEL D . RECTO , shall remain as President of the Corporation until the next regular shareholders' meeting to be held in May 1999. Ms . MILAGROS V . REYES was appointed EVP/Treasurer of the Corporation effective 4 January 1999. 2. Corporate Services and Consultancy Agreement with Petrofields Corporation . "RESOLVED, as it is hereby resolved, that the Corporation sign a Corporate Services and Consultancy Agreement with Petrofields Corporation; "RESOLVED, FURTHER, that the corporate services of Petrofields include but not limited to the following: 1. general and administrative; 2. accounting; 3. legal; 4. technical; and, 5. other matters that are needed to maintain normal day-to-day operations. "RESOLVED, FINALLY, that any one (1) of the following officers be authorized to negotiate, sign, execute and deliver any and all documents to give effect to the foregoing resolutions: 1. LEONARDO B. ALEJANDRINO Chairman 2. ALFONSO S. YUCHENGCO III Director 3. MANUEL D. RECTO President The above acts of the Board of Directors were only disclosed today, 18 December 1998, because consent of the other party was obtained only this morning. Your Ms. Trisha Zamesa advised the undersigned to come up with a complete disclosure as soon as the involved parties agree. Thank you. Very truly yours, (SGD.) ATTY. ARTURO B. MAULION AVP/Asst Corporate Secretary