CONSERVATIVE ESTIMATE OF THE VOLUME OF MAGNETITE SAND EXTRACTED IN CAOAYAN AND SAN VICENTE

Prepared by DEFEND ILOCOS AGAINST MINING PLUNDER June 18, 2013

1. Computation is based on MGB Reports from the separate site inspection conducted on January and May this year. SAN SEBASTIAN, SAN VICENTE Sitio Mindoro (An Bang) Sitio Quinabarangbangan (Hong Ze) (Yinyi) Sitio Nagtupacan (Hong Ze) (Sitio Namnama, Tamorong, Sta. catalina) SEIZED AT PORT COMPLEX OF ILOCOS NORTE MINING CO.INC. @ Badoc, Ilocos Norte from San Sebastian, San Vicente 800 cubic meters 1350 cubic meters 450 cubic meters 2700 cubic meters

3000 cubic meters

TOTAL OF MAGNETITE CONCENTRATES (ESTIMATED) = 8300 cubic meters (2527 metric tons) ESTIMATED REVENUE = P 415,000.00 (@P50.00/cubic meter) MARKET VALUE (as of June 2013 US$ 322/ton) = US$ 813, 694.00 2. Computation based on recorded/reported transport of magnetite concentrates from the affected residents and monitored by anti-mining groups in the province. 10 truckloads daily in October 2012 (san vicente) = 30 truckloads daily in November up to 2nd week of December (Caoayan/San Vicente) = 10 truckloads daily in January 2013 (caoayan) = 10-15 truckloads daily in FebruaryMarch 2013 (San Vicente) = 8-10 truckloads daily in April-early June 2013 (San Vicente/Caoayan) = 260 (@ 26 working days) 1200 (@ 40 working days) 260 (@ 26 working days) 520-780 (@ 52 working days) An average of 650 truckloads 480-600 (@ 60 working days) An average of 540 truckloads

From October 2012-early June 2013, a total of 2910 truckloads of magnetite concentrates have been transported from Caoayan and San Vicente to Salomague Port in Cabugao or the Skymark Facility in Currimao, Ilocos Norte. The type of trucks used to haul the concentrates which typically loads 12-16 tons of materials (an average of 14 metric tons). According to OIC-ENMRO Raymond Sinay, the revenue is P50.00/cubic meters of magnetite concentrates. TOTAL MAGNETITE CONCENTRATES TRANSPORTED (ESTIMATED): 2910 x 14 metric tons or 40, 740 tons of magnetite concentrate (133, 790 cubic meters) AVERAGE MARKET VALUE (as of June 2013 US$ 322/metric ton) = US$ 13.12M ESTIMATED REVENUE: P 6.69 M (@P50.00/cubic meters) 3. Volume of extracted magnetite sand and revenue from San Vicente. Figures are from the Order of Payments issued by the Provincial Environment and Natural Resources Management Office. a. December 18, 2012 b. April 2, 2013 c. May 7, 2013 P250, 000. 00 paid by Mr. Louis Santos/Wellresource Mining Inc. for 5000 cu.m. (or P50.00/cu.m.) P125, 000.00 paid by Mr. Louis Santos for 2500 cu.m. P250, 000.00 paid by Hong Ze Mining Corporation For 5000 cu.m.

TOTAL MAGNETITE CONCENTRATES TRANSPORTED: 12, 500 cu.m. (3806 metric tons) AVERAGE MARKET VALUE (as of June 2013 US$ 322/metric ton) = US$ 1.23M ACTUAL REVENUE COLLECTED: P 625, 000