February 21, 2000
LETTER TO SHAREHOLDERS NEWPORT BEACH, CA. February 21, 2000 - FENWAY INTERNATIONAL INC. (FWIN-OTC BB)
Fenway International Inc. has been focusing its efforts on concluding the necessary certificate applications from various Philippine Government Regulatory Authorities in preparation for the Palawan Cement Project (PCP) construction program. The certificates currently under application are:
Each of the three certifications must be completed in support of the next listed. An intense four month field program was conducted by NCIP staff and consultants, with support from Fenway as required, to thoroughly inform all indigenous people within the PCP area of influence about the operation, effects and economics of the PCP in their area. An independent survey conducted by the NCIP with nearly 100% of the indigenous people of the region obtained over 80% approval for their "Prior Informed Consent". Accordingly, February 23, 2000 is set for the official signing of the Memorandum of Agreement amongst Palcan Mining Corporation (Fenway's subsidiary), The Federation of Tribal Chieftains of Sofronio Espanola and Quezon Municipalities, Palawan, and the NCIP. Fenway management is eager to participate in the follow-up Ceremonial Signing in March on a date and local site chosen by Tribal leaders to celebrate the MOA signing. Fenway staff, with assistance from its Philippine partners is actively preparing the completed final form of application for the MPSA and ECC. Approvals for each are expected in the relatively near future.
In making both the certification and financing programs achievable, Fenway management felt it necessary to remain silent regarding its activities due to its concern for undue pressure and intimidation on indigenous people, Government employees, financing agencies and Fenway's prospective cement buyers. To the chagrin of management and shareholders alike, the Company's share price has fallen during this period of silence. However, renewed stock market interest is expected when the pertinent certificates are officially signed thus giving investors greater confidence that Fenway's Philippine cement mega projects will proceed through construction and operation. With improving price levels in the market, attention can then be given to winding up Fenway Resources Ltd. and exchanging Resources share certificates for International certificates. At that time, an application for a full market listing will be initiated.
Krupp-Polysius, German cement machinery manufacturer, and Bilfinger and Berger, German based construction/engineering contractor, continue in support of Fenway's PCP bank loan and German export credit in the amount of US $260,000,000. Debt financing will be finalized following issuance of the ECC. Equity funding of US$120,000,000 will complement the debt financing and is necessary to complete construction and initiate cement production in 2002/3 at the rate of 2,500,000 tonnes per year. Equity funding discussions are focused on cooperating with cement buyers interested in long term cement supplies. Funding propositions are at the serious discussion stage but no contracts have yet been signed. Negotiations regarding these fundings remain confidential in that the prospective investors include international companies whose cement supplies in other foreign jurisdictions could be interrupted if the major international cement producers thought they would lose market share to Fenway. Pending agreements with machinery manufacturers, engineering/construction contractors, financiers and cement sales for the PCP also reference a parallel program for the company's other large cement project near Guihulgnan, Negros Oriental, The Negros Oriental Project is to mirror the PCP one year later.
ON BEHALF OF THE BOARD
For information contact: If you would like to contact the company directly, please call Fenway International at (888) 441-1132 or fax (604) 844-2267 or visit their website at www.fenwayintl.com.
This material was prepared by the Company. Forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is Information only and is not an offer or solicitation to buy or sell securities.
The NASD and other regulatory bodies have neither approved nor disapproved the information disclosed herein.
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