June 12, 2000
LETTER TO SHAREHOLDERS
Newport Beach, CA - June 12, 2000 - Two Philippine Government certificate approvals to be issued to Fenway's Philippine joint venture partners are all that remain between Fenway and its ability to proceed in the construction and operation of the Palawan Cement Project (PCP) proposed 2,500,000 tonne per year cement plant in the Municipality of Sofronio Espaņola, Palawan.
The immediate certificate to be acquired is the Mineral Production Sharing Agreement (MPSA) issued by the Bureau of Mines and Geosciences (BMG). This is a contract between the Government and the operating companies, Palcan Mining Corporation and Palcan Cement Corporation, to abide by all Philippine Mining Regulations, operate in a professional miner-like manner and pay the prescribed royalties and taxes. To complete the MPSA application to the BMG, Fenway and its partners must obtain endorsement from the Palawan Council for Sustainable Development (PCSD). The PCSD previously endorsed the issuance of the Environmental Compliance Certificate (ECC). Fenway and its partners have prepared all the MPSA application documentation for the PCSD for their consideration and approval. In support of the applications, Local Government Units (LGUs) have presented Fenway with their individual written endorsements for the Palawan Cement Project. These agencies includes the Community Environment and Natural Resources Office (CENRO), the Provincial Environment and Natural Resources Office (PENRO) and its sector-like Forestry Management System (FMS), Environmental Management Protection Area System (EMPAS), the Land Management System (LMS) and the Ecosystems Research and Development Services (ERDS). Specifically, they authorized a "Status and Clearance to Conduct Mining" letter pursuant to their area of responsibility within Palcan Mining's MPSA applied area.
On receipt of the PCSD endorsement for construction and operation of the PCP, Fenway's Philippine partners will immediately present the final application for the MPSA to the BMG. On receipt of the MPSA it will be added to other professional reports and documentation, most notably the Environmental Impact Assessment and Report, in application for the final permit, the Environmental Compliance Certificate (ECC).
Fenway has spent eight (8) years and more than US$3,500,000 to obtain professional qualifying engineering reports and prepare appropriate documentation for the MPSA and ECC applications. Company management is positive in its expectation that both permits can be granted within the next several weeks to coincide with possible engineering-construction funding programs.
ON BEHALF OF THE BOARD
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.
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