MINERAL PRODuCT:ON SHAR:NG AGREEMENT :X 20!0腝 No. 349腝 This MINERAL PRODUCTiON SHARING AGREEMENT is made and entered into in Quezon city, Philippines, this day of by and bet芢荭een: THE REPUBLIC OF THE PHILIPP|NES, herein referred to as the GOVERNMENT, represented in this act by the Acting secretary of the Department of Environment and Natural Resources, with office at the Department of Environment and Natural Resources Building, Visayas Avenue, Diliman, Quezon City and CZARSTONE MINING CORPORATION, hereinafter referred to as the CONTRACTOR, a corporation duly organized and existing under the laws of the Republic of the Philippines, with office at 353 San Jose Street, Dumingag, Zamboanga del Sur and represented in this act by its President, Francisco E. Real, as authorized by its Board of Directors (please refer to ANNEX "A") WITNESSETH: WHEREAS, the '1987 Constitution of the Republic of the Philippines provides in Article Xll, Section 2 thereof that all lands of the public domain, waters, minerals, coal, petroleum and other natural resources are owned by the State and that their exploration, development and utilization shall be under the full control and supervision of the State; WHEREAS, the Constitution further provides that the State may directly undertake such activities, or it may enter into a Co-Production, Joint Venture, or Mineral Production Sharing Agreement with Filipino citizens, or cooperatives, padnerships, corporations or associations at least sixty per centum of whose capitalization is owned by such citizens; WHEREAS, pursuant to Republic Act No. 7942, othenitrise known as "The Philippine Mining Act of 1995," which took effect on 09 April 1995, the Secretary of the Department of Environment and Natural Resources is authorized to enter into Mineral Production Sharing Agreements in furtherance of the objectives of the Government and the Constitution to bolster the national economy through sustainable and systematic development and utilization of mineral lands; WHEREAS, the Government desires to avail itself of the financial resources, technical competence and skill, which the Contractor is capable of applying to the mining operations of the project contemplated herein; 9 ||||||||||||||||||||||||||||||||||||||| SENR028325 WHEREAS, the Contractor desires to join and assist the Government in the initial rational exploration and possible development and utilization for commercial purposes of iron, gold, silver, copper and other associated mineral deposlts existing in the Contract Area; WHEREAS, the Contractor has access to all the financing, technical competence, technology and environmental management skills required to promptly and effectively carry out the objectives of this Agreement; WHEREAS, the Deed of Assignment dated May 16, 2005 was executed by and between Juan R. Carillo and the Contractor, wherein the former transfers unto the latter the then application for Exploration Permit No. 0048-lX; WHEREAS, another Deed of Assignment dated May 16, 2005 was executed by and between Francisco E. Real and the Contractor, wherein the former transfers unto the latter the then application for Exploration Permit No. 0050-lX; WHEREAS, the aforesaid applications for Exploration Permit were granted on December 23,2009 and March 15, 2010 to Messrs. Juan R. Carillo and Francisco E. Real, respectively, denominated as Exploration Permit Nos. 006-09-lX and 007- 10-tX; WHEREAS, the Addenda to the May 16, 2005 Deeds of Assignment were executed on May 13,2010 by and among Messrs. Juan R. Carillo and Francisco E. Real and the Contractor; WHEREAS, the Contractor has applied for the conversion of said Exploration Permits to a Mineral Production Sharing Agreement on June 02,2010, pursuant to the provisions of the pertinent implementing rules and regulations; WHEREAS, the assignment of Exploration Permit Nos. 006-09-lX and 007-1O-lX to the Contractor was approved on June 24,2010 by the Mines and Geosciences Bureau; NOW, THEREFORE, for and in consideration of the foregoing premises, the mutual covenants, terms and conditions hereinafter set forth, it is hereby stipulated and agreed as follows: SECTION I SCOPE 1.1 . This Agreement is a Mineral Production Sharing Agreement entered into pursuant to the provisions of the Act and its implementing rules and regulations. The primary purpose of this Agreement is to provide for the rational exploration, development and commercial utilization of iron, gold, silver, copper and other assoclaled mineral deposlfs existing within the Contract Area, with all necessary services, technology and financing to be furnished or arranged by the Contractor in accordance with the provisions of thls Agreement. The Contractor shall not, by virtue of this Agreement, acquire any title over the ConhacVMining Area without prejudice to the acquisition by the Contractor of the land/surface rights through any mode of acquisition provided for by law. 3'{eJ!hlbbn DEPAnYTadTOF EivliOl*r1T 9 2 ||||||||||||||||||||||||||||||||||||||||||| SENR028325 1.2. The Contractor shall undertake and execute, for and on behalf of the Government, responsible mining operations in accordance with the provisions of this Agreement, and is hereby constituted and appointed, for the purpose of this Agreement, as the exclusive entity to conduct mining operations in the Contract Area. 1.3. The contractor shall assume all the exploration risk such that if no minerals in commercial quantity are developed and produced, it will not be entifled to reimbursement. 1.4. During the term of this Agreement, the total value of production and sale of minerals derived from the mining operations contemplated herein shall be accounted for and divided between the Government and the Contractor in accordance with Section Vlll hereof. SECTION II DEFINITIONS As used in this Agreement, the following words and terms, whether singular or plural, shall have the following respective meaning: 2.1 . Act refers to Republic Act No. 7942, othenryise known as the,,philippine Mining Act of 1995." 2.2. Aqreement means this Mineral Production Sharing Agreement. 2.3. Associated Minerals mean other ores/minerals, which occur together with the principal ore/mineral. 2.4. Banqko Sentral means Bangko Sentral ng Pilipinas. 2.5. Budqet means an estimate of expenditures to be made by Contractor in mining operations contemplated hereunder to accomplish the Work program for each particular period. 2.6. Bureau means Mines and Geosciences Bureau. 2.7. Calendar Year or Year means a period of twelve (12) consecutive months starting with the first day of January and ending on December 31, while "Calendar Quarter" means a period of three consecutive months with the first calendar quarter starting with the first day of January. 2.8. Commercial Production means the production of sufficient quantity of minerals to sustain economic viability of mining operations reckoned from the date of commercial operation as declared by the Contractor or as stated in the feasibility study, whichever comes first. 2.9. constitution or Philippine constitution means the 1g87 constitution of the Republic of the Philippines adopted by the Constitutional Convention of 19g6 on October 15, 1986 and ratified by the People of the Republic of the Ph腡ippines on February 2,1987 9 3 |||||||||||||||||||||||||||||||||||||||||||||||| SENR028325 2.10. Contract Area means the area onshore or offshore delineated under the Mineral Production Sharing Agreement subject to the relinquishment obligations of the Contraclor and properly defined by latitude and longitude or bearing and distance. 2.1 1. Contract Year means a period of twelve (12) consecutive months counted from the Effective Date of this Agreement or from the anniversary of such Effective Date. 2.12. Contractor means Czarstone Mining Corporation, or its assignee(s) of interest under this Agreement: Provided, That the assignment of any of such interest is accomplished pursuant to the pertinent provisions of the implementing rules and regulations of the Act. 2.13. Declaration of Mining Proiect Feasibilitv means a document proclaiming the presence of minerals in a specific site, which are recoverable by socially acceptable, environmentally safe and economically sound methods specified in the Project Feasibility Study. 2.14. Department or DENR means the Department of Environment and Natural Resou rces. l- 2.15. Director means the Director of Mines and Geosciences Bureau. 2.16. Effective Date means the date of execution of this Agreement by the Contractor and by the Secretary on behalf of the Government. 2.17. Environment means all facets of man's surroundings: physical, ecological, aesthetic, cultural, economic, historic, institutional and social. 2.1 B. Exploration means searching or prospecting for mineral resources by geological, geophysical and geochemical surveys, remote sensing, test pitting, trenching, drilling, shaft sinking, tunneling or any other means for the purpose of determining the existence, extent, quality and quantity of mineral resources and the feasibility of mining them for profit. 2.19. Exploration Period shall mean the period from the Effective Date of this Agreement, which shall be for two (2) years, renewable for like periods but not to exceed a total term of six (6) years for nonmetallic minerals and eight (8) years for metallic minerals, subject to the pertinent provisions of the implementing rules and regulations of the Act. 2.20. Force Maieure means acts or circumstances beyond the reasonable control of the Contractor including, but not limited to war, rebellion, insurrection, riots, civil disturbances, blockade, sabotage, embargo, strike, lockout, any dispute with surface owners and other labor disputes, epidemics, earthquake, storm, flood or other adverse weather conditions, explosion, fire, adverse action by the Government or by any of its instrumentality or subdivision thereof, act of God or any public enemy and any cause as herein described over which the affected party has no reasonable control. 0€PfrrErl oF axriorl.N, 蝖腡蝖 蝖蝖蝖 蝖跲蝛 %腡 4 SENR028325 芈芅 2.21. Foreiqn Exchanqe means any currency other than the currency of 腀 Republic of the Philippines acceptable to the Government and 芈芅 Contractor. 2.22. Government means the Government of the Republic of the philippines or any of its agencies and instrumentalities. 2.23. Gross output means the actual market value of the minerals or mineral products from each mine or mineral land operated as a separate entity, without any deduction for mining, processing, refining, transporting, handling, marketing or any other expenses: provided, That ifthe minerals or mineral products are sold or consigned abroad by the contractor under C.l.F. terms, the actual cost of ocean freight and insurance shall be deducted: Provided further, That in the case of mineral concentrates which are not traded in commodity exchanges in the philippines or abroad such as copper concentrate, the actual market value shall be the world price quotation of the refined mineral products contained thereof prevailing in the said commodity exchanges, after deducting the smelting, refining, treatment, insurance, transportation and other charges incurred in the process of converting mineral concentrates into refined metal traded in those 艨 commodity exchanges. 艩 2.24. Mine Development refers to work undertaken to prepare an ore body or a 腁 mineral deposit for mining, including the construction of necessary infrastructure and related facilities. 2.25. Minerals mean all naturally occurring inorganic substances in solid, liquid, gas or any intermediate state excluding energy materials such as coal, petroleum, natural gas, radioactive materials and geothermal energy. 2.26. Mineral Products mean materials derived from mineral ores/rocks and prepared into marketable state by metallurgical processes which include beneficiation, cyanidation, leaching, smelting, calcination and other similar processes. 2.27. Minino Area means that portion of the Contract Area identified by the Contractor as defined and delineated in a Survey Plan duly approved by the Director/Regional Director concerned for purposes of development and/or utilization and sites for suppo( facilities. 2.28. Mininq Operations means mining activities involving exploration, feasibility study, environmental impact assessment, development, utilization, mineral processing and mine rehabilitation. 2.29. Notice means notice in writing, telex or telecopy (authenticated by answer back or confirmation received) addressed or sent as provided in Section 16.2 of this Agreement. 2.30. Ore means naturally occurring substance or material from which a mineral or element can be mined and/or processed for profit. 2.31. Pollution means any alteration of the physical, chemical and/or biological properties of any water, air and/or land resources of the Philippines, or any 莏 OEPARTMEXI OI EIi\,1aOXiIENT A{DUTURAIAE!oUncEE 5 illlilfliltilllililtililliltilillltillliltiiilililililiiltil sENR028325 discharge thereto of any liquid, gaseous or solid wastes or any production of unnecessary noise or any emission of objectionable odor, as'will or is likely 'to create or render such water, air, and land resources harmful, detrimental or injurious to pubric health, safety or welfare or which will adveisely affect their utilization for domestic, commercial, industrial, agricultural, recieational or other legitimate purposes. 2.32. secretary means the Secretary of the Department of Environment and Natural Resources. 2.33. State means the Republic of the philippines. 2.34. work Proqram means a document which presents the pran of major mining operations and the corresponding expenditures of the contractor in its contract Area during a given period of time, incruding the pran and expenditures for development of host and neighboring communities and of local geoscience and mining technorogy, as submitted and approved in accordance with the implementing rules and regulations of the Aci. SECTION III TERM OF AGREEMENT 3.'1. This Agreement shall have a term of twenty-five (25) years from Effective Date, and may be renewed thereafter for another term not exceeding twenty- five (25) years. The renewar of this Agreement, as weil as the chinges in the terms and conditions thereof, shafl be upon mutuar consent bly the parties. ln the event the Government decides to allow mining operations thereafter by other contractor, this must be through comp&itive public bidding. After due publication of notice, the contractoishall have the right to equal the highest bid upon reimbursement of all reasonable expenses 6f the highest bidder. SECTION IV CONTRACT AREA 4.1 . Size, shape, and Location of contract Area - This Agreement covers a 9-o{r".-t lrga of approximately Two Thousand Six HundLd Thirty_Four and 8967/10,000 (2,634.8967) hectares, situated in the Munrcipatitus Lr ntiasatip and siayan, Provinces of Zambanga der sur and Zamboanga der Norte, respectively, and bounded by the foilowing geographicai coordinates (please refer to ANNEX "8,, - 1:50,OO0 scale Location lilap/Sketch plan): Parcel I Corner Latitude Longitude 艐 8膋 00'3000" 123膋 14'0000" 艑 8膋01'00 oo" 123膋 14'0000" 艒 8膋 01'00 oo" 123膋 13'4500" 艓 8膋01'3000" 123膋 13'3000" 膋 镩 譧陭 苠近 鉷 鷮腡 顕 6 ' 蝖 腡 腡 腡|腡 蝖 !!鷴 邢腸 艔 8膋02'0000" 123膋 13'3000" 艕 8膋02'1500" 123膋 13'00 oo" 艖 8膋 02'000o" 123膋 12'3000" 艗 8膋 01'4000" 123膋 12'3000" 艘 8膋02'3000" 123膋 12'0000" 腝艏 8膋 02'3000'' 123膋 14'0000" 腝艐 8膋 02'000o" 123膋 14'0000" 腝艑 8膋02'0000" 123膋 15'000o" 腝艒 8膋 01'3000'' 123膋 15'0000" 腝艓 8膋 01'3000" 123膋 14'3000" 腝艔 8膋 01'1500" 123膋 14'3000" 腧 8膋 01'1500" 123膋 15'0000" 腝艖 8膋 00'3000" 123膋 15'0000" Parcel ll Corner Latitude Longitude 艐 8膋03'3000" 123膋 08'3000" 艑 8膋04'3000" 123膋 08'3000'' 艒 V 8膋 04'3000" 123膋 06'0000" 艓 8膋05'3000" 123膋 06'0000" 艔 8膋05'3000" 123膋 05'3000" 艕 8膋 06'3000" 123膋 05'3000" 艖 8膋06'3000'' 123膋 06'3000" 艗 8膋 06'00 oo" 123膋 06'3000" 艘 8膋 06'0000" 123膋 07'0000" 腨 8膋05'00 oo'' 123膋 07'0000" 腵 8膋05'0000" 123膋 09'3000" 腝艑 8膋 04'3000" 123膋 09'3000" 腝艒 8膋 04'3000" 123膋 10'0000" 觰 8膋03'3000" 123膋 10'o00o" SECT:ON V EXPLORATION PERIOD 5.1 . Timetable for Exploration - The contractor shall commence Exploration activities not later than three (3) months after the Effective o"te t"i'a peii"o of two (2) years, renewable for like periods but not to exceed a total term of six (6) years for nonmetaflic minerars and eight (B) years roi r"iurri. minerals, subject to annuar review and approvar oy tne Director in accordance with the implementing rules and regulations oi the Act. The contractor shail submit the proof of consurtation with the majority of the sanggunian concerned in the form of Resorution or certification 'prioi to in" implementation of the Exproration work program as prescribed under the implementing rules and regulations of the Act. The contractor shall arso submit a community Deveropment program to the Regional office concerned within six (6) months upon regiskaiion of this Q Y 7 荃 |||||||||||||||||||||||||||||||||||||||||||||||||||||||| SENR028325 Agreement as prescribed under the imprementing rules and regurations of the Act. 5.2. Renewal of Exploration Period - ln case the contractor opts for a renewal of its Exploration Period, it shall file prior to the expiration thereof, a renewal application in the Mines and Geosciences Bureau central office, accompanied by the mandatory requirements stipulated in the implementing rules and regulations of the Act. The Director may grant the renewal of the Exploration Period on condition that the conirictor has substantia[y complied with the terms and conditions of the Agreement. provided, That with or without the filing of the renewal application, the Exploration period shall, upon its expiration, automatically shift to the next two (2) _ year term, and so on. ln cases where further exproration is warranted beyond the six (6) - or eight (B)-year period and on condition that the coniractor has substantiifly implemented the Exploration and Environmental work programs as verified by the Bureau, the Director may further grant renewal oi the Exploration Period: Provided, That the Contractor shall be required to set up a performance surety equivalent to the expenditure requirement of the Exploration and Environmental Work programs. V 5.3. work Programs and Budgets - The contractor shall skicfly comply with the approved Exploration and Environmental work programs together with their corresponding Budgets (please refer to ANNEXES ,,C,, and ,,D,,). The amount to be spent by the Contractor in conducting Exploration activities under the terms of this Agreement during the Exploration period shall be in the aggregate of not less than that specified for each of the Contract Years, as follows: For the Exploration Work Program: 1st Contract Year : PhP l,300,00000 2nd Conkact Year PhP 3,425,00000 腝 Total ' PhP 4,725,00000 PhP 535,00000 ln the event of renewal of the Exploration period, the amount to be spent every year shall first be agreed upon by the parties. ln the event of termination of this Agreement, the Contractor shall only be obliged to expend the pro-rata amount for the period of such Contract year prior to termination. lf during any Contract Year, the Conkactor should expend more than the amount to be expended as provided above, the excess may be subkacted from the amount required to be expended by the Contractor during the succeeding Contract Years, and should the Contractor, due to unforeseen circumstances or with the consent of the Government, expend less during a year, then the deficiency shall be applied to the amount to be expended during the succeeding Contract Years. 5.4. Relinquishment of rotal/Portion of the contract Area - During the Exploration Period, the Contractor may relinquish totally or partially the original Contract Area. After the Exploration Period and prior to or upon approval of a 0腂 T 荍 鳡 豸苜 8  %腡 鉉 蝛 蝖 蝖腡 跲 蝖腡 蝖 SENR028325 project Declaration of Mining Feasibility by the Director, the contractor shall finally relinquish any portion of the contract Area not necessary ror minrng operations and not covered by any Decraration of Mining project Feasibirity. 5.5. Final Mining Area - The Director may allow the contractor to hold more than one (1) final Mining Area subject to the maximum limits set under the implementing rules and regurations of the Act: provided trat eacrr tnat Mining Area shafi be covered by a Decraration of Mining erolect reiiiuirity. 5.6. Declaration of Mining project Feasibility - wlthin the term of the Exploration Period, the contractor shail fire in the Regionar office ihu Declaration of Mining project Feasibility of tie contract "on""rn"J,- Area supported by project Feasibirity Study, Area/finai triining Three (3)-year Deveropment and Construction or Commercial Operation Work 'program, geologic report, an application for survey and the pertinen-t "o.,,ft.t" compliance certificate, among other appricabre Environmental contractor requirements. Fairure of the to submit the Declaration of Mining project Feasibitity durinj the Exploration Period shall be considered i substantial breich of this Agreement. 5.7. Survey of the contract Area - The contractor shall cause the survey of the V perimeter of the conkact Area/final Mining Area through an application for survey, complete with requirements, filed in the Regional offiie concerned simultaneous with the submission of the Declaration of Mining Feasibility. survey returns shall be submitted to the Regional Director c6ncerned for approval within one ('l) year from receipt of the order of survey complete with the mandatory requirements stated in the imprementing rures and regulations of the Act. 5.8. Reporting a. During the Exploration Period, the contractor shail submit to the Director, through the Regional Director concerned, quarterly and annual accomplishment reports under oath on a[ activities conducted in the Contract Area from the Effective Date of this Agreement. The quarterly report shall be submitted not later than fifteen (15) days at the end of each Calendar Quarter while the annual accomplishment report shall be submitted not later than thirty (30) days from the end of each Calendar Year. Such information shall include detailed financial expenditures, raw and processed geological, geochemical, geophysical and radiomehic data plotted on a map at a minimum 1:50,000 scale, copies of originals of assay results, duplicated samples, field data, copies of originals from drilling reports, maps, environmental work program implementation and detailed expenditures showing discrepancies/ devia ons with approved exploration and environmental plans and budgets as well as all other information of any kind collected during the exploration activities. All information submitted to the Bureau shall be subject to the confidentiality clause of this Agreement. b. Final Report - The Contractor shall submit to the Director, through the Regional Director concerned, a final report under oath upon the expiration of the Exploration Period which shall be in the form and substance comparable to published professional reports of 9 9 蝛腡蝖蝛蝖蝖蝖腡蝖腡腡 SENR028325 respectable international institutions and shall incorporate all the findings in the contract Area incruding rocation of sampres, assays, chemical anarysis, and assessment of minerar potentiars togetner with a geologic map of 1:50,000 scale at the minimum showingihe results of the exproration. such report shail arso incruie detaired expenditures incurred during the Exploration period. ln case of diamond drilling, the Contractor shall, upon request of the Director/Regionar Director concerned, submit io the Regionar office concerned a quarter_of the core samples, which shall beleposited in the Regional Office Core Library for safekeeping and reference. c. Relinquishment Report - The contractor shail submit a separate relinquishment report with a detailed geologic report of the relinquished area accompanied by maps at a scale of 1:50.000 and results of analyses and detailed expenditures, among others. SECTION VI DEVELOPMENT AND CONSTRUCTION PERIOD 6.1. Timetable - The contractor shall complete the development of the mine including the construction of production facilities within thirty-six (36) months from the submission and approvar of the Decraration of Mining project Feasibility, subject to such extension based on justifiabre ,"u.on-s ,. ih" Director may approve, upon recommendation of the Regionar Director concerned. 6.2. Reporting a. Annual - The Conkactor shail submit, within sixty (60) days after December 31 of each year, to the Director, through the Hegional Director concerned, an annual report, which states the major activities, achievements and detailed expenditures during the year covered, including maps, assays, rock and mineral analyses'and geological and environmental progress reports during the Development and Construction period. b. Final Report - Within six (6) months from the completion of the development and construction activities, the Contractor shall submit a final report to the Director, through the Regional Director concerned. Such report shall integrate all information in maps of appropriate scale and quality, as well as in monographs or reports in accordance with international standards. SECTION VII OPERATING PERIOD 7.1 . Timetable - The Contractor shall submit, within thirty (30) days before completion of mine development and construction of production facilities, to the Director, through the Regional Director concerned, a Three-Year Commercial Operation Work Program. The Contractor shall commence 0 10 %腡蝖 跲蝖蝖蝖蝖 蝖腡蝖 SENR028325 commercial utilization immediately upon approval of the aforesaid work Program. Failure of the contractor to commence commercial production within the period shall be considered a substantial breach of the Agreement. 7.2. commercial operation work program and Budget - During the operating Period, the contractor shafi submit to the Direltor, througih the Aegionar Director concerned, work programs and Budgets covering i period of-three (3) years each, which shail be submitted not raler than thirt-y 1io) aays before the expiration of the period covered by the previous Work program.' The contractor shall conduct Mining operations and other activities for the duration of the operating period in accordance with the duly approved work Programs and corresponding Budgets. 7 .3. Expansion and Modification of Facilities - The. Contractor may make expansions, modifications, improvements, and repracements of the mining facilities and may add new facilities as the dontractor may consider necessary for the operations: provided, That such plans shall be embodied in an appropriate Work Program approved by the Director. 7.4. Reporting a. Quarterly Reports - Beginning with the first carendar euarter foilowing the commencement of the Operating period, the Contractor shall submit, within thirty (30) days after the end of each Calendar euarter, to the Director, through the Regional Director concerned, a euarterly Report stating the tonnage of production in terms of ores, concentrates, and their corresponding grades and other types of products; value, destination of sales or exports and to whom sold; terms of sales and expenditures. b. Annual Reports - During the Operating period, the Contractor shall submit within sixty (60) days from the end of each Calendar year, to the Director, through the Regional Director concerned, an Annual Report indicating in sufficient detail: b.1. The total tonnage of ore reserves, whether proven, probable, or inferred, the total tonnage of ores, kind by kind, broken down between tonnage mined, tonnages transported from the minesite and their corresponding destination, tonnages stockpiled in the mine and elsewhere in the philippinis, tonnages sold or committed for export (whether actually shipped from the Philippines or not), tonnages actually shipped from the Philippines (with full details as to purchaser, destination and terms of sale), and if known to the Contractor, . tonnag6s refined, processed or manufactured in the Philippines with full specifications as to the intermediate products, by-products or final products and of the terms at which they were disposed; b.2. Work accomplished and work in progress at the end of the year in question with respect to all the installations and facilities related to the utilization program, including the investment actually made or committed; and 9 蝖腡蝖跲蝖蝖蝖腡蝖腡蝖 SENR028325 profile,of, b.3. work force., including management and staff, stating particurarry their nationarities, and foi Firipinos, their prace of origin (i.e., barangay, town, province, region). The contractor sha, arso compry with other reporting requirements provided for in the implementing rules and regulations oi tt," - - v'-v'rrv Hrvr n""i.- sEcTtoN Vilt FISCAL REGIME 8 1. Generar principre - The fiscar regime of this Agreement shail be governed by the principle according to which the Government expects a reasonable return in economic varue for the utirization of non-renewaure minerat resources under its nationar sovereignty whire the contractor , reasonabre return on its investment with speciar account to oe "rp".t, high risk of exproration, the terms and conditions prevairing tat