M!NERAL PRODUCTloN S腡 ARING ACREEMENT No 313-2010腝V腡 l ThiS MINERAL PRODUCTloN SHARING AGREEMENT in Quezon City, phitippines, this entered into day 荨腸 of ]T20腵 bet\yeenl by and THE REPUBLIC OF THE pHlLlpptNES, herern referred to as the GOVERNMENT, represented in this act by the Secretary of the Department of Environntent and Natural Resources with oifjce at lhe Deparlment of gnvironment and NatLrral Resources Building Visayas Avenue Dilirlan, euezon City i, nd 苒 JORCE P TAN, pino, 腶R, a F腡 芃膌芏 legal age herein referred to as the CONTRACTOR,wtth ofF ce address Artan Enterprises. Brgy Alegria, Omoc cny . WITNESSETH: WHEREAS, the 1987 Constitution of the Repubtic of the philippines provides in Article Xll, Section 2 thereof that all lands of the public dornain waters, minerals, coal, petroleum and other natural resources are owned by the State and that their exploration, development and utilizallon shall be under the full control and supervision of lhe State; WHEREAS, the Constitution further provides that the Slate may direcfly undertake such activities, or it may enter into a Co-Production. Joint Venture, or N,4lneral Production Sharing Agreement with Filipino citizens, or cooperatives, partnerships corporations or associations at least sixty per cenlurn of whose caprlalzation is owned by such citizens; WHEREAS, pursuant to Republic Act No. 7942, otheMise known as 'The Philippine Mining Act of 1995," which look effect on 09 April 1995, the Secretary of the Department of Environment and Natural Resources is authorized to enter into l/ineral Production Sharing Agreements in furtherance of the objectives of the Government and the Constitution to bolster the national economy through 腜 sirstainable and systematic development and utilization of mineral lands: 苢 腒 WHEREAS, the Government desires to avail itself of the financial resources. lechnical competence and skill which the Contractor is capable of applying to the mining operahons of the projecl contemplated herein, WHEREAS the Contractor desires to join and assist the Government in the initial rational exploration and possible development and Lttilization for commercial ,鉛鑙 镩腁, 趤 膜 |腒,,|:| `|,|`| ,||苄 `, `膜 ||||||||||||||||||||||||||||||| SENR025797 er ass菍 腂芟 苬d腧 苬 ed苟 菍s芽 菏 :I菌 ttl袪 鍤轢 t辔 顨:ts苈 腂 閣 1, a顉 i陠 鱝 l腒 鉛 顃 ][躋 鳰 郙  覄 铱证 趮 tin鋟  NoW,THEREFORE,br and h cOng膊 菌l:#隿 腸 t苜 鏻 7譔 跫 諌ti:la鉨 : 轢 21 葜 芽 Ao No 7942 ohettse known as he腧 荣 Pmp膜 in腶 译 ne 讆 跛 1遚 鲾 22 Ao腵 224 #|::;iiilil]1:LI:ittt[:|腶 rt譧 腶 l:腷 :n::钖 :1:fnttre腡 韭 ::菌 :s 5韞 腠 [腴 轢 遅mi鏥 鞃 鏟  迢 :腸 覟 趕 2.26 MoerclErcducls mean SJI]lill[II譳 prepared into marketabte 菌腸 菌 l裳 beneficiation, cyanidation, IIl譔 lliil[i閿 [; processes. 2.27. Minina Atea means that qgrtion 9f the Contract Area identified by the Contractor as defined and detrneated i" ; S;;i,il;;jr'"'io)ou.o or,n" Director/Reoional Director concerned for purposes of development and/or utilizatron ard srtes for suppo( facrljties 2 23 M.Dl,!q Operatjons means mining activities involving exploration, feasibility study, environmental impact assessment, development, utllization, minerai processing and mine rehabilitation 2 29. Noticg means nolice in writrng, telex or telecopy (authenticated by answer back or confirmation received) addresseo oi ienils-provioea in Section 16.2 of this Aqreement. 2 30 ol€. means naturaly occurang substance or materiar from which a mineral or element can be mined and/or processed for profjt. 2.31 Pollution means any alteration of the physicai, chemical and/or biological properties of any water, air and/or land iesources ot tne nii,ppines or any discharge thereto of any tiquid gaseous or sotio waites oi J,if p,oorctio, oJ unnecessary noise or any emission of objectionable ;do; ;s w,ll orls rlKely lo Creale ot render such water, air, and land resources harmful, detrimental or_-jnjurious to public health, satety or wefiare Jr" rni"n ,itt adverseJy affect their utilization for Oomestic, lnOustrlal, agricultural recreational or other legitimate purDoses "ommeiciJi 2 32. qclralary means the secretary of the Department of Environment and Natural Resources. 2.33 State means the Repubtic ofthe phillppines 2.34 !ryq!_ElggAlo means a document which presents the ptan of major ' mining operations and the corresponding expenOrtures oi ine'Clntr"cto,. tn its Conlract Area. during a given perioi oi tir", ,n"fuO,ng-tn'e ptan anO 腜苧 expenditures for development of host and netghboring local geoscience and mining technology, com"muni|es anO of 芒腒 accordance with the impteme-ntinq as-subm deO- anO-approveO ln r.rr"" iliailsriJi""" "rli" ect 腚裪 sEcTtoN t TERM OF AGREEMENT 腏艕 This Agreement uate and shall have a lerm (25) years frorn Efrective may be renewed ,n.r;'*Yu:.'"''" rzsi v*," -ii".:;H:T"J",T,"['ILFII ly:lt_vln"" #',:;'::til: cnanges rn the terms and condition 3l"lm:ri:i.".: j[""ilii[il+:,'""|i,1:l?'1"":::",JT,1fl "il::# pubr,cb,ddinsnn"i j,i"p,ii,"""ii"X'"'Ji:,1[:;:"J j"i,IfifJn,"iTjfl ,il right ro equat the j expenses hrghest brd upon rermburse,.n""i""i" i"ril,""ror" of the highest bidder "i SECTloN IV CONTRACT AREA 41 size, shape, and Location of cOn 鑬豍 i鞓   莁 Corner L::l驢 1 1臥 13 4覟 郺 7莿 2 陹 10膋 56 0739' 124膋 24 3639腅 3 40膋 55 4409' 124膋 24 3639' 4 10. 55 4409' 124 24 0864 5 10膋 56' 1808腅 424膋 24' 0864" 6 10膋 56' 4808腅 124膋 24' 2387腅 SECT10N V EXPLORAT10N PERIOD 5.1. Timetable for Exploration - The Contractor shall commence Exploration ::ly.,li::.lgl]1r"|- than three.(3) monrhs after rhe Effective b"G rom p"noo or two (2) years, renewable for like periods but not to exceed a total term of six (6) years for nonmetaltic minerals and eignt fAl years ii, ,"trtti" minerats subject to annuat review and uppior"i 'Uf iie oirector in . accordance with the implementing rules and regulation" of th. Act. The Contractor shall submit the proof of consultation with the Sanoounran I concerned r^ the .o,m ot Resolutron or Certrficatron orror "io tne (" ir"ole.nentatior of rhe Eyptoratior Work proglam pu.sua^. to ti" n,..,,,,. n., of Section 5 of Department Administrative Oider No 2007_15 腏 节 5 2 Renewal of Exploration period case the Contraclor opts lor a renewal its Exproratio.r pe.rod. it sharr .-,ln of apptication in the frle pnor to i^;;;;l;ilH,r::i, u ,"n.*r, accompanied by Mines -ana c"o"ct"n"e"'" blrr""",i,,"c'""ntrc r om"", rules and the mandatory re!uir."r"nt" ttilrpr"r"ntirg resulations of the Aci ri," "1iput-ri"iii Exptoration period on oi.u"iorffill]-ti,Ii..,.""r", , *" ' comptied with the lerms conditron..that tt" Conirj"to,. his suostantialy with or without the frlno and conditions "r,1" aiii..i".ri:"rr.Jr,o"o, ,n", n, r,, o n i" u,il,;;;; of rt ,,;i,i " :,H:,:ffi; i;i["" Jl,.*1 i,;i:' r:; :,-"*J"J and so on. ln cases where further eyploration is warranted - "d;1 bevon.l rhF <,v ,A ( 8 r-year per od un" o"'""na,ti"o" ;;l-:ffi ["r"i"i"# :X'rrg;$J implemented the Exploration ano gnvironmentat woii e-rogi;r'"'a" ueriri"o by the Bureau, the Director may further gr"ni r"r;*"r ii iletxptoraton Period: provided. That the contracto, ii,lrr- o" ,uiriiuj"io'""t ,p , performance surety equivalent to tne expenortr,re-llq"uir"r'.n, ot rnu Fxoloralro_ a']d Environmental Work progr.arns 5.3. Work Programs and Budgets _ The Contraclor shall strictly compty with the approved Exproration and Environmentar work programs togetn;r with their correspording Budgets (p ease refer io ANNEXES ;s and .6.1 The amount to be spent by the Contractor in conducting Exploration activities under lhe terms of thrs Agreement during the Explo"ratron period . s^hat! be jn the aggregate of not tess than that siecineJ ioi Licn ot tne Contract Years, as follows: For the Exploration Work program: 1st Contract year PhP 650 000 00 2nd Contrafi Year PhP 3 300 00000 PhP 3,950,0000o For the Environmental Work program : PhP 400,00000 ln the event of.renewal of the Exploration period, the amount to be spent every year shallfirst lle agreed upon by the parties. ln the event of lerntination of this Agreement the Contractor shall only be obliged to expend the pro-rata amount for the period of such Contract year prior to termtnation. lf during any Contract year, the Contractor should expend more than the amount to be expended as provicled above, the excess may be subtracted 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 lhen the deficiency shall be applied to the amount to be expended during the succeeding Contiact years 54 Relinquishment of Total/Portion of the Contract Area - During the Exploration Period the Contractor may relinquish totally or pal-.iially the 苢 original Contract Area. After the Exploration peflod and prior to or upon approval of a Declaration o, l\.4ining Project Feasibility by the Director, the Contractor shall finalty relinquish any portion of the Contract Area not 腂 7 , 荍韒 鱪 豸 ||||||||||||||||||||||||腝 ||||||||||||| SttNR025797 and not covered bv anv Decraration irffiT3ir::i [|#,,ilu'"''on" or 5.5. I:,,Yl"ln_lSl .- The Director may a,ow the contractor rn" to hotd more than :Jr:"';Lill,i Y,:in"ff':^::l'.":t 'o -"''.,,i"i;;;: ."", unde, the . yining nrea "rn",i[ of 'he Act. ProvrclFrl .h:t each rinal Cl by a Declaration ol,Vining proieci Feasrbi,ity ""i"iy''"t'ons 5 6. Declaration of Minino proiect, Feasibility _ Within the term period rhe Cont.aJtor ih",r. fir" ,n it" n"g,onfi of the Explo,atjon Dectararion or Mrnrng prorecl Feasibirity iil" b"#,."".,oi.onl"o. ,t. 6""ir"ii)"1);rr;;;";"; Area supporled by Mjning proiect "r -s;;;:, Deveropmenr,nocon"t,,""ton;ffi ieas;t,l,r, l;:: complete geoloorc ffi J.rJnL";: reDort. ",""e an "#'tJ"iH:"il;ff application r", perrrnent Environmentar compliance^ ienifrcate, ' ",irv"r'l"j requirements. Faiture of the Contractor ,;;;;, liil,.'" ,o0,,""0,u Project during the to subririr;h; De;;,;tion of Mining .Feasrbitity erproration-c"'-rioi"JnIi?'iin.,ou."o substantial breach ot thrs Agreement " 57. Survey ofthe Contract Area The Contractor shall cause the survey of the perimeter of the Contract Area/finat nll,ni"g Ar"" throig-; rn-""ppri"rtion to, survey complete witn reouirements, frled in the Reg oia Of+i# concerneo srmuttaneous w.th the sutmiss,o" or tr," o".l"r"i"io,n"li H,r", i"r' Survey returns sha be submitted to tn" n.gLn;i t- easibitity approval Dtr""#r""Jn""rn"o tor within one (.1 ) vear from receipt ot t-n" OrO"i oi Sr,*y comptete with the mandatory requirements .trtla in tnu- irpf#""niing ,uf"" . regulations of the Act. "no 5.8. Reporting a During the Exploration period, the Contractor shall submit to the Director, through the Regronal Director concerned, qu"rt"rtu ,r,f annual accomplishment reports under oath on -i"iiuiti"s conducted in the Contract Area from the Effective "ti A_greement The quarterly report shall be submitted Oate ot tfrrs fifteen not t"tui tnrn'^ I affual r 15) days at the end of each C"renoa. O*rter ;;;i" ;; -'