Philsaga Mining Corporation

MPSA 262 consisted of Forty Eight (48) P.D. 463 Mining Claims with an aggregate area of 3,888.00 has. Eighteen (18) of these claims were initially staked by Central Mindanao Mining Corporation, Incorporated (CMMCI) which in 1986 put up a 100 TPD Cyanidation Plant at Bayugan 3, Rosario, Agusan del Sur. On February 14, 1987, CMMCI entered into an “Agreement” with Banahaw Mining and Development Corpo

ration (BMDC) covering its Eighteen (18) Mining Claims. BMDC is an exploration and mining company and the Philippine operating entity of Musswelbrook Energy and Mines which was listed in the Australian Stock Exchange. An additional Nineteen (19) Mining Claims were later staked by BMDC which also pursued and succeeded in consolidating most of the adjoining claims through operating agreements with various claim owners and tenement holders. On December 18, 1996, a Deed of Assignment was executed by BMDC and Base Metal Mineral Resources Corporation (BMMRC) covering the Thirty Seven (37) Mining Claims, inclusive of the “Agreement” executed by CMMCI and BMDC on February 14, 1987. On July 28, 1997, BMMRC filed the Mineral Production Sharing Agreement (MPSA) applications denominated as APSA No. 000010-XIII, APSA No. 000011-XIII, APSA No. 000012-XIII and APSA No. 000013-XIII with the Mines and Geosciences Bureau (MGB) Regional Office (RO) No. Two (2) of these APSA applications were later on consolidated into one (1) application (APSA Nos. 000010-XIII and 000011-XIII) denominated as APSA No. 000084-XIII. BMMRC officially notified MGB RO No. XIII of its change in corporate name into Filminera Resources Corporation (FRC) on May 4, 2000. On February 28, 2003 a Transfer Deed was executed by FRC and Philsaga Mining Corporation (Philsaga) involving APSA No. 000084-XIII, where the former agreed to transfer all its rights and interest over the MPSA application including the approved Small-Scale Mining Permits (SSMP) to the latter. While waiting for the approval of APSA No. 000084-XIII, Philsaga continued the SSMP operation inherited from FRC. Vibrant Earthmovers, Inc. was engaged as the mining contractor of the Co-O Gold Operation (formerly Banahaw Gold Project). Upon expiration of the SSMP, Philsaga applied for a Special Mines Permit (SMP) with the MGB RO No. XIII which was granted on January 9, 2006, denominated as SMP No. 05-2006 covering an area of 423.2 has. On March 11, 2008, MPSA No. 262-2008-XIII was granted by the Philippine Government through the Department of Environment and Natural Resources in favor of Philsaga.