PRECIOSOS MINERALES DESARROLLO

CORPORATION
2nd Flr, Dr 3, Insular Life Building, CM Recto, St., Davao
City
Tel. No. (082) 815-1659 Email Add:
pmdcmining@gmail.com

January 6, 2015

MR. ARSENIO K. SEBIAL JR.

President
Marcventures Mining and Development Corporation
Cantilan, Surigaodel Sur

Sir:

In today’s competitive environment, timing is perhaps even more essential than a well-
crafted plan. Business opportunities are fleeting such that timing spells the difference
between success and failure.

Your investments in Marcventures Mining and Development Corporation (MMDC) is

right into a massive opportunity of favorable nickel ore prices in the face of limited world
supply situation due to Indonesia’s prohibition for shipment of raw nickel ore. What could
be the defining component is the timeliness of delivering the committed volume to the
customers.

Our company, PreciososMineralesDesarrollo Corporation (PMDC), can give

you that edge of meeting your commitment of producing and delivering the required
volume of direct shipping ore (DSO) to your customers. This we can do by managing the
mine operations in areas that we propose to manage and operate for and in your behalf.

PMDC’s capacity to precisely do this has been demonstrated at FRASEC’S mine

operations in Claver, Surigaodel Norte through its subsidiary corporation ENAC
Construction Development and Sales Enterprises Corporation. PMDC is currently ramping
up its operations to assist the client in meeting its volume obligations not only through
acquisition and deployment of additional equipment but more so through optimization
from which your company can also benefit from.

Already, based on our actual operations, we have identified certain areas for innovation
that may prove to achieve production and delivery targets earlier, more efficiently, and
more sustainably.

Our geologists, mining engineers, and operations personnel can further study the area/s
to come up with a detailed resource estimates and correspondingly a proposed mining
plan for the assigned areas.

We shall get in touch with your office for a discussion of the proposal, your own plans
and preferences, and on how we can develop a work program that is consonance with
your objectives.

Very truly yours,

LUCIO F. CENIZA
Chairman and CEO
MEETING COMMITMENTS ON
TIME,
REAPING BENEFITS ON TIME.
A Proposal to Operate and Manage MMDC’S DSO
Expansion Areas to Meet MMDC’S Production and
Delivery Commitments

January 6, 2015

Submitted by:

PRECIOSOS MINERALES DESARROLLO CORPORATION

 MEETING COMMITMENTS ON TIME,
REAPING BENEFITS ON TIME.
A Proposal to
Operate and Manage MMDC’s DSO Expansion Areas to
Meet MMDC’s Production and Delivery Commitments

1. CURRENT SITUATION

At the moment, there is a contract mining operations being done by Hinukuman in an

area designated under Marcventures Mining and Development Corporation.

2. GOALS AND OBJECTIVES

MMDC’s goal, in this regard, is to meet the volume commitment for shipment to your
buyers in the most efficient and environmentally sustainable way. This in turn will
generate the necessary cash flow as expected by your shareholders while establishing
goodwill with the community. This can be achieved by reinforcing the production and
delivery capacity by availing of and deploying the capability, expertise, and resources
ofPreciososMineralesDesarrollo Corporation (PMDC).

3. PMDC Mining SERVICES AND OPTIONS FOR MMDC

We see several approaches by which PMDC can assist your company:

a. FARM-IN

i. In farm-in approach, PMDC proposed to and requests from

MMDC to designate or assign certain areas or pits for PMDC to
“earn-in” an interest (earned interest) in said designated or
assigned pits by carrying our certain obligations. PMDC
proposes to finance and undertake the detailed and
confirmatory exploration, feasibility studies, mine development,
and the extraction, hauling, shipping and marketing of nickel
ore in said designated/assigned pit/s.

b. MINE MANAGEMENT

i. In mine management approach,PMDC proposes to

undertake in behalf of MMDC the management of the
designated or assigned areas or pit/s in accordance with the
MMDC’s mine plan, schedule, and performance criteria.

ii. PMDC under this particular engagement shall undertake for and
in behalf of MMDC the following:

1. Mining operations
2. Mineral handling
3. Haulage and barging
4. Safety management
5. Environmental management
6. Social development
7. Rehabilitation management
 8. Tailings management and water management

c. MINE OPERATIONS

i. In mine operations approach, PMDC may provide mine

operations services to MMDC in certain designated or assigned
areas or pit/s where mining operations can be initiated.

ii. The mine operations services that PMDC may provide to MMDC
can encompass the following:

1. Development of designated area/s or pit/s

a. Clearing and Grubbing;
b. Stripping and Disposal of waste/overburden
materials
c. Dev./Construction/maintenance of pit benches,
drainage system;
d. Others
2. Pit operations
a. Mining / Extraction
b. Quality Control – Sizing [Breaking] and Sorting
c. Others
3. Hauling
a. Hauling of ore from extraction area to pre pile or to
barge loading area stockpile
4. Barging
a. Transporting of ore from barge loading area to ship
side for offshore shipping
5. Road Maintenance
a. Grading & Compacting
b. Watering
c. Others

4. OUR PROPOSED APPROACH

From the foregoing, PMDC’s proposed approach, given the current situation, is to MINE
MANAGEMENT of designated mine area/s or pit/s. For this particular project, this will
entail the following:

a. Mining operations in the designated area/s or pits

1. Development of designated area/s or pit/s
a. Clearing and Grubbing;
b. Stripping and Disposal of waste/overburden
materials
c. Dev./Construction/maintenance of pit benches,
drainage system;
d. Others
2. Pit operations
a. Mining / Extraction
b. Quality Control – Sizing [Breaking] and Sorting
c. Others
b. Mine road access opening and construction
c. Causeway construction
d. Stockpile development
e. Mineral handling
f. Hauling
g. Barging
 h. Safety management
i. Environmental management
j. Social development
k. Rehabilitation management
l. Tailings management and water management and even
m.Marketing of ore

5. DELIVERABLES

PMDC’s deliverable to your company is the production, transportation, and delivery of

the required quantity of mineral ore of the required quality (grade, and moisture content)
for export.

To this end, the specific deliverables may include the following:

 Operate additional pit/s for mineral production;

 Construction of a new causeway;
 Construction of ore transport system/s. May include:
o Access roads to and from the additional pit/s to the stock yard and the
causeway;
o Conveyor system for conveying of ore and or lime stone (for the
construction of causeway)
 Transport trucks and complements:
o Dump trucks/articulated trucks;
o Equipment (excavators, loaders, graders, etc.)
o LCT

6. BENEFITS

The engagements being proposed herein, taken singly or in combination, and

implemented one at a time or in parallel, are designed and are expected to provide the
benefits associated with early monetization of MMDC’s assets by meeting early on the
committed volume of production and delivery of nickel ore while at the same time frees
up MMDC from the burden of actually operating and managing the mine and in dealing
with multiple contractors and sub-contractors.

7. PRICING

A detailed study of the mine designated or assigned area or pit/s shall be made in order
for PMDC to come up with a proposed price schedule for the various services that your
company may finally require based on the mutually agreed approach or approaches (as
above) that may be undertaken.

8. NEXT STEPS

We propose to conduct a detailed study of the designated or assigned area or pit/s that
your company may assign to PMDC. We shall coordinate with your office to set a
schedule for this purpose.

We look forward to working with you to achieve your company’s production and financial
goals.
 PRECIOSOS MINERALES DESARROLLO CORPORATION (PMDC)
2nd Floor, Door 3, Insular Life Building, Claro M Recto St., Davao City
Tel. No. (082) 815-1659, Email Add: pmdcmining@gmail.com

PRIMARY PURPOSES

To embark in the discovery, exploration, development and exploitation of

minerals in all other forms in the Philippines and elsewhere and the business of
mining in general; to carry on the business of mining explorations and mining
operations of coal, gold, copper, iron, chromite, nickel deposits and other
minerals; to develop processing plant, milling, concentrating, converting,
smelting, treating, refining preparing for market manufacturing, buying, selling,
exchanging and otherwise producing and dealing in all other kind of ores, metals
and minerals, hydrocarbons, acids and chemicals, and in the products and by-
products of every kind and descriptions and by whatsoever process the same can
be or may hereafter be produced; and, to purchase, lease, option, locate, or
otherwise acquire, own, exchange, sell, or otherwise dispose of pledge,
mortgage, deed in trust, hypothecate, and deal in mines, minerals, mining claims,
mineral lands, coal lands, timber lands, water and water rights, and other
property both real and personal.

SECONDARY PURPOSES

1. To enter into Management Agreements, Service Contracts or

Operating Agreements related to mining activities with other corporations or to
undertake to manage or operate all or substantially all of the business of other
corporations, except management of funds, securities, portfolio and similar
assets of managed entities.

2. To engage in the management, supervision or control of business

enterprises of all kinds, the operations and transactions of any company or
undertaking and to manage and administer land, buildings, any kind of business
and any kind of properties, whether real or personal, and in general, to act as
agent, attorney-in-fact, purchasing agent and general agent, as may be permitted
by law.

3. To engage in the business of general builders and constructors of

roads, bridges, terminals, landing fields, docks, piers, government and private
buildings, army and navy buildings, barracks and other edifications needed and
necessary in the ordinary course of business.

4. To carry on the business of engineering consultants and contractors

and prepare plans and specifications of machinery, mills, plants, buildings and
works and the undertaking and performance of contracts for the construction and
erection of the same and the operation thereof.

5. To undertake dredging and drilling operations, and to dredge or

otherwise obtain out of the waters, navigable or non-navigable within the
Philippines as may be permitted by law, sand, gravel and deposits found in or
beneath said waters and to acquire and make the same available for commercial
purposes subject to existing laws.
 6. To carry on a general import and export business in goods, wares and
merchandise of any and all kinds and nature whatsoever; to make and enter into
all kinds of contracts, agreements and obligations with any person or persons,
corporation or corporations or other association for the purchasing, acquiring,
selling or otherwise disposing of goods, wares, and merchandise of all kinds
either as principal or agent, upon commission, consignment, or indent orders.

7. To engage in the business of operating steamships, motorboats and

other kinds of water crafts for the transportation of cargoes and passengers
within the waters and territorial jurisdiction of the Philippines as well as on high
seas; to act as agents of domestic or foreign shipping companies; to purchase,
charter, hire, build, or otherwise acquire motor or steam or other ships or vessels,
and to employ the same in conveyance and carriage of goods, wares,
merchandise of every description, and of passengers, within the waters and
territorial jurisdiction of the Philippines as well as on high seas; and generally, to
do and perform all acts and things necessary or proper or incidental for the
accomplishment of the foregoing purposes.

8. To hold, purchase, or otherwise acquire or be interested in, and to sell

or otherwise dispose of, shares of capital stock, bonds, or other evidence of debts
issued or created by any other corporation, partnership or company, whether
domestic or foreign.

Our Business

PreciososMineralesDesarrollo Corporation (PMDC) is a mining corporation

engaged in exploring, developing, acquisition and operating gold, copper, iron,
chromite and nickel properties as well as investing in operating mining
companies. The Corporation aims to create an integrated mining company with
its expertise in explorations and mining operations its access to processing
technology, and the potential of its projects.

Vision

Our vision is to be a highly respected mining Corporation committed to deliver

excellent value

Mission

We are a responsible mining corporation that discovers and processes minerals

and energy resources for the use of society.

Environmental policy

PMDC is committed to the continuous improvement of its operations, to minimize

adverse environmental impacts, to comply with applicable legislations and other
requirements, and to promote environmental awareness and commitment among
its workers at all levels.

Human rights policy

PreciososMineralesDesarrollo Corporation (PMDC) is committed to respect human

rights and to conduct its activities in a manner that is consistent with applicable
laws and best practice in mineral exploration and development, environmental
stewardship, health and safety, and community relations.

Ethics

We conduct our business fairly, honestly, responsibly, and with due regard for the
dignity and human rights of every individual.

Communities and indigenous peoples

We recognize the desires and aspirations of the communities and indigenous

peoples hosting our projects. To them, we commit that we will act responsibly and
will obey applicable laws, in order to:

(1) minimize the impact of our projects on the environment;

(2) protect the health and safety of those directly affected by our activities; and

(3) ensure that they receive real benefits from our operations.

It is essential for us to engage our host communities and indigenous peoples, that
they may see us as responsible, fair, honest, and law abiding corporate citizens in
all phases of our operations. We treat our host communities and indigenous
peoples as our partners in the exploration and development of our mining
projects. We strive to give the communities and indigenous peoples the real
benefits from our operations, and to leave them a lasting legacy by adopting
programs geared towards developing their livelihood and capacity requirements,
as well as their social, cultural, educational, health, safety, and environmental
needs.

We respect the cultural practices of indigenous peoples.

Employees

We conduct our business and activities fairly, honestly, and with due regard for
the dignity and human rights of our employees, including the rights guaranteed
by our labor laws. We promote safety, non-discrimination, environmental
awareness, and commitment in the workplace, and we support programs that
promote the development and potential of our employees. We encourage
transparency, professionalism, and accountability among our employees.

VALUES

Integrity

Practices honesty and sincerity in word and deed Honors commitments Speaks up
when situations warrant commendation or correction

Teamwork

Listens to and considers ideas or points of view of others Extends help while
respecting the roles of others in doing the job acknowledges team effort in
success and collective responsibility over failure

Respect for Individuals

Practices gender and cultural sensitivity Shows authentic concern to promote
individual welfare Examines own biases and behavior to avoid judgmental
reactions

Work Excellence

Produces work results in a timely, accurate, and safe manner Constantly learns,
innovates, amends, and improves services and processes Consistently delivers
superior quality of work

Corporate Responsibility

Advocates PreciososMineralesDesarrollo Corporation (PMDC) as a responsible

mining company manifests core values in both professional and personal
circumstances Upholds the PMDC Code of Conduct

Social & Environment Responsibility

Shows genuine concern toward its host communities to improve quality of life
Supports and practices the environment, safety, and health guidelines of
PreciososMineralesDesarrollo Corporation (PMDC) actively participates in the
corporation's community development and environmental programs

OUR COMPANY

Business Profile

PreciososMineralesDesarrollo Corporation (PMDC) is a Philippine corporation

engaged in the exploration, development and operation of gold, copper, iron,
chromite, nickel and other mining claims. The PMDC aims to capitalize on the
trillion dollar mineral potential of the Philippines and to be at the forefront of the
country’s economic development through mining. The PMDC aspires to be an
integrated mining corporation with an expertise in acquisition, exploration,
processing and development operations to all of its projects.

The PMDC through its subsidiary corporation the ENAC Construction Development
and Sales Enterprises Corporation operating mining in Platinum Group Metals
Corporation (Frasec Operation) at Barangay Cagdianao, Claver, Surigao del Norte
that cover a total claim area of approximately 4,300 hectares.

The Corporation started its Nickel Project operations located in Frasec Ventures of
the PGMC last September 2014. The Corporation is also doing progressive
exploration in its mining claim in Davao Oriental, Davao del Sur, Compostela
Valley Province, Agusandel Sur and Agusan del Norte. Exploration activities
include geological mapping, stream sediment sampling, heavy mineral
concentrates sampling and rock/channel sampling.

PMDC has an active Social Development & Management Program. This program
includes assistance to infrastructure development & support services, health
services, health facilities & health professionals, full educational scholarship
programs.

COMPANY PROFILE
Name of Company : PreciososMineralesDesarrollo Corporation (PMDC)

Office Address : 2nd Floor, Door 3, Insular Life Building, Claro M Recto
St., Davao City

Email Address : pmdcmining@gmail.com

Contact Numbers : (082) 815-1659

OUR TEAM

PreciososMineralesDesarrollo Corporation (PMDC) is comprised of

committed, talented, and thoughtful people who aspire to improve our
corporations’ performance as well as the communities within which we work and
live. Our most important assets are our people, capital and reputation. We are
committed to a culture of integrity, entrepreneurship, and achievement.

Chairman/CEO : Mr. Lucio “Louie” F. Ceniza

President/GM : Mr. Glenn F. Garcia

Vice President/COO : Mr. Rommel O. Tecson

Corporate Secretary : Atty. Randy T. Ceniza

Corporate Treasurer : Donald Elorde G. Elorde

Internal Auditor : Mr. Louie T. Luzon

Board of Directors : Mr. Lucio F. Ceniza

: Mr. Glenn F. Garcia

: Mr. Rommel O. Tecson

: Atty. Randy T. Ceniza

: Donald Elorde G. Elorde

: Mr. Louie T. Luzon

Incorporator : Architect Oscar E. Guibelondo

: Mr. Gary S. Mejias