Project Proposal Project Title : Target name : Location Proponents : : Private Small Scale Gold Mining Operation.

Presyls Small Scale Mining, Inc. Dawdawisan, Licuan-Baay, Abra Eufrecina Sannadan Kuan (Landowner) Sylvia Valdez Sabado (Investor) Rationale Mrs. Eufrecina Sannadan Kuan and her siblings own a fifty (50) hectare land located at Barangay Capcapo, Licuan-Baay, and Province of Abra, Philippines. Aforementioned property was discovered to be rich in mineral deposits mainly gold and copper. Upon discovering the minerals on their land, her siblings engaged themselves in backyard small scale mining operations, which is well ahead of the above named partner-land owner. Recently, she decided to enter the gold rush and formed her own team of miners. Lacking financial capabilities and expertise, Mrs. Kuan suggested to Ms. Sabado and invited her as financial partner/investor. Agreement It is agreed upon that Ms. Sylvia Valdez Sabado will finance everything that is necessary to start up a small mining operations and its daily operating expenses, a financial proposal attached herewith. She will be also in charge of hiring competent skilled miners and labor force. Mrs. Eufrecina Sannadan Kuan on the other hand, agrees to have their property mined for minerals by the partnership. It is also understood that she will not permit nor allow other investors outside of her family mining rights on their property. Both party agreed to a 60 / 40 sharing scheme for sales of mine tailings in favor of the owner. As to the proceeds of traded pre-gold, 50 % share each for the land owner and financier, after deducting operational expenses.

Aside from providing the on - going mining wage rates as compensation for the workers, the partnership will implement a profit sharing scheme wherein an employee will receive additional incentive (pro-rata) if the company profits from its operations. A profit scheme will be made so as to provide proper pro-rata sharing. The venture will also provide educational scholarship program, of which an educational fund will be set up. This will be provided to deserving children of miners depending on joint consultation and evaluation of a formed core group with proper representation from all levels. Other benefits such as SSS, Medicare, Health and Safety Insurance will also be reviewed to be properly giving welfare to the workers. Since the intention of the partnership is to provide just compensation to its workforce, it will from time to time evaluate and adjust its compensation program. Objective The proponents goal is to unite in partnership and create a sound and just company to provide employment to indigent people of Abra and the displaced skilled mine workers through out the Cordilleras.

Obligation The partnership obligates itself to provide comfortable and sanitary living quarters to its workforce and to help ensure environmental protection activities within the mine site.

Projected Project Cost a.) Ballmill Set 2 units Ten Bagger Ballmill (made to order) 100 feet Flat Belt (50.00/ft.) 2 units 16hp Motor Generator 2 sets Shafting Set (76500.00/set) 8 pcs. Pillow Block (600.00/pc.) Transportation Cost (Baguio City to Abra) Installation / Set-up Labor Cost (15k/set) Set Covering Shed (20k/set) Sub-total: b.) Quarrying Materials (5 Groups) 10 pcs. XL Basins (banyera) (350.00/pc) 50 pcs. Drills (250.00/pc.) 20 pcs. Sledge Hammer (maso) (1000.00/pc.) 10 pcs. Shovel (500.00/pc.) 2 pcs flat-tipped shovel 1500 pcs. Sacks (7.00/pc.) 10 pcs Miners lamp @100 each 10 pcs Hard hat @500 each 10 pairs Rubber boots @ 350 each 10 pairs knee socks @ 50 each 2 pcs Bolos @250 each 1 set Explosives 5 pcs Sample pan (big) @650.00 each 5 pcs Sample pan (small) @ 250.00 each Sub-total c) Tramline (optional) d.) Living Quarters 2 units 10ft x 36ft triplex structure 1 unit 2 room toilet & bath 18 units 2 Decker Bunk Beds 1 unit Overhead 500gal. Potable Water Tank 1 unit Power Generator Sub-total: e.)Personnel Food Allocation (3500.00/mo per head) (25 pax) 87500.00 185400.90 54143.10 28576.00 50000.00 40000.00 48000.00 50,000.00 280000.00 8000.00 90000.00 153000.00 4800.00 30000.00 30000.00 40000.00 635800.00

35,000.00 12500.00 20000.00 5000.00 1000.00 10500.00 1000.00 5000.00 3500.00 500.00 500.00 15,000.00 3,250.00 1,250.00

f.) Transport Service 1unit Isuzu Elf Double Cab/Dropside (Optional) g.) Kitchenwares One dozen each of plates, cups, spoon and fork coffee mug, tumblers.5 pcs Thermos, 5 Kettles, 5 Rice pots, 5 Casseroles, 5 Frying pans, 5 kitchen knives Summary 1. a.) Ball Mill Set b.) Quarrying Materials c) Tramline (optional) d.) Living Quarters e.) Personnel Food Budget f.) Transport Service g.) Kitchenwares II. Salaries and benefits: 635800.00 48000.00 50,000.00 358120.00 87500.00 500000.00 500000.00