COMPLIANCE WITH THE TRANSITORY PROVISION OF DMO NO. 99-10

To insure the full implementation of Department Memorandum Order
(DMO) No. 99-10 re: Guidelines in the Determination of Qualified Persons
for Mining Applications and Mining Rights, in relation to the
compliance with the minimum authorized capital of P10 Million and
paid-up capital of P2.5 Million by all mining applicants with pending
mining applications for Mineral Agreement (MA), Exploration Permit (EP)
and Financial or Technical Assistance Agreement (FTAA), the following
guidelines are hereby promulgated for the compliance by all concerned:

Section 1.      Rationale – The Transitory
Provision of DMO No. 99-10 prescribes that all mining applicants with
pending applications for EP, MA and FTAA shall have nine (9) months from
the effectivity of the said Order to comply with the provisions thereof
and that failure to do so shall cause the denial of the said
applications. However, it is recognized that DMO No. 99-10 has affected a
big number of mining applicants who have to go to the Securities and
Exchange Commission (SEC) to seek approval of the amendments to their
Articles of Incorporation to comply with the prescribed capitalization.
It is also recognized that in many cases, this amendment process is
taking more time with the SEC, raising the possibility that the
concerned mining applicants may not meet the deadline of the nine (9)
month period of compliance, i.e., February 6, 2000. Its implication is
that legitimate and serious mining applicants may lose their mining
applications for reasons that are not within their control. This
situation needs to be rectified.

Section 2.      Extension of the Nine (9) Month Period of Compliance
– The 06 February 2000 deadline for compliance with the provisions of
DMO No. 99-10 by mining applicants with pending applications for EP, MA
and FTAA, shall be extended for another three (3) months or up to May
06, 2000. Failure by the mining applicants to comply with the provision
shall cause the denial of their mining applications.

Section 3.      Repealing Clause . – All
memorandum orders and circulars or parts thereof inconsistent with or
contrary to the provisions of these guidelines are hereby repealed,
amended or modified accordingly.

Section 4.      Effectivity – This Order
shall take effect fifteen (15) days after its complete publication in a
newspaper of general circulation and fifteen (15) days after
registration with the Office of the National Administrative Register.

Adopted: 02 Feb. 2000

(SGD.) ANTONIO H. CERILLES
Secretary