MINDORO NICKEL NEWSOfficial Monthly Publicationof Intex Resources Phils., Inc.

LEO CLETO A. GAMOLOPresident and CEO

ROCKY G. DIMACULANGANVP for Communication

ANDY O. PESTAÑOManager, Community Relationsand Development Office (CReDO)

MARTIN G. REGISPEDRO P. PAQUEOCReDO Officers

LEO A. DELA CRUZDesign and Layout

Website: www.intexresources.com.ph

For questions, comments, suggestion, please email us atinfo@intexresources.com.ph

Mindoro Nickel NewsSeptember 2013

Among the world’s largestundeveloped Nickel deposits,discovered, defined and fullycontrolled by Intex and itsPhilippine affiliate AglubangMining Corp.

Over 350 million tons totallaterite resources hold some3 million tons nickel, andwith further upside potential.Secures over 100-years pro-duction at 25,000 tons nickelper annum.

Projected as one of the mostcost-efficient per poundnickel producers. Near-zerocarbon footprint and inde-pendence on fossil fuel forthe life of operations.

Potential valuable by-products include amsul fertil-izer, chromite, cobalt, scan-dium, REE, zinc and iron aswell as carbon-free, steam-generated electrical power.

Enjoys growing communitysupport. Providing socio-economic benefits for localresidents and Mangyan in-digenous peoples througheducation, livelihood, healthand sanitation initiatives andinfrastructure support.

Mindoro Nickel Projectat a Glance :

Intex’s free shuttle service ensuressafety, supports academic success ofpoor Mindoro children

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Mangyan, Inmates participate inIntex’s LEAF Project 3

Frequently Asked QuestionsAnswered

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Felix Palgan, a 56 year-old inmate who has extensive experience inrubber farming from his native Makilala, North Cotabato, says he is happyto be able to help and share his knowledge with his fellow prisoners.

“Magiging maganda po ang buhay ng mga tao dito sa Sablayan at pati narin sa buong Mindoro dahil sa karagdagang hanapbuhay. Kung dadamiang taniman ng rubber, marami ang makapagtatrabaho. Dalawang pa-milya na ang magbebenepisyo sa isang ektarya ng rubber farm, at kungmayroon pang intercrop na saging, cacao at iba pa, dagdag pagkain atkita pa rin yun. Maluwag at walang masyadong pananim dito sa korek-syonal, lalo na sa buong Sablayan. Makatutulong ng malaki ang LEAFproject sa pag-asenso ng mga mamamayan ng Mindoro.

“Mining is widely viewed as a disruptive business. Whether it takesplace in developed nations or emerging economies, mining activities affectlocal communities in myriad ways,” Gamolo adds. “Given these realities,we put considerable advance thoughts into a range of social issues. Thisadvance planning has had to expand radically in recent years.

“As mining companies often move into remote and poorly populatedareas , they find themselves cast in the role of providers of even the mostbasic community services or of solutions to larger social programs,” Peter-sen continues. “In addressing expectations for sustainable development,we realize that today mining is as much a social task as it is a technical one- we must do more than ensure appropriate mine safety and environ-mental controls. We must also actively engage with all stakeholders –especially IPs – at every stage of the mining lifecycle: from exploration,mine development and operation to closure, post-closure and future landuse. The LEAF Project is an embodiment of this realization.”

Gamolo stresses: “LEAF manifests Intex’s commitment to stay in Min-doro and contribute to its growth and that of its people for the long-term.We believe we can do much more, particularly in the areas of education,health, and infrastructure development, if the Mindoro Nickel Project,which straddles the two Mindoro provinces, will only be allowed to pro-gress. This project is anticipated to become the first refined nickel plant inthe Philippines and, with 3 million tonnes of nickel in current global re-sources, will be the largest deposit in the country.”

Intex recently received a certificate of recognition from Mines and Geo-sciences Bureau Region IV-B Director Roland de Jesus, for the company’s“continuous support and very satisfactory accomplishment in the imple-mentation of the National Greening of Program of the Administration ofPresident Benigno S. C. Aquino geared towards poverty alleviation in thecountryside and climate change mitigation and adaptation.”

The claim is apparently based on the concern that the mine will affectthe amount or quality of water for local irrigation use.

On Water SupplyThe catchment areas for water in Occidental Mindoro will not be affectedby the project. The project is located entirely on the eastern side of thewater divide that separates the lowlands of Occidental Mindoro and Orien-tal Mindoro.

The planned mining activities – involving phased activities of 100 hectaresper year, immediately followed by rehabilitation and reforestation – willnot have any measurable consequences on the supply of water to ricefields in both Oriental Mindoro and Occidental Mindoro.

Some 60% of the rice production in Oriental Mindoro is said tocome from the municipalities of Calapan, Victoria and Naujan.These areas are provided with surface water from the followingrivers: Mag-Asawang Tubig, Pangalaan, Bucayao and Baco.These rivers have their headwaters in the mountain ridge of cen-tral Mindoro.

The collective catchment for these rivers is approximately192,000 hectares. Out of this area, about 33,000 hectares (or17% of the total collective catchment) is the source of water forthe southern Mag-Asawang Tubig and Pangalaan rivers that, inturn, supplies water to the rice fields of Victoria and the southernhalf of Naujan.

Rice fields in other parts of Naujan and the entire Calapan areprimarily sourced from the northern Bucayao and Baco riversystems – both of which are entirely outside the project area.

The MNP tenement measures 11,300 hectares.

Of this, only about 5,000 hectares will be the final area of thetenement.

Only about 3,500 hectares – approximately one-third of theproperty – is underlain by mineable laterite.

About 1,900 hectares – just over half of the 3,500-hectare mine-able area – will provide resources for over 20 years’ production.

Actual mine plans consider using about 100 hectares per year,followed by rehabilitation and reforestation in a sequential man-ner.

The mining of 100 hectares makes up about 0.05% of the catch-ment area for Mag-Asawang Tubig. The planned mining activi-ties, therefore, will not have any measurable consequences forthe supply of water to rice fields in neither Occidental nor Orien-tal Mindoro.

On Water Quality All areas affected by mining operations will be equipped with

settling and polishing ponds to prevent silt to escape into thenatural waterways.

Streams that pass through or lead into mine areas will be di-verted to avoid excess water entering into these streams andmixing with active mine areas.

Following regulatory demands, all efforts will be taken to avoidescape of silt from active mine areas.

No toxic chemicals will be released to the environment. No explosives will be used before, during and after the mining

operation. Comprehensive rehabilitation and reforestation programs will be

undertaken to prevent erosion.

Page 4 INTEX RESOURCES PHILIPPINES INC.Mangyan Inmates…. (From page In every issue of Mindoro Nickel News, we will address issues and

concerns raised by stakeholders regarding the Mindoro NickelProject. -- Ed

Not mining yet

Intex spends over P140M forenvironmental protection

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Still in the exploration stage, Intex Resources Philippines, Inc. has spent – from 2008 up to June this year –over P140 million for environmental protection and management initiatives for its Mindoro Nickel Project .

Vol. 1 No.1

Inside this issue:

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A huge portion of these expenses were dis-bursed in 2008 and 2009 at the height of Intex’sexploration and drilling activities in portions of itsproperty, which straddles the provinces of Orien-tal Mindoro and Occidental Mindoro. Through itsinnovative design and unique process solutions,the Mindoro Nickel Project is expected to set newstandards for the nickel industry with its unprece-dented low-carbon emissions, independence offossil fuels, and exceptionally low environmentalimpact.

The completed study has since beenturned over to local government officials.

“While the government has tempo-rarily revoked Intex’s EnvironmentalCompliance Certificate in 2009 in re-sponse to unfounded accusations by anti-mining groups, Intex has resolved tocontinue its efforts to mitigate the harm-ful effects of climate change, maximizingland use, and protecting damaged eco-systems while providing livelihood op-portunities to residents of the company’shost communities,” Gamolo stresses.“For the first six months of June alone,the company has spent over P2 millionfor its Livelihood Enhancement throughAgro-Forestry (LEAF) project.”

Initially intended as Intex’s responseto government’s call for private sectorparticipation in the National GreeningProgram LEAF has, since 2012, been en-couraging local farmers to better utilizetheir land and establish sustainable in-come, growing over time as more cropsreach harvesting stage.

“Overall, our LEAF partners in theSablayan Penal Colony in OccidentalMindoro and the Mangyans of Victoria,Oriental Mindoro have propagated some200,000 plants,” Gamolo points out. “Wehave likewise planted more than 45,000trees over currently a 60-hectare area.”

For the National Greening Programitself, Intex has either planted or do-nated approximately 144,000 trees innearly 300 hectares over more than192,000 hills in Mindoro island.

Is it true that the Mindoro Nickel Project will adverselyaffect rice production in Mindoro Island?

“With the end in view of systematically andeffectively mitigating the potential impacts of mi-neral exploration and, subsequently, development,on both the environment and host communities, Intex commissioned athorough assessment or baseline study of Mindoro,” Leo Cleto Gamolo,Intex president, says. “The study was conducted by a host of Filipinoand foreign experts, including environmental engineers, botanists, min-ing engineers, environmental project managers, biologists, social scien-tists, hydrologists, and agro-foresters, among others.

The baseline study was led by the University of the Philippines LosBaños Foundation, Inc. for an inventory of the island’s flora and fauna.Lichtel Technologies, Inc., on the other hand, undertook the compre-hensive social and environmental studies, which became the corner-stone of MNP’s Environmental Impact Study (EIS). The EIS provides theframework for, among others, Intex’s Environmental Management Plan,which identifies the predicted impacts, the mitigating and enhancementmeasures, the responsible parties that will implement the mitigatingmeasures, the schedule of implementation, and the guarantees or pro-grams that will address the impacts.

The environmental protection and management measures encom-pass all stages of the mine life – from exploration, development, con-struction, commissioning operation, and decommissioning and totalrehabilitation. These measures include land, water, air and noise pollu-tion control, soil loss and erosion management, rehabilitation and refor-estation, and environmental monitoring.

“Intex has also taken an interest in helping solve Mindoro’s peren-nial flooding problems – a major concern that has antedated our explo-ration activities on the island,” Gamolo adds. Our company commis-sioned Phillips Technical Consultants Corp., the consulting arm of the FFCruz Corp; as well as DHI Water and Environment Sdn Bhd, a leadinginternational expert on water management, to conduct flood study forthe Bucayao, Panggalaan and Mag-asawang Tubig Rivers in OrientalMindoro.”

In 2009, Intex constructed Gabion protection dike structuresworth P10 million for the people of Barangay Alcate, Victoria, OrientalMindoro to avoid further deterioration of the road leading to communi-ties in the municipality, which have been seriously damaged by previousfloods. The company spent an additional P29 million for an in-depthstudy by independent experts and scientists from Golder Associates PTYLtd to determine the real cause of flooding in Mindoro Island.

Intex constructed gabion protection dike structures worth P10 million for thepeople of Barangay Alcate, Victoria, Oriental Mindoro to protect the commu-nity from floods.

Page 2 INTEX RESOURCES PHILIPPINES INC.

“Napakasimpleng paraan ng pagtulong ang ginagawang ito ng Intex, subali’tnapakalaki ng magandang epekto nitong serbisyong ito sa katulad naming mgamagulang, at lalung-lalo na sa aming mga anak. “Napapangalagaan na angkaligtasan ng aming mga anak, natutulungan na sila sa kanilang pag-aaral,nababawasan na ang aming gastusin, at napapalagay pa ang aming kaloobandahil nga sa mga benepisyong ito.”

Page 3MINDORO NICKEL NEWS

In many of the Philippines’ far-flung rural areas, basic services such aspublic transportation are difficult to come by. Consequently, progresscomes slow and poverty remains prevalent, perpetuated by meager edu-cation – or poor access to it – as young students who can barely afford ithave to take long walks to get to and from school, or pay high fares thattake a toll on their already measly allowances.

Such was the case among the young residents of Pag-asa and SanAgustin, two barangays in the eastern fringes of Sablayan town in Occi-dental Mindoro, until Intex Resources Philippines, Inc. provided free shut-tle van service to the Mangyan and Tagalog students in these small com-munities at the foothills of the so-called Mindoro Pine Range.

Since last July, some 82 elementary and high school students are beingferried to and from their schools in Central Pag-asa and San Agustin tothe relief of their parents.

“Malaking tulong sa aming mga anak ang free shuttle service na ito”says Timoteo Gregorio, a pastor of the Mangyan indigenous people BornAgain Christian congregation in Pag-Asa. “Ngayong tag-ulan, di na ma-babasa ang mga bata. Sila’y nagsisipag na rin mag-aral. Maaga silanggumigising para makahabol sa schedule inihahatid din sila pauwi”

Pastor Gregorio, who is from the Tao Buhid Mangyan tribe, is marriedto Marilyn, an Alangan Mangyan. As required by Intex, they see their sixchildren off at the shuttle van pickup point in Amnay at the northeastedge of Sablayan to ensure that they really board the vehicle to school.Six other children of the Gregorio clan, and 12 others – all Mangyans, takethe van from the foothills to their school in Central Pag-asa, 2.5 kilome-ters away.

“Dati kailangan pa nilang maglakad ng malayo papuntang paaralan odi kaya’y magbayad ng P10 kada tao para mag-backride sa motorskilo nabihira namang dumadaan dito sa amin ,” says Pastor Gregorio. “Ngayondi na sila mauulanan o maarawan, at kung gagabihin naman sila ay ligtasna ang kanilang pag-uwi kahit walang ilaw ang mga kalsada dito .”

While Sablayan is a first class municipality, its size – a total land area of2,188.80 square kilometers, making it the largest town in the Philippines– hinders local officials from meeting the basic needs of citizens, number-ing nearly 80,000, specially those living in the town’s fringes. The Man-gyan tribal folk in these areas eke out a living from slash-and-burn farm-ing, and their Tagalog counterparts from being farm laborers of wealthylandowners.

To maximize the number of students that can be served,the shuttle van driver then picks up at 7:00 a.m. – shortlyafter dropping off his Mangyan passengers – 24 Tagalogelementary pupils from Central Pag-asa to ferry the new setof children to the Seventh Day Adventist School in SanAgustin, 4.5 kilometers away to the south. (During the drymonths from January to May, jeepneys and buses to andfrom Pag-asa take a shortcut across a dry river via BarangaySan Francisco, thus bypassing San Agustin and forcing stu-dents here to take long walks both ways or miss their classesaltogether) Once in San Agustin, the van then takes studentsto the Pag-asa High School back in Central Pag-Asa and thenreturns to San Agustin to transport the second half of thetotal 34 students in this route.

After the students from the Central Pag-asa and SanAgustin are brought to their respective drop off points at theend of their classes, the Mangyan pupils are then ferriedback to Amnay, thus completing the total of six trips Intex’sshuttle van service takes in a day.

“Apart from the trees and crops being planted by their inmate-counterparts atSablayan, our Mangyans partners in Victoria have included hardwood trees andlocal crops in the configuration,” Pestaño adds.

“Overall, our partners in the Sablayan Penal Colony and the Mangyans of Victo-ria have propagated some 200,000 plants. We have likewise planted more than45,000 trees over currently a 60-hectare area,” he says. For the National Green-ing Program itself, Intex has either planted or donated approximately 144,000trees in 287.07 hectares over more than 192,000 hills in Mindoro island.

“LEAF is designed to encourage local farmers to better utilize their land andestablish sustainable income, growing over time as more crops reach harvestingage,” says Leo Gamolo, Intex president. “Partnership with international off tak-ers for coffee and rubber will ensure local farmers a sustainable income. LEAF hasalready generated considerable interest among local farmers and other Mangyanindigenous communities. Training sessions are being held at Intex’s facility, evenas help in the form of seedling distribution is extended to those who wish to im-plement the project in their backyards.

“Our partner stakeholders come primarily from the areas where the tree-planting will take place, and since they will be doing the work its only fitting thatthey reap the benefits of LEAF. As these ecosystems are restored, these trees willprovide added security against flooding, erosion and in time will bear fruits thatthey can sell as well,” Gamolo points out.

Says Ramil Baldo, the Mangyan IP chairman of SADAKI: “Sa kabuuan, malakiang nagiging pakinabang ng bawat katutubo na kabahagi ng programang LEAF.Nakapagtanim kami ng mga puno tulad ng mahogany at kawayan at mga punongnamumunga tulad ng kape, cacao, lansones, rambutan, durian, at niyog. Mayitinanim din kami na pinya at kamoteng kahoy na pagkukunan namin ng masmadaliang ani. Ang mga ito ang aming pagkakikitaan habang di pa namumungaang mga prutas. Ang pagtatanim ng mga puno ang siyang magiging susi paramaibalik ang mga nawalang puno at manumbalik ang pagiging luntian ng aminglugar. Kung magpapatuloy ang programang ito, maibabalik ang mga puno nanawala dahil sa pagkakaingin at pag-uuling ng mga katutubo.

Pestaño says LEAF has also brought about other unexpected benefits, particu-larly to the inmates participating in the project. “They used to receive a token ofonly one peso per day in the Bureau of Correction’s livelihood and skills trainingprogram for those inmates who are set to be released from the Sablayan PenalColony,” he relates. “With LEAF, the inmates receive a much better pay rate,which enabled many of them to send money to their loved ones for the first timeafter many years. One inmate was even able to buy a mobile phone so that hecould communicate with his family regularly.”

(Next page )

Above and below, elementary and high school students, a good number of them Mangyanindigenous peoples, ham it up for the camera. “The safety of our children are looked after,they are being supported in their studies, our expenses are lessened, and we have peace ofmind precisely because of these benefits,” says another parent.

Intex free shuttle ...(From page 2)

While the minerals development industry is at the doldrumsas many mining and exploration firms wait for the granting of per-mits, some companies have remained focused on addressing socie-tal expectations for sustainable development. These expectationsinclude mitigating the harmful effects of climate change, maximiz-ing land use, protecting damaged ecosystems, advancing food self-sufficiency, and providing livelihood opportunities to residents ofhost communities.

One such company, Intex Resources Philippines, Inc., has foundan innovative way of effectively meeting these expectationsthrough a tree-planting project called “Livelihood Enhancementthrough Agro-Forestry” or LEAF. And while initially intended asIntex’s response to government’s call for private sector participa-tion in the National Greening Program, LEAF is now also proving tobe an inclusive development mechanism with the active involve-ment of two sectors that are often sidelined in the pursuits ofmainstream society: indigenous peoples (IPs) and inmates.

In Sablayan Penal Colony in Occidental Mindoro, some 40 mini-mum-security inmates are being trained under LEAF’s plant propa-gation program in a total 17-hectare demonstration farm and nurs-ery operated by Intex. In the farm, two rows of rubber trees havebeen planted, separated by two rows of coffee and banana, re-spectively.

“This arrangement will eventually develop into a three-canopyagro-forestry plantation,” explains Andy Pestaño, Intex CommunityRelations and Development Office manager, says. “And since ba-nana and coffee require two years to propagate and rubber fouryears, early value crops such as sweet potato, cassava and pineap-ple are planted in between the tree and bush crops in the interim.”

Over at Victoria, Oriental Mindoro, around 500 Mangyan be-longing to the SADAKI indigenous peoples organization are imple-menting the LEAF system in a 55-hectare area provided by theDepartment of Environment and Natural Resources (DENR) for theNational Greening Program. (Turn to page 4)

Fr. Robert Cadid, Barangay Pag-asa parish priest, blesses the van before it commenced free shuttleservice to Pag-asa and San Agustin students last July. Behind Fr. Cadid’s left shoulder is Martin Regisof Intex’s CReDO, who says the company committed to investing in the education of Mindoro’s youngcitizens.

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High school students from Barangay San Agustin board Intex’s free shuttle van service to and from their school inCentral Pag-asa. The van makes six trips a day, serving a total of 82 elementary and high school students in theeasternmost fringes of Sablayan, Occidental Mindoro. “This rainy season, the kids won’t get wet anymore,” onethe students’ parent says. They’re also more inspired to study.”

Martin Regis, an officer from the Intex Community Relations andDevelopment Office (CReDO), says the company believes it alwayspays to invest in children’s education, not only directly through thescholarship and school equipment and supplies donations that arealready part of Intex’s social development initiatives in the area, butalso through support projects like this shuttle van service.

“We remain faithful to our commitment to residents of our hostcommunities who have graciously welcomed us in their midst despitethe many challenges we face as an exploration firm,” Andy Pestaño,Intex CReDO manager avers. “To people living in urban areas, theshuttle van service may appear miniscule, but to the poverty-strickenfolks in Pag-asa and San Agustin, free transport service means a lot. Ithas both short- and long-term impacts for our beneficiary students interms of safety on the road and success in school. We will be able toexpand this service once the current impasse on exploration andmining is lifted.”

Intex owns the Mindoro Nickel Project property, which containsamong the world’s largest undeveloped nickel deposits. The propertystraddles the provinces of Occidental Mindoro and Oriental Mindoro.

Mangyans, inmates participatein Intex’s LEAF Project

Intex’s free shuttle service ensures safety, supports academic success ofpoor Mindoro children