Massart Mineral Resources, Inc.
Massart Mineral Resources, Inc.Offshore magnetite sand mining
project
Negros Occidental, PhilippinesHongkong, January 13, 20151
2
2010 Area - 28,766.7 Hectares
2014 Area - 18,405 Hectares3Reserve Estimates and Projected
Income Statement*ParametersOld Exploration PermitNew Exploration
PermitTotal Area28,76618,405Explored Area (5,000 hectares) Resource
(Black Sand) (Measured and Indicated) (Metric
Tons)1,947,701,2201,202,348,411 Specific Gravity3.28 2.65 and 2.617
% Magnetic Fraction9.40 and 8.4112.71 and 10.70Total Iron Ore
(Metric Tons)109,893,792137,098,166ParametersOld Exploration
PermitNew Exploration PermitTotal Area28,76618,405Explored Area
(5,000 hectares) Total Iron Ore 109,893,792137,098,166 Recoverable
Iron Ore (75%)**82,420,344102,823,625 Estimated Buying Price
(US$/MT) (Ave. Buying Price, FOB, from 2010-2014, MGB)5050 Gross
Value (US$)4,121,017,2005,141,181,225 Less - Estimated Cost @
US$30/MT (operating costs, taxes, social, envtal,
etc)(2,472,610,320)(3,084,708,735) Net Income
(US$)1,648,406,8802,056,472,490* Based on Philippine Mineral
Reporting Code (PMRC) and MGB Validation Report** MGB Estimates
4Potential of the unexplored areasParametersOld Exploration
PermitNew Exploration PermitUnexplored area @ 50%
Mineable11,8836,703 Thickness (Assumed) (Meters)10.00 10.00
Specific Gravity (PMRC CP Report and MGB Validation, Average)3.28
2.60 % Magnetic Fraction (Assumed, Average)8.91 11.71 Resource
(Black Sand) (Metric Tons) (Potential)3,902,377,200 1,742,650,000
Total Iron Ore (Metric Tons) (Potential)347,701,809 204,064,315
ParametersOld Exploration PermitNew Exploration Permit Total Iron
Ore (Estimated)347,701,809 204,064,315 Recoverable Iron Ore
(75%)260,776,356 153,048,236 Estimated Buying Price (US$/MT) (Ave.
Buying Price, FOB, from 2010-2014, MGB) 5050 Gross Value
(US$)13,038,817,820 7,652,411,813 Less - Estimated Cost @ US$30/MT
(operating costs, taxes, social, envtal,
etc)(7,823,290,692)(4,591,447,088) Net Income (Potential)
US$5,215,527,128 3,060,964,725
5MGB Approval Process (Current)Conduct Exploration
ActivitiesPrepare PMRC Compliant Competent Geologist Exploration
Report
(5,000 hectares)Validated of PMRC Exploration ReportSecure
Environmental Compliance Certificate (ECC)Support of Local
Government Units (LGU) EndorsementsFinalization of Feasibility
StudyEnvironmental, social, safety and Health Programs/PlansConduct
of SurveyProof of financial and technical capabilitiesValidated
PMRC Exploration ReportPMRC Compliant Competent Geologist
Exploration ReportApproved DMPFECCEndorsements of Local Government
Units (LGU)Approved Feasibility StudyEnvironmental, social, safety
and Health Programs/PlansApproved Survey and clearancesEO 796DENR
Administrative Order No. 2014-06 July 24, 2014Meeting with Sec.
Juico, Arch. Gavieta with MGB Dir. Jasareno last December
2014Allows expansion of existing MPSAs with available
mineral/resource, subject to validation by the Mining Industry
Coordinating Council thru its Technical Working GroupRecommended
the integration of the EP to an existing MPSA in the area7Massart
AreaValidation by the MICC Technical Working GroupIncorporation in
the MPSACompetent Person Geologist Final Exploration
ReportValidated PMRC Exploration ReportECCEndorsement of Local
Government Units (LGU) Approved Feasibility StudyApproved
Environmental, social, safety and Health Programs/PlansAmended
Survey and clearancesFinancial and Technical
CapabilityCommercialOperationsApproval of the Offshore Mining
Guidelines8Estimated costs to comply EO 2014-06ActivityEstimated
TimeframeCosts (PhP)Soft Costs (PhP)RemarksIncorporation of Massart
Exploration Permit into an existing MPSA90 daysTo Be Determined
(TBD)TBDMassart and Existing MPSA HolderApproval of Offshore Mining
Guidelines90 days-TBDLobby costs?As per meeting with MGB Approval
and release of ECC60 days after approval of Guideline2,500,000TBD2
Million - LCI500k support activitiesPresentation and approval by
the Mining Industry Coordinating Council (MICC) of the MPSA
amendment90 daysTBDTBDCompletion of Declaration of Mining Project
Feasibility (DMPF) Documents and Approval60 days after release of
ECC5,500,000TBD4.8M Axceltechs700k Support activities, filing fees,
chargesApproval of the MPSA AmendmentTBDTBDTBDBy DENR Secretary as
recommended by MGB Director9
Massart Philippine Group
Exploration Permit Renewal and CommitmentsBUDGET REQUESTDETAILS
AMOUNT TOTAL EP Application Renewal Fee (18,404.9422
hectares)Please note that previous calculation is only for
14,907.831 hectares, thus the discrepancy PhP300/ hectare 5,521,500
Community Development and Environmental Commitments2013-2015
4,000,000 EP Application for Relinquished AreaIn case of the order
of mandatory relinquishment (3,497.1112 hectares)PhP300/ hectare
(+) Other related Activities2,000,000 Total 9,521,500 Unresolved
2014 to 2015 Commitments and Obligations2014 Personnel and
Consultants ObligationsBUDGET REQUESTDETAILS AMOUNT TOTAL
(PhP)2014-2015 Outstanding Massart Obligations (Advance by
SJ)Personnel (Sept 2014 June 2015)3,910,000 Atty. Edsel Victor B.
Velasco (Legal Consultant)February June 2015 PhP50,000/ month
800,000 AXCELTECHS, Inc.(Technical Consultant)February June 2015
PhP100,000/ month 1,600,000 Total 6,310,000 14BudgetMassart Mineral
Resources Inc.
Budget for MPSA/SMP from March 2015 2015 to 30 October 2015
(Include accrued fees)
BUDGET FROM H.K.EXPENSESAmount (Php)Total (Php)Monthly Amount
(Php)Subtotal Amount (Php)TOTAL AMOUNT (PHP)COMMENTSA.) Government
Fees:1.) EP-Renewal Fee (2nd)4,472,400.005,521,500.00Amount is for
18,404.9422 hectares (Previous calculation is for 14,907.831
hectares only)2.) New EPA for relinquished area1,398,800.00P300/ha
for 3,497.1112 hectares in case of the mandatory reliquishment
later (new company)3.) DMPF application
fee600,000.00600,000.00other fees4.) Occupation Fee 2015 (Sept
2014-Sept 2015)1,490,800.001,490,800.00only Php Sept 2013-Sept 2014
is paid (Php 2,300,625.00)7,612,300.00B.) Professional Fees:
(ACCRUED)1.) Axceltechs, INC-EP
Renewal-accrued900,000.00100,000.001,600,000.00P100,000/month (Feb
2014-Jun 2015)2.) Lawyer 50%
accrued800,000.0050,000.00800,000.00P50,000/month (Feb 2014-Jun
2015)2,400,000.00C.) Management Fees: (ACCRUED)1.) Mr. Juico Team
-Outstanding2,028,000.00530,000.00Christmas expenses; domestic and
foreign travel c/o PEJ -Outstanding338,000.003,380,000.00monthly
fees Sept 2014-Jun 2015
@P338k/month3,910,000.006,310,000.0013,922,300.00TOTAL OVERDUE FEES
+ ACCRUED EXPENSES
OPEXI.) Office Operational Expenses:1.) Monthly Salaries
-Management and Operations Manila (6
months)2,366,000.00546,000.003,276,000.00monthly fees of ALL
EMPLOYEES incl taxes July - Dec 20152.) Negros Office (Budget) (6
months)1,050,000.00150,000.00900,000.00office rental, staff salary,
other expenses3.) Tektite Office (Budget) (6
months)1,050,000.00136,000.00816,000.00monthly dues, utilities,
parking, staff salary4.) Tektite Office Space Rental and deposit
60,000.00720,000.00office space rental Jan 1 to Dec 31,
2015892,000.005,712,000.00III.) Consultants fees:1.) Axceltechs,
INC-ECC application
(estimate)1,000,000.00100,000.00600,000.00P100,000/month (July -
December 2015)2) Legal Fees50,000.00300,000.00P50,000/month (July -
December 2015)150,000.00900,000.00II.) Negros LGU and OTHER FEES1.)
Local Work Program up to ECC
(estimate)1,500,000.00n/a1,500,000.00For the period of 2015 -
20162.) Local Work Program up to DMPF
(estimate)2,000,000.00n/a2,000,000.00For the period of 2014 -
20152.) Axceltechs,INC-DMPF application (30% paid, 70%
remains)3,332,000.00n/a3,332,000.00as per existing
contract6,832,000.00IV.) Successful fee for release of MPSA/MPP1.)
TBD-upon issue of MPSA/MPP A budget needed A budget
needed23,988,000.00
1,042,000.0013,444,000.00MONTHLY OPEX27,366,300.00OVERALL
TOTAL
StaffPositionAllowancesPhilip JuicoPresident and Management
Team370,000.00370,000.00Ma. Teresita TomasLiason
Officer40,000.00Dolly BautistaAdministrative
Associate30,000.00Ivygail Angob - SecretarySecretary15,000.00
455,000.00WITH TAXES546,000.00
Office ExpenseMonthlyComments
Tektite Monthly
Dues30,000.00Electricity10,000.00Aircon8,000.00Water3,000.00PLDT10,000.00Cable
5,000.00Petty Cash/ Mobilization20,000.00Representation and
Networking Expense50,000.00
136,000.00
BudgetMassart Mineral Resources Inc.Budget for MPSA/SMP from
March 2015 2015 to 30 October 2015 (Include accrued fees)
BUDGET FROM H.K.EXPENSESAmount (Php)Total (Php)Monthly Amount
(Php)Subtotal Amount (Php)TOTAL AMOUNT (PHP)COMMENTSA.) Government
Fees:1.) EP-Renewal Fee (2nd)4,472,400.005,521,500.00Amount is for
18,404.9422 hectares (Previous calculation is for 14,907.831
hectares only)2.) New EPA for relinquished area1,398,800.00P300/ha
for 3,497.1112 hectares in case of the mandatory reliquishment
later (new company)3.) DMPF application
fee600,000.00600,000.00other fees4.) Occupation Fee 2015 (Sept
2014-Sept 2015)1,490,800.001,490,800.00only Php Sept 2013-Sept 2014
is paid (Php 2,300,625.00)7,612,300.00B.) Professional Fees:
(ACCRUED)1.) Axceltechs, INC-EP
Renewal-accrued900,000.00100,000.001,600,000.00P100,000/month (Feb
2014-Jun 2015)2.) Lawyer 50%
accrued800,000.0050,000.00800,000.00P50,000/month (Feb 2014-Jun
2015)2,400,000.00C.) Management Fees: (ACCRUED)1.) Mr. Juico Team
-Outstanding2,028,000.00530,000.00Christmas expenses; domestic and
foreign travel c/o PEJ -Outstanding338,000.003,380,000.00monthly
fees Sept 2014-Jun 2015
@P338k/month3,910,000.006,310,000.0013,922,300.00TOTAL OVERDUE FEES
+ ACCRUED EXPENSES
Massart Mineral Resources Inc.
Operating and Maintenance Expense (6 months) I.) Office
Operational Expenses:1.) Monthly Salaries -Management and
Operations Manila (6
months)2,366,000.00546,000.003,276,000.00monthly fees of ALL
EMPLOYEES incl taxes July - Dec 20152.) Negros Office (Budget) (6
months)1,050,000.00150,000.00900,000.00office rental, staff salary,
other expenses3.) Tektite Office (Budget) (6
months)1,050,000.00136,000.00816,000.00monthly dues, utilities,
parking, staff salary4.) Tektite Office Space Rental and deposit
60,000.00720,000.00office space rental Jan 1 to Dec 31,
2015892,000.005,712,000.00III.) Consultants fees:1.) Axceltechs,
INC-ECC application
(estimate)1,000,000.00100,000.00600,000.00P100,000/month (July -
December 2015)2) Legal Fees50,000.00300,000.00P50,000/month (July -
December 2015)150,000.00900,000.00II.) Negros LGU and OTHER FEES1.)
Local Work Program up to ECC
(estimate)1,500,000.00n/a1,500,000.00For the period of 2015 -
20162.) Local Work Program up to DMPF
(estimate)2,000,000.00n/a2,000,000.00For the period of 2014 -
20152.) Axceltechs,INC-DMPF application (30% paid, 70%
remains)3,332,000.00n/a3,332,000.00as per existing
contract6,832,000.00IV.) Successful fee for release of MPSA/MPP1.)
TBD-upon issue of MPSA/MPP A budget needed A budget
needed23,988,000.00
1,042,000.0013,444,000.00MONTHLY OPEX
27,366,300.00OVERALL TOTAL
StaffPositionAllowancesPhilip JuicoPresident and Management
Team370,000.00370,000.00Ma. Teresita TomasLiason
Officer40,000.00Dolly BautistaAdministrative
Associate30,000.00Ivygail Angob - SecretarySecretary15,000.00
455,000.00WITH TAXES546,000.00
Office ExpenseMonthlyComments
Tektite Monthly
Dues30,000.00Electricity10,000.00Aircon8,000.00Water3,000.00PLDT10,000.00Cable
5,000.00Petty Cash/ Mobilization20,000.00Representation and
Networking Expense50,000.00
136,000.00
