Indophil Resources press statement on EO 79

Indophil Resources advises its shareholders that the Philippine Government has issued a new and long-awaited Mining Policy in the form of an Executive Order under the authority of the President, His Excellency Benigno S. Aquino III.   The new Executive Order, based on a broadly-communicated six-point Mining Policy, addresses 22 agenda items which include a detailed direction requiring local government ordinances to be brought into line with the Philippine Constitution and national laws.   This conformity issue is of considerable importance to Indophil, its shareholders and the Tampakan Copper-Gold Project, in which Indophil holds a 37.5 percent interest under a Financial and Technical Assistance Agreement (FTAA) with the Philippine Government.    The new Executive Order in part says: “The Department of Interior and Local Government and the LGUs (Local Government Units) are hereby directed to ensure that the exercise of the latter’s powers and functions is consistent with and conform to the regulations, decisions and policies already promulgated and taken by the National Government relating to the conservation, management, development and proper utilization of the State’s mineral resources . . .”   In 2010, and under pressure from anti-mining and anti-foreign investment lobby groups, the province of South Cotabato in which the Tampakan deposit is located, adopted a local ordinance that purports to ban open pit mining. The most environmentally-friendly and economical method of mining the Tampakan deposit is by open pit mining, a form of mining method permitted under Philippine national law. The issuance of the new Executive Order should be a catalyst to removing the open pit-mining ban in South Cotabato.   Indophil’s CEO, Richard Laufmann, has welcomed the new Mining Policy and the National Government’s commitment implied in the section of the Executive Order that directs LGUs to conform to national law.   “Indophil commends the National Government for confirming the primacy of Philippine national mining law. This directive is a valuable step on the path to achieving the necessary approvals for the Tampakan Project from both the national and provincial governments,” Mr. Laufmann said.   “The Tampakan Project study process has been comprehensive and world-class. It has involved extensive community and government consultation, addressed the technical, environmental and community concerns, and detailed the many benefits for stakeholders.”   Mr. Laufmann went on to say: “The issuing of this Executive Order is a strong sign that the Philippines welcomes those who advocate responsible mining. This initiative, led by President Aquino, will be appreciated by those seeking to invest in the future of the Philippines.”   Despite a direction that existing mining contracts and agreements shall be subjected to possible renegotiation if mutually acceptable to government and the contractor, international investors are expected to welcome the Philippine Government’s reaffirmation that existing agreements, contracts, rights and obligations will be honored.   “Indophil looks forward to working with the Aquino Administration to follow through on this new Mining Policy and delivering a development-friendly investment environment; one that will allow us, our partners and other companies to do business successfully, while at the same time contributing to the growth of the Philippine economy and the Government’s fight against poverty,” Mr. Laufmann added. — Indophil Resources