challenging context for a large mining operation. Both islands arebiodiversity rich but don’t have high income levels.

Interrelated Policies

Bacani points out that like the operators of Ambatovy in Mada-gascar, Intex has developed for the Mindoro Nickel Project interre-lated policies that aim to protect and enhance the environmentwhile ensuring social economic benefits for local populations.

He says that in order to come up with outstanding environ-mental results, Intex will institutionalize adaptive, advanced envi-ronmental management plans to ensure compliance with the high-est standards throughout all stages of the Mindoro Nickel Project(development, operations, closure).

“We will strive to prevent, minimize, and alleviate environ-mental impacts of its activities within and around the mine site andproduction facilities. By engaging the company’s stakeholders on aregular basis, conducting public information and consultation, andadopting an open door and transparency policy, we hope to be ableto anticipate and manage environmental risks.”

“We take pride in our innovative design and process that couldpotentially set new standards for the nickel industry, as a moderngreener mining operation,” he adds. “Our Project will have thelowest carbon footprint of any nickel mine in the world, and willadopt a sequential mining method that will cause only a temporarydisturbance in a limited area. The mining operation will affect onlya small area at any time and will contain and regulate all waterfrom within such sites during operation. After cessation of opera-tions the area will have a regulated and rehabilitated terrain shapewhere landslide risks are minimized with huge revenues that willaccrue to the LGUs, Mindoro will have sufficient funds to build in-frastructure projects that will help mitigate the perennial floodingproblem in many parts of the island.

If other countries and jurisdictions have embraced responsibleminerals development to meet their citizens growing needs – andhave succeeded in doing so -- Mindoro could certainly do thesame, with similarly positive results. Mining, if done correctly, canbring economic and social development to Mindoro while protect-ing the environment for future generations of Mindoreños.

Among the world’s largestundeveloped Nickel depos-its, discovered and definedby Intex and its affiliates.

Nearly 345 million tons totallaterite resources hold some2 million tons nickel withfurther upside potential.Over 20-years production at53,000 tons nickel per an-num.

Projected as one of the mostcost-efficient per poundnickel producers with lowcarbon footprint for the lifeof operations.

Potential valuable by-products include ammoniumsulfate fertilizer, chromite,cobalt, scandium, and ironas well as carbon-free,steam-generated electricalpower.

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 NewsJune 2014 Vol. 2 No.2

Inside this issue:

INTEX NEWSOfficial Monthly Publication of Intex Resources Phils., Inc.

JOSELITO R. BACANIGeneral Manager

ROCKY G. DIMACULANGANVP for Communications

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

MARTIN G. REGISPEDRO P. PAQUEOCReDO Officers

LEO A. DELA CRUZDesign and Layout

website: ww.intexresources.com.ph

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

A big opportunity to grow

Like Madagascar, Mindoro will benefit from Responsible Mining

Page 4 INTEXRESOURCES PHILIPPINES INC.

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Intex and partnersplant some 200,000trees in Mindoro

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Mindoro island has the same opportunity to progress by leaps and bounds that other min-eral-rich jurisdictions have seized. This opportunity – through more jobs, the booming of indus-tries to support agriculture, higher income for local government units, more responsive commu-nity projects, among others, all without compromising the environment – comes in the form ofresponsible minerals development.

“Intex Resources Philippines, Inc. (IRPI), through its Mindoro Nickel Project, commits to bring thisopportunity to the residents of Occidental Mindoro and Oriental Mindoro if we are given the chance todevelop this Project,” Joselito Bacani, IRPI General Manager, says. “We’ve seen how other nations,some of which are islands like Mindoro such as Madagascar, are embracing responsible minerals devel-opment.”

Like Mindoro, Madagascar isalso an island, although a muchbigger one. Located off theeastern coast of the African con-tinent, Madagascar is also hometo an abundance of plants andanimals found nowhere else onearth. The island nation is like-wise rich in agricultural re-sources, including fishing andforestry. It is among the world’sprincipal suppliers of vanilla,coffee, lychees and shrimps. Keymineral resources include vari-ous types of precious and semi-precious stones. Madagascar currently provides half of the world’s supply of sapphires. Like Mindoro,Madagascar holds important reserves of minerals such as nickel and cobalt.

MINDORO NICKELPROJECT BENEFITS:

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Intex and partners ...(From page 3) Mindoro could follow ...(From page 3)

Intex Philippines has new GM

Intex has appointed Mr. Joselito Bacani as the new General Managerof the Philippine operations and the Mindoro Nickel Project. He has morethan 17 years of experience in the Philippine mining industry from abroad spectrum of projects, such as large nickel projects and the Tam-pakan Copper Project. In addition to operations management of nickelprojects, his areas of expertise include environmental issues, tailings damsolutions, project planning, permitting, social development and stake-holder engagement, as well as community development.

Through a long career within in the industry, Mr. Bacani has achieved major achievements in sev-eral areas, such as receiving a Presidential Mineral Industry Environmental Award for two companieshe has worked with. He has also acted as a consultant to the Chamber of Mines of the Philippines,working on projects for Benguet Corp, TVI Resource Development, and Apex Mines. From 1997 to2002, Bacani worked on the Tampakan Copper project.

In addition to a strong personal track record in several leading companies within the Philippinemining industry, Joselito has also worked as a manager on some of the largest nickel projects in thePhilippines. He has served as Resident Manager for Zambales Diversified Metals Corp / ENK Plc, man-aging all Mineral Production Sharing Agreements (MPSA) for the Acoje Nickel project. Before joiningIntex, Mr. Bacani was Resident Manager in LnL Archipelago Minerals Inc, where he was responsible fornickel mine direct shipping operations. In Intex, he succeeds Atty. Leo Gamolo, who has decided topursue opportunities outside the Company. Bacani holds a Bachelor of Science in Chemical Engineer-ing from Mapua Institute of Technology. I

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Says Ramil Baldo, the Mangyan chairman of Intex’s IP partnerSADAKI: “Sa kabuuan, malaki ang nagiging pakinabang ngbawat katutubo na kabahagi ng programang LEAF. Nakapag-tanim kami ng mga puno tulad ng mahogany at kawayan atmga punong namumunga tulad ng kape, cacao, lansones, ram-butan, durian, at niyog. May itinanim din kami na pinya at ka-moteng kahoy na pagkukunan namin ng mas madaliang ani.Ang mga ito ang aming pagkakikitaan habang di pa namu-munga ang mga prutas. Ang pagtatanim ng mga puno ang si-yang magiging susi para maibalik ang mga nawalang puno atmanumbalik ang pagiging luntian ng aming lugar. Kung mag-papatuloy ang programang ito, maibabalik ang mga puno nanawala dahil sa pagkakaingin at pag-uuling ng mga katutubo.(Overall, IPs involved in LEAF are benefitting tremendously fromthe program. We were able to plant trees like mahogany andbamboo, as well as fruit-bearing trees like coffee, cacao, lan-zones, rambutan, durian, and coconut. We were also able toplant pineapple and cassava which we can harvest earlier.These will be our sources of income while the other trees havenot borne fruits yet. The planting of trees will be key to refores-tation and to the re-greening of our area. If this program willcontinue, we will see the return of trees that were lost becauseof the slash-and-burn farming and charcoal-making practices ofIPs).”

For its reforestation efforts in Mindoro, Intex was adjudged1st runner up in the Mining Forest Contest of the Department ofEnvironment and Natural Resources (DENR) last year.

Recognizing that agriculture simply cannot respond to its peo-ple’s growing needs, Madagascar opened its doors to several majorprojects in the mining, oil and gas sectors that are anticipated togive a significant boost to the country’s economy. Among theseprojects is the Ambatovy nickel/cobalt mining project.

At US $5.5 billion-plus, the Ambatovy project is the largest in-vestment project in Madagascar’s history. Designed to operate forat least 29 years, Ambatovy will have a major, positive, long-termimpact on Madagascar’s economy. Over its lifecycle, Ambatovy willcontribute hundreds of millions of dollars to the government ofMadagascar in taxes, royalties, duties, and other payments. andDuring operations, Ambatovy will create approximately 15,000 di-rect, indirect, and induced jobs that will support – using a conserva-tive multiplier effect ranging from 4 to 5 – 65,000 to 75,000 familymembers.

“Intex’s Definitive Feasibility Study shows Mindoro Nickel can bea major low-cost producer of refined nickel for decades to come,”Bacani explains. “Its primary advantage is its location: close to theworld’s most expansive nickel markets in South East Asia. A 3-stagedevelopment plan estimates the total cost of the Mindoro NickelProject to be US $2.8 billion – about half the cost of the AmbatovyProject.

3-Stage Development Plan

”Today’s resources of nearly 345 million dry metric tons – host-ing 2 million tons of nickel – make Mindoro Nickel the largest de-posit in Philippines controlled by a single group. The Project poten-tially offers over 20 years production at over 50,000 tons of nickelper annum.

“Our community partnership and sustainable developmentinitiatives will focus on, among other things, ensuring that as manyof our employees as possible are hired locally and initiating appro-priate training programs,” Bacani continues. “We will seek to de-velop appropriate sourcing and procurement systems so that localfirms are able to bid successfully for company contracts. Wherepossible, we will ensure that host communities can access andbenefit from any infrastructure that is improved or created by theproject. Moreover, we will invest in projects that address the de-velopment needs of its host communities in partnership with themand other agencies such as the government.

“The biggest concern of sectors who oppose mining in general,and the Mindoro Nickel Project in particular, is the potential nega-tive impact of mining activities on the environment,” he says. “LikeMadagascar, Mindoro has factors that combine to create a

EMPLOYMENT

8,000 jobs during the construction phase, and around 2,000 dur-ing the operation phase.

Using Ambatovy’s multiplier factor of four to five – representingthe number of indirect jobs the project will create – the projectwill benefit from 32,000 to 40,000 family members during theconstruction phase; and from 8,000 to 10,000 family membersduring the operation phase.

REVENUES AND OTHER FINANCIAL BENEFITS

Total of P2.6 billion to the government on an annual basis. Of thisamount, nearly close to P1 billion will go to host local govern-ment units.

Mangyan indigenous peoples hosting the Project will receiveyearly Royalties amounting to P105 million.

The Project is mandated to spend close to P60 million annuallyfor Community and Social Development, and P695 million forEnvironmental Protection.

DOWNSTREAM ECONOMIC ACTIVITIES

Transportation

Tricycles, jeepneys, buses, cargo trucks will be in demand to ferrypeople and goods around the island; especially in the communitywhere the processing operation will be located.

High demand for drivers, bus and jeepney conductors, mechan-ics, truck helpers and others. Spare parts outlets, repair shopsand other related businesses will also benefit from the increaseddemand.

A pier that will be constructed to initially bring goods for the min-ing operation and for shipping out exports will be a hub of eco-nomic activities. Food and maritime support services will sproutas sea travel is expected to be more active. It is quite possiblethat eventually, other companies in the island will grow and willuse the services of domestic and foreign ships and barges thatwill dock in this pier.

Food

Restaurants are expected to sprout. In addition to the expectedcarenderias, which will cater to the growing population of work-ers; higher end dining halls will also be in demand especially forexpatriates and tourists.

Agriculture

There will be an expected increase in demand for agriculturalproducts, particularly vegetables, poultry, etc. With ships readilyavailable to transport local farm produce, farmers will have awider market, hence encouraging more production.

Others

During the construction phase, a significant percentage of theconstruction disbursements and operating expenses will accrueto the Mindoro provinces.

Improvements to infrastructure will also automatically happenin the provinces.

MINDORO NICKEL PROJECT BENEFITSPage 2 INTEXRESOURCES PHILIPPINES INC. MINDORO NICKEL NEWS Page 3Mindoro could be ...(From page 1)

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Since 2007

Intex, partners plant some 200,000 trees in Mindoro

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Intex Resources Philippines, Inc. has furtherstrengthened its reputation as the biggest for-ester in Mindoro Island by planting more treesover a wider area in 2013.

In its latest annual report submitted to Minesand Geosciences Bureau Region IV-B DirectorRoland de Jesus, Intex indicated that last yearthe company, together with its Mangyan indige-nous peoples (IP) and people’s organizationpartners, planted a total of more than 100,000seedlings within a total of over 200 hectares ofland in the provinces of Occidental Mindoro andOriental Mindoro.

Some 69,000 of these seedlings that wereplanted within a 138-hectare area within Intex’sMindoro Nickel Project tenement area are cred-ited to the National Greening Program of Presi-dent Benigno Aquino III. The tenement strad-dles the municipalities of Victoria in OrientalMindoro and Sablayan in Occidental Mindoro.

“Not only do the trees provide added security against flooding and erosion, they will also, intime, bear fruits that our partners can sell to augment their family income,” Pestaño says.

These figures bring the total number of seedlings that Intex has either distributed or planted to nearly 196,500 over an aggregatearea of more than 288 hectares of land since the company accelerated the planting of trees in Mindoro in 2007. These numbers are ontop of the close to 5,500 seedlings that were planted over 11 hectares since 1998.

Intex’s reforestation initiative – with a high survival rate of 95.0% -- is a major component of the company’s Livelihood Enhancementthrough Agro-Forestry (LEAF) program.

“Through LEAF, we are able to encourage our Mangyan and peoples organization partners who are into farming to better utilize theirland and ascertain sustainable income,” Andy Pestaño, Intex Community Relations and Development Office (CReDO) manager, says.“The LEAF system allows the income of our partner-farmers to grow over time as more crops reach harvesting age. Our nurseries –two in Oriental Mindoro and three in Occidental Mindoro – produced some 470,000 seedlings for our partner stakeholders who comeprimarily from the areas where our tree planting activities take place. Since they help us tremendously in these activities, it is only fit-ting that they reap the benefits of LEAF.

“Not only do the trees provide added security against flooding and erosion, they will also, in time, bear fruits that our partners cansell to augment their family income,” Pestaño adds.

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