BEMC to Review Coal Mining Operations

Pasig—(PHStocks)—Brixton Energy and Mining Corporation (BEMC), a wholly owned subsidiary of Philex Petroleum Corporation (PSE: PXP), has recently been adversely affected by the significant drop in coal prices. In response to this unexpected change in market conditions, it has been decided to undertake a detailed review of the operations and prospects of the coal mining project under Coal Operating Contract No. 130 located at Diplahan, Zamboanga Sibugay.

It is anticipated that this review could take up to six (6) months to complete. While this assessment is being undertaken, BEMC has determined that it would be prudent to suspend underground mining operations.

In the meantime, activities will be confined to maintenance and repair of the coal mine, and to processing and marketing of existing coal inventory.