ANGLO

PHILIPPINE HOLDINGS CORPORATION

"Helping Build the Filipino Future"

The Company owns 11.67% of Atlas Consolidated Mining & Development Corporation. For 2008, Atlas posted a net income of P129 million on a' consolidated basis, but reflected a net loss of P0.81 million at the parent company level.

Atlas subsidiary, Carmen Copper Corporation {CCC}, which only commenced commercial production in October 2008, posted a net income of P692 million in 2008. CCC, which resumed production at the rate of 20,000 tons per day [tpd] of ore processed, plans to increase production to A2,000 tpd by mid-2010.  Since the beginning of 2009 to date, Carmen Copper has made a total of six shipments of approximately 5,000 metric tons of copper concentrates per month, or a total of 30,000 metric tons with an aggregate value of US$ 33 million.

Another Atlas subsidiary, Berong Nickel Corporation {BNC}, suffered a net loss of PM5 million in 2008 due to depressed laterite market and nickel price throughout the year, coupled with extreme wet weather conditions during the first half of 2008. With improving weather conditions, BNC recently announced the resumption of direct ore shipping operations to its foreign buyers. 

The Company now owns 25.62% of United Paragon Mining Corporation (UPMC) after converting its receivables into new UPMC equity. For 2008, UPMC posted a net loss of P35.8 million. The company holds gold mining tenements in the Bicol area of Southern Luzon. In view ofthe sustained high gold price in the world markets, UPMC is actively pursuing plans to resume gold mining operations in partnership with foreign and local groups.

In Oil Exploration, the Company continues to hold

participating interests in the highly prospective oil

exploration areas ot Service Contract 6A {Octon}, where

the consortium has obtained a final 15 - year term extension of the contract using the work program and budget proposal of Vitol CPC; Service Contract 47 [Sulu Sea], where Tap Oil is undertaking the reprocessing of  3D seismic data to rectify data quality issues which will

aid in the selection of the drilling prospects; and, Service Contract 53 (Mindoro}, where Pitkin Petroleum recently completed a magneto-telluric survey preparatory to running its seismic program in the area. The Company also maintains interests in Service Contract 74 {Tara}and the SWAN Block, both situated in offshore Northwest Palawan.

In addition to its oil exploration assets, the Company has reclassified its investment in The Philodrill Corporation from Held-for-Trading to Investment in Associate effective as of the 3rd quarter of 2008. For 2008, Philodrill registered a net income of P15 million.

The Company maintains a I5.79% interest in the North Triangle Depot Commercial Corporation (NTDCC), which owns the Ayala-managed TriNoma commercial center at the North Triangle in Quezon City. For 2008, NTDCC posted a net income of P51 million and recorded an occupancy and leased-out rates of 95% and 97%, respectively. With NTDCC`s first full year of operations, the Company has reclassified its investment in NTDCC from Investment and Advances to Investment in Associate as of July 2008.

Shang Properties, Inc. (SPI), where the Company maintains 4.5% equity, registered a consolidated net income of P1.1 billion in 2008 behind strong condominium sales and high rental revenues. The St. Francis Shangri-La Place is about 83% sold-out and 76% completed, while currently in the project pipeline are the Fort Bonifacio and One Shangri-La Place projects. Effective as of the 3rd quarter of 2008, the Company has reclassified its investment in SPI from Held-for-Trading to Investment in Associate.

The Company also continues to maintain a 15.79% interest in MRT Development Corp. [MRTDC], which owns the development rights over the perimeter lot pads around the TriNoma commercial center. MRTDC generates revenues from concessionaire rentals and advertising fees in the MRT stations.