Organizational Governance

Philex established their own corporate Code of Ethics

Philex is dedicated in doing business in accordance with the highest standards
of ethics.

A. Integrity - We practice honesty and sincerity in word and in deed. We honor

commitments and speak up when situation warrants acclamation or correction.

B. Teamwork - We listen to and consider ideas and points and views of others.
We extend help and respect roles of others in doing the job. We acknowledge
team effort in success and collective responsibility over failure.

C. Work Excellence - We produce work results in a timely, accurate and safe

manner. We learn, innovate, amend and improve services and processes, and
consistently deliver higher quality of work.

D. Respect for Individual - We practice gender and cultural sensitivity. We show

authentic concern to promote individual welfare. We examine own biases and
behaviors to avoid judgmental reactions.

E. Corporate Responsibility - We advocate our business as a responsible

mining company. We manifest core values in both professional and personal
circumstances, and uphold the code of conduct or equivalent policies.

F. Social & Environmental Responsibility - We show genuine concern to host

communities and improve quality of life of community members. We support
and practice environmental, safety and health guidelines of the company. We
actively participate in Company's development and environmental programs.

Human Rights

Philex is committed to conduct its business in fair, honest and responsible manner, and
with due regard for the dignity and human rights of every individual, in accordance with
applicable laws in jurisdictions.

Values dignity of every individual

Recognize basic human rights under the Philippine Constitution and Universal
Declaration of Human Rights
 For the Stockholders, Philex have their Investor Relation Program. These
includes:
Disclosure & Transparency
Philex Mining Corp. is committed to the highest standards of
disclosure, transparency and fairness in information distribution.
The company provides the public with strategic, operating and
financial information through adequate and timely disclosures to
the regulatory authorities, such as the Philippines Securities and
Exchange Commission (SEC) and the Philippine Stock Exchange
(PSE).
Investor Meetings and Engagements
The CEO, the CFO, and the Investor Relations Head, make
themselves available throughout the year for meetings with
institutional investors through pre-arranged company and site
visits, and teleconferences. Attendance in local and international
investor conferences, corporate days and non-deal roadshows,
where and when appropriate, is also being considered to expand
the companys investor base and coverage. The Investor Relations
desk, likewise, directly communicates with these investors through
one-on-one meetings, calls and written communications.
Furthermore, the companys Investor Relations Division has been
strengthened and refocused to address concerns of the investment
community.

Labor Practices

The Company respects the dignity and human rights of its employees, including the rights
guaranteed by existing labor laws. PMC promotes safety, non-discrimination,
environmental awareness, and commitment in the workplace, and supports programs that
champion the engagement and development of employees.

Recognizing the importance of human capital to achieve its short- and long-run goals,
Philex continues to invest in its people through various programs and initiatives.

Training and Development

 Each employee received, on average, 16 hours of various training and
development sessions which were designed and implemented at the
operations level to the support local requirements.

Equal Opportunity and Human Rights

Conduct its business and treat its employees in accordance with the
applicable laws (Labor Code of the Philippines).

Health and Safety Programs

Allow it to undertake projects safely and without endangering the health
of employees, host communities, indigenous peoples, and those who may
be directly or indirectly affected by its mining activities.

Environment

Environmental Management
Philex believes that the conservation of the bio-physical resources is good business
ethics. Environmental Programs are implemented in all phases of mining starting from
exploration, mine development, operations, and decommissioning.

ISO 14001 Environment Management System Certified

 Reforestation
Prepared to stabilize slopes and control erosion and are common practices
in all our areas.
Padcal Project
Today, more than 2,000 hectares have been reforested with some seven
million trees with a survival rate of 90%. Average annual cost for Padcal
mines reforestation program is P3.4M. Padcal Operations Environmental
Management System (EMS) sustained its ISO 14001: 2004 Certification.
It has been a consistent awardee of the governments Best Mining Forest
Award among others.
Silangan Project
Areas immediately rehabilitated are drilling areas and the sides of the
roads. The forest nursery used as a major source of planting materials, at
our Silangan Exploration project has the capacity to produce 100,000
seedlings annually.

As a result of our aggressive and continuous effort for sound

environmental management, Philex has been a consistent winner of
various awards, such as the prestigious Adopt-A-Mountain, Adopt-A-
Mining Forest Program of the government, and as well as the
Presidential Mineral Industry Environmental Awards (PMIEA).

Sibutad Project
Under the care and maintenance stage, Sibutad project continuously
maintains the reforestation, rehabilitation, and other environmental
measures in the site.
Bulawan Project
 As of December 2011, Bulawan project was able to reforest 26.4219
hectares with total dispersal of 23,811 mangium seedlings.

A rehabilitated silt pond in Bulawan, Sipalay City, Negros Occidental

Aside from reforestation, rehabilitation of previously disturbed areas, various

erosion control, water monitoring, and waste segregation are implemented to
ensure compliance with applicable laws that are concerned with the environment
protection.
Water Management and Monitoring
 o Conducted daily by house personnel and quarterly by the government-led
Multi-Partite Monitoring Team (MMT) for the operating mined and the
Community Technical Working Group for the exploration projects.

Regular effluent monitoring

o Conducted at strategic sampling points in and outside of the mine camp.
Air Quality Management
o Done through the use of fog cannon to suppress dust dispersal, while used
oil is sold to accredited buyers of the government.
Tailing ponds
o Used to store the waste made from separating minerals from rocks, or the
slurry produced from tar sands mining
o First and second tailing ponds have been decommissioned and are
undergoing soil reconditioning as part of our rehabilitation. Tailing pond
no. 1 is now fully revegetated with various land uses, such as grazing,
bamboo propagation, and a mini-golf course.
Ecological waste management program that involves the sorting out of household
wastes within the mine camp.

Fair Operating Practices

Whistle-Blowing Policy
o This policy is issued to provide a system and venue for the proper
submission, handling, or resolution of employees complaints or
disclosures regarding violations of corporate governance rules,
questionable accounting or auditing matters, and offenses covered by the
companys existing Code of Discipline or equivalent policy. This policy,
likewise, contains procedures to protect from any retaliation an
employee/person who reveals illegal/unethical behavior by other.

Conflict of Interest Policy

 o This policy ensures that all work-related decisions, actions or inactions of
Philex Mining's directors, officers, employees, and consultants are above-
board and based on sound business principles and judgment, and devoid of
bias or partiality.

Policy on Gifts, Entertainment, and Sponsored Travels

o This policy provides the general guidelines for directors, employees, and
consultants on how to handle gifts, entertainment, and sponsored travel
offered by third parties.

Vendor Relations Policy

o This policy seeks to uphold the highest professional standards of business
practices, core values, and ethics in the company's dealings with its
suppliers in the procurement of products and services.

Policy on Dealings in Company Shares of Stock

o This policy as amended provides guidelines and disclosure requirements
on dealings of corporate insiders in shares of stock. The amendment
required all concerned directors, officers and/or employees to report to
Compliance Officer all respective dealings in company shares within two
(2) business days and for the Company to disclose the same within three
(3) business days from date of transaction.

Related Party Transaction (RPT) Policy

o This Policy ensures proper review, approval, and reporting of transactions
between the Company and Related Parties. This similarly provides the
definition of Material and/or Significant RPT based on threshold amount
over specific period, and the role of Corporate Governance and Audit
Committee with respect to the same. As matter of policy and procedure, all
Material and/or Significant RPT shall be subject to review and
 endorsement by the Corporate Governance Committee and with the
concurrence of all Independent Directors prior to approval by the
Board.

Directors and Officers' Orientation and Training Policy

o This Policy seeks to formalize the Companys practice on the orientation
and training programs for directors. It applies to all BOD members and
officers with the rank of Vice President (VP) and above.

Board Performance Appraisal/ Assessment Policy

o This policy enables the Board to periodically identify overall strengths and
specific areas for improvements based on results of assessment, and to
obtain important feedback and views from the members of the Board
which will collectively form part of Companys overall strategy,
performance and/or future directions or endeavors.

Consumer Issues

Provide quality as necessary products and retain long-term relationships with the
customer.

Accessibility and convenience

Account security
Speedy services
Better benefits
Financial advice

Community Involvement and Development

Health
 Community Development Principles

Philex is guided by the following principles and commitments on how

to work with and for the community in order to help in their
development and eventually contribute to nation building:

o Commits to improve the quality of life of partner communities

by working towards sustainable resource management by
combining local knowledge and skills with appropriate
technologies;

o Acknowledges that communities are capable of making

responsible decision and that their active and meaningful
participation is essential in addressing poverty and
environmental degradation;
 o Believes that partnership among stakeholders and the sharing
of resources, capabilities, and responsibilities are key to
community development and sound environmental
management; and

o Believes that resource conservation and community

development projects should be geared towards self-reliance.

We care for the health and well-being of the people as we implement different health
programs suitable in the communities where we are.

Padcal Mines Operating Padcal mines

o Philex Sto. Nino Hospital caters to our employees, their

families, and the host and neighboring communities.
o Forty minutes away from Baguio proper, Sto. Nino Hospital is
more than a blessing to residents of the bustling Padcal mining
community and its neighboring towns catering to more than
6,000 patients a year on the average, it serves 350 out-patients
daily who enjoy free consultation, medicines and treatment.

The Health program also conducts regular medical & dental clinics, trainings on health
awareness, first-aid and herbal medicines for communities that are far from our hospital.
 Silangan Exploration Project

o Various medical and health projects are also being

implemented in Silangan exploration project including cataract
and cleft palate operations, community blood banking, and
medical and dental outreaches. This is catering catering to
1,200 beneficiaries, all coming from the seven barangay of
Placer Municipality.
 Bulawan Project
o The Bulawan project, despite being in a Care and Maintenance
status, also continues to cater for community health care
through various medical missions and by providing medical
equipment to the local Community Health Centers

EDUCATION--Philex educates communities

The company believes that proper education will help ensure a quality life for them.
 Padcal Mines
o Philex implemented Adopt-A-School Program by helping renovate local
schools in our host and neighboring communities.

o In Padcal Mines camp, free private elementary education is given at the

Philex Mines Elementary School. To date the elementary school has more
than 100,000 graduates since 1960s.

o The likewise private Philex Saint Louis High School is heavily

subsidized by the company having graduated around 40,000 students since
1970s.

o A Special Program for Employment of Students (SPES), which is a 25-day

summer job, is offered to high school and college students to help them in
their financial needs.

o The Technical Vocational Scholarship is also offered to high school

graduates who cannot enter college level.
Silangan Exploration Project
 Our exploration project provides scholarships for non-indigenous
people and indigenous people who are likewise given special tutorial
lesson.
Additional classroom donated by SMMCI added another learning avenue to student
of then Mahukdam Primary School enabling the school to cater now to grades 5 and
6 students as well.
 Finishing touches are put to the Cantugas Cultural Minorities School donated by
SMMCI in Brgy. Cantugas, Mainit that caters to more than a hundred students.
Philex believes that a prerequisite for learning is a conducive environment that is
why we strongly invest in the rehabilitation of schools.
Bulawan Project
Day Care Centers were constructed to help prepare pre-schoolers for
regular schooling.
Nutrition programs are also being implemented in schools to help address
child malnutrition in the communities as well as school improvement and
materials.
 LIVELIHOOD

We help in equipping people in the communities with skills and knowledge in

socio-economic and entrepreneurship for self-reliance and help in transforming them as
partners for the progress and development of their communities through implementation
of different livelihood programs and enterprise development.
The program aims to make Philexs employees, their families and neighboring
communities economically reliant and self-governing.
Padcal Mines
o Appropriate technology to process local agricultural products is also being
taught in the communities. Other simple income-generating projects, like
honey bee keeping, mushroom production, and loom weaving also benefit
the communities.
 o As a preparation for mine decommissioning, entrepreneurial skills and
business opportunities are undertaken at the companys Community-Based
Business Technology Centers (CBTC). This program includes meat
processing, production of livestock, aquaculture and coffee production.

Silangan Project

o The Silangan exploration project implements a livestock dispersal program,

vegetable farming, and backyard gardening and practical skills trainings, such as
carpentry, masonry, and plumbing.

o SMMCI shows support in community endeavors through the livestock

development, a part of the natural farming project under the H.E.L.P. (health,
education, livelihood and public infrastructure) program of the Community
Relations of SMMCI. Primary beneficiary is the KASANAG
people's organization based in Brgy. San Isidro.
PUBLIC INFRASTRUCTURE
We invest on the improvement of public infrastructure to help communities have better
access to basic services by implement infrastructure projects in partnership with the host
and neighboring communities. Consultation processes take place between the local
people and the company for the planning and implementation of infrastructure projects.

o Padcal Mines

Strengthening people's organizations such as NKBB (Nagkahiusang

Kababaihan sa Brgy. Boyongan--United Women of Brgy. Boyongan) has
always been at the top of SMMCI's priority with backyard gardening as
their pilot project

o Silangan Project

Philex Mining makes sure that its host and neighboring communities gets
consistent and reliable water supply by partnering with the community in
constructing water in-take boxes across the community
.

Philex Group Foundation, Inc.

Recognizing the effect of deplete its ore reserves and cease operations on the
communities that will be left in Padcal, the company has concerned itself with how to
sustain the communitys socio-economic development. PGFI hopes to fulfill its strategic
vision of being the top-of-mind partner in social investments that enhances stakeholders
capabilities for sustainable socio-economic activities.

And in line with its mission-vision on corporate, social and environmental

responsibility, Philex Mining wanted to expand its reach beyond the host
and neighboring communities. Thus, it opted to create a corporate
foundation with the objective of complementing and leveling up its
various social projects being carried out through the Social Development
and Management Program (SDMP).

Through Philex Group Foundation, Inc. (PGFI), Philex Mining will be able to expand its
socio-economic and environmental interventions to other municipalities and provinces.
Includes programs on education, environment, and livelihood. These
program are intended to help mining and host and neighboring
communities become economically independent and able to sustain
themselves even after the life of the mine.
Aims to provide alternative and additional sources of income to the
Foundations stakeholders.
Boost the agri-business of the highland farmers from subsistence to
commercial-level production. This means providing the needed technical,
organizational, and business training to empower the stakeholders, as well
as highlighting environmentally sustainable farming techniques.
Stakeholders of this foundation are Philex Mining employees and their
dependents, whose skills need to be re-tooled in preparation for their
 eventual retirement from the company, other stakeholders are the members
of the host and neighboring communities.
To ensure the success of the livelihood programs, the Foundation has
established strategic partnerships with like-minded institutions and
organizations that can provide the necessary expertise for their
implementation.
Involved in book donations to public school libraries, tree planting for
environment and economic benefits, computer donations to public schools,
and calamity assistance in conjunction with other corporate foundations
under the MVP Tulong Kapatid.