Energy Development : Clarification of news article entitled “FPHC shuns coal plants, to double wind power capacity”

October 15, 2008

Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

May 24, 2016

JANET A. ENCARNACION

HEAD, Disclosures Department The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City

Dear Ms. Encarnacion:

We write with respect to PSE's request for clarification as regard the news article entitled "FPHC shuns coal plants, to double wind power capacity" published in the May 24, 2016 issue of Manila Bulletin. The article reported in part that:

"First Philippine Holdings Corporation, a member of the Lopez group of companies, is shunning coal power plants and commits to invest $450 million to double its wind power capacity in the next three years.

. . . .

In an interview after the meeting, FPHC president Francis Giles B. Puno said that, instead of cheaper coal plants, they will instead double their wind power capacity from the existing 150 megawatts (MW) to 300 MW.

'One megawatt costs between $2.5 million and $3 million, so we are going to spend about $450 million for doubling our capacity, that was just the same amount we have spent for our existing 150 MW wind power facility,' Puno said.

He added that the expansion project will start as soon as subsidiary Energy Development Company's (EDC) application for feed-in tariff (FIT) is approved by the government. 'Feed-in tariff' or FIT is a set of incentives granted to renewable energy investors in the country.

EDC currently operates a wind power facility through its unit, EDC Burgos Wind Power Corporation located in Ilocos Norte, with a 150 MW capacity. 'We aim to double it in the next three years,' Puno said.

. . . ."

We confirm that FPH Chairman and CEO Federico R. Lopez, made the statement "… not to build, develop or invest in any coal-fired power plant. …" With respect to doubling wind power capacity, this is likewise the intention moving forward over the next three (3) years.