San Miguel : SMC - San Miguel interested in $1-b AES power plants

• SAN MIGUEL CORPORATION

Disclosure Department

3rd Floor, Tower One and Exchange Plaza Ayala Triangle, Ayala Avenue

Makati City

September 26, 2017

Attention : Mr. Jose Valeriano B. Zuno Ill

OIC-Head, Disclosure Department

Gentlemen:

We reply with respect to the following news article which was posted in manilastandard .net on September 25 , 2017. The article reported in part that:

"Conglomerate San Miguel Corp. expressed interest in the power assets of American company AES Corp. in the Philippines worth $1 billion, a top executive said Monday.

'Yes, [we are interested in] Masinloc...We are joining,' San Miguel president Ramon Ang said, referring to Masinloc coal-fired power plant.

San Miguel is one of the country's most aggressive players in the power industry. The company along with 15 to 20 local and foreign groups were looking at the sale of AES assets which would likely be completed this year.

Industry players said the transaction was expected to cost $1 billion. AES is selling a 51-percent stake in Masinloc Power Partners Co. Ltd., which owns the 630-megawatt Masinloc coal-fired power plant in Zambales province and the 335-MW expansion of the facility due for completion in 2019.

By way of response to the Exchange, we advise that the Company , through its wholly­ owned subsidiary, SMC Global Power Holdings Corp., is participating in the sale by AES Corp. of its 51% stake in Masinloc Power Partners Co., Ltd., the entity which owns the 630 megawatt Masinloc coal-fired power plant in the Province of Zambales, as confirmed by Mr. Ramon S. Ang, President and Chief Operating Officer of the Company, and reported in the aforementioned article.

Very truly yours,

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Corporate Information Officer

40 SAN MIGUELAVENUE, MANDALUYONG CITY, 1550 METRO MANILA, PHILIPPINES TEL. NOS.(632) 632·3000