Philippine Hybrid Energy Systems, Inc.

A Company of CMC (Asia) Inc.

Ref. No.: March 5, 2012

Dir. Allan L. Leuterio Regional Director Region IV-B-MIMAROPA Department of Environment and Natural Resources
L&S Bldg., Roxas Blvd., Ermita, Manila

Subject

Request For Validity Extention of ECC No. ECC-4B-105-ORMIN-4110-2007

Dear Director Leuterio:

In reference to our Wind Energy Power Systems (WEPS) Project in Puerto Galera, Oriental Mindoro covered by ECC No. ECC-4B-105-ORMIN-4110-2007 which is due to expire on October 1, 2012, Philippine Hybrid Energy Systems Inc (PHESI) would like to respectfully apply for an amendment and extension of its validity date. At present, PHESI have already accomplished significant and important events for this WEPS project, as follows: 1. Secured resolutions of endorsement and support from the Sangguniang Panlalawigan ng Oriental Mindoro (Resolution No. 011-2007), Sangguniang Bayan ng Puerto Galera (Resolution No. 07-002) , and from the Sangguniang Barangays ng Balatero, Baclayan and Tabinay; 2. Secured wind rights from Dept of Energy through a signed PreCommercial Contract, which was converted into a RE Service Contract (RESC) by DOE, in accordance to the Implementing Rules and Regulations (IRR) of Republic Act 9513 Renewable Act of 2008, in March 14, 2011; 3. Secured and signed a Memorandum of Agreement (MOA) with the Tribal Community of Iraya Mangyans of Puerto Galera; 4. PHESI has completed the Free, Prior and Informed Consent (FPIC) Process and the NCIP Regional Office has received the Provincial Report of NCIP Oriental Mindoro Provincial Office;

Suite 2406, 24th Floor, The Orient Square Building, F. Ortigas Jr. Road, Ortigas Center, Pasig City, Metro-Manila, Philippines 1605 E-Mail: phesi@cmcasia.net & nickyvillasenor@yahoo.com Telephone Nos : (632) 638 8901 & 02 Facsimile: (632) 638 8899

5. Granted by the Board Of Investments (BOI) of the Department of Trade & Industry (BOI-DTI) Pioneer Status; 6. Signed a Transmission Service Agreement (TSA) with National power Corporation (NPC); 7. Awarded the full Equipment, Procurement & Construction (EPC) and the Operation & Maintenance Contract to Gamesa Eolica S. L. Unipersonal last October, 2011; 8. Conducted Grid Impact Study (GIS); 9. Commissioned Endesa Carbono & AENOR, duly accredited UNFCCC experts and consultants to undertake the Project Design Description (PDD) and Validation to enable UNFCCC registration before end-2012; 10. Completed Soil Investigation Test and Preliminary Engineering Design; 11. Have started to finalize ROW agreements with some private property owners; and, 12. Continuously undertaking financial presentations, discussions and meetings with various investment houses, high valued net worth individual investors, energy companies, and financial institutions for equity investments and project financing.

As you can take note, PHESI is already in its tail-end of its project development. With the requested validity extension, PHESI can use the additional time extention to complete the documentary requirements to secure and complete Financial Closing (FC) and thereby, enable us to issue to GAMESA the much awaited Notice-To-Proceed so that GAMESA and their sub-contractors can mobilize to the project site and start construction activities. Moreover, the environmental setting discussed in our Initial Environmental Examination (IEE) is the same and we are very willing to accommodate inspections if verification of data in the IEE report is necessary/required. We look forward to your kind and favorable consideration of our amendment for extention request. Maraming Salamat Po at Mabuhay Po Kayo!

Suite 2406, 24th Floor, The Orient Square Building, F. Ortigas Jr. Road, Ortigas Center, Pasig City, Metro-Manila, Philippines 1605 E-Mail: phesi@cmcasia.net & nickyvillasenor@yahoo.com Telephone Nos : (632) 638 8901 & 02 Facsimile: (632) 638 8899

Very truly yours, Philippine Hybrid Energy Systems, Inc.

NICANOR S. VILLASEOR, III President and COO

cc:

Hon. Alfonso V. Umali Governor Province of Oriental Mindoro Hon. Rodolfo G. Valencia st Representative, 1 District Province of Oriental Mindoro Mr. Armando T. De Rossi Chairman and CEO

Suite 2406, 24th Floor, The Orient Square Building, F. Ortigas Jr. Road, Ortigas Center, Pasig City, Metro-Manila, Philippines 1605 E-Mail: phesi@cmcasia.net & nickyvillasenor@yahoo.com Telephone Nos : (632) 638 8901 & 02 Facsimile: (632) 638 8899