The Anglo-American Philippines Exploration, Inc.(AAPEI) and Manila Mining Corp. (MMC) have signed a joint venture agreement for the exploration of the Kalayaan Copper Gold Project in Anislagan, Placer, Surigao del Norte, the Department of Environment and Natural Resources (DENR) announced today.

DENR Secretary Angelo T. Reyes said the joint venture agreement was disclosed during the project presentation by Anglo-American officials to the DENR yesterday. The project presentation is part of the process towards DENR’s issuance of exploration permit.

In its presentation, Anglo-American said that under the joint venture agreement, it will explore the area covering 285.96 hectares as an extension of its Bayugo copper-gold prospect. The venture will spend US$10 million for the exploration work in the next two years.

The Bayugo-Kalayaan copper-gold prospect is similar in nature and occurrence with the well-known and adjacent Boyungan Copper-Gold Porphyry Deposit that Anglo-American is exploring under a joint venture agreement with Philex Mining Corp.

“The Bayugo-Kalayaan and Boyungan are another potential world-class gold-copper projects that could benefit the people of Surigao del Norte in particular, and the country in general,” Reyes said.

Kalayaan is within the area covered by the renewal of the exploration permit of MMC, with an area of 2,462 hectares in Placer, Surigao del Norte.

Anglo-American Philippines is a local subsidiary of Anglo American Plc., an Australian mining corporation which has existing gold operations in Africa, South and North America, and Australia. It has invested US$42 million in the Philippines on mineral exploration since 1997.

MMC, a company listed on the Philippine Stock Exchange, has been operating gold-copper mine in CARAGA for the last several years.

January 19, 2007