Geological Survey and initial exploration works to determine the presence of magnetite sand in the lateritic soil rich area were conducted by Engr. SAMUEL V. SENDON, a licensed geologist and the results are as follows:

• TOTAL AREA FEASIBLE FOR MINING                                                     1,528.4960 hectares
• ESTIMATED VOLUME OF DEPOSIT
(at an average Depth of 5.5 M/sqm)                                                               15,284,960 cuM
• ESTIMATED GEOLOGICAL RESERVE
(at a density Of 3MT/cuM)                                                                               84,067,280 MT
• ESTIMATED MAGNETITE SAND RESERVE
• (62.92% FE and 62.38% FE)
(at 30% recovery)                                                                                                75,660,552 MT

• (as per ASSAY RESULT FROM MGB dated June 26, 2009 and May 31, 2010)

• (as per ASSAY RESULT FROM MGB dated June 26, 2009 and May 31, 2010)

Immediately after the issuance of ECC-RO5-1007-0172 ON 26 July 2010, the UDMDC invested US$20million, more or less, to set up a processing plant and a private causeway with Certificate of Registration and Permit to Operate No. 432, issued by the Philippine Ports Authority on 24 February 2012.

Initial study and testing of the processing of magnetite sand thru washing produced an approximate volume of 1,000MT per day; hence at a normal 6 working days per week or 312 working days per year, the mine life for the area is estimated at 242 years.

As a second option, the mining area and the properties are located along the Pacific Ocean. UDMDC had applied with the Philippine Tourism Authority (PTA) to declare the area as a Tourism Zone; hence another feasible option is to develop the property as an Eco-Tourism Park.