San Miguel : unit eyes hydro project in Tarlac

ISAN MIGUEL CORPORATION

August 2, 2017

The Philippine Stock Exchange, Inc.

Disclosure Department

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

Makati City

Attention: Mr. Jose Valeriano B. Zuno Ill

OIC-Head, Disclosure Department

Gentlemen :

We reply with respect to the news article entitled "San Miguel unit eyes hydro project in Tarlac" posted in manilastandard.net on August 1, 2017. The article reported in part that:

"Strategic Power Development Corp., a unit of conglomerate San Miguel Corp., has sought a service contract with the government to develop a planned 500-megawatt Bulsa pumped storage hydro project in Tarlac province, documents from the Energy Department show .

The company also has a pending application to build a combined 310-MW hydro power project in Apayao in the Cordilleria Administrative Region. This includes the 300-MW Pudtol 1 and the 10-MW Pudtol 2 hydro projects.

A separate project is the 10-MW Cupis run-of-river also in Apayao .

Strategic Power earlier expressed interest in the development of the San Roque Upper East Pumped Storage hydropower project with a capacity of 600 MW and the 400-MW San Roque Upper West Pumped Storage.

By way of response to the Exchange, we confirm that, as reported in the aforementioned article, Strategic Power Development Corporation ("SPDC") is interested in developing the 500-megawatt Bulsa pumped storage hydro project in Tarlac province, subject to the issuance of the relevant governmental approvals and consents.

Very truly yours,

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FERDINAND K. CONSTANTINO

Corporate Information Officer

40 SAN MIGUEL AVENUE, MANDALUYONG CITY, 1550 METRO MANILA, PHILIPPINES TEL. NOS.[phone]