NATIONAL GRID CORPORATION OF THE PHILIPPINES News Release 22 August 2012

Joint inspection committee confirms progress of NGCPs Agro-Forest Tree Plantation Project in Samar The three-year Agro-Forest Tree Plantation Project of the National Grid Corporation of the Philippines (NGCP) in Samar is being implemented as planned. This is the assurance of a joint inspection committee, which recently checked on the progress of the said project done in harmony with the Tree Replacement Program for the benefit of the Municipality of Paranas and the neighboring communities of Calbayog City in Samar. With its primary role of maintaining and operating power transmission networks all over the Philippines, NGCP is committed to construct and expand towers, lines, and other high-voltage facilities. As a socially and environmentally responsible corporation, NGCP made sure plants and trees affected by the construction of the Wright-Calbayog Transmission Project will be replenished. Together with the Department of Environment and Natural Resources (DENR)-CENRO and PENRO and the members of the Pabanog Small Farmers Association Inc. (PASFA), NGCP has agreed to a reforestation program that will aid the nearby communities and barangays. The commitment was sealed by the signing of a Memorandum of Agreement (MoA) on June 6, 2011. On June 21 this year, the parties conducted a joint inspection on the accomplished activities under the Agro-Forest Tree Plantation Project. The coordinating bodies assessed the fulfillment of the Maintenance and Protection clauses that were stipulated in the MoA. Maintenance and Protection include clearing/ringweeding, cultivation and fertilization as well as fireline maintenance. As the DENR-endorsed developers of the project, the PASFA has prepared a Work and Financial Plan to effectively implement the said Tree Replacement Program over a three-year period. NGCP committed to plant 1,667 forest tree seedlings per hectare and 625 grafted fruit tree seedlings per hectare. The plantation consisting of a total of 10,002 forest tree seedlings and 5,696 grafted fruit tree seedlings will be maintained and protected at the Pabanog Watershed in Paranas, Samar. Concurrent to its service improvements and facility expansions, NGCP continues to engage in various community and environmental efforts to ensure a more sustainable life for the communities it serves. ### (Photos on the next page)

National Grid Corporation of the Philippines (NGCP) Quezon Ave. cor. BIR Rd., Diliman, Quezon City, Philippines Telephone +632 981-2143 / +632 981-2142 Fax +632 922-2684 E-mail corpcomm@ngcp.ph Website: www.ngcp.ph Twitter: @NGCP_ALERT Facebook: www.facebook.com/1NGCP

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Representatives of the Department of Environment and Natural Resources (DENR)-CENRO and PENRO, Pabanog Small Farmers Association Inc. (PASFA), and the National Grid Corporation of the Philippines (NGCP) conduct site inspection of the agro-forest tree plantation area in Brgy. Pabanog, Paranas, Samar.

NATIONAL GRID CORPORATION OF THE PHILIPPINES

The area of Mr. Galicano Andoque, one of the Pabanog Small Farmers Association Inc. (PASFA) beneficiaries, is planted with assorted fruit tree seedlings. Narrow lines indicated the stakes where seedlings are planted.

Fireline maintenance is part of the National Grid Corporation of the Philippines (NGCP) commitment to the Agro-Forest Tree Plantation Project in Samar.

NATIONAL GRID CORPORATION OF THE PHILIPPINES

The area of Mr. Lope Bacnotan Sr., one of the Pabanog Small Farmers Association Inc. (PASFA) beneficiaries, is planted with banana, papaya, and other crops.