G.

If the item in D and E is pervasive and material:

Basis for Adverse Opinion - EXPLORATION
As explained in Note 10 and presented in the Statement of Financial Position, the company has incurred
cost amounting to 348, 152, 639 relating to exploratory drilling and activities (Exploratory and Evaluation
Asset), however, the cash outflow relating to the said account only reflects 298, 731, 356. In result, there
was an understatement of 49, 421, 283 in the companys liabilities. In addition, The Companys Property,
Plant and Equipment has a transfer in amount of 517, 410, 659 in Note 9. The transfer of these assets has
been disclosed with respect of its value, however, there was a lack of supplemental explanation with its
nature whether it is a completed construction in progress or not. Due to this, many elements of the
accompanying financial statements would have been materially affected

Adverse Opinion
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion
paragraph, the financial statements do not present fairly the financial position of Semirara Mining
Corporation as at December 31, 2013, and of their financial performance and cash flows for the year then
ended in accordance with Philippine Financial Reporting Standards.

Emphasis of Matter
We draw attention to Note 18 to the Financial Statements. This refers to Related Party Transaction as to
the sale of a real estate property with a value of 83, 981, 000 in exchange for 84, 808, 500 to be used in
subscribing shares of Southwest Luzon Power Generation Corporation (SLPGC). Its outcome could not be
presently be determined. Our opinion is not qualified in respect to this matter.

G. Material but not pervasive

PPE
Basis for Qualified Opinion
The companys Property, Plant and Equipment has a transfer in amount of 517, 410, 659 in Note 9. The
transfer of these assets has been disclosed with respect of its value, however, there was a lack of
supplemental explanation with its nature whether it is a completed construction in progress or not. Also, As
explained in Note 10 and presented in the Statement of Financial Position, the company has incurred cost
amounting to 348, 152, 639 relating to exploratory drilling and activities, however, the cash outflow
relating to the said account only reflects 298, 731, 356. In result, there was an understatement of 49, 421,
282 of liabilities.

Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph,
the financial statements present fairly, in all material respects, the financial position of Semirara Mining
Corporation as at December 31, 2013, and of its financial performance and its cash flows for the year then
ended in accordance with Philippine Financial Reporting Standards.

Emphasis of Matter
We draw attention to Note 18 to the Financial Statements. This refers to Related Party Transaction as to
the sale of a real estate property with a value of 83, 981, 000 in exchange for 84, 808, 500 to be used in
subscribing shares of Southwest Luzon Power Generation Corporation (SLPGC). Its outcome could not be
presently be determined. Our opinion is not qualified in respect to this matter.

F.
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Semirara Mining Corporation as of December 31, 2013, and of its financial performance and its cash flows
for the year ended in accordance with Philippine Financial Reporting Standards.