AbaCore Capital Holdings, Inc.ABA

RESULTS OF REGULAR BOARD MEETING

During the regular board meeting at Montemaria, Batangas, the operations team presented results of operations of the Corporation for the month of August, which included the consummation of the sale of 3.1 hectare portion of the Inosluban Property to Eternal Gardens which resulted in a net gain Php 99,382,370 for the Corporation. Said sale is part of a series of transactions over the entire property which should all be completed within the current calendar year.

The above consummated transactions contributed to an increase in the income of the Corporation bringing total net income of the Corporation from operations to Php 384.6 million as of 31 August 2023 (unaudited). The financial impact of the results of operations was embodied in pro-forma financial statements (unaudited) presented by the Chief Financial Officer to the Board together with its corresponding endorsement report from the audit committee.

Thereafter, the Vice Chairman also presented a proposal for a share buy-back program for the Corporation to adopt based on the following rationale:

• Rationale: considering the unwarranted drop in the price of ABACore shares trading in the PSE compared to its book value (P/BV =0.31) and income potential of its projects and investments (P/E = 2.25), the Company believes that its stock is terribly undervalued and disproportionate to the health of its business and as a holdings and investments Company, the Company knows that its own stock is a good investment to make as its fundamentals are very strong

After due deliberation and discussion, the Board approved the following
(1) adoption of a buy-back program policy.
(2) delegation to the executive committee to determine the specific terms and conditions for the implementation of said buy back program. The executive committee shall report the same for confirmation to the Board not later than thirty (30) days from the meeting herein.

In addition to the Board Meeting of the Corporation, the following subsidiaries likewise held board meetings:
• Montemaria Asia Pilgrims, Inc. (Montemaria)
• Abacus Coal Exploration and Development Corporation (Abacoal) – joint stockholders and board of directors meeting

During the Board Meeting of Montemaria, the following events occurred / resolutions were passed:

1. A report on the joint venture with Highsource was noted. The report included positive developments on the following:
• building of new roads and new facilities together with improved maintenance and repairs of existing facilities
• operations of the restaurant facility
• refurbishment of the existing hotel
2. The Chairman also indicated that the facility is now charging minimum parking and other fees that goes into a maintenance fund for the continuous upkeep of the property
3. 30 new members into the Club were welcomed and after confirmation of full payment, their membership applications were endorsed for proper processing.

During the joint stockholders and board of directors meeting of Abacoal, the following events occurred / resolutions were passed:

1. Authority to amend or novate the agreement with third parties to comply with the requirements of the Department of Energy
2. Authority to increase authorized capital stock of the Corporation to Php 2 billion to accommodate the required valuation and investments into the Coal Project
3. Authority to negotiate with investors for an expansion of the Coal Project to include possible industrial park, export processing zones, and power plants

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