a) Copy/ies of all agreements duly executed that are relevant to the transaction

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October 17, 2008 ATTY. PETE M. MALABANAN Head, Disclosures Department Philippine Stock Exchange Tektite Building, Ortigas Center Pasig City Dear Atty.

1 October 17, 2008 ATTY. PETE M. MALABANAN Head, Disclosures Department Philippine Stock Exchange Tektite Building, Ortigas Center Pasig City Dear Atty. Malabanan: We write in compliance with the PSE s request for the following additional information pertaining to the acquisition of 60% of First Gen Hydro Power Corporation (FGHPC) from First Gen Corporation (First Gen): a) Copy/ies of all agreements duly executed that are relevant to the transaction The document is still being finalized and will be submitted to the PSE upon its execution. b) Reason/purpose of the sale It will enable EDC to expand its renewable power generation portfolio to hydroelectric power projects, with the intent to jointly develop with First Gen future non-geothermal renewable power generation projects. c) Terms and conditions of the transaction Terms and conditions of the transaction will be contained in the copy of the agreement to be submitted. d) Terms and nature of payment/settlement method Terms and nature of payment/settlement method will be contained in the copy of the agreement to be submitted.

3 Board of Directors Energy Development Corporation 4 th Floor, Building 5 Energy Center, Merritt Road Fort Bonifacio, Taguig City 15 October 2008 Punongbayan & Araullo 20th Floor, Tower 1 The Enterprise Center 6766 Ayala Avenue 1200 Makati City, Philippines T F to 07 Gentlemen: You have requested Punongbayan & Araullo (P&A) to provide you with its opinion as to the fairness, from a financial point of view, of the enterprise value of First Gen Hydro Power Corporation ( First Gen Hydro or the Company ), a subsidiary of First Gen Corporation. First Gen Hydro owns and operates the 112 Megawatt Pantabangan-Masiway Hydroelectric Power Plants (PAHEP and MAHEP) located in Pantabangan, Nueva Ecija. The Energy Development Corporation ( EDC ) plans to acquire an equity interest in First Gen Hydro. Procedures Performed In arriving at the opinion set forth below, P&A performed the following activities: 1. Obtained the audited financial statements of First Gen Hydro for the years ended December 31, 2007 and 2006 and conducted an analysis of the said financial statements; 2. Conducted a site visit of the PAHEP and MAHEP in Pantabangan, Nueva Ecija; 3. Conducted interviews with the key personnel of First Gen Hydro in charge of the operations of the PAHEP and MAHEP; 4. Obtained and analyzed the relevant results of the technical due diligence report issued by Snowy Mountain Engineering Corporation (SMEC) on the PAHEP and MAHEP dated May 9, 2008; 5. Obtained and analyzed the relevant results of the Pantabangan Masiway Hydro Power Plants Study dated October 3, 2008, a market study conducted by Mercados- Energy Markets International (Mercados EMI-Spain), the Energy Consultant engaged by EDC for the transaction;

4 2 6. Obtained and analyzed the due diligence report on the 2007 financial statements of First Gen Hydro issued by KPMG Manabat Sanagustin & Co. dated June 27, 2008; 7. Obtained and analyzed the projected financial statements of First Gen Hydro for the period January 1, 2008 to December 31, 2037 furnished to us (on behalf of EDC and First Gen Hydro), including the assumptions from which they are based; 8. Obtained and analyzed the unaudited financial statements of First Gen Hydro as of June 30, 2008; 9. Prepared a financial model independent from the projections of First Gen Hydro and EDC; and, 10. Conducted a valuation of First Gen Hydro using the Net Asset Value (NAV), Discounted Cash Flow (DCF) and Comparable Transactions Analysis (CTA) Methods. Limitations P&A assumed that all financial and other information contained in the various sources of information for this engagement is accurate and complete. With respect to the financial projections of First Gen Hydro provided by EDC and First Gen Hydro, P&A assumed, for purposes of this opinion, that the projections have been reasonably prepared on bases reflecting the best available estimates and judgements of EDC and First Gen Hydro at the time of their preparation as to the future performance of the Company. P&A further assumed, with your consent, that any material liabilities (contingent or otherwise, known or unknown) of First Gen Hydro are as set forth in the financial statements. We were not engaged to make, nor we made, an independent evaluation or appraisal of the assets or liabilities (contingent or otherwise) of First Gen Hydro nor had we been furnished with any such evaluation or appraisals. Our opinion is based upon regulatory, economic, market and monetary conditions existing on the date thereof. Results of our work Under the term sheet agreed between EDC and the Company, the enterprise value of First Gen Hydro was estimated at US$240 million. This is below the range of values we have derived amounting to US$262.9 million to USD$312.4 million, as discussed in the accompanying valuation report. On the basis of and subject to the foregoing, we are of the opinion that the estimated enterprise value of First Gen Hydro in the term sheet is favorable to EDC from a financial point of view. * * *

5 3 This report and the accompanying valuation report are being submitted to the Board of Directors of EDC. We understand that this report may also be disclosed to the Securities and Exchange Commission (SEC), the Philippine Stock Exchange (PSE), and other relevant government agencies. Very truly yours,

SECURITIES AND EXCHANGE COMMISSION

C01630-2018 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER 1. Date of Report (Date of earliest event