LETTER OF PROGRESS BILLING

We are pleased to submit our Progress Report for the month of March 2022 in order for us to collect our first progress payment for the job done. Our contract price for Supply & Delivery of Const. Materials, Glass Works, Deep Well Drilling Venetian Blind, CCTV, Air Condition & Internet Connection (with Installation) for NIA-Regional Office, Balintawak, Pagadian City (LOT 3) under Contract No. NIAREG9-121421-COBCY2021058 (GOODS) is THREE MILLION TWO HUNDRED THOUSAND PESOS, [ Php 3, 200, 000. 00 ]. On February 23, 2022, the 15% Mobilization Fund in the amount of Four Hundred Eighty Thousand Pesos (Php480, 000. 00) was collected. There is a remaining balance of TWO MILLION SEVEN HUNDRED TWENTY THOUSAND PESOS (Php2, 720, 000. 00). At this moment of writing, 57. 80% of the work has been completed. Thus, we expect to get at least ONE MILLION EIGHT HUNDRED FORTY NINE THOUSAND SEVEN HUNDRED TWENTY FOUR PESOS AND NINETY FOUR CENTAVOS [ Php1, 849, 724. 94 ] in order for us to proceed with the construction. The project started on February 8, 2022, and immediately have started drilling. Along the way, we have encountered cracks at 91 meters and 105 meters depth of the borehole. Losing of water reserve was inevitable during the process. As such, our team continued drilling at 130 meters borehole depth. As soon as our technician detected water on March 6, 2022, we then conducted a Pumping Test to assess the water volume. With a pump setting at 120 meters, the first 30 minutes discharge was 12. 2 Gallons per minute (GPM). Then after an hour, the discharge reduced to 4. 6 GPM. Unfortunately, it dropped dramatically at a consistent volume of 1. 6 GPM for the last 24 hours. Given this result, our team determined to drill deeper up to 150 meters depth for possible increase of discharge rate for the next few days and proceed again to continuous pumping test. In the meantime, we are experiencing a serious cash flow problem which is affecting our ability to perform the drilling works. As you know, any delay in borehole drilling will have a negative impact on the quality of our services. In line with this, may we respectfully request your good office for the release of our First Progress Billing. We have attached in this request the S-curve & Construction Schedule and the Statement of Work Accomplished (SWA). Your immediate attention and favorable action on this matter will be highly appreciated. Thank you and best regards. Respectfully yours,