NARRATIVE REPORT

BACKGROUND:

The subject land of the present controversy are parcels of land located at
District of Lapuz-Lapaz, Municipality of Iloilo (now La Paz, Iloilo City) particularly
identified are as follows:

1. Lot 1, Pcs-5341 Amd. 2 with an area of 11,373 Sq.M. covered by TCT No.
T-87943;

2. Lot 3, Pcs-5341 Amd. 2 with an area of 5,543 Sq.M. covered by TCT No.
T-87944;

3. Lot 4, Pcs-5341 Amd. 2 with an area of 17,523 Sq.M. covered by TCT No.
T-87845;

4. Lot 2 (LRC) Pcs-19608 with an area of 92,606 Sq.M. covered by TCT No.
T-87946; and

5. Lot 3 (LRC) Pcs-16908 with an area of 640 Sq.M. covered by TCT No.
T-87947.

All registered to Spouses Candelaria Dayot and Edmundo D. Dayot.

A CONTRACT TO SELL was executed between TRADERS ROYAL BANK as

the SELLER and SPS. CANDELARIA DAYOR & EDMUNDO D. DAYOT to
purchase the properties as follows:

1. Lot 3834, Iloilo Cadastre containing an area of 36,201 Sq.M. covered by

TCT No. T-84234;

2. Lot 1-A, Parcel 2, Plan II-7000 containing an area of 29,469 Sq.M.

covered by TCT No. T-84233; and

(Note: Lots 1-A and 3834 were consolidated per Court Order dated July
21, 1975 and subdivided into Lots 1, 2, 3, 4 & 5, Pcs-5341 Amd. 2. That
Lot 2 with an area of 17,000 Sq.M. previously sold to ESSO (Phil.) and a
portion of Lot 5 with an area of 10,265 Sq.M. previously sold to Shell
Chemicals (Phil.), are hereby excluded from above description.).

3. Lot 6153, Iloilo Cadastre containing an area of 93,955 Sq.M. covered by

TCT No. T-84235.

(Note: A parcel of land which is a portion of above with an area of 4,655

Sq.M. already sold to Shell Chemicals Co., (Phil.), is now owned by said
company, and its hereby excluded from above description.)

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On November 20, 1990 a DEED OF ABSOLUTE SALE was executed by and
Between TRADERS ROYAL BANK, referred to as the VENDOR and SPS.
CANDELARIA DAYOT and EDMUNDO D. DAYOT, referred to as the VENDEE,
which are more particularly described as follows, to wit:

1. Transfer Certificate of Title No. T-87889

Lot 1, Pcs-5341 Amd. 2 with an area of 11,373 Sq.M.
(a portion of consolidation/subdivision of Lot 1-A, Parcel 2, II-7000 and Lot
3834, Iloilo Cadastre);

2. Transfer Certificate of Title No. T-87890

Lot 3, Pcs-5341 Amd. 2 with an area of 5,543 Sq.M.
(a portion of consolidation/subdivision of Lot 1-A, Parcel 2, II-7000 and Lot
3834, Iloilo Cadastre);

3. Transfer Certificate of Title No. T-87891

Lot 4, Pcs-5341 Amd. 2 with an area of 17,523 Sq.M.
(a portion of consolidation/subdivision of Lot 1-A, Parcel 2, II-7000 and Lot
3834, Iloilo Cadastre);

4. Transfer Certificate of Title No. T-87892

Lot 2, (LRC) Pcs-19608 with an area of 92,606 Sq.M.
(a portion of consolidation/subdivision of Lot 6153, Iloilo Cadastre and Lot
5, Pcs-5341 Amd. 2);

5. Transfer Certificate of Title No. T-87893

Lot 3, (LRC) Pcs-19608 with an area of 640 Sq.M.
(a portion of consolidation/subdivision of Lot 6153, Iloilo Cadastre and Lot
5, Pcs-5341 Amd. 2).

FINDING BASED FROM THE SURVEY DATA:

On June 17, 1964 an Amended plan Pcs-5341 Amd. 2 was approved by the
then Director of Lands Nicanor G. Jorge as surveyed for Philippinbe Railway Co.,
Et Al of land situated in the District of Lapus City of Iloilo, province of Iloilo, island
of Panay (a consolidation and subdivision of Lot 1-A, II-7000 and Lot 3834, Iloilo
Cadastre covered by Oct Nos. 2875 (0-31889) and 2859 (0-19942) registered to
Philippine Railway Co., respectively. As follows:

1. Lot 1 with an area of 11,373 Sq.m. in the name of National Government;

2. Lot 2 with an area of 17,000 Sq.m. in the name of ESSO Standard
Eastern, Inc.;
3. Lot 3 with an area of 5,543 Sq.m. in the name of Philippine Railway Co.;
4. Lot 4 with an area of 17,523 Sq.m. in the name of Philippine Railway Co;
and
5. Lot 5 with an area of 14,231 Sq.m. in the name of Shell Co. of the Phils.
LTD.

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 Lot 3962, Iloilo Cadastre surveyed for The Philippines Railway Co. was
subdivided under Plan Bsd-1153 into the following portion:

1. Lot 3962-A = Lot 6153, Iloilo Cadastre;

2. Lot 3962-B = Lot 6154, Iloilo Cadastre;
3. Lot 3962-C = Lot 6155, Iloilo Cadastre;
4. Lot 3962-D = Lot 6156, Iloilo Cadastre;
5. Lot 3962-E = Lot 6157, Iloilo Cadastre;
6. Lot 3962-F = Lot 6158, Iloilo Cadastre; and
7. Lot 3962-G = Lot 6159, Iloilo Cadastre.

On September 8, 1975, Plan (LRC) Pcs-19608 a consolidation and

subdivision made for The Shell Chemical Co. (Phil.) Inc. of Lots 6153, Iloilo
Cadastre and Lot 5, Pcs-5341 Amd. 2 was approved by Commissioner Gregorio
Bilog, Jr. of the Land Registration Commission (now Land registration Authority)
described in OCT No. 2876 (0-21064) and TCT No. T-39677 issued in favor of
Philippine Railway Co. of land situated in the District of Lapus City of Iloilo,
Province of Iloilo, island of Panay, as follows:

1. Lot 1 (LRC) Pcs-19608 with an area of 14,940 Square Meters;

2. Lot 2 (LRC) Pcs-19608 with an area of 92,606 Square meters; and
3. Lot 3 (LRC) Pcs-19608 with an area of 640 Square Meters.

On November 14, 1990 a subdivision plan Psd-06-020573 (a portion of Lot 2,

(LRC) Pcs-19608) surveyed in favor of Candelaria Dayot, New Star Fishing
Corp., William Lines, Inc. and Pilipinas Shell Corp. and was approved by the then
Regional Technical Director for Lands Teodoro S. Simpas, situated in
Barangay ,Lapus, District of La Paz, City of Iloilo, Province of Iloilo, island of
Panay, as follows:

1. Lot 2-A with an area of 10,000 Sq.M. in favor of New Star Fishing Corp.;
2. Lot 2-B with an area of 4,205 Sq.M. in favor of Candelaria Dayot;
3. Lot 2-C with an area of 15,500 Sq.M. in favor of William Lines, Inc.;
4. Lot 2-D with an area of 14,791 Sq.M. in favor of Candelaria Dayot;
5. Lot 2-E with an area of 5,351 Sq.M. Road (10.00 M. Wide);
6. Lot 2-F with an area of 1,205 Sq. M.in favor of Candelaria Dayot:
7. Lot 2-G with an area of 30,000 Sq.M. in favor of Pilipinas Corporation;
and
8. Lot 2-H with an area of 11,554 Sq.M. in favor of Candelaria Dayot.

On April 1, 1991 Alias Writ of Possession was issued by Magdalena L.

Lometillo, Clerk of Court, Witness the Hon. Jesus G. Alonsagay, Presiding
Judge, Regional Trial court, Sixth Judicial Region, Branch 30, Iloilo City
lonsagay in favor of Candelaria Q. Dayot, who filed a motion for substitution,
who also acquired the rights and interest of Traders Royal Bank over the
properties subject of the writ of possession, which likewise granted by the
Court in its Order dated March 12, 1991, and which properties are more
particularly described as follows, to wit:

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 1. TCT No. T-84234
Lot 3834, Iloilo Cadastre
2. TCT No. T-84233
Lot 1-A, Parcel 2, Plan II-7000
3. TCT No. T-84235
Lot 6153, Iloilo Cadastre (= Lot 3962-A, Bsd-1153)
4. TCT No. T-84236
Lot 6156, Iloilo Cadastre (= Lot 3962-D, Bsd-1153)
5. TCT No. T-84237
Lot 6158, Iloilo Cadastre (= Lot 3962-F, Bsd-1153)
6. TCT No. T-84238
Lot 6159, Iloilo Cadastre (= Lot 3962-G, Bsd-1153)
Commanded to remove and eject Panay Railways, Inc. or any person
claiming interest over the above properties and to place and install Candelaria Q.
Dayot in possession thereof.

On November 7, 1991 a consolidation and subdivision plan Pcs-06-001744 a

consolidation and subdivision of Lots 1 and 4, Pcs-5341 Amd. 2 described in TCT
Nos. T- 87943 and T-87945 were surveyed in favor of Spouses Candelaria Dayot
and Edmundo Dayot and was approved by Director Teodoro S. Simpas, Regional
Technical Director for Lands of land situated in the District of Lapus City of Iloilo,
Province of Iloilo, island of Panay, as follows:

1. Lot 1, Pcs-06-001744 with an area of 2,315 Square Meters;

2. Lot 2, Pcs-06-001744 with an area of 9,063 Square Meters; and
3. Lot 3, Pcs-06-001744 with an area of 17,518 Square Meters;

REFERENCE USED (Researched and Verified):

1. Transfer Certificates of Titles Nos. T-8743, T-87944, T-87945, T-87946 &

T-87947; T-84233, T-84234 & T-84235; T-87889, T-87890, T- 87891, T-87892
& T-87893.
2. Plan Pcs-5341 Amd. 2, (LRC) Pcs-16908, Psd-06-020573 and Pcs-06-001744;
3. Lot Data Computation/Description of Lots 3962, 3834, 3810, 3462, 3463, 3464,
3482, all of Cad-21 Iloilo Cadastre and Lot 1-A, Parcel 2, Plan II-7000;
4. Contract to Sale, Deed of Absolute Sale, Alias Writ of Possession, et al

NOTE:
Plan (LRC) Pcs-5341 Amd. is situated in Cabanatuan City, Nueva Ecija as
per approved plan approved by the Land Registration Authority (see attached
microfilm reproduction plan).

EVALUATION AND FINDINGS

Analysis based from the Approved Survey Data, Titles and other related
pertinent information researched.

Based from the Contract to Sell executed by Traders Royal Bank in favor of Sps.
Candelaria Dayot and Edmundo D. Dayot, as stated:

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 Lot 3834, Iloilo Cadastre containing an area of 36,201 Sq.M. covered by TCT
No. T-84234;

Lot 1-A, Parcel 2, Plan II-7000 containing an area of 29,469 Sq.M. covered by
TCT No. T-84233.

(Note: Lot 1-A, Parcel 2, Plan II-7000 and Lot 3834, Iloilo Cadastre were
consolidated and subdivided per Court Order dated July 21, 1975 into Lots
1, 2, 3, 4 & 5, Pcs-5341 Amd. 2. That Lot 2 with an area of 17,000 Sq.M.
previously sold to ESSO (Phil.) and a portion of Lot 5 with an area of
10,265 Sq.M. previously sold to Shell Chemicals (Phil.), are hereby
excluded from above description.).

Lot 6153, Iloilo Cadastre containing an area of 93,955 Sq.M. covered by TCT
No. T-84235.

(Note: A parcel of land which is a portion of above with an area of 4,655

Sq.M. already sold to Shell Chemicals Co., (Phil.), is now owned by said
company, and its hereby excluded from above description.)

The Properties claim by Sps. Candelaria Dayot and Edmundo D. Dayot

are as follows:

1. Lot 1, Pcs-5341 Amd. 2 with an area of 11,373 Square meters covered by

TCT T-87943;
2. Lot 4, Pcs-5341 Amd. 2 with an area of 17,523 Square Meters covered by
TCT T-87945;

Note: Lot 1 & 4, Pcs-5341 Amd. 2 was consolidated and subdivided

into:
a. Lot 1, Pcs-06-001744 with an area of 2,315 Square Meters;
b. Lot 2, Pcs-06-001744 with an area of 9,063 Square Meters;
c. Lot 3, Pcs-06-001744 with an area of 17,518 Square

3. Lot 3, Pcs-5341 Amd. 2 with an area of 5,543 Square Meters covered by

TCT T-87944;
4. Lot 2, (LRC) Pcs-19608 with an area of 92,606 Square meters covered by
TCT T-87946;

Note: Lot 2, (LRC) Pcs-19608 was subdivided into:

a. Lot 2-A with an area of 10,000 Sq.M. in favor of New Star Fishing
Corp.;
b. Lot 2-B with an area of 4,205 Sq.M. in favor of Candelaria Dayot;
c. Lot 2-C with an area of 15,500 Sq.M. in favor of William Lines, Inc.;
d. Lot 2-D with an area of 14,791 Sq.M. in favor of Candelaria Dayot;
e. Lot 2-E with an area of 5,351 Sq.M. Road (10.00 M. Wide);
f. Lot 2-F with an area of 1,205 Sq. M.in favor of Candelaria Dayot:
g. Lot 2-G with an area of 30,000 Sq.M. in favor of Pilipinas Corporation;
and
h. Lot 2-H with an area of 11,554 Sq.M. in favor of Candelaria Dayot.

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 5. Lot 6156, Iloilo Cad with an area of 4,707 Square meters;
6. Lot 6258, Iloilo Cad with an area of 2,248 Square Meters; and
7. Lot 6159, Iloilo Cad with an area of 2,982 Square Meters.

Attached herewith are prepared plans for reference and Google Maps
showing the relative position of the property and images of improvements.

After careful analysis of the properties involved it is recommended that an

actual ground verification and relocation be conducted in order to identify the
metes and bound (Boundaries) and improvements existing on the
property/properties claim by Sps. Candelaria and Edmundo Dayot