DUAL FUEL PETROLEUM CORP.

ENFORCEMENT AND INVESTOR PROTECTION DEPARTMENT In the matter of: SEC EIPD CDO Case No. 2026-0023 DUAL FUEL PETROLEUM CORP. FOR: Violation of Sections 8, 26 and 28 of Republic Act No. 8799, otherwise known as the Securities Regulation Code (SRC) Respondent x-------------------------------------------------x CEASE AND DESIST ORDER This Cease and Desist Order (CDO) is prompted from an information received by the Commission that an entity named DUAL FUEL PETROLEUM CORP., is enticing the public to invest their money in the said entity for a promise of high monetary rewards or profits. Based on the reports, DUAL FUEL PETROLEUM CORP., was involved in the offering and sale of securities in the form of an “Investment Contract” as defined under Section 3 in relation to Section 8 and 28 (1) & (2) of RA 8799, otherwise known as the Securities Regulation Code (SRC). It was further reported that DUAL FUEL PETROLEUM CORP., has defrauded the general public by offering for sale or distributing securities in the form of an Investment Contract, as defined under Section 3 in relation to Section 8 and 28 (1) & (2) of RA 8799 and by inducing the public into parting with their hard earned money, based on their fraudulent manifestation that they are infusing capital contribution as business partners in establishing branches without the required license from the Securities and Exchange Commission (SEC). Based on the copy of the sales brochures, it provides for the following information: 1.) that Dual Fuel was introduced in January 2020 as part of the Recson Group of Companies with Respondent Matta as its Chairman and CEO; 2.) that Dual Fuel partnered with Legends Petroleum Corporation, who acted as a franchising company in enticing and soliciting from the general public to be co-owners of Dual Fuel Gasoline Station; 3.) that the diagram in the brochure show that Dual Fuel will grant franchise to Legends  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

Petroleum, as Franchisee (20%) plus co-owners (80%); and 4.) that the cost of the co- ownership package inclusion based on the brochure was Php 500,000 / slot with a capacity of 35 slots per station and 280 slots for 8 gasoline stations. In its social media account, Dual Fuel advertised the benefits and privileges that a co-owner may receive as well as the co-ownership’s package inclusion. Below are the screenshot copies of the said social media posts which were presented to the Commission:  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

In its Facebook (FB) Page, DUAL FUEL PETROLEUM is inviting the public to be a Franchise Co-Owner of Dual Fuel for a minimum capital of Php 500,000 for a promise of receiving quarterly profit shares for a period of 20 years. Similarly, in its Facebook Page, DUAL FUEL PH is enticing the public to be a Co-Owner of Dual Fuel gas station for a minimum capital contribution of Php 500,000 per seat. Below are screenshot copies of the said FB posts:  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

On 24 November 2025, the Commission posted an Advisory informing the public that DUAL FUEL PETROLEUM CORP., is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC). On 17 February 2026, the EIPD issued an Order of Revocation against DUAL FUEL PETROLEUM CORP., which was correspondingly posted on the Commission’s website on 24 February 2026. Consequently, the said Order of Revocation became final and executory on 14 March 2026. Based on the records of the Commission the name DUAL FUEL PETROLEUM CORP., is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the Securities Regulation Code (SRC). ISSUE Whether a Cease and Desis Order (CDO) should be issued against DUAL FUEL PETROLEUM CORP., and its Facebook page, for its continued unauthorized offer and/or sale of securities to the public. RULING The Commission finds the issuance of a Cease and Desist Order (CDO) against DUAL FUEL PETROLEUM CORP., warranted. Clearly, the business scheme of DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, inviting the public to become franchise co-owners of Dual Fuel for a minimum capital of Php 500,000 with the promise of receiving quarterly profit shares for 20 years constitutes the offer and sale of securities in the form of “investment contracts”, as defined under Section 3.1 of the Securities Regulation Code. As a rule, SECURITIES cannot be sold or offered for sale within the Philippines without such securities being registered with the Securities and Exchange Commission through the filing and consequent approval of a Registration Statement and a corresponding Permit to Offer/Sell has been issued by the Commission. Section 3.1 of the Securities Regulation Code (SRC) defines securities as shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract, instrument, whether written or electronic in character. It includes: (a) Shares of stocks, bonds, debentures, notes, evidences of indebtedness, asset backed securities;  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

(b)Investment contracts, certificates of interest or participation in a profit sharing agreement, certificates of deposit for a future subscription; (c) Fractional undivided interests in oil, gas or other mineral rights; (d) Derivatives like option and warrants; (e) Certificates of assignments, certificates of participation, trust certificates, voting trust certificates or similar instruments; (f) Proprietary or non-proprietary membership certificates in corporations; and (g) Other instruments as may in the future be determined by the Commission. An investment contract on the other hand, is defined under SRC Rule 26.3.5 of the 2015 Implementing Rules and Regulations of the Securities Regulation Code (2015 SRC IRR) as follows: “An investment contract means a contract, transaction or scheme (collectively “contract”) whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others. A common enterprise is deemed created when two (2) or more investors “pool” their resources, creating a common enterprise, even if the promoter receives nothing more than a broker's commission.” Further, the elements of an investment contract were enumerated in the case of Power Homes Unlimited Corporation vs. SEC (G.R. No. 164182 February 26, 2008) traced from the case of SEC vs. Howey Co. (66 S.Ct.1100 May 27, 1946) and was later modified in the case of SEC vs. Glenn W. Turner Enterprises, Inc. (474 F.2d476 February 1, 1973), as follows: • An investment of money; • A common enterprise; • Expectation of profits; and •Profits arises primarily from the entrepreneurial and managerial efforts of others. Section 8, in relation to Section 12 of the SRC provides that: “SEC. 8. Requirement of Registration of Securities. – 8.1. Securities shall not be sold or offered for sale or distribution within the Philippines, without a registration statement duly filed with and approved by the Commission. Prior to such sale, information on the  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

securities, in such form and with such substance as the Commission may prescribe, shall be made available to each prospective purchaser. SEC. 12. Procedure for Registration of Securities. – 12.1. All securities required to be registered under Subsection 8.1 shall be registered through the filing by the issuer in the main office of the Commission, of a sworn Page 11 of 14 registration statement with respect to such securities, in such form and containing such information and documents as the Commission shall prescribe. The registration statement shall include any prospectus required or permitted to be delivered under Subsections 8.2, 8.3 and 8.4.” Securities such as investment contracts as defined by the SRC and in relation to SRC Rule 26.3.5 of the 2015 SRC IRR must be registered with the Commission pursuant to Sections 8 and 12 of the SRC before the same can be offered or sold for distribution. Also, the act of DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, inviting the public to become franchise co-owners of Dual Fuel for a minimum capital of Php 500,000 with the promise of receiving quarterly profit shares for 20 years, constitutes public offering as defined under Rule 3.1.17 of the 2015 SRC Rules provides: “Rule 3.1.17 - “Public Offering is any offering of securities to the public or to anyone who will buy, whether solicited or unsolicited. Any solicitation or presentation of securities for sale through any of the following modes shall be presumed to be a public offering: 26.) Publication in a newspaper, magazine or printed reading material which is distributed within the Philippines or any part thereof; 27.) Presentation in any public or commercial place; 28.) Advertisement or announcement in any radio, telephone, electronic communications, information communication technology or any other forms of communication; or 29.) Distribution and/or making available flyers, brochures or any offering material in a public or commercial place, or to prospective purchasers through the postal system,  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

information communication technology and other means of information distribution.” In this particular case, the Department carefully examined the characteristics of the investments offered by DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, to determine if they satisfy the elements of an investment contract. In our evaluation, indeed, the elements of an investment contract are manifested in the investments being offered by DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, which are as follows: • By investing in the abovementioned entities, the investor enters into a contract and there is a placement of money from the public as they are enticed to invest with the subject entities that represented to be engaged in a lucrative business and are required to invest money in order for them to earn profits; • The money invested is placed in a common enterprise which is DUAL FUEL PETROLEUM CORP.; • The investors expect to derive profits as they are primarily attracted to join DUAL FUEL PETROLEUM CORP., for the promise of receiving quarterly profit shares for 20 years; and • The investors expect to earn profits derived primarily from the efforts of others or from DUAL FUEL PETROLEUM CORP. In this case, DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, is offering an investment scheme which is within the definition of securities under Section 3.1 of the SRC in the nature of an investment contract. As defined, an investment contract is a contract or scheme for the placing of capital or laying out of money in a way intended to secure income or profit from its employment.1 It has been applied to a variety of situations where individuals were led to invest money in a common enterprise with the expectation that they would earn a profit through the efforts of the promoter or of someone other than themselves. It is noteworthy to mention that DUAL FUEL PETROLEUM CORP., is not authorized to solicit investments from the public as it did not secure prior registration and/or license to solicit investment from the Commission as prescribed under Section 8 of the Securities Regulation Code. Hence, the act of DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum in soliciting investments from the public without the necessary secondary license from the Commission is unauthorized. Further, Section 11 of Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act (FCPA) also prohibits investment fraud which is defined under the law as any form of deceptive solicitation of investments from the public which includes Ponzi schemes and such other schemes involving the promise or offer of 1 SEC vs Howey Co., 328 U.S. 293 (1946)  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

profits or returns sourced from the investments or contributions made by the investors themselves and the offering or selling of investment schemes to the public without a license. Finally, the investment scheme of DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, has the characteristics of a Ponzi Scheme because of the promise of an exorbitant rate of return with little or no risk at all to investors as exemplified in the case of People vs. Tibayan,2 which provides that: “To be sure, a Ponzi Scheme is a type of investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Its organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the perpetrators focus on attracting new money t0o make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business. It is not an investment strategy but a gullibility scheme, which works only as long as there is an ever-increasing number of new investors joining the scheme. The offering and selling of securities in the form of investment contracts using the “Ponzi Scheme” which is fraudulent and unsustainable, is NOT a registrable security. The Commission will not issue a License to Sell Securities to the public, persons or entities that are engaged in this business or scheme. As held in the case of SEC vs. CJH Development Corporation, (G.R. No. 210316, 28 November 2016) 3, the Supreme Court ruled that the sale and/or offer of securities without the requisite license, necessarily operates as a fraud on investors, thus: “The act of selling unregistered securities would necessarily operate as a fraud on investors as it deceives the investing public by making it appear that respondents have authority to deal on such securities. Section 8.1 of the SRC clearly states that securities shall not be sold or 2 People of the Philippines vs. Palmy Tibayan and Rico Puerto (G.R. Nos. 209655-60, 14 January 2015). 3 SEC vs. CJH Development Corporation, (G.R. No. 210316, 28 November 2016)  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

offered for sale or distribution within the Philippines without a registration statement duly filed with and approved by the SEC and that prior to such sale, information on the securities, in such form and with such substance as the SEC may prescribe, shall be made available to each prospective buyer.” (Emphasis ours) Notwithstanding the foregoing, it was subsequently discovered that, to date, DUAL FUEL PETROLEUM CORP., has not yet removed its advertisement from its Facebook page, Dual Fuel Petroleum, inviting the public to become franchise co-owners of Dual Fuel for a minimum capital of Php 500,000 with the promise of receiving quarterly profit shares for 20 years, as shown below: Therefore, in order to protect the public from the pervasive effect of the illegal investment offering of DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, the EIPD submits that a Cease and Desist Order (CDO) be issued in accordance with Sec. 64 of the SRC. URGENCY OF A CEASE AND DESIST ORDER Section 64 of the SRC provides as follows: “SEC. 64. Cease and Desist Order. – 64.1. The Commission, after proper investigation or verification, motu propio, or  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

upon verified complaint by any aggrieved party, may issue a cease and desist order without the necessity of a prior hearing if in its judgment the act or practice, unless restrained, will operate as a fraud on investors or is otherwise likely to cause grave or irreparable injury or prejudice to the investing public.” As had been pointed out, securities cannot be offered or sold to the public without a registration statement duly filed with and approved by the Commission pursuant to Sections 8 and 12 of the SRC. In the instant case, DUAL FUEL PETROLEUM CORP., is not a registered issuer of securities under Sections 8 and 12 of the SRC and neither has it filed an application for registration of securities. Nevertheless, DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, solicits investments despite the absence of a license from the Commission to offer and sell securities to the public and at the rate at which they offer and sell securities to the public without prior registration, renders it imperative and necessary that a Cease and Desist Order (CDO) be issued by this Honorable Commission, enjoining them from further offering and/or selling securities to the public. The SRC is explicit that as a general rule, securities should be registered with this Honorable Commission before being offered or sold to the public in order to protect the investing public from worthless securities, which, if unchecked, may cause grave and irreparable damage and injury to the investors and the public in general. Further, the offering and selling of unregistered securities by DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, unless restrained, constitutes a continuous violation of the provisions of the SRC and the FCPA. In light of the continued unauthorized offer and/or sale of securities to the public by DUAL FUEL PETROLEUM CORP., through its Facebook page, Dual Fuel Petroleum, the EIPD finds it imperative to issue a Cease and Desis Order (CDO) to prevent further harm or prejudice to the public. WHEREFORE, premises considered, DUAL FUEL PETROLEUM CORP., and its Facebook pages, its incorporators, including its agents, representatives, salesmen, conduit entities, subsidiaries, and any and all persons claiming and acting for and on their behalf, are hereby ordered to immediately Cease and Desist from further engaging in the sale and/or offer of unregistered securities and from transacting any and all business involving the funds in its depository banks, and from transferring, disposing, or conveying in any other manner, any and all assets, properties, real or personal, including bank deposits, if any, of which the named persons herein may have any interest, claim or participation whatsoever, whether directly or indirectly, under their custody,  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines

immediately to forestall grave damage and prejudice to all concerned and to ensure the preservation of the assets for the benefit of the investors without authority from the Commission. This Cease and Desist Order shall be immediately executory upon service or publication on the Commission’s official channels and shall remain in full force and effect unless sooner lifted by the Commission. Let copies of this Cease and Desist Order be furnished to the Philippine National Police- Anti-Cybercrime Group (PNP-ACG), the Cybercrime Investigation and Coordinating Center (CICC) and the Presidential Anti-Organized Crime Commission (PAOCC), for their appropriate action, coordination, investigation, and enforcement assistance, including such measures as may be necessary to prevent the continued operation, digital accessibility, promotion, and facilitation DUAL FUEL PETROLEUM CORP., through its Facebook page’s unauthorized offer and/or sale of securities to the public. Further, let a copy of this Order be published on the official website of the Commission for general circulation. In accordance with Section 64.3 of the SRC and Rule XI of the 2026 Rules of Procedure of the SEC, Respondents may file a verified Motion to Lift the CDO with the EIPD within five (5) days from receipt of this Order, or the posting of the CDO on the Commission’s website, whichever is earlier. The public is hereby warned to refrain from transacting with DUAL FUEL PETROLEUM CORP. SO ORDERED. 25 September 2026, Makati City. 29 Digitally signed by Lupango- Tamayo Sheara Laurio Date: 2026.09.29 17:27:10 +08'00' SHEARA L. LUPANGO-TAMAYO Officer-in-Charge  The SEC Headquarters, 7907 Makati Avenue Salcedo Village, Bel-air, Makati City  1-4732 (1-4SEC) www.sec.gov.ph | imessage.sec.gov.ph https://linktr.ee/secphilippines