REPLY MEMORIAL SUPPORTING ANNULMENT

The Applicants/Claimants, Commerce Group Corp. and San Sebastian Gold Mines, Inc. (collectively the “Claimants”), respectfully submit this Reply Memorial in Support of their Application for Annulment of the Award issued on March 14, 2011, in the matter of Commerce Group Corp. and San Sebastian Gold Mines, Inc. and The Republic of El Salvador (ICSID Case No. ARB/09/17):

INTRODUCTION

SUMMARY

1. On 11 July 2011, the Applicants applied for annulment and on 15 December 2011, they submitted their Memorial in Support of Claimants’ Application for Annulment (“Memorial”) to the ad hoc Committee. In their Memorial the Applicants alleged that the Tribunal manifestly exceeded its powers under Article 52(1)(b) and that the Award fails to state the reasons on which it is based under Article 52(1)(e).

2. On 19 October 2012, the Respondent submitted El Salvador’s Counter-Memorial in Opposition to Claimants’ Application for Annulment (“Counter-Memorial”). In its Counter-Memorial, the Respondent El Salvador argues that Commerce Group Corp. (“CGC”) and San Sebastian Gold Mines, Inc. (“SSGM”) are impermissibly using the annulment process as a chance to challenge the Tribunal’s 14 March 2011 Award in this matter. Among other things, the Respondent complains that the Applicants include a “self serving account of the facts of the underlying dispute” [¶ 74], that the Applicants attempt to “develop new arguments” [¶ 77], that the Applicants present the “same arguments” [¶ 89], and that generally, the Applicants state reasons for their belief that the Award was unjust.