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Yulo Perez, Chief Operations Officer of TVI Resource Development (Phils.), Inc. (TVIRD), is acting as the Qualified Person in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) reporting requirements with respect to all TVI projects by virtue of his fellowship in the Australasian Institute of Mining and Metallurgy and the reciprocity rules covered under Recognised Overseas Professional Organisations. He has prepared and/or supervised the preparation of the scientific or technical information on this website, including the current reserve and resource estimates, and confirms compliance with NI 43-101 requirements.

Canatuan Mine - Initial Reserves & Resources

In April 2008, we received a NI 43-101 technical report on the Canatuan sulphide deposit prepared by P.J. Lafleur Geo-Conseil Inc., an independent consulting group. This report was filed with certain securities regulatory authorities in Canada on April 7, 2008, and is available on the SEDAR website at www.sedar.com. The NI 43-101 technical report includes the initial reserves and resources at the beginning of the Canatuan Sulphide Project.

Initial Mineral Reserves (Proven & Probable)
Reserve (tonnes)	3,034,383
Copper (%)	1.35
Zinc (%)	1.05
Gold (grams per tonne)	0.75
Silver (grams per tonne)	36.09

Initial Mineral Resources – Resource quantity by grade groupings

 

(Reserves included in Resources)

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Canatuan Mine - Current Reserves & Resources

The remaining ore reserves and resources at December 31, 2010, are estimated based on mine and mill production statistics for the year, additions and depletions due to ore extraction, grade control, geological assessments, and monthly reconciliation.

Reserves and resources are estimated following established industry practices and in compliance with NI 43-101. Estimates incorporate current geological models, drilling additions and losses, mine and mill production and reconciliations, current and projected operating costs, and mine plans allowing for dilution and mining losses.

Estimates are based on management’s best knowledge and judgement of the many variables and assumptions that are imprecise and may change over time. These include, but are not limited to: geological interpretation, mining and processing plans, commodity prices and markets, and operating and capital costs.

Reserves – Proven and Probable (December 31, 2012):

	Ore Tonnes	Cu (%)	Zn (%)	Au (g/t)	Ag (g/t)
Initial reserve, December 31, 2011	1,490,623	0.95	1.15	0.61	22.02
Total ore milled to December 31, 2012	(968,069)	0.89	1.20	0.50	25.83
Additional ore mined in 2012 (1)	244,954	0.46	0.55	0.29	13.35
Remaining reserve, December 31, 2012	767,508	0.87	0.90	0.64	14.44

Resources – Measured (December 31, 2012):
(The resources include the above reserves)

	Ore Tonnes	Cu (%)	Zn (%)	Au (g/t)	Ag (g/t)
Initial resource, December 31, 2011	1,717,678	0.87	1.02	0.55	20.46
Total ore milled to December 31, 2012	(968,069)	0.89	1.20	0.50	25.83
Additional ore mined in 2012 (1)	244,954	0.46	0.55	0.29	13.35
Remaining resource, December 31, 2012	994,563	0.75	0.73	0.54	13.48

 ⁽¹⁾ Additional ore identified inside and outside the pit limit by grade control drilling

 

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Balabag Gold Project - Resource Estimate

Resource estimate received June 23, 2012, and filed on SEDAR on August 15, 2012.

An independent technical report which is NI 43-101 compliant was produced by Georeference Online Ltd in June 2012.  The figures in the following table present the author’s best estimate of gold and silver resource at Balabag based on information reflecting drilling completed to the end of June 2011 and unadjusted for 24 years of underground mining of this resource by illegal small scale miners. Note that the possible volume of ore depleted by the small scale miners is not accounted for in the estimate below.

 

   *Prior to illegal mining.

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