It is anticipated that future concentrate shipments of approximately 5,000 dmt each will occur every six weeks depending on ship availability and marketing arrangements.

• Volcanogenic massive sulphide deposit (Cu / Zn)

• Plant commissioning complete March 1, 2009

• Current production
  • 180 tpd Cu concentrates
  • 1,900 tpd throughput

• Off-take agreement with MRI Trading AG for the duration of the mine life

• Mine life extension potential

The Canatuan property is located in Zamboanga del Norte province on the island of Mindanao in the Philippines. The area is situated approximately 27 kilometres east of the town of Siocon on the Zamboanga Peninsula. The property consists of one MPSA, two EXPA’s and two MPSA applications totalling approximately 352 km². The Canatuan property is wholly-owned and operated by TVI Pacific’s Philippine operating affiliate, TVIRD.

Within the principal claim block, the Canatuan Mine currently produces copper concentrates from a polymetallic volcanic massive sulphide deposit. The operation achieved commercial operations on March 1, 2009. The Company uses conventional open-pit methods and the sulphide ore is processed through a copper flotation plant. Due to the complex nature of the ore being treated the blending strategies and procedures are continuously refined to maintain recovery levels.

The newly installed zinc flotation circuit was powered up on schedule on April 30 and is undergoing plant debugging as the first step in commissioning. Additional elements of the zinc separation and concentrate production process will be added in the coming weeks as the company continues with the zinc circuit commissioning. The company anticipates that the commissioning process could take up to three months as is typical in such operations and similar to the company's experience with the copper circuit.

The copper concentrates produced at the Canatuan Mine are shipped to a coastal warehouse facility at Santa Maria Port approximately 30kms away. From the port around 5,000 tonne loads of concentrate are shipped according to a 5-year offtake agreement with MRI Trading AG.

According to 43-101 Technical Report for the Sulphide Resources at the Canatuan Project of TVI Pacific Inc. prepared by P.J. Lafleur Geo-Conseil Inc. and filed on SEDAR on April 7, 2008, the Canatuan Mine’s initial mineral reserves are estimated to be 3.0 million tonnes @ 1.35% copper, 1.05% zinc, 0.75 grams/tonne gold and 36 grams/tonne silver.