It is anticipated that future concentrate shipments of approximately 5,000 dmt each will occur every four to 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
  • 1,800 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. Under the current mine plan TVIRD will selectively mine the high copper zones of the deposit during the early years of the project’s initial 5-6 year mine life in order to maximize available cash flows.

Three months ahead of schedule, construction of the Zinc Circuit began on October 28, 2009, and is expected to be fully operational by late April 2010. As we mine through the copper-zinc zone as expected, the ability to separate and monetize the zinc will result in additional revenue.

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 every four to six weeks 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 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.