Sulphide Project Update

01/15/2009



TVIRD granted extended maturity date on bridge financing

TVI Resource Development (Phils.), Inc. (TVIRD) has signed
a Letter Agreement extending the maturity date on the bridge financing previously
made available to the company under the Omnibus Loan and Security Agreement
(OLSA) originally signed with LIM Asia Arbitrage Fund Inc. (now LIM Asia Multi-Strategy
Fund Inc.), LIM Asia Special Situations Master Fund Ltd. (collectively, the
“Lenders”) and others on March 11, 2008. Background information
regarding the original bridge financing arrangement is set out in the news releases
disseminated by TVIRD on March 13, October 14, November 10, and December 15,
2008, and can be viewed via the following links: http://www./article.php?id=160,
http://www./article.php?id=197,
http://www./article.php?id=203,
and http://www./article.php?id=212

The Letter Agreement provides that the maturity date for both
Tranche A and Tranche B of the US$25.2 million facility previously drawn by
TVIRD has been extended to January 30, 2009. The previous maturity date of January
9, 2009 was set out in the Fourth Amendment Agreement, which was signed on December
11, 2008, by the parties to the OLSA. In addition, the Letter Agreement provides
that all accrued and unpaid interest on the Tranche A and B facilities as of
the maturity date, as amended, will be capitalized to form part of the loan
principal. As at January 12, 2009, the amount of interest to be capitalized
stood at US$1,649,506.22.

Workers
load onto a truck bags of copper concentrates produced at TVIRD’s
Canatuan Project in the mountains of Siocon, Zamboanga del Norte. The
company expects to make its first shipment within the first quarter of
2009.

TVIRD advises that discussions are ongoing with the Lenders
concerning longer term financing for the Sulphide Project and other investments,
involving, inter alia, the possibility of conversion of the bridge loan facility,
subject of this news release, into a term facility. There can be no assurance
that these financing discussions will be successful and that additional financing
will be available to TVIRD on terms acceptable to them.