Sulphide Project Update

09/10/2008



TVIRD announces commissioning activities at Canatuan Sulphide Project

TVI Resource Development Philippines, Inc. (TVIRD) has confirmed the commissioning
last September 1 of two vital components of its Sulphide Project in Canatuan,
Tabayo, Siocon, Zamboanga del Norte following the completion of their construction,
Yulo E. Perez, TVIRD Vice President for Philippine Operations, announced.

Eugene T. Mateo, TVIRD President witnessed the commissioning of the Crushing
Section of the Plant and the upgraded Assay Laboratory. “Despite the
challenges in the region, the recent developments in Canatuan underscore our
resolve to forge ahead with the Sulphide Project, motivated by the belief that
the solutions to the region’s ills lies clearly in the economic development
that derives from projects such as those brought by TVIRD.

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Crusher Circuit from three perspectives
during the commissioning: top photo, view from upper deck; middle photo, TVIRD
Canatuan Mill Operations Superintendent Reynaldo Carubio waves beside the Primary
crusher; and bottom photo, crushed ore forms a mound at right.

“The on-going construction of the Sulphide Plant is
now in its third month. The Project remains on an aggressive schedule for fourth
quarter start-up. We expect to ship copper concentrates at the beginning of
2009 and zinc concentrates around September next year,” Perez said.

He reported that as of September 1, 2008, the project is already 60%
complete.

“We are very much on schedule as we prudently spent our budget,”
he added, emphasizing that cost savings and efficiencies were achieved due in
large part to the company’s utilization of its in-house construction
crew.

The motors for the crushing plant were successfully tested without a load on
August 31, 2008. This was followed by the first ore loading and crushing test
that was carried out on September 1. Both tests were carried out according to
the projected company timeline.

Meanwhile, the Project’s state-of-the-art Assay laboratory was
also commissioned after undergoing an extensive upgrade, Jerry Gamelo, laboratory
manager, said.

The laboratory showcases top-of-the-line equipment manned by competent personnel.
The laboratory provides analytical services to the mine and mill operations
through prompt and accurate results.

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TVIRD Assay Laboratory Manager Jerry
Gamelo (left) says analytical requirements for the mine and mill plant will
increase with the company’s shift from Gossan to Sulphide operations.

Gamelo said that as TVIRD shifts from gold-silver to copper-zinc
operations, analytical requirements for the mine and mill plant will increase
and, to address this, the company acquired modern equipment and expanded the
building that houses the laboratory.

He explained that since copper concentrates sample preparation is a complicated
process, a separate concentrate preparation room with its own dust collection
system and working tables was fabricated. Two new units of electronic controlled
drying ovens complement the concentrate sampling since copper concentrates require
stringent temperature control during the drying process.

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Above, Laboratory staff preparing samples
for analysis. Below, another lab personnel charges lab samples into the new
Boyd Crusher.

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Moreover, Gamelo said that a new Perkin-Elmer FIMS 400 was acquired
for the company so that the laboratory will be able to analyze elements such
as mercury, arsenic, and antimony.

Other laboratory features include Mettler model AE-240 analytical balance,
Thermolyne hotplates, Barnstead distilling unit, magnetic stirrers and digital
burettes. A new centralized fume hood system for the furnaces was also installed
to enhance the health and safety of its workers as it system expels the heat
and toxic fumes out from the fire assay working area.

The laboratory manager said that the upgraded laboratory would also increase
work productivity because of the revised workflow traffic, which was carefully
considered in the building design. “Lab staff will no longer have
to walk from room to room carrying processed samples because of the new set
up,” Gamelo said. (Lullie Micabalo)

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The TVI Assay Laboratory showcases state-of-the-art
equipment manned by competent personnel. In photo is the core of the lab staff.