TVIRD completes first shipment of copper concentrate from Canatuan Mine

TVI Resource Development (Phils.) Inc. (TVIRD) completed
the first shipment of copper concentrates from the Canatuan Mine on March 27,
2009, following the completion of Sulphide Project construction on November
15, 2008. This milestone event brings the commissioning phase of operations
to a close, with commercial operations having been declared in early March 2009,
when inventory levels reached the 5,000 tonne threshold.

In accordance with an offtake arrangement with MRI Trading
AG, the first shipment of approximately 5,350 dry metric tonnes (dmt) of copper
concentrates left Sta. Maria Port in Siocon, Zamboanga del Norte, destined for
a major Chinese smelter. Under the copper offtake agreement with MRI Trading
AG an initial payment of approximately US$4.8 million for the cargo is expected
to be made to TVIRD within the week. The funds will be allocated to working
capital and operating costs in continuing mine operations.

“This is a major milestone event for TVIRD and its stakeholders,”
stated Clifford M. James, TVIRD Chairman and CEO. “TVIRD has successfully
overcome many obstacles over the last two years, when the Canatuan Sulphide
Project was initiated. While challenges in the marketplace still exist, we are
confident that the cash flows to be generated by TVIRD’s copper concentrate
production will enable us to further progress the overall development of the
company.” (Please
see related Blog “We made it!” here)

The shipment logistics were executed with contributions from
the TVIRD Operations team and the local communities. Two landing craft transport
barges were mobilized to the Santa Maria Port facility from another mining operation
elsewhere on the island of Mindanao. The concentrate was transferred from TVIRD’s
warehouse facility at the port onto the barges, using the “Ro-Ro”
(roll on/roll off) access built into the pier, which had previously been constructed
under a United States Agency for International Development (USAID) project to
promote economic activity for the Zamboanga Peninsula region. The barges were
then mobilized alongside the vessel M.V. Sun Glory, which arrived on March 25
and anchored in the bay outside the harbour. The transhipment was completed
by the close of March 27.

“My compliments go to the TVIRD Canatuan team,”
added Mr. James. “This first shipment, made from a remote area of the
Philippines, was executed smoothly, professionally and flawlessly. But I’d
also like to thank and compliment the people of Santa Maria and Siocon, Zamboanga
del Norte – the indigenous Subanon as well as Muslim communities –
for their tremendous cooperation, support and assistance. It was a great, joint
effort.”

To date the Canatuan Mine has produced approximately 7,300
metric tonnes of copper concentrate. It is anticipated that the next shipment
will be made at the end of April or early May 2009 and approximately every six
weeks thereafter.