Ms. Mary Anne Antazo reports

MINDORO'S JOINT VENTURE FIRM, AGATA MINING VENTURES, INC. (AMVI) TO SUBMIT PROOF OF COMPLIANCE IN RESPONSE TO DENR AUDIT RESULTS

Agata Mining Ventures Inc. (AMVI), a company in which Mindoro Resources Ltd. has a direct and beneficial 40-per-cent interest, has been listed among those 20 mining firms "recommended for suspension" in a press conference held by the Philippine Department of Environment and Natural Resources (DENR) on Sept. 27, 2016. The announcement was the result of a two-month nationwide audit of 41 metallic mines, 10 of which have been earlier suspended, while the remaining 11 metal firms were also found with infractions but "not compelling enough" to warrant suspension. These 41 mining companies were assessed on the basis of laws related to mine environmental management, safety and health, social development, mining tenement, as well as compliance with the clean air, clean water, hazardous waste and solid waste acts.

The 20 affected mining firms that are recommended for suspension will be issued a show-cause order and a copy of the audit report, and they will be given seven days to explain in writing why their operations should not be halted. As of press time, AMVI has not yet received the formal order or the copy of the audit report.

AMVI has initiated review of the three alleged infractions that may warrant suspension, and it is assured that the alleged violations have no bases and is ready to submit proof of compliance upon receipt of the show-cause order. AMVI has also manifested that there will be no disruption in its operations pending receipt of the order and audit report.

TVI Resource Development (Phils.) Inc. (TVIRD), the company that holds a 60-per-cent interest in and is the operator of AMVI, has issued in an earlier press release that it supports the DENR's efforts to ensure that all mining in the Philippines is carried out to the highest environmental and social standards as this is something that TVIRD has worked hard to achieve every day and has been consistently recognized for by industry regulatory bodies, including the DENR.

About Mindoro

Mindoro has a direct and beneficial 40-per-cent interest in the Agata mining joint venture and direct and beneficial 75-per-cent interest in the Agata processing joint venture with an option to acquire an additional 25-per-cent interest in the Agata processing joint venture. The company also holds a 75-per-cent interest in the Pan de Azucar sulphur-copper-gold project in Iloilo City. Mindoro also holds 75-per-cent interest and an option to acquire additional 25-per-cent interest in the Tapian San Francisco copper-gold project in Mindanao.

We seek Safe Harbor.