Mr. Cliff James reports

MINING AND PROJECTS UPDATE AT TVI PACIFIC'S 30.66% OWNED TVIRD

TVI Pacific Inc. has provided an update with respect to the various mines and projects held and operated by TVI Resource Development Phils. Inc. (TVIRD), a Philippines corporation in which TVI holds a 30.66-per-cent interest.

Highlights:

Balabag gold mine

• Since start-up, 51 dore shipments have been completed containing 51,967 ounces of gold (Au) and 1,244,097 ounces of silver (Ag) for 66,924 gold equivalent ounces.
• In the current year, 15 dore shipments containing 10,083 ounces of Au and 176,043 ounces of Ag for 12,181 gold equivalent ounces have been completed.
• Plant throughput continues to improve to an average of 2,797 tonnes per day (tpd) for April, 2023, as compared with a name plate design capacity of 2,000 tpd.
• A maximum daily throughput of greater than 3,500 tpd has been achieved at the plant.
• Principal bank loan repayments total $17.1-million (U.S.) to date of the $28.5-million (U.S.), five-year term loan with China Banking Corp.

Siana gold mine

• Soft commissioning of the processing plant commenced in December, 2022, and through to March 31, 2023, 185 kilograms of dore containing 2,533 ounces of Au and 3,200 ounces of Ag have been smelted and a total of 179 kilograms of dore containing 2,472 ounces of Au and 3,065 ounces of Ag have been shipped.

Agata Mining Ventures

• Project to date, 376 shipments of 20.46 million wet metric tonnes of nickel laterite have been shipped, including thus far one shipment that was completed in 2023, subsequent to the announcement of May 18, 2022, that the Agata direct shipping nickel/iron mine was expected to cease operations in October, 2022.

"While processing operations continue to improve at Balabag such that three to four shipments of dore are now being completed monthly, we are most proud of the progress made at Siana where soft commissioning of the plant commenced ahead of schedule in December, 2022, and dore has already started to be shipped," said Cliff James, chairman and chief executive officer of TVI and chairman of TVIRD. "These two projects create a good foundation upon which we see TVIRD experiencing further growth as it eventually moves on to other projects, including Mabilo and Pan de Azucar."

TVIRD mining update

Balabag gold mine

TVIRD has now completed 51 shipments of gold dore since start-up of production from its 100-per-cent-owned Balabag gold mine. Balabag covers a 4,779-hectare mineral production sharing agreement (MPSA, MPSA No. 086-97-IX with expiry date Nov. 20, 2047) located within the municipality of Bayog, province of Zamboanga del Sur, and municipalities of Diplahan and Kabasalan, province of Zamboanga Sibugay, Mindanao, Philippines.

A focus to optimize the operation has continued and has thus far resulted in a significant increase in mill throughput, recoveries and plant availability, as reflected in the attached table.

It is expected that both gold and silver grades will increase as mining progresses to deeper levels.

As noted, plant throughput continues to improve to an average of 2,797 tpd for April, 2023, as compared with a name plate design capacity of 2,000 tpd. A maximum daily throughput of greater than 3,500 tpd has been achieved and the plan is to be able to produce an average of 3,500 tpd on a continuous basis.

Optimization works to improve plant efficiency have included:

• Installation of a SAG mill bypass conveyor line has been completed that allows direct ore feed into the secondary ball mills. This bypass system will allow uninterrupted mill operations during SAG mill relining and other repair works. The improvement increased the overall throughput capacity of the process plant.
• Installation of the Oxygen generator plant to improve leaching efficiency (higher plant recovery). The system is currently undergoing commissioning.
• Installation of an additional filter press to increase the Merrill Crowe clarifier circuit capacity (increase Merrill Crowe and overall throughput). This system has been prepared for commissioning.
• Continuing installation of the generator set air ducting system for improved mechanical availability of the gensets by the end of 2023.

The tailings storage facility (TSF) is being constructed in stages to accommodate both the increased throughput and progressively increasing resources as they may be defined. Continuing placement of Zone 3 is proceeding together with construction of the Stage 3 spillway. Completion of Stage 3 is targeted for the end of 2023.

TVIRD has thus far made nine payments against the facility, reducing the outstanding principal loan balance of the $28.5-million (U.S.) facility to approximately $11.4-million (U.S.). The purpose of the facility has been to finance development activities at Balabag.

Siana gold mine

Soft commissioning of the plant commenced on Dec. 9, 2022, and through to March 31, 2023, a total of 125,200 tonnes of low-grade stockpile mineralized material with an average grade of 0.87 g/t Au and 3.29 g/t Ag has been milled, averaging through the same period a plant availability utilization of 68 per cent and controlled throughput of 1,500 tpd to manage the drawdown of the low-grade stockpile until the full development of the open pit is achieved. As of March 31, 2023, 185 kilograms of dore containing 2,533 ounces of Au and 3,200 ounces of Ag have been smelted and a total of 179 kilograms of dore containing 2,472 ounces of Au and 3,065 ounces of silver have been shipped.

Key areas of focus continue to be the dewatering of the pit and the reconditioning and commissioning of the process plant. The construction of TSF-6 continues to make significant progress where permission of the TSF engineer has been given to start utilizing the facility for mill tails deposition while continuing to complete the embankment. Hydrotesting of the pipelines from the process plant to TSF-6 has been successfully completed.

TVIRD owns 100 per cent of Siana through its 100-per-cent-owned subsidiary, Greenstone Resources Corp. (GRC). The mine covers a 3,289-hectare MPSA (MPSA No. 184-2002-XIII) in addition to 100 per cent of the neighbouring 1,482-hectare MPSA No. 280-2009-XIII for the Mapawa project and the Ferrer claim (as covered by the application for mineral production sharing agreement No. A000046 and comprising one block of 595 hectares).

Agata direct shipping nickel/iron mine

Through to April 30, 2023, Agata Mining Ventures Inc. (AMVI) has completed a total project to date of 376 shipments of 20.46 million wet metric tonnes of nickel laterite, including thus far one shipment that was completed in 2023, subsequent to the announcement of May 18, 2022, that the Agata direct shipping nickel/iron mine was expected to cease operations in October, 2022. Completed shipments exceed by more than two times the proven and probable reserves of 9.7 million wet metric tonnes of nickel laterite ore with a grade of 48 per cent Fe and 0.9 per cent Ni that had been reported in the National Instrument 43-101-compliant feasibility study entitled "Technical Report for the Agata North Nickel Laterite DSO Project, Mindanao, Philippines," dated Aug. 30, 2013, and filed under the company's SEDAR profile on Sept. 10, 2013. The feasibility study was prepared under the direction of Dallas Cox, an independent qualified person, with contributions from Mark Gifford and Michael Conan-Davies; independent qualified persons as defined by National Instrument 43-101.

TVIRD, the operator of AMVI, a joint venture company in which TVIRD holds a 60-per-cent interest, continues to review potential nickel laterite projects, near to AMVI, for possible acquisition and the assay laboratory at site is being used for the purpose of analyzing samples gathered from these properties. The term of the 4,995-hectare MPSA (MPSA No. 134-99-XIII) held by AMVI is valid through to May 26, 2049.

Qualified persons

The qualified person responsible for the scientific and technical content of this press release is Michael James Bue, Bsc Eng, MEng, PEng. Mr. Bue has acted as the qualified person in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects reporting requirements by virtue of his membership in the Professional Engineers of Ontario and Canadian Institute of Mining and Metallurgy and has confirmed compliance of this press release with NI 43-101 requirements.

About TVI Resource Development Phils. Inc.

TVIRD, a Philippine corporation in which TVI holds a 30.66-per-cent interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines. TVIRD owns 100 per cent of the Balabag gold/silver mine, 100 per cent of the Siana gold mine and Mapawa project, a 60-per-cent indirect interest in the Mabilo project, and a 60-per-cent interest in Agata Mining Ventures Inc.

About TVI Pacific Inc.

TVI Pacific is a Canadian resource company focused on mining projects in the Philippines, one of the most prolifically mineralized countries in the world. TVI currently holds a 30.66-per-cent equity interest in TVIRD, a Philippines corporation. Through TVIRD, TVI has ownership in a currently producing gold mine and a nickel/iron mine. Funded by these producing mines, two recent corporate acquisitions by TVIRD have provided potential for many additional immediate opportunities. The first of these opportunities expected to come on stream is the Siana gold mine at which equipment has been rehabilitated and commissioning of the plant has commenced in line with TVIRD's plan to restart operations.

We seek Safe Harbor.