Mr. Cliff James reports

TVI PACIFIC'S 30.66% OWNED TVIRD SIGNS MEMORANDUM OF AGREEMENT ON RESTRUCTURING OF THE MABILO PROJECT

TVI Resource Development Phils. Inc. (TVIRD), a Philippines corporation in which TVI Pacific Inc. holds a 30.66-per-cent interest, and its wholly owned SageCapital Partners Inc. have signed a binding agreement with RTG Mining Inc. with respect to an agreed restructuring of the Mabilo project. TVIRD holds a 60-per-cent indirect interest in Mabilo through SageCapital, a holding company incorporated under the laws of the Philippines which, in turn, owns 60 per cent of the outstanding capital stock of Mt. Labo Exploration and Development Corp. (MLEDC), a Philippines mining and minerals exploration development company whose projects are based in Camarines Norte, Philippines, and which is the owner and operator of Mabilo.

Highlights:

• The agreement provides the opportunity to now focus on finalizing the remaining permitting matters and financing plans for Mabilo, together with the surface rights, following which a commitment to development is expected to be formalized by the board of MLEDC.
• The agreement addresses the financing obligations of SageCapital and RTG and provides for a 1-per-cent net smelter return royalty (NSR) to SageCapital and a 2-per-cent NSR to RTG.
• MLEDC prepared a feasibility study on Mabilo in May of 2016, which feasibility study was supported by a technical report entitled "Mabilo Project National Instrument 43-101 Technical Report" prepared by Lycopodium Minerals Pty. Ltd. dated and filed on May 2, 2016, with a mineral reserve and mineral resource effective date of November, 2015. RTG, which holds a 40-per-cent interest in MLEDC through SRM Gold, has filed the technical report under RTG's SEDAR profile. The Mabilo technical report reflects a historical probable mineral reserves estimate of 7.8 million tonnes (Mt) at 2 per cent copper, two grams per tonne gold, 8.8 g/t silver and 45.5 per cent iron. Metal price assumptions applied in the Mabilo technical report were $5,200 (U.S.)/tonne for Cu, $1,125 (U.S.)/ounce for Au, $15 (U.S.)/oz for Ag and $65 (U.S.)/tonne for magnetite. TVI considers this report no longer current and cautions that it should not be relied upon.
• Management and the directors of TVIRD believe that Mabilo has exploration potential as it remains open down dip and along strike.
• Mabilo is covered by an approved declaration of mining project feasibility (DMPF) and environmental compliance certificate (ECC) for initial direct shipping ore (DSO) operations issued by the Mines and Geosciences Bureau and the Environmental Management Bureau, respectively, of the Department of Environment and Natural Resources of the Republic of the Philippines.

"We are excited to have reached an agreement with our partner, RTG, so as to allow us to move forward with yet another significant mining project for TVIRD and the TVI Pacific shareholders as well as for the Philippines," said Cliff James, chairman and chief executive officer of TVI and chairman of TVIRD, "Mabilo is yet another great addition to TVIRD's portfolio of projects and may be expected to add considerable value and extended life to the company."

About the agreement

The agreement provides the opportunity to now focus on finalizing the remaining permitting matters and financing plans for Mabilo, together with the surface rights, following which a commitment to development is expected to be formalized by the board of MLEDC. TVIRD, through SageCapital, and RTG, through SRM Gold, will retain a 60-per-cent and 40-per-cent interest in MLEDC, respectively, and thereby a 60-per-cent and 40-per-cent interest in Mabilo. As a further result of the agreement, SageCapital will receive a 1-per-cent NSR while RTG will receive a 2-per-cent NSR.

Recognizing the loan agreement between MLEDC and RTG dated March 30, 2021, and any and all advances that have been made by RTG in favour of MLEDC to date, together with accrued interest, the agreement provides for the repayment of this amount to RTG from the proceeds of stage 1 of the project, the DSO. All amounts to be repaid had been previously recognized by TVIRD at the acquisition date of SageCapital and included in the consolidated accounts of TVIRD and shall be subject once again to audit and review by SageCapital and/or by an independent auditor appointed by SageCapital prior to the execution of the definitive agreement.

Recognizing further the disproportionate financing provided earlier to MLEDC by RTG, the agreement addresses the immediate future financing obligations of SageCapital and RTG whereby the first $5-million (U.S.) of financing for MLEDC (or 12 months, whichever is the earlier), will be provided pro rata between SageCapital and RTG and thereafter SageCapital will sole-finance the next $5-million (U.S.) of expenditure with all additional financing to be provided on a pro rata basis.

About Mabilo

On Jan. 31, 2022, TVIRD obtained control of SageCapital through the acquisition of all of its outstanding capital stock. This acquisition has further provided TVIRD an indirect 60-per-cent equity interest in MLEDC, as held by SageCapital. MLEDC is a Philippines mining and minerals exploration development company and the owner and operator of Mabilo.

Mabilo is located in Camarines Norte province, Eastern Luzon, Philippines, one of the major traditional gold mining centres in the Philippines, and is covered by Philippines MPSA MLC-MRD V-459 amended (renewal) and two additional blocks with an existing exploration permit (EP-019-202-V), covering 3,484.2 hectares and 165.9 hectares. With a near-surface deposit, Mabilo has potential for DSO and it is contemplated that mining will use an open-pit mining method prior to moving to a primary concentrate production through construction of a plant. Both the declaration of mining project feasibility for initial DSO operations and the environmental compliance certificate were approved in 2020. The Mabilo mineralized deposit is classified as a copper-gold-iron skarn deposit that offers potential for multimetal products, namely copper, gold and silver, with byproducts magnetite (Fe3O4) and pyrite (FeS2).

RTG, which holds a 40-per-cent interest in MLEDC through SRM Gold, filed on Dec. 18, 2015, under RTG's SEDAR profile, a National Instrument 43-101 compliant mineral resource estimate prepared on Nov. 5, 2015, by CSA Global Ltd.

The mineral resource estimate is based on data obtained from 99 diamond drill holes (18,201 metres) completed as of the end of September, 2015, and a 0.3 g/t Au or 0.3 per cent Cu grade cut-off. Holes were drilled on a nominal 40-metre-by-40-metre drill pattern along strike, with infill to a nominal 20 metres by 20 metres in parts.

On May 2, 2016, RTG filed under its SEDAR profile a feasibility study for Mabilo supported by an NI 43-101 compliant technical report entitled "Mabilo Project National Instrument 43-101 Technical Report" prepared by Lycopodium Minerals that incorporates the CSA Global mineral resource estimate.

The feasibility study has included mining, processing and infrastructure, and a detailed financial analysis. By applying various constraints as ore dilution, mining, processing, metallurgical, economic and infrastructures factors, the indicated mineral resource was converted into probable mineral reserves.

As summarized herein, the Mabilo technical report reflects a historical probable mineral reserves estimate of 7.8 Mt at 2 per cent Cu, two g/t Au, 8.8 g/t Ag and 45.5 per cent Fe and includes 511,000 ounces gold and 152,000 tonnes copper. Metal price assumptions applied in the Mabilo technical report were $5,200 (U.S.)/tonne for Cu, $1,125 (U.S.)/oz for Au, $15 (U.S.)/oz for Ag and $65 (U.S.)/tonne for magnetite. TVI considers the Mabilo technical report no longer current and cautions that it should not be relied upon.

To date 112 drill holes with a total metreage of 19,542 metres have been completed by MLEDC through its drilling program commencing in 2013 and ending in 2015.

TVI is not treating either the mineral resource estimate or the probable mineral reserve estimate as current under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects as a qualified person has not done sufficient work to classify the historical estimate as current, and the estimates should not be relied upon. Though historical, the estimates are fairly recent and were prepared to NI 43-101 standards, and TVIRD thus has no reason to believe they are not reliable within the context that they were initially prepared.

Qualified persons have not done sufficient work under NI 43-101 to verify the results of the feasibility study or to render it current and complete under NI 43-101, and therefore details of the feasibility study are not included in this news release. TVIRD currently does not plan to conduct any work to verify the historical estimates other than using them to guide its exploration, resource modelling and possible development work. At the appropriate time, TVIRD plans to assess the mine development and production plan as included in the feasibility study in order to develop its own plan for further exploration and possible development. TVIRD is evaluating steps that would be required to upgrade or verify the foregoing historical estimates as current under NI 43-101 standards, which would include a review of past drill results and quality assurance/quality control procedures applied as well as possibly resource modelling with the involvement of a qualified person.

Michael James Bue, Bsc, engineering, MEng, PEng, a qualified person for the purposes of NI 43-101, has reviewed the Mabilo technical report on behalf of TVI. To the best of the knowledge, information and belief of TVI, there is no new material scientific or technical information that would make the disclosure of the mineral resources in this release inaccurate or misleading. Revisions to the Mabilo technical report are required to reflect current technical advances, environmental standards and economic parameters. As a result, TVI considers the feasibility study and accompanying Mabilo technical report to be no longer current and should not be relied upon.

The scientific and technical content of the above description of Mabilo has been sourced from publicly available documents filed under RTG's SEDAR profile and Australian Securities Exchange profile.

TVIRD is currently proceeding with various organizational, community-related, permitting and site cleanup matters while considering next steps at Mabilo.

Additional information related to the Mabilo project may be found on the TVIRD website.

Qualified person

The qualified person responsible for the scientific and technical content of this press release is Mr. Bue, Bsc, engineering, 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 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. Financed 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 onstream 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.