Mr. Cliff James reports

UPDATE OF ACTIVITIES AT TVI PACIFIC'S 30.66% OWNED TVIRD BALABAG GOLD AND SILVER MINE

TVI Pacific Inc. has provided an update of operating activities at the Balabag gold and silver mine. Balabag is owned 100 per cent by TVI Resource Development Phils. Inc. (TVIRD), a Philippine corporation in which TVI holds a 30.66-per-cent interest, and is located in Zamboanga del Sur, Philippines.

Highlights:

• Since start-up, and through to Feb. 29, 2024, 87 dore shipments have been completed containing 82,670 ounces of gold and 1,670,636 ounces of silver for 101,840 gold equivalent ounces (AuEq oz).
• In the current year, and through to Feb. 29, 2024, seven dore shipments containing 7,090 ounces of Au and 87,269 ounces of Ag for 8,164 AuEq oz have been completed.
• A further five shipments have been completed since Feb. 29, 2024, bringing the total number of completed dore shipments to 92 in the approximate amount of 105,529 AuEq oz.
• Average mill throughput in March, 2024, has been 2,196 tonnes per day and 1,947 t/d year to date.
• The phase 7 exploration program has commenced and through to March 31, 2024, 10 drill holes have been completed with a further three continuing for a total metreage to date of 1,096.50 metres.

"Balabag continues to be the current pride and award-winning example of responsible mining operations among the TVIRD portfolio and has helped to set the baseline for other projects such as the Siana gold mine. We are pleased that Balabag has to date completed 92 dore shipments and has since September, 2022, maintained a schedule of three to four shipments per month," said Cliff James, chairman and chief executive officer of TVI and chairman of TVIRD. "We look forward to continuing to expand the portfolio of operating mines held by TVIRD and to further exploration activities particularly at Balabag so to potentially add to the estimated mineral resource reported in the NI 43-101 mineral resource update filed under TVI's profile on SEDAR+ on July 21, 2021."

TVIRD mining update

Balabag gold mine

Since the start-up of production in July, 2021, and through to Feb. 29, 2024, TVIRD has completed 87 shipments of gold dore from its 100-per-cent-owned Balabag gold and silver 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.

For the two months ended Feb. 29, 2024, Balabag completed seven shipments that contained 7,090 ounces of Au and 87,269 ounces of Ag for 8,164 AuEq oz, generating gross revenue of $15.9-million (U.S.) (Feb. 28, 2023: $11.6-million (U.S.)) with an average Au price of $2,034.05 (U.S.) and Ag price of $22.81 (U.S.).

A further five shipments have been completed since Feb. 29, 2024, and through to the date of this press release, bringing the total number of shipments since completion of the first shipment on Sept. 30, 2021, to 92 shipments in the amount of 105,529 AuEq oz.

The average processing rate at the Balabag gold processing plant in the two months ended Feb. 29, 2024, was 1,819 tonnes per day while plant availability was 91 per cent. Head grades for the two months ended Feb. 29, 2024, averaged 2.23 g/t Au and 32.27 g/t Ag with recoveries at 95 per cent for Au and 82 per cent for Ag.

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

Average mill throughput for the two months ended Feb. 29, 2024, was below average mill throughput for the 12 months ended Dec. 31, 2023, due to maintenance activities and water shortages caused by the El Nino phenomenon that resulted in below-normal rainfall conditions. Through to March 30, 2024, average mill throughput has ramped back up to 2,196 t/d month to date and 1,947 t/d year to date.

The cash cost per ounce for the two months ended Feb. 29, 2024, was $1,236 (U.S.) per AuEq oz (12 months ended Dec. 31, 2023, was $1,443.75 (U.S.) per AuEq oz) and the all-in cost averaged for the two months ended Feb. 29, 2024, was $1,508.01 (U.S.) per AuEq oz (12 months ended Dec. 31, 2023, was $1,900.54 (U.S.) AuEq oz).

TVIRD has commenced the phase 7 exploration program and through to March 31, 2024, 10 drill holes have been completed with a further three continuing for a total metreage to date of 1,096.50 metres, representing 23.89 per cent of the total 4,590 metreage target. This program is focused on the Lalab, Miswi and Tinago areas.

TVIRD has thus far made 12 payments against the five-year term loan with China Banking Corp. (facility), reducing the outstanding principal loan balance of the $28.5-million (U.S.) facility to approximately $5.7-million (U.S.). The purpose of the facility has been to finance development activities at Balabag.

As announced on Sept. 5, 2023, TVIRD closed an additional short-term loan with China Banking in the amount of $14-million (U.S.), the proceeds of which have been used for working capital purposes and further optimization of the Balabag processing plant. This short-term loan has a term of 357 days and interest calculated on the full amount drawn is to be paid monthly. The interest rate has been set at 6.75 per cent per annum. This short-term loan was fully drawn down on Sept. 1, 2023.

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 operating Balabag gold/silver mine, 100 per cent of the Siana gold mine and the neighbouring Mapawa project (gold), a 60-per-cent indirect interest in the Mabilo project (a copper-gold-iron skarn deposit that offers potential for multimetal products, namely copper, gold and silver, with byproducts magnetite and pyrite), and a 60-per-cent interest in Agata Mining Ventures Inc. (nickel/iron direct shipping ore mine).

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 maintains a strong presence in the Philippines through its 30.66-per-cent equity interest in TVIRD, a Philippine corporation. Through TVIRD, TVI has ownership in TVIRD's 100-per-cent-owned Balabag gold/silver mine, a currently producing mine, and is focused on ramping up to commercial production at TVIRD's recently restarted 100-per-cent-owned Siana gold mine. TVIRD also has in its portfolio of projects its 100-per-cent-owned Mapawa project (gold), a 60-per-cent indirect interest in the Mabilo project (a copper-gold-iron skarn deposit that offers potential for multimetal products, namely copper, gold and silver, with byproducts magnetite and pyrite) and a 60-per-cent interest in Agata Mining Ventures (nickel/iron DSO mine).

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