AGM Presentation 2012 Our Vision & Growth Plan We are a - PDF document

AGM Presentation 2012

Our Vision & Growth Plan We are a publicly-traded Canadian company focused on the production, development, exploration and acquisition of resource projects in the Philippines Find New Ore Pre- New Explore >20 Develop to Extend Development Development High-Impact and/or Mine Life at Balabag Gold or Advanced Prospects Explore Oil Canatuan & Silver Stage Explo Property Project Project Current cash Near-term Long-term Long-term Future cash flow is funding cash flow growth upside growth upside flow growth Our goal is to generate cash flow from several commodity sources to offset cycle risk and continue to build the Company one revenue stream at a time 2

Company Snapshot Affiliate of TVI Pacific Inc. (TSX:TVI) (OTCQX: TVIPF) First foreign-invested mine to reach production stage after the passage of the Philippine Mining Act of 1995 Currently 3 MPSAs •Canatuan •Tamarok •Balabag Balabag Mine Development Canatuan Operating Mine Operator of Canatuan Copper-Zinc Project, Siocon, Zamboanga del Norte North Zamboanga Exploration 3

Philippines: The Country • Potential mining wealth of the Philippines is estimated at $836 billion or 10 times the annual Philippine GDP • In the top five nations for overall mineral reserves: • Third in gold • Fourth in copper • Fifth in nickel • Sixth in chromite • Metallic mineral resources & reserves • 8.03 billion tons of copper • 4.91 billion tons of gold TVI Tenements • 0.81 billion tons of nickel • 480.26 million tonnes of iron • 39.66 million tonnes of chromite • 433.88 million tonnes of aluminum • Strategic location in proximity to the World’s major resource importers 4

Challenges • Canatuan mine coming to an end in 1.5+/- years unless new ore secured, based on current remaining reserves. • New ore is continually being found in the pit which may extend life • Philippines environment has turned negative to mining • No agreed to mining policy • Uncertainty pertaining to timing of lifting of moratorium for issuing new permits • Uncertainty surrounding the National Mining Policy could cause delays for development of Balabag • Committed to Philippines exclusively and specifically to Mindanao 5

Strengths and Opportunities • Strong operating capability • Capability to manage current projects and take on new ones • Ability to manage political and social/environmental challenges • Strong human resource capability, strong management experience in operations • Strong reputation to support Philippine expansion drive • Considered externally a model for best practices • Local government support • Available capital and debt capacity • Cash available in TVIP and TVIRD • Philippine banks interested in extending additional credit facilities 6

Strengths and Opportunities • Canatuan mine provides cash flow to fund new opportunities • Opportunity to expand the life of the mine past Q4 2013 • Canatuan infrastructure and strong LGU and community support provides base for new activities • Malusok and SE Malusok may potentially extend cash flow generation from the Canatuan mine infrastructure • Balabag expected to be a replacement cash flow engine • New metal mining opportunities for TVI being actively considered • Capability to enter new countries 7

Strengths and Opportunities • Attractive position in SC 54A • There is a risk of delay by partner JV issues – BUT creates opportunity to evaluate other Philippine blocks and other country opportunities • Wide array of new industry focus possibilities • Coal • Agri-business associated with Canatuan sustainability • Power – biomass associated with Canatuan 8

Philippines: The Mining Industry • In Q1 2011, mining accounted for 4.3% of total exports ($510 million) • In H2 2011, mining helped boost the economy amidst global downturn; gross production value up from $1.1B to $1.5B • 754 approved/registered mining tenements, with 1,620 application under process • 2010 mining growth rate of 12% • 2010 mineral exports grew by 27% • Investment in the industry from 2011 to 2016 is expected to be $14B to $20B • Direct employment in the industry increased to 340,000 in 2010, while indirect employment reached 1.2 million 9

Liquidity & Capitalization* *As at May 11, 2012 TSX Share Price (30 day average) $0.03 Basic Market Capitalization (million) $18.7 Basic Shares Outstanding (million) 622.1 About Us Shares Fully Diluted (million) 673.0 Insider Ownership (basic) 12.4% Insider Ownership (fully-diluted) 19.9% TVI Has Cash and Credit Capacity Cash (Mar 31, 2012) (million) $20.4 Debt (Mar 31, 2012) (million) $13.9 10

Financial Snapshot Q1 Q4 Q3 2012 2011 2011 Gross Revenue ( thousands ) $16,868 $28,129 $30,475 Performance Production Cash Cost ($US per Cu lb eq ) (1) $1.70 $1.51 $1.33 Total Cash Cost net of by-products $1.17 $1.16 $1.04 ($US per Cu lb eq ) (2) Net Revenue ( thousands ) $14,394 $24,250 $26,811 Operating Cash Flow (thousands) $3,797 $6,049 $3,508 Net Earnings (thousands) ($2,294) $2,313 $2,961 Basic Earnings per share ($0.004) $0.003 $0.004 1. Production cash cost consists of direct and indirect operating expenses, excluding depreciation/amortization expenses and marketing expenses. 2. Total cash cost net of by-products consists of direct and indirect operating expenses and selling expenses, excluding depreciation/amortization expenses, and the gross revenue from gold, silver and zinc (by-products) is deducted. 11

Operations Snapshot Q1 Q4 Q3 2012 2011 2011 Production Production (thousand Cu lb eq) 8,196 7,522 6,527 Metals Produced 3,357 Copper (thousand lbs) 4,455 4,497 4,842 4,807 2,487 Zinc (thousand lbs) 2,061 2,949 1,886 Gold (oz) 123,917 Silver (oz) 154,173 139,820 12

Q1 2012 Performance • During Q1 2012, TVI had a net loss of $2.3 million compared to net income of $0.3 million for Q1 2011. The net loss was primarily due to the following: • Average copper prices in Q1 2012 declined 12% to US$3.85/lb from US$4.38/lb in Q1 2011; • An increase in treatment, refining and other charges deducted from gross revenue of 14.7% from 4.7% in Q1 2011. This increase takes into consideration the quality of the concentrates and the change in destination of the concentrate shipments • Mining, milling and other expenses in Q1 2012 increased to $9.3 million compared to $3.8 million incurred in Q1 2011 as a result of: • increased consumption of additional and more expensive chemicals required to process the complex orebody, to continue to produce saleable concentrate • additional blasting due to hardness of the ore; blasting cost has increased from 2% of Production Cash Cost per ton milled in September 2011 to 6% in March 2012 • additional sorting to manage the mill feed grade 13

Q1 2012 Performance • The ore feed grades have continued to decline, as expected in the mine plan. The average copper feed grade during the quarter was 0.85% Cu compared to 1.15% Cu in Q1 2011. • The operations team has worked to suppress the penalty elements while the buyer of copper concentrate has agreed to a relaxation of such, thereby allowing the Company to focus further on process optimization and to stabilize production. The result has already been improvements in copper recovery from 67.28% in February to 79.77% in March 2012, as compared to a year average in 2011 of 73.23%. 14

Q1 2012 Performance Similar improvements in recovery of zinc and gold have also been realized, and with its continuous improvement programs, TVI will continue to optimize its throughput in an effort to offset expected declining feed grades 15

Our Properties North Zamboanga Tenement Area = 162,403 hectares (401,307 acres) Tamarok & Tapisa Copper / Gold Projects 0 Kilometres 25.0 Manila 0 Miles 15.5 Bonbon Gold Prospect Santa Maria Balabag Port Facility Gold / Silver Project Greater Canatuan Tenement Area Canatuan Copper / Zinc Mine 16

Canatuan Copper & Zinc Mine Volcanogenic Massive Sulphide Deposit (Cu/Zn/Au/Ag) Priorities Initial Reserves (NI 43-101, 2008) • Expand current orebody Proven & Probable 3,034,383 t @ 1.35% Cu, 1.05% Zn, 0.75 g/t Au & 36.09 g/t Ag – initial P&P reserves – 3.0 million tonnes – P&P reserves processed – 2.2 million tonnes (Dec Initial Resources 31, 2011) Measured & Indicated 3,787,969 t @ 1.10% Cu, 0.87% Zn, – remaining mine life based on original resources 0.62 g/t Au & 30.17 g/t Ag (reserves included in resources) alone is ~1.4 years based on throughput of 2,621 t/d (Mar 31/12) – Q4 - ore reserves mined accounted for ~63% of mill throughput – year to date - ore reserves mined accounted for ~58% of mill throughput • Find new ore • Optimize Production Costs Current Reserves (Dec 31, 2011) Concentrate Production Proven & Probable 1,490,623 t @ 0.95% Cu, 1.15% Zn, • Targeted throughput ~2,600 t/d 0.61 g/t Au & 22.02 g/t Ag • Approximately 5,000 dmt per Cu shipment Current Resources (Dec 31, 2011) – 28 copper shipments to date Measured 1,717,678 t @ 0.87% Cu, 1.02% Zn, 0.55 g/t Au & 20.46 g/t Ag – 3 zinc shipments to date (reserves included in resources) 17

18 Canatuan Mining, Production & Shipment

19 Canatuan Sulphide Tailings Dam