TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE Canatuan Open Pit Cu‐Zn Mine Volcanogenic Massive Sulphide (VMS) Deposit Zamboanga del Norte Location Map TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE The Canatuan Cu‐Zn Mine is located at the area Manila within the Municipality of Siocon, Province of Zamboanga Del Norte, Mindanao. It is reachable by 1 hour 40 minutes air travel from Manila to Zamboanga City. Zamboanga City Then a land travel of about 114 kilometers Highway Road from City to R. T Lim Town and 31 kilometers all‐weather road to the plantsite. Location Map TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE PORT STA. MARIA SIOCON The copper concentrate is being shipped from Sta. Maria Port at Siocon Town RT LIM which is about 30 kilometers from the minesite The Canatuan Cu‐Zn Mine Location TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE MINERALIZATION MODEL m. y. Geologic Time Intrusions Extrusions Sedimentation Dynamics Hydrothermal Fine & Dark Flows & 4.83 Pliocene‐Pleistocene Pyroclastics Un‐altered 17.7 Miocene Light & Light to Less altered 10.87 Oligocene Coarse & Light Continental Low T 21.9 Eocene 9.7 Paleocene High T 80 Cretaceous Oceanic 15.7 Late Jurassic Heavy & Dark Metamorphosed The Tectono‐sedimentary Setting of the Philippines VMS Au‐Cu‐Zn Deposits TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE The Theory of Geological Parities in the Philippines (Proposed by Gregorio S Hutalle, jr.) 1. Paired Subduction Zones (Cotabato and Sulu Tranches of Zamboanga) 2. Paired Terranes (East and West Terranes of Mindanao) 3. Paired Temperatures of Formation (High and Low Temp) 4. Paired Volcanism (Metamorphosed and Un‐metamorphosed) 5. Paired Sedimentation (Metamorphosed and Un‐metamorphosed) 6. Paired Extrusion (Dark Fine and Light colored coarse Intrusives) 7. Paired Ore‐localizing Faults (Steep and Low‐angled Faults) 8. Paired Host Rocks (Footwall and Hanging wall) 9. Paired Limestone( Metamorphosed below and reefal above) 10.Paired Coal layers (Anthracite below and sub‐bituminous above) 11.Paired Elements(Au‐Ag, Cu‐Zn) 12.Paired ore types ( VMS and Veins ) Regional Geology TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE The Canatuan area is underlain by folded, faulted, thrusted and brecciated metamorphic rocks, which make up much of Zamboanga Peninsula (Gervasio, 1966) i.e. characterized by quartz‐bearing mica schists and slates intruded by Late Oligocene to Late Miocene dioritic to monzonitic intrusions (Santos‐Yñigo, 1981). CANATUAN PIT SURFACE GEOLOGIC MAP (May 2011) TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE In 1999, Prior to open pit mining, TVI reported VMS reserves of 3.034 Mt grading 1.35% Cu, 1.05% Zn, 0.75 g/t Au TVI Resource Development (Phils.), Inc. 36 g/t Ag Canatuan Cu‐Zn Open Pit Mine May 2011 Photo TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE The remaining reserves as of January 1, 2011* Ending December 2010, is 2.017 Mt, TVI had produced a total of grading 101,839 DMT copper concentrate 1.08% Cu, Grading 1.13% Zn, 18.66 % Cu, 0.65 g/t Au 5.89 % Zn, 28.03 g/t Ag. 4.21 g/t Au, 333.09 g/t Ag. *There is on‐going near‐mine exploration to expand the current remaining reserves TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN Cu‐Zn MINE CANATUAN VMS DEPOSIT Drillhole Intercept Mapped/Exposed LENGTH 500 meters North‐South 600 m along outcrop Length of MSUL along structure 550 meters 550 meters WIDTH 300 meters East‐West 200 meters Geological Sections Width of widest Solid MSUL along dip (Bench 456) 230 meters 84 meters DEPTH (Deepest From Surface to bottom of MSUL) 48 meters 48 meters Longitudinal and Cross ‐ sections (522m‐423m) = 99 (522m‐429m) = 93 ELEVATION DIFFERENCE ( From Topmost to Bottomost of MSUL) meters meters Normal Range Mapped/Exposed GOSSAN THICKNESS 10 ‐ 28 meters 28 meters SULPHIDE THICKNESS 9 ‐ 23 meters 15 meters TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE TVI Resource Development (Phils.), Inc. TVI Resource Development (Phils.), Inc. CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE CANATUAN, TABAYO, SIOCON, ZAMBOANGA DEL NORTE A 3D View of the Drillholes, MSUL and the Optimized Pit TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine GEOLOGICAL‐STRUCTURAL ANALYSIS OF THE CANATUAN OREBODY The Topography TVI‐Resources Development Incorporated TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Canatuan Copper‐Zinc Mine The Creeks The Contour and Creek Linears TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine The different creek‐types were interpreted from the creek data. 1. Radial 2. Dendritic 3. First‐boxed 4. Second‐boxed 5. Third‐boxed 6. NW‐ trending Trellis 7. NNW‐ trending Trellis The Ridgeline, Curved creeks, and Arrowed reeks TVI‐Resources Development Incorporated TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Canatuan Copper‐Zinc Mine The Composite Creek‐types The Regional Structural Synopsis Plotted on Creeks and Creek‐types TVI‐Resources Development Incorporated TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Canatuan Copper‐Zinc Mine The Regional Structural Synopsis Showing Creek‐types The Regional Structural Synopsis Showing Creek‐types The Sequence of Structural Events : TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine 1. Fracturing to the NW‐trend (left‐lateral slip). This is perpendicular to the axis of bedding that is being folded. 2. Fracturing to the NE‐trend (parallel to the bedding) with associated thrust faults on both walls within Volcaniclastics at the general thrust direction towards the NE. 3. Up‐block faulting of the north and south blocks created by the crossing NE and NW fractures. The north block did not affect the prevailing bedding orientation (NE strike and SE dip) 4. Further up‐block faulting towards inside of the south block a. the south block fracture as it continuously move fast upwards than the rest of the blocks. b. The inside part of the split south block affected the beddings of the west block that tilted to the northwest (with the bed reversed in dip direction) as the south block continued to move up. 5. Fracturing to the NE‐trend (right‐lateral slip fault) of the western block with thrust faulting according to the slip direction on both walls within the bedded Volcaniclastics The Actual Measured Structures in The Pit TVI‐Resources Development Incorporated TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Canatuan Copper‐Zinc Mine The Actual Measured Structures in The Pit showing the creeks The Actual Measured Structures showing Pit Benches TVI‐Resources Development Incorporated TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Canatuan Copper‐Zinc Mine The Rupture Lines and Uplift Points The Deep Ruptures Nearest to Canatuan TVI‐Resources Development Incorporated Canatuan Copper‐Zinc Mine Only two of the 3 Deep Structures recognized from the Google Earth Map that are near the Canatuan Mine were identified using the contour and creek linears. These are the NE‐trending fault and the WNW‐trending fault. The NNW‐trending fault was only recognized during mapping within the Canatuan Pit. This NNW‐trending fracture prevails throughout time among all mineralization‐controlling structures. This NNW‐trend is parallel to the Philippine Fault The Canatuan Structures.