TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

June 05, 2006 19:13 ET

TVI Pacific Inc. Announces Extension of Warrants

CALGARY, ALBERTA--(CCNMatthews - June 5, 2006) - TVI Pacific Inc. (TSX:TVI) (the "Company") announced today that it has applied for approval from the Toronto Stock Exchange to extend the expiry date of 7,169,573 outstanding share purchase warrants (the "Warrants") and broker warrants from June 11, 2006 to December 11, 2006. The extension will be effective at 4:00 p.m. (Alberta time) on June 10, 2006 and does not apply to warrants held by insiders of the Company, which will, if not exercised, expire on June 11, 2006. The Warrants were originally issued in two tranches, as announced on June 14th and 21st, 2004, respectively.

On June 14, 2004, TVI announced the completion of the first tranche of a private placement in the provinces of Alberta, British Columbia and Ontario and certain non-Canadian jurisdictions. An aggregate of 15,184,393 Units, each consisting of one common share in the capital of the Corporation and one-half of one Common Share purchase warrant, were sold for aggregate gross proceeds of $2,288,788.

On June 21, 2004, TVI announced the completion of the second tranche of this private placement to purchasers resident in the United States. An aggregate of 400,000 Units, each consisting of one common share in the capital of the Corporation and one-half of one Common Share purchase warrant, were sold for aggregate gross proceeds of $60,000.

Each full Warrant issued in connection with the private placement entitled the holder to acquire one common share of the Company at a purchase price of $0.175 during the first 12 months following the date of issuance of the Units. 526,717 warrants were exercised during the initial 12-month period. The exercise price at which a common share of the Company may be acquired upon the exercise of a full warrant has increased to $0.21 in accordance with the terms of the Warrants, and that exercise price is to remain in effect for the extended exercise period.

In addition, 1,255,833 common share purchase warrants were issued to Haywood Securities Inc. (the "Agent's Warrants") in connection with the offering, each such Agent's Warrant entitling the holder thereof to one Common Share at a purchase price of $0.175 during the first 12 months following the date of issuance of the Agent's Warrants and at a purchase price of $0.21 during the second 12 months following the date of issuance of the Agent's Warrants.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

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