TVI Pacific Inc.

TVI Pacific Inc.

October 17, 2005 11:02 ET

TVI Pacific Inc.: Rapu Rapu Mine Life Extended

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2005) - TVI Pacific Inc. (TSX:TVI)

- Final evaluation of Hixbar gold zone, 3km from the Rapu Rapu mine, confirms resource and expands the project mine life

-- 1.28 million tonnes @ 1.59 gpt Au and 11.76 gpt Ag

- Exploration underway to evaluate potential at Hixbar for base metal sulphides

The Rapu Rapu project, located in the province of Albay, Philippines, is a polymetallic mining project which a group of companies including Lafayette Mining Limited, a publicly traded Australian company, is developing.

TVI retains a 2.5% net smelter return royalty (NSR) in the project.

The following is a verbatim reproduction from a Lafayette news release issued on October 14, 2005. The complete release can be viewed on TVI Pacific's website at

Rapu Rapu life to be extended with Hixbar Resource confirmation

Final evaluation of infill drilling at the Hixbar gold zone has delivered a higher level of confidence in the mineral resource and provides the potential for an extended mine life of the Rapu Rapu mine in the Philippines, Lafayette Mining's CEO Andrew Mcllwain said today.

Speaking at the Sixth Asia Pacific Mining Conference in Manila, Mr. Mcllwain said the latest infill drilling results had been lodged with the Australian Stock Exchange today, and support earlier inferred resource estimates.

"This latest analysis has shifted a considerable percentage of the resource from Inferred to the more confident levels of Measured and Indicated. It allows us to now include this high confidence material into the mine plan," he said.

The previous Inferred resource at Hixbar was 1,227,000 tonnes at 1.67 g/t gold. The revised JORC compliant resource shifts 90% of the resource into the Measured and Indicated (77% and 13% respectively) category. The revised resource estimate was prepared in accordance with JORC Code requirements by Micromine Consulting as is contained in the table as follows:

Au Equivalent
Class Tonnes Gold - g/t Silver - g/t Ozs (Au + Ag)

Measured 988,000 1.64 10.69 57,580
Indicated 157,000 1.59 17.59 9,460
Inferred 135,000 1.27 12.79 6,410
Total 1,280,000 1.59 11.76 73,450

"These results are excellent news because they lift the production profile of the Rapu Rapu mine and have the potential to expand mine life from six to at least eight years," Mr. Mcllwain said.

The Hixbar deposit is located about 3km west of the Rapu Rapu mine.

Significant results from the latest infill drilling program include:

HXRRC-088 13m @ 2.78g/t Au
HXRRC-095 15m @ 16.82g/t Au
HXRCC-125 11m @ 5.57g/t Au
HXRRC-132 8m @ 10.30g/t Au
HXRRC-175 10m @ 3.00g/t Au

Gold Plant production at Rapu Rapu commenced in July 2005 and the Base Metals Plant is on track for commissioning next month.

The focus of the exploration program for the next six months will be further evaluating the Hixbar potential for base metal sulphides and completion of a regional electro magnetic survey.

The information in the report that relates to mineral resources is based on information complied by Dmitry Pertell who is a Member of the Australian Institute of Geoscientists and who is employed by Micromine Proprietary Limited.

Dmitry Pertel has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined n the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources. Dmitry Pertel consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

"Lafayette's announcement is excellent news for TVI shareholders" said Clifford James, President and CEO of TVI Pacific Inc. "Extension of the Rapu Rapu mine life, potentially, by at least 2 years increases the life and the value of TVI's 2.5% NSR royalty on the project. Furthermore, with the ongoing property-wide exploration program which is currently underway, TVI remains confident that additional discoveries outside of both the initial Ungay Malobago pit and the new Hixbar resource area will be forthcoming and any such discoveries will continue to increase both the life and the value of the 2.5% NSR royalty. Under the terms of our royalty agreement with Lafayette, with the commencement of metal production announced in July, we expect to receive our first royalty payment at the end of October"

About TVI Pacific Inc. (TSX: TVI)

TVI Pacific Inc. is a publicly-listed (TSX:TVI) mining company focused on exploring and producing precious and base metals within district scale systems in Asia.

In the Philippines, TVI's most advanced project, the Canatuan Mine, the first, new, foreign-invested mine in many years, began mining and milling operations in mid 2004, and is now producing gold and silver in excess of 700 dmtpd (110 AuEq oz per day) from a gossan/oxide zone. Expansion is underway to achieve 1200 dmtpd (180 AuEq oz per day) by the end of 2005. Subject to receiving a positive feasibility study, which is currently underway, the construction of a sulphide flotation plant at Canatuan to process both copper and zinc concentrates from a sulphide zone is planned to be operational by the end of 2006. TVI holds a valuable 2.5% net smelter return (NSR) royalty on the Philippine-based Rapu Rapu project, the second foreign-invested, new, mining project in the Philippines, which has recently begun operations, with royalty cash flow to TVI beginning in Q4, 2005. Exploration in the Philippines is being conducted at Canatuan both to expand its resource base and to find new deposits, and at Balabag which represents a promising, advanced - stage gold exploration property located in North Zamboanga, near Canatuan. Extensive applications have also been filed on a new copper-gold mineral district, also near Canatuan, on which exploration is planned in the near future.

In China TVI's wholly-owned Chinese subsidiary, Hunan Pacific Geological Exploration Inc. (HPGEI) is the first foreign mining company to be granted both WOFE status and a Qualified Explorer Licence. HPGEI has four areas of interest; the Shuikoushan and Haoya gold exploration projects, areas of interest in the Golden triangle region on which exploration licences have been filed, and Tibet where initial exploration has begun.

TVI also has a Drilling Division, based in both the Philippines (EDCO) and China (HPD), which provides cash flow from contract drilling, and is currently experiencing a rapid growth in level of activity.

Ian Perry, P.Geo. of Norwest Corporation, serves as TVI's "Qualified Person" (for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Deposits) on this project, has reviewed this news release.

The statements herein that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied by forward looking statements. The forward-looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Additional risks relating to the Corporation's operations at Canatuan are contained in TVI's Annual Information Form, which has been filed with securities regulatory authorities in Canada and is available at and on the Corporation's web site at

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

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