TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

June 06, 2006 11:10 ET

TVI Pacific Provides Balabag Exploration Update

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) -

ENCOURAGING GOLD AND SILVER VALUES CONTINUE TO BE RETURNED FROM EIGHT ADDITIONAL HOLES IN ONGOING DRILL PROGRAM

- LATEST INTERCEPTS INCLUDE 8.12 METERS GRADING 10.99 g/t AuEq (incl. 3.0 m @19.46 g/t AuEq) AND 5.45 METERS GRADING 8.07 g/t AuEq (incl. 3.0 m @10.15 g/t AuEq)

- DRILL PROGRAM INCREASED TO 44 HOLES WITH A COMBINED AGGREGATE METERAGE OF 6,870 M

-- 28 ADDITIONAL DRILL HOLES WITH A METERAGE OF 4,270 M PLANNED FOR TINAGO AND 16 ADDITIONAL DRILL HOLES WITH A METERAGE OF 2,600 M PLANNED TO TEST THE MISWI/LALAB VEIN SYSTEM

- DATA SUGGESTS CONTINUITY OF THE MAIN TINAGO VEIN SYSTEM FURTHER ALONG STRIKE TO THE WEST AND DOWN DIP

-- 8 METER WIDE VEIN MAPPED FURTHER WEST, INCREASING TINAGO STRIKE LENGTH POTENTIAL TO 800 METERS

- MISWI VEIN SYSTEM EXPOSED AND SAMPLED IN 4 TRENCHES WITH LATEST RESULTS OF 3.0 METERS GRADING 9.13 g/t AuEq AND 5.0 METERS GRADING 3.92 g/t AuEq

TVI Pacific Inc. (TSX:TVI) (TVI) is pleased to announce that its Philippine affiliate, TVI Resource Development (Phils.) Inc. (TVIRD), has completed additional exploration drilling on the Balabag Property, located in Zamboanga del Norte, Philippines. (Information concerning the results of the initial drilling program at Balabag was included in the Company's February 27, 2006 news release) A total of 7 additional drill holes (BDDH 7 to 14) have been completed using a combination of PQ3 (triple tube) and HQ3 (triple tube), bringing the total to 14 drill holes, with a total aggregate meterage of 1004.3 meters. Results from drill hole (BDDH 15) are still pending as of the date of this release. Drilling was undertaken by Exploration Drilling Corporation, TVI's wholly-owned subsidiary.

Certain information set out in this News Release, including anticipated exploration activities and expectations respecting recommencement of operations by the operator of the Rapu Rapu property and timing of royalty payments to the Company in respect of production at Rapu Rapu constitute forward-looking information. Readers should review the cautionary statement respecting forward-looking information that appears at the end of this News Release.

Drilling Program Expanded

The encouraging drilling results from the Tinago vein have prompted the Company to expand the current exploration drilling program to 4,270 meters (from 3,600 meters), with a total of 28 additional holes planned for the rest of the 2006 year. Another 16 holes (2,600 meters) are expected to be drilled on the Miswi / Lalab vein system, starting in the third quarter of 2006. (see attached figure 1: Balabag Prospects Completed & Proposed Drill Hole Location Map, also available on the Company's website).

"We are very encouraged by the continued positive results received from the on-going drilling campaign," said TVI CEO Clifford M. James. "In light of the new data, we are stepping up our exploration efforts for the remainder of the year in an attempt to delineate an orebody at Balabag. Positive results from the expanded exploration program could ultimately lead us to a production decision at Balabag and justify a stand-alone mining operation."



Table 1. TINAGO latest drill results of vein intercepts are summarized
below:

------------------------------------------------------------------------
Depth of Mineralized Width of Au Ag AuEq
Hole No. DH (m) Interval (m) Interval (m) (gpt) (gpt) (gpt)
------------------------------------------------------------------------
BDDH 8 66.70 15.28 to 23.4 8.12 6.63 267.35 11.49
------------------------------------------------------------------------
BDDH 8 Incl. 17.2 3.00 11.32 498.80 20.39
to 20.2
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 9 79.80 37.65 to 41.0 3.35 1.83 10.81 2.03
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 10 78.10 38.85 to 40.85 2.00 1.57 11.55 1.78
------------------------------------------------------------------------
BDDH 10 42.85 to 47.95 0.95 2.13 59.6 3.21
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 11 86.6 42.2 to 44.3 2.10 0.73 6.02 0.84
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 12 85.00 34.3 to 38.45 4.15 1.89 75.59 3.26
------------------------------------------------------------------------
BDDH 12 82.4 to 83.96 1.56 3.40 16.70 3.70
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 13 80.00 44.0 to 47.95 3.95 0.32 6.68 0.44
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 14 65.00 27.95 to 33.4 5.45 3.90 255.77 8.55
------------------------------------------------------------------------
BDDH 14 Incl. 29.4
to 32.4 3.00 4.99 316.23 10.74
------------------------------------------------------------------------
------------------------------------------------------------------------
BDDH 15 Ongoing 24.5 to 27.5 3.00 2.30 92.18 3.98
------------------------------------------------------------------------

For the purpose of calculating gold equivalent values a gold price of
US$ 550 per oz and silver US$ 10 per oz were used. Au and Ag equivalent
calculations reflect gross metal content and have not been adjusted for
metallurgical recoveries. True widths are approximately 85% of the
reported lengths.


Tinago Vein Continuity

Several surface outcrops, workings and tunnels by artisan miners have been mapped and sampled along strike to test the west trend of the Tinago vein. An 8 meter wide vein exposure located some 250 m west of the "Vitalla" tunnel has been mapped and was exposed also in the cut across along the tunnel. The vein exhibits fine crystalline texture with crosscutting stockworks and highly pyritized vein wall contacts. A total of 14 samples were collected and sent for analyses. Assay results are pending. Management believes that the new vein exposure is a continuation of the Tinago vein to the west. If that interpretation is correct, the strike length of the Tinago vein would increase to approximately 800 m, nearly doubling the perceived length of the system.

Data suggesting the continuity and trend of the Tinago vein has been collected elsewhere along the Takay tunnel and along the creek located between the Vitalla tunnel and Roheng tunnel. Management believes that the vein in this area is about 3 meters wide, commonly massive fine crystalline to saccharoidal with pyritic vein wall contacts. Another 13 samples were collected in the tunnel and nearby vein outcrops. Assay results are pending.

Miswi Area

At the Miswi area, which lies approximately 400 m east-southeast of Tinago, 5 trenches were completed with an aggregate meterage of 454 meters of which 4 trenches (TR-11, TR-12, TR-13 and TR-14) showed encouraging results and are tabulated below.



------------------------------------------------------------------------
TRENCH NO. INTERVAL (m) Au (gpt) Ag (gpt) Au Eq. (gpt)
------------------------------------------------------------------------
Trench 11-3 3.0 6.01 191.27 9.49
------------------------------------------------------------------------
Trench 12 2.0 3.12 67.70 4.35
------------------------------------------------------------------------
Trench 13-1 5.0 3.02 54.94 4.02
------------------------------------------------------------------------
Trench 14-1 2.0 1.40 1.65 1.43
------------------------------------------------------------------------
Trench 14-2 2.0 1.65 2.45 1.69
------------------------------------------------------------------------
------------------------------------------------------------------------

For the purpose of calculating gold equivalent values a gold price of
US$ 550 per oz and silver US$ 10 per oz were used. Au and Ag equivalent
calculations reflect gross metal content and have not been adjusted for
metallurgical recoveries.


These trench sample results suggest a surface extension of the quartz vein mapped underground inside the Bulldog, Rendeza, and Takloy tunnels. Prior work had identified two parallel mineralized veins (Bulldog-Rendeza and the Takloy-Magbanua vein as in the Company's February 27, 2006 news release) and drilling is planned to collect additional data on these two veins (see attached figure 2: Miswi Completed trenches Drill Hole & Tunnel Location Map, also available on the Company's website).

Lalab Area

In the Lalab area located about 400 m west of Miswi, a 20 meter wide zone of quartz-clay-pyrite alteration with occasional centimeter-wide quartz-pyrite veining has been mapped and sampled. Management believes that this zone of alteration represents a surface manifestation and continuation of the Miswi vein system. A total of 41 channel samples have been collected and sent for assaying (results are not yet available). Two trenches (TR-17 and TR-19), 90 m and 60 m long respectively, are currently being dug some 50 m east and west of the Lalab vein exposure to further assess its continuity.

Unao-Unao Area

Two additional sites were mapped and sampled at the Unao-Unao area, located approximately 300 m east of Tinago, with a total of 13 samples collected and sent for assaying (results are not yet available). The vein mapped at the first site inside the Rendo sinking/tunnel is a 1 meter wide vuggy crystalline quartz vein, lined with comb quartz crystals. At the second site, which is 120 m to the east of the first site, the mapped vein is a 3 meter-wide strongly silicified zone with closely-spaced quartz stockworks. Management believes that the Unao-Unao vein outcrop could be a displacement of the Tinago vein to the east exhibiting very similar attitude and vein textures and character. (See attached figure 3: Unao-Unao Drill hole & Tunnel Location Map, also available on the Company's website.)

Interpretation

Data collected to date suggests the presence of an epithermal multi-vein system outcropping all around the andesitic hill ridge at Balabag and covering an area some 1,000 m long (east-west) by 400 m wide (north-south). It has been delineated by trenches (16 in total including 2 currently on-going), some drilling (19 drill holes so far) and a number of adits and shafts excavated by a number of artisan miners that have been active in the area. The Tinago vein is the dominant structure at Balabag. It has been intersected by a number of drill holes and active mining tunnels in the central part of the ridge. It is shown to extend for approximately 800 m going west where it has been exposed by trenches dug across the width of the Balabag hill ridge. Its thickness appears to be highly variable. A twin vein system running sub-parallel to Tinago has also been identified and sampled in a number of trenches going from Lalab, an occurrence located directly South of Tinago, to Miswi, another occurrence located some 400 m further to the East. The Miswi showings were excavated by a number of tunnels that are largely still active. Data suggests that the Miswi-Lalab twin vein structures are each a few meters thick, definitely thinner than that of Tinago, yet both veins appear to return consistent 1.6 to 6 gpt Au assays when exposed in trenches. Another vein outcrop was uncovered even further South of Miswi-Lalab that could possibly be linked to a deep historical drill intersection (drill hole BRDD-003, described in the Company's February 27, 2006 news release) located at the Eastern edge of the ridge. Finally other thinner (meter-wide) vein occurrences are found at Unao-unao, located to the Southeast of Tinago.

The mineralization consists of a series of vein structures stacked sub-parallel to each other, typically a low-sulphidation epithermal vein system, oriented N70W, dipping northerly about 30 to 40 degrees (variable).

Data suggests that 4 or 5 distinct vein structures may be present. They vary greatly in thickness, from 0.5 up to 22 m (largest interval) in true width. The veins are interpreted to pinch and swell, merge and part as a stack, yet post mineralization faulting is suspected to have caused some displacement locally and may account for some off-setting and the irregular vein occurrences observed in the early drilling. The vein structures are otherwise found to be relatively continuous and persistent, as exposed by the trenching, tunneling and mapping. There exists good correlation of the mineralized structures in terms of grades and facies between surface and underground exposures, mapping and drill intersections.

A preliminary 3D model (Gems) was generated in an effort to better identify and differentiate the various vein structures. It provided clues to the existence of one (possibly more) deeper mineralized structure that was intersected in previous (historical) drilling. Drill hole BRDD-003, drilled by a foreign company in 2003, is reported to have intersected one mineralized structure between 79 m and 90 m (down the hole) i.e. a composited interval of 11 m (according to available records) averaging 5.2 gpt followed by another tangible interval of 3 m between 90 and 93 m averaging 16.61 gpt Au, or combined together for a 14 m interval averaging 7.65 gpt Au.

The foregoing information reported by the foreign exploration company should not be relied upon and the reproduction of such information in this News Release should not be taken as confirmation by TVI Pacific or TVIRD of the accuracy or reliability of such information.

Current Work Program and Quality Assurance

The current work program calls for continued mapping, trenching, channel sampling and exploration diamond drilling in an attempt to delineate an orebody at Balabag. Management is confident the program is well managed with field and interpretative work carried out diligently by the TVIRD team. The drilling supervision, core logging, mapping trenching and channel sampling procedures are in-line with current mining practices. Core samples, typically one meter long, are sawed using a circular carbide-blade apparatus. Wherever practical to do so, the channel samples are cut 5 to 10 cm deep using circular carbide saw-blade across the exposed rock surfaces and structures in trenches and outcrops. Likewise the drill logs are neat, descriptive and include RQD measurements, fracture counting, with comprehensive sampling interval determinations. Overall, in Management's view, the field and interpretative work is of high quality.

Outlook

Data collected at Balabag suggests that some if not all of the vein structures remain largely open on strike and at depth. Should the veins have a minimum continuity (as TVIRD believes to be the case) systematic drilling at 50 meter spacing could result in substantiating and extending the vein system. An expanded drilling campaign designed to summarily delineate the local vein system has therefore been initiated. Systematic drilling could potentially prove up sufficient tonnage with a grade which would potentially support an open-pit stand-alone mining operation.

There has been insufficient exploration to define this target fully at this time and it is uncertain that further exploration will result in further discoveries on the Balabag property.

TVIRD holds an option on the Balabag property, which was granted under an agreement with Zamboanga Minerals Corporation (ZMC). Balabag lies approximately 75 km east-northeast of the TVIRD's gold-silver mining operation at Canatuan, and immediately adjacent to the extensive tenement applications filed by TVIRD in early 2005, which cover an area of 1,257.12 km2. The Mineral Production Sharing Agreement (MPSA) under which ZMC obtained its rights to the Balabag property covers an area of 47.79 km2. The agreement between TVIRD and ZMC provides TVIRD with an exclusive period ending May, 2008 to assess the mineral potential of the property. Should TVIRD so elect, the property may be purchased for US$350,000, with ZMC then retaining a 2.5% net smelter royalty on the property.

Technical drawings and maps setting out additional information relating to the drilling and sampling program may be found at the Company's web-site at www.tvipacific.com. A technical report (prepared in accordance with National Instrument 43-101) setting out additional details relating to the prior sampling program at Balabag was filed (on SEDAR) with certain securities regulatory authorities in Canada on September 27, 2005. Additional information concerning the geology, mineral occurrences and nature of mineralization found at Balabag is also set out in the September 27, 2005 report.

Although management of TVI is encouraged by the exploration results generated to date in the Balabag area and has determined to undertake further exploration activities, readers are cautioned that there has been insufficient exploration to date to define a mineral resource and it is uncertain whether further exploration will result in the identification of a mineral resource.

About TVI Pacific Inc. (TSX: TVI)

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

In the Philippines, TVI's most advanced project, the Canatuan Mine began mining and milling operations in mid-2004, producing gold and silver dore. Mill throughput is currently over 1,500 dmtpd ( greater than 160 AuEqOz per day) from a gossan/oxide zone. Further expansion of the mill's processing capacity is underway. In addition, TVI holds a 2.5% net smelter return (NSR) royalty on the Philippine-based Rapu Rapu project (the second foreign-invested, new, mining project in the Philippines operated by Lafayette Mining Ltd.). First gold was poured in July 2005 with TVI receiving its first royalty payment in November 2005. On November 10, 2005, Lafayette announced it had suspended all activities to investigate two unauthorized discharges of process water. In Lafayette's first quarter report released April 26, 2006, Lafayette indicated that it has returned to commissioning of the Rapu Rapu plant and, with government support, will soon commence base metal production. Assuming this occurs, TVI would expect royalty payments to resume in the third quarter of 2006. Exploration in the Philippines is being conducted at Canatuan (both to expand TVI's resource base and to find new deposits), and at Balabag, Tamarok and Tapisa which management of TVI views as compelling exploration properties.

In China, TVI's wholly-owned Chinese subsidiary, Hunan Pacific Geological Exploration Inc. (HPGEI) is the first and only foreign mining company to be granted both WOFE status and a Qualified Explorer License. HPGEI has three main areas of interest in China - gold exploration in the Golden Triangle, a prospective metallogenic region in the provinces of Guizhou, Yunnan and Guangxi Autonomous Region, copper/gold exploration in Yunnan Province and copper/gold exploration in the Tibet Autonomous Region. HPGEI has 168,200 hectares of land under application in China in the Golden Triangle and in the Tibet A.R.

TVI also has a Drilling Division comprising of Exploration Drilling Corporation (EDCO), a wholly-owned subsidiary of TVI Pacific Inc. based in the Philippines, and Hunan Pacific Drilling (HPD), a division of HPGEI based in China which generates revenue from contract drilling.

Carl L. Caumartin BSc, P.Eng., MBA, Vice President, Exploration of TVI Pacific Inc. is serving as TVI's "Qualified Person" (as contemplated by National Instrument 43-101 (Standards of Disclosure for Mineral Projects)), for purposes of the Balabag exploration project. Mr. Caumartin has reviewed and approved this news release and has verified the data (including sampling, analytical and test data) set out in this news release. McPhar Laboratory of Manila, Philippines, an ISO 9001/2000 accredited laboratory, performed the sample preparation and assaying for the prior sampling phase of the exploration project at Balabag. Gold analysis was by 50 gm fire assay fusion; where gold values were greater than 3 ppm assay values were by gravimetric finish, and by AAS where the values were less than that threshold. Silver was determined by AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate results were included in the analytical report. A blank and a standard sample were included for each batch of 50 samples for quality control. A replicate assay was done on every 10th sample, and certified reference materials were used in every 20 samples. In addition to the laboratory's internal QA/QC, TVIRD independently inserted blanks and standards randomly, but on average every tenth sample.

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. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as the volatility of prices for precious metals and base metals, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of mining properties, ultimate recoverability of reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing and new laws (domestic or foreign). Forward-looking information respecting future exploration on the Balabag property are based on the results of earlier exploration initiatives, the current budget, development plans and overall strategy of TVI and the current exploration program, all of which are subject to change. Forward-looking information concerning recommencement of operations by the operator of the Rapu Rapu property and timing of royalty payments to the Company in respect of production at Rapu Rapu are based upon public statements made by the operator of the Rapu Rapu property. The forward looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks associated with the Company's operations are described in detail in TVI's Annual Information Form, filed by TVI on SEDAR on March 30, 2006, which is available at www.SEDAR.com.

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

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