TVI Pacific Inc.

TVI Pacific Inc.

March 12, 2008 09:00 ET

TVI Pacific Announces Filing of Statement of Claim

CALGARY, ALBERTA--(Marketwire - March 12, 2008) - TVI Pacific Inc. ("TVI" or the "Company") (TSX:TVI) announced today that a Statement of Claim, naming the Company as a defendant, has been filed with the Ontario Superior Court of Justice. In the Statement of Claim, the plaintiff (who is described as a shareholder of the Company), has alleged impropriety in relation to the Company's historical share option granting practices and that the Company made misrepresentations in prior financial statements that were restated in 2007. In relation to prior grants of options, the plaintiff has alleged backdating of options and the grant of options at times when the Company was in possession of material undisclosed information. In relation to prior financial statements, the plaintiff has alleged, among other things, that certain historical financial statements materially understated the Company's share option expense (and certain other expenses), materially understated the Company's net losses for the years ended December 31, 2006, 2005 and 2004 and materially overstated the Company's assets in its balance sheets as at December 31, 2006 and 2005.

In addition to the Company, the directors and certain current and former officers of TVI have been named as defendants. In the Statement of Claim the plaintiff seeks, among other things, an order certifying the action as a class proceeding and an order for pecuniary damages in the amount of $16 million (general and special damages of $15 million and punitive damages in the amount of $1 million).

The Company's Board of Directors has appointed a special committee to review the share option related allegations set out in the Statement of Claim and plans to vigorously defend the action.

About TVI Pacific Inc. (TSX:TVI)

TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for and producing precious and base metals within district scale systems in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Ltd. TVI's most advanced project, the Canatuan Mine, currently produces gold and silver dore.

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

Contact Information

  • TVI Pacific Inc.
    Clifford M. James
    President and CEO
    (403) 265-4356
    (403) 264-7028 (FAX)
    TVI Pacific Inc.
    Paul Moon
    Director, Corporate Communications
    (403) 265-4356
    (403) 264-7028 (FAX)