TVI Pacific Inc.

TVI Pacific Inc.

February 25, 2005 17:11 ET

TVI Pacific Inc. Announces Closing of $1,500,000 CAD Private Placement Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TVI PACIFIC INC.

TSX SYMBOL: TVI

FEBRUARY 25, 2005 - 17:11 ET

TVI Pacific Inc. Announces Closing of $1,500,000 CAD
Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - TVI Pacific Inc.
(TSX:TVI) (the "Company") has completed a $1.5 million private placement
of convertible debentures and warrants primarily funded by related
parties (the "Private Placement"). Seajay Management Enterprises Ltd.
("Seajay"), a corporation controlled by Clifford James, the President
and Chief Executive Officer of the Company, will be participating in the
issue in the amount of $1,075,000.

The issue is being placed as a 2-year convertible debenture that will
bear interest at the greater of Royal Bank of Canada prime plus 8% per
annum or 12% per annum. The holders of the debentures are entitled to
convert all or part of the principal of the debenture into common shares
at the rate of 50,000 common shares for each $5,000 so converted at any
time during the term of the debentures. According to the terms of the
debenture, the Company can force conversion if a designated volume of
the Company's common shares trade over $0.25 per share for a pre-defined
period. The participants in the Private Placement will additionally
receive approximately 7.5 million warrants (25,000 warrants for each
$5,000 principal amount of convertible debenture purchased). The
warrants will be exercisable at $0.105 per share in year one and $0.12
per share in year two, and will expire February 24, 2007. The debentures
are to be secured by a first charge on the Net Smelter Royalty held by
the Company and a general security interest over all of the present and
after acquired property of the Company.

All securities issued by the Company in these transactions are subject
to a four month hold period, expiring June 24, 2005.

The proceeds raised by TVI from this financing transaction will be used
for the Company's exploration and development programs, property
acquisitions, and for general working capital purposes.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TVI Pacific Inc.
    Clifford M. James
    President and CEO
    (403) 265-4356
    (403) 264-7028 (FAX)
    Email: tvi-info@tvipacific.com
    Website: www.tvipacific.com
    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.