TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

January 19, 2006 12:39 ET

TVI Pacific Inc. Clarifies its Relationship with Phelps Dodge Exploration Corporation

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2006) - In response to inquiries, TVI Pacific Inc. (TSX:TVI) ("TVI") wishes to clarify the nature of its existing relationship with Phelps Dodge Exploration Corporation ("PDEC"), which was discussed in the January 17, 2006 press release disseminated by TVI Pacific Inc. TVI and PDEC have recently entered into a letter agreement under which TVI has agreed to acquire, collate and interpret geologic and geophysical data from Yunnan Province, China. Copies of all data acquired and all reports and analyses prepared by TVI in respect of that data are to be released to PDEC. To expedite this acquisition, PDEC has agreed to advance funds to TVI in the amount of USD $115,000.

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 (the first, new, foreign-invested mine in the Philippines in many years) began mining and milling operations in mid 2004 producing gold and silver dore. Mill throughput is currently in excess of 1,000 DMTPD (approximate production of 130 AuEq oz per day). For purposes of the foregoing, gold equivalent values were calculated applying a gold price of US$500 per troy ounce and a silver price of US$8.50 per troy ounce. Further expansion of the mill's processing capacity is underway. Subject to receiving a positive feasibility study, which is in progress, TVI's expansion plans for 2006 contemplate the construction of a sulphide flotation plant at Canatuan to process both copper and zinc concentrates. In addition, TVIRD 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), which recently commenced operations, with royalty cash flow to TVI beginning in Q4, 2005. Exploration in the Philippines is being conducted at Canatuan (both to expand TVI's resource base and to find new deposits), and at Balabag, which management of TVI views as a compelling exploration property. Extensive applications, which cover an area of 1,257.12 km2, have also been filed on a new copper-gold mineral district, near Canatuan, on which exploration is planned in the near future.

In China, TVI's wholly-owned Chinese subsidiary, Hunan Pacific is the first foreign mining company to be granted both WOFE status and a Qualified Explorer Licence. HPGEI has three areas of interest -- the Shuikoushan gold exploration project, areas of interest in the Golden Triangle region, on which exploration licences have been filed, and Tibet where initial exploration has commenced and where exploration licences are being pursued.

TVI also has a Drilling Division, based in both the Philippines (EDCO) and China (HPD), which generates revenue from contract drilling.

About Phelps Dodge Exploration Corporation

Phelps Dodge Exploration Corporation, a subsidiary of Phelps Dodge Corporation, explores for copper deposits around the world through a combination of in-house expertise and strategic alliances. With its operating expertise and financial resources, the company works with joint venture partners to further its exploration goals. Phelps Dodge Corporation is one of the world's largest producers of copper, with operations and investments in mines and manufacturing facilities in more than 20 countries and with more than 14,000 employees worldwide.

The statements in this News Release 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. Although the letter agreement entered into between TVI Pacific and Phelps Dodge is stated to be a binding and enforceable contract between TVI and Phelps Dodge, it does not obligate TVI or Phelps Dodge to enter into further definitive agreements respecting joint exploration of mineral properties in Yunnan Province, China and no assurance can be given that such definitive agreements will be successfully negotiated, executed and delivered by the parties. 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 exploration and development activities are set out in TVI's Annual Information Form, filed by TVI on SEDAR on April 6, 2005, 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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