TVI Pacific Inc.

TVI Pacific Inc.

July 21, 2005 10:07 ET

TVI Pacific Inc.: Rapu Rapu-Exploration Update

CALGARY, ALBERTA--(CCNMatthews - July 21, 2005) - TVI Pacific Inc. (TSX:TVI)

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 July 20, 2005

First Gold poured as Production Commences at Rapu Rapu

Lafayette Mining Limited is pleased to announce, after successful commissioning of the gold plant at the Rapu Rapu Project, that the first gold was poured yesterday.

Lafayette's Managing Director, Mr Andrew McIlwain, said, "This is a significant event in the Company's history, transforming the Company from a junior explorer to a producer.

Importantly, he also noted, it is the first foreign funded mine to be commissioned in the Philippines in 30 years, with the Company appreciative of the continued support from the Philippine Government and local authorities.

Mr McIlwain acknowledged the achievements of the dedicated workforce of National and expatriot workers and Leighton Contractors (Phils) Inc in bringing this project to production.

"The next step is to continue this success with the commissioning of the base metals plant in the 4th quarter of 2005 when we start to produce copper and zinc concentrates", Mr McIlwain said.

The Board and Management of Lafayette are excited about moving into the production phase at Rapu Rapu and acknowledge the continuing support from its patient shareholder base.

About Lafayette Mining Limited (ASX: LAF)

Lafayette Mining Limited, through its subsidiary companies and Philippine partners, hold an interest in the Rapu Rapu polymetallic project in the Philippines. The Rapu Rapu mineral resource will support an initial 6 year mine life producing approximately 10,000 tonnes of copper in concentrates, 14,000 tonnes of zinc in concentrates, 50,000 ounces of gold and 600,000 ounces of silver annually.

Project construction commenced in mid 2004 under a fixed price construction contract with Leighton Contractors (Phils) Inc covering the plant, wharf, and associated infrastructure. Mining operations started in early 2005. Following the start up of the Gold Plant, the Base Metals Plant will be commissioned producing copper (with contained gold and silver) and zinc concentrates.

The Project is financed through a syndicate of banks comprising NM Rothschild & Sons (Australia) Limited, ANZ Investment Bank, ABN AMRO Bank NV (Australian Branch), Korea First Bank and Investec Bank (Mauritius) Limited. Lafayette made its first drawdown of funds under this facility in early September 2004.

The Project has also secured the support of LG International Corporation and KORES, the Korean government strategic resources investment arm, whom together, hold 26% of Lafayette's subsidiary company, Lafayette Philippines Inc.

The December 2004 decision by the full bench of the Supreme Court of the Philippines in favour of foreign investment in the Mining Sector has been reinforced by President Gloria Macapagal-Arroyo's recent political commitments and her Administration's full support of the mining industry.

In a major thrust to support investment in the sector, the Philippines government is now committed to implementing streamlined procedures for mining applications which investors can be confident will be administered under a clear policy directive to support resource development in a transparent and sustainable manner.

Lafayette is fortunate that the commencement of production from the Rapu Rapu Project is timely both in the context of the current metal price environment and the changed political landscape in the Philippines. As the sponsor of the first new foreign funded mine for many years, Lafayette has secured itself a pre-eminent position in the local industry which, when in production, will rank alongside the major Philippine companies.

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"Lafayette's announcement is great news for TVI shareholders" said Clifford James, President and CEO of TVI Pacific Inc. "Commencement of production at Rapu Rapu means TVI will begin receiving cash payments without any costs from its 2.5% NSR royalty on the project."

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

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

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

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