TVI Pacific Inc.

TVI Pacific Inc.

August 23, 2005 10:15 ET

TVI Pacific Inc.: Rapu Rapu Exploration Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 23, 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 August 22, 2005:


Resource Increase at Rapu Rapu

Exploration drilling at the Hixbar mine area has proven to be successful, with the initial program providing results that have enabled the definition of an inferred resource of 1.3 million tonnes grading 1.7 grams per tonne gold and 15.4 grams per tonne silver, Lafayette Mining's CEO, Mr Andrew McIlwain announced today.

The Hixbar deposit that is currently being explored by Rapu Rapu Minerals is located less than three kilometres west of Lafayette's Rapu Rapu Project, and was previously an open cut and underground mine that was commercially developed in the 1930s and produced copper and pyrite through to the early 1960s.

"We have always seen Hixbar as a great opportunity once production capacity had been established at the Rapu Rapu Project," said McIlwain.

"The mineralisation at Hixbar is a repetition of what we are currently mining in the Ungay orebody, and this drilling has concentrated on the gold oxide potential surrounding the old mine. Encouragingly, these results are all from within a maximum depth of around 20m from surface and mining will be simple. Additionally, previous work has identified the continuation of deeper sulphide mineralisation and we will work towards confirming this into resource status as well," he said.

Table (1) - Hixbar Inferred Resource

Category Tonnes Grade - Au (g/t) Grade - Ag (g/t) Au equiv ozs
Inferred 1,227,000 1.67 15.35 75,600

The initial resource analysis has been based on more than 300 drill holes using the recent RC drilling results and previously completed diamond and auger programs, and has been prepared in accordance with JORC Code requirements in respect to the methodology applied by Micromine Consulting.

Significant results from this drilling program include:

- HXRRC-070 3m @ 31.32g/t Au
- HXRRC-023 4m @ 7.82g/t Au
- HXRRC-037 4m @ 6.71g/t Au
- HXRRC-024 8m @ 3.45g/t Au
- HXRRC-076 7m @ 3.25g/t Au
- HXRRC-053 6m @ 3.03/gt Au

Analysis of the Hixbar information included 3D digital interpretation of the gold mineralized envelopes followed by a geo-statistical analysis for gold grade distribution and grade interpolation of the mineralised envelopes.

Further resource work, with the inclusion of final assays, will be completed by October. This will provide an upgrade of the resource category and the completion of conceptual technical and financial studies to enable the development of the Hixbar gold oxide resource.

The first gold and silver pour from the Rapu Rapu mine, off the east coast of the island of Luzon, took place on 19 July this year. The base metals plant (for copper and zinc production) at Rapu Rapu is due to be commissioned in October.

"Based on current reserves, the Rapu Rapu mine has a six-year mine life. The proving up of the Hixbar resource extends our Life of Mine plans beyond this. We have always had confidence that our exploration team would deliver, and this is just the start of defining the potential of Rapu Rapu Island", Mr McIlwain said.

The information in the report that relates to mineral resources is based on information compiled by Dmitry Pertel who is a Member of the Australian Institute of Geoscientists and who is employed by Micromine Proprietary Limited.

Dmitry Pertel has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dmitry Pertel consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.


"Lafayette's announcement is excellent news for TVI shareholders" said Clifford James, President and CEO of TVI Pacific Inc. "Confirmation of an inferred resource at the Hixbar deposit with the possibility of an additional underlying sulphide resource will add to the value of TVI's 2.5% NSR royalty on the Rapu Rapu project. Furthermore, with the ongoing property-wide exploration program which is currently underway, TVI remains confident that additional discoveries outside of both the initial Ungay Malobago pit and the new Hixbar resource area will be forthcoming and any such discoveries will continue to increase both the life and the value of the 2.5% NSR royalty. Under the terms of our royalty agreement with Lafayette, with the commencement of metal production announced in July, we expect to receive our first royalty payment at the end of October."

Alan Flint, Vice President of Exploration of TVI Pacific and AUSIMM member, 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, has reviewed this press release.

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. 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. TVI Pacific Inc. does not assume responsibility for the accuracy and completeness of the forward looking statements and, subject to applicable law, does not undertake any obligation to publicly revise such forward looking statements to reflect subsequent events or circumstances. The forward looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement.

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

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