Siskinds, LLP

Siskinds, LLP

May 13, 2009 09:00 ET

TVI Pacific Inc. Securities Litigation Notice of Class Actions and Proposed Settlement

LONDON, ONTARIO--(Marketwire - May 13, 2009) - This notice is to all persons, and entities (other than Excluded Persons, as defined in the Settlement Agreement), who acquired securities of TVI Pacific ("TVI") during the period from and including March 30, 2006, to and including August 9, 2007 ("Class Period"), and held some or all of those securities on August 9, 2007 ("Class Members").

READ THIS NOTICE CAREFULLY AS IT MAY AFFECT YOUR LEGAL RIGHTS.

CLASS ACTIONS IN ONTARIO AND QUEBEC HAVE BEEN SETTLED FOR $2.1 MILLION

In 2008, class actions were commenced in Ontario and Quebec against TVI and certain of its current and former officers and directors (the "Defendants"). The Plaintiffs in the actions allege that the Defendants conspired and breached their duty of care to TVI's shareholders by issuing materially false and/or inaccurate audited consolidated financial statements for the years ended December 31, 2005 and 2006, and interim unaudited consolidated financial statements for the quarter ended March 31, 2007. The Plaintiffs also allege that TVI's Stock Option Plan (the "Plan") allowed for the granting of in-the-money options in contravention of the Plan's stated purpose, the TSX Company Manual prohibition and Ontario and Quebec securities legislation.

The parties in the class actions have reached a proposed settlement subject to obtaining the approval of the courts in Ontario and Quebec. The Settlement Agreement provides that the Defendants will pay $2.1 million (the "Settlement Amount") in full and final settlement of all claims, including class counsel fees, disbursements, taxes and administration expenses in return for releases and a dismissal of the class actions. Additionally, TVI has agreed to make efforts to re-price certain outstanding stock options and to adopt corporate governance measures targeted at eliminating the potential for future stock option manipulation.

The settlement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of any of the Defendants, all of whom have denied, and continue to deny, the allegations against them.

SETTLEMENT APPROVAL MOTIONS WILL BE HELD IN ONTARIO AND QUEBEC

The Settlement Agreement must be approved by the courts in Ontario and Quebec before it can be implemented. Class Members may, but are not required to, attend at the settlement approval motions which will be held:

1. In Ontario: on June 17, 2009 at 10:00 a.m. at the Courthouse, 361 University Ave., Toronto, Ontario; and

2. In Quebec: on June 22, 2009 at 10:00 a.m. at the Quebec City Court House, 300 boul. Jean-Lesage, Quebec City, Quebec.

If the Settlement Agreement is approved, another notice to Class Members will be published which will provide instructions on how to make a claim to receive compensation from the settlement amount and how to opt out of the class if the Class Member does not wish to share in, or be bound by, the settlement.

Class Members who do not oppose the proposed settlement do not need to appear at any of the hearings or take any other action at this time to indicate their desire to participate in the proposed settlement.

CLASS COUNSEL FEES AND ADMINISTRATIVE EXPENSES

In addition to seeking the courts' approval of the Settlement Agreement, Class Counsel (as identified below) will seek the courts' approval of their legal fees not to exceed 25% of the Settlement Amount, plus disbursements and applicable taxes ("Class Counsel Fees"). Class Counsel will also seek appointment of an Administrator for the Settlement Agreement whose fees, together with any other amounts incurred or payable relating to approval, notification, implementation and administration of the Settlement ("Administration Expenses"), will also be paid from the Settlement Amount. Class Counsel Fees and Administration Expenses will be deducted from the Settlement Amount before it is distributed to Class Members.

HOW WILL CLASS MEMBERS BE COMPENSATED?

The remainder of the Settlement Amount, after deduction of Class Counsel Fees and Administration Expenses (the "Net Settlement Amount") will be distributed to Class Members in accordance with the Distribution Protocol, which is Schedule "B" to the Settlement Agreement.

The amount of each Class Member's actual compensation from the Net Settlement Amount will depend upon: (i) the number and the price of TVI securities purchased by the Class Member during the Class Period; (ii) when the Class Member sold the TVI securities purchased during the Class Period and the price at which such securities were sold; (iii) whether the Class Member continues to hold some or all of the TVI securities purchased during the Class Period; and (iv) the total number of claims for compensation filed with the Administrator.

A copy of the Settlement Agreement including the Distribution Protocol, may be found at www.classaction.ca.

EFFECT OF SETTLEMENT APPROVAL ON OTHER ACTIONS COMMENCED BY CLASS MEMBERS

If the courts approve the proposed settlement, all Class Members will be bound by the terms of the Settlement Agreement, unless they "opt out". This means that they will not be able to bring or maintain any other claim or legal proceeding against the Defendants or any other person released by the Settlement Agreement in relation to the matters alleged in the class actions.

If a Class Member opts out, they will not be bound by the terms of the Settlement Agreement, BUT they will be barred from making a claim and receiving compensation from the Settlement Amount.

OBJECTIONS TO THE PROPOSED SETTLEMENT

The courts will consider objections to the Settlement Agreement at the Approval Motions. Class Members who wish to comment on, or object to, the Settlement Agreement must submit an objection to Class Counsel (at the addresses listed below) no later than June 12, 2009. Objecting Class Members may, but are not required to, attend at the Approval Motions.

A written objection should include the following information:

(a) the objector's name, address, telephone number, fax number (where applicable) and email address;

(b) a brief statement outlining the nature of, and reason for, the objection;

(c) documents establishing that the objector purchased securities of TVI during the Class Period; and

(d) a statement as to whether the objector intends to appear at the Approval Motion in person or by legal counsel, and, if by legal counsel, the name, address, telephone number, fax number and email address of such legal counsel.

INTERPRETATION

If there is a conflict between the provisions of this notice and the Settlement Agreement, the terms of the Settlement Agreement will prevail.

QUESTIONS ABOUT THE PROPOSED SETTLEMENT SHOULD BE DIRECTED TO CLASS COUNSEL

PUBLICATION OF THIS NOTICE HAS BEEN AUTHORIZED BY THE ONTARIO SUPERIOR COURT OF JUSTICE AND THE QUEBEC SUPERIOR COURT

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