TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

October 16, 2008 08:38 ET

TVI Pacific Provides Update on Construction Activities for Canatuan Sulphide Project

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2008) - TVI Pacific Inc (TSX:TVI) ("TVI" or the "Company") today provided an update for the Canatuan Mine, which is located in Southern Philippines and operated by the Company's affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD").

Certain statements in this News Release constitute forward-looking statements, including statements respecting the anticipated timing of commencement of mining and processing activities at the Canatuan Sulphide Project and the anticipated timing of completion or commissioning of various components of the Sulphide Project. Readers should refer to the cautionary statement that appears at the end of this News Release.

Construction Activities Continue

The Company reports that activities continue in relation to the construction of the copper-zinc flotation plant, which is designed to process ore from the lower, sulphide portion of the volcanogenic massive sulphide deposit located at Canatuan. The sulphide portion of the ore body underlies the oxidized, gossan zone, which has now successfully been mined at the Canatuan site. This news release should be read in conjunction with the Company's prior update on the initial Sulphide Project commissioning activities, disseminated on September 9, 2008, which is available at www.tvipacific.com.

TVIRD is currently in discussion with several financial institutions for additional financing to complete the construction of the Sulphide Project as noted within the Company's news release dated October 14, 2008. There can be no assurance that financing will be available to the Company or TVIRD on terms acceptable to them. Subject to additional financing, the Sulphide Project is anticipated to start producing copper concentrates in mid-November 2008.

Recent construction activity highlights for the Sulphide Project include the following (accompanying photos are available at: www.tvipacific.com):



- Overall Project Activity and Schedule Update -
- The crushing plant, ore reclaim facility and assay laboratory are
completed and ready for operation. The grinding plant, concentrate
thickener and storage tank are nearly 80% completed and are currently
on schedule for completion within the next three weeks. The flotation
circuit, filter press and water supply facilities are more than 50%
complete and are currently on schedule for start-up within 5 weeks.
- Construction of the overall plant is approximately 80% completed.

- Grinding Circuit -
- Currently on schedule for commissioning first week of November.
- Mounted the ball mill shell, gear ring, and pinions to the foundation.
- Completed grouting of the primary ball mill pedestal.
- Construction of primary Mill Motor Control Centre building 75%
completed.
- Continued with the installation of electrical control panel boards, now
85% completed.
- Completed fabrication and installation of steel structures for catwalk
and working platform and the flooring around the ball mill area.
- Installation of the ring cover and concrete pouring for the cyclone
pump box concrete pedestal is 100% complete.
- Installation of the cyclone and launder, as well as the fabrication and
installation of the cyclone catwalks and working platforms, is 100%
complete.

- Flotation Area -
- Completed the fabrication and installation of steel pedestals and the
mounting of all 9 rougher flotation cell tanks.
- Completed fabrication of shafting for two copper conditioning tanks.
- Fabrication and installation of the superstructure for the lime slaking
storage tank and the superstructure for the copper conditioning tanks
is 70% completed.
- Commenced fabrication of the roof trusses and beams for the flotation
building construction.

- Concentrate Thickener and Storage Tank -
- Currently on schedule for commissioning first week of November.
- Commenced installation of the concentrate thickener rake mechanism.
- Completed the installation of the agitator mechanisms for the
concentrate holding tank.

- Filter Press and Concentrate House -
- Completed installation of the roof truss and roof beams. The roofing
will be installed after the installation of the filter press.
- Installation of steel flooring for the filter press mezzanine is 75%
complete.
- Concrete pouring for ground slab below filter press area is 50%
complete.
- Installation of wall studding and steel supports is 75% complete.

- Water Supply -
- Completed installation of the piping from the tailings thickener to the
water supply head tank.
- Final piping and connections are expected to be completed after the
installation of the flotation cells and the feed chute of the primary
mill.

- Assay Laboratory Extension -
- Ready for operations.

- Dam Construction -
- Sulphide dam construction work is currently suspended as part of a cash
management program. The sulphide dam is expected to be available for
tailings deposition prior to the start-up of the plant.

- Environmental Rehabilitation -
- Revegetation / reforestation of the following areas:
- Planted 4,000 slips of vetiver grasses and 50 bamboo cuttings at the
newly benched / rehabilitated Ambaan road.
- Planted 3,000 slips of vetiver grasses and 600 mangium tree seedlings
at the rehabilitated Ambaan Ridge.
- Planted 360 rubber seedlings at Agolo village.
- Planting of seedlings within the Malusok area.
- Planted 230 rubber seedlings at Romy Sapian area.
- Initiated rehabilitation work at the crusher area consisting of
benching and the planting of trees and grasses.
- Continued rehabilitation and maintenance of the back road and Phase 2
areas.
- Construction of the final gossan dam spillway is approximately 70%
complete.
- Commenced erosion control activities along the gossan dam and at the
previous Phase 1 mine area.
- Continued preparation of the sulphide tailings impoundment water and
materials balance for the updated Environmental Risk Assessment.

- Social Development and Management Program -
- The Mines and Geo-Sciences Bureau ("MGB") has approved the 2nd 5-year
cycle of Social Development Management Program ("SDMP"). This will be
implemented in 2009. The implementation of the 1st cycle SDMP is
ongoing and will be completed in the 1st quarter of 2009. The focus of
the remaining 1st cycle SDMP projects is on the implementation of Food
Always in the Home project ("FAITH"), a food self-sufficiency program
that applies modern farming methods, and on education support through
provision of teachers.
- The ground levelling of an area for a school to be donated by the
government has been 80% completed by TVIRD. TVIRD is contributing the
necessary earth moving services for the project.
- Continuing capacity building for the Council of Elders ("COE") and
Subanon Siocon Association ("SSAI") in preparation for their effective
management of the sulphide royalty and responsive governance of the
Certificate of Ancestral Domain Title ("CADT") through the formulation
of their Ancestral Domain Sustainable Development and Protection Plan
("ADSDPP").


About TVI Pacific Inc. (TSX:TVI)

TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for and producing precious and base metals within district scale systems in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Inc.

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as the volatility of prices for precious metals and base metals, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and availability of personnel. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.
Forward-looking information respecting the timing of commencement of mining and processing activities at the Canatuan Sulphide Project and the anticipated timing of completion or commissioning of various components of the Sulphide Project, is based upon progress made to date on the construction of the Infrastructure required to support mining and processing activities from the Sulphide zone at Canatuan, advice received from third-party contractors with respect to the timing of various components of the construction project, prior experiences of management with construction activities at Canatuan, the current development plan for Canatuan and the Company's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2007, which was filed on SEDAR on March 27, 2008 and is available under the Company's profile at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.

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

Contact Information