TVI Pacific Inc.

TVI Pacific Inc.

October 14, 2008 10:49 ET

TVI Pacific Secures Additional Project Financing of US$3 Million

- Amendment to existing bridge loan facility provides for up to $5 million new funding of which $3 million is secured from LIM Asia Special Situations Master Fund Ltd - Sulphide Project anticipated to start up in mid-November, subject to successful further financing arrangements under discussion

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2008) - TVI Pacific Inc. (TSX:TVI) ("TVI" or the "Company") announced today that the Company and its Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), have signed an Amendment Agreement to the Omnibus Loan and Security Agreement originally signed with LIM Asia Arbitrage Fund Inc. and LIM Asia Special Situations Master Fund Ltd. (the "Lenders") on March 11, 2008. The amended loan agreement provides for up to an additional US$5 million in bridge financing ("Tranche B") of which US$3 million is immediately available from the Lenders and the additional US$2 million may be secured from a lender acceptable to the Lenders. The Company intends to drawdown the above proceeds in the coming weeks. Background information regarding the original bridge financing agreement is set out in the news release disseminated by the Company on March 13, 2008, and available at

Certain statements in this News Release constitute forward-looking statements, including statements respecting the timing of perfection of the security interest contemplated by the Loan Agreement and the anticipated timing of commencement of mining and processing activities at the Canatuan Sulphide Project. Readers should refer to the cautionary statement that appears at the end of this News Release.

The principle purpose of the Tranche B facility will be to provide TVIRD with working capital funding to further advance the construction of its Sulphide Project at the Canatuan mine site, located on the Zamboanga Peninsula in the Southern Philippines. The amended loan agreement provides that approximately US$1 million of the funds will be used to fully repay the Tranche C facility of 54 million Philippine pesos including Principal and Interest.

TVIRD is continuing discussions with several financial institutions with regard to both the additional US$2 million provided for under the Amendment Agreement, and to longer term financing for the Sulphide Project and other investments. TVIRD reports that, subject to successful conclusion of these discussions, the Sulphide Project is anticipated to start producing copper concentrates in mid-November, 2008.

There can be no assurance that these financing discussions will be successful or that additional financing will be available to the Company or TVIRD on terms acceptable to them.

"We are pleased to further strengthen the relationship that TVI has developed with its key Lenders", said Cliff James, President and CEO of TVI. "Given the extreme turmoil in the global credit markets, we believe the additional investment by our financial partners is a testament to the robust nature of the Sulphide Project."

The Amendment Agreement stipulates that the original maturity date for the US$15 million facility ("Tranche A"), previously drawn down by the Company, will be extended for an additional 30 days or up to November 16, 2008. In addition, the following interest and fees will be capitalized to form part of the loan principal: (i) all accrued and unpaid interest on the Tranche A facility as of the original maturity date (US$749,000); (ii) extension fee equivalent to one percent (1%) of the amount of the Tranche A facility for the extension of the maturity date of the Tranche A facility by thirty (30) days (US$157,490).

As contemplated by the Amendment Agreement, the Company has guaranteed the obligations of TVIRD under the Amendment Agreement and TVI Limited, a wholly-owned subsidiary of the Company, has granted a security interest to the Lenders that covers the outstanding shares of TVI International Marketing Limited, through which the Company holds its interest in TVIRD. In addition, TVIRD has granted to the Lenders a security interest covering substantially all of its assets.

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 ability of the Company and TVIRD to perfect the security interest contemplated by the Loan Agreement within ordinary timeframes; the occurrence of events that could have a material adverse effect on the business, operations, property or financial condition of the Company and its affiliates; 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 anticipated timing of completion of perfection of the security interests contemplated by the Loan Agreement is based upon information received from LIM and legal counsel to TVIRD and the Company. 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 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.

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