TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

August 10, 2005 09:57 ET

TVI Pacific's Chinese Subsidiary Files Exploration License Applications to Secure Potential Along-Strike Extensions to Drill-Target in the Golden Triangle

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2005) -

- Seven Exploration License (EL) applications covering a total of 90.76 square kilometers accepted for processing by the head office of the Ministry of Land and Resources.

- EL applications are along strike from a producing mine where a stratabound, replacement, Carlin-style gold mineralization target horizon has been identified.

- Fifty-three composite channel samples from the target horizon were collected, averaging 2.25 g/t Au and include 8m @ 7.4 g/t Au from contiguous channel samples.

- The producing mine hosts a drill target, and negotiations are underway with the operator for TVI to gain control.

- TVI is currently in discussion with several major gold mining companies on a potential strategic alliance in the Golden Triangle.

TVI Pacific Inc. (TSX:TVI) is pleased to announce that seven exploration license applications filed by its wholly-owned subsidiary, Hunan Pacific Geological Exploration Inc. (HPGEI) on June 29, 2005, have been accepted by the head office of the Ministry of Land and Resources (MLR) in Beijing for processing. The MLR will now send the applications to the provincial and county level Land and Resources bureaus, for confirmation of land availability, and to the military to confirm that there are no national security issues regarding the land. The timing of these confirmations is unknown, but once completed, the applications will be sent back to Beijing MLR for processing. TVI has been advised that, under applicable law, the MLR is required to make a determination within 40 working days of receipt of those applications from the provincial and county bureaus. Until the applications are processed, there can be no assurance that the ELs will be granted.

The applications relate to land located within the Golden Triangle region of SW China where HPGEI has focused its gold exploration efforts since the fourth quarter of 2004, while negotiations (which were recently successfully concluded) were being conducted in respect of Shuikoushan. The Golden Triangle is a metallogenic province hosting many Carlin-style gold deposits, including Sino Gold's 3.5 million ounce Jinfeng (Lannigou) deposit, where construction is now underway for a 200,000 ounces/year mine and processing facility.

The seven EL applications submitted by HPGEI seek to gain tenure over a total of 90.76 square kilometers and cover areas where HPGEI geologists have identified both Carlin and epithermal vein-style gold mineralization. The gold mineralisation within the area under application is mainly of Carlin, replacement style. It is hosted in a favourable stratigraphic horizon that represents the main target in the areas applied for. The most important gold mineralization lies within a 30-meter thick stratabound lens of altered and mineralized calcareous sandstone and breccia, in contact with an unaltered, barren, limestone unit. Strike and dip extensions to the mineralization have been identified, and have determined the siting of the EL applications. The local presence of epithermal, vein-style gold and the particularly widespread distribution of silicified calcareous units or "jasperoids", are geologically anomalous for this metallogenic province, and represent second type of exploration target, within the area under application.

The EL applications are all in areas along strike from a small producing underground mine where encouraging results have been received from HPGEI's systematic channel sampling at uniform one-metre intervals. Results from all 61 channel samples range from 0.01 g/t to 13.6 g/t with an average of 1.95 g/t Results from 53 composite channel samples, taken from the target horizon, averaged 2.25 g/t and include the following:

8m @ 7.4 g/t Au across a silica-clay-pyrite altered calcareous sandstone inside the main adit to the small underground operation.

9m @ 2.85 g/t Au across the same silica-clay-pyrite altered calcareous sandstone unit located approximately 5m stratigraphically higher than the first channel, above the main adit.

8m @ 3.47 g/t Au across an inferred, altered and mineralized subvertical structure 5m wide.

The mine is operated under a mining licence allowing up to 50tpd to be mined, and lies within the area under application. Several months ago HPGEI initiated negotiations with the mine owners to purchase a majority stake in the mine, and steady progress is being made. Should negotiations be successful, the two parties will likely ultimately establish a jointly owned company. As HPGEI is a Chinese company, TVI believes that the long process of establishing a sino-foreign joint venture company will be avoided, and the process should be completed relatively promptly.

TVI is currently in discussion with several major gold mining companies on a potential strategic alliance in the Golden Triangle. This property is one of the targets being included in any possible future agreement.

Glenn Sheldon, President of HPGEI and AUSIMM member, 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 and has reviewed this News Release and verified the data set out herein. Mr. Sheldon is a geologist and has more than 15 years of relevant experience in the metalliferous mining and exploration industry.

All samples collected were a minimum weight of 2 kg. All samples were sent complete to the Northwest Nonferrous Geological Research Institute Laboratory in Xian City, Shaanxi, China. This laboratory has international ISO9001-2000 and domestic GB/T19002-2000 accreditation and is the same laboratory used by Sino Gold Limited for the Jinfeng (Lannigou) resource drilling campaign. All sample preparation was conducted at this laboratory. A 50 gm pulp was prepared for each sample, and fire assay used for the decomposition pre-treatment with the final determination conducted by AAS/ICP-MS. Standards, duplicates and blanks were used for all batches and all returned values within reasonable limits.

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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