CANATUAN MINE OPERATIONS UPDATE:

TVI RELEASES THIRD QUARTER OPERATING RESULTS FOR CANATUAN MINE

TVI Pacific Inc. (TSX: "TVI" or the "Company") today released third quarter operating statistics for the Canatuan Mine, located in the southern Philippines, operated by affiliate, TVI Resource Development (Phils) Inc. ("TVIRD"). 

During the third quarter, the Canatuan mine produced 10,287 gold equivalent ounces ("AuEqOz") of metal, compared with 15,437 AuEqOz in the second quarter of 2007 and 15,698 AuEqOz in the same period in 2006. On a year-to-date basis, the Canatuan Mine produced 39,032 AuEqOz of metal compared with 42,975 AuEqOz produced during the nine-month period ended September 30, 2006. Production during the third quarter consisted of 8,079 ounces of Gold ("Au") and 118,654 ounces of Silver ("Ag").

Despite the record amount of ore processed in the second quarter of 2007, third quarter results were negatively affected by an extended repair shutdown for one of the two ball mills and limited access to higher grade ore during the unusually heavy rainy season. The Canatuan Mine is continuing with initiatives to increase mill throughput and reduce costs at the mine for the remainder of 2007.  These initiatives will be implemented in order to partially offset the impact of expected lower ore grades during the final period of Gossan operations before the Sulphide Project (copper/zinc concentrate production) commences.

Certain information set out in this News Release constitutes forward-looking information, including information relating to (i) anticipated production levels for gold and silver in the fourth quarter of 2007, (ii) the resumption of processing of higher grade ore during the fourth quarter of 2007, (iii) declines in ore grades and production volumes as the gossan reserve at Canatuan is exhausted, (iv) available tailings capacity at Canatuan, and (v) the anticipated timing of production from the sulphide zone underlying the gossan reserve.  Readers should review the cautionary statement respecting forward-looking information that appears at the end of this News Release. 

"In response to a challenging third quarter for Canatuan Mine operations," said Clifford M. James, TVI President and CEO, "we have taken aggressive measures to further improve productivity and reduce operating costs.  Current mine operations, for the most part, continue in line with our expectations and ahead of the initiation of the Sulphide Project in 2008."

The following table summarizes the Canatuan Mine's operating statistics for the periods presented.

During the second quarter of 2007, the Canatuan Mine set a production record for mill throughput, averaging 2,086 dry metric tonnes per day. Compared with the nine-month period ended September 30, 2006, the Canatuan Mine increased mill throughput by 32% during the same period of 2007 (541,572 dry metric tonnes in 2007 versus 409,351 in 2006). A number of new initiatives, designed to optimize mill production, are under way at Canatuan, in an effort to further improve mill throughput. During the five-week ball mill shutdown early in the third quarter, average daily throughput was reduced by approximately 30%. Despite the ball mill repair shutdown, mill throughput averaged 1,953 dry metric tonnes per day in the third quarter, largely due to achieving record mill throughput volumes approaching 2,400 dry metric tonnes per day after the ball mill repairs were completed.

During the third quarter of 2007, unusually heavy precipitation adversely affected haul roads and pit bottoms, particularly in areas where higher grade ore is mined. As a result, most of the mill feed during the third quarter was taken from lower grade stockpiles, which are ordinarily blended with higher grade ores from active pits. TVI has carefully reviewed the remaining gossan ore reserves at the mine and expects to resume blending and processing of higher grade ore during the fourth quarter. As the gossan operations approach the end of reserve life, the Company expects that ore grades will gradually decline and that metal production will reduce accordingly.

Feed grade during the third quarter of 2007 was 1.58 grams per tonne ("gpt") of gold and 36.18 gpt of silver, compared with 2.68 gpt of gold and 42.85 gpt of silver during the third quarter of 2006.  Over the past year, the feed grade has decreased which is expected as the remaining gossan reserves have increasingly lower grades. In addition, the nature of the feed has changed in that the chalcocite and sulphide content of the gossan ore has increased as mining operations approach the massive sulphide zone underlying the gossan reserves. The presence of chalcocite and sulphides in the ore has caused a reduction in recoveries and has required the use of more cyanide. By increasing mill throughput volumes, and by blending gossan ore from different areas within the current pit (blending material both high and low in chalcocite and sulphides and both higher and lower grades), TVI has, to date, been able to mitigate the impact of these changes in the nature and feed grade of the ore on metal production levels.

During the second quarter of 2007, gold recovery reached a record high, averaging 91.08%, and silver recovery averaged 59.10%. In the third quarter, gold recoveries declined slightly to 88.53%, in line with historic recovery rates, while silver recoveries of 56.79% were comparable to year-to-date recoveries but lower than the prior year due to the change in ore grades. A significant portion of third quarter mill throughput was taken from lower grade stockpiles as access to higher grade run of mine material was restricted due to unusually heavy precipitation.

Production was also adversely affected by limited tailings capacity during the second quarter as the gossan dam approached capacity. TVI had initially planned to begin discharging tailings into the newly constructed sulphide dam, in compliance with local environmental standards. After careful consideration, however, the Company decided to raise the gossan dam instead, as part of its ongoing commitment to protect the environment.  The gossan dam lift was completed in the third quarter.

During the third quarter of 2007, TVI initiated a comprehensive cost reduction program for all of its operations and administrative offices. At the Canatuan Mine, TVI is targeting to reduce cash production costs by twenty-five percent or more while continuing to increase mill throughput.

For additional information on the Canatuan Mine, please refer to the National Instrument 43-101 ("NI 43-101") technical report prepared by Geostat Systems International Inc. ("Geostat"), which was filed with certain securities regulatory authorities in Canada on August 21, 2006 and is available on the SEDAR website at www.sedar.com.  The Geostat report assesses the gossan mineral reserves and resources at the Canatuan deposit.

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 and other Asian countries. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Ltd. ("TVIRD").  TVI's most advanced project, the Canatuan Mine, currently produces gold and silver dor�.

In 2006, TVIRD received a completed NI 43-101 feasibility study on the Canatuan sulphide project prepared by Norwest Corporation.  The report has been filed with certain securities regulatory authorities in Canada and is available through the SEDAR website at www.sedar.com.  The Canatuan sulphide project includes a copper-zinc bearing massive sulphide zone underlying the gossan zone currently being mined at Canatuan.  Construction of the sulphide project is underway and TVI plans to be in production in mid-2008. The Company is currently arranging financing for the sulphide project.

TVIRD also holds a 2.5% net smelter royalty on the Philippine-based Rapu Rapu project operated by Lafayette Mining Ltd. as well as other significant land positions in the Philippines. TVIRD is focusing its exploration efforts on expanding the mineral resource base near the Canatuan Mine and on the Balabag project, for which the Company recently released a resource estimate that has been filed on SEDAR. 

Through a wholly-owned Chinese subsidiary, the Company has 2,394 km2 of land under application in China in the Golden Triangle and in the Tibet Autonomous Region. 

TVI's drilling business operates a fleet of 21 drill rigs, providing contract drilling services to the Company's exploration projects and to third parties. The drilling business provides the Company with priority access to drilling equipment at low costs and the opportunity to generate cash flow from third party contracts.

Further Information:    Clifford M. James, President and CEO
                               Paul Moon, Director, Corporate Communications (403) 265-4356

Andrew Bradfield BSc, P.Eng., Vice President, Operations of TVI Pacific Inc., serves as TVI's "Qualified Person" (for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Deposits) on the Canatuan project and has reviewed this News Release.

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" 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 provided 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 obtained from third party sources 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 and changes in exploration plans or budgets.  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 anticipated production levels for gold and silver at Canatuan in the fourth quarter of 2007 is based upon production levels achieved during the first, second and third quarters of 2007, the anticipated effects of current initiatives designed to increase mill throughput, resumption of processing of higher grade ore and availability of tailings capacity. Forward-looking information respecting the resumption of processing of higher grade ore during the fourth quarter of 2007 is based upon assumptions relating to weather patterns.  Forward-looking information respecting declines in ore grades and production volumes as the gossan reserve at Canatuan is exhausted is based upon independent third-party reports as to the nature and extent of the gossan mineral reserve at Canatuan, the results of mining operations at Canatuan to date and the experiences of management with similar mining operations in other areas. Forward-looking information respecting available tailings capacity at Canatuan is based upon independent third-party reports as to the nature and extent of the gossan mineral reserve at Canatuan and independent third-party engineering advice respecting the capacity of newly constructed containment facilities at Canatuan. Forward-looking information respecting the anticipated timing of production from the sulphide zone underlying the gossan reserves at Canatuan, is based upon the status of negotiations concerning financing of the sulphide project, the status of TVIRD's program to source equipment for the expansion of the Canatuan mine, progress made to date in the construction of the sulphide plant at Canatuan, management's experiences with the construction of the gossan processing facility at Canatuan, the current business plan developed by the Company and the Company's current budget and overall strategy for the Canatuan mine, 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 are described in detail in the Company's Annual Information Form for the year ended December 31, 2006, which was filed on SEDAR on March 29, 2007 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.
 
 

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                     Website: http://www.tvipacific.com   E-mail: tvi-info@tvipacific.com