TVI Pacific Inc.

COMPANY DATA | INTRODUCTION | PROJECTS IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE

COMPANY DATA

INTRODUCTION

TVI Pacific Inc. is a Canadian-based resource company with a senior listing on the Toronto Stock Exchange that is building an exciting story with a growing portfolio of precious metal (principally gold) projects in China and the Philippines.

The Company has assembled a portfolio of properties covering a land area of approximately 114 square kilometres in China and 500,000 hectares in the Philippines, and has developed a highly qualified and experienced management and technical team in both countries. In addition, TVI has established its wholly owned commercial contract drilling operation EDCO, with operations in both China and the Philippines.

TVI Pacific is making significant progress in becoming a fully diversified mining company, while taking full advantage of the huge potential in China for the discovery of world-class gold deposits. The Company is very well positioned to capitalize on its exceptional management and technical team, and its ability to conduct exploration to international standards cost - effectively.

PROJECTS IN HAND

(1) China

TVI has been active in China for the last five years, initially providing contract drilling services through EDCO. An in-country technical team has been in place since 2000 with the mandate to evaluate, acquire, explore and develop large-scale mineral, principally gold deposits. In 2002 the Company acquired the Shuikoushan project, a very large-scale gold system located in an established mining area which has the potential for the discovery of several world-class gold deposits. A number of other attractive projects have been identified and are undergoing evaluation.

TVI has established itself in China using several vehicles:

(A) Through a joint venture arrangement with a local company that allows the Corporation to acquire projects in the Joint Venture's name and conduct exploration drilling activities for itself and also on a contract basis for both local and foreign clients.

In February of 2002, TVI entered into a Letter of Intent ("LOI") with the Nei Mongol Huayu Geological and Mineral Prospecting Company Ltd. ("Huayu") to form a joint venture with the aim of identifying, exploring and developing mineral deposits in China. Under this agreement, Huayu is responsible for locating and presenting to TVI projects throughout China with potential for major discoveries of precious and base metals that TVI evaluates for their development and economic potential.

In March of 2002, the Corporation entered into a second LOI with Huayu to form a joint venture company (initially 70% TVI interest) that would permit TVI to engage in minerals exploration and also to contract its drilling services to third parties throughout China. A final agreement establishing the joint venture company with Huayu will be signed in early 2003. Huayu will contribute cash, its valuable expertise, China - wide contacts and extensive experience. Under this agreement Huayu is responsible for sourcing drilling contracts with other mining and exploration companies operating in China. TVI will contribute cash, manage the joint venture's operations, direct exploration activities, and provide feasibility-quality contract drilling services. Both parties will contribute their share of exploration and operating costs on the basis of their 70-30 ownership interests.

(B) Through a TVI Wholly Foreign Owned Enterprise (TVI WFOE).

This will be TVI's main corporate vehicle in China. Registration of this vehicle is currently underway and should be in place in early 2003. TVI's ownership of the Shuikoushan project will be held under the TVI WFOE.

(C) Through an EDCO Wholly Foreign Owned Enterprise (EDCO WFOE).

EDCO's interests in China will be held in this vehicle.

Shuikoushan - 'World-Class' Gold Potential

In April of 2002, TVI announced that it had acquired interests in a number of adjoining property areas hosting significant gold mineralization in the heart of the Shuikoushan Polymetallic District in south-central China. TVI has consolidated most of the district into a single 114 square-kilometre land package, allowing the Company to commence the integrated exploration and development of an area exhibiting excellent potential for hosting several large, bulk-tonnage gold deposits amenable to low-cost mining.

An exploration program at Shuikoushan, including detailed surface mapping and sampling, ground magnetic surveys, and further compilation of historical information to upgrade and confirm existing data, has commenced. TVI is planning to begin a program of at least 6,600m of core drilling in early 2003.

(2) Philippines

TVI has been operating in the Philippines for the past 9 years, and has a diversified project portfolio ranging from early-mid stages of exploration to near-production. The Canatuan project has entered production, initially at 50 tpd, and will be upgraded rapidly to 500 tpd over a period of 2 years, producing gold and silver dore. A sulphide plant is also planned for construction, which will produce copper and zinc concentrates at 850 tpd. There remains excellent exploration potential at Canatuan, both in the immediate vicinity of the existing deposit, which is remains open at both ends, and also along a 40 km strike length within the property boundaries.

TVI also holds a valuable 2.5% Net Smelter royalty interest in the Rapu Rapu project, a polymetallic deposit located in the central Philippines, which is about to enter the final stages of development. Project financing is expected to be in place in early Q1 2003 with construction commencing in early Q2 2003, first ore mined in December 2003, and production commencing in Q2 2004. TVI expects to either monetize the royalty interest in the near term or to wait and receive NSR cash payments on a quarterly basis with the commencement of production.

(3) Exploration Drilling Corporation - EDCO

EDCO, TVI's wholly-owned diamond-drilling subsidiary, provides cash flow for TVI through the provision of contract drilling services throughout south-east Asia, in addition to exploring for TVI at substantially lower cost than would otherwise be available. Drilling activity has recently increased substantially for EDCO in both China and the Philippines. The company is currently operating on a number of new contracts, utilizing the majority of its drilling fleet.

MANAGEMENT

TVI Pacific's Board of Directors and Senior Management team are comprised of individuals with a wide range of relevant experience. They possess excellent country knowledge, strong technical knowledge and a capacity to develop TVI and handle new opportunities.

Board of Directors

Clifford M. James, M.Sc., President and Chief Executive Officer
Mr. James is a professional geologist, mining and business executive with over 30 years of technical and financial experience in the resource sector gained throughout North America, Africa and Asia. He has held senior positions with a number of successful resource companies with activities around the world.

Robert C. Armstrong, Ph.D., President, Armstrong Associates International, LLC.
Dr. Armstrong has over 35 years of experience as a professional geologist in the mining industry. He has worked in senior and executive positions for several mining companies, including Cominco Ltd. and Echo Bay Mines Ltd., with both domestic and foreign responsibilities for mineral exploration and mining operations. He is currently President of Armstrong Associates International LLC. (Denver, Colorado, U.S.A.), a private company involved in the industry.

C. Brian Cramm, C.M.A., Vices President, Chief Financial Officer & Treasurer, General Minerals Corporation.
Mr. Cramm has worked in various senior capacities in corporate development and finance within the mining industry with such companies as Echo Bay Mines Ltd. He is currently Vice President, Chief Financial Officer & Treasurer at General Minerals, a Denver-based mining and exploration company.

Jan R. Horejsi, Director
Mr. Horejsi holds a Bachelor of Science degree in geology. He is a business executive with over 30 years of experience in the oil and gas industry throughout North America. Mr. Horejsi serves as a director of a number of Canadian public companies, and was most recently Senior Vice-President of North American Operations at Ranger Oil Limited, a Canadian oil and gas exploration and production company.

Wilfrid A. Loucks, B.A.Sc., President, Trego International Inc.
Mr. Loucks is an independent businessman involved in the natural resource sector and is President, Trego International Inc., an oil and gas exploration company, and President, DMR Resources, a precious and base metals exploration company. Previously, he held the position of Vice President and General Manager of Mineral Exploration and Development for Norcen Energy Resources Limited, a major Canadian resource company.

Peter C.G. Richards, LL.B., Partner, Richards Buell Sutton
After serving in the R.C.N. Reserve from 1947 to 1954 and retiring as Lieutenant, Mr. Richards graduated from UBC Law, and articled to Reginald Tupper at Bull Housser Tupper Ray Guy & Merritt during 1951 and 1952. He has since remained with Richards Buell Sutton and its predecessor firm, specializing in corporate and commercial law, wealth preservation, estate planning and business negotiations.

Senior Management
Clifford M. James, Chairman, President & CEO
Ronald Simpson, Senior Vice President, Finance & Administration
Tom Healy, Vice President, Operations
Calvin Herron, China Representative

Exploration Drilling Corporation Inc. (EDCO)
Clifford M. James, President
Wayne McCallum, Vice President & General Manager

NEWS UPDATE

On September 25, 2003, TVI Pacific Inc. announced that it has entered into a Letter of Intent with the Hunan Bureau of Non-Ferrous Geological Exploration to explore three large gold and polymetallic areas located approximately 100 km south of TVI's Shuikoushan Gold Project in Hunan Province, south-central China. These areas total 1,045 sq.km, significantly increasing TVI's land position within the Shuikoushan-Xianghualing Mineral Belt, a major regional structure that controls the distribution of gold-silver deposits and large copper-lead-zinc-tin mines in southern Hunan.

On September 16, 2003, TVI Pacific Inc. reported the update of the Rapu Rapu project, located in the province of Albay, Philippines, is a polymetallic mining project which a group of companies including Lafayette Mining Limited (the operator), a publicly traded Australian company, is developing. TVI retains 3,300,000 unlisted share options with an exercise price of A$0.20 each, and a 2.5% net smelter return royalty (NSR) in the project.

Lafayette Mining Limited announced that it has engaged a consortium of banks led by N M Rothschild & Sons (Australia) Limited to advise and arrange its financing for the Rapu Rapu project in the Philippines.

On March 17, 2003, TVI Pacific Inc. (TVI) announced that it has entered into financing arrangements with Haywood Securities Inc. (Haywood) to raise a total of approximately of $2.0 million of new funding. The first part of this financing was executed on March 14, 2003, when a group of TVI insiders exercised 14.3 million share purchase warrants at a price of $0.05 for a total consideration of $715,000. These shares were then purchased by Haywood. The second part will take the form of a private placement in the Company. TVI has filed notice with the Toronto Stock Exchange that it will issue 31,428,573 units at $0.07 per unit, of which 14,285,715 will be issued to Haywood for cash of $1.0 million, 4,285,716 will be issued to directors and others for cash of $300,000, and 12,857,142 will be issued to retire debt of $900,000.

On February 3, 2003, TVI Pacific Inc. announced more drilling contracts in China and Philippines. A major expansion of rig fleet through recent acquisition of Asia-Pacific Mineral Drilling Corporation and the Company increased cash flow anticipated for fiscal 2003. 

For more information, please visit the TVI Company website at www.tvipacific.com. 

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