• 38% increase in copper production
• 5% decrease in production cash costs
• 27% increase in average copper price received

As previously disclosed, construction has begun on an additional flotation circuit to process zinc ore. The Zinc Circuit, expected to be fully operational by late April 2010, will monetize the zinc component of the deposit for an added revenue stream. As expected, mining has progressed into the copper-zinc portion of the ore body. Off-take arrangements for the zinc concentrate are currently being negotiated.

As reported on October 29, 2009, TVI completed its eighth consecutive shipment of copper concentrates. The concentrates were shipped from the TVIRD warehouse facility, at Santa Maria Port in Siocon, Zamboanga del Norte, in accordance with the offtake arrangement previously entered into between TVIRD and MRI Trading AG (“MRI”).

PROJECTS UPDATE
Near-term Development

Canatuan Near-Mine Tenements

Exploration to date has identified several mineral occurrences on the surrounding tenements, including the Tabingan, Matigdao, and Palalian prospects, which TVI believes are compelling exploration prospects. TVIRD plans to advance exploration soon.

Through exploration, TVIRD hopes to find new commercial mineral deposits in the vicinity to further increase the mineral resource and extend the life of the Canatuan Mine by providing new feedstock for the existing facilities. TVIRD is focusing exploration efforts on previously-discovered mineralized zones within a fifteen kilometre radius of the main deposit, surrounding and along strike of the mine. These present immediate growth opportunities which will help extend the current mine life.

Balabag

The Balabag gold project is a high priority for TVI. Based on preliminary exploration results, TVI believes that the Balabag property has the potential to become a second production centre for the Company. TVI has begun to evaluate development scenarios designed to bring the Balabag project into production, with advance development work scheduled to commence later this year.

One option under consideration involves the establishment of a “bootstrap” mining operation at Balabag. This alternative involves the construction of a small pilot plant, with limited capital expenditures and relatively low initial throughput that can be ramped up over time into a full scale mining operation using the cash flows generated from operations. The option to construct a Balabag plant in stages would allow the Company to advance activities with minimum initial capital and to begin production at an earlier date.

High-Impact Exploration

Tamarok and Tapisa

In North Zamboanga, TVIRD’s applications cover almost all the targets identified by a prior exploration program, conducted by a major international company, numbering at least 20 epithermal gold, massive sulphide and porphyry copper-gold prospects. The Tamarok copper-gold project and the Tapisa exploration project are located 60 kilometres north-northeast of TVIRD’s Balabag project. Reconnaissance work carried out to date supports historical findings and has discovered new prospects. Notably, a great deal of the mineralization in these areas occurs right on the surface and has been easily accessible to the Company’s exploration teams.

The Company has completed all requirements necessary to have the Mineral Production Sharing Agreement (“MPSA”) signed by the Secretary of the Department of Energy and Natural Resources of the Republic of the Philippines. Following the signing of the MPSA, TVIRD plans to conduct geophysical surveys, carry out systematic detailed geological investigations, further delineate drill targets on surface, and schedule a diamond drilling program.

TVI is also considering strategic alliances or joint ventures with other mining companies to benefit from economies of scale. There can be no assurance that any of the current discussions will result in further investments in the Company or that the consideration of strategic alliances and joint ventures will lead to the establishment of relationships with third-party mining organizations.

About TVI Pacific Inc. (TSX: TVI)

TVI Pacific Inc. is a publically traded, profitable, low cost copper producer focused on the production, development, exploration and acquisition of precious and base metal mining deposits 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.

Further Information: Investor Relations – 403-265-4356 or tvi-info@tvipacific.com

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