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TVI Pacific Inc. Provides an Update on its Mindoro Joint Venture Projects

February 11, 2013

TSX: TVI  OTCQX: TVIPF

CALGARY, Feb. 11, 2013 /CNW/ – TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF)
(“TVI” or the “Company”) and its Philippine operating affiliate, TVI
Resource Development (Phils.), Inc. (“TVIRD”) are pleased to provide an
update on the joint venture projects with Mindoro Resources Ltd.
(“Mindoro”). TVI and Mindoro have signed four joint venture agreements,
previously announced on October 1, 2012, relating to the Agata and Pan
de Azucar mining projects located in the Philippines on the Islands of
Mindanao and Panay, respectively. The joint ventures present TVI and
Mindoro with multiple growth opportunities for near-term and
medium-term cash flow generating potential. Under the agreements TVIRD
has the ability to earn up to a 60% interest and will act as operator
of the projects.  A management committee composed of senior management members of both
TVIRD and Mindoro will oversee each of the projects.

        --  Growth opportunities include:
      o a near-term high iron (Fe) laterite direct shipping ore (DSO)
        operation
      o a near-term limestone DSO operation
      o a medium-term pyrite material DSO operation
      o a medium-term lime production facility
      o a medium-term nickel (Ni) processing plant
        --  Development planning/permits are well-advanced for the high Fe
            and limestone DSO operations, both with potential to generate
            near-term cash flow.

        --  Project Execution/Technology Development team fast-tracking Ni
            processing plant using low-capex leaching technology.

        --  Ni processing plant capex is expected to be less than US$100
            million; estimated opex approximately US$4 per lb Ni, assuming
            use of imported sulphuric acid.

        --  Pan de Azucar pyrite deposit being evaluated for both DSO of
            pyrite material and production of sulphuric acid for the Agata
            Ni processing plant to further reduce opex.

Mr. Clifford M. James, Chairman and CEO of TVI states, “These projects
comprise a pipeline of potentially long-life assets, capable of
substantial, growing and continuous cash flow generation, which are
expected to propel the company into a strong mid-sized, diversified
miner. These are exciting opportunities and represent a major step
forward for TVI.”

TVIRD, as the operator of the projects, brings to the table a proven
management team capable of project execution (the Project
Execution/Technology Development team), on time and on budget.  The
Project Execution/Technology Development team for the Mindoro joint
venture projects is composed of highly skilled technical experts who
are familiar with the assets and the type of processing plant
technology expected to be used.

Prior extensive pre-feasibility and engineering works have been
conducted on the Mindoro properties. These reports can be accessed on
Mindoro’s website at www.mindoro.com or on SEDAR at www.sedar.com. These reports include:

        --  Pan De Azucar Project - Second Stage Drilling Program by Edsel
            Abrasaldo & Anthony Climie (Jan 20, 2003, not 43-101 standard)

        --  Independent Report on the Nickel Laterite Resource - Agata
            North, Philippines by Mark Gifford (Nov 10, 2010, 43-101
            report)

        --  Technical Report on the Agata Nickel Project Scoping Study by
            Ausenco Vector (Nov 19, 2010, 43-101 report)

        --  Metallurgical Test Program for Extraction of Nickel and Cobalt
            for Agata Laterite Deposit in the Philippines by SGS Canada
            (Nov 3, 2011, not 43-101 standard)

        --  Independent Report on the Laterite Nickel Resource - Agata
            South, Philippines by Mark Gifford (Nov 4, 2011, 43-101 report)

        --  Independent Report on the Nickel Laterite Resource - Bolobolo &
            Karihatag, Philippines by Mark Gifford (Nov 4, 2011, 43-101
            report)

        --  Preliminary Economic Assessment Agata Nickel Project, Mindanao,
            Philippines by Golder Associates (May 2011, 43-101 report)

        --  Technical Report for the Agata Nickel Laterite Project,
            Mindanao, Philippines by Ausenco (Dec 20, 2011, 43-101 report)

The above reports were compiled by Mindoro and most completed to 43-101
standards. The above reports were not compiled under TVI’s direction;
however, the work and its results are considered relevant to the
current project planning process.

AGATA MINING PROJECT

The Agata mining project, located on the Island of Mindanao, includes
the following opportunities:

        --  a near-term high Fe laterite DSO operation
        --  a near-term limestone DSO operation
        --  a medium-term lime production facility
        --  a medium-term nickel processing plant project

Historical estimates of mineral resources and mineral reserves at Agata
are set out in the technical report entitled “Technical Report for the
Agata Nickel Laterite Project, Mindanao, Philippines” dated 20 December
2011 prepared by Ausenco for Mindoro (the “Agata Report”). Key
assumptions, parameters and methods used to prepare the historical
estimates are set out in the Agata Report, which uses the categories
required by NI 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101″).  The historical estimates in the Agata Report and
referred to in this news release are believed by the Company to be
relevant and reliable for the preparation and execution of development
plans but the qualified person named at the end of this news release
has not verified or done sufficient work to classify the historical
estimates as current mineral resources or mineral reserves and is not
treating the historical estimates as current mineral resources or
mineral reserves. To upgrade or verify the historical estimates as
current mineral resources or mineral reserves would require the
completion of a new technical report.

The historical drilling by Mindoro referenced in the Agata Report was
682 drill holes for 12,252 metres in the main Agata North resource and
199 holes for 2,605 metres in Agata South resource.

High Fe and Limestone DSO Operations/Lime Production Facility

Both the high Fe DSO and the limestone DSO operations are near-term
opportunities that have the potential to generate strong cash flows
beginning in late 2013 (contingent on, among other things, receipt of
permits in a timely manner). The high Fe laterite and limestone
deposits occur up to one (1) kilometre from the coast, which is
expected to positively impact transportation costs due to the close
proximity of the mine pit to the port.

The upper portions of the laterite profile comprise the ferruginous zone
and limonite zone, both rich in iron. It is estimated that there are
approximately seven (7) million wet metric tonnes (wmt) of high Fe
material with Fe grades ranging between 45% and 52%. These historical
estimates are set out in the Agata Report referred to above. The
deposit is expected to be developed as a surface mining operation with
the high Fe material most probably sold to the Chinese iron ore market.

Beneath the ferruginous and limonite zone is the higher nickel grade
saprolite zone, which will be the dominant feed for a new nickel
processing facility currently under consideration by the Project
Execution/Technology Development team. The high Fe DSO operation would
be expected to generate early cash flow until the nickel processing
plant is built and becomes operational, but shipments are expected to
continue after this until the high Fe material is exhausted.  The high
Fe DSO operation already has an existing Environmental Compliance
Certificate (ECC); however, other permits such as a port permit and a
Declaration of Mining Feasibility are also required.

The limestone occurring at the coast is a massive recrystallized
limestone of very high purity levels with CaCO3 of greater than 95%
according to the Agata Report.  Five (5) holes were drilled into the
limestone horizon by Mindoro but the number of holes drilled is not
considered sufficient to classify a mineral resource. The limestone is
estimated in the Agata Report to be up to 50 metres thick. The
potential quantity and grade is conceptual in nature, because there has
been insufficient exploration to define a mineral resource and it is
uncertain if further exploration will result in the target being
delineated as a mineral resource. The initial plan is to develop a
resource, and mine and ship limestone DSO utilizing the infrastructure
developed initially for the high Fe DSO operation. Currently no permits
are in place for mining the limestone.

Since the quality of limestone quarried at Agata is expected to be high,
the Project Execution/Technology Development team also plans to
construct a lime production facility at the Agata project site. The
lime produced would be used in the nickel processing plant, offsetting
the costs of imported lime while also creating potential for some to be
sold. The lime processing facility is a medium-term project currently
expected to come online at the beginning of 2015 pending the receipt of
all required permits, among other things.

The development plans and initial pre-development activities for the two
DSO operations are underway and include:

a)     For the high Fe DSO operation:

        --  the preparation of compliance reports to regulators
        --  land acquisition for the port facilities and roads
        --  planning and design for port construction
        --  road/infrastructure design and construction plans
        --  initial pre-development activities, including initial road
            construction and camp development
        --  confirming markets for products
        --  mine development planning
        --  community relations

b)     For the Limestone DSO operation:

        --  further drilling on the limestone deposits to delineate
            resource to NI 43-101 standards
        --  preliminary concepts and mining plans for the limestone
        --  confirming markets for limestone and lime products
        --  metallurgical test works

An update to the NI 43-101 report prepared originally for Mindoro,
together with a scoping study on both the Hi Fe and Limestone
operations, are also initially planned and are to be followed by
feasibility studies.

Agata Nickel (Ni) Processing Plant

The Agata Ni processing plant is a medium-term growth opportunity, which
the Company expects could come into production in mid 2015, dependent
on such things as a successful metallurgical testing program and
pending receipt of the required permits. The plant would initially be
designed to have a 20-year life, and would be built in modules with the
ability to add capacity over time by adding further modules to increase
throughput and Ni production. The Project Execution/Technology
Development team is proposing the use of innovative, low cost leaching
and downstream Ni recovery and purification technology rather than the
traditional high cost HPAL processes used in the laterite nickel
industry. TVIRD’s team of technical staff engaged to deal with the
Mindoro joint venture projects are the developers of this leaching and
downstream Ni recovery and purification technology and their expertise
will be used to fast-track the processing plant.

The laterite feed to the processing plant comprising limonite material
and saprolite material would be mixed with sulphuric acid and undergo
numerous steps to ultimately produce a nickel hydroxide product.  This
intermediate nickel product could either be sold as is or further
processed to produce metallic nickel. The estimated capital cost for
the nickel processing plant plus associated infrastructure (port,
water, power, etc.) is expected to be less than US$100 million. The
cash operating costs are estimated to be approximately US$4 per lb Ni
(approximately US$9,000/t Ni), assuming the use of imported sulphuric
acid. If the Pan de Azucar pyrite project can be successfully
commercialized (refer below), then the opportunity exists to
self-produce sulphuric acid at the nickel plant site, thereby further
reducing operating costs, and with the added benefits of by-product
electricity and steam.

Site infrastructure is excellent with local sources of labour, fresh
water and power (supplemented by back-up generators). The processing
plant will be located within two kilometres of the port, thereby
simplifying acid transport and other logistics, as well as keeping
operating costs down. Deep water for ships up to 50,000 tonne capacity
occurs within 250 metres of the coastline.

A number of activities relating to the Agata Ni Processing Plant are
underway and include:

        --  internal project feasibility scoping including previous
            relevant Mindoro scoping work
        --  external laboratory testing at BGRIMM of a representative bulk
            ore sample taken from the Agata Ni deposit, including:
      o crushing and grinding tests
      o pre-leach thickener settling tests
      o primary and secondary leaching tests
      o leach residue preliminary settling and filtration tests
        --  establishment of laboratory and pilot testing facility (in the
            Philippines)
      o bench-scale laboratory equipment has been installed and testwork
        will commence at this facility before mid-February 2013
      o pilot plant equipment has been identified and specified
        --  the process flowsheet has been identified and confirmed by
            laboratory tests
        --  process flow diagrams are near completion
        --  mass and energy balance have been developed in METSIM, using
            laboratory test data to calibrate the model
        --  environmental and leached ore storage facilities designs are
            well advanced
        --  preliminary infrastructure design is underway, including:
      o port/jetty design, including reagent storage facilities
      o water source identification
      o road design
      o process plant location and preliminary layout

An update to the NI 43-101 report prepared originally for Mindoro,
together with a scoping study, are initially planned, to be followed by
delivery of a full feasibility study. The feasibility study is underway
and expected to be completed by the end of 2013. Pending a positive
feasibility study and a decision to proceed, plant construction is
expected to commence in 2014 with the commissioning/commercial
production of nickel hydroxide product in Q2 of 2015, dependent on
obtaining permits in a timely manner, among other things.

Pan de Azucar Pyrite Project

As described in Mindoro’s news release of February 8, 2012, the Pan de
Azucar pyrite project located on the Island of Panay is a drill-defined
exploration target, which comprises a pyrite-rich mineralized horizon
of between 10 and 40 metres in thickness and dipping at a shallow 10 to
15 degrees. The mineralized horizon is exposed at the surface. Mindoro
reported it has drilled 30 holes into the mineralized horizon, showing
a potential quantity of 8 million to 12.7 million dry metric tonnes
with a grade range of 35% to 40% sulphur (70% to 90% pyrite). The
potential quantity and grade has been determined by averaging the
intercepts from the drill assays.  The potential quantity and grade is
conceptual in nature, because there has been insufficient exploration
to define a mineral resource (including number of holes drilled) and it
is uncertain if further exploration will result in the target being
delineated as a mineral resource.

The Company expects that commercializing the project may involve both
the DSO export of pyrite material to China for the production of
sulphuric acid and/or the self-production of sulphuric acid at the
Agata Ni processing plant site. Currently there are no permits in place
for the mining of the pyrite material.

Activities planned or underway for the Pan de Azucar Pyrite Project
include:

        --  laboratory testing of the pyrite samples as a suitable feed for
            a sulphuric acid plant
        --  additional diamond drilling to delineate resource to NI 43-101
            standards
        --  preliminary concepts and mining plans
        --  confirming markets for products
        --  metallurgical test works
        --  community relations

Qualified Person

Yulo Perez, Chief Operations Officer of TVI Resource Development
(Phils.), Inc. (TVIRD), Fellow AusIMM, is the qualified person under NI
43-101 who has approved the scientific and technical information in
this news release.

This news release contains certain forward-looking information (referred
to herein as “forward-looking statements”). Forward-looking statements
are often, but not always, identified by the use of words such as
“anticipate”, “plan”, “intend”, “estimate”, “scheduled”, “expect”,
“may”, “will”, “should”, or similar words suggesting future activities
or outcomes. The forward-looking statements set out in this news
release include information relating to interests that may be earned by
TVIRD in the Agata and Pan de Azucar joint ventures; opportunities for
exploration, development and commercialization of the Agata Mining
Project (including the High Fe and Limestone DSO/Lime Production
Facility and the Agata Nickel Processing Plant), and the Pan de Azucar
Pyrite Project.

Forward-looking statements are subject to certain risks and
uncertainties that could cause actual events or outcomes to differ
materially from those anticipated or implied by such forward-looking
statements.  Those risks and uncertainties include, but are not limited
to:  (A) results of further work in pursuing the conceptual planning
described in this news release not supporting current expectations as
to the opportunities outlined; (B) TVIRD not funding the necessary
expenditures at Agata or Pan de Azucar to advance the projects or earn
an interest under the joint venture agreements due to, among other
things (i) changes in TVIRD’s strategic priorities, due diligence
findings, changes in laws or regulations affecting mining operations in
the Philippines (including the profitability of such operations), and
other factors, (ii) changes in TVIRD budgets and (iii) limited
availability of funds; (C) a determination on the part of TVIRD not to
pursue projects contemplated by one or more of the joint venture
agreements noted above for technical, economic, legal or other reasons
(including, without limitation, a failure to obtain required permits or
other governmental or regulatory approvals);  and (D) certain other
risks identified elsewhere in TVI’s public filings, including, without
limitation, those risk factors set forth at pp. 46-52 of TVI’s Annual
Information Form dated  March 20, 2012.  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.

The forward-looking statements contained in this news release are made
as of the date hereof and TVI does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, except as required by applicable Canadian securities law.
The forward-looking statements contained herein are expressly qualified
by this cautionary statement.

About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)

TVI Pacific Inc. is a publicly-traded Canadian company that is focused
on the production, development, exploration and acquisition of resource
projects in the Philippines and Southeast Asia. TVI produces copper and
zinc concentrates from its Canatuan mine.  TVI is a partner/operate in
several joint venture projects in the Philippines and Papua New Guinea
and also has an interest in an offshore Philippine oil property.

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

SOURCE TVI Pacific Inc.

Image with caption: “Map 1: Philippines: Agata (Island of Mindanao) and Pan de Azucar Mining (Island of Panay) Project Locations (CNW Group/TVI Pacific Inc.)”. Image available at: http://photos.newswire.ca/images/download/20130211_C4469_PHOTO_EN_23504.jpg

Image with caption: “Map 2: Agata Mining Project – Site Layout (CNW Group/TVI Pacific Inc.)”. Image available at: http://photos.newswire.ca/images/download/20130211_C4469_PHOTO_EN_23505.jpg


Source: PR Newswire