TVI Pacific Inc. (TSE:TVI)

[NYBob]

TVI signs confidentiality deal with firms it plans to acquire

Mining firm TVI Resources Development Phils., Inc.
is in talks with six local mining companies for their
possible acquisition and eventual development.

Clifford M. James, president of Canadian parent company
TVI Pacific, Inc.,
said in a statement that the local unit has signed confidentiality agreements with the mining companies for advanced stage gold, copper and polymetallic development projects and a possible large copper-gold or gold deposit.

Mr. James identified listed firms United Paragon Mining Corp. and Vulcan Industrial and Mining Corp. as among those who had signed the confidentiality agreements.

The identity of the four other firms were not disclosed.
TVI Resources Vice-President Rocky Dimaculangan said the firm could not identify the four other firms since doing so would compromise the agreement.

He said the four other mining companies are a mixture of local and foreign companies with local offices in the country.

"We normally conduct disclosures to let the people know the progress of these confidentiality agreements," he added.

Mr. James said data review and field investigations on the acquisition targets have already been initiated with formal due diligence reviews scheduled for early 2007.

He said the board of directors of TVI has authorized the search for properties to be acquired in the Philippines. The asset should possess a large polymetallic or gold deposit with reserves above 500,000 ounces of gold equivalent. The property should also be in its advanced stage to allow production within one to four years of acquisition.

Mr. James said the company is also eyeing properties which possess a prospective annual production capacity above 80,000 ounces of gold equivalent at operating costs of less than $300 per ounce of gold equivalent.

He said the company is also interested in acquiring properties with large-scale copper-gold deposits.

"Based on our platform at Canatuan, including the recently announced sulphide (copper/zinc) expansion project, we are now aggressively evaluating acquisition opportunities," he said.

Mr. James said TVI believes that there is a lot of mining potential in the Philippines that remains to be developed.

"We believe that the Philippines has significant undeveloped mining potential; and we have confidence in the government's mining revitalization commitment, as well as the political and economic turnaround taking place in the country," he said.

TVI's confidentiality agreement with United Paragon involves the development of the company's Longos mine in Paracale, Camarines Norte. Estimates by the mines and geosciences bureau of the Department of Environment and Natural Resources peg gold deposits at the Longos mine at 1.6 million tons. Its agreement with Vulcan, meanwhile, involves the latter's Panaon Island property.

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