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Sulphide Project update: TVI Pacific signs definitive US$15 million bridge financing agreement

March 13, 2008
    (TSX: TVI)

    CALGARY, March 13 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that the Company and its Philippine affiliate, TVI Resource
Development (Phils.) Ltd. ("TVIRD"), have signed a definitive loan agreement
with LIM Asia Arbitrage Fund Inc. and LIM Asia Special Situations Master Fund
Limited (the "Lenders"), providing for a US$15 million bridge financing
facility ("the Facility"). The ability of TVIRD to draw amounts under the
Facility is subject to perfection of the security interest comtemplated by the
Omnibus Loan and Security Agreement between TVIRD and the Lenders (the "Loan
Agreement"), which is anticipated to be fulfilled within the next two weeks.

    Certain information set out in this News Release constitutes
forward-looking information, including information relating to the timimg of
perfection of the security interest contemplated by the Loan Agreement.
Readers should review the cautionary statement respecting forward-looking
information that appears at the end of this News Release.

    The purpose of the Facility is to provide working capital funding for
TVIRD, including funds to restart construction of its Sulphide project at
Canatuan, located in the Zamboanga Peninsula in Southern Philippines. The Loan
Agreement also provides that a second tranche of funding (up to an additional
US$5 million) may be accommodated under the structure of the Loan Agreement,
which would be sourced from one or more third party lenders to be identified
by TVI and consented to by the Lenders. The Loan Agreement also contemplates a
third tranche, which, in effect, represents the conversion of certain debts
owed by TVIRD into the Loan Agreement. This tranche is limited to 42 million
Philippines pesos (approximately US$1.035 million), which was advanced to
TVIRD by an arm's-length third-party in December 2007.
    "This is positive news for the Company, for Canatuan, and for the
Zamboanga region" said Cliff James, President and CEO of TVI. "Subject to
perfection of the security interest granted to the Lenders, the bridge loan
enables us to resume construction of the Sulphide project, and at the same
time provides us with a window for the arrangement of longer-term financing
both for this project and our exploration properties at Balabag and the North
Zamboanga tenements."
    The Loan Agreement provides that the Facility is subject to a fixed
arrangement fee in the amount of 1% of the Facility and that funds borrowed
under the Facility bear interest at the rate of 14% per annum, calculated from
the date of the draw-down of funds under the Facility and compounded monthly.
    Under the Loan Agreement, the Facility is scheduled to remain in place
for a term of six months, but the Facility may be extended for an additional
six months at the election of TVIRD. Extension of the Facility is subject to
the payment of an extension fee of 1%, based upon the amount then outstanding
under the Facility and to the satisfaction of a number of conditions,
including the conclusion of an offtake agreement for a part of Canatuan
production. The Loan Agreement confirms that principal and accrued interest
under the Facility may be pre-paid at any time, in amounts not less than
U.S.$2 million, subject to certain prepayment penalties.
    As contemplated by the Loan Agreement, the Company, has guaranteed the
obligations of TVIRD under the Loan Agreement and TVI Limited, a wholly-owned
subsidiary of the Company has granted a security interest to the Lenders that
covers the outstanding shares of TVI International Marketing Limited, through
which the Company holds its interest in TVIRD. In addition, TVIRD has granted
to the Lenders a security interest covering substantially all of its assets.
The Loan Agreement provides that subparticipation rights in the security
package granted to the Lenders will be made available to any provider of the
second tranche funding anticipated by the Loan Agreement and that certain
intercompany indebtedness of TVI group companies and shareholder loans will be
subordinated to the Facility.
    There can be no assurance that the Company and TVIRD will be able to
successfully identify a lender or lenders for purposes of second tranche of
funding provided for under the structure of the Loan Agreement. As well, there
can be no assurance that the Company and TVIRD will be able to successfully
negotiate an offtake agreement or longer-term financing for its Philippine
operations.

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

    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 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
ability of the Company and TVIRD to perfect the security interest contemplated
by the Loan Agreement within ordinary timeframes the occurrence of events that
could have a material adverse effect on the business, operations, property or
financial condition of the Company and its affiliates, including 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, new laws (domestic or foreign) and changes in
administrative practices. 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 the anticipated
timing of completion of perfection of the security interests contemplated by
the Loan Agreement is based upon information received from LIM and legal
counsel to TVIRD and the Company. 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 management's discussion and analysis for the year ended December 31,
2006 and the Company's amended Annual Information Form for the year ended
December 31, 2006, which were filed on SEDAR on December 18, 2007 and are
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.

For further information: Clifford M. James, President and CEO, TVI
Pacific Inc.; Paul Moon, Director, Corporate Communications, (403) 265-4356