CALGARY, ALBERTA--(Marketwire - Nov. 1, 2011) - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) ("TVI" or the "Company") announced today that it has been advised by its Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), that TVIRD is preparing to file a series of legal actions in Philippine courts to prevent the implementation of an Ordinance scheduled to come into effect in the Province of Zamboanga del Norte on November 6, 2011.

The Ordinance, filed with no advance notice to TVIRD or TVI, purports to ban new open pit or open cut mines in the Province of Zamboanga del Norte and causes the closure process of existing such mines to begin one year from now, or November 2012. TVIRD intends to continue operating at Canatuan without disruption during this period. This Ordinance has no impact on TVIRD's gold development project at Balabag as it is in Zamboanga del Sur, a different province. Development plans continue at Balabag.

Quick Facts

• TVIRD has received a legal opinion from its external Philippine legal counsel stating the provincially imposed Ordinance is in direct contravention with national laws, including the Philippine Mining Act of 1995, and is therefore unconstitutional;
• In conjunction with its Philippine legal counsel, TVIRD is considering all legal remedies to protect and uphold its existing rights and contracts and will act on all legal options available, including the immediate filing of an injunction, to nullify the measure; and
• The Ordinance gives TVIRD one year from the effective date (November 6, 2011) to continue operations at Canatuan before initiating rehabilitation, assuming all legal efforts prove unsuccessful.

TVIRD understands that the Ordinance has been approved by the Sangguniang Panlalawigan (Provincial Board) of Zamboanga del Norte. It was published on October 22 and 29, 2011 and will be published for a third and final time on November 5, 2011, resulting in an effective date for the Ordinance of November 6, 2011.

It is the opinion of TVIRD's external Philippine legal counsel that the powers assumed by the province, and by the Provincial Governor of Zamboanga del Norte under the Ordinance, are in direct contravention of Philippine laws passed by the National Congress, including the Philippine Mining Act of 1995 and the Local Government Code of 1991, and are therefore unconstitutional. The Ordinance also introduces sweeping new provincial regulatory powers over mining operations, as well as over the process of making applications for new mining tenements, which TVI believes would be viewed as unacceptable by the national government.

There can be no assurance that any litigation commenced by TVIRD in the Philippines courts or negotiations with Zamboanga del Norte officials will result in nullification or retraction of the Ordinance or otherwise mitigate the effects of the Ordinance on the operations of TVIRD at Canatuan.

Click here to read the Ordinance

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

TVI Pacific Inc. is a publicly-traded resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is developing its Balabag gold-silver property and is carrying out other exploration programs. TVI also has oil interests in various stages of discovery, drilling and exploration off-shore Philippines.

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