TVI Pacific Reports Pilot Plant Metallurgical Test Work Results For Its Balabag Gold-Silver Project, Philippines

Initial Results Confirm Balabag Deposit Highly Amenable To Leaching

• Gold and silver recoveries average 93% and 90%, respectively
• Demonstrated effectiveness of carbon in leach circuit ("CIL")
• Amenability of CIL over other processing could translate into lower capex
• Pilot Plant testing continues to focus on optimizing process efficiencies

CALGARY, June 26, 2013 /CNW/ - TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) ("TVI" or the "Company") announced today that its Philippine operating affiliate, TVIRD has established a pilot plant at its nearby Canatuan mine site to carry out metallurgical test work on samples of the different  types of mineralization at Balabag, the initial results of which are reported herein. The establishment of a pilot plant marks another key step forward for the Balabag project, located approximately 75 kilometres east-northeast of TVI's Canatuan copper-zinc mine on the island of Mindanao, Philippines.

The principal objectives of the pilot plant test work are to confirm the results obtained in previous laboratory cyanide leaching tests, optimize the metallurgical processing under an environment that more closely resembles actual operations, provide design parameters for engineering, and to start training personnel in operations and metallurgical process control.

Initial results from the first 30 tonnes of sample material grading 4.8 g/t Au and 212 g/t Ag indicated average overall recoveries of 93% for gold and 90% for silver after 36 hours leach time (Figure 1). The sample material analysed represents different types of vein mineralization distributed throughout the deposit. The results to date validate Balabag test material's amenability to leaching as determined from prior laboratory scale tests.  Results also demonstrate the effectiveness of carbon-in-leach ("CIL") over both carbon-in-pulp ("CIP") and Merrill-Crowe recovery processes in processing the test material.

The one metric ton per day pilot plant initially had been operated for 21 days simulating CIP plant operations. After some reconfiguration in the circuit, it was operated for three days simulating actual CIL plant conditions.  The amenability of CIL over CIP processing could translate into a lower capex due to shorter leach times and elimination of the unit operations associated with the Merrill-Crowe section of the planned plant. Pilot test work will continue to produce sufficient loaded carbon for design purposes while evaluating variabilities of potential ore grades and further optimizing the process efficiencies.

"These initial metallurgical test work results are very encouraging," said Cliff James, Chairman and President of TVI Pacific Inc.  "Confirmation of metal recoveries in this larger-scale pilot plant will help establish the recoveries of gold and silver that can be achieved in a commercial process."

The results from this test work will be incorporated into the detailed planning for the construction of the plant, which is expected to commence as soon as an Environmental Clearance Certificate (ECC) is granted by the Environmental Management Bureau and approval is received of the Declaration of Mining Project Feasibility, by the Philippine Mines and Geosciences Bureau of the Department of the Environment and Natural Resources.

About the Balabag Project

The Balabag epithermal gold and silver project is located within an area covering approximately 52 square kilometres (20 square miles) and is situated approximately 75 kilometres (47 miles) east-northeast of TVI's Canatuan mine.

The Balabag NI 43-101 technical report dated June 23, 2012, and entitled "NI 43-101 Technical Report on the Balabag Gold Project, Zamboanga Province, Philippines" is available on SEDAR at www.sedar.com and on TVI's website at www.tvipacific.com.  The technical report, which incorporates results of drilling completed to the end of June 2011, provides estimates of an indicated mineral resource of 1.78 million tonnes averaging 2.34 grams per tonne of gold and 72.3 grams per tonne of silver containing 134,262 ounces of gold and 4,148,196 ounces of silver.  The Company continues to conduct exploration work with the goal of expanding the resource.

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.

About TVI Pacific Inc.

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/operator 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.

Forward-Looking Statements: 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. 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, TVI's plans to implement the development of its Balabag gold-silver project; and certain other risks identified elsewhere in TVI's public filings, including, without limitation, those risk factors set forth in TVI's Annual Information Form dated March 19, 2013.  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.

SOURCE TVI Pacific Inc.

Image with caption: "Pilot Plant at Canatuan mine site, Philippines (CNW Group/TVI Pacific Inc.)". Image available at: http://photos.newswire.ca/images/download/20130626_C3371_PHOTO_EN_28519.jpg

Image with caption: "Figure 1 - Balabag Leach Kinetics: CIL vs CIP (CNW Group/TVI Pacific Inc.)". Image available at: http://photos.newswire.ca/images/download/20130626_C3371_PHOTO_EN_28520.jpg