TVI Pacific Inc. - Kingking Initial Feasibility Study Results.

TORONTO--(BUSINESS WIRE)--April 30, 1997--(TSE, Alberta Stock Exchange TVI.)

-Initial feasibility study projects production of 4.5 million ounces of gold and 2.3 billion pounds of copper over 16 year mine life

-Preliminary estimates of operating costs are $0.69/lb copper and $257/ounce gold

-Preliminary estimates of initial capital costs are $607 million (using Submarine Tailings Disposal) and $642 million (using Land Based Tailings Disposal)

-Further optimization work is expected to enhance the overall project economics

The initial feasibility study on the Kingking copper-gold porphyry project, on the island of Mindanao, Philippines has been completed by Kingking Mines Inc. (KMI), a joint venture between Echo Bay Mines Ltd. (75%), the operator, and TVI Pacific Inc. (25%). This initial study incorporates capital and operating costs estimated to +/- 20%. The resources upon which this study is based are given below:

Summary of Resources Above Variable Cut-off Grade -0-

                            OXIDE       SULPHIDE     TOTAL

TONNES                   87,578,000   310,469,000   398,047,000
WASTE TONNES            195,204,000   251,680,000   448,884,000

STRIP RATIO
  (waste to ore)                                    1.12:1
GRADE
COPPER                  0.477 %        0.303 %      0.342 %
GOLD                    0.738 g/t      0.453 g/t    0.516 g/t

These resources at Kingking contain 2.99 billion pounds of copper and 6.6 million ounces of gold, which is a significant increase from the 1993 resource estimate by Benguet Corp. (NYSE: BE) of 2.11 billion pounds of copper and 3.8 million ounces of gold.A mine based on these resources would produce 4.5 million ounces of gold and 2.3 billion pounds of copper. Operating costs for this mine have been estimated at $0.72/tonne of material for mining, $2.80/tonne to mill sulfide ore and $3.99/tonne to mill oxide ore. These results translate into operating costs of $0.69/lb of copper and $257/ounce of gold, including transportation and treatment and refining costs. Project Economics

Two cases have been investigated in the initial feasibility study, one incorporating Land Based Tailings Disposal (LBTD) and the second case using Submarine Tailings Disposal (STD). The LBTD case initial capital cost is estimated at $642 million and establishes project break even costs (un-discounted) of $0.87 per pound of copper and $340 per ounce of gold on a co-product basis (costs shared proportional to revenue). The estimated initial capital cost for the STD case is $607 million and establishes project break-even costs of $0.84 per pound of copper and $324 per ounce of gold. Submarine tailings disposal is considered the more attractive technical approach.

Project Location and Property Claim Structure

The Kingking project is located on the island of Mindanao, Philippines, approximately 20 kilometres by road northeast of the town of Pantukan in the province of Davao del Norte. The climate is tropical; normal precipitation is 2100 millimeters per year with temperatures ranging from 18 to 35 degrees Celsius.

A Mineral Production Sharing Agreement grants to Benguet Corp. (Benguet) and National Development Corporation (Nadecor) the exclusive right to explore, develop, and mine minerals within the area of the Kingking deposit. Kingking Mines, Inc. has negotiated agreements with Benguet and Nadecor to develop this deposit. Project Plan

The porphyry deposit contains both sulfide and oxide copper/gold ores. Mining of the deposit would be by conventional open pit methods, using electric shovels, diesel-powered drills and trucks. The life of the mine would be 16 years at a nominal milling rate of 70,000 tonnes/day and an average stripping ratio of 1.12:1, and an average of approximately 70,000 tonnes of copper in concentrate, and 296,000 ounces of gold, would be produced annually from this operation. In the first five years, production would average approximately 87,000 tonnes of copper in concentrate and 400,000 ounces of gold.

The two ore types require separate processes for optimum metal recovery. The proposed design employs standard comminution and flotation recovery for sulfide ore. The oxide ore would utilize conventional sulfide flotation of the gold, followed by a partial sulfuric acid leach, iron precipitation and low pH flotation for the copper precipitate (LPF). Project Optimization

The work completed to date is preliminary and further work is required to optimize the project and enhance the overall project economics. The areas where this potential can be realized are listed below:

The potential exists for expansion of the deposit on strike and for the area in general. There is the potential for an increase in the metallurgical recovery of copper. There is the potential to utilize the Solvent Extraction Electrowinning process thereby producing cathode copper which may improve project economics. Alternate infrastructure layouts may reduce capital costs. Alternate power supply options may reduce operating costs. The project would generate significant cash flows during strong metal prices. Addition of a molybdenum circuit and recovering molybdenum from some of the ore may be worthwhile.

The optimization of the project will be completed by the joint venture partner team over the next few months.

TVI believes that the optimization process will result in a project with attractive economics at reasonably expected metal prices. It is important to note that there is potential for defining new high grade gold and/or copper zones with further drilling. Additionally, the exploration potential of the remainder of the joint venture property outside of the Kingking deposit itself is largely untested.

CONTACT: TVI Pacific Inc.

Neil Westoll, 416/368-9830 or toll free

1-800-645-4489

or

TVI Pacific Inc.

Kristine Sonnenberg, 416/368-9830 or toll free

1-800-645-4489

Website: http://www.number3.com/tvi

E-mail: [e-mail]