TVI Pacific announces agreement to sell drilling assets in Kyrgyzstan



    (TSX: TVI)

    CALGARY, July 29 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that its wholly owned subsidiary, Exploration Drilling
Corporation ("EDCO"), has agreed to dispose of its drilling operations and
associated equipment in the Kyrgyz Republic to an arms length third-party. The
sale price of the assets is US$1,200,000, of which US$600,000 was paid to EDCO
upon execution and delivery of the Deed of Conditional Sale (the "Sale
Agreement"). The Sale Agreement provides that the remaining US$600,000 is to
be paid to EDCO on or before December 1, 2008, but that, subject to interest
at an agreed amount, the payment period for the remaining balance may be
extended for another six months, to June 1, 2009, if agreed to in writing by
both parties. EDCO transferred possession of the Kyrgyz drilling equipment to
the third party purchaser in connection with the execution of the Sale
Agreement; however, the Sale Agreement provides that legal title to the
equipment will not be transferred until the balance of the purchase price is
paid to EDCO.
    The sale of the Kyrgyzstan drilling assets is consistent with TVI's
previously announced decision to divest of certain non-core assets. During the
fourth quarter of 2007, the Company reviewed its business strategy and decided
to focus on its Philippine operations, including the Canatuan sulphide
expansion project, the Balabag epithermal gold/silver exploration project and
other exploration properties. The Company plans to use the proceeds from the
sale of non-core assets for general working capital purposes.
    EDCO continues to hold and operate its drilling business in the
Philippines, which currently owns eight drilling rigs and associated
equipment.

    
    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 TVI Resource Development (Phils.)
Ltd.

    
    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.
    





For further information:

For further information: Investor Relations - (403) 265-4356 or
tvi-info@tvipacific.com


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