TVI Pacific"s Canatuan mine in the Philippines produced 8930 ounces of gold and 214,282 ounces of silver during for the first quarter of 2007 with net income increasing 67% compared to the same period in 2006.

The company"s solid first quarter results show total operating revenue of $10.5 million compared with $8.8 million in the same period last year.

TVI Pacific president and CEO Cliff James says: "Our solid financial performance for the first quarter of 2007 has provided a continuing platform for growth and expansion. First quarter earnings and cash flow financed a dramatically expanded exploration program, compared with the same period last year, as well as initial expenditures on the Sulphide Expansion Project, which is expected to be the cash flow engine for TVI for next year and for years to come."

TVI's Philippines affiliate, TVI Resource Development, completed a number of changes to the Canatuan plant during the quarter, which are expected to increase the overall financial performance of the plant for the balance of the year.

The positive effect of the changes was demonstrated in April, during which a daily average of 207 gold equivalent ounces was produced, significantly higher than the average daily production of 148 gold equivalent ounces for the first quarter. Increased daily throughput and metal production is expected to lower overall costs of metal produced, thereby increasing overall financial performance.

Exploration expenses were high for the quarter, primarily as a result of a decision to accelerate exploration at the Balabag property, about 75km north-east of Canatuan, in order to complete enough drilling for a scoping study that is expected to be completed during the second quarter. A second infill drilling program on Balabag will start late in 2007.

At Canatuan high sulphide content was encountered in the gossan ore during the quarter, causing both recovery and cost issues. These have been addressed and operating results for the early part of the second quarter are showing improvements.

The planning, development and construction of the company's sulphide plant is well under way with construction scheduled to be completed early next year. TVI has attracted a number of financing proposals for the sulphide project as a result of continuing strong metal prices and investor confidence in the company's operating capabilities.