TVI Pacific Inc V.TVI

TVI financing cut in half

[HansonEtridge]

TVI Pacific Inc. Revises Terms of the April 12th, 2004 Financing: Now Raising $2.5 (CAD) Million 14:11 EDT Thursday, May 20, 2004 CALGARY, ALBERTA--(CCNMatthews - May 20, 2004) - TVI Pacific Inc. ("TVI" or the "Company") announced today that it has revised and priced the previously announced financing arrangement with Haywood Securities Inc. ("Haywood") dated April 12th, 2004. As a result, TVI is issuing up to $2.5 million (CAD) of Units (up to a maximum of 16,666,666 Units). The Offering Price will be $0.15 per Unit, each consisting of one common share of the Company and one-half common share purchase warrant. One whole warrant entitles the holder to purchase one common share of the Company for a period of 12 months from the Closing Date of the Offering at an exercise price of $0.175. For an additional 12 months, the warrants not previously exercised shall be exercisable at a price of $0.21 per warrant. If at any time after 4 months from the Closing Date the common shares of the Company trade for 20 consecutive trading days at not less than a 75% premium to the Offering Price, then TVI will have the option to give notice to the holders of the warrants and agent's warrants that they will expire in 20 trading days. The Offering is being marketed on a best-efforts private placement basis to accredited investors. As such, the securities issued with respect to the Offering will be subject to a 4 month hold period. TVI has granted Haywood an Over Allotment Option to acquire up to an additional 15% of the number of Units under the same terms of the Offering. Upon completion of the Offering, the Company will pay Haywood a cash commission of 7% and agent's warrants representing 10% of the gross proceeds raised in the offering (including those units sold in the over allotment). The same terms apply to the agent's warrants as the warrants issued to subscribers in connection with the Offering discussed above. The Closing Date of the Offering is anticipated to be on or about June 11, 2004. The net proceeds raised from the Offering will be used for the Company's exploration and development programs, property acquisitions, and for general working capital purposes. Completion of the Offering will be subject to a number of customary conditions, including due diligence, execution and delivery of a formal agency agreement and receipt of all necessary TSX and regulatory approvals. The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties. Actual results could differ from those currently projected. FOR FURTHER INFORMATION PLEASE CONTACT: TVI Pacific Inc. Mr. Clifford James President & CEO [phone] [phone] (FAX) Email: [e-mail] Website: www.tvipacific.com The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.