Terra Firma Capital Corporation Reports Results for the First Quarter Ended March 31, 2013

All amounts are stated in Canadian dollars.

Terra Firma Capital Corporation (TSX VENTURE:TII) ("Terra Firma" or the
"Company"), a real estate finance company, today released its financial results
for the three months ended March 31, 2013.


FIRST QUARTER 2013 HIGHLIGHTS:



--  Total revenue is $1.7 million, an increase of $677,000 or 67%, compared
    to the same period last year. 
--  Total assets increased by 62% to $57.1 million from $35.2 million at
    March 31, 2012.



"We are pleased with the growth in our top line revenue and the new loan
origination opportunities. Our top priority in 2013 is to secure a structure to
create new growth opportunities that will enable us to build the size and value
to the Company," commented Dov Meyer, President and Chief Executive Officer.


Results of operations - three months ended March 31, 2013

Net income in the first quarter ended March 31, 2013 was $265,000 or $0.01 per
basic and diluted share, compared to $253,000, or $0.01 per basic and diluted
share, in the first quarter ended March 31, 2012. Net income in the first
quarter ended March 31, 2013 was impacted by internalization of the management.
General and administrative expenses increased by $209,000 as compared to March
31, 2012.


Interest and fee income for the first quarter ended March 31, 2013 aggregated
$1.6 million, an increase of 64% over the $966,000 million in the same period in
the previous year, and slightly down from the $1.9 million in the fourth quarter
ended December 31, 2012. Interest and fees in the fourth quarter ended December
31, 2012 included onetime fee of $375,000 in one of the joint operations of the
Company.


Interest expense for the first quarter ended March 31, 2013 was $937,000,
compared to $496,000 for the comparative period last year and $888,000 for the
fourth quarter ended December 31, 2012 due to increased syndications to fund the
investment activities.


The company's loan and mortgage investments increased from $32.0 million at
December 31, 2012 to $42.8 million at March 31, 2013, an increase of 34%. The
total value of loan and mortgage investments originated in the first quarter
ended March 31, 2013 was $14.8 million compared to $8.6 million originated in
the first quarter ended March 31, 2012.The average interest rate in the mortgage
portfolio at March 31, 2013 was 18.1% compared to 19.9% at December 31, 2012.


The Company's Management's Discussion & Analysis and Financial Statements as at
and for the three months ended March 31, 2013 have been filed and are available
on SEDAR (www.sedar.com).


About Terra Firma

Terra Firma is a full service, publicly traded real estate finance company that
provides customized equity and debt solutions to the real estate industry. Our
focus is to arrange and provide financing with flexible terms to property owners
looking to improve or add to their existing real estate assets but who may be
limited by conventional bank financing, as well as to invest in quality
commercial and residential developments by proven real estate developers. Terra
Firma offers a full spectrum of real estate financing under the guidance of
strict corporate governance, clarity and transparency. For further information
please visit Terra Firma's website at www.terrafirmacapital.ca.


This Press Release contains forward-looking statements with respect matters
concerning the business, operations, strategy and financial performance of Terra
Firma. These statements generally can be identified by use of forward looking
word such as "may", "will", "expects", "estimates", "anticipates", "intends",
"believe" or "could" or the negative thereof or similar variations. The future
business, operations and performance of Terra Firma could differ materially from
those expressed or implied by such statements. Such forward-looking statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Forward-looking statements are based on a
number of assumptions which may prove to be incorrect. Additional, important
factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, local real
estate conditions, competition, changes in government regulation, dependence on
tenants' financial conditions, interest rates, the availability of equity and
debt financing, environmental and tax related matters, and reliance on key
personnel. There can be no assurances that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The cautionary statements qualify
all forward-looking statements attributable to Terra Firma and persons acting on
its behalf. Unless otherwise stated, all forward looking statements speak only
as of the date of this Press Release and Terra Firma has no obligation to update
such statements except as required by law.




Terra Firma Capital Corporation                                            
Consolidated Statements of Income and Comprehensive Income                 
For the three months ended March 31, 2013 and 2012                         
(Unaudited)                                                                
                                                                           
---------------------------------------------------------------------------
                                                         Three months ended
                                                ---------------------------
                                                    March 31,      March 31,
                                                        2013           2012
---------------------------------------------------------------------------
Revenue                                                                    
  Interest and fees earned                      $  1,586,215   $    966,287
  Rental income                                      107,096         49,632
---------------------------------------------------------------------------
                                                   1,693,311      1,015,919
Expenses                                                                   
  Property operating costs                            47,615         17,538
  General and administrative expenses                367,163        127,764
  Share based compensation                                 -         30,357
  Interest expense                                   937,412        495,691
---------------------------------------------------------------------------
                                                   1,352,190        671,350
Income before income taxes                           341,121        344,569
Income tax provision                                  75,776         91,352
---------------------------------------------------------------------------
Net income and comprehensive income             $    265,345   $    253,217
---------------------------------------------------------------------------
                                                                           
Earnings per share - basic and diluted          $       0.01   $       0.01
---------------------------------------------------------------------------


Terra Firma Capital Corporation                                            
Consolidated Statements of Financial Position                              
As at March 31, 2013 and December 31, 2012                                 
(Unaudited)                                                                
                                                                           
---------------------------------------------------------------------------
                                                    March 31,   December 31,
                                                        2013           2012
---------------------------------------------------------------------------
Assets                                                                     
Cash and cash equivalents                       $  3,698,565   $  3,223,291
Amounts receivable and prepaid expenses            1,677,012      2,396,180
Loan and mortgage investments                     42,799,082     31,996,731
Investment properties                              7,939,416      7,834,576
Portfolio investment                                 950,000        950,000
---------------------------------------------------------------------------
Total assets                                    $ 57,064,075   $ 46,400,778
---------------------------------------------------------------------------
Liabilities                                                                
Accounts payable and accrued liabilities        $  1,986,855   $  1,192,616
Provision for discontinued operations                415,101        445,957
Unearned income                                      226,512         16,965
Income taxes payable                                 101,356        474,297
Deferred income taxes                                 23,956         15,602
Loans and mortgages payable                       31,188,063     21,406,070
Convertible debentures                            10,100,941     10,093,325
---------------------------------------------------------------------------
Total liabilities                                 44,042,784     33,644,832
---------------------------------------------------------------------------
Shareholders' Equity                                                       
Share capital                                   $ 10,757,405   $ 10,757,405
Contributed surplus                                  573,139        573,139
Retained earnings                                  1,690,747      1,425,402
---------------------------------------------------------------------------
Total shareholders' equity                        13,021,291     12,755,946
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Total liabilities and Shareholders' Equity      $ 57,064,075   $ 46,400,778
---------------------------------------------------------------------------



FOR FURTHER INFORMATION PLEASE CONTACT: 
Terra Firma Capital Corporation
Dov Meyer
President and Chief Executive Officer
416.866.8986
[e-mail]


Terra Firma Capital Corporation
Mano Thiyagarajah
Chief Financial Officer
416.866.3168
[e-mail]
www.terrafirmacapital.ca