Terraco Gold Announces Merger Highlights

(TSX VENTURE:TEN) Terraco Gold Corp. ("Terraco" or the "Company") is pleased to
announce highlights of the recently completed merger between Terraco and Western
Standard Metals Ltd., as announced on January 24, 2010. The combined assets of
the Company have created a mix of advanced and early-stage gold-silver projects
in Idaho and Nevada, USA. 


Terraco's CEO Todd Hilditch stated: "Terraco is excited to have completed the
merger with Western Standard Metals Ltd. to create a company that offers
shareholders exposure to an exciting combination of gold exploration and
development assets in the western United States. An upcoming drill program will
target additional near-surface gold mineralization potential along with higher
grade feeder mineralization at the Company's Almaden Gold deposit in Idaho. In
addition, Terraco will continue to explore the potential at the Company's
Moonlight Project in Nevada which adjoins the expanding Barrick/Midway joint
venture project at Spring Valley. Terraco is currently planning its 2011
exploration program for both the Almaden Gold and Moonlight Projects. These
programs are expected to commence with mapping and geophysical work in February,
followed by an initial drill program anticipated to begin in early spring 2011."


Company Highlights

Almaden Gold Project

The 100% owned Almaden Gold Project is located 12 miles east of Weiser and 78
miles north of Boise, Idaho. The project hosts an NI 43-101 compliant Measured
and Indicated Resource of 864,000 ounces of gold and an Inferred Resource of
84,000 ounces of gold within 300 feet of surface. Terraco plans to initiate a
spring 2011 drill program to explore the extension of the near-surface
mineralization that is open to the north and south, as well as test for
high-grade, bonanza-style, structurally-controlled gold mineralization at depth.
The advanced-stage Almaden Gold Project boasts excellent access and
infrastructure, along with over 199,806 feet of historic drilling in 887 holes.


Moonlight Project

The 100% owned Moonlight Project is located 21 miles northeast of Lovelock in
Pershing County, Nevada. The property adjoins the Spring Valley joint venture
between Barrick and Midway, and is located approximately five miles north of the
Coeur d'Alene Rochester silver-gold mine. Drilling on the Moonlight Project has
returned 35 grams per tonne silver over 24 metres, including 211 grams per tonne
silver over 1.5 metres. Surface sampling has returned strong gold-silver grades
of up to 11.86 grams per tonne gold and 139 grams per tonne silver.


Terraco now has 112,459,151 issued and outstanding common shares, as well as
44,787,125 issued and outstanding warrants and options, for a total of
157,246,276 shares on a fully diluted basis. Further details regarding Terraco
or Western and the details of the Arrangement can be obtained from
www.sedar.com. Full details of the merger of Western and Terraco are disclosed
in Terraco's news releases available on SEDAR. A presentation of the combined
companies can be accessed at Terraco's website at www.terracogold.com.


The technical information in this release has been reviewed and approved by
Charles Sulfrian, CPG, Vice President, Exploration of Terraco and a 'qualified
person' as defined by NI 43-101, Standards for Disclosure of Mineral Projects,
unless otherwise noted.


Forward-Looking Statements

This news release contains forward-looking statements. Although Terraco believes
that the expectations reflected in these forward-looking statements are
reasonable, undue reliance should not be placed on them as Terraco can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Additional information on these and other factors that
could affect Terraco's operations and financial results are included in reports
on file with the Canadian securities regulatory authorities and may be accessed
through SEDAR (www.sedar.com).