Terraco Gold Consolidates Its Spring Valley Asset Portfolio Into Wholly-Owned Subsidiary

Terraco Gold Corp. ("Terraco" or the "Company") (TSX VENTURE:TEN) -

Highlights: 



--  In light of recent joint venture activity at Barrick's Spring Valley
    project in Nevada, Terraco has opted to consolidate its Spring Valley
    asset portfolio into a single subsidiary focussed on this district 
    
--  Barrick recently completed the earn-in of a 70% interest in the Spring
    Valley joint venture from Midway Gold Corp. 
    
--  Terraco owns various royalty and royalty options at Spring Valley, as
    well as strategic land positions to the north and to the east of the
    project 



Terraco Gold Corp. wishes to announce that it has initiated the restructuring of
its subsidiaries in order to consolidate its Humboldt Range, Nevada asset
holdings. The streamlining of Terraco's U.S. based subsidiaries allows the
Company to separate and hold its Spring Valley royalty assets, along with its
northerly adjoining 35 km2 Moonlight exploration project land holdings
(collectively, the "Spring Valley Assets"), within a single wholly-owned U.S.
subsidiary. Its non-Humboldt Range assets will be held in a separate U.S.
subsidiary.


The southern Humboldt Range is home to several major mining companies and
projects, including the Rochester Mine, operated and owned by Coeur d'Alene
Mines. Rochester has produced 134,000,000 ounces of silver and 1,470,000 ounces
of gold since 1986 and centres this district. Adjoining the Rochester mine to
the north is the Spring Valley gold project which is operated by Barrick Gold
Corp. ("Barrick") and is a joint venture with Midway Gold Corp. Terraco holds a
gold royalties and royalty options of up to 3% NSR on claims covering the vast
majority of the currently outlined Spring Valley gold deposit. Adjoining Spring
Valley to the north is Terraco's Moonlight project which encompasses 35 km2 of
early-stage exploration potential along strike with the Rochester Mine and
Spring Valley deposit.


"As this District continues to develop following completion of Barrick's $38m
earn-in on the Spring Valley project, we felt it was necessary to segregate our
respective gold assets. The consolidation of our Spring Valley Assets will
afford Terraco a clear and efficient structure in order to aid in the evaluation
of any corporate activity to come," said President and CEO Todd Hilditch.


Terraco's Royalty Assets and Regional Map 

For a description of Terraco's royalty assets, including a royalty map of Spring
Valley deposit, please follow the below link to our website. 


http://www.terracogold.com/s/SpringValleyRoyalty.asp

More information on the Spring Valley project can be accessed through SEDAR
(further to Midway Gold) or Midway's website. 


About Terraco Gold

Terraco is a junior mining company with a gold project portfolio that includes a
gold royalty and royalty options on the Spring Valley Project (Nevada), which is
a joint venture among the world's largest gold producer, Barrick Gold Corp. and
Midway Gold Corp. Terraco also controls over 35 sq km of early-stage exploration
potential (the Moonlight Project) adjoining the Spring Valley Project joint
venture to the north. In addition, Terraco has an advanced-stage gold project in
Idaho which hosts a National Instrument 43-101 compliant gold resource.


Terraco is listed on the TSX Venture Exchange under the symbol "TEN". Please
visit Terraco's website at www.terracogold.com for additional information.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


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 because 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 Canadian securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com).


FOR FURTHER INFORMATION PLEASE CONTACT: 
Terraco Gold Corp.
Todd Hilditch
President and CEO
[phone] or Toll free: 1 877 792-6688 Ext 2
[phone] (FAX)
www.terracogold.com