Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

May 11, 2006 15:19 ET

Terraco Closes Private Placement of $500,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) is pleased to announce that it has closed a non-brokered private placement of 5,000,000 units ("Units") at a price of $0.10 per Unit, for total gross proceeds of $500,000. Each Unit is comprised of one common share of the Company ("Share") and one non-transferable share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one additional Share at a price of $0.15 per Share until May 10, 2007.

A finder's fee equal to 4% in cash ($5,840) and 8% in Units (168,400 Units) was paid to certain arm's length finders in connection with the Units placed through the efforts of such finders.

All securities issued or issuable under the private placement are subject to a four-month hold period expiring on September 11, 2006.

The proceeds of the private placement will be used for continued exploration activities on Terraco's mineral exploration properties and for working capital.

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

ON BEHALF OF THE BOARD

Todd Hilditch, President

The securities described herein and any securities which may be issued thereunder have not been and will not be registered under the U.S. Securities Act of 1933 as amended, and may not be offered or sold in the U.S. or to a U.S. Person in the absence of such registration statement or an exemption therefrom.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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