Terraco Gold Corp.

Terraco Gold Corp.

October 25, 2007 10:33 ET

Terraco Resumes Drilling at Moonlight

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2007) - Terraco Gold Corp. ("Terraco") (TSX VENTURE:TEN) wishes to report the resumption of reverse circulation drilling at its 100% owned Moonlight Property ("Moonlight") in Pershing County, Nevada.

Eklund Drilling Company, Inc. ("Eklund") of Elko, Nevada was contracted to carry out the remaining Moonlight Phase I drill program of approximately 14,000 feet. Eklund crews have considerable experience in local drilling conditions, having drilled at Midway Gold Corp.'s Spring Valley Project adjoining Moonlight to the South. The initial five holes were drilled by O'Keefe Drilling of Butte, Montana beginning in mid-September 2007 (see News Release 2007 - 08 dated September 12, 2007). Samples from the first five holes drilled have been submitted for assay to American Assay Laboratories, located in Sparks, Nevada with results pending.

The 20,000-foot Phase I drill program is based upon a systematic grass-roots program of mapping, sampling and airborne and ground geophysical surveys. The drilling is testing several targets that appear to display either geological or geophysical characteristics similar to areas of gold mineralization in Spring Valley. The targets suggest that Moonlight could comprise the next mineralized locus along a string of deposits ranging from Relief Canyon at the south end, northward through Nevada Packard, Rochester, Spring Valley and Moonlight. This string of deposits along the Humboldt Trend contains some very exciting projects and prospects. Covering more than nine square miles, Terraco's Moonlight Project is one of the largest untested properties remaining among the projects being developed along this trend.

The Moonlight Property is located 21 miles northeast of Lovelock, Nevada in the Humboldt Range, 5 miles north of Coeur d'Alene Mining Company's Rochester Mine. Throughout its 17-year history, the Rochester Mine has produced over 107 million ounces of silver and well over 1 million ounces of gold, as reported on Coeur d'Alene's website. The Moonlight Property constitutes the northern boundary of Midway's Spring Valley Project, where Midway has reported drill intercepts that include highlights of 105 ft of 0.325 ounce per ton ("opt") gold, 215 ft of 0.137 opt gold and 123 ft of 0.169 opt gold.

This release has been reviewed and approved by Charles Sulfrian, P.Geo., Vice President, Exploration of Terraco and a 'qualified person', as defined by NI 43-101.

Terraco Gold Corp. 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.


Todd Hilditch, President and CEO

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

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