Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

October 27, 2008 09:30 ET

Terrane Awards Engineering and Procurement Contract at Mt. Milligan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2008) - Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX) is pleased to announce that Wardrop Engineering Inc. ("Wardrop") has been awarded the detailed engineering design and procurement contract ("EP Contract") for the Mt. Milligan Copper-Gold Project ("Project") in British Columbia, Canada. Wardrop recently completed a Feasibility Study Report ("Report") for the construction and operation of a conventional truck-shovel open pit mine and 60,000 tpd copper flotation process plant at Mt. Milligan. Construction startup, subject to financing and regulatory approvals, is scheduled for Q3 2009; commercial production would follow in Q1 2012.

Robert Pease, President and CEO of Terrane stated: "We are pleased to have awarded this milestone contract to Wardrop and to have them continue as a key part of the Mt. Milligan development team." Shayne Smith, CEO of Wardrop, stated: "In our Report we were able to design a development and operations plan for Mt. Milligan that successfully combined commercial viability and environmental stewardship. With the award of the EP Contract we are pleased to have the opportunity to carry out the next steps in that plan."

Terrane has awarded two additional contracts at Mt. Milligan. Following a competitive tendering process a Letter of Award has been signed with ABB Switzerland Ltd. to supply process plant drive motors for one SAG Mill and two Ball Mills. Siemens AG has been contracted to deliver three transformers for mine site substations.

Robert Pease, President and CEO of Terrane stated: "With the award of these contracts we have not only secured timely delivery of long lead-time equipment but have also locked-in some 15% of the estimated capital cost of the Project."

ABOUT TERRANE METALS CORP.

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (NYSE:GG)(TSX:G) owns a 58% equity interest in Terrane on a fully diluted basis. Terrane and Goldcorp recently entered into an agreement which grants Goldcorp an option to convert its equity interest in Terrane into a participating joint venture interest in the Mt. Milligan Project (see press release July 09, 2008).

TERRANE METALS CORP.

Robert Pease, P.Geo, FGAC, President and CEO

Cautionary Note Regarding Forward Looking Statements

Except for the statements of historical fact contained herein, the information presented in this News Release constitutes "forward-looking statements" as such term is used in applicable Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning Mineral Resource and Mineral Reserve estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements, including but not limited to, those with respect to the price of metals, the amount of estimated mineralization and of contained metals and the timing of and possible outcome of pending economic evaluations and other factors and events described in this News Release, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results of exploration activities; variations in the underlying assumptions associated with the estimation or realization of Mineral Resources and Mineral Reserves, the conclusions of economic evaluations and possible variations in ore grade or recovery rates; costs and timing of the development of new deposits; availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares; accidents, labour disputes and other risks of the mining industry including without limitation those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such 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 contained in this News Release and in any document referred to in this News Release.

Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.

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

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