Terrane Metals Corp.
TSX VENTURE : TRX

Terrane Metals Corp.

January 18, 2007 13:32 ET

Terrane Metals Corp.: New Gold-Copper Mineralization Intersected at Mt. Milligan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Robert Pease, President and CEO of Terrane Metals Corp. ("Terrane" or the "Company") (TSX VENTURE:TRX) is pleased to announce results from the recently completed Phase I - 8,200m large diameter core drilling program at the Mt. Milligan gold-copper project, British Columbia. This 32-hole program was designed to provide representative bench and pilot plant test work samples over a range of gold and copper grades to optimize flowsheet and process design criteria. Assay results have now been received for 16 Phase I holes. Several of the new holes intersected significant thicknesses of laterally continuous gold-copper mineralization that are outside the historic resource limits.



PHASE I HIGHLIGHTS
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NEW GOLD-COPPER MINERALIZATION
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HOLE ZONE THICKNESS (m) Cu (%) Au (g/t)
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06-939 DWBX 72.0 0.38 0.73

06-940 WBX 68.0 0.38 0.45
56.0 0.04 0.98

06-944 DWBX 10.0 0.42 0.47


HISTORIC RESOURCE MODEL
-----------------------

HOLE ZONE THICKNESS (m) Cu (%) Au (g/t)
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06-941 SS 80.0 0.35 0.61

06-942 MBX 141.2 0.42 0.50

06-945 SS 104.5 0.36 0.51

06-947 MBX 104.2 0.36 0.64


All holes were drilled to the east at inclinations of -60 degrees to -75 degrees. A drill hole plan and representative cross sections can be viewed at the Company's website (www.terranemetals.com).

A further 8200m of core drilling in 22 holes will be completed in a Phase II program to convert Inferred resources into the Measured and Indicated categories. This program is expected to be completed by April 2007.

NEW GOLD - COPPER MINERALIZATION

Holes 06-939 (413.6m), 06-940 (380.1m) and 06-944 (404.2m) were collared on the west side of the main deposit and targeted a down-dropped block of the deposit known as the Deep Western Breccia zone (DWBX).

Hole 06-939 returned 51.9m from bedrock at 0.33% Cu and 0.27 g Au/t - consistent with surrounding drill holes in the shallow WBX zone. The new and deeper DWBX mineralization was intersected at 324m and returned 72m at 0.38% Cu and 0.73 g Au/t. Elevated gold grades in this intercept are significantly higher than those seen elsewhere in the DWBX zone.

Hole 06-940 also returned a near-surface interval at 0.26% Cu and 0.25 g Au/t that was within the historic resource estimate. A second intersection starting at 113m returned 68m of new gold-copper mineralization at 0.38% Cu and 0.45 g Au/t. A new gold-only zone was then intersected further down hole at 271m grading 0.04% Cu and 0.98 g Au/t over 56m.

And finally, hole 06-944 intersected new DWBX mineralization at 238m and returned a 110m intercept at 0.42% Cu and 0.47 g Au/t.

The DWBX zone had been tested with wide-spaced drill holes by previous operators. Historic results and those from the 2006 Phase I program have now defined a continuously mineralized block some 300m long, 150m to 200m wide and 75m to 150m thick. It remains open to extension. This mineralized block is outside the historic resource estimate and will be incorporated into a new open pit design.

INTERCEPTS WITHIN HISTORIC RESOURCE LIMITS

Drill holes within the historic resource limits for the MBX and SS zones returned values consistent with those in surrounding drill holes. Table I summarizes results for drill holes 06-937 to 06-949.

To date, a total of 204,020 m of diamond drilling from 955 holes has defined a large, open pit-style gold-copper resource at Mt. Milligan. Both Phase I and Phase II drilling programs are in support of a Feasibility Study which will be completed in Q4 2007. A key component of the Feasibility Study will be the completion of a revised and independent National Instrument 43-101-compliant resource estimate which will consider a number of grade-tonnage development scenarios.

The Mt. Milligan drilling program and associated sampling and quality control protocols are directed and supervised by Darren O'Brien, P. Geo., Vice President - Exploration, Terrane Metals Corp. and a Qualified Person as defined under National Instrument 43-101. ALS Chemex, an ISO 9001:2000 accredited laboratory in North Vancouver, BC performs sample preparation and assaying for the Mt. Milligan project. Copper assays utilize aqua regia sample decomposition with analysis by Atomic Absorption spectrometry. Gold assays utilize a fire assay fusion sample decomposition of a 30 gram charge with analysis by Atomic Absorption spectrometry. In addition to an internal laboratory quality control program, Terrane Metals Corp. maintains a quality assurance and quality control program through the systematic use of standards, blanks and duplicates.



TABLE I DRILL HOLE ASSAY SUMMARY

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Drill Thickness
Hole From (m) To (m) (m) Cu (%) Au (g/t) Zone
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06-937 59.0 131.0 72.0 0.25 0.40 WBX
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06-938 11.0 103.0 92.0 0.36 0.23 WBX
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317.7 361.0 43.3 0.31 0.20 MBX
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06-939 28.1 80.0 51.9 0.33 0.27 WBX
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324.0 396.0 72.0 0.38 0.73 DWBX
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06-940 29.0 89.0 60.0 0.26 0.25 WBX
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113.0 181.0 68.0 0.38 0.45 WBX
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271.0 327.0 56.0 0.04 0.98 WBX
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06-941 38.0 118.0 80.0 0.35 0.61 SS
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06-942 43.8 185.0 141.2 0.42 0.50 MBX
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06-943 66.0 100.0 34.0 0.17 0.53 SS
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134.0 286.0 152.0 0.23 0.51 SS
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06-944 238.0 348.0 110.0 0.42 0.47 DWBX
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06-945 19.5 124.0 104.5 0.36 0.51 SS
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06-946 24.0 92.0 68.0 0.22 0.27 SS
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108.0 239.9 131.9 0.17 0.13 SS
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06-947 21.8 126.0 104.2 0.36 0.64 MBX
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06-948 88.0 134.0 46.0 0.21 0.15 SS
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06-949 3.6 95.0 91.4 0.42 0.73 MBX
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ABOUT TERRANE METALS CORP.

Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan gold-copper and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (NYSE:GG)(TSX:G) owns a 70% equity interest in Terrane on a fully diluted basis.

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 constitutes "forward-looking statements". Such forward-looking statements including but not limited to those with respect to the proposed use of proceeds anticipated to be raised by the financing involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Terrane to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. 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.


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