SOURCE: Terra Energy & Resource Technologies, Inc.

March 14, 2011 06:21 ET

Terra Energy & Resource Technologies Receives Shares of Shamika 2 Gold and an Interest in Gold and Ruby Production

NEW YORK, NY--(Marketwire - March 14, 2011) - Terra Energy & Resource Technologies, Inc. (OTCBB: TEGR), a natural resource exploration technology and services company, will receive 570,000 shares of Shamika 2 Gold, Inc., a publicly held company whose shares are traded on OTCBB, and 0.45% of the preferred net return from production and sale of gold and rubies derived from the Cambodia mining project which Terra helped discover. In exchange for its satellite-based STeP® analysis exploration services rendered for the project in 2010, Terra received not only fees but also a royalty and a project co-investment right from MIG International Mining Group, the project sponsor. Later MIG agreed for Terra to convert its 5% project co-investment right into a 1% interest in MIG, with no cash payment by Terra. In March 2011, Shamika acquired 85% of the equity in MIG, seeking to benefit from MIG's mining concession in Cambodia, which as noted previously, was a direct result of Terra's analysis of the license area. Shamika's acquisition is a welcome development for Terra, increasing the liquidity of Terra's interest in the project and validating the production potential of same.

"In July-August of 2010, Terra helped MIG create a substantial value in gold and ruby geological resources. Terra completed its STeP® analysis of the area of interest in January 2010. In only six months, MIG transformed a frontier exploration territory into a marketable mining property," said Dmitry Vilbaum, CEO of Terra Energy & Resource Technologies. "In its recent press release (http://finance.yahoo.com/news/Shamika2Gold-Inc-Acquires-pz-903296838.html?x=0&.v=1), Shamika's CEO calls the MIG acquisition an historic event for his company. All of us at Terra are excited that we played a key role in such a positive corporate development for both MIG and Shamika."

Dr. Alexandre Agaian, President of Terra Energy & Resource Technologies, stated: "It shows the strength of Terra's exploration methods that it can secure partial compensation in the form of royalties. Subject to MIG obtaining the appropriate mining licenses and achieving a two month production, Terra's shares of Shamika will be released from the escrow to Terra. We recently met with Shamika's CEO Mr. Robert Vivian, who informed us that his current priority is to establish mining and production from the license area. Terra welcomes Mr. Vivian's plans to ramp up production quickly and hopes to start receiving its share of the revenue stream in a short order. In summary, the total potential compensation package in connection with this license area for Terra is now a 1.5% overriding royalty, 570,000 shares of Shamika 2 Gold, Inc., and 0.45% of the preferred net return from production."

About Terra Energy & Resource Technologies, Inc.

Terra Energy & Resource Technologies, Inc., through its subsidiary Terra Insight Services, Inc., provides mapping and analysis services for exploration, drilling, and mining companies related to natural resources found beneath the surface of the Earth. The Company uses a suite of innovative and efficient technologies, which facilitate the prediction and location of commercially viable deposits of hydrocarbons, gold, diamonds, and other natural resources, and assesses them for any given geographic area -- on or offshore. For more information, visit http://www.terrainsight.com.

Safe Harbor for Forward-looking Statements

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause the Company's expectations and beliefs about its operations, services, plans, projects, and contracts, and its plans or proposals to acquire interests in, or participate in, exploration activities or properties, to fail to materialize, including, but not limited to, availability of capital, satisfaction of contractual conditions and requirements, unfavorable geologic conditions, the amount of reserves projected or ultimately discovered, and general regional economic conditions.

Contact Information

  • For more information, please contact:

    Terra Energy & Resource Technologies, Inc.
    212-286-9197
    info@terrainsight.com