SOURCE: Terra Nostra Resources Corp

March 22, 2007 11:35 ET

Terra Nostra Resources -- Scrap Copper to Play Major Role in Copper Production

Company Also Sees Copper Demand Continuing to Be Strong

LOS ANGELES, CA -- (MARKET WIRE) -- March 22, 2007 -- Terra Nostra Resources Corporation (OTCBB: TNRO), owner of a 51 percent interest in two Chinese joint venture companies in the strategic copper and stainless steel industries, said today that it predicts no shortage of supply of recycled materials for its production needs. The Company also indicated that the demand by Asian industry for copper remains fundamentally very strong and subsequently management expects the price of copper to remain around current levels. "This would have a positive effect on our outlook for 2007," said Sun Lui James Po, CEO of Terra Nostra.

"The demand from China, as well as India, for key metals such as copper, steel, and aluminum has not lessened -- in fact it has grown," Mr. Po reported, noting that production of copper and stainless steel often uses recycled materials to enable more cost-effective production of the materials. "Not only is it more cost effective, but it also reduces energy consumption and is typically more environmentally friendly," said Mr. Po. As a result, the scrap processing industry in the US alone was recently estimated to be $250 billion annually, according to a report published by the Canadian brokerage firm of Canaccord Adams. "As the automotive industry in China continues to develop, we believe the scrap industry in China has the potential to rival -- and possibly even surpass -- that of the United States. This would be of great value to us in that it would provide additional ready supply of scrap materials for our production," Mr. Po said.

Terra Nostra presently has existing and under construction production capacity of 170,000 MT of electrolytic copper, using an optimized ratio of scrap copper and copper concentrate for raw materials, as well as value-added production of copper wire and oxygen-free copper rods. "With the continued rise in the value of copper, as well as strong availability of scrap materials, we believe we are positioned very favorably for the coming year," he said.

About Terra Nostra Resources Corporation

Terra Nostra is one of the leading copper producers in China through its 51% interest in Shandong Terra Nostra Jinpeng Metallurgical Co. Ltd., which has an existing and under construction production capacity of 170,000 MT of electrolytic copper, 20,000 MT of low-oxygen copper, and value-added copper rod and wire facilities. Terra Nostra is also emerging as a leading stainless steel producer in China through its 51% interest in Shandong Quanxin Stainless Steel Co. Ltd., a modern stainless steel production facility that commenced operations in early 2006 with a now expanded 230,000 MT casting mill, and a recently commissioned 150,000 MT rolling mill. The two joint venture companies, with total assets exceeding US$ 200 million and having over 800 employees, are located in the highly industrialized coastal province of Shandong, midway between Beijing and Shanghai. More information on Terra Nostra can be found at

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including statements with respect to expectations concerning (i) projects underway or under consideration, including production capacity and completion schedules; (ii) business and future potential of Terra Nostra Resources Corporation ("TNR"); (iii) estimates or implications of future earnings, profits, EBIDTA, and the sensitivity of earnings to metals prices; (iv) estimates of future metals production, sales and profitability; (v) estimates of future cash flows, and the sensitivity of cash flows to the other metals and ore costs as well as, but not limited to, fluctuations in fuel prices, scrap prices, and the availability of both, are all forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Further risks, uncertainties and other factors, which affect the forward-looking statements included herein, and could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements include, but are not limited to, completion of TNR's capital contributions to the joint venture companies, working capital financing, metals price volatility, competition for projects, reserve acquisition costs, currency fluctuations, international economic uncertainty, sovereign risk, force majeure, changes in tax law or concession law, project scheduling delays, labor disputes, increased production costs and variances in ore grade, scrap grade or recovery rates from those assumed in production plans, political and operational risks in the countries in which TNR may operate and governmental regulation and judicial outcomes, and other risks detailed from time to time in TNR's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended November 2006. Copies of each filing may be obtained from TNR or the SEC. Furthermore, metals operation, by their very nature, entail cyclical, sectoral, and commodity risk and could expose an investor to the entire loss of all capital invested. TNR does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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